About the Land Bank

The Cuyahoga County Land Bank was formed to help return vacant and abandoned properties in Cuyahoga County, Ohio, to productive use. Click for information about key principles or the Land Bank Board of Directors and staff.

From 2005 to 2009, the number of home foreclosures in Cuyahoga County increased dramatically. The result is tens of thousands of vacant or abandoned homes whose decay severely affects home values and the quality of life for everyone in the community. The Cuyahoga County Land Reutilization Corp., informally known as the Cuyahoga County Land Bank, is a strategic response to this crisis. It is intended to help reclaim properties, protect the county tax base and restore real estate markets. It will work cooperatively with cities, other units of government, lenders, and individual property owners, to acquire troubled real estate and return it to productive use.

A New Approach

The Ohio General Assembly passed new legislation, effective in April, 2009, allowing the formation of county land reutilization corporations (LRCs). County Treasurer Jim Rokakis, Senator Tom Patton, former Senator Bob Spada, real estate expert Senator Timothy Grendell, and Representative Matthew Dolan were among the leaders who drafted and sponsored this legislation. It provides for the establishment of nonprofit corporations to promote, develop, manage, and facilitate the reclamation, holding, rehabilitation, and reutilization of vacant, abandoned, tax-foreclosed, and other real property. Cuyahoga County's LRC (CCLRC) is the first to be established in the state.

Sources of CCLRC Property

The CCLRC can acquire foreclosed properties held by banks, by government-sponsored enterprises such as Fannie Mae and Freddie Mac, or by federal and state agencies. It will acquire real estate lost to tax foreclosure and may accept donated properties.

CCLRC Action on Property it Acquires

Properties with structures that have potential to be returned to the real estate market may be rehabilitated through CCLRC programs or may be sold to qualified private rehabbers. Structures being held for rehabilitation will be mothballed responsibly and appropriately maintained. Structures for which there is little hope of rehabilitation will be demolished and the resulting vacant land may be used in any number of ways. For example, unbuildable land may be sold to an adjoining neighbor at a special low price for use as a side lot. Parcels may be held for assembly and/or used for approved development projects. Land may be used to create public green space for urban agriculture, storm water management, or for other innovative and ecological purposes. In any event, the CCLRC aims to end the unbridled land speculation and flipping of foreclosed properties that has contributed to the current crisis.

City and County Cooperation

The CCLRC has many options for what to do with property it acquires, but each Cuyahoga County city is a major partner in the decision regarding what will be done with properties that lie within its own jurisdiction. For example, the City of Cleveland operates its own land bank and will take title to all vacant land produced by CCLRC demolitions within its city limits. The CCLRC spreads risk, promotes collaboration, and makes possible joint code enforcement and nuisance abatement operations. The CCLRC will serve as a flexible and powerful hub for the acquisition and reclamation of foreclosed properties throughout the county.

Funding

The CCLRC's primary source of funding is from penalties and interest on property taxes and assessments that are not paid when due. The County Treasurer will advance the portion of these delinquencies that is expected to be collected to the various taxing districts, getting them their money sooner, but will allocate penalty and interest to the CCLRC; this is the primary revenue stream for the CCLRC. It will be supplemented by revenue from CCLRC resale of acquired properties to qualified buyers, and grants from foundations and other government programs.

Copyright © 2009-2010 Cuyahoga County Land Reutilization Corp. All rights reserved.