Cuyahoga County Land Bank
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Cuyahoga County Land
Reutilization Corp.
Suite 160
323 W. Lakeside
Cleveland OH 44113
(216) 698-8853
(216) 698-8972 fax

Land Bank Reaches Agreement with Fannie Mae for Property Acquisition, Demolition Assistance

December 16, 2009

A new agreement with Fannie Mae, the government-sponsored secondary mortgage corporation, allows the CCLRC to acquire properties from its inventory of foreclosed homes. A story in The Plain Dealer describes the agreement, which calls for Fannie Mae to provide financial assistance for the demolition of structures where rehabilitation is not a viable option. This is the first such agreement between a buyer and an owner of a large number of foreclosed properties where the owner has agreed to help support the cost of demolition.

The CCLRC will pay $1 each for the properties, and Fannie Mae will pay $3,500 of demolition costs for each home that is not a candidate for rehabilitation. Although these payments will not cover all of the costs of demolition, the funding will help to offset those costs and allow the CCLRC to preserve funds for acquisition and reutilization of additional properties.

A principal part of the CCLRC's mission is to take title to vacant and abandoned properties that are adversely impacting the value of others in the neighborhood and return them to productive use. In some cases, where the present and projected real estate market will not support the cost to rehabilitate acquired homes, the community's best option is for them to be demolished so that the land can be used for other purposes. In all cases, decisions on the appropriate disposition of acquired properties are made in cooperation with the affected municipality.

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