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Legislative Update: Fast Track Foreclosure & Service Station Cleanup

Ohio General Assembly Reviews Bill that will Fast Track Foreclosure on Problem Properties House Bill 134, formerly known as HB 223 in the 130th General Assembly, has been re-introduced by bill cosponsors Representative Cheryl Grossman (R-Grove City), and Representative Mike Curtin (D-Columbus).

This bill will expedite the time it takes to foreclose on a vacant or abandoned residential property, leading to a faster turnaround for managing and mitigating blight in Ohio’s neighborhoods.  Specifically, HB 134 aims to:

  1. authorize a municipal corporation to file for foreclosure on vacant and abandoned residential properties,
  2. permits blighted properties on sale at a sheriff's auction to be listed without a minimum bid on the second sales attempt, and
  3. permits a municipality to dispose of blighted properties at their convenience if such properties have not been disposed of through a sheriff's auction.

As a result of the bill, additional foreclosure actions may be filed by municipal corporations with the appropriate court of common pleas or municipal court, and those properties in turn could be sold through a sheriff's sale, or if unsold, disposed of in a manner deemed appropriate by the municipal corporation that filed the action.

Since the bill’s introduction in late March, the bill has been moving quickly with a third hearing in the House Financial Institutions, Housing, and Urban Development Committee on Wednesday, May 20th. With the rate the legislation is moving and no testimony in opposition to the bill, HB 134 remains in good standing and could be up for a possible vote out of committee by the end of this month.

GOPC has offered support to assist Representatives Grossman and Curtin, and is working collaboratively with the Ohio CDC Association and other Interested Party members, such as the Ohio Bankers League (OBL), and various other stakeholders of this legislation. Proponents of HB 134 include the Ohio Mortgage Bankers Association (OMBA), Safeguard Properties, Community Blight Solutions, SecureView companies, the City of Columbus, and the Buckeyes State Sheriffs’ Association.

HB 134 continues to receive widespread, bipartisan support and GOPC is optimistic the bill will pick up more momentum as more members of the Legislature learn of the positive impact it will have on Ohio’s communities.

GOPC Testifies to Ohio’s Senate Finance Workforce Subcommittee on the Service Station Cleanup Fund Program

Image by Matthew Rutledge
Image by Matthew Rutledge

Government Affairs Manager Lindsey Gardiner recently offered interested party testimony to the Senate Finance Workforce Subcommittee on the Service Station Cleanup Fund Program contained within the Ohio Development Services Agency’s budget, which is part of the 2016-2017 Operating Budget (HB64).

Gardiner gave the following remarks (excerpt from testimony):

“We were pleased to see that the Operating Budget proposes the creation of a Service Station Cleanup Fund (Sec. 610.20). We have made three recommendations for consideration in the Budget.

  1. Expand the definition of property owner to include organizations that have entered into an agreement with a political subdivision, which will be better prepared to manage the challenges associated with these contaminated sites.
  2. Clarify the definition of cleanup or remediation to include the acquisition of a class C release site, demolition performed at a site, and the installation or upgrade of the minimum amount of infrastructure that is necessary to make a site operational after other clean up measures. Adding specifics to this definition will ensure properties are shovel-ready.
  3. Adjust the grant amounts for property assessment from $500,000 to $100,000 and cleanup from $2,000,000 to $500,000. Average assessment costs for small sites like a service station usually range from $20,000 to $120,000 and cleanup and remediation of these sites often can be accomplished with $100,000 to $600,000.”

GOPC is very pleased to see a commitment by the state of Ohio to assist communities in priming sites that will directly support local economic development efforts. Ohio has much economic redevelopment potential locked-up in contaminated sites and remediating these locations will help businesses thrive and create places where people want to live. We hope that the Service Station Cleanup Fund is the first of several programs that leverage the investments needed for these sites, which are located in so many of Ohio’s communities.