Cuyahoga County Creates Land Bank to Address Foreclosures

Cuyahoga County Treasurer Jim Rokakis estimates that there are around 35,000 vacant structures in Cuyahoga County. Of these, there are at least 15,000 properties awaiting demolition, at an estimated cost of $150 million.

As Rokakis told the Plain Dealer, "Vacant and foreclosed properties are destroying confidence in our neighborhoods."

To combat the foreclosure problem, Rokakis helped to establish the Cuyahoga County Land Bank, which he says will be up and running in April.

The land bank is a non-profit entity that will intervene in neighborhoods suffering from flipping, foreclosures, and speculative investors. Rokakis cited the widespread problem of investors purchasing properties in bulk from lenders whose primary objective is to unload their assets efficiently. The land bank would seek to purchase properties that are not being absorbed by the market.

"The belief is that the land is valuable," says Rokakis. "If you hold it and aggregate it, there's hope for the future." The land bank will demolish decrepit properties, and mothball or sell other properties.

The land bank will be a non-profit corporation comprised of seven board members. It will be funded from the late payment penalties assessed to delinquent property owners.

"Every percentage point decrease in value will cost the City of Cleveland's General Fund $1 million," says Rokakis. "The numbers are ugly for every community ... we need to do something now!"

It's important to note that in many cases, the decline in sales prices in our communities is due to the impact of vacant and foreclosed homes selling for cents on the dollar. If we can address foreclosures, this is one key way to improve our neighborhoods - and to rebuild value and equity.

Kudos to County Treasurer Jim Rokakis - and others that have quarterbacked this issue - for establishing the land bank. It can only help to stabilize our neighborhoods as we navigate the future that lies ahead.