Explanation
BACKGROUND: The National Community Stabilization Trust (NCST), a national non-profit organization that acts as an intermediary between financial institutions and local governments, created a subsidiary to receive donations of mortgages from these financial institutions. Called the Community Restoration Corporation, this subsidiary holds a portfolio of underperforming residential mortgages and seeks to provide assistance to homeowners to avoid foreclosure. The Land Redevelopment Office requests authorization to enter into agreements to resolve vacant properties where the CRC is unable to obtain a mortgage workout. The Land Bank program would receive funds from the CRC, accept donations of properties, agree to request tax foreclosures, and other activities to abate vacant properties. Since agreements are typically based on individual properties, blanket authorization is sought to allow the Land Redevelopment Office to enter into agreements with CRC and other financial institutions and owners of vacant property on a parcel by parcel basis. Ordinances 2161-93 and 1325-98 created the City’s Land Reutilization program and authorized the Director or his designee to enter into certain agreements to acquire properties as a part of the program. This legislation seeks additional authorization to allow the Land Redevelopment Office to negotiate additional agreements to receive funds to help defray the costs to demolish and maintain these vacant properties and in return, accept the donation of property, request tax foreclosures, receive deed in lieu of foreclosure, and other activities allowed under the Land Reutilization Program.
FISCAL IMPACT: No funding is required for this legislation. Funds received will be deposited into the Land Management Fund and used to operate the Land Reutilization Program.
EMERGENCY JUSTIFICATION: Emergency action is requested to enter into agreements as soon as possible in order to return vacant properties to productive uses.
Title
To authorize the Director of the Department of Development, or his designee, to enter into agreements with the Community Restoration Corporation, financial institutions, and other property owners in order to receive funds to help defray the costs of donated and other vacant properties acquired under the Land Reutilization Program; to accept deeds for donated property to be held and managed under the City’s Land Reutilization Program; to execute any and all documents necessary for conveyance of title to the City of Columbus of such properties; and to declare an emergency.
Body
WHEREAS, by Ordinances 2161-93 and 1325-98, Council authorized the City of Columbus to adopt a Land Reutilization Program to implement the provisions of Chapter 5722 of the Ohio Revised Code, to facilitate the effective reutilization of nonproductive land receive by tax foreclosure, tax forfeiture, deed in lieu of foreclosure, and other land acquired under the program and to foster its return to a tax revenue generating status and/or its devotion to public use; and
WHEREAS, by Ordinances 2161-93 and 1325-98, Council authorized the Director of the Department of Development to execute and all necessary agreements, subject to the approval of the City Attorney’s Office, as necessary to implement the Land Reutilization Program; and
WHEREAS, the Land Redevelopment Office desires to enter into agreements with the Community Restoration Corporation, financial institutions, and other owners of vacant properties in order to receive payments for demolition, maintenance, and other costs incurred by the City Land Reutilization Program; and
WHEREAS, in addition, the Land Reutilization Program may accept the donation of property, request tax foreclosures, receive a deed in lieu of foreclosure, in exchange for such payments; and
WHEREAS, such activities are integral to the operation of a Land Reutilization Program and blanket authorization is sought to allow the negotiation of agreements on a property by property basis; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into said agreements as soon as possible in order to facilitate the return of vacant properties to productive uses, all for the immediate preservation of the public health, peace, property, safety and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development, or his designee, is authorized to execute agreements, as approved by the City Attorney’s Office, with the Community Restoration Corporation, financial institutions, and other owners of vacant property in order to receive payments for demolition, maintenance, and other costs incurred by the City that are associated with the Land Reutilization program.
SECTION 2. That the Director of the Department of Development, or his designee, is authorized to accept donations of properties; and to utilize tax foreclosure and other tools established for the Land Reutilization Program to acquire vacant properties under said agreements. Payments received will be deposited into the Land Management Fund for the operation of the Land Reutilization Program.
SECTION 3. The Director of the Department of Development, or his designee, is authorized to execute any and all documents necessary for conveyance of title of said properties, as approved by the City Attorney’s Office, and to accept deeds to said properties to hold and manage under the Land Reutilization Program.
SECTION 4. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after passage and approval by the Mayor or ten days after its passage if the Mayor neither approves nor vetoes the same.