Abandoned Properties: Facing the Challenge
Judge Raymond L. Pianka, Housing Division, Cleveland Municipal Court
continued | 1 | 2 |Page 3 |A logical first step in the process would be an inventory by the City identifying property that is vacant, boarded, abandoned, in foreclosure, condemned, or slated for demolition. This inventory would permit City officials and others to determine the resources needed, and the scope of effort to be supplied, in addressing this issue.
A property inventory also would assist in the creation and implementation of an early-warning system, another recommendation in the Crossroads report. The report outlines the need to make early efforts to prevent abandonment by determining what properties show the initial signs of pending abandonment, such as a foreclosure filing, utility shut off, extensive code violations, or bankruptcy of the owner. The city and the community then must act quickly, while the owner still has multiple options available. Cities such as Philadelphia and Baltimore have utilized such early warning systems to predict and decrease property abandonment. Cleveland needs such a system.
The early warning system is crucial to preventing abandonment by enabling the City and community groups to provide aid and assistance to the property owner at a critical time – while the abandonment of the property may be prevented. That assistance should be made available to every property owner, whether that property owner is an investor or an owner-occupant. Code enforcement is most effective when it is accompanied by education for owners about both preventative maintenance and abating code violations, such as lead paint hazards, and information about loans and other financing options. Training, technical assistance, and mentoring for landlords also is essential. NOAA has led the way in this area not only by partnering with the Housing Court in presenting the mini-investment rental owners course (“IROC”), but also by providing mentoring landlords who the Court has identified as “in trouble”.
No solution to the abandoned property problem will be complete without the involvement of banks and mortgage companies. Mortgagees have a role in protecting their asset while a foreclosure is pending. However, properties in foreclosure often lapse into a vacuum of responsibility. The property owner may be instructed by the mortgagee to vacate the property; however, the mortgagee may do little - or nothing - to ensure that the property is secure and the exterior maintained.
Once a property has been abandoned, it needs to move quickly through the system to a new owner. The foreclosure process, however, is time consuming, leaving properties in an indeterminate state. A task force recently set up by the County Commissioners may address delays reported by parties in the county foreclosure system. In addition, the Cleveland Housing Court, granted authority under State law to hear foreclosure actions, has developed rules for the adjudication of foreclosures involving property in the Cities of Cleveland and Bratenahl. The use of the Housing Court as an alternative forum may relieve some of the pressure on the overburdened Common Pleas foreclosure process.
A concerted effort is needed to move abandoned properties to beneficial ownership. The city needs to aggressively use its tools to foreclose, acquire by spot blight, or utilize receivership to get the property into productive use. The city must offer encouragement to those individuals or entities that undertake this effort either through special financing or tax incentives.
There are a number of initiatives underway since the release of the Crossroads report that demonstrate the existence of a high energy level, innovative leadership, and a strong commitment to address the city’s vacant and abandoned properties crisis. It is crucial that the momentum continues and the plans for reform are carried into execution. Failure to do so will have severe consequences. We all have a role in preventing abandonment of property and turning those properties that have been abandoned into opportunities.
