New Law Demands Cash Bond on Foreclosures
YOUNGSTOWN, Ohio -- The Mahoning Valley Organizing Collaborative has scheduled a press event this morning to draw attention to a new law that requires parties filing foreclosures on vacant homes, or homes that become vacant, to post a $10,000 cash bond against maintenance and demolition to the city.
MVOC’s Youngstown Neighborhood Leadership Council expects the legislation to reduce the number of foreclosure filings, move existing foreclosures to completion instead of stalling in the court system, and keep properties in compliance with housing code, according to its press advisory.
There have been 5,186 foreclosures in the city since 2004, according to MVOC.
Youngstown will be the second city in the nation and the first in Ohio to enforce such a law, the group says.
“The city spends about $100,000 a year on mowing and about $500,000 a year on demolition, almost none of which is reimbursed,” says Maureen O’Neil, the city’s coordinator for neighborhood improvement.
“Because several of the big banks don’t want to maintain properties that they chase people out of, it costs the city dearly. I’m excited to begin collection of the bond because it will hold these banks accountable for the blight they create and save the city and taxpayers money.”
Mayor Charles Sammarone is expected to open the press event. It is scheduled to take place at 10:30 a.m. in City Council Chambers.
Published by The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our free daily email headlines and to our twice-monthly print edition.