On July 26, 2012, the Lake County Commissioners, in accordance with Section 321.261(B) of the Ohio Revised Code, authorized that five percent of all collections of delinquent real property, personal property and manufactured and mobile home taxes and assessments be deposited into the delinquent and assessment collection fund (DTAC Fund) and that all amounts upon their deposit in such fund be appropriated and distributed for the sole use of the Lake County Land Reutilization Corporation as outlined under Chapter 5722 of the Ohio Revised Code.

Since its inception and through December 31st, 2016, the LCLRC has received $2,902,048.41 in DTAC Funds.


In February 2012, 49 state attorneys general, the District of Columbia and the federal government announced a $25 billion federal – state settlement agreement with the nation’s five largest mortgage servicers – Ally/GMAC, Bank of America, Citi, JPMorgan Chase, and Wells Fargo – over foreclosure abuses and fraud, and unacceptable nationwide mortgage practices. Ohioans actually received $492 million in benefits as follows:

  • Ohio borrowers received $366 million in benefits from loan term modification and other direct relief averaging $38,100 in reductions per borrower.
  • 32,547 Ohio borrowers who lost their home to foreclosure from January 1, 2008 through December 11, 2011 and suffered servicing abuse received a $1,480 cash payment.
  • The average refinanced loan for 2,721 Ohioans underwater on their mortgages was reduced by of 2.95%, beating the national interest rate reduction average of 2.25%.
  • The Ohio Attorney General’s Office received $93 million to help with foreclosure prevention, revitalizing neighborhoods by eliminating blighted properties, education for homeowners and prosecution of mortgage rescue scammers.

Of the $93 million the Ohio Attorney General’s Office received, $75 million was allocated between all of Ohio’s counties through the Moving Ohio Forward Demolition Program. These funds were for the sole purpose of removing abandoned and blighted residential structures. The allocation of funds was based upon each county’s foreclosure activity in an effort to achieve the maximum number of demolitions. All 88 counties participated in the demolition grant program.  The Attorney General reimbursements amounted to $68 million as of July 2014.  With the support of local matching funds, over $100 million was used to remove over 12,000 structures.

LCLRC Program Summary
Total Expended $1,183,410.07
AGO’s Funds $812,431.00
LCLRC Funds $370,979.07
Houses Demolished  64
Average Cost per Demolition $18,152.30


Lien revenue are funds received as a result of demolition work on a given property. This money is either received directly from the property owner or as a result of a tax lien being placed on a property for the demolition work or nuisance abatement. The Lake County Auditor then distributes these liens from semi-annual tax collections.

Liens collected to date: $232,378.39
Outstanding Liens: $718,763.70
Liens to be applied: -0.0-


As a 501(c)(3) corporation, the LCLRC can receive contributions or donations in the form of real property, currency, or other assets. Our cash donations through December 31st, 2016 amount to $40,563.61. This is a combination of funds received that accompanied homes given to us by banks, amounting to $43,563.61. The use of these funds is left to the discretion of the LCLRC. The remaining $3,000 was donated to us by the Painesville Community Improvement Corporation to share in the cost of the benches installed at the Jack Crislip Memorial Park in Painesville Township. Additional funds were received from Allstate’s Helping Hands Grant, which is described separately.


The CDBG program is a flexible program that provides communities with resources to address a wide range of unique community development needs. Beginning in 1974, the CDBG program is one of the longest continuously run programs at HUD. The CDBG program provides annual grants on a formula basis to 1209 general units of local government and States.

The CDBG program works to ensure decent affordable housing, to provide services to the most vulnerable in our communities, and to create jobs through the expansion and retention of businesses. CDBG is an important tool for helping local governments tackle serious challenges facing their communities. The CDBG program has made a difference in the lives of millions of people and their communities across the Nation.

The annual CDBG appropriation is allocated between States and local jurisdictions called “non-entitlement” and “entitlement” communities respectively. Entitlement communities are comprised of central cities of Metropolitan Statistical Areas (MSAs); metropolitan cities with populations of at least 50,000; and qualified urban counties with a population of 200,000 or more (excluding the populations of entitlement cities). States distribute CDBG funds to non-entitlement localities not qualified as entitlement communities.

HUD determines the amount of each grant by using a formula comprised of several measures of community need, including the extent of poverty, population, housing overcrowding, age of housing, and population growth lag in relationship to other metropolitan areas.

Over a 1, 2, or 3-year period, as selected by the grantee, not less than 70 percent of CDBG funds must be used for activities that benefit low- and moderate-income persons. In addition, each activity must meet one of the following national objectives for the program: benefit low- and moderate-income persons, prevention or elimination of slums or blight, or address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community for which other funding is not available.

There are a variety of areas these funds can be earmarked for including:

Entitlement Communities
The CDBG entitlement program allocates annual grants to larger cities and urban counties to develop viable communities by providing decent housing, a suitable living environment, and opportunities to expand economic opportunities, principally for low- and moderate-income persons.

State Administered CDBG
Also known as the Small Cities CDBG program, States award grants to smaller units of general local government that carry out community development activities. Annually, each State develops funding priorities and criteria for selecting projects.

Section 108 Loan Guarantee Program
CDBG entitlement communities are eligible to apply for assistance through the section 108 loan guarantee program. CDBG non-entitlement communities may also apply, provided their State agrees to pledge the CDBG funds necessary to secure the loan. Applicants may receive a loan guarantee directly or designate another public entity, such as an industrial development authority, to carry out their Section 108 assisted project.

HUD Administered Small Cities
The HUD Honolulu Office directly administers the CDBG program for non-entitlement communities in the State of Hawaii.

Insular Areas
The Insular Areas CDBG program provides grants to four designated insular areas: American Samoa; Guam; Northern Mariana Islands; and the Virgin Islands.

Disaster Recovery Assistance
HUD provides flexible grants to help cities, counties, and States recover from presidentially declared disasters, especially in low-income areas, subject to availability of supplemental appropriations.

Neighborhood Stabilization Program
HUD provides grants to communities hardest hit by foreclosures and delinquencies to purchase, rehabilitate or redevelop homes and stabilize neighborhoods.

Texas, Arizona, California, and New Mexico set aside up to 10 percent of their State CDBG funds for improving living conditions for colonial residents.

As of December 31,2016 we have received $72,000 of these funds.

  • $27,000 was awarded in 2014, received in 2015 and used in the construction of the Jack Crislip Memorial Park located in Painesville Township.
  • $50,000 was awarded in 2015 to the LCLRC for purposes of renovating residential structures. As of December 31, 2016 we have received $45,000 of these funds.
  • The LCLRC submitted an application for funds amounting to $100,000 in the 2016 cycle, which was denied.


These Helping Hands Grants are awarded to nonprofit organizations by the Allstate Foundation in either $1,000 or $500 amounts. They are given in recognition of an Allstate agency owner’s personal community involvement or where Allstate employees volunteer. These grants are only available by invitation from the Allstate Volunteer.

The LCLRC has applied for and has received three separate $1,000 grants, one in 2014, 2015 and 2016. The first two grants were allocated towards the construction of the Jack Crislip Park in Painesville Township. The most recent grant will be allocated in accordance with the grant criteria.


Self-explanatory.Total interest received by LCLRC through December 31, 2016 is $2,932.08.


The Neighborhood Initiative Program is designed to help stabilize property values by removing and/or greening vacant and blighted properties in Targeted Areas in an effort to prevent future foreclosures for existing homeowners. NIP will prevent foreclosure by helping to stem the decline in home values that began with the burst of the housing bubble in 2008.

In Ohio, too many homeowners owe more than their estimated home value. When negative equity combines with other factors such as loss of income, the risk of foreclosure is high because homeowners do not have the option to sell a home they can no longer afford. Foreclosures result in distressed sales that further depress property values and continue the downward spiral, too often resulting in Vacant and Blighted homes. Demolition is a critical component of strategies to stabilize home values.

Initially, $49,565,000 was awarded to eligible Applicants for the acquisition and strategic removal of vacant and blighted residential properties under funding in Round 1. An additional $10,435,000 was awarded under Round 2, $6,489,573 under Round 3, and $13,000,000 under Round 4. Additional funds may be awarded if they become available and there are sufficient qualifying applications.

Only vacant and blighted one-unit to four-unit residential properties with a unique address that qualify for lawful demolition under state or federal law are eligible for NIP funding. Properties must be located in a Target Area that is part of a comprehensive strategy to stabilize home values and prevent foreclosure. Historic properties listed on the federal historic register are not eligible. Properties located in historic districts will be subject to local historic preservation legislation, which may or may not allow for demolition. The Applicant must acquire, or already own the property prior to completion of the demolition. Each property must have a Loan of non-HHF funds. Properties are not eligible for NIP reimbursement if Save the Dream Ohio previously distributed assistance in connection with a mortgage on that residence.

The maximum amount of assistance is $25,000 per residential property and may only be used for the paying off of a loan, approved demolition, remediation and greening of the site, maintenance, and administration for up to three years.

In 2015, the Lake County Land Reutilization Corporation applied for and was awarded a NIP Grant Phase One amounting to $500,000. The deadline to use these funds is October 31, 2017.

LCLRC NIP Program Summary – As of 12/31/2016
Number of homes demolished: 27
LCLRC Funds expended to date: $478,497.95
NIP Reimbursements: $396,865.80
NIP Reimbursements forthcoming: $95,633.00
Outstanding Liabilities: -0-

Our expectation is to use all funds granted in this initial NIP award. The total anticipated cost for the Phase One NIP demolitions will approximate $515,050.59. The amounts we anticipate being reimbursed will approximate $497,596.40.

The Federal government together with state attorneys general in 49 states and the District of Columbia recently reached a settlement agreement with HSBC that was filed in the United States District Court for the District of Columbia on February 5, 2016. HSBC is one the world’s largest banking and financial services organizations in the world, serving more than 47 million customers. The agreement addresses HSBC’s alleged misconduct regarding its mortgage servicing and foreclosure practices. Per this agreement, HSBC must provide $429 million in various forms of relief to certain borrowers and create a $59.3 million dollar fund for the approximately 75,000 HSBC borrowers who were foreclosed upon between January 1, 2008 and December 31, 2012. Furthermore, this agreement requires that HSBC follow the servicing standards set up by the 2012 National Mortgage Settlement (NMS) with the five largest banks.

We are excited to announce that on July 14th of this year the Land Bank was awarded an additional amount of $750,000 to continue our NIP demolitions through December of 2019.


To be eligible for NIP funding, the NIP program requires that the LCLRC have a mortgage in place for each residential demolition it plans to use the NIP funds for. We have negotiated an agreement with the Cuyahoga County Land Bank’s mortgage arm – HHF Mortgage. Each mortgage is for $100 and will be repaid when we are reimbursed from the NIP program. Through December 31, 2016, we obtained 27 mortgages for $2,700 which have been paid off.