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Hb463 presentation

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Preserving Our Neighborhoods: An Educational Webinar on Ohio’s Recently Passed HB463

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Hb463 presentation

  1. 1. Preserving Our Neighborhoods: An Educational Webinar on Ohio’s Recently Passed HB463 February 21, 2017 Hosted by: Alison Goebel Executive Director Greater Ohio Policy Center
  2. 2. House Bill 463 Today’s Panelists: • Jason Warner, Manager of Government Affairs, Greater Ohio Policy Center • Adam Hewit, President, Government Solutions Group • Robert Klein, Founder & Chairman, Community Blight Solutions • Aaron Klein, former United States Treasury Department Deputy Assistant Secretary for Economic Policy • Josh Harmon, Chief Environmental Specialist, Franklin County Municipal Court and President, Ohio Code Enforcement Officials Association
  3. 3. House Bill 463 Summary of changes enacted in House Bill 463 (Dever) Jason Warner Manager of Government Affairs, Greater Ohio Policy Center Adam Hewit President, Government Solutions Group
  4. 4. House Bill 463 Approved by the Ohio Legislature: December 8, 2016 Approved by Governor Kasich: January 4, 2017 Effective Date of the Law: April 6, 2017
  5. 5. House Bill 463 o Property Tax Exemptions on Properties Undergoing Redevelopment o Revisions to Real Property Foreclosure Process for Expedited Mortgage Foreclosures
  6. 6. House Bill 463 Property Tax Exemptions on Properties Undergoing Redevelopment Maximum exemption for a remodeled property in a Community Reinvestment Area (CRA) o Under current law… o The remodeling of existing structures is exempted for 12 years while NEW construction is exempted for 15 years. o Maximum tax-exempted value of remodeling is based on “the amount by which the remodeling increased the assessed value of the structure.”
  7. 7. House Bill 463 Property Tax Exemptions on Properties Undergoing Redevelopment Maximum exemption for a remodeled property in a Community Reinvestment Area (CRA) o Under House Bill 463… o ALL STRUCTURES within a CRA, including remodeling and new construction, will be exempted for 15 years. o Max tax-exempted value will be determined on the basis of the structure’s increased value after remodeling activities begin.
  8. 8. House Bill 463 Property Tax Exemptions on Properties Undergoing Redevelopment Brownfield Remediation o Current Law… o Grants 10 year partial property tax exemptions for sites contaminated with hazardous substances that undergo certain measures to address the contamination. o Exemption applies to the increase in the value of the land itself as well as the value in any building on the land when the exemption is ordered. o The exemption begins the year the order is issued.
  9. 9. House Bill 463 Property Tax Exemptions on Properties Undergoing Redevelopment Brownfield Remediation o Under House Bill 463… o Clarifies that the exemption is applicable at the beginning of the year when the exemption is ordered o Effectively exempts any increase in property value which occur after remediation activities begin
  10. 10. House Bill 463 Revisions to Real Property Foreclosure Process for Expedited Mortgage Foreclosures Property Taxes o Current Law… o Plaintiffs may approve or disapprove property charges being taken out of the sale proceeds of foreclosed properties o The Officer conducting the sale determines whether the property charges may be taken out of the sale proceeds, subject to the plaintiffs approval
  11. 11. House Bill 463 Revisions to Real Property Foreclosure Process for Expedited Mortgage Foreclosures Property Taxes o Under House Bill 463… o The Judgement Creditor may approve or disapprove property charges being taken out of the sale proceeds of foreclosed properties o The Court conducting the sale determines whether the property charges may be taken out of the sale proceeds, subject to the judgement creditor’s approval
  12. 12. House Bill 463 Revisions to Real Property Foreclosure Process for Expedited Mortgage Foreclosures Expedited Hearings o Current Law… o Silent on the type of hearing which must be held to proceed on a foreclosure action in an expedited manner
  13. 13. House Bill 463 Revisions to Real Property Foreclosure Process for Expedited Mortgage Foreclosures Expedited Hearings o Under House Bill 463… o Specifies that the hearing on whether to proceed on a foreclosure action in an expedited manner must be oral hearings
  14. 14. House Bill 463 Revisions to Real Property Foreclosure Process for Expedited Mortgage Foreclosures Fees o Current Law… o Purchasers of expedited mortgage foreclosed real property must pay recording fees and associated costs
  15. 15. House Bill 463 Revisions to Real Property Foreclosure Process for Expedited Mortgage Foreclosures Fees o Under House Bill 463… o Eliminates the requirement the purchaser pay recording fees and associated costs
  16. 16. House Bill 463 Revisions to Real Property Foreclosure Process for Expedited Mortgage Foreclosures Minimum Bids o Current Law… o No set minimum bid for expedited mortgage foreclosure sales
  17. 17. House Bill 463 Revisions to Real Property Foreclosure Process for Expedited Mortgage Foreclosures Minimum Bids o Under House Bill 463… o For foreclosure sales initiated by a county prosecutor, sets a minimum bid for the sale to be equal to the total amount of unpaid taxes and court costs
  18. 18. House Bill 463 Revisions to Real Property Foreclosure Process for Expedited Mortgage Foreclosures Minimum Bids o Under House Bill 463… o If the amount is greater than the properties apprised value, the court is required to determine the minimum bid, which cannot exceed the apprised value o The county auditor must discharge unpaid taxes and costs if sold for less than those amounts
  19. 19. House Bill 463 Revisions to Real Property Foreclosure Process for Expedited Mortgage Foreclosures Plywood o Under House Bill 463… o Prohibits the use of plywood to secure real property that is deemed vacant and abandoned under continuing law; the prohibition does not apply to persons that used plywood prior to the effective date of the bill.
  20. 20. House Bill 463 Robert Klein Founder & Chairman Community Blight Solutions
  21. 21. Increasing Value By Improving How Vacant Properties are Secured Aaron Klein Former Deputy Assistant Secretary U.S. Treasury Department Chief Economist, Senate Banking, Housing, and Urban Affairs Committee
  22. 22. Vacant and Abandoned Homes • 1.3 Million vacant residential homes • Each vacant building imposes costs – Loss of value to the property itself – Loss of value to neighbors – Increase in crime and fire – Increase in police and fire department costs
  23. 23. Costs for a Vacant Home Median National Value: $200,000 1. Property Itself - $70,000 (35%) 2. Neighbors – $100,000 total. • 1% decline per home within 500 feet • 0.5% decline per home within 1/8 of a mile. 3. Crime & Fire -- $14,000 per year • Increases in murder, rape, assault, & robbery • Total societal costs nearly $800 million 4. Community Police & Fire -- $1,400 per year
  24. 24. How You Secure the Building Matters Plywood Clearboard
  25. 25. Benefits From Securing With Clearboard Vs. Plywood
  26. 26. Joshua Harmon president@oceoa.org
  27. 27. City of Springfield – 87 structures – 252 openings – 4,741 sq.ft./158+ sheets – 30% (79) of openings are ‘standard’ sized
  28. 28. Average Springfield Home 1,700 sq.ft. 2-story duplex built circa 1871 - 10 1st floor openings - 187 sq.ft. of material requiring nine 4x8 boards $0.00 $200.00 $400.00 $600.00 $800.00 $1,000.00 $1,200.00 Material Material Cost (per sq.ft.) Plywood $0.37 Film Faced Plywood $0.78 Sheet Metal $2.44 Metal Security Bars $2.66 Plexiglas $3.72
  29. 29. Future Considerations
  30. 30. House Bill 463 Questions? Please type these into the Questions function in the webinar panel that appears on the right side of your screen
  31. 31. House Bill 463 For more resources on how to stabilize neighborhoods and communities, register for GOPC’s upcoming Summit, Investing in Ohio’s Future, March 7th and 8th in Columbus. greaterohio.wixsite.com/2017-summit greaterohio.org

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