127th General Assembly

(As Introduced)

Reps. Huffman, J. McGregor, Peterson, Healy, R. McGregor, Jones, Bacon, Adams, Lundy, Stebelton, Evans

BILL SUMMARY

· Grants permanent authority to all counties, not just those with populations exceeding 1.2 million, to use up to $3 million of surplus delinquent tax collections to assist municipal corporations to abate nuisances created by deteriorated residential buildings in foreclosure.

· Eliminates existing temporary authority of a county with a population exceeding 1.2 million to use surplus delinquent tax collections to prevent residential mortgage foreclosure in the county.

CONTENT AND OPERATION

County use of delinquent tax and assessment collection funds

(R.C. 321.261)

Continuing law requires 5% of all delinquent real property, personal property, and manufactured and mobile home taxes and assessments to be deposited in a county's delinquent tax and assessment collection (DTAC) fund, to be used solely in connection with the collection of those taxes and assessments. Recently enacted H.B. 119 temporarily permits counties with a population exceeding 1.2 million to spend up to $3 million in the DTAC fund to prevent residential mortgage foreclosures, including providing loans to borrowers in default on their mortgages, and to help municipal corporations abate nuisance residential buildings that are in foreclosure. (Section 757.30.)

The bill permanently permits all counties, not just those with a population exceeding 1.2 million, to authorize up to $3 million in the DTAC fund to be used for nuisance abatement of foreclosed dwellings. As under current temporary law, the funds may be used to assist municipal corporations in the county in the nuisance abatement of deteriorated residential buildings in foreclosure, including paying the costs of securing buildings, lot maintenance, and demolition.

The bill eliminates the temporary authority to spend DTAC funds to provide financial assistance in the form of loans to borrowers in default on their home mortgages, including to pay late fees, clear arrearage balances, and augment monies used in the county's "foreclosure prevention program."

HISTORY

ACTION	DATE

Introduced	10-18-07

H0359-I-127.doc/jc