Banks, foreclosures are killing this City

On Saturday, the Cincinnati Enquirer reported that Union Savings Bank of Symmes Township has threatened to stop lending in the inner city.

The threat comes as the City threatens criminal building for two building the bank owns at 1308 William Howard Taft Road and at 755 E McMillan Street.

Union Savings Bank had made two questionable loans on which they later had to foreclose. Code violations include things as easily fixed as keeping the property adequately boarded up.

Bank attorney Brian E. Chapman claims that the criminal code violations distress the bank and that such actions may keep banks from "investing" in such neighborhoods in the future.

How much do these blighted buildings distress the community? Can you put a dollar figure on that?

And what about the Community Reinvestment Act implications of redlining a neighborhood?

It probably won't matter. The bank operates no branches in middle- or lower-income communities.

For its part, the City has bent over backwards trying to help fix the situation. They offered to pay for the demolition of 755 E McMillan St if the bank would donate it to the Walnut Hills Redevelopment Foundation (WHRF). The bank could then write it off as a tax deduction.

Until it's resolved, City Manager Milton Dohoney says that the bank will be treated like any other owner of blighted, unsafe buildings.

So it will go to court and become a long, drawn out battle between the City and the bank. Nearby residents will have to look at the blight month after month, and both buildings will probably be demolished eventually - with no benefit to anyone, including the WHRF.

Unfortunately, Union Savings Bank is just the tip of the iceberg, and not even close to being the worst offender. The City is currently owed $201,237 for barricading, inspections and demolitions as the result of out-of-town banks' bad behavior.


East Price Hill

If you saw my link for the Room 113 blog, you know that the blogger is rehabbing a house in East Price Hill, near St. Lawrence Church.

Within the last couple of days he has had two thought-provoking posts about foreclosures.

In the first one, he says he's considering buying a second house in the neighborhood. Apparently, a neighbor who has lived in their home for 13 years is going to lose it to foreclosure unless an investor can be found. The home's owner would rent until their credit was repaired well enough to buy the house back. I'm sure he would be interested to read your thoughts.

His second post presents a hypothetical situation in which "Fred" quickly gets in over his head after going from renter to homeowner. Who is to blame?

EDIT: He has a third post about the conditions in the house he might buy.

The Cincinnati Enquirer has a special section on foreclosures, but no stories have been added to it since October 19. There were quite a few stories this past weekend, which can be accessed from this story.