Tuesday, March 22, 2011

City seeks liens to recover more than $2.3M in demolition costs

The City of Cincinnati is hoping that liens placed on the Hamilton County Auditor's tax duplicate can help it recover more than $2.3 million in unpaid costs for the demolition of 181 properties.

One ordinance, passed by City Council last Wednesday, allows the City to place the special assessment to recover federal Neighborhood Stabilization Program funding used for hazard abatement and demolition on 73 properties in the "high need" neighborhoods of Avondale, Bond Hill, East Price Hill, Evanston, Madisonville, Northside, South Fairmount, West Price Hill, and Westwood.

The City is owed more than $882,000 for the demolitions, ranging from a high of $29,073 for the demolition of 2566 Talbott Avenue to a low of $5,252 for the demolition of 609 Maple Avenue.

A second ordinance, which is on tomorrow's Council agenda, covers 108 properties and seeks to recover nearly $1.4 million.

Typically, the costs of barricading or demolishing problem buildings are direct-billed to the property owners, then sent either to a private collection agency or the City Solicitor if non-payment occurs.

Under Ohio law, the use of liens for recovery is allowed under Section 715.261 (B)(1) of the Ohio Revised Code.

The assessments are payable in five annual installments and carry a 9 percent interest rate.

Previous reading on BC:
Cincinnati places liens for unpaid barricading, demolition (5/5/10)
Cincinnati tax liens would help recover $607K in NSP funds (12/16/09)
Cincinnati to levy special assessments to collect from building owners (9/18/08)