MANSFIELD, Ohio–The Richland County Land Reutilization Corporation (RCLRC) took steps last Wednesday to “right a wrong.”
During their meeting, the board approved a “moral obligation policy,” which provides a list of standards to refer to when dealing with non-owner-occupied forfeited properties.
The policy states that a moral obligation is a duty owing which cannot be enforced, one for which there is no legal remedy.
Jon Burton, who serves as the board’s legal counsel, said, “If there’s no legal remedy, but there is a moral remedy and we recognize that. And that’s a moral obligation–to bring fairness to correct a wrong.”
The RCLRC is a nonprofit, government-purposed entity tasked to strategically acquire blighted properties; return blighted properties to productive use through sale to private owners, demolition, preparation for traditional economic development, creative reuse such as gardening, green space and storm water management; increase property values through these efforts; support community goals; and improve the quality of life for Richland County residents.
The RCLRC acquires vacant and abandoned foreclosed properties from banks, government sponsored enterprises like Fannie MAE, federal and state agencies like HUD, tax foreclosure, donated properties and gifts.
The law gives the RCLRC final controlling legal interest through the forfeiture process.
Burton noted, “[The RCLRC] as the end owner [has] a right to steer a property to show some equity and fairness.”
So, instead of the RCLRC taking ownership of a non-owner-occupied forfeited property and putting it up for sale or demolishing it, the RCLRC could sell the property to the occupant at a low cost, explained Bart Hamilton, county treasurer and board chair of the RCLRC. And that’s exactly what RCLRC chose to do in response to a recent issue.
A woman, who wishes to remain anonymous, had been making payments on a $30,000 unrecorded land contract for the property located at 559 Morgan Ave. The previous owner, Johnnie Chapman, however, was in prison on drug trafficking charges and failed to pay property taxes. Thus, the house was forfeited and taken into possession by the RCLRC. The woman had been living at the residence since September 2009.
The RCLRC was given proof of the unrecorded land contract, as well as receipts that show the woman paid $15,418.95 to Chapman–which doesn’t include cash payments, like the $2,000 down payment that she paid, and personal investments, including $5,000 for repairs.
Amy Hamrick, land bank administrator, said, “She has provided a copy of the letter, stating that the land owner would pay the taxes and promise to replace the windows and doors, which, of course, he’s not done any of which.”
The occupant is a single grandmother who has custody of and is raising her seven-year-old granddaughter who has fetal alcohol syndrome and her 13-year-old grandson, Hamrick said. The children’s mother (her daughter) passed away from a drug overdose on Tuesday, March 3. She put an $800 down payment on her daughter’s cremation and is currently making payments on the $1,200 balance.
Hamilton said he would like to make a motion that the RCLRC sell the property to the woman for $1. The board unanimously approved that motion.
The RCLRC will consider non-owner occupants interest in forfeited properties on a case by case basis. Each applicant will be reviewed by the Rehab Committee, which will make recommendations to the board of directors. The RCLRC will offer eligible properties on a fair and impartial basis for price to be determined by the board of directors.
No one doubted the legitimacy of the Morgan Avenue woman’s case. “It’s as far as a clear-cut case as you’re ever to going to see,” said Hamilton.
President and broker for the Holden Agency and RCLRC board member, Jerry Holden, later commented, “We at the end of the day had a moral obligation to do the right thing and help this woman.”
“We at the end of the day had a moral obligation to do the right thing and help this woman,” stated Jerry Holden.
