Controlling Board Approves Funds for Foreclosure Aid Program
Tha Hannah Report - July 19, 2010
The Ohio Housing Finance Agency (OHFA) is set to move forward on a program that helps Ohioans in danger of foreclosure after the Controlling Board approved funds for its administrative costs on Monday.
The program, which will be funded as a part of the Obama administration's Hardest Hit Fund and using Troubled Asset Relief Program (TARP) funds, will use $172 million to help 18,000 Ohioans who are experiencing financial hardship in order to prevent foreclosures.
OHFA Executive Director Doug Garver told the Controlling Board that the agency hopes to get approval from the U.S. Department of the Treasury in August and roll out the program on Oct. 1. It will hire 25 people, but he said that amount will be reduced in the future as OHFA moves administration more to local agencies.
He said the program will be offered on a statewide basis, but 51 counties have been targeted based on a formula that includes unemployment, foreclosures and home sales activity.
Sen. Ray Miller (D-Columbus) told Garver that there would be a tremendous void if groups involved in the outreach don't involve Urban Leagues and others that specifically work with minority communities. Garver assured Miller that they are looking to address that concern.
Rep. Clayton Luckie (D-Dayton) asked what assurance they have that banks will respond to the program and agree to help homeowners. Garver said OHFA has been involving its partners, including financial institutions early on, in order to address the problem. He said the program won't be a "silver bullet" but will create a significant resource to address the problem.
The only member of the panel to vote against the request was Sen. John Carey (R-Wellston), who said that he is not opposing the program, but cannot justify approving the funding when areas such as Vinton County that have high unemployment aren't among the 51 targeted counties.
In other business, the Controlling Board moved quickly through a large agenda. Requests from Youngstown State University to purchase property that members of the panel questioned earlier in the year were adopted without question on Monday. (See The Hannah Report, 2/8/10, 7/16/10.) Also approved was the estimated spending plan for Ohio school districts for FY11.
Sen. David Goodman (R-New Albany) questioned the attorney general's office about a request for special counsel for Ohio State University that proposes a $675 an hour billing cost. The university said the work is related to the James Cancer Hospital and that the firm has very specialized knowledge on the subject matter. Goodman urged the university to find a cheaper solution as well as an Ohio firm. The attorney general's office said it is looking for a less costly alternative as well as a good point in the work where new counsel can be swapped.
Rep. Jay Hottinger (R-Newark) questioned the Ohio Department of Development (ODOD) on Clean Ohio grant funds and a request to publish a website and bi-weekly e-magazine to highlight growth in specific technology focus areas.
Ed Jerse, speaking for ODOD, said that the department tries to get its message out on the Third Frontier program as best as it can but realizes it can do more. This method will have more of a global reach and will be a way to retain the best and brightest talent.
On the Clean Ohio funds, Jerse defended a request that allows the city of Wilmington to redevelop a property that will be used by the city's Wastewater Treatment Plant and Streets departments. Hottinger questioned whether that kind of request should be funded by public works funds, but Jerse said it was a project recommended by a local entity and that parts can be developed for commercial use.