HUD ends deal allowing Cleveland to buy distressed foreclosed homes - "city officials are fuming"

In my neighborhood this year, I have seen many private INDIVIDUAL investors fixing up private properties, making my community better, and I have watched landbanked government owned properties blighted and demolished, which has been worst for all. In fact, the local government has done great harm here... latest East Cleveland leadership fuckup was demolishing our historic Rozelle School. Our government "leaders" should have control over as little real estate as possible - they are incompetent.

As local leaders are not competent to plan redevelopment of my community, I prefer to see property in the hands of the free market and citizens rather than government. As such, I am glad to see reported in the Cleveland Plain Dealer today that "HUD ends deal allowing Cleveland to buy distressed foreclosed homes [1]", as it has been clear to me (and realNEO readers in general, I believe) this program was an abuse by government of free markets and private property rights, without forethought of public interests.

Considering the widespread local government abuse of private property and citizen rights here, like with the Frank Giglio case, it is safe to say the last people on Earth who should control real estate in Northeast Ohio are local government officials.

I'm glad to see the Federal government's Department of Housing and Urban Development sees unreal NEO for all its corruption, too - I suspect they may have learned of some of the abuse here on realNEO.

It seems only Feds like those at the FBI and HUD see Cleveland clearly these days... the PD and our local leaders are "fuming" that the Feds are playing wth Cleveland's little landbanked house of cards...

Poof... they all fall down:

CLEVELAND, Ohio -- The federal housing agency has pulled the plug on a deal that helped keep some of Cleveland's worst foreclosed homes out of the hands of negligent owners.

The U.S. Department of Housing and Urban Development has ended a program that allowed the city and nonprofits to take control of the homes, and instead is offering them in a market where buyers -- responsible or not -- can get them.

Oh God...! "Buyers" can get housing in Cleveland again... what shall we do? That may actually generate PROPERTY TAXES, and PAYROLL TAXES here?!?!

PD... Mighty Mouse... save us:

"They're now dumping distressed properties back on the market again with reckless disregard for the community," said Cleveland Councilman Tony Brancatelli. "It's a big problem."

Seems the HUD to CDC friends and family charity entitlement program has ended:

The agreement gave the city or the nonprofits first dibs to buy homes valued at $20,000 or less for $100. HUD said the agreement resulted in the sale of about 440 properties.

Half of the homes went to community development groups or others for rehab and the city slated more than a third for demolition. The Cuyahoga County land bank is taking more than 50.

What went wrong, Action Jackson?

The city wasn't given a specific reason why HUD terminated the program in late March. "We were surprised, shocked and disappointed," said John Wilbur, Cleveland's assistant director for community development in an email.

Perhaps the Fed doesn't like corruption, as reported in the PD and on realNEO, of course:

The program with Cleveland began in 2009. In February, The Plain Dealer raised questions about Westown Community Development Corp., a neighborhood development agency that sold two of the former HUD homes to relatives of employees, in violation of city and federal conflict of interest rules.

HUD officials do read the Internet. Conclusion of the story, until the FBI reports in...

Meanwhile, last fall the county land bank made its proposal to HUD, that like the city's program, also allowed for discounted purchases of homes valued at more than $20,000.

In March, HUD arranged a conference call with the land bank and the city.

Bill Whitney, the land bank's chief operating officer, said he believed the agency would accept his group's offer.

Instead HUD made a 13-point counterproposal -- and said it planned to terminate the agreement with Cleveland a week later.

"I was dumbfounded," said Whitney, who remains baffled why the agency would end one agreement before striking a new one.

Land Bank President Gus Frangos wrote to HUD in early May saying that he would accept the agency's counterproposal except for a handful of points. But he is still waiting for a response.

"I'm frustrated we can't undertake the city's agreement," Frangos said. "I think it will be good for our agency, I think it will be good for HUD and it will be good for the community."

Good bye landbank. One less government agency to waste tax dollars and abuse public trust under the new county administration.

Perhaps the county may fire some people now - City too?!?!

Burn baby burn.

Thank you Feds!