OHFA Annual Plan - Ohio Housing Finance Agency

The State should consider temporary emergency legislation (3 to 24 months) that mandatesa stay of proceedings on occupied property and a court-ordered referral to one of thefunded counseling programs. By doing this, state and local court systems would be takingmaximum advantage of state and local foreclosure prevention programs.One strategy to prevent vacant housing and more people from becoming displaced due toforeclosure is to provide more protections to tenants. Renters face serious consequencesas a result of foreclosure, including immediate eviction, displacement and high transitioncosts, including new security deposits, increased new rent, moving and storage costs, andproperty costs.A recent Policy Matters Ohio report entitled “Collateral Damage: Renters in the ForeclosureCrisis,” shows the impact the foreclosure crisis has on renters in Cuyahoga County andelsewhere in the state. The study found that nearly 4,000 foreclosure filings were rentalproperties and foreclosures of rental units have increased at a higher rate than owneroccupiedproperties.According to COHHIO, renters need protections that would allow them to stay in their unitsfor a period of time following the foreclosure of their unit, making it easier for them torelocate or enter into new arrangements with the new owner. Tenants also need at least 30days written notice before a sheriff sale and the ability to continue their tenancy upon saleto a new owner. Legislation has been introduced in the House and Senate to provide greaterprotections to tenants in the event of foreclosure actions.8) Continue with efforts to address Foreclosure Prevention in an effort to minimizethe increase of vacant housing.Recommend the State of Ohio restart the Foreclosure Prevention Task Force in order toevaluate the progress of recommendations made; evaluate new possibilities in light ofchanges to legislation, changes to markets, efforts undertaken by local governments, andto address unforeseen issues that arise throughout these market conditions. While vacanthousing has always been a factor in the market, it has never been to the degree currentlyseen. These conditions will not be mitigated over a short period, and conditions will changewith the market. Therefore, the Task Force should remain as long as this condition continuesto place a significant burden on Ohio.31