Recently, Cuyahoga Land Bank President Gus Frangos joined US Representatives Steve LaTourette and Marcia Fudge at a press conference held to announce the introduction of the Property Value Restoration Act of 2012 in Congress.
The bipartisan bill would create funds for demolition through the issuance of $4 billion of US Treasury backed bonds that would pay out in the form of tax credits rather than interest and would be repayable over 30 years.
“The money would be split into two pots,” said Congressman LaTourette. “$2 billion would go to the hardest hits states – Ohio qualifies as a hard hit state – and $2 billion to the remaining states.”
The bond money would be given to communities and organizations like the Cuyahoga Land Bank for the purpose of demolition and would include a “use it or lose it” clause meant to ensure that the demolition the bonds are funding actually happens.
“These blighted structures are a decease that is infecting our neighborhoods,” said Congresswoman Fudge. “The bill establishes a bond program to finance demolitions to eliminate blight and curb crime as well as aid the recovery of property value for homeowners, especially those who don’t want to leave their neighborhoods.”
The Representatives believe that the bonds will encourage public-private partnerships and provide interest free dollars for demolitions. This chart explains how the bonds would work:
Frangos spoke about a vision for what our neighborhoods can be in the future to reporters gathered at the press conference.
“We take in over 100 properties a month for repurposing, re-using, rehabbing and, of course, significant demolition,” said Frangos. “We are doing a much needed root canal to get the decay out, but this about more than a removal of decay. This is about a vision for the neighborhoods. A vision where people can live; can have their children go to school and be safe; where there is retail and all of the things that people want in their lives. And so it’s about vision.”