By Lucia Walinchus
Broadcast version by Mary Schuermann Kuhlman
Reporting for the Eye on Ohio, the Ohio Center for Investigative Journalism-Ohio News Connection Collaboration

COLUMBUS, Ohio - The Ohio Supreme Court has ruled that an unusual foreclosure process that can result in people's homes being sold without compensation for their equity should remain legal in the Buckeye State.

However, in a recently released opinion the state justices couldn't agree on the reasoning behind it. Justice Judith French authored the majority opinion, joined by Justices Michael Donnelly and Robert Hendrickson. (Justice Robert A. Hendrickson, of the Twelfth District Court of Appeals, replaced Justice Melody Stewart.)

They declined to comment on the constitutional issues presented by the case involving what are called "administrative foreclosures," saying that they would not stop the process because the law governing these procedures was not "patently and unambiguously" unconstitutional.

Not to be confused with expedited foreclosures, administrative foreclosures send abandoned properties to a county's board of revision, a committee that usually considers home values for property owners wanting to contest their taxes. The board can then give foreclosed properties to the local land bank, which can clear any debts on the property and give them to local businesses to revamp and resell.

Elliot Feltner, a Cleveland landowner, sued the board in 2018 arguing that the process was an unconstitutional government seizure without compensation. The board had foreclosed upon his property, worth $144,500 in county records. In a sheriff's sale, the state would have recovered the $68,089 owed to taxpayers and he would have received the rest. But under the BOR foreclosure, both he and the state got nothing.

Eye on Ohio previously reported on thousands BOR foreclosures in Montgomery and Cuyahoga Counties in 2019. In those cases, local land banks wiped out at least $11.2 million in tax liens. Homeowners and banks lost up to $77 million in home equity.

Though they lost, Feltner's counsel - former Ohio Attorney General Marc Dann - filed the opinion as a Notice of Supplemental Authority in both federal cases where he is litigating similar issues, one in Montgomery County and one in Cuyahoga County.

"One of the things we have to prove is that there's no adequate remedy under state law. And I think the fact that Mr. Feltner was turned down demonstrates that people who have their properties taken who have equity, and have their properties given to government entities without payment, they don't have any good remedies under law in the state courts because of the way the statute was structured," Dann said.

Opposing Counsel Gus Frangos said the administrative foreclosure process was an important way to prevent blight.

"In the aftermath of the foreclosure crisis, there was rampant vacancy and abandonment, and tax delinquencies where people just abandoned their properties so whole neighborhoods were decimated. In 2006 we were seeing all this stuff coming, although Washington didn't really see it. So there was an expedited foreclosure process in place in 2008 and it caused foreclosures to just skyrocket."

Frangos was the primary drafter of the expedited foreclosure process and runs its largest program in Cuyahoga County.

"The fallacy of all of this is that somehow people's property has been taken. They've abandoned it, they have to pay taxes. You know, you and I have to pay taxes on our properties. And so that somebody doesn't, and now they want to turn around and change the narrative to, 'oh no my property, my valuable property was taken,'" Frangos said.

"At what point does it become a harm to all the surrounding neighborhoods, these properties?" he continued. "So number one, it applies to them. And number two, these cases don't just happen when a person wakes up and loses his property. They get letters. They get served with notice. They get an opportunity to appear. And they ignore it all. They have an opportunity to come in and appear and get on a payment plan. So if you're delinquent, and you can't pay, you can get on a payment plan. If somebody feels they had a lot of equity in their home, all they have to do is pick up the phone and call a Realtor and sell it. The nanny state idea that we should babysit somebody who has totally neglected their obligation to pay taxes, at some point that becomes an affront."

At the Ohio Supreme Court, Justice Sharon Kennedy agreed to the judgment, but not the reasoning behind it.

Justice Pat DeWine also ruled for the county, but in a concurring opinion he laid out very different reasons: He said that the court should have addressed the constitutional issues, but that administrative foreclosures were very similar to normal taxing practices in the nineteenth century.

Justice Patrick Fischer and Chief Justice Maureen O'Connor also agreed on the outcome, but they wrote a concurring opinion explaining their reasoning. They said the case should have been dismissed for procedural reasons, but the constitutional issues "cannot and should not be avoided" and that the majority opinion used "circular reasoning" to avoid getting to the heart of the issue.

"The whole scheme is unsettling and just seems wrong," Fischer wrote.

This collaboration is funded in part by the Ohio News Media Foundation and The George Gund Foundation, and produced in association with Media in the Public Interest.



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Residents in a rural North Carolina town grappling with economic challenges are getting a pathway to homeownership.

In Enfield, the average annual income is about $25,000, while the average home price in the state exceeds $300,000. The significant gap between income and housing costs makes homeownership unattainable for many residents.

Mondale Robinson, mayor of Enfield, said it is an issue with which he is all too familiar, having grown up in the town. He acknowledged the dire housing conditions faced by many residents.

"Housing there is third-world," Robinson asserted. "And I know that term is not politically correct, but I use it intentionally to remind people that while we may be in the so-called richest country in the world, my people are suffering from houses that are killing them."

He pointed out many people in the town are living things like severe mold or failing foundations. Recognizing the challenges posed by limited resources both on a town and federal level, Robinson explained he is tackling the issue by forming partnerships with construction firms and lending institutions. He noted through the Horizon Project, they aim to build energy-efficient homes priced affordably at about $105,000.

Robinson highlighted historically, the majority of Black residents there have been marginalized from experiencing positive changes in their neighborhoods. He explained previous investments focused on constructing homes that were unaffordable for the community. Robinson expressed optimism the initiative will serve as a foundation for achieving long-term equality and stability.

"We had a qualification seminar where we brought people in to see if they qualify for homes," Robinson recounted. "Of those 400 people that showed up, 174 already prequalified and have already started ordering their model homes and on the process to become homeowners."

He added families who qualify will receive smart homes with two to four bedrooms, an opportunity most people living on an hourly wage in the town would not have had access to.

In addition to the housing aspect of the project, Robinson emphasized the importance of economic development and sustainability. He said they will offer training to help new homeowners maintain their property.

He stressed another major part of the Horizon project is meant to help promote growth in the town and return ownership to the people who live there.

"When all of these new houses pop up in this rural space, we know what's to follow, businesses to follow," Robinson projected. "Also, we're looking for the mental victory that folk feel when they've purchased a home, alleviating the fact that you have a landlord that is not concerned with how your health is affected by the house you're living in."

By addressing housing affordability and promoting economic empowerment, Robinson hopes the Horizon Project will serve as a blueprint for similar initiatives across North Carolina and beyond. Qualified families will move into new homes by June, while ongoing support aims to assist others in future qualification.


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New York State housing advocates say they are furious about the so-called "good cause eviction bill" in the new state budget.

It grants tenant protections to people in New York City but all other municipalities will need to opt in. It also requires renters to know their landlord's portfolio to determine eligibility for "good cause" eviction protections and the information can be hard to find.

Ritti Singh, communications organizer for the group Housing Justice for All, said previous iterations would have balanced tenant and landlord interests.

"What it required landlords to do was to show they had a valid cause of eviction, which would include nonpayment, violating the lease, causing trouble, if the landlord wanted to move into the unit," Singh outlined. "It also allowed tenants to contest rent increases over 3%, or 1.5 times the rate of inflation."

For all its potential benefits, a New York University study noted "good cause" eviction comes with just as many drawbacks. It can discourage maintenance investments in buildings, and increase the cost of resolving landlord-tenant disputes. Singh noted the bill was not designed to crimp a landlord's ability to do business but to make the housing system fairer.

Cities like Rochester and Ithaca are close to declaring housing emergencies due to rising rents. Municipalities must have a vacancy study rate below 5% to declare a housing emergency. Singh pointed out the housing crisis affects renters statewide.

"Rents are rising faster in Syracuse than they are in New York City," Singh emphasized. "In March, rents hit record highs in New York City. Rural New York is expected to see a surge of evictions over the next decade, and Long Island renters face the highest cost burdens in all of New York State."

Newburgh declared a housing emergency last year but the Orange County Supreme Court recently overturned the decision. The petitioners' attorney argued Newburgh's vacancy study was inaccurate. The Emergency Tenant Protection Act does not cover the city's renters now and jeopardizes other tenant protections the city has proposed.


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Oregon lawmakers passed a major housing package in this year's session, but said easing the state's housing crisis will take more work.

Bills passed during the short legislative session will send a total of $376 million to address the state's housing shortage, including Senate Bill 1530 and Senate Bill 1537, priorities for Gov. Tina Kotek.

Shannon Vilhauer, executive director of Habitat for Humanity of Oregon, said the governor's housing package is groundbreaking.

"We also see important investments in emergency housing assistance, addiction recovery support and renters protections," Vilhauer pointed out. "Those are all investments that are going to help stabilize Oregonians in need of housing assistance and benefit the communities we all share."

The housing package includes funds for housing and homelessness projects and to support counties buying land and developing properties.

However, Vilhauer argued there is still more to do to address the crisis. During the next legislative session, she hopes the state will help first-time homebuyers, as well as make other investments.

"Preserving affordable rental homes that exist now but are at risk of terming out of their affordability and going market rate," Vilhauer explained. "We'd love to see that affordable housing preservation investment move forward in a strong way."

Vilhauer acknowledged the housing issue in Oregon cannot be solved immediately. It is a problem decades in the making.

"It will take a concerted effort over time to continue to make headway," Vilhauer stressed. "We're starting to get there but we need to keep going with a sustained effort."


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