Governments
Mahoning County, OH
The collapse of the steel industry in the 1970’s caused significant economic problems for Mahoning County, Ohio, and the County’s primary city (Youngstown). The declining economic activity lead to declining real estate market values, increased delinquencies and ultimately, budgetary problems and a need to rejuvenate many urban neighborhoods.
ATF began developing a relationship with the County in 2001, helping to fill small budgetary gaps of approximately one million annually. Based on the benefits of tax lien sales and professionalism of ATF, the relationship has steadily been expanding ultimately resulting in one of the most innovative tax lien programs ever implemented.
Mahoning County technically sold virtually their entire portfolio of over $40 million in delinquent tax liens to ATF, who became servicer for the entire pool of liens. As part of our partnership agreement with Mahoning County, ATF has an arrangement that the County can direct ATF to transfer ownership of tax certificates on vacant and low value/abandoned parcels to rehabilitation investors, property owners and other municipal redevelopment authorities at a nominal cost to the investor / re-development agent (generally the cost of foreclosure).
The program resulted in a significant, immediate short term cash infusion, as well as long term benefits to the County, including:
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Elimination of huge accumulation of unproductive delinquent liens from the County books. This caused a substantial improvement of the County′s delinquency ratios that may allow for an upgrade of the County’s bond rating. |
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The transfer of hundreds of properties to investors, municipal redevelopment authorities and property owners at a nominal cost to the investors. This transfer helps in the rehabilitation of these parcels and, over time, will convert what were previously non-productive, in many cases, blighted parcels to productive performing assets. |
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The rehabilitation of these parcels will further result in an improvement in the market value of adjacent and neighboring properties further improving the County’s financial prospects.
The transfer of servicing responsibilities of the portfolio to a third party professional real estate tax collection organization frees up County resources. This allows County staff to focus on redevelopment and rehabilitation efforts and reduce the burden of routine administrative functions. |
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The economics of this program are so compelling that even though the program has only recently been completed, it is now being used as a template for transactions for Counties throughout the State and the Nation. |
ATF can work with a taxing authority to structure a program that not only complies with all applicable legal guidelines but can be customized to address the objectives of the taxing authority. These programs result in an immediate cash infusion to the taxing authority, increase the certainty of future tax collections and transfer certain servicing responsibilities to ATF freeing up the tax collectors to improve the overall collections of their portfolios.
Visit the Mahoning County website. |
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