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By Rick Armon
Beacon Journal staff writer
POSTED: 11:08 a.m. EST, Feb 17, 2009
The Summit County Port Authority today rejected a request to issue tax-exempt bonds for a new foreclosure prevention program, despite a last-minute plea by the nonprofit group behind the effort.
The port won't work with American Homeowner Preservation of Cincinnati, but would be interested in partnering with local nonprofit groups to address the foreclosure crisis, port board Chairman Steven Kasarnich said.
''We need somebody local and somebody with experience — a track record,'' he said after the port meeting today.
The decision was expected. The port had announced last week that it would officially revoke an earlier resolution indicating it was exploring the idea.
AHP, a new nonprofit with roots in California, had asked the port last year to issue $12.5 million in tax-exempt bonds to start its program. The group planned to buy local homes in danger of foreclosure at reduced rates from mortgage companies and lease them back to the homeowner.
The homeowner would pay rent and have the option to buy back the property after three years. The goal was to keep people in their homes.
More than 200 homeowners have already signed purchase agreements, according to AHP.
Port officials say they have had too much difficulty getting answers about the group and its leaders. Also, Indianapolis Housing Police said Monday that they are pursuing fraud charges against Jorge Newbery, the man who provided the financial backing for the group.
AHP leaders appeared before the port board today, saying they wanted a two-week delay in the board's vote.
The group is creating a local five-member oversight board and planned to partner with local nonprofits in the venture, said David Blumberg, one of the AHP board members, and president and chief executive officer of Blumberg Investments Inc. in Akron.
The group also was retooling its financial business plan, he said.
AHP wants its operations to be transparent, including its relationship with Newbery, he said.
Newbery, who has had trouble with housing projects in Columbus and Beaumont, Texas, would receive a commission on the real estate deals, and his role with AHP would be limited, Blumberg said.
The local board is designed to ''make sure it's clean and keep it clean,'' he added afterward.
The port board made no comment before voting to revoke the resolution.
For more details about AHP, call 800-555-1055 or go online to http://www.ahpoh.org.
Rick Armon can be reached at 330-996-3569 or rarmon@thebeaconjournal.com.
The Summit County Port Authority today rejected a request to issue tax-exempt bonds for a new foreclosure prevention program, despite a last-minute plea by the nonprofit group behind the effort.
The port won't work with American Homeowner Preservation of Cincinnati, but would be interested in partnering with local nonprofit groups to address the foreclosure crisis, port board Chairman Steven Kasarnich said.
''We need somebody local and somebody with experience — a track record,'' he said after the port meeting today.
The decision was expected. The port had announced last week that it would officially revoke an earlier resolution indicating it was exploring the idea.
AHP, a new nonprofit with roots in California, had asked the port last year to issue $12.5 million in tax-exempt bonds to start its program. The group planned to buy local homes in danger of foreclosure at reduced rates from mortgage companies and lease them back to the homeowner.
The homeowner would pay rent and have the option to buy back the property after three years. The goal was to keep people in their homes.
More than 200 homeowners have already signed purchase agreements, according to AHP.
Port officials say they have had too much difficulty getting answers about the group and its leaders. Also, Indianapolis Housing Police said Monday that they are pursuing fraud charges against Jorge Newbery, the man who provided the financial backing for the group.
AHP leaders appeared before the port board today, saying they wanted a two-week delay in the board's vote.
The group is creating a local five-member oversight board and planned to partner with local nonprofits in the venture, said David Blumberg, one of the AHP board members, and president and chief executive officer of Blumberg Investments Inc. in Akron.
The group also was retooling its financial business plan, he said.
AHP wants its operations to be transparent, including its relationship with Newbery, he said.
Newbery, who has had trouble with housing projects in Columbus and Beaumont, Texas, would receive a commission on the real estate deals, and his role with AHP would be limited, Blumberg said.
The local board is designed to ''make sure it's clean and keep it clean,'' he added afterward.
The port board made no comment before voting to revoke the resolution.
For more details about AHP, call 800-555-1055 or go online to http://www.ahpoh.org.
Rick Armon can be reached at 330-996-3569 or rarmon@thebeaconjournal.com.
Comments
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Akron, OH
Posted 11:46 AM, 02/17/2009
The Summit County Port Authority works with executives, economic development professionals, financial professionals, and the business community to bring economic development to Summit County and Northeast Ohio. Our overarching goal is to drive community development and enhance the economy and quality of life in our region. The Port Authority combines the power of a municipality with business and financial acumen to the mutual benefit of our industry partners and our community. We provide significant funding and trade advantages to businesses expanding or relocating in or near the county.
These include:
Economic Development
Fixed-rate Bond Fund Programs
Conduit Financing Programs
Brownfield Reclamation
Foreign-Trade Zone
Industrial and Commercial Park Development
Community Development
Richfield, OH
Posted 02:55 PM, 02/17/2009
Good decision - people need to pay their own bills.
Akron, OH
Posted 09:17 PM, 03/11/2009
Is it better for the Port Authority to fund Goodyear or American Homeowner Preservation? Unfortunately, I am not in a position to call the shots, but it sounds like the bonds Goodyear gets are guaranteed by taxpayer dollars, and the bonds AHP was supposed to get were not backed by any taxpayer dollars. Also, the bonds Goodyear gets benefit a big corporation and the bonds AHP tried to get would have benefited alot of regular people struggling to pay their mortgages. Again, I don't call the shots because I am just a regular person. However, if the Port Authority isn't going to fund AHP, it would have been nice if they offered an alternative that makes sense. AHP makes the most sense of the plans I have heard so far, and although I am an Obama supporter, his mortgage modification plan doesn't help me or anyone I know. I also appreciate all the other programs trying to help homeowners, but someone needs to find a way to do like AHP and reduce the principal balances so we don't owe way more than our houses are worth.
Cincinnati, Oh
Posted 11:04 AM, 06/11/2009
I agree with the last comment. I researched American Homeowner Preservation after reading the article. I guess when they didn’t get the funding from the Port Authority; they decided to become a for-profit company. They still are doing the same things, though. They keep families in their homes, but now have private investors. The investor buys the title of the home and agrees to a contract which allows the family to stay in the home, while paying a rent based on their income. It sounds like AHP’s negotiators work with lenders and the homeowner to find a much lower price than what was originally paid for the house, so equity is created the moment the investor buys the home. There is a positive spin for the family because they gain equity, pay rent at a fraction of what their mortgage payments were before, and have an option to repurchase the home at any time within five years. If the family decides they don’t want to live in the home anymore, they tell the investor to sell it. The family then gets any amount paid above the option price. It sounds better than paying interest to a bank the rest of my life!
Barberton, OH
Posted 11:55 PM, 09/16/2009
Update: The purported Indianapolis action versus Jorge Newbery never materialized, as multiple parties were named including past and present owners and mortgage holders of the building there. If this heresay was the basis for Summit County Port Authority's recission, that is unfortunate. As it stands, American Homeowner Preservation continues to save homes and has succeeded in obtaining discounts averaging 60% in doing so. American Homeowner Preservation offers the best foreclosure prevention solution available.
