HUD ends deal allowing Cleveland to buy distressed foreclosed homes - "city officials are fuming"

Submitted by Norm Roulet on Sat, 06/26/2010 - 16:53.

In my neighborhood this year, I have seen many private INDIVIDUAL investors fixing up private properties, making my community better, and I have watched landbanked government owned properties blighted and demolished, which has been worst for all. In fact, the local government has done great harm here... latest East Cleveland leadership fuckup was demolishing our historic Rozelle School. Our government "leaders" should have control over as little real estate as possible - they are incompetent.

As local leaders are not competent to plan redevelopment of my community, I prefer to see property in the hands of the free market and citizens rather than government. As such, I am glad to see reported in the Cleveland Plain Dealer today that "HUD ends deal allowing Cleveland to buy distressed foreclosed homes", as it has been clear to me (and realNEO readers in general, I believe) this program was an abuse by government of free markets and private property rights, without forethought of public interests.

Considering the widespread local government abuse of private property and citizen rights here, like with the Frank Giglio case, it is safe to say the last people on Earth who should control real estate in Northeast Ohio are local government officials.

I'm glad to see the Federal government's Department of Housing and Urban Development sees unreal NEO for all its corruption, too - I suspect they may have learned of some of the abuse here on realNEO.

It seems only Feds like those at the FBI and HUD see Cleveland clearly these days... the PD and our local leaders are "fuming" that the Feds are playing wth Cleveland's little landbanked house of cards...

Poof... they all fall down:

CLEVELAND, Ohio -- The federal housing agency has pulled the plug on a deal that helped keep some of Cleveland's worst foreclosed homes out of the hands of negligent owners.

The U.S. Department of Housing and Urban Development has ended a program that allowed the city and nonprofits to take control of the homes, and instead is offering them in a market where buyers -- responsible or not -- can get them.

Oh God...! "Buyers" can get housing in Cleveland again... what shall we do? That may actually generate PROPERTY TAXES, and PAYROLL TAXES here?!?!

PD... Mighty Mouse... save us:

"They're now dumping distressed properties back on the market again with reckless disregard for the community," said Cleveland Councilman Tony Brancatelli. "It's a big problem."

Seems the HUD to CDC friends and family charity entitlement program has ended:

The agreement gave the city or the nonprofits first dibs to buy homes valued at $20,000 or less for $100. HUD said the agreement resulted in the sale of about 440 properties.

Half of the homes went to community development groups or others for rehab and the city slated more than a third for demolition. The Cuyahoga County land bank is taking more than 50.

What went wrong, Action Jackson?

The city wasn't given a specific reason why HUD terminated the program in late March. "We were surprised, shocked and disappointed," said John Wilbur, Cleveland's assistant director for community development in an email.

Perhaps the Fed doesn't like corruption, as reported in the PD and on realNEO, of course:

The program with Cleveland began in 2009. In February, The Plain Dealer raised questions about Westown Community Development Corp., a neighborhood development agency that sold two of the former HUD homes to relatives of employees, in violation of city and federal conflict of interest rules.

HUD officials do read the Internet. Conclusion of the story, until the FBI reports in...

Meanwhile, last fall the county land bank made its proposal to HUD, that like the city's program, also allowed for discounted purchases of homes valued at more than $20,000.

In March, HUD arranged a conference call with the land bank and the city.

Bill Whitney, the land bank's chief operating officer, said he believed the agency would accept his group's offer.

Instead HUD made a 13-point counterproposal -- and said it planned to terminate the agreement with Cleveland a week later.

"I was dumbfounded," said Whitney, who remains baffled why the agency would end one agreement before striking a new one.

Land Bank President Gus Frangos wrote to HUD in early May saying that he would accept the agency's counterproposal except for a handful of points. But he is still waiting for a response.

"I'm frustrated we can't undertake the city's agreement," Frangos said. "I think it will be good for our agency, I think it will be good for HUD and it will be good for the community."

Good bye landbank. One less government agency to waste tax dollars and abuse public trust under the new county administration.

Perhaps the county may fire some people now - City too?!?!

Burn baby burn.

Thank you Feds!


Excellent Norm

Good riddance, landbank.

I am extremely pleased that HUD figured out that tax dollars will only continue to be wasted by giving Cuyahoga County Crooks any property deals.

How many times are tax payers going to pay for this foreclosure crisis?

HUD gives the crooks the homes, and their landbank cronies benefit.

I hope someone figures out that some of the CDCs are nothing but a bunch of crooks and pulls my wasted tax dollars out of their offices.   the sooner the better.

The landbank crooks will now have to resort to the old fashioned way of stealing land (Frank Giglio) instead of HUD giving handouts.

HUD flip flop

Now HUD agrees to sell foreclosed houses to Cuyahoga County land bank.




it out...

MORE Lies - Cummins, Brancatelli are sellout land bank shills

I learned today that Cummins and Brancatelli are attempting to fool some of the older members of the community into the idea that the ONLY way to demo the vacant YMCA on Pearl Rd. is to cut a deal with fake "philanthropy" Cleveland Housing Network - Cummins has lied so many times to residents, I can not fathom WHY anyone would EVER vote for him. He LIED about Aldis, he LIED about WC Reed Field, he lied about the NRP project (which is now plagued with drug dealing and prostitution). I don't know what it takes for folks to realize that Brian Cummins and Anthony Brancatelli are in BED with mobsters - the duo behind the Cuyahoga County Land Bank and the same folks who sold off property tax liens of black families in East Cleveland while allowing big tax lien scofflaws like Gus Frangos' family members to skate. Cummins KNOWS that two "investors" on West 25th-Pearl (one the son of a former CLE councilman) are not paying taxes on the Masonic Building and a building housing a daycare (look up Ginmark and White Gold). Enough is enough - put these two crooks out of business - and shut down the Land Bank and WRLC. 

NEXT STEP is to engage Cuyahoga County Council.  At least I am not the only one opposed to this unvetted land transfer in the works.  County Council rep Yvonne Conwell HAS been responsive:

From: Gus Frangos <gfrangos [at] cuyahogalandbank [dot] org>

Sent: Monday, January 11, 2016 2:01 PM

To: Yvonne Conwell

Cc: Tony Brancatelli

Subject: RE: 3881 Pearl Rd., Cleveland (records request)
OK, we should talk first by phone. Councilman Brancatelli is aware of these citizens and has been dealing with them on a community level. They do now want this project to be housing for what they perceive are “incompatible” uses and residents. CHN is the party that has expressed interest in redeveloping the site, but there is no firm project as yet. This request can be viewed as a request to the county, and the extent of the County’s response can be what the county demolition funding program is; or we can (and I would suggest) steering this as a public request to the Cuyahoga Land Bank since we have a healthy amount of info about this project. When we talk, I can fill you in on this project and what is being proposed. I think the highlighted language is what we would consider a public records request. Stand by and I will get back. I am copying Tony Brancatelli on this email. Thanks, and regards to you and Kevin! Gus
Gus Frangos
President and General Counsel
Cuyahoga County Land Reutilization Corp.
323 West Lakeside Avenue, Suite 160
Cleveland, Ohio  44113
(216) 698-8616 (ph)
(216) 698-8972 (fax)
gfrangos [at] cuyahogalandbank [dot] org


 EXPECT Cummins and Brancatelli to convene another special task force - Cummins MO on Wirth House (which he still can not destroy because of Section 106)


Councilman Brian Cummins

Nov 26, 2012 — For clarification:

1) No decision has been made or announced to close the ALDI store 3787 Pearl Road in Brooklyn Centre. In discussing the issue with ALDI Regional Executives, they confirm that a new ALDI store will be opened in Steelyard Commons by the end of 2013, but that no plans or announcements to close the Brooklyn Centre store have been made. This information was provide to Laura McShane late last week when rumors began. We'll maintain communications with ALDI and assist in anyway we can in justifying maintaining the very successful operations ALDI has in Brooklyn Centre.

2) A recent recommendation has been made to the Art House Inc. Board by an Art House Property Task Force Committee - "Based on the research done by the Property Task Force on the possible redevelopment of 3119 and 3201Denison Avenue for alternative productive uses, the Task Force recommends the demolition of both properties and the development of the land to enhance programming at Art House." This is the most recent action taken in what has been many years in which Art House has sought re-use opportunities for these structures. The recommendation to demo the structures was made in order to ensure Art House programming and Arts Education. To see the recommendation letter to the board, please see the following document at this link:

If anyone has any questions about wither one of these issues, please feel free to contact me using the information below.


Brian J. Cummins

Cleveland City Council, Ward 14


216 - six six four - 4238 

There have been too many

There have been too many back door/back handed deals with regard to the land bank properties.  Over the last few years, only the developers with big bucks have been allowed to buy vacant properties - some even buy from the land bank - flip the property a couple of months later to another developer who in turn builds a big house that sells for $250,000 - $260,000.  This should be illegal.  I'm hoping that the feds have picked up on this information.


more wite out

A Cuyahoga County Board of Revision frequently and anonymously altered official tax records with correction fluid, violating policies designed to prevent county workers from illegally reducing assessed property values, The Plain Dealer has found.


Cuyahoga County Board of Revision.  Same department that insisted on filing a tax foreclosure based on Frank Giglio owing $184.50 and the same crooked office of the landbank king who initially refused to accept Frank Giglio's payment of the taxes until a realneo member went downtown with Frank as a witness.  And after I called the county to request the dismissal of the tax foreclosure case after Frank paid the measly $184.50, they still initially refused to dismiss this case - even though Frank was then current with his taxes.

Cuyahoga County corruption at its best.

dozens of suspicious land transactions

I have researched and found dozens of suspicious land transactions in Tremont and will make sure my research gets in the proper hands.

If need be, I will research every single parcel in the Tremont area.

I've been writing my work on realNEO for the Feds for years

When I realized we are being poisoned in Northeast Ohio by our local government and development authorities selling out to corrupt local corporate interests, like MCCO and their funders, I realized all NEO battles must go to Washington DC - I've been writing my work on realNEO for the Feds for years... join me.

Be specific - if you are talking to HUD, let HUD know.

Disrupt IT

I can't share here, for now

I am sharing with the FBI and do not want to ruin the investigation.  The only reason I am mentioning this here is because I want the crooks to know where this is coming from.  I want them to know that I spent months researching their crimes and I intend to see to it that my time has not been wasted.

When they are in federal prison bunking with Big Bubba, I want them to think of Frank Giglio.

Have the FBI investigate MCCO at Lakeview and Euclid

Have the FBI investigate MCCO at Lakeview and Euclid, while you are at it. The folks they will be going after are named Zenty and Snyder.

Disrupt IT

I have your papers, Lily

they are one of the few things I know exactly where they are during the move!

thanks, dbra

I do need them back so I do not have to research that case over again. It is one of the better and more recent cases that I have for the FBI.  I am still researching that entire area because I believe there are more victims than just the three that I have found in that area.

I remember your saying that, Lily

no sweat, they're safe with me :)

i love your header image

we are moved back home and away from that toxic nightmare they call tremont...

and Bravo! HUD.... it edifies to research the origins and initial purpose/intent of these program that turn into titties for the over-indulged,,,

HUD is here weekly

Bravo citizens - in checking the stats we have visits to realNEO from HUD weekly so I'd say they look to realNEO for insight on what is going down in the local housing and development market... keep the information flowing to them... it seems to be making a difference.

Disrupt IT

welcome back, Debra

 Good to know that you are within shouting distance.

or iced tea

on the back patio!

unacceptable provisions

I wonder that this statement in the PeeDee story is really about  "Meanwhile officials at the land bank -- who made their proposal to HUD last fall -- are frustrated that they have yet to secure a deal with HUD and that the agency wants them to agree to some unacceptable provisions."?

Think maybe a PeeDee reporter would have thought to ask the City.......

Seems a rock the PD doesn't want to turn over

The PD loves all this urban CDC Monopoly and has been a big proponent of the landbank and all programs amassing land for the friends of politicians. The spin of the PD story was very much HUD bad - Cleveland good, as usual... Cleveland Good.

This story seems a rock the PD doesn't want to turn over.

Disrupt IT

Like accountability??

Would those "unaceptable provisions" be accountability and oversight??

Meanwhile officials at the land bank -- who made their proposal to HUD last fall -- are frustrated that they have yet to secure a deal with HUD and that the agency wants them to agree to some unacceptable provisions..

Good bye Land Bank??  I sure hope so.  Good riddance to CDCs, too.

Oh, the PD has some catching up to do...How about those tax lien sales and selective enforcement of tax foreclosure?   Anyone going to reactivate the HUD story that involved the sale of Abe Bruckman (OBDC, Clark Metro, Ohio City Near West Development Corp) and Sheryl (Art House, SPACES, CMNH) Hoffman's house in Brooklyn Centre?  How about flippers on the west side of Cleveland? How about that rascal Jack Peterson who flipped houses and ended up with a HUD house at 1706 Holmden and who is now delinquent on his taxes after mortgage/tax foreclosure on five houses in Brooklyn many HUD stories to follow up...

ansfer Date: 22-AUG-08 AFN Number: Receipt:
Parcel Deed Type Vol / Page Sales Amt Convey. Fee Convey. No Multiple Sale / No. of Parcels
008-11-073 Limited Warranty Ex / $0 $0   0 / 1
Grantee(s) Grantor(s)


PD says good Cleveland - Bad HUD... "agency that has gone rogue"

PD says "HUD's silence is inexcusable".

Perhaps the FBI has asked HUD to keep quiet.

Read how the PD editors make-out the situation with HUD in their editorial "Abruptly missing help from HUD: editorial".

PD says good Cleveland - Bad HUD... with the classic line "Taxpayers who pay HUD administrators' salaries and lawmakers who authorize that spending must remind the agency that it answers to the public. If that doesn't work, the White House must step in to rein in an agency that has gone rogue."

I bet HUD "administrators" are shaking in their boots in DC... PD Editors going rogue... Obama is probably knocking on HUD's front door right now!


Disrupt IT

HUD "celebrates" 40 years of CDBG