CLEVELAND — Cuyahoga County is proposing a novel – but narrowly tailored – program to prevent elderly homeowners from slipping into foreclosure.
The program would offer up to $10,000 to people who are behind on their property-tax payments, at least 70 years old and making less than $70,000 a year.
It’s an attempt to test the market – to see how deep the need is and whether grants, along with housing counseling, can keep struggling seniors in their homes.
County Executive Chris Ronayne announced the proposal during a news conference Monday at the North Olmsted Senior Center. Legislation to pay for it – at a cost of $5 million over two years – will be introduced at Cuyahoga County Council on Tuesday.
“This is a pilot program,” Brad Cromes, the county treasurer, said in an interview. “By looking at this population, we’re hoping to sort of see, you know, how effective is this? And then going forward, we’d like to grow it and make it more available to more taxpayers.”
The county’s proposal comes on the heels of a state-mandated reappraisal where home values rose, on average, by 32%, fueled by bidding wars and soaring prices.
Tax bills are rising much less sharply – and even falling in some cases. But the new values still prompted an outcry over the summer, particularly from low-income, elderly homeowners who have nowhere to turn.
“This is Cuyahoga County’s attempt to help the people who are really the most vulnerable,” Cromes said. “And seniors in particular who are already tax delinquent are the ones that are in the greatest danger, so we’re kind of doing triage on that.”
Broader help still needs to come from the state, he said, noting that many tax-relief bills are pending in the General Assembly – but lawmakers haven’t moved them forward.
“The best solutions to this problem are going to come from Columbus,” Cromes said. “So we encourage everybody to contact their legislators.”
CHN Housing Partners, a nonprofit devoted to housing affordability and stability, will run the county’s program. CHN provided similar aid to a broader group of Cuyahoga County homeowners during the pandemic, using federal pandemic relief money.
That CHN program pumped out $5.3 million to cover current and overdue taxes, pay foreclosure fees and court costs and wipe out tax liens. The average grant was $5,353, and the money flowed to 984 households, according to a presentation from CHN.
The CHN program ran out of money in late 2023. It did not carry the age and income restrictions that the county is setting now. Only 20% of the beneficiaries were at least 65 years old.
Cromes said the county plans to fund its program by tapping his office’s delinquent tax and assessment collection fund. When the county collects overdue taxes, 2.5% of the money goes into that fund.
Of the $5 million program budget, $4 million will go toward the cash payments – $2 million each year. The other $1 million will be used for a housing-counseling program.
Homeowners already can fill out a form on CHN’s website to reserve a place in line. The grants will be provided on a first-come, first-served basis. If county council approves the enabling legislation, the first applicants could receive funding in December.
Cromes believes thousands of homeowners will be eligible for help. However, the program is likely to help fewer than 1,000 people if the average grant amount is similar to what CHN offered during the pandemic.
“We want people to apply, even if they think they might not be eligible. … And if you think this might be a fit for you, please do,” he said, noting that the county offers other tax-reduction programs for owner-occupants and elderly homeowners, along with payment plans. “Even if it’s not, we probably have something that can help.”
Helen Hlaves was picking out books at the senior center Monday afternoon, just down the hall from the county's news conference. She's lived in North Olmsted since 1985 and is determined to stay in her home.
"I can still do everything except mow my lawn. That type of thing," said Hlaves, who is 88. "But I have wonderful, wonderful neighbors."
She's been able to keep up with her tax bills so far. And she makes use of the state's homestead exemption, which provides a modest tax break to low-income elderly homeowners. But she's worried about the mounting pressures on retirees as their expenses rise and incomes don't keep up.
Her home value jumped in the county's recent reappraisal. But she hasn't run the numbers on her future tax bills yet.
"I'm afraid to look," she said, laughing.
