Columbus says company neglected properties acquired in foreclosure

The Columbus, Ohio, city attorney's office has filed a complaint against a corporation based in Nebraska and Columbus that owns 11 blighted properties here and created companies to shield it from liability.

The case was filed against Municipal Tax Investment LLC, Municipal Tax Property LLC and Nelnet, all of which have offices in Lincoln, Neb., and at Easton Town Center. The complaint also names two local agents, Matt Beckett and Brian Breeckner of Realty Executives Decision in Columbus.

Nelnet is the sole owner and parent company of Municipal Tax Investment and Municipal Tax Property. The city attorney's office said all 11 properties have outstanding code violations, and the companies also owe $52,526 in delinquent taxes and $24,238 in abatement assessments and delinquent water and sewer payments.

The properties are in Linden, the South Side and the Near East Side and on the Hilltop.

"Their nuisance properties increase the city's police, fire, health, emergency and abatement costs while at the same time depreciating property values of the surrounding area," Assistant City Attorney Katarina Karac said in a news release.

Columbus, Ohio

On Wednesday, the city's attorney's office and a lawyer for the owners agreed that the owners will within 10 days secure an Atcheson Street property in Linden where a wall collapsed, and in 45 days present a plan to fix it, said Ben Hoetzel, staff attorney for Franklin County Environmental Judge Dan Hawkins.

City Attorney Zach Klein said people live in apartments next to that residence.

The companies acquired the properties by buying bundles of unpaid property taxes from Franklin County and demanding payment for the taxes from property owners, adding fees and penalities, which Ohio law allows.

When the debts went unpaid, the companies acquired the properties through foreclosure. But Klein's office said the companies never maintained the properties.

"They seem to take advantage of a good government program," Klein told The Dispatch on Wednesday. "The goal is to ideally work with the defendant to fix up the properties."

The companies agent, Beckett, did not want to discuss the blighted properties other than the one on Atcheson. He noted that the property is a row house, and the roof is collapsing because of a water problem.

The city attorney's office asked the court to stop the companies from acquiring tax lien certificates or buying more properties until all current properties are brought into compliance.

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Foreclosures Distressed Compliance Ohio Nebraska
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