NE Ohio Times

State Representative Steve Demetriou announced the successful passage of House Bill 86, also known as the Gus Frangos Act, which aims to reform Ohio's land banking and tax foreclosure laws. The bill, which received bipartisan support, focuses on strengthening property owner rights, updating legal procedures, and fostering collaboration between land banks and local governments.

Demetriou highlighted the significance of the legislation by stating, "HB 86 delivers meaningful reforms that protect property owners, streamline the foreclosure process, and empower local governments. It reflects years of feedback from stakeholders and provides practical solutions to real challenges across Ohio."

A key provision in the bill is ensuring that surplus proceeds from tax foreclosure sales are returned to former property owners. This measure directly addresses a recent U.S. Supreme Court decision in Tyler v. Hennepin County. Additionally, the appeal window for expedited foreclosure cases will be extended from 14 to 30 days to reinforce due process protections.

The bill also authorizes county treasurers to conduct sheriff’s sales online to reduce administrative burdens and improve public access. This change aligns Ohio with national best practices and aims to increase participation in property auctions.

For the first time, Ohio townships will have direct partnerships with land banks for demolition and nuisance abatement—resources previously exclusive to municipalities. This development is crucial for rural areas that face blight challenges but lack resources.

"These reforms reflect lessons learned from over 15 years of land banking in Ohio," said Demetriou. "We’re making the system more fair, more functional, and more responsive to the needs of our communities."

The bill is named after Gus Frangos, who was instrumental in creating Ohio's modern land banking framework as founder and head of the Cuyahoga Land Bank. Frangos passed away unexpectedly in 2024.

House Bill 86 will now move forward for consideration by the Senate.