PATA History Pages Home Page Our Info Contact Us Our Newsletter Hit Report Interactive Areas Calendar Discussion Area Member Pages Our PDFs HB 299 proposed School Impact Fees 2005 Facilites Review Committee Report Ricketts Smith Retail Rezoning Application Precinct Voting Map for Failed Bond Levy Diley Town Center Advertisement Our Pages Pending Annexation Issues in the spotlight of OEC Pickerington Ponds Threatened Again by Housing Development Quality of Life in our Community Hangs in the Balance Costs of Community Services....See how much it costs you! Violet Township Big Box Retail Rezoning Site Plan Well field Expansion Threatens Pickerington Ponds Merger Meeting excerpts from Attorney Richard Brahm See Your PLSD School Taxes as Percentage of Income November 2005 Election Issues Information Growth Management and Capital Improvement PDF Suburban Blight, coming to a neigborhood near you BIG BEAR USE Referendum update R-burg Zoning Referndum Goes to Supreme Court City Sets PLAN in motion to widen SR 256 HB299 School Impact Fee Bill Facilites Committee Report PDF Fairfied County Judge Throws Out Roshon Farm Rezoning Former Local Officials Continue to Push Development Outside City New Court Ruling May Affect Municipal and Township Road Projects 167 MORE Homes in the PLSD-Violet Township Zoning Hearing Builders Sway Legislators, Push for Further SPRAWLBURBIA School Bond Issue to go on May Ballot Diley Road Saga continues 2/17 addition Lawsuit Settlement Final Goes to Judge School Board Seeks Public Input 2/10/05 at Central HS. PLSD Short Term Options County Sales Tax Issue one Questions and Answers LEG Diley Rd. Referendum Press Release/City of Pickerington Ohio Poised to cut funding from Cities and Townships Sewer Expansion Update Tentative BIA Lawsuit Settlement BIA Attorneys speak on pending lawsuit settlement Sewer Overflow Problems In Pickerington Complete Fairfield County Election Results Polling Place Locations Online Issue 28 School Bond pros and cons 2004 Questions and Issues 2004 Ballot Candidates Violet Township/City of Pickerington Annextion agreement Sprawl Threatens Area with Alarming Land Gobble Violet Township Landowners Attempt to add 480 homes to PLSD Meeting to Oppose Housing Developments in the PLSD Announced Zoning Issue off Ballot Zoning Referendum Opposed by Developer ORRD Press Release regarding Roshon Estates Issue Roshon Referendum Under Microscope 362 Annexation Lawsuit settlement City Pursues Federal Dollars to widen Diley Road from 256 to 33 Roshon Development facing Referndum Attempt New City Manager Selected Diley Road Widening Plan possibly changes BIA LOSES AGAIN Pickerington Central involved in Athletic Charity Ponzi Scheme ODOT Traffic Study for I-70 SR 256 and East needs your input Limited Home Rule for Townships Presentation Diley Road Widening Comment Form CITY DEBT REALITY SINKING IN Township Citizens Fight Subdivision Sewer Plant on Shelf PICKERINGTON CONSIDERS ETHICS ORDINANCE FOR OFFICIALS New Hospital possible near Hill-Diley Violet Township Zoning Hearing Refugee and Tollgate Six Candidates Remain for City Manager BIA Loses Round One Phalen's opponent faces a challenge Developers Resist Impact Fees in Columbus Mayors consider ‘no poaching’ pact to lessen job losses Reconfiguration Committee"Keep Grade Levels the Same" Council’s delay on annexations doesn’t last long Sheriff Phalen's Opponent Creates Possible Web Site Deception Pickerington school hit by bullets during weekend Sports are Out of Bounds for Students Who Can’t Pay Regional Growth Planners Begin Work Fairfield County Debt Political Hot Potato Fairfield County Flood Assistance Contact Info Pickerington Web Site has PDF Versions of City Manager's Report Mitch O'Brien Selected to fill Shaver's Council Seat City Issues 603 Building permits in 2003 BIA Lawsuit Judge Pleads Guilty to Another DUI Sewer Plant Update, City Moves to Keep State Funding Alive Columbus Seems to Now Acknowledge What Many Have Known. Pickerington Sewer Plant in Significant Non Compliance of Permit New Ohio EPA Documents on Sewer Plant Expansion Hickory Lakes Funding Dead for 2004 Ohio Stream and River Water Quality Terrible North High School Flooding Former City Mayor Testifies at McAuliffe Trial Pickerington Developers Move on to Lancaster Why PATA exists our Vision and Mission Statement www.Pickerington Taxpayers.org Update Pickerington Area Chamber of Commerce Awards Snag over permit stops Pickerington housing project Pickerington School Board Liaison Responsibilities New Council Candidates Sewer Loan Referendum Rejected..Surprise :o New City Council Committees OEPA speaks on sewer plant issue OWDA delays Sewer Plant Loan Consideration City accepting applications for Shaver's Council Seat Pay-as-you-grow plan has worked in cities across U.S. Ohio EPA letter to Pickerington - Sewer Plant Expansion City of Hudson's Growth Management System Full Text of the BIA lawsuit Against the City of Pickerington More Traffic Inbound for SR 256/Taylor Road Builders should pay for growth, mayor says... Mike Coleman! Brice Road Failure...Forsehadow of Pickerington's Future? Builders Allege Violation of Constitutional Rights Costs of Development Impact Rocks NW Franklin, Picktown Next? Developers Outline COOPERATION strategy with New Government The PATA phone number has been changed! It is now 614-863-1547 Fairfield County Board of Elections Results Link Not out of office a year – interestingly cc’d – why? Former Mayor Gray -- HOMEWOOD REPRESENTATIVE? Schoolhouse Road Ltd (same road as the Kohler / Painter Farms) Yabba – Dabba- Do look who’s a wheeler-dealer $2.3 Million dollar strip mall acquired day's - name change 1 $2.3 Million dollar strip mall acquired day's - name change 2 A new Holding Company comes to town -- or does it? Is the former Mayor now a Commercial Strip Mall Owner? Right Image – contract Right Image – Requisition Right Image – Purchase Order Past promises from 'candidate' Postage 1999 Past promises of PLSD's Sigman Just a reminder–the 2003 directives from the Mayor pg.1 Just a reminder–the 2003 directives from the Mayor pg.2 PLSD Enrollment Chart Just how expensive is it to keep squelching Citizen Referendums Outside legal counsel uses the It’s Administrative dodge1 Outside legal counsel uses the It’s Administrative dodge2 Miserable Tax Base!! $10,000.00 of hot air Prosperity “sales pitch” page 1 Prosperity “sales pitch” page 2 Prosperity “sales pitch” page 3 Prosperity “sales pitch” page 4 BIA check and reminder of Mr. Kasson's loyalties The Miss-adventures of the Mayor – October $$ making City The Miss-adventures of the Mayor– September pg.1 The Miss-adventures of the Mayor– September pg.2 The Miss-adventures of the Mayor–August “after the Council vote Look who's bragging about the The Miss-adventures of the Mayor – June 'Water for Houses' The Miss-adventures of the Mayor – April Cooperation will help solve problems - 1 - Cooperation will help solve problems - 2 - Cooperation will help solve problems - 3 - Law Director denies 2 per acre - 1 - Law Director denies 2 per acre - 2 - An Ordinance and example of how C2 zoning becomes high density Findings of Fact & Conclusions of Law - - ? Director -1- Findings of Fact & Conclusions of Law - - ? Director -2- Grandma’s Pizza connection Lee Gray – Chris Smith Lou & Dave’s Zoning for ‘clients’? Pickerington's Fall 2001election contributors Sewer Public Hearing – PTI The history of Pickerington’s sewer Plant Expansions Projected Schedule for Sewer Plant Bidding and Construction Bidding the Sewer Expansion NOW page #3 Bidding the Sewer Expansion NOW page #2 Bidding the Sewer Expansion NOW page #1 Sewer Expansion Project Cost Estimates Pricey Pickerington Sewer Expansion Expanded Sewer Plant Facilities The fable of Pickerington's Sewer Plant expansion EPA Public Notice of Pickerington Sewer Expansion pg.1 EPA Public Notice of Pickerington Sewer Expansion pg 2 Story told to OEPA for Sewer Loan/Hickory Lakes Possible Fraud Gray Scale wording OEPA Loan application OEPA Loan application 1 OEPA Loan application 2 OEPA Sewer Expansion Hearing 8-29-02 Ohio EPA response to Sewer Issue page one Ohio EPA response to Sewer Issue page two Ohio EPA response to Sewer Issue page three Schools Fall from Excellent Rating to Effective Pickerington Wanting to Expand Sewer Service Area Developers Indian Givers Part One and Part Two Legal Opinion Opens Door for Township to Building Moratorium LOCAL NEWSPAPER Takes a Stand in Editorial! School Board to take Stance on Growth Public Comments sheet - Hickory Lakes / Sewer Expansion Ordinance autorizing Sewer Engineering Expenses +++ Community Authority Table (millage) - assumptions Community Authority Table (millage) 6/1/03 Violet Township Info. Home Rule - Community Authority City Budget 2002 Revenue page 1 City Budget 2002 Revenue page 2 City Budget 2002 Revenue page 3 US 33 Access Mgmt. Plan Discussion Item page 7 map Extended Sewer Service Violet Township Online Survey City Officials and potential “Land Option” conflicts Bushman 1 City Officials and potential “Land Option” conflicts Bushman 2 City Officials and potential “Land Option” conflicts Gray ltr 1 City Officials and potential “Land Option” conflicts Mapes ltr 1 City Officials and potential “Land Option” conflicts Mapes ltr 2 City Officials and potential “Land Option” conflicts Mapes ltr 3 325 permits and climbing Allen - Pickerington - & Hill / Diley Roads rough map Letter of Donation – After School Activities Planning and Zoning HEARING 7-10-97 pages 1 Planning and Zoning HEARING 7-10-97 pages 2 Planning and Zoning Meeting 7-10-97 pages 1 Planning and Zoning Meeting 7-10-97 pages 2 BIA threats Extension of Land Purchase Option. Citizens Initiative Outlining 2–year Moratorium & Growth Mgmt.1 Citizens Initiative Outlining 2–year Moratorium & Growth Mgmt.2 Gray letter City Ordinance Outlining Growth Management Plan Funding Sources for School Levy Campaign 1st Quarter City Building Permits increase by 185% Building Permit Graph tells the Truth BIA behind opposition to Growth Control Dominion moves to block Mandamus Mapes legal issues page 1 McAuliffe legal issues Mapes legal issues page 2 Mapes legal issues page 3 Mapes legal issues page 4 Mapes legal issues page 5 Mapes legal issues page 6 Ltr. Opposing Sewer Plant Expansion referenced in OEPA complaint RECALL of Misters: Postage, Fox, Wright, Parker, and Maxey Pickerington Citizen’s Initiatives for REAL Growth Plans Hilliard Mayor calling to Limit Housin Permits Bushman land purchase - Hickory Lakes Mid Ohio Regional Planning Commissions (MORPC) Data Past & Present Building Permits in our Region Community Authority Proposed, Not Including Violet Township Pickerington Local Schools Web Financial Status Presentation #4 Pickerington Local Schools Web Financial Status Presentation #3 Pickerington Local Schools Web Financial Status Presentation #2 Pickerington Local Schools Web Financial Status Presentation #1 CBR Points #1 CBR Points #2 ‘BIA behind Opposition to growth control’. CommUNITY 1st questionnaire page 1 CommUNITY 1st questionnaire page 2 Council Draft - Slow Growth Ordinance SVC Committee draft - proposed Slowing Growth Ordinance Local Realtors Planning "Support Growth" Posture on Moratorium Cooperation Agenda Items, City/Violet Township meeting, 2/22/03 Developers Fight Referendum Attempt on High Density in Township Competitve Bidding in School Construction Projects....What? City Building Moratorium moves out of Service Committee Comparative Residential Building Units Graph Violet Township Permit Statistics City Law Director Denies Citizens request Another way to keep Developers at bay Pickerington Building Permit Statistics Fox Glen City Law Director ingnores citizens request pg. 1. City Law Director ingnores citizens request pg. 2. Sprawl Threatens Way of Life in Many Places in Central Ohio Pataskala Residents Ponder Undoing City/ Township Merger Building Industry Ponders Lawsuit on Two Homes per acre issue Budget Scare Tactics 1 Budget Scare Tactics 2 City Growing according to Plans The Truth Part 1 The Truth Part 2 The Truth Part 3 The Truth Part 4 The Truth Part 5 The Truth Part 6 ? School site - Village of Sycamore Creek (page 1) ? School site - Village of Sycamore Creek (page 2) ? School site - Refugee Road (Police Station area page 1) ? School site - Refugee Road (Police Station area page 2) ? School site - Refugee Road (Police Station area page 3) ? School site - Reserve at Pickerington Ponds (page 1) Newspaper coverage of issues Sign of the Times - Discussion Page link REFERENDUMS DENIED - PAGE 1 REFERENDUMS DENIED - page 2 REFERENDUMS DENIED - page 3 REFERENDUMS DENIED - page 4 316 Referendum - page 1 316 Referendum - page 2 316 referendum page 3 City Manager admits actions subsidize residential construction. Recent Trends in Single Family Housing Zoning in Violet Township Links to news of today and (past) not Pickerington's finest Final Plat approvals by Emergency Ordinance Performance Audit of the PLSD pg. 1 Performance Audit of the PLSD pg. 2 On the Ballot: --- --- Vote and express your wishes. Plat Referendum(s) 5 Ault Rd-Rt. 204. Fairfield County Court of Common Pleas Contempt Charges Ordinance to Rescind & Re-enact via Emergency page 1 Ordinance to Rescind & Re-enact via Emergency page 2 Fairfield County Court of Common Pleas Injunction page 1 Fairfield County Court of Common Pleas Injunction page 2 Supreme Court Mandamus page 1 Supreme Court Mandamus page 2 City of Pickerington’s “Request for Public Records” form. Sanitary Sewer Overflows part 1 Sanitary Sewer Oveflow part 2 Regarding 362 acres, Pickerington heads to court pg.-1- Regarding 362 acres, Pickerington heads to court pg.- 2- Pickerington Official speaks out against new Initiatives Schools & Growth article links 1998 Residential Subcommittee of the JEDC - page 1- 1998 Residential Subcommittee of the JEDC -pg 2- 1998 Schools Finance Commission recommendations -pg 1- 1998 Schools Finance Commission recommendations pg -2- 1997 Schools Facilities Committee recommendations - page 1 1997 Schools Facilities Committee recommendations -2- Annexation Denied. -page 1- Annexation Denied. page -2- Ordinance # 2002-87. Council Members Recalled. Finance Committee does developers bidding Another PLSD Bond & Levy issue proposed Density (Zoning) Initiative Abatement of Fees Initiative Emergency Usage Initiative Attachment A - Emergency Initiative Additional debt facts Don't tax income if you don't provide income.. 316 acre annexation receives Commissioners adoption April - June 2002 Newsletter Cover Page City of Pickerington Debt Schedule 2002 City of Pickerington Debt Schedule 2001 Pubic Notice of Ohio EPA Hearing Citizen’s letter of Community concern. Agenda's & Minutes - Not in "Our" Town Lancaster’s promise to agenda access City moved quickly on agenda access issue Mayor proposes housing moratorium Legality of density limits questioned Initiative petitions again tabled by council members City of Pickerington - SCC pre annexation agreement page 1 City of Pickerington - SCC pre annexation page 2 City of Pickerington - SCC Pre annexation pg 3. Village’s (City’s) dissolve their government ?? In other community group petitions for moratorium LAND-USE RESTRICTIONS - Dispatch 4/30/02 Even more Pickerington Annexations -- burden of property taxes - Lancaster Eagle Gazette 4/16/02 Property tax exemptions for businesses - impact school's Pickerington Income Tax Report Dec. 31, 2001 Using the Boundary Committee Report ? Is it more portables ? Boundaries Map Option 1 Boundaries Map Option 5A Pickerington Law Director claims Null & Void 1 City Law Director states Agreement Null & Void -2- Bid to put Annexation Law on the Ballot FAILS Newsletter Cover page - what does it mean to you? Costs to improve roads harmed by residential development “Citizens deciding their own future” ???? "The Homestead" Agricultural land to PR 10 Canal Winchester Press Release pg -1- Canal Winchester Press Release pg -2- Canal Winchester Press Release pg -3- CW Mayor's letter to the members of the PLSD Board Double-sided viewpoints on Initiatives and Referendums Initiative petitions head to BOE Do citizens have the “right” to process an Initiative? Early February Newspaper coverage Utility service fight - part 1 - Utilities fight brewing - part 2 - Utilities fight brewing - part 3- Referendum Costs -- This Week Newspaper links Southern Annexation-316 acres Estimated Incentives Costs - pg 2 Southern Annexation-316 Acres Estimated Incentives Costs - Pg 1 Northern Annexation-362 Acres Estimated Incentives Costs - Pg 2 Northern Annexation-362 Acres Estimated Incentives Costs - Pg 1 Court issues - Annexation Reform articles Latest Newsworthy Media Stories Northern area Annexation Map (362 acres) Southern Annexation area map (316 acres) "Emergency Legislation" useage limits REDUCED TAP FEE INITIATIVE ZONING INITIATIVE Official's vs. Citizen's viewpoints regarding growth Helwig Project (including Police Station) site map Apartment Ground Ad Apartment Ground (and Condo) zoning letter City Ordinance to accept 11.5 acre broader spectrum of Annexation reform information Requested Correction of Information to the Pickerington Area Citizen takes legal action against City Officials Developer Influences & Myths about Growth More Communities are wanting Citizens voices heard !! Homewood's CEO letter - page - 1 - Homewood's CEO letter - page - 2- Homewood's CEO letter - page - 3 - Annexation Reform rhetoric or reality Annexation rhetoric or reality - page 2- Annexaton rhetoric or reality -page 3- Business First’s article (Annexation Rush – dated 9/7/2001). "Technical Difficulties" now follow a familiar pattern Map of 2001 Land Use & Allen Road Map of PLSD + Residential Construction Map of the 1993 Proposed Columbus Dispatch 8/26 article on development controversy "Mystery Community" Pickerington developments approved “by emergency” cut democracy 2 Sides of annexation reform Effort under way to stop annexation reform law Homewood's Plans for more houses Actual Copy of Pickerington's Reimbursement of Taxes Official's statements related to Diley annexation Pickerington Web Site seeks Public Input, errors Stop Comments Annexation Reform is signed by Governor Taft City at Debt Ceiling, Diverts School Revenue for Future Projects Merger Costly for Pataskala, Bold Moves for Picktown Next? City Plans 520+ homes .5 miles N of Canal Pointe Industrial Park CEDA approved by Violet and Canal officials City Promises Developer PR-4 for 100's of homes near CEDA area . Township Trustees to Vote on CEDA at Special Meeting on May 30th John Donley commits to forming Community Needs Foundation Amended Violet Township - Village of Canal Winchester CEDA Viola Park (120) acres at R4 Ordinance PLUS Pre-Annexation Deal Ruth Pifer's comments about annexation of her land page 1 Ruth Pifer's comments about annexation of her land page 2 Ruth Pifer's comments about annexation of her land page 3 Map of Pifer land , parcels in Hostile Annextion by Pickerington Questions Posed to the Violet Township Trustees & Staff on CEDA Parks Ask for Cooperation on Well impact on Pickerington Ponds City Poised to Annex & Zone Potential Commercial Land for Homes City's Road & Bridge Reimbursement Falls Short of Twp Hopes REFERENDUM ORDINANCE ON ZONING REPEALED BY EMERGENCY LEGISLATION Huntington Hills Residents Consider Sewage Treatment Options Annexation reform Pre-Annexation Agreement Weiser & City of Pickerington Business First CEDA articles VIOLET CANAL CEDA TEXT, read it and prepare your questions Pickerington Local School District Boundaries Well Test Pumping results delayed, See Sierra News article Wellington Pk. Plan, Updated, School Donation $ $ Proposed ! New Donley Development in Violet Twp, see the plan and analysis Map of Violet /Canal CEDA Area How to Post a Discussion in the "Discussion Area" Pickerington Invited to Form CEDA with Violet Twp on PLSD land Letter from Mayor about cooperation between Violet Twp & City Violet Township Poised to Increase Housing Numbers PATA Articles of Association REFERENDUM on R-4 ORDINACE IS NOT ONLY ABOUT 4 HOMES PER ACRE Newsletter Publishing and Mailing Information Status of Community Growth Summit Meetings Violet Township and Canal Winchester enter a CEDA Annexation Referendum - previous zoning commitments & The Ponds The Connection between Well Field Expansion and 1,000 more homes Merger Survey Results Our Hotlinks Find Answers in Our FAQ

Metro Columbus Clubs & Organizations PATA History Pages Suburban Blight, coming to a neigborhood near you From the Dispatch Series on Ohio Forclosures, Highest in Nation SUBURBAN BLIGHT Dominion Homes leads the state in FHA mortgage defaults Monday, September 19, 2005 Stories by Jill Riepenhoff Photos by Fred Squillante Big dreams filled Rick and Christy Alonso when they bought their new house from Dominion Homes. Start a family. Build equity. Move to a larger house. But six months later, their suburban neighborhood on the Far West Side began to deteriorate. New houses suddenly emptied. Thistles and dandelions overran lawns. Neon orange labels appeared in windows, signaling foreclosures. The Alonsos, whose second son was born nine days ago, live on a cul-de-sac, surrounded by houses lost to foreclosures. They want to move but can’t afford to sell. Their 4-year-old house is worth less than they paid for it. Foreclosures damage entire neighborhoods. They affect families such as the Alonsos, homeowners who pay their mortgages on time yet find themselves stuck with houses losing value. Until recently, court records show, new subdivisions have been spared the brunt of foreclosures, which have plagued inner-city neighborhoods for years. The recent spate of suburban foreclosures includes buyers whose appetite to have it all — now — leads to financial overreaching. Bankers, credit counselors, appraisers, consumer advocates and others in real estate also blame some builders who act as mortgage brokers, because their control over much of the deal reduces checks and balances. In Franklin County, two homebuilders have financing divisions that handle government-backed mortgages: Dominion Homes and M/I Homes. Only Dominion stands out for homeowners in financial trouble. Comparable data for loans without government insurance is not publicly available. Federal and county data show that: • Dominion’s two-year default rate is the highest in the nation among homebuilders with mortgage divisions that handled more than 1,000 Federal Housing Administrationbacked loans. It ranks fifth among all types of large lenders. • The company leads the state in the number of homeowners who defaulted on FHA loans within two years of closing: 221 between August 2003 and July 2005. • 11.5 percent of Dominion’s customers in Franklin County have fallen more than three months behind on their FHA mortgages in their first two years of homeownership. That’s nearly 2½ times the national figure. At least half of Dominion’s customers have government-backed mortgages. • Nearly a third of the Franklin County houses and condominiums built since 1998 that have been listed for sheriff’s sales involved Dominion buyers, a Dispatch analysis found. Of the 1,253 new homes sent to public auction, 395 were built by Dominion and 295 by its larger competitor, M/I Homes. • Since 2000, Dominion is the only central Ohio builder whose mortgage practices have raised red flags at the U.S. Department of Housing and Urban Development, which insures FHA loans. HUD auditors found violations that included false or undocumented income levels for buyers. When loans go bad, FHA reimburses lenders 100 percent, removing all risks to them and to the brokers who arrange the financing. The reimbursements are paid from insurance premiums paid by every FHA borrower. Dominion Homes chairman and chief executive officer Douglas G. Borror said he expects higher default rates because his company sells to a broad market that includes people with poor credit histories. ‘‘We have worked very hard to expand that market, to provide houses to people who previously had not been able to have new homes," he said. ‘‘These people are not of the same credit quality, the same earnings level, the same understanding of credit as people in other parts of town." Even so, Borror said, most Dominion buyers ‘‘have been successful in their purchase. We’re providing a benefit and value to the city of Columbus." He also stressed that his company operates within the law and remains in good standing with HUD. Yet Dominion’s default rate and the critical HUD audits should raise concerns at the FHA, said Nicolas Retsinas, a former FHA commissioner who now directs Harvard’s Joint Center for Housing Studies. ‘‘They weren’t put on a watch list?" he asked. ‘‘That’s surprising. That should merit scrutiny." Audit violations Five years ago, Dublin-based Dominion Homes expanded into the largely unregulated arena of mortgage brokering. Its mortgage division, Dominion Homes Financial Services, acts as matchmaker between its customers and eight lending partners. As the broker, Dominion offers special interest-rate deals and down-payment assistance. Dominion recovers those costs by building them into the price of its houses. The company controls the construction, price, sale, loan-application process and closing. Private lenders provide the cash. Though legal, the arrangement bothers some in the industry. ‘‘Nobody’s looking out for the buyer," Columbus appraiser Lori J. Austin said. Many in real estate agree that the cleanest sales happen when buyers hire attorneys, and lenders, appraisers and title agencies work independently. An undisclosed connection between Dominion Homes and a title agency, for example, caught the eye of HUD auditors. The Dispatch used the federal Freedom of Information Act to obtain audit reports of central Ohio builders with mortgage divisions. HUD audits mortgage lenders every two years. In 2002 and 2004, HUD randomly selected 42 Dominion loans and found violations in 22 cases, some of which had more than one problem: • The builder didn’t tell buyers in 20 cases that it was part owner of Alliance Title, a violation of the federal Real Estate Settlement Procedures Act. The company now discloses the connection. • In one case, Dominion used a $5,000 bonus to qualify a borrower without evidence that the buyer had received such bonuses in the previous two years or had a ‘‘reasonable prospect" of continuing to receive them in the future. Without the bonus income, the borrower didn’t meet HUD standards. • In another case, Dominion couldn’t document how a borrower was able to pay nearly $2,000 to close a loan. The borrower’s bank account, opened about a month before closing, had a balance of $750. • In six other cases, Dominion didn’t prove that its customers had steady jobs or sufficient incomes to afford a mortgage. Auditors noted that one couple received a loan in 2003 despite ‘‘an unstable work history and minimal earnings for both borrowers." The audit did not indicate how much money the couple borrowed. ‘‘We do everything in our power to follow all the rules," Borror said. A computer program analyzes buy ers’ income, debt and credit standing to determine whether they meet standards — largely replacing the underwriters who scrutinized loan applications in years past. ‘‘We don’t set policy on how government loans are made," Borror said. ‘‘We sell homes to people who qualify." The 2002 audit was resolved satisfactorily, HUD spokesman Lemar C. Wooley said. But the 2004 audit report said that the problems were so serious that HUD refused to insure those loans. At the agency’s request, Wooley said, Dominion signed documents accepting financial responsibility if those houses go into foreclosure. Dominion vice president Thomas L. Hart said the company never signed such an agreement, pointing to a May 2, 2004, letter from HUD that said the agency had ‘‘closed out all matters concerning Dominion Homes Financial Services’ portion of the review." ‘ We were fools ’ When the Alonsos walked into Dominion’s model home five years ago, they were, in most ways, typical customers: young, first-time homebuyers who needed an FHA mortgage. They had no money for a down payment but good credit. He is a State Highway Patrol trooper, and she was about to graduate from school as a dental hygienist. They relied on their Dominion salesman to determine what they could afford and arrange the details of their loan, including an interestrate buydown, a down-payment gift and an estimate on property taxes. Once the terms were set, Dominion sent the Alonsos to one of its financing partners, Wells Fargo, to process the paperwork. ‘‘We were fools," Mrs. Alonso now says. To qualify for a governmentbacked loan, borrowers need acceptable credit and steady income. The program allows them to carry more debt than private mortgages such as those secured by Fannie Mae. So they are riskier loans, failing on average five times as often as conventional mortgages. In Franklin County, Dominion trails only Colony Mortgage in the number of FHA loans originated in the past two years but leads in defaults. ‘‘We are a pioneer, leader and champion of developing affordable homes for people in areas of town that have socioeconomic challenges," Borror said. ‘‘We absolutely would have the highest percentage" of defaults, he said. ‘‘These are minorities. These are people that work at Wal-Mart. These are people who wouldn’t be able to afford a home" without Dominion. Company executives downplayed the two-year default rate because it includes loans that may not ultimately end in foreclosure. They said they rely on quarterly snapshots of mortgage performance based on the rate of defaults and foreclosure claims paid by the FHA insurance fund. That measure showed that on July 31, Dominion’s rate was 6.1 percent in Franklin County loans, compared to 2.5 percent for all lenders nationally. Dominion executives said that a HUD memo directs them to use the quarterly report. They cited a 17-word footnote offering guidance on using the quarterly measure. However, the seven-page memo focused on a broader measure that tracks defaults during the first two years of government-backed mortgages. ‘‘HUD has specifically admonished us not to rely upon that as an indicator," said Nancy Doran, senior vice president of Dominion Homes Financial Services. HUD relies on more than a quarterly snapshot to monitor mortgage defaults, said William Glavin, special assistant to the FHA’s assistant secretary for housing in Washington, D.C. ‘‘If the default rate is twice as high for the area, we can take action," he said. M/I Homes says the two-year figure provides a fuller mortgage picture. ‘‘That’s what we look at, and that’s what HUD looks at," said M/I Financial president Paul S. Rosen, who has worked with FHA loans for 30 years. Mortgaged to the hilt The Alonsos visited the Galloway Ridge model homes in 2000 on the advice of a friend. They didn’t know how much they could afford. Nor did they have a finance plan. They fell in love with one model’s vaulted ceilings, open floor plan and loft. But they didn’t want to act impulsively. They needed to sleep on the decision and talk to their parents. So they returned the following day, ready to buy. The Dominion salesman ran the Alonsos’ credit. They said he told them they could afford $191,000, tops. After settling on upgraded flooring, electrical outlets and ceiling fans, the couple borrowed $187,500 with Dominion’s special financing package: an interest-rate subsidy called a 2-1 buy-down. Buy-down loans are 30-year, fixedrate mortgages in which the seller pays 2 percentage points of the interest rate the first year and 1 point the next. The buyer pays full interest beginning in the third year. With lower first-year payments, buyers can more easily qualify for a mortgage that otherwise would be out of reach. ‘‘The guy selling the house broke down the payments," Mr. Alonso said. He showed them that their monthly payment, including mortgage insurance and property taxes, would be $1,113 the first year, $1,230 the second and $1,353 the third, according to their sales documents. Buy-downs encourage borrowers to stretch financially and bank on annual pay raises. Most buyers don’t understand, however, that the builder isn’t discounting anything, said Cynthia A. Flaherty, director of the Central and Southern Ohio Partnership Office of Fannie Mae. ‘‘The builder has built it into the cost of the loan," she said. Dominion adds the costs of buydowns into every house it builds, whether or not buyers use the incentive. ‘‘Anything you buy on credit in this country, you’re paying for the financing of it," Hart said. ‘‘That’s called American financing. It’s the same way cars are financed, and refrigerators." Buy-downs are included in about 95 percent of Dominion’s FHA loans. ‘‘Upfront, they’ve got a payment they can handle," said Christopher J. Spiroff, a bankruptcy attorney who has represented several Dominion homeowners. By the third year, when the buydown expires, homeowners typically also are hit with a significant increase in property taxes. ‘‘Our policy has always been to accurately reflect property taxes," said Doran, who joined Dominion in March. All buyers signed disclaimers that said their property taxes could be higher than estimated. Property taxes and the end of the buy-down squeezed the Alonsos’ budget so hard that they refinanced. Their mortgage payment jumped $400, to almost $1,800. ‘‘I about croaked," Mrs. Alonso said. Increasing property taxes delivered the final blow to former Galloway Ridge homeowners Mary and Shawn Kendig. Mr. Kendig worked as a telephone installation technician and held a part-time job at a restaurant. The couple, working without a real-estate agent, bought a Dominion house in 2001. They decided on their own that they would not spend more than $140,000 but ended up with a house for $181,900, borrowing almost four times the family’s annual income. ‘‘The person we worked with was so bubbly and nice," Mrs. Kendig recalled. ‘‘I kept thinking, ‘Obviously, they wouldn’t give us money for something we couldn’t afford.’ " Mrs. Kendig said the saleswoman, paid by commission, told the couple that their monthly payment never would exceed $1,200. The Kendigs said they didn’t understand how property taxes could push their payments higher, even though they signed the form disclosing that their taxes could increase. On the Kendigs’ Good Faith Estimate and the Real Estate Tax Disclosure forms, Dominion estimated taxes would cost the couple $120 a month. The Kendigs signed off on using that estimate to qualify the couple for a loan. Taxes ultimately cost about twice that. A HUD study released in March concluded, in part, that underestimating property taxes adds to the risks of default. By the end of the Kendigs’ second year in their house on Weston Woods Road, the full property taxes had kicked in and the couple’s monthly mortgage payments had reached $1,545. They tried to stay afloat with loans from check-cashing stores. ‘‘The foreclosure almost became a relief," said Mrs. Kendig, 34. ‘‘I had been so stressed out for six months." The couple and their sons, ages 5 and 7, moved to a rented house on the North Side. Their landlord wouldn’t accept personal checks from them. On the brink The Alonsos had lived in Galloway Ridge six months when the first house in their subdivision sold at a sheriff’s sale. Three months later, a second house went to auction. They thought those were isolated cases. Then the orange labels turned up on their street, marking their former neighbors’ houses as ‘‘Property of the U.S. Government." Half of the houses on the Alonsos’ street have since slipped into foreclosure. Another eight neighbors who live behind them and seven who live around the corner either filed for bankruptcy or went into foreclosure. Exactly how many Dominion homeowners in Franklin County have faced financial distress is hard to document. There are ways other than foreclosure or bankruptcy to lose a house, such as having the lender buy it back at a lower price. No agency tracks those losses. As of Aug. 31, 61 of 641 Galloway Ridge homeowners had faced foreclosure. Half of the Galloway Ridge residents who fell into foreclosure also filed for bankruptcy, typically a lastditch effort to delay the inevitable loss of a house by as much as a year. Records of sheriff’s sales and bankruptcy filings show that nearly one in six Galloway Ridge homeowners has faced foreclosure, bankruptcy or both. ‘‘Galloway Ridge is a good case study. That is a phenomenon of the macro-economy," said Hart, the Dominion vice president. ‘‘It’s divorce. It’s job loss. It’s taking out second mortgages. Some people buy a boat." Of the 96 Galloway Ridge homeowners in bankruptcy, foreclosure or both, seven divorced, 34 had second mortgages and one woman owned a boat: a 6-foot canoe. ‘‘This is a neighborhood filled with distress," Franklin County Treasurer Richard Cordray said. ‘‘The consequences are bad. Wow." Many homeowners across Franklin County are struggling to keep their homes. ‘‘There’s a lot more people near foreclosure than in foreclosure," said Samuel Gresham Jr., outgoing president of the Columbus Urban League, which this summer organized a group of government and banking officials to examine the growing problem. Financially distressed homeowners face years of turmoil when buying car insurance, renting an apartment and finding a job, Cordray said. Schools, fire and police departments, and cities lose because of unpaid property taxes and depressed house values. They also lose when residents vote against issues that would raise taxes and push them closer to disaster, he said. Lawyers, government officials and financial experts predict a surge of bankruptcy filings and foreclosures before new federal regulations take effect next month. Under the new law, most people won’t be able to just walk away — debts will remain with them. ‘‘It’s their last chance," Treasurer Cordray said. Those left behind — those who are financially secure — are stuck. ‘‘Every community we do, we hope is a longtime success, but that is not a guarantee," Dominion’s Hart said. The Alonsos, who expected to lose their fourth neighbor through a sheriff’s sale on Friday, have accepted their circumstances, for now. ‘‘What else can we do?" Mrs. Alonso said. ‘‘I guess just pray the neighborhood turns around." The couple learned just how stuck they are when they put their home up for sale last year. They first listed the immaculate 1,800-square-foot house for $217,900. Then $210,000. Then $199,900. Now, they’ll take $189,900 — exactly what they paid in 2001. But if they’re serious about selling, their real-estate agent told them, they should shave off another $30,000. News researcher Emily Glenn contributed to this story. jriepenhoff@dispatch.com fsquillante@dispatch.com Brokered Dreams Series The Columbus Dispatch Privacy Statement Neighborhood Link Terms of Use © 1997 - 2006 Neighborhood Link, Inc.