Getting real about home rule

June 11th, 2009

Henry Gomez reports that City Council members like Kevin Kelley and Kevin Conwell “fired a warning shot Thursday at [local] state legislators” who voted for the state anti-residency law that the Supreme Court upheld yesterday:

Their message: Start looking out for the best interests of our constituents — or look elsewhere when you need political support in our wards come re-election time.

The tough talk came at a special council caucus, one day after the Ohio Supreme Court upheld a 2006 law that bans Cleveland and other cities from enforcing residency requirements.

“I hope in the future we hold these people accountable,” said Councilman Kevin Kelley.

This is exactly the right way to look at the situation, as I pointed out when another big anti-city, anti-Home Rule measure passed in 2007 over the City of Cleveland’s strenuous opposition — but with the votes of 100% of Cleveland’s state legislators:

The end of local cable franchising is not quite law in Ohio, not yet. The Ohio Senate must accept the House’s changes to SB 117, or a conference committee must reconcile the two versions, and the Governor must sign the final product. But this will all happen in a matter of days. The argument is over, the deal has gone down. Time to move on.

I think there are two take-aways for Cleveland community leaders and citizens who actually give a crap about what will happen to the city’s ability to govern itself and survive through the next couple of decades.

Take-away one: Nobody in the Columbus power structure — including the people we send there to represent us in the General Assembly, and the people we’ve supported for statewide office with our votes — gives a rat’s tookus for that quaint old concept known as municipal home rule. Nobody. It just doesn’t matter to them, when weighed in the political scales against anything desired by an industry, a moderate-sized labor organization, or fifteen random guys on suburban barstools.

The reason is simple and self-evident: Voting to take away another piece of Ohio communities’ self-governing power has no political cost, even when it’s your own community. Oh, the mayor might make a speech, and city council might pass a resolution, and the local paper might even write an editorial calling on you (not by name) to preserve municipal prerogatives. You might be forced to explain to a few voters how deeply you believe in home rule and how agonizing it is to balance that deep belief with the other concerns you’re called upon to address. But in the end, you can safely cast your political lot with the check-writers — the police and fire unions, the gas drillers. the gun lobby, the phone company, the cable company, the phone company’s union — against your own community, knowing that nobody will remember at election time.

If Frank Jackson and Cleveland City Council members really want to preserve a shred of home rule for this city, some Democratic Representative from Cleveland must lose his or her primary election in 2008 for voting against it. Otherwise, stop whining.

What happened? In 2008, all those Cleveland legislators who voted to strip the City of its cable oversight authority, and then ran for re-election, won easy primaries without significant opposition.This includes Barbara Boyd, who represents most of Conwell’s Ward 9; Sandra Miller, whose District includes Kelley’s Ward 16;  and Eugene Miller, just welcomed by the whole Council to fill the Ward 10 seat vacated by Roosevelt Coats.

What did they and their colleagues learn from this experience about the depth of City leaders’ commitment to defend the home rule principle that they had all just trampled? What do you think they learned?

Well, that was then, this is now. If our angry Councilmembers are at all serious this time, there’s a way for them (and the Mayor, and the Plain Dealer) to demonstrate it.

Remember, the Supreme Court did not outlaw residency rules as somehow unconstitutional,  It simply upheld an act of the General Assembly forbidding cities and villages to enforce them.  “Cable franchise reform” was another such act.  So were the legislature’s pre-emptions of municipal authority over gas drilling, carrying guns in public parks, predatory lending practices, etc.

What the General Assembly does, the General Assembly can undo. And unlike 2006, Democrats now control the Ohio House. So here’s my modest proposal to our angry Councilmen and equally unhappy Mayor:

1) Demand an emergency meeting on The Home Rule Crisis (as the PD should headline it) with all legislators representing parts of Cleveland including House Speaker Budish. Invite the mayors and councils of other Cuyahoga cities and expand the legislator list accordingly. Make it regional… reach out to Akron, Youngstown, Lorain, Mentor.

2) Use the meeting to deliver a clear, unambiguous message: Municipal leaders are fed up with the never-ending legislative attacks on community authority. You want to work with your representatives on legislation to reverse this trend, repair some of the worst damage of the last decade, and strengthen municipal fiscal, planning and regulatory authority in key areas (e.g. environmental, consumer and neighborhood protection).  You want this Community Rights Bill to go to the top of the Democratic Caucus legislative agenda in the House, you want it sponsored by every legislator who represents any of your cities, and you want to work together on a serious effort to make it law.

3) Explain that if these things are not actually happening by early next year, you will make it your business to see that uncooperative legislators of either party have serious, well-funded opponents in their primaries.

4) And then start visibly organizing — raising money, prescreening candidates, etc. — to keep that promise if necessary.

Oh, and one more thing… make sure this all happens with reporters and TV cameras in the room. Maybe even a few bloggers.

County charter plan revealed, kind of

June 9th, 2009

Thanks to Erick Trickey, here’s the draft county charter petition that you read about in the Plain Dealer Tuesday morning.

Interestingly, it says “CONSENSUS DOCUMENT 6-4-2009″ right on the front page… which means it’s been floating around since Friday, right?

There are no names attached to the document, so we unwashed masses are still left to wonder who all is in on this “consensus”.  Just for kicks, here are the names I’ve been able to retrieve from the (very unintrusive) press accounts of the various secret private get-togethers in which said consensus was shaped: Martin Zanotti, Bill Mason, Bruce Akers, Judy Rawson, Ed Crawford, Umberto Fedeli, Mal Mixon, Bill Burges, Bob Dykes, Eugene Kramer (?), Marcia Fudge and Nina Turner.

Wow. That’s a group that makes me feel all warm and included and trusting. Where do I sign?

I did a little math on the proposed County Council districts, which are defined in the petition.  Based on the ward population numbers that Bob Dykes (didn’t I just see that name somewhere?) produced for the recent Cleveland City Council redistricting, along with 2007 Census Estimates for the rest of the county’s communities, it appears that the city of Cleveland still has 33% of the county’s population.  If that percentage translated directly into representation on the proposed County Council, City voters would “own” four of the eleven Council seats.  But the plan proposes to allocate pieces of Cleveland to six Council districts, not four — two districts entirely within the city, three in which city residents would be a minority of voters, and one that would likely be closely divided between city and suburbs.  So instead of having four County Council members with their voter bases in the city, we’d get two — three at the most.

Which might have something to do with Frank Jackson’s lack of enthusiasm.

Wells Fargo: “Ghetto loans” to the “mud people”

June 7th, 2009

In the New York Times yesterday:

As she describes it, Beth Jacobson and her fellow loan officers at Wells Fargo Bank “rode the stagecoach from hell” for a decade, systematically singling out blacks in Baltimore and suburban Maryland for high-interest subprime mortgages.

These loans, Baltimore officials have claimed in a federal lawsuit against Wells Fargo, tipped hundreds of homeowners into foreclosure and cost the city tens of millions of dollars in taxes and city services.

Wells Fargo, Ms. Jacobson said in an interview, saw the black community as fertile ground for subprime mortgages, as working-class blacks were hungry to be a part of the nation’s home-owning mania. Loan officers, she said, pushed customers who could have qualified for prime loans into subprime mortgages. Another loan officer stated in an affidavit filed last week that employees had referred to blacks as “mud people” and to subprime lending as “ghetto loans.”

“We just went right after them,” said Ms. Jacobson, who is white and said she was once the bank’s top-producing subprime loan officer nationally. “Wells Fargo mortgage had an emerging-markets unit that specifically targeted black churches, because it figured church leaders had a lot of influence and could convince congregants to take out subprime loans.”

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Open-Mesh wifi on my block

June 6th, 2009

Today is the big twice-a-year Street Sale on Archwood Avenue, where I live.  (Tomorrow, too.)  I’m sitting on my front porch watching the shoppers go by and showing those who ask how our new “Free Archwood WiFi” works.

Yes, we now have a free public wifi mesh serving our block.  It currently covers a 500-foot stretch of the street going east from West 33rd.  As far as I can tell the access is reasonably good indoors as well as outdoors, but our user sample is still pretty small. (I know of six users so far other than me, and they all seem to be inside their homes.)

Free Archwood WiFi currently consists of Open-Mesh minrouters on three front porches as well as in two windows, all getting bandwidth from another minirouter attached to a standard DSL router and serving as the gateway. Each minirouter cost only $29.  (Well, actually, they cost us nothing so far… we borrowed them from One Community, which is “sponsoring” our experiment in viral networking).  Total equipment cost to date: Less than $200.

Most of the nodes have been operating together for the past 48 hours or so, with zero problems or downtime.

Open-Mesh is a nonprofit open-source “fork” from the more corporate Meraki viral mesh system, best known for its Free The Net project in San Francisco.  Both trace their pedigree and personnel to the venerable RoofNet initiative at MIT.

For the geeks among us, here’s the current Free Archwood network diagram from our online dashboard provided by Open-Mesh. (The outer lines around the nodes are users).

Pretty cool, huh?

Foley foreclosure reform bill passed by Ohio House

May 20th, 2009

House Bill 3, the Foley/Driehaus bill to reform the foreclosure process, create state regulation of mortgage servicers and impose a six-month moratorium on most home foreclosures, passed the Ohio House this afternoon by a vote of 54 to 43.

Press accounts say the vote was along party lines, but an email from Cathy Johnston of COHHIO says it was “bipartisan”, so a couple of Republicans may have voted in favor.

The bill is a major accomplishment for Rep. Mike Foley of Cleveland, who introduced it in partnership with Rep. Denise Driehaus of Cincinnati and shepherded it through his Housing and Urban Revitalization Committee.

The bill now goes to the Republican Senate, where it presumably faces some rougher handling.

Update 5/21: All the Democrats present yesterday voted for HB 3.  (Rep. Bolon didn’t vote and was presumably absent.) In addition there were three Republican “yes” votes: Reps. McGregor, Oelslager, and… Josh Mandel of Lyndhurst!

Another 550 new foreclosures in Cuyahoga in first half of May

May 20th, 2009

The Common Pleas Court docket shows at least 550 new foreclosure cases filed against Cuyahoga County properties between May 1 and May 15.

At least 268 of them were filed against properties in the city of Cleveland.

This brings the county’s total for the first four and a half months of 2009 to…

  • more than 4,600 new foreclosures in the county
  • more than 2,000 new foreclosures in the city of Cleveland.

Previous totals: April 16-30. April 1-15. January through March.

Breaking: Federal court dismisses City lawsuit against big subprime banks

May 18th, 2009

Sixteen months after it was first filed, Federal District Court Judge Sarah Lioi has dismissed the City of Cleveland’s public nuisance lawsuit against 21 major financial corporations involved in originating, underwriting, servicing or “trusteeing” tens of thousands of securitized subprime mortgages in the city.

Law Director Robert Triozzi says the City will appeal the decision, which was signed on Friday but has just become public today.

The city sought to recover damages related to the costs of “monitoring, maintaining, and demolishing foreclosed properties” and “the diminution in the city’s property tax revenues caused by the depreciating effect foreclosures have had on the affect homes and surrounding properties,” according to Judge Lioi’s opinion. But Judge Lioi found, among other things, that Ohio state law preempts the city’s public nuisance claim and that the allegations did not sufficiently show that the defendants were the proximate cause of the alleged damages.

In a statement to the Litigation Daily, Robert Triozzi, law director for the City of Cleveland, vowed the city would fight on. “Our lawsuit has been about holding those responsible for the damages caused to our neighborhoods accountable for their actions,” he wrote. “That the court chose to absolve these firms? conduct by dismissing our claims is a setback, but just a temporary setback. As we have always stated, we are in this for the long haul. We will continue this fight to the Sixth Circuit Court of Appeals where we believe our legal cause will be vindicated. The City of Cleveland deserves its day in court and we will pursue and defend our rights for as long as it takes.”

The original 21 defendants have since been reduced to 18 by bankruptcies and mergers. They include Deutsche Bank, Wells Fargo, Citicorps, Bank of America, HSBC, and JP Morgan Chase among others.

Download a copy of Lioi’s decision here (h/t Mark W).

HB 3 floor vote probably next week

May 13th, 2009

From an email update on the Foley/Driehaus foreclosure reform bill from Cathy Johnston of COHHIO:

Sub HB 3 passed the Housing and Urban Revitalization Committee last night along party lines. ..

Below is a link to a Columbus Dispatch article reporting on the hearing.

[Link]

The latest substitute version included several changes. They would:

  • Change the definition of “subprime mortgages.”
  • Create moratorium exemptions for unoccupied properties, foreclosed properties already sold at auction and awaiting court confirmation.
  • Change “clerk of courts” to “court” in Sec. 2303.33.
  • Stipulate that the clerk of courts must send out notices of the moratorium with summons or subpoenas issued to homeowners.
  • Make changes to the Department of Commerce servicer licensing section to make it uniform with other sections.

It is reported that the House floor vote will be next week…

“Along party lines” means that Cuyahoga County Republican Nan Baker, a member of Housing and Urban Revitalization, must have voted against the amended bill. Baker’s 16th District, which includes Westlake, Bay Village, North Olmsted, Rocky River and Fairview Park, has seen almost 1,400 homes foreclosed in the last three years — two hundred just since the beginning of 2009. If you vote in Rep. Baker’s district you might want to have a talk with her about this.

P.S. Here’s Sub. HB 3 as it was reported out of the committee last night.

Go buy a copy of Crain’s Cleveland Business

May 13th, 2009

This week it’s worth the $1.50 for two major articles that aren’t on line.

The first is Arielle Kass’ front-page coverage of a Cleveland Federal Reserve study exploring the striking difference in the intensity of the foreclosure crisis between comparable neighborhoods in Pittsburgh and Cleveland. The article comes to the un-Crain’s-like conclusion that Pittsburgh may have been saved from our disastrous experience by stronger state regulation of lenders. What a concept.

The second is Stan Bullard’s excellent analysis of Cleveland Housing Court Judge Ray Pianka’s cutting-edge strategies to get the biggest holders of foreclosed vacant properties (e.g. Deutsche Bank) to appear in court for their code violation hearings and comply with the same building and housing laws as other property owners.

(If you’re too far from Cleveland to find Crain’s at a newsstand — or you’re local but really, really cheap — you can wait two weeks and then check the paper’s free archive service.)

Foley/Driehaus foreclosure reform bill sent to full Ohio House

May 12th, 2009

The Ohio House Committee on Housing and Urban Revitalization has just approved an amended version of House Bill 3, the Foley/Driehaus foreclosure reform bill, and sent it to the full House.

The bill, sponsored by Reps. Mike Foley of Cleveland and Denise Driehaus of Concinnati, was rolled out in February as a “top 20″ priority of the House Democrats.

COHHIO emailed supporters earlier today that a full House vote could come as early as tomorrow (Wednesday). Passage by the committee is a strong signal that House Dems have the votes to pass it.

The Republican-controlled Senate will be another matter entirely.

The amended bill no longer gives Common Pleas judges any new mortgage modification authority. But it still includes a six-month foreclosure moratorium, higher filing fees to help pay for county foreclosure prevention and mitigation programs, and state regulation of mortgage servicers, among other changes.