Increased demolition costs catch eye of federal agents

The cost of home demolitions in the Cleveland area have risen 66 percent, causing the Special Inspector General for the Troubled Asset Relief Program (TARP) to raise questions, a report by News 5 says. A quarterly report showed the costs rising from an average of $9,000 per home to $15,000 over two and a half years.

Cuyahoga County has received around $52 million in funds from the federal government’s Hardest Hit Funds program and has used around $34 million so far, according to the report. Cuyahoga County Land Bank Chief Operating Officer Bill Whitney told News 5 that the organization has demolished around 1,900 homes with the money.

The rise of costs in such a short period of time has alerted the Special Inspector General’s office, the report says, because in unregulated state like Ohio, the Hardest Hit Fund in vulnerable to fraud. But Whitney told News 5 that fraud wasn’t a concern, instead new factors such as landscaping funds and household waste removal dumped up demolition costs.

According to the report, the Cuyahoga County Land Bank says the cost increase is more accurately at 11 percent, or $800.