Anderson Township opted out of a countywide low-interest home improvement loan program because officials there think it is illegal for townships to participate despite a Hamilton County prosecutor's opinion that it is legal.

        County commissioners are ready to kick off a program June 3 that will allow county homeowners to secure loans at three percentage points below the market rate.

        To qualify for the program, county residents must live in a jurisdiction that has agreed to participate in the program.

        So far, only Anderson Township has opted out. Another five communities are still undecided. The other 43 communities in the county — representing more than 90 percent of the population — are participating.

        Anderson Township Attorney Frederick Kiel wrote in February that Ohio law allows municipal corporations, but not townships, to perform functions on behalf of a county.

        But Hamilton County Prosecutor Mike Allen has a different view. In a letter to county commissioners, Mr. Allen said that townships are prohibited from establishing such a program but can participate in one established by a county or a city.

        “The township is not establishing a linked deposit program, but merely participating in the program established by Hamilton County,” Mr. Allen's letter says. “Therefore, the agreement may be entered into by the various townships.”

        Township Trustee Russ Jackson said that, legalities aside, his board has other issues with the program. Mr. Jackson said his board is worried about how much it would cost the township to live up to its obligations under the program, and the board is philosophically opposed to it.

        Township personnel are required to inspect each property applying for a loan before and after the work is done.

        “We have no idea how much it will cost,” Mr. Jackson said. “And I personally feel very strongly that we've taken the right position in this matter.

        “At a time when state finances are in a catastrophic position and county revenues are short, we think it's very inappropriate to come along with an additional expense of this program.”

        Commissioner Todd Portune, the architect of the program, said there is no additional education or training required for township personnel. They are merely required to eyeball the property and confirm that work was indeed done.

        “All that is required, in essence, is a drive-by inspection,” Mr. Portune said.

        Delhi Township Trustee Ann Langdon agrees with both men. Ms. Langdon said she is philosophically opposed to the program, but said it will not cost her township any money to inspect the properties.

        “I wish the county wasn't doing this program because it amounts to welfare,” Ms. Langdon said. “But since they are, I'm not going to deny residents in my township the opportunity to get in on it.”

        The Home Improvement Program is patterned after one in Cuyahoga County, which started in 1999.

        Helen Knipe Smith, director of the program there, said more than $45 million in loans have been applied for in that time, and nearly 4,000 loans have been approved.

        She called the program “highly successful,” but said it was too early to know how much property values have been affected by the program.

        “Every mayor in the county is crazy about us,” Ms. Smith said. “Because it allows them to do strong code enforcement, and they can hand someone a brochure if they don't have the funds” to get the home to code.

        Hamilton County will have $28 million in loans available to start the program. Loans of up to $50,000 for five years are available to residents with property values of under $300,000.

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