(A) Phase one "Application"
Applications reviewed by the department:
Within
within ninety
days of the close of the application period,
or another
period of time as specified by the director, submission of the highest scoring
applications by the local sponsor, and after the application
ranking system evaluation is completed, the
department shall determine the top scoring applications, in descending order,
for each local sponsor and the top scoring
applications shall proceed to phase two of the process.
(2) Applications reviewed by
certified local sponsors: Within ninety days of the close of the application
period, and after the application ranking system evaluation is completed, top
scoring applications shall selected by the certified local sponsor and
forwarded to the department for phase two.
(B) Phase two
"
" Review
""
Within ninety days of the receipt of applications selected by
the department and certified local sponsors, or another
period of time as specified by the director,
the farmland preservation advisory board shall review the
selected applications as provided by the director and the certified local
sponsors, and shall ensure that the applications are given a score according to
the application ranking system within the ranges as prescribed by these rules.
Once
and once the applications are found
compliant, the farmland preservation advisory board shall then ensure that the
applications as submitted are in compliance with the director's
director's
guidelines as provided for the current funding round. The farmland preservation
advisory board shall then advise the director of those applications which are
compliant with the ranking system and within the director's
director's
guidelines for that funding round. Upon such selection, the director
and/or certified local sponsors shall
notify the landowners their
that the
application has been selected to proceed to phase three of the process.
If additional time is required to notify the
landowner(s) of their selection to proceed to phase three, the local sponsor
shall request a time extension from the director. The granting of such
extension of time shall be in the director's sole discretion.
(C) Phase three "Contingency"
This phase confirms that the application property has been
approved for grant funding pending completion of a title search
or letter of clear title
as required herein and review of any
contingencies, such as legal boundary, review, appraisal, and signing of the purchase
agreement. The department will review the documentation for compliance with the
program requirements. The application may proceed if the department determines
that the documentation is satisfactory.
(1) The following documents must be obtained
and conditions met at the landowner's sole expense:
(a) A current commercial title search performed by an authorized
title insurance agency for the entire application property
which demonstrates the landowner holds marketable
title, unless exempted by the director;
(b) A title insurance commitment naming the
department
director as an insured party for a sum equal to the amount set forth in the purchase
agreement;
(c) A property
survey, if required in the sole discretion of the director; and
(d) Interests that limit the title of a
property, such as mortgages, leases,
encumbrances, liens, restrictions, or legal or
equitable interests, must be cleared or subordinated,
at or prior to closing, unless exempted by the
director.
If the holder of a lien/mortgage on
the property will not sign the subordination agreement prior to the signing of
the agricultural easement, the landowner must provide the office of farmland
preservation a commitment letter from the lien/mortgage holder which states
their obligations to subordinate their interests to the department once at or
prior to landowner receiving any funds from the department.
(2) If the title
search, required under paragraph (C)(1)(a) of this rule, reveals other third
party interests, not previously known, that may threaten the intent to keeping
the land in agriculture if exercised, a statement of subordination to the terms
of the agricultural easement shall be obtained from the third party by the
landowner, before proceeding to rule
901-2-08 of the Administrative
Code.
Otherwise, a statement of no unsubordinated
third party interests shall be included in the results of the title
search.
(3) At the
director's discretion, a comparable land appraisal may be required. The party
responsible for incurring the cost of the comparable land appraisal will be
determined by the director prior to phase three "Purchase
Agreement/Contingency" of the application period.
(4)
The applicant
completing a
A present condition report
completed by the local sponsor using a template
provided by the director as specified in rule
901-2-08 of the Administrative
Code.
(5) Such other information as
is necessary and useful to determine that the property is appropriate for
inclusion, as requested by the director.
(6) Costs incurred by the department or the
local sponsor for the above items may be paid directly to the department or the
local sponsor, or may be reimbursed to the department or the local sponsor at
closing. The department will review the documentation for compliance with the
program requirements. The application may proceed if the department determines
that the documentation is satisfactory.
(D) Phase four
: "Purchase Agreement"
Once phase three is completed and the department has
determined the property is in compliance with the program requirements a
purchase agreement will be drafted and sent to the landowner and/or the local
sponsor. Once the department has received a signed purchase agreement from the
landowner, the application shall proceed to phase five. The purchase agreement
shall include but not be limited to:
(1) The total amount of the offer per acre,
and for the entire application property;
(2) A statement that the grantor has no
actual knowledge of hazardous substances or wastes, and that the grantee is
held harmless from any and all liability or expense arising from violation of
environmental laws and regulations;
(3) Any other provisions the director deems
necessary for the landowner to be aware of prior to signing a deed of
agricultural easement, and permitted pursuant to section
901.21 or
901.22 or division (D)(2) of
section
5301.691 of the Revised Code.
(a) Within thirty days of receipt of the
purchase agreement from the director, the landowner shall sign and return the
document to the director, or advise the director, in writing, of their
rejection of the offer. Failure of the applicant or landowner to act within
thirty days of receipt of the purchase agreement shall constitute a rejection
of the director's offer to purchase.
(b) If the purchase agreement is signed by
all parties, then the application shall proceed to phase five.
(E) Phase five
"Execution of Deed of Easement"
(1) Except for
the purposes of paragraph (E)(2) of this rule, upon receipt of a signed
purchase agreement, the landowner shall convey
execute a deed
of agricultural easement conveying an agricultural
easement to the state of Ohio
where
director. Concurrently, the
department shall tender a lump sum payment to a title insurance company, or the local sponsor, who will obtain an
a title insurance
company or other agent, to act as an escrow agent for distribution to the
landowner and/or the landowner's assignee(s)
assignee
in the proportions directed by the landowner.
(2) Upon receipt of a signed purchase
agreement, the landowner shall convey a deed of agricultural easement to the
state of Ohio where the department shall compensate the landowner through an
installment purchase agreement. Such agreement must be pre-approved by the
director and shall include:
(a) Any
installment payment terms;
(b)
Dates and amounts of payments and to whom payable, including without limitation
any assignee(s) of landowner; and,
(c)
Interest rate on the outstanding balance.
Notes
Ohio Admin. Code
901-2-06
Effective:
9/26/2024
Five Year Review (FYR) Dates:
7/11/2024 and
09/26/2029
Promulgated
Under: 119.03
Statutory
Authority: 901.22
Rule
Amplifies: 901.21,
901.22,
901.23
Prior
Effective Dates: 02/01/2002, 02/21/2005, 03/21/2006, 10/28/2010, 01/07/2013,
02/06/2014, 03/21/2016
