Blog

  

The Impact of Cleveland’s “Residents First” Legislation

On February 6, 2024, the City of Cleveland passed a new group of local housing laws called “Residents First”. The purpose of this legislation is to combat the effects of out-of-state property owners neglecting property in the City of Cleveland. However, all property owners, whether local or out-of-state, are subject to the requirements set forth in this legislation. Over the past year and a half since this legislation has been passed, we have seen numerous property owners get tripped up by these new requirements. Below is a summary of these new requirements that all property owners in the City of Cleveland should be aware of.

Rental Registration: Residential rental properties are required to have a Rental Registration Certificate. The following requirements have been added:

  • Property owners who reside outside of Cuyahoga County must designate a local agent in charge who resides in Cuyahoga County. This local agent will be held personally liable for any violations on the property.
  • Lead Safe Certification is required.
  • All outstanding fees or bills owed to the City must be paid in full.
  • Any open code violations must be corrected.
  • Property taxes must be current.
  • Properties with more than four rental units must also submit a current statement from utility providers evidencing that the account is current, and the HVAC system is required to be inspected annually.

Vacant Building Registry: All vacant buildings must be added to the Vacant Building Registry and updated annually unless the building is no longer vacant. Pre-transfer inspections are now required for all vacant properties.

  • Residential Property: if the pre-transfer inspection reveals violations, the buyer has six months to correct them.
  • Commercial Property: A cash bond is required if the property has code violations, board-ups, or complaints within the past three years. For property under 10,000 sq. ft., the bond is $5,000, and for property over 10,000 sq. ft., the bond is $15,000.

Civil Tickets: In addition to criminal penalties, the City can now issue civil tickets for building and housing violations. These tickets:

  • Can be up to $200 per infraction.
  • May be assessed to the property tax duplicate if unpaid.
  • Can be appealed to the Director of Building and Housing and then to the Board of Building Standards.

Certificate of Disclosure: All property transfers must now include a condition disclosure and zoning information to buyers.

Parking garages: Parking garages are now required to be inspected every five years.

 

The City of Cleveland has become increasingly proactive in enforcing building and housing violations. If you receive a violation notice, it’s essential to respond promptly to prevent it from escalating into a criminal matter.

Please contact Mansour Gavin’s Real Estate group if you receive a violation notice or have questions about these or other real estate matters. Our team can guide you through the appeal process and help bring your property into compliance.

 

 

Subscribe to Email Updates