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.