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Nuisance Abatement How Camp Washington has Used the Nuisance Abatement Statue to Fight Blight, Reclaim Housing, and, Re-Populate Our Neighborhood

Camp Washington Community Board, Inc. Joseph T. Gorman, Executive Director 2951 Sidney Avenue Cincinnati, OH 45225 (513) 542-1637 A people-profit organization since 1975

ORC 3767.41 Ohio Revised Code  » Title [37] XXXVII HEALTH - SAFETY - MORALS  » Chapter 3767: NUISANCES 3767.41 Buildings found to be public nuisance.

Ultimate Goal Get property out of bad ownership and into good ownership hands Cannot be ownership Cannot be making a profit Why properties are in bad shape anyway – no economic sense to fix it up (i.e., liens, mortgages, City fines, etc.)

What Buildings Can Be Pursued? Who Has Standing? The City Property owners within 500 feet Nonprofit organizations which has as their mission to improve housing What Buildings Can Be Pursued? Residential buildings – SF or multi-family (but, not owner occupant of two-family or less) Mixed use buildings with commercial space on the first floor Not commercial or industrial

Lawsuit Filed in Common Pleas Court Title search – lien and mortgage issues File the lawsuit, talk later Asking the judge to declare building a public nuisance Asking the judge to appoint a receiver to abate the nuisance Be flexible – “things must just unfold” The Receiver Can be different from the entity filing the lawsuit (1373 Avon Place) Must present a plan to abate nuisance, including demolition is rehab is not an option.

Abating the Nuisance Sample Budget Doing the work Filing the lien – what’s cool about this is that receivership lien is in first position, even before property taxes. This gives you serious power to deal. Sample Budget Roof 10,000 Windows 6,000 Tuck-pointing 2,000 Landscaping – weed removal 3,000 Administrative fee 4,000 Total 25,000

Wrapping it Up Camp Facts Disposing of Property Finding a buyer – court approved sale Foreclosure of the lien – Sheriff’s Sale Wrapping it Up Deed of Receiver Report to the Court of final disposition Camp Facts We have filed 19 lawsuits We have received 9 properties 10 properties were abated by owners we sued

City Considers fix-up Strategy Cincinnati Enquirer -2/19/2004 “If Camp Washington can do this by raising money from bingo games, we as a city need to figure out how to make it work.” - David Pepper

Strategies for Revitalizing Blighted Areas Edward Cunningham, Department of Buildings & Inspection (Edward.Cunningham@Cincinnati-oh.gov) Jessica Powell, City Law Department (Jessica.Powell@Cincinnati-oh.gov)

City of Cincinnati – Overview of “the Problem” The City of Cincinnati has 2,200 vacant problem buildings. The greatest challenge is finding the funding to repair or demolish the many abandoned buildings that are beyond repair. Laws that are founded on the presumption that “all land has value” can come up short in light of the conditions created by the housing and foreclosure crisis. The private market does not take care of these abandoned properties and they become a burden to local government.

Code Enforcement Mission: "Elimination of blight and building safety hazards and promotion of building repair and renovation through education and enforcement of the property maintenance codes to protect the public health, safety and quality of life."

Essential Enforcement Program Elements Good inspectors & leadership Good code enforcement records Coordinated code enforcement departments A toolbox of enforcement / compliance options Abatement funds Law civil & criminal actions Land bank collaboration Community partners

Reactive Code Enforcement Problem – The City’s code enforcement is (largely) reactive. By the time the City cites a blighted property or utilizes other tools, the costs associated with repair have skyrocketed, making demolition the “only” option

Reactive Code Enforcement

Location, location, location market forces work differently in every neighborhood, and vary from block to block A tale of 2 cities: two long-time vacant / blighted properties Which house was demolished? Which house was rehabbed & resold for >$750,000?

Department of Buildings & Inspections Property Maintenance Code Enforcement The Property Maintenance Division is charged with eliminating blight and building safety hazards and promotes building repair and renovation through education and enforcement to protect the public health, safety and quality of life. PMCE received about 6,000 requests for service each year. These requests include tenant complaints about poor housing conditions and neighbor complaints of blight on commercial and residential buildings and premises.

Property Maintenance Code Enforcement PROGRAMS / ENFORCEMENT ORDINANCES Vacated Building Maintenance License (CMC 1101-61 et. Seq.) Requires owners of properties that have been vacated to attain a VBML maintenance license & comply with minimal maintenance requirements Vacant Foreclosed Property Registration (CMC Chapter 1123) Requires mortgagee banks to register residential properties that become vacant during the foreclosure process so that the City has a bank point-of-contact Enacted in height of foreclosure crisis when residents & city officials could not find right person to contact for maintenance or other problems for properties in foreclosure

Property Maintenance Code Enforcement PROCESS INTAKE- Complaint or Proactive Concentrate Code Program INSPECTION- Inspector inspects property noting all violations. ORDER ISSUANCE- An order to correct the violations by a specified time issued to owner. PRE-PROSECUTION- An informal hearing for the owner to show cause not to prosecute. LEGAL ACTION CRIMINAL PROSECUTION- Criminal M-1 6 mo. Jail and/or $1000. Or Civil $750.00 fine doubles in 7 days. CIVIL ACTION – Nuisance / receivership action / fines SUMMARY ABATEMENT- The City enters on the property and performs the abatement work. VACATED BUILDING MAINTENANCE- Requires that vacated buildings be maintained and registered.

Department of Public Service - Weed & Litter Enforcement Weed & litter ordinance (CMC Chapters 713 and 741) OLD owner cited if litter or grass 10+ inches If problem not abated upon re-inspection, property referred for abatement at city cost no new case or citation created by City until abatement completed (avg. wait 6-9 months!) NEW: Owner cited if weeds or grass 10+ inches If problem not abated upon re-inspection, property deemed “abandoned”, and referred for regular abatement at city cost Case stays open – regular inspection schedule in which citations are reissued if problems persist; for high grass, threshold lowered to 6+ inches (recognizing that regular maintenance – and not waiting for grass to grow to 10+ inches is cheaper for city)

Coordinating Code Enforcement Efforts within your Jurisdiction code enforcement at properties is not limited to just one department / division in the City, coordinated code efforts include Buildings, Division of Property Maintenance Code Enforcement Health Department of Public Services, Weed & Litter control unit Fire Department Police

Coordinating Code Enforcement Efforts within your Jurisdiction cincycodeneforcement.com – online records

Vacant (& Occupied) Property Remedies Statutory Nuisance / Receiverships (ORC 3767.41) Criminal prosecution Tax foreclosure (regular or expedited) City foreclosure on judgments &/or abatement costs Strong market forces &/or subsidies

Public Nuisance Receivership Actions – ORC 3767.41 Action filed in Common Pleas court to have a receiver appointed to abate the nuisance conditions City considers filing when other avenues for compliance have been exhausted Receiver motivation = costs for repairs become a super-priority lien on property Challenge = Not always economically feasible if cost of repairs > value of property Bigger challenge = Hamilton County does not have a housing court 

Public Nuisance Receivership Actions – ORC 3767.41 Standing to File Municipality or township Neighbors within 500 feet of the property Tenants Nonprofit groups who have the goal of improving housing conditions Not just for vacant buildings

Public Nuisance Receivership Actions – ORC 3767.41 Eligible Buildings Residential Buildings May have commercial space on the 1st floor Cannot be owner occupied with less than 3 units

Public Nuisance Receivership Actions – ORC 3767.41 Receiver Duties Estimate the cost to abate the nuisance Estimate income and expenses for the building after abatement Provide terms conditions & availability of financing of repairs If repair is not feasible, estimate cost of demolition

Public Nuisance Receivership Actions – ORC 3767.41 Powers of Receiver Take possession of the building Lease the building and collect rents Pay operating expenses Remove or dispose of personal property in the building’ Borrow money against the building’ Give custody & opportunity to abate the nuisance to the owner or other interested parties

Public Nuisance Receivership Actions – ORC 3767.41 Miscellaneous: Sometimes subsidizing your receiver is necessary (and worth it) Cost of demo = $12K/avg

Receivership A tale of 2 cities: two long-time vacant / blighted properties Which house was demolished? Which house was rehabbed & resold for >$750,000?

Criminal prosecution Used for more serious violations involving safety issues, willful disregard of the code, and/or longstanding violations. Failure to comply with orders under Cincinnati Municipal Code Sec. 1101-71 is a first degree misdemeanor punishable by 6 months in jail and/or a $1000.00 fine. CMC Chapter 1601 – quality of life provisions Challenge = corporate and LLC owners cannot be tried in abstentia (State of Ohio v. TC Funding Group, 1st Dist. No. C-090191) Benefit = can try agents of LLC’s as “person-in-control”

Tax Foreclosure (regular or expedited) Work with HCLRC (Landbank) and/or Treasurer Tax foreclosure is a good tool for getting control of Encumbered bank walk away properties Defunct LLC’s Revised Code Chapters 323 and 5721 Landbank works with County Prosecutor & Treasurer to use Expedited BOR process (faster than traditional tax foreclosure)

City Foreclosure Action under RC 715.261 to foreclose on barricade / demolition liens (eff. November 2014 ) Foreclosure on other judgments (RC Chapter 2744)

Voluntary Compliance Strategies Provide owners resources (if possible) Encourage donation to landbank (they have $ to demolish single- family and 4-family or less in certain neighborhoods) Incentivize good owners by allowing for waiver of fees if owner submits plans to stabilize vacant properties (see CMC 1101-81)

Voluntary Compliance Strategies A difficult case… Elderly widow -homeowner Confined to a Wheelchair Lived in the house over 20 years Rear section of house collapsing

Voluntary Compliance Strategies Collaboration Building Value – Deconstruction/Salvage People Working Cooperatively – Non-Profit Home Repair Social Services Community Development Corporations Department of Community Development Many more…..

Final Thoughts Other regulatory ideas for proactive code enforcement rental inspection programs façade inspection fire escape inspection Tax lien certificates sold on the private market can wreak havoc on properties Dealing with LLC’s is tough They represent the aftermath of the foreclosure crisis Don’t maintain Hard to catch Can be predatory in nature: Land sale K’s & lease options contracts

Essential Partnerships CDC’s Legal Aid Society Tenants Community Councils Treasurer’s Office Land Bank Local policy groups Elected representatives Others

QUESTIONS?