Receivership
RECEIVERSHIPS
OF NUISANCE
PROPERTIES
(OHIO REVISED
CODE SECTION
3767.41)
Receivership
is a method of
dealing with
nuisance
properties when
the owner
refuses to abate
the nuisance.
Toledo Municipal
Court or the
Lucas County
Court of Common
Pleas may
appoint the City
of Toledo or a
non-profit
corporation such
as a Community
Development
Corporation
(CDC) as the
receiver of the
property to
correct the
housing code
violations and
manage the
property.
The
receivership
process begins
with filing "A
Petition to
Abate a Public
Nuisance" under
O.R.C. §3767.41.
After notice
is given to
interested
parties, a
hearing is
convened to
determine
whether the
property is a
public nuisance.
Evidence must
be shown at the
hearing that:
- the
building is
residential,
- unsafe,
or
-
dangerous,
or
-
otherwise,
in violation
of the
City's
ordinances.
If the Court
finds that the
property is a
public nuisance,
the owner is
ordered to abate
the nuisance.
WHO MAY BRING
A NUISANCE
ABATEMENT
ACTION?
Any of the
following:
- A
neighborhood
landowner
who lives
within 500
feet of the
subject
building
- The
municipal
corporation
where the
property is
located
- A
non-profit
corporation
that is duly
organized
and has as
one of its
goals the
improvement
of housing
conditions
in the
county or
municipal
corporation
in which the
building
involved is
located
- A tenant
of the
building
alleged a
nuisance
SIX ELEMENTS
FOR RECEIVERSHIP
TO WORK
1. If it is
control and
eventual
ownership the
community group
is seeking, it
must select the
buildings and
owners
accordingly. In
other words,
groups should
look for
buildings that
need basic
repairs, but are
not wholly
deteriorated.
The owners
should not be
likely to redeem
the property
once the
receivership is
over.
2. There must
be some person
or entity
capable of
competently
being a property
receiver with
the requisite
accounting,
legal,
repair/rehab and
management
skills and
resources
available.
3. As the
repairs are
likely to cost
more than the
rents can
produce, a
beginning
capital fund is
helpful.
4.
Cooperation from
the City
officials is
helpful, and
might even be
essential.
5. The
Court's
cooperation is
essential, and
the Judges, as
well as City
officials,
should be
involved in
planning how the
process will be
done and what
paperwork is
needed.
6. Legal
counsel is
essential to
research the law
and draft the
model documents
and Court
orders. Once the
procedures are
established and
the Judges
understand those
procedures, the
process should
not be that
difficult nor
time-consuming.
In a recent
national study
it was found
that of the 13
cities with
receivership
programs, the
typical time for
a property to be
placed in
receivership was
about four
weeks.
Click here for a
PDF of the Ohio
Receivership
Statute
this program is
free to download