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Cleveland Heights advocates urge preserving point-of-sale inspections and escrow requirements

2261432 · February 12, 2025
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Summary

Residents, housing advocates and city staff told the Housing & Building Committee they oppose removing the city's point-of-sale inspection and escrow rules, saying the measures protect buyers, stabilize neighborhoods and guard against investor-driven decline.

Cleveland Heights housing advocates told the City Council Housing and Building Committee on Feb. 11 that the city's long-standing point-of-sale inspection and escrow requirements should be preserved and, in some cases, strengthened rather than eliminated.

Mike Beyer, a longtime Cleveland Heights resident and housing professional who facilitated the presenters, told the committee the rules "are essential to preserving the quality, safety, and value of our housing stock." He described buying a deteriorated house in 2002 and relying on a seller-funded escrow of $25,000 to repair 37 code violations, saying, "The ordinance didn't make this purchase difficult, it made it possible." Beyer and other speakers said an Akron Cleveland Association of Realtors campaign to remove point-of-sale rules across the region is not tailored to Cleveland Heights' older housing stock and could harm modest-income buyers.

Housing advocates outlined why the ordinances matter to Cleveland Heights: they secure repair funds at transfer, give buyers reliable information about interior and exterior conditions, and provide leverage against out-of-area investors who buy distressed properties and defer needed work. Diana Woodbridge, former director of the Home Repair Resource Center, framed the rules in historical context, recounting how predatory lending and panic selling in the 1960s–2000s disproportionately harmed Black neighborhoods and undercut homeowners' equity. "It is essential that Cleveland Heights do everything in its power to ensure that properties are well maintained," Woodbridge said.

Other presenters offered data and program ideas. Frank Ford of the Fair Housing Center cited foreclosure and investor-purchase patterns that differ between Cleveland Heights and Lakewood, arguing those differences mean policy choices cannot be transplanted without harm. Tom (last name given in the record as Beyer/Meyer), a housing researcher, said, "The future of Cleveland Heights depends ... on the condition of its old residential real estate," and presented regional tax-assessment trends showing long-term value declines tied to deteriorating housing stock.

Speakers recommended specific changes and supports rather than repeal: maintain the escrow requirement for major code violations (the committee heard the city's 2001 amendment set escrow at 125% of estimated repair cost), consider more frequent inspections (suggestions included shortening exterior-inspection cycles from five to three years and rental inspections from three to two years), expand outreach and funding for down-payment assistance and repair programs, and design targeted enforcement against the most blighted investor-owned properties. Diana Woodbridge suggested allowing buyer-occupants to submit city-approved repair plans for some minor items in place of full escrow funding.

Council members and staff discussed adjacent programs and enforcement tools. Councilmember (and meeting chair) Jim Petrus noted council is not currently considering amendments to Chapter 13.29 but that the ordinance will likely be an election-season issue; a councilmember said she will introduce a resolution to keep the city's planned exterior-repair ARPA program focused on exterior work and neighborhood-visible improvements. City staff and presenters also discussed civil-ticketing and other enforcement options used in Cleveland, including provisions of the recent City of Cleveland "Residents First" overhaul that allow civil tickets for code violations and levy fines that can be placed on the property tax duplicate if unpaid.

No formal motions or votes on ordinance changes were taken at the Feb. 11 meeting. Committee discussion closed with agreement to review enforcement capacity, program design for the city's $2.5 million ARPA-funded exterior repair program, and options to strengthen targeted enforcement and outreach to first-time and low-income buyers.

The committee asked staff to return with additional information on staffing and enforcement capacity, and committee members indicated interest in a formal review of the point-of-sale ordinance and escrow application consistent with Chapter 13.29 and Section 1329.051(f) of the city's ordinance.