Justia Landlord - Tenant Opinion Summaries

Articles Posted in Supreme Court of Ohio
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The Supreme Court affirmed the judgment of the court of appeals denying Appellant's petition for a writ of prohibition to bar East Cleveland Municipal Court Judge William Dawson from continuing to preside over Euclid Lake Properties, LLC. v. Tri Eagle Fuels, LLC, East Cleveland M.C. case No. 17CVG01000, holding that jurisdiction was not patently and unambiguously lacking in the municipal court. Lessee signed a commercial lease to rent certain property from Lessor for fifteen years. After Lessor alleged that Lessee was in default of the lease and served Lessee with a notice to vacate the premises Lessee filed suit alleging that Lessor, in fact, had breached the lease. Before Lessor filed an answer it filed a forcible-entry-and-detainer (FE&D) action against Lessee. The case was assigned to Judge Dawson. Lessee filed an original action for a writ of prohibition alleging that Judge Dawson lacked jurisdiction to proceed in the municipal court case based on the jurisdictional priority rule. The court of appeals denied the writ of prohibition. The Supreme Court affirmed, holding that Judge Dawson was not deprived of jurisdiction over the FE&D action. View "State ex rel. Tri Eagle Fuels, LLC v. Dawson" on Justia Law

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Notestine, a nonprofit corporation with 26 U.S.C. 501(c)(3) status as a charitable institution, owns the 11-unit residential rental property developed as low-income housing under 12 U.S.C. 1701q. Construction costs were $1.5 million. The federal capital advance was $1.3 million. The “project rental assistance” contract requires tenants to be at least 62 years old and have income under 50 percent of the area median. Rent is tied to tenant income at $407 per month, including utilities, with any overage payable to HUD. Tenants pay up to 30 percent of their adjusted gross income on rent, with HUD subsidizing any difference. Capital Advance Program Use and Regulatory Agreements were recorded on title, in effect at least 40 years from 2013, unless released by HUD. An auditor valued the property at $811,120 for 2013, a Logan County reappraisal year. Notestine sought a reduction, arguing that the building's value was $165,000, based on actual rent and expenses. The Board of Tax Appeals adopted the opinion of Notestine’s appraiser, who valued the property at $75,000. The Supreme Court of Ohio affirmed. Although market rents and expenses constitute a “rule” when valuing low-income government housing generally, that rule is presumptive, not conclusive. In this case, the rents are minimal, and federal subsidization is strictly controlled by HUD-imposed restrictions on the accumulation of surpluses. There is no evidence that any adjustment from contract rent to market rent would eliminate the “affirmative value” of government subsidies. View "Notestine Manor, Inc. v. Logan County Board of Revision" on Justia Law