Ohio Supreme Court to Review Controversial Property Foreclosure Practices
In a case that could set a significant precedent in Ohio’s property tax enforcement, three former homeowners are challenging Cuyahoga County’s handling of property foreclosures. The Ohio Supreme Court has agreed to hear their lawsuit, raising questions about the county’s approach to seizing homes with unpaid tax bills.
Angelo Craig, Angela Taylor, and Abraham David are at the forefront of a class action lawsuit against the Cuyahoga County treasurer’s office. Their homes were seized through legal actions when they failed to pay property taxes, with debts of $620, $4,655, and $3,384, respectively. They assert that the county’s practice of taking homes without compensating for their surplus value is unconstitutional.
According to Ben Flowers, the plaintiffs’ attorney, “This practice of taking ‘surplus equity’ violates both the Takings Clause and the Excessive Fines Clause of the Ohio Constitution.” He highlights that this issue is not isolated, stating, “This unconstitutional (and unconscionable) practice is widespread in Ohio. And courts, including the Eighth District below, allow it to persist.”
Under current state law, counties can foreclose on properties with unpaid taxes, sell them at auction, and distribute any surplus proceeds. However, in these cases, the homes did not sell at auction, failing to meet the legal minimum sale prices. Consequently, the homeowners were left without any compensation for their property’s market value, which exceeded their tax debts.
Angelo Craig purchased his home for $5,500 in 2021, while the median sale price in the area was $155,000. Despite a fair market value of $45,000 in 2022-23, Craig owed $12,400 in taxes. Similarly, Angela Taylor’s property, valued at $90,000, was lost after she accrued $14,000 in unpaid taxes.
While the plaintiffs’ lawsuit was filed in June 2024, they have faced setbacks, losing in both trial court and at the Eighth District Court of Appeals. The Ohio Supreme Court’s decision to hear the case means that the timing of further arguments will soon be decided, potentially influencing property tax policies in an election year.
Jennifer Ciaccia, a spokesperson for Cuyahoga County, has refrained from commenting on the ongoing litigation or providing data on the county’s home forfeiture practices. The plaintiffs claim that “thousands” of homes have been seized under similar circumstances.
For more information, you can visit Signal Ohio, the original publisher of this story, in partnership with The Associated Press.
