Parma City has mandated financial entities to notify the city authorities when they foreclose on any property. To this purpose an ordinance was passed by the City Council on Monday 4th April. The foreclosing banks would also have to pay a fee of $100 for each one or two-family units and $300 for the larger residences or commercial properties.

The clause about notifying foreclosure would allow the city authorities to know which of the houses would be vacant said the Assistant Building Commissioner, Don Graves. Tim Bobeck, the Law Director said it would also provide the city with the much needed contact addresses of those who were accountable for the maintenance of the foreclosed and or vacant units. Dobeck commented that this was of vital importance because often the city finds itself left with the responsibility of maintaining the foreclosed and vacant estates.

Debbie Lime, councilwoman, has sponsored the legislation. She said that the maintenance responsibilities like trimming lawns can become very expensive. Lime said, “This ordinance would give the city some teeth over some financial entities that are not doing it. Banks are supposed to hire companies to maintain these properties but sometimes it’s not happening”. She explained that this leads to bursting of water lines which in turn brings down the price of the property. Over and above this the houses are eyesores and blight the neighbourhood.

On 4th April the ordinance was placed by the council for its first reading. The legislation has been referred to the Finance Committee.

According to the ordinance any individual or institution that initiates foreclosures in court would have to notify the city of it within ten days of filing. If the property at that time is unoccupied or becomes empty after the filing the plaintiff must inform the city as to who will be accountable for its maintenance.

Any entity violating these conditions would be charged for misdemeanor of the first-degree. It could lead to punishment of six months imprisonment and or a monetary fine. Dobeck further informed that this was not the first instance of enacting such a foreclosure-related ordinance in Parma City. A similar one had been passed by the council in 2005 December. But it was repealed by the council in 2006 August. The repeal was asked for by Cuyahoga County because of the fee it had to give to the city for each foreclosure related to defaulting property tax that it filed. This time the ordinance would keep out of its purview foreclosures relating to property tax.