Cleveland v. Hero Homes JV2, L.L.C.

2025 Ohio 4585
CourtOhio Court of Appeals
DecidedOctober 2, 2025
Docket114561 & 114800
StatusPublished

This text of 2025 Ohio 4585 (Cleveland v. Hero Homes JV2, L.L.C.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cleveland v. Hero Homes JV2, L.L.C., 2025 Ohio 4585 (Ohio Ct. App. 2025).

Opinion

[Cite as Cleveland v. Hero Homes JV2, L.L.C., 2025-Ohio-4585.]

COURT OF APPEALS OF OHIO

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

CITY OF CLEVELAND, :

Plaintiff-Appellee, : Nos. 114561 and 114800 v. :

HERO HOMES JV2 LLC, :

Defendant-Appellant. :

JOURNAL ENTRY AND OPINION

JUDGMENT: AFFIRMED IN PART; VACATED IN PART; MODIFIED IN PART; AND REMANDED RELEASED AND JOURNALIZED: October 2, 2025

Criminal Appeal from the Cleveland Municipal Court Housing Division Case No. 2024-CRB-001895

Appearances:

Mark D. Griffin, Cleveland Director of Law, and Michael A. Glazer, Assistant Director of Law, for appellee.

Powers Friedman Linn, PLL, Robert G. Friedman, Thomas P. Owen, and Rachel E. Cohen, for appellant.

KATHLEEN ANN KEOUGH, J.:

In this consolidated appeal, defendant-appellant Hero Homes JV2

LLC (“Hero Homes”) appeals its convictions, sentence, and subsequent finding that

it violated community control. Finding some merit to the appeal, this court affirms the housing court’s finding of guilt, but modifies the sentence by vacating the period

of community control and reducing the total fine to $100.

I. Procedural History and Factual Background

On March 14, 2024, the City of Cleveland (“the City”) filed a 25-count

complaint against Hero Homes, alleging that Hero Homes violated Cleveland

Cod.Ord. (“CCO”) 367.131 by purchasing real property located in Cleveland without

filing articles of incorporation or organization and identifying a statutory agent or

without being licensed by the Ohio Secretary of State and identifying a statutory

agent in accordance with Ohio law. Even though Hero Homes only committed one

violation, CCO 367.131 permits the violation to apply to each property purchased

during the noncompliance period. Accordingly, because Hero Homes purchased 25

properties during a bulk-sale real estate transaction on September 25, 2023, the City

charged Hero Homes with 25 separate violations, each identifying the specific

property associated with each specific count.

As of March 27, 2024, and prior to being served with the complaint,

Hero Homes filed the requisite documentation with the Ohio Secretary of State and

appointed a statutory agent, thus complying with CCO 367.131.

On September 11, 2024, Hero Homes appeared at a change-of-plea

hearing. The City explained to the housing court that the failure to register with the

secretary of state was not intentional but a result of assurances by the real estate

broker facilitating the bulk sale that all laws were being followed. Accordingly, the

City and Hero Homes entered into a plea agreement whereby Hero Homes would plead no contest to one count of the complaint, with the City dismissing the

remaining counts. The housing court rejected the plea deal, stating, “I don’t want to

go into the details — I’m going to — I can tell you, the Court is not willing to adhere

to or allow a plea of [one] count, 25 counts when there’s 25 separate properties.”

(Sept. 11, 2024 hearing, tr. 7.) Following a brief recess, the City advised the court

that Hero Homes agreed to plead no contest to four counts of the complaint — the

housing court allowed this plea agreement.

During the plea colloquy, both parties advised the court that as of

March 27, 2024, Hero Homes was in compliance with CCO 367.131. Nevertheless,

the housing court continued the matter for sentencing and informed Hero Homes

that the case “is going to definitely be assigned to my compliance officer or

compliance officer in training, but it’s going to the chief.” (Sept. 11, 2024 hearing,

tr. 16.) The court placed no restrictions on Hero Homes pending sentencing other

than to cooperate with the compliance officer.

On October 17, 2024, Hero Homes appeared for sentencing. The

housing court took testimony from a housing court specialist who offered

information about the four properties associated with the four counts of the

complaint to which Hero Homes pleaded no contest. The information included the

type of property, its condition, whether it was vacant, whether the taxes were paid,

whether any open violation notices, permits, or certificates were on file, and whether

a rental registration was obtained. The specialist confirmed that Hero Homes

registered with the secretary of state on March 27, 2024. The specialist then reported the same information about all the properties Hero Homes owned,

testifying that it conducted site visits and noted the condition of those properties.

Following the presentation of information by all parties, the housing

court announced its sentence and placed Hero Homes on active community control

for two years, expiring October 17, 2026, and imposed a $20,000 fine that it stayed

pending compliance with the court’s community-control order. The court then

discussed each property owned by Hero Homes, identified the concerns Hero

Homes needed to address, and ordered cooperation with the housing specialist and

compliance with all laws, and “verbally” prohibited any transfer or sale of real

property without permission by the court.

The housing court reduced its sentence to writing, setting forth at

least 20 enumerated community-control conditions involving multiple properties

owned by Hero Homes, including its “verbal” order to not sell or transfer any

property without court approval. Although the court included a blanket order to

follow all community-control conditions set forth in the Revised Code and the

court’s local rules, none of the community-control conditions pertained to the

registration violation to which Hero Homes pleaded no contest and was found

guilty. The court scheduled a status conference for January 2025.

On November 15, 2024, Hero Homes appealed its convictions and

sentence and requested a stay pending appeal with the housing court. In a written

decision denying Hero Homes’ request for a stay, the housing court also imposed

additional conditions against Hero Homes. On January 2, 2025, Hero Homes requested a stay from this court. On January 13, 2025, while the motion was

pending, the housing court conducted a status hearing. During the hearing, the

court found Hero Homes “guilty and in violation of its community control

sanctions,” and ordered Hero Homes to pay a $5,000 fine, with the remaining

$15,000 stayed. On January 26, 2025, this court granted Hero Homes’ motion to

stay pending appeal.

II. The Appeal

Hero Homes now appeals, raising five assignments of error, which

this court will address out of order and together where appropriate.

A. Finding of Guilt Following a No Contest Plea

In its first assignment of error, Hero Homes contends that the trial

court erred by finding it guilty after the no contest plea because the City offered an

insufficient explanation of circumstances. Specifically, it contends that the City did

not set forth that Hero Homes acted with the requisite level of culpability, i.e.,

recklessness, when it failed to register with the secretary of state and name a valid

statutory agent. We disagree.

The mental state of the offender is a part of every criminal offense in

Ohio except for those plainly imposing strict liability. R.C. 2901.21(A)(2) requires

that, to be found guilty of a criminal offense, a person must have “the requisite

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Cite This Page — Counsel Stack

Bluebook (online)
2025 Ohio 4585, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cleveland-v-hero-homes-jv2-llc-ohioctapp-2025.