Rule 6 Rent Escrow

Rent Escrow

(A) Any rent deposit pursuant to ORC §1923 ORC §5321 shall be paid to the Clerk in cash, check, money order, or any accepted credit or debit card. All tenants depositing rent into escrow shall provide the name and address of both the tenant and the landlord. If the landlord has failed to disclose his name or address to the tenant as required under ORC §5321.18, the tenant’s failure to provide the landlord’s name or address shall not be a bar to the rent escrow program.

(B) After Rent Escrow Is Filed:

1. The Toledo Municipal Court Civil Clerk’s Office gives notice of rent escrow to the landlord; all cases shall be referred to the Citizens Dispute Settlement Program (CDSP) for the purpose of providing the landlord and tenant an opportunity to resolve the dispute (ORC §5321.08; §3733.121).

2. The tenant continues to deposit rent until an agreement of parties, further order of the court, or until tenant moves from dwelling unit.

3. CDSP and the Housing Court magistrate screen the cases to determine whether the case is appropriate for mediation.

4. If CDSP deems a case appropriate for mediation, participation in the program is mandatory for all parties.

5. If CDSP determines a case is not appropriate for mediation, the Clerk will schedule the case on the Housing Court docket. The Clerk will notify the landlord and tenant of the hearing date.

(C) Cases Diverted To CDSP:

1. The first mediation session shall be set within 2-3 weeks after referral to CDSP.

2. The case remains with CDSP until successful conclusion or mediation is no longer appropriate.

3. At the conclusion of the case, the mediated contract setting out rights and obligations of parties and effecting deposit of rent in escrow is filed by CDSP with the Civil Clerk’s Office.

4. If the case is not resolved through mediation, CDSP transfers the case back to the Civil Clerk’s Office for referral to the Housing Court magistrate’s docket; the Court Services Office notifies the landlord and tenant of the hearing date.

5. The goal of CDSP is to assist parties in reaching a mutually satisfactory resolution.

(D) Cases Heard On The Housing Magistrate’s Docket:

1. The initial hearing will be set 2-3 weeks after the case is referred to the Housing Court magistrate’s docket, at 2:00 p.m., Monday, Tuesday, Thursday, or Friday.

2. At the initial hearing, the tenant shall establish compliance with ORC §5321.07 and must prove that:

   1. Reasonable notice was given to the landlord thirty (30) days prior to filing, or that an emergency situation exists;

   2. The tenant has reasonable grounds to believe the landlord violated a statutory or contractual duty which materially affects health and safety, and the condition remains uncorrected; and

   3. The tenant was current in rent before filing the rent escrow application.

3. If the tenant fails to satisfy the burden of proof set forth in Rule 6(C)(2) above, the magistrate shall proceed in accordance with ORC §5321.09(c) to have the rent less one percent (1%) costs released to the landlord.

4. The purpose of the initial hearing shall be solely to verify the tenant’s factual allegations which give rise to the application for rent escrow and the issues which may be raised at this hearing shall be limited to those set forth in Rule 6(C)(2) above.

5. If the tenant satisfies the burden of proof set forth in Rule 6(C)(2) above, the magistrate may request a housing specialist inspect the premises, to file a report of the existence of code violation, and to recommend corrective actions, if necessary. The magistrate may make such other orders as appropriate, may set the matter for further testimony, or may refer the matter to CDSP.

6. After hearing, the magistrate shall make orders or prepare decisions in accordance with Civil Rule 53(C) and (E).

(E) General:

1. All rent monies held in escrow by the Clerk’s Office will continue to be withheld until an agreed entry is filed by CDSP or until an order is made by the Housing Court judge or magistrate or until the tenant gives written notice to the Clerk that the condition has been remedied, after which the Clerk will refer the matter to the magistrate for an entry.

2. The rent escrow will continue in effect for subsequent months and the tenant shall continue to deposit rent during those subsequent months, unless there is an agreement signed by the parties and filed by CDSP, or until an order is made by the Housing Court judge or magistrate, or the tenant vacates.

3. All rent escrows where no action has been taken for a period of 6 (six) months (i.e., action being defined as either payment, mediated agreement, hearing, or motion) shall be subject to dismissal by the Court pursuant to Rule 40, Rules of Superintendence for the Courts of Ohio.

4. The Clerk’s Office shall deduct one percent (1%) of the deposited money as its fee prior to release of any rent escrow (ORC §5321.08(D); §3733.121(D)).