West Price Hill has the distinction of having the greatest number, nearly 30%, of Vinebrook Homes properties in the city, according to 2022 data. The city’s most recent lawsuit against VineBrook highlights West Price Hill as a “victim” of the single-family rental home operator.
Vinebrook is a notorious “institutional investor” in residential rental properties. In January 2023, the city filed a lawsuit, portraying Vinebrook as the poster child for neglectful, heavy-handed and uncooperative institutional investors.
The Enquirer reported that upon filing the lawsuit, Cincinnati Mayor Aftab Pureval said, “We have no tolerance for investors who come into Cincinnati, let properties degrade, and exploit tenants,” adding that the city will “fight back with everything we have to protect our residents.” Certainly, the tough talk was cheered by Vinebrook property residents and their neighbors.
The city’s 175-page complaint sought many orders and actions. It sought an order placing Vinebrook in “receivership,” under Ohio law; a judgment requiring Vinebrook to pay “all unpaid assessments and bills;” payment of damages for Vinebrook’s alleged breach of a 2021 settlement agreement; payment of damages for civil conspiracy, including punitive damages; and an order requiring Vinebrook to pay all litigation costs and the city’s legal fees.
Even U.S. Sen. Sherrod Brown was in the city’s corner. As chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, he wrote a blistering letter to Vinebrook in December 2022, and announced a news conference with the headline: “Brown to Vinebrook: Stop Exploiting Cincinnati Families.”
The city seemed to have a lot of leverage. Many very damning facts were cited in its complaint. It was being litigated in the city’s home county before a judge from the same political party as the mayor and City Council. The city beat the motion to dismiss, and the issue had the attention of Sen. Brown. However, the city and Vinebrook have settled the case and agreed to clean the slate and start fresh. Let bygones be bygones.
No damages will be paid for anything. All “costs and fees” (allegedly owed) are considered “paid in full and resolved.” There was no civil conspiracy, and no punitive damages assessed. The parties agreed to a “mutual release,” which forgives and forgets all that went on in the past for both sides. There will be no receivership. Instead, a “monitor” has been appointed, which is a big step down from a receivership, and the city itself has even agreed to be monitored. The city also agreed to train city employees how “not” to discriminate against Vinebrook.
Do not expect any more tough talk. The parties have agreed to very detailed and enforceable non-disparagement and non-discrimination clauses. The city and Vinebrook have had an acrimonious and dysfunctional relationship that must improve. That will require engagement and leadership from someone higher up at City Hall.
The city should also make some public effort to explain why it settled the case and what it means for the city’s other lawsuits against institutional investors. For example, it looks like the city’s response to Vinebrook’s counterclaim was to simply settle and not fight.
Still, the city could list all the specific assertions contained in its complaint, and even include the charges made by Sen. Brown, and publicly explain how each of those assertions and charges will be addressed through the settlement. In other words, demonstrate to the public why this is a good deal for the neighborhoods. The “victims,” like West Price Hill, at least deserve that.
Todd J. Zinser is a Cincinnati native and resides in West Price Hill. He retired as the Inspector General of the U.S. Department of Commerce after 31 years of conducting audits and investigations of federal officials, programs and operations. He remains a certified fraud examiner.
This article originally appeared on Cincinnati Enquirer: Cincinnati owes public an explanation for Vinebrook Homes settlement
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