Surprise fees for street parking in Columbus subdivision halted by Franklin County judge

The mailing looked official, but when residents of a neighborhood subdivision in Columbus' Far North Side read the details, they were confused. Was this a scam? A misunderstanding?

Cleveland-based Novsky LLC was asking the 80 homeowners in the Smokey Ridge Estates near Powell to sign a lease agreement for parking spaces on the streets in front of their townhomes and condominiums in the subdivision that they had been parking in freely for years.

Worse, Novsky was requiring $120 per month per vehicle to park there. If residents didn't enroll by Dec. 15 and make their first payments by Jan. 3, their vehicles would be towed and impounded.

Residents were swift to call the plan "ludicrous," "shocking" and "extortion." They argued that monthly parking rates in Downtown aren't nearly this high.

"I didn't think it was real," said Cynthia Price, a five-year-resident who soon will have two cars to park. "Since when can someone come in, outside of your lease, and sell your parking space? It's crazy."

The issue arose after an apparent lapse by those who had created a not-for-profit more than 40 years ago to manage the common property, including parking spaces on the privately-owned streets in front of their townhomes and condominiums and a retention pond.

Green Space One was formed in the early 1980s to act as a homeowners association (HOA), according to public records. But it was never used that way. Residents can't recall ever hearing about fees or assessments. And the lapse in its status apparently went unnoticed, even by its creators.

HOAs typically file liens and potential foreclosure actions against property owners who fail to pay their assessments. In this case, it was the HOA that was negligent by failing to pay Franklin County.

It is unclear when, but sometime before 2009, developers responsible for the HOA stopped paying some $200 annually in property taxes, according to auditor's office records.

Twelve years later, in 2021, Franklin County Treasurer Cheryl Brooks Sullivan filed a foreclosure complaint against Green Space, prompting sale of the property.

But twice in June, the property failed to sell at a sheriff's foreclosure sale and was forfeited to the state of Ohio, according to court records.

In September, four of 10 parcels (only those with parking spaces) were sold for $5,500 to Daniel J. Praznovsky, who is listed as the managing partner for Novsky LLC, which sent the lease notices to residents weeks later.

If he is successful in forcing the 80 residents into his parking leases, he could generate annual revenues of almost $250,000 for his one-time investment, according to lease details.

Praznovsky, 32, hasn't responded to multiple calls and text messages from The Dispatch seeking comment.

Residents' outrage and complaints quickly began to circulate.

Nick Destounis, property manager for G.A.S. Properties, said he had learned about the problem when residents of 16 of the homes he manages began to call. His company has been mowing and tending the common areas for years, he said.

"It turns out that we didn't really know who was responsible for doing it. Everyone was doing it themselves," Destounis said of his firm and other managers. "It is a very weird and very unique case."

Now he worries that residents could be forced to leave their homes, whose average rent is $945 monthly.

"We're going to try to help our tenants any way we can," he said. "We have a good group."

Destounis said he and others have been told that Praznovsky was offered $30,000 to return some of the spaces to property owners but refused the offer.

The controversy made its way to attorney Madeline Lamb, who earlier this week filed a complaint seeking to stop any enforcement of the lease or collection of parking fees. She represents two of the residents but is hoping to have others be included.

The complaint states, in part, that "Novsky LLC is not acting in the interest of the lot owners, but instead strategically purchased the land and parking places surrounding the lots to force the lot owners to pay for access to their homes."

Franklin County Common Pleas Judge Mark Serrott agreed. On Tuesday, he issued a temporary restraining order against Novsky LLC, stating, "I'm not going to allow the defendant to interfere with the parking until we have a full hearing on the matter."

That hearing is scheduled for Dec. 20.

Residents say they worry that Praznovsky might legally be permitted to exploit them, even if doing so is morally and ethically wrong.

Dawn Rader was walking her basset hound, Olive, in front of her home, bedecked with wreaths and a sign proclaiming "Home Sweet Home."

But now she's not quite sure about the holiday spirit.

"We're willing to pay for parking, but not more than $1,000 per car, per year," she said. "If we could afford another $2,900 a year for anything, we probably wouldn't have to rent."

But Lamb said she is confident that Novsky's money-making plan won't hold up in court because the original plat, which outlines the boundaries and use for the land, states "a homeowners association shall maintain the 'open space.' " and that "all parking areas shall be included as 'open space,' " and that all future property owners know this.

Praznovsky's fee-simple purchase means that the sale was made without any limitations or conditions.

"If he wants to own this, fine, but he has to own it as a HOA for the benefit of the lot owners and (where) a reasonable assessment is warranted but not for profit and exploitation," Lamb said of Praznovsky.

Meanwhile, Lamb held a meeting Wednesday night to update residents and coalesce their support. She said she has been energized by the legal challenge.

"It's one of those interesting law-school fact patterns where there is no one easy answer," she said.

Gahanna attorney Jeffrey A. Dittmer, an HOA and condominium expert and partner with Dittmer, Wagoner and Steele, said he was surprised by the situation.

"This is rare," he said. "It's not something that we could ever envision."

"In theory, each resident would have a percentage share of the open space," giving no one the right to levy new fees, he said. "You can't buy into a unit and be told a year later — let alone 40 years — that you can't park there."

But Dittmer said if the association was legally dissolved and no one owned the land, "Maybe he's (Praznovsky) found a gold mine. He could put a Ferris wheel on the property if he wants."

dnarciso@dispatch.com

@DeanNarciso

This article originally appeared on The Columbus Dispatch: Planned parking fee windfall from Columbus subdivision halted in court