CLEVELAND — CLEVELAND — The criminal trial for Said Isaac Mahalli, 60, the Northeast Ohio landlord who rented a condemned home to a family and attempted to collect federal rent subsidies last summer, began in South Euclid Municipal Court Friday morning.
Mahalli faces misdemeanor charges related to related to numerous housing violations at 3801 Grosvenor Ave., including repairs to its bathroom, bedrooms and a damaged storm door.
Prosecutors also said Mahalli failed to secure a certificate of occupancy for the property.
Representing himself, Mahallli told the jury the house is fit to be a home. “It has new everything from electrical, plumbing, windows, roof,” he said. “What is dangerous?"
South Euclid Prosecutor Anthony Bondra told the jury the city does not “want people renting from people” like Mahalli.
“He repeatedly and routinely failed to remedy problems with that particular property,” said Bondra.
5 On Your Investigators obtained records that show Mahalli also rented the home to a family after it was condemned by South Euclid’s Housing Department.
The Cuyahoga Metropolitan Housing Authority was supposed to make sure it was safe for Mahalli’s tenants, who were eligible for CMHA rent subsidies.
However, an investigation by CMHA police found two CMHA employees failed to share information internally that the Grosvenor home was condemned despite receiving several emails from South Euclid officials.
Lt. Gregory Drew, who conducted the investigation, also found Supervisor Jermaine Burge allowed the home to pass inspection despite hanging electrical wires, a bathtub with peeling paint, a garage with a missing door filled with debris and two previously failed inspections.
Burge was fired and the two employees were suspended after the investigation.
Burge also admitted receiving lunch from landlords at least 30 times during his career, but did not say he received payment from Mahalli.
CMHA Chief of Staff Jeffrey Wade said he was “deeply” concerned about Burge’s admission and the “lapses” that allowed a family to rent a condemned home.
In an interview, Wade said CMHA has made numerous changes to its policies and procedures, in part, because of the investigation’s findings, including outsourcing inspections to a third-party and improving communications with municipalities.
Mahalli was also banned from receiving CMHA funds after the investigation found tenants at his properties “routinely” live in “deplorable” conditions and he attempts to bribe inspectors.
“This case has been a saga since 2012,” said Sally Martin, South Euclid’s Housing Director.
Martin said she and her staff have worked for years to help Mahalli bring the house up to code, but he declined to enter a free compliance program.
“We’ve had a landlord who has not upkept the house, he has not paid his property taxes, he’s allowed the house to run down, and put the tenants in peril,” she said.
Mahalli’s trial is expected to end Monday.
If convicted, Mahalli faces up six months in prison and thousands of dollars in fines.
He also faces theft charges related to his attempt to collect CMHA subsidies on the condemned home. No trial date has been scheduled in the case.
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