Residents of the 242-unit mixed-income homes at Cascade Village Apartments are caught in the legal cross fire after Akron Metropolitan Housing Authority sued the residents’ former property manager, The Community Builders, which terminated its services agreement in late January.
Although mediation in federal court is ongoing, The Community Builders told a federal judge that they would extend their services through March 20. At the same time, the court appointed a legal intermediary to handle residents’ day-to-day issues, including rent and maintenance, but this has not yet taken effect pending court action.
Filed on Jan. 29 by AMHA, the lawsuit accuses The Community Builders of “walking away from the ownership and management” of Cascade Village Apartments. The Community Builders, a nonprofit home builder, denied the allegations, writing in a legal motion, “That is simply not true.”
The housing authority filed the lawsuit “to address ongoing mismanagement of the property and to hold the owner financially accountable for conditions that threaten resident stability and affordable housing,” AMHA wrote in a news release.
According to court records, The Community Builders hopes to replace the court-appointed receiver with one they say has “demonstrated significant experience” managing U.S. Department of Housing and Urban Development and affordable housing properties like the Cascade Village Apartments.
Akron Metropolitan Housing Authority is seeking a declaratory judgment ruling that, because Cascade Village is in default, the property owners’ leases with AMHA are terminated.
Initially filed in Summit County Common Pleas Court, the lawsuit was refiled in federal court with Judge Sara Lioi presiding.
Where is Cascade Village, and how did development get its start?
Built in the mid-2000s, the Cascade Village Apartments wind along the course of the Little Cuyahoga River in the Cascade Valley area below the All-America Bridge.
They were funded by about $20 million in federal grants and funding from the city of Akron, the Ohio Financing Housing Agency, private banks and nonprofits.
Where does the case stand?
The first round of mediation was held between attorneys on Feb. 10 and made “some progress through extensive negotiations,” according to federal court records.
The next mediation conference is scheduled for 10 a.m. Feb. 13.
Financial issues take center stage in lawsuit
The Akron Metropolitan Housing Authority lent about $5.2 million to The Community Builders, according to the lawsuit.
The Community Builders established three companies that owned three sections of the residential complex: Cascade Village North Limited Partnership, Cascade Village South Limited Partnership and Cascade Village East-West Limited Partnership.
The three companies paid The Community Builders to handle a variety of services, including rent, maintenance and repair, contracting, utilities and grievance procedures. In 2026, The Community Builders informed the three companies that they had defaulted on their deferred management fees and advances, totaling roughly $1.5 million, according to court filings.
Since 2005, the housing project largely lost money and lacked funding from the Akron Metropolitan Housing Authority, The Community Builders explained in court documents.
In 2025, The Community Builders began discussions with the Akron Metropolitan Housing Authority to transfer management duties and ownership to the housing authority. AMHA determined the property needed about $30 million in total capital investment to remain viable, noting it could not cover about $7 to $10 million of that amount.
“Simply put, the numbers do not work,” AMHA Executive Director Herman Hill said in the news release. “As a public housing authority, we cannot and will not commit scarce public dollars to a transaction that would undermine our long-term ability to serve Akron residents and the broader community.”
At the same time, residents told AMHA about “subpar property management and declining conditions at the property,” the news release explained without going into details.
When The Community Builders announced they would terminate their management agreement on Jan. 29, they blamed AMHA for failing to identify a new property manager and acting in bad faith.
“Those assertions are inaccurate,” Hill said. “TCB made the decision to exit. AMHA negotiated in good faith for months, clearly communicated our limits, and consistently centered resident stability and accountability. We will not allow our mission or our residents to be used as leverage to offload an unsustainable situation.”
The Community Builders extends management services through March 20
In terminating its management agreement The Community Builders stated it would provide week-by-week management services to residents after Feb. 5.
The Community Builders extended its management services through March 20, according to court records. In return, no state or federal court appoints a receiver over the residential housing property, and the Community Builders must receive the roughly $1.5 million Cascade Village owes.
After March 20, the Community Builders would no longer provide management services unless it decides otherwise, the filing reads.
“As we have expressed repeatedly over the years, our intent is to seek a resolution that ensures this award-winning community remains a great place for families in the years ahead. We look forward to an orderly process and to resolve all issues to the benefit of Cascade Village and all those who care about this community,” Community Builders CEO Bart Mitchell wrote in a statement. “In connection with the process, TCB has committed to continue managing the properties through at least March 20th.”
Bryce Buyakie is an Akron-based reporter who covers the courts and public safety for the Beacon Journal. He can be reached by email at bbuyakie@gannett.com or on X @bryce_buyakie.
This article originally appeared on Akron Beacon Journal: Cascade Village Apartments embroiled in property management dispute
Reporting by Bryce Buyakie, Akron Beacon Journal / Akron Beacon Journal
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