Cleveland Neighborhood Recovery Strategy

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Cleveland Neighborhood Recovery Strategy

• Prepared by the Cleveland Department of Community
  Development
• Frank G. Jackson, Mayor

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Cleveland Community Development Mission

• To develop a viable urban community including
• decent housing
• a suitable living environment, and
• expanded economic opportunities
• principally for persons of low and moderate
  income.

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A Housing Approach for Cleveland

• Goal Create Mixed income communities of choice
• Preserve resources for those with greatest need
• Targeted Demolition Strategy
• Assist Senior Homeowners through Senior
  Initiative
• Rehab and Vacant Properties
• Create diverse housing opportunities
• Develop Market Making Projects

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Five Neighborhood Typologies

• Regional Choice
• Stable
• Transitional
• Fragile
• Distressed

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Strategy Matrix
Distressed
Fragile
Transitional
Stable
Regional Choice
r
r
Code Enforcement Action
r
r
r
r
r
Senior Initiative
r
r
Rehab conv. And widely avail
rtarget
rtarget
r
Rehab - subsidized
r
r
r
Exterior
rtarget
rtarget
r
Vacant Affordable
r
r
r
r
Large scale projects -strengthen asset base
r
rtarget
rtarget
Demo and Landbank
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NSP 1 - 2008 Three Sources

• Directly from HUD to the City of Cleveland -
  16,143,120 (by formula)
• From the State of Ohio to the City of Cleveland
  amount 9,424,689 (by formula)
• From OHFA to City of Cleveland Projects Very
  Low Income Rental (application by project)

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Critical Activities that Shaped Proposal

• Vacant and Abandoned Property Action Council
  (VAPAC)
• REO Working Group
• Community Development Corporation Designation of
  Model Blocks
• Control Vacant and Abandoned Property for Reuse
• Rebrand Neighborhoods Based on Assets

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CDBG - ARRA

• 6 Million Awarded to Cleveland
• -Senior Home Repair and Home Maintenance
  Assistance
• -Financial Literacy
• -3.5 Million dedicated to housing developments
  selected based on competition
• Ability to proceed
• Leverage resources
• Dedicated entirely to hard development costs

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Neighborhood Market Enhancement

• Eliminate blight and dangerous, unsalvageable
  buildings
• Support Building and Housing strategies for code
  enforcement and demolition
• Restore homes, in a quality way with private and
  non-profit developers where combining investment
  will lead to market recovery
• Restore the bad home on the block, where this
  will assure neighbor-
• hood stability.

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HUD Requirements for NSP 2

• All NSP 2 funds must be spent in identified areas
• At least 25 of the funds must be used to restore
  abandoned or foreclosed housing for families or
  individuals with incomes of less
• than 50 of AMI
• All funded activities must provide benefits to
  families with incomes of less than 120 of AMI

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NSP 2 ARRA We Hope

• Application seeks 74,550,000 in HUD Neighborhood
  Stabilization Program support for a market
  recovery program in 20 neighborhoods.
• The Consortium Members
• -City of Cleveland
• -The Cuyahoga County Land Reutilization
  Corporation (CCLRC)
• -Cuyahoga County
• -Cuyahoga Metropolitan Housing Authority (CMHA)

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The Case for Impact

• The Twenty Concentration Areas contain an
  estimated 3, 335 vacant, abandoned structures.
• Using the resources on the chart before we
  anticipate reaching and addressing over 60 of
  those homes.

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Asset-Based Strategy Works

• Ohio City
• Tremont
• Chester/Beacon Place
• Detroit Shoreway
• Central

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A Strategy That Expands Opportunity

• Traditional Non-Profit partners are participants
  in planning and implement- ation
• City has added over 5o-requalifed for profit
  developers who have made a commitment to quality
  rehabilitation of homes
• City offers an 80 construction loan to
  redevelopers of 1-4 family homes in target areas
  to overcome credit access issues
• City offers gap support to bridge between the
  current market and the cost of quality
  restoration to mitigate developer risk in a
  fragile market

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Partner Opportunities

• Expand the supply of rental housing for very low
  income
• households
• -Leverage
• -Long term stability
• -Track record
• Restore 1-4 family homes in select areas for
  resale to moderate
• and middle income families

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Primary Approaches

• The key program elements of the citys targeted
  neighborhood development strategies are
• Renovation of abandoned structures.
• Home repair assistance.
• Home buyer counseling and foreclosure prevention.
• Nuisance abatement
• Land assembly planning for re-use

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Model Block Program

• Focused revitalization efforts by CDCs in 19
  model blocks i.e. 3-4 block areas consisting
  of about 100 homes.
• Efforts include renovation of vacant homes,
  completion of anchor projects, demolition of
  distressed structures, assembly of lots for
  future development or innovative new uses, and
  home repair assistance for interested homeowners.
• The intent is to create an impact that can serve
  to stimulate further revitalization.
• 1,580,000 has been awarded to support Model
  Block improvements.

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Opportunity Housing Program

• Opportunity Housing is a new pilot program
  in the Buckeye-Shaker, Detroit Shoreway, Fairfax,
  Glenville/University, Slavic Village, and Tremont
  neighborhoods.
• Reclaiming foreclosed properties within the 6
  neighborhoods will restore market confidence,
  eliminate blight, preserve property values, and
  enable a significant number of homeowners to
  retain their property and re-establish their
  credit.
• The initiative will invest 8 million in the
  first year of the 3 year program period to impact
  250 homes, and will respond on three levels to
  housing issues
• Mitigation keep 100 families who are currently
  at risk of losing their homes from going through
  foreclosure
• Demolition demolish 100 vacant and blighted
  structures per year while working to gain control
  of lots for future development and
• Redevelopment redevelop 50 vacant structures per
  year either through immediate sale or a
  short-term lease-purchase/rental arrangement,
  targeting buyers between 60 and 120 of Area
  Medium Income.

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Greater Circle Living

• This initiative offers home buyers incentives to
  live near work in the University Circle area
• A forgivable loan of 10,000
• A forgivable loan of 5,000 to families with a
  household income of under 150,000, employed in
  any Greater University Circle area non-profit
• Up to 4,000 of matching funds for eligible
  exterior improvements employees who currently own
  homes

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County-Wide Land Bank

• The county land bank would create a
  county-controlled entity to acquire, hold, clear,
  and promote redevelopment of abandoned properties
  caused by rampant tax foreclosures, sub-prime
  lending crisis, and declining housing markets.
• Proposed changes in State Law would allow County
  governments to create a specialized form of
  Community Improvement Corporation called a County
  Land Reutilization Corporation (CLRC).
• The CLRC will have broad new powers to facilitate
  the reclamation, rehabilitation and reutilization
  of vacant, abandoned, tax-foreclosed properties
  to efficiently hold and manage such property
  pending reclamation and to help government
  entities in assembly and clearance of such
  properties.

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Financial Literacy Coalition

• The Northeast Ohio Coalition for Financial
  Success was established in 2007 as a joint effort
  by the Cuyahoga County Department of Development,
  and the City of Cleveland Department of Community
  Development.
• The member organizations are dedicated to
  increasing financial literacy programs, and
  include financial institutions, nonprofit
  organizations, faith-based organizations and
  government agencies.
• The coalition is
• -creating a web site at www.neocfs.org
• -organizing and co-sponsoring financial
  awareness programs to increase outreach to
  residents
• -evaluating ways to strengthen the
  effectiveness of services

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• Thank You