May 19 : Community Development and Housing Committee, Cuyahoga County Council
Covered by Documenters Anna Truax (notes) and Denise Lykes (notes)
Gap financing proposed to stimulate housing market
The Cuyahoga Land Bank asked Cuyahoga County Council for $1 million to fund a project to stimulate the housing market in the county’s District 10, which includes parts of some Cleveland neighborhoods, such as Collinwood, and the cities of Cleveland Heights, University Heights, East Cleveland and parts of Bratenahl.
At the council’s Community Development and Housing Committee meeting on Monday, May 19, Cuyahoga Land Bank President and CEO Ricardo León told the committee $900,000 of the $1 million requested would pay for appraisal gap financing. Gap financing is a grant that “closes the ‘gap’ between how much it costs to build a house and the sale price the builder is able to receive for the house from a buyer,” a county official said at a previous meeting.
That financing would subsidize the sale of 20 rehabbed or newly built homes in county District 10 neighborhoods including the Circle East District and Glenville, León said. The remaining $100,000 would cover incentives for private builders to build 10 new homes.
“We hope that this investment could help jump start the local real estate market in particular sections of the district,” said León. “It will certainly lead to an increase in housing values, and help restore wealth, or build wealth, particularly for [low Area Median Income] homeowners.”
$500K toward new birthing center in Hough
Birthing Beautiful Communities asked Cuyahoga County Council for financial support to build a headquarters and birthing center in Hough.
The center would hold four birthing sites, two exam rooms, office space, and community space for training and workshops.
The total cost of the project is $15 million, President and CEO of Birthing Beautiful Communities Jazmin Long said in her presentation to the committee. The organization has already raised $6.7 million, primarily from philanthropic foundations.
Long received praise from each council member on the committee for the work she and her organization have done supporting pregnant women in neighborhoods with historically high infant mortality rates.
Council President Dale Miller called the new birth center “a unique and valuable project, and we’re excited about it.”
Facility upgrades let Habitat for Humanity workers build homes indoors
Habitat for Humanity asked Cuyahoga County Council for $300,000 to cover renovations and repairs to its facility on West 110th Street, including a new “Wall-Build Area” that allows workers to start building walls for homes indoors.
John Litten, CEO of Greater Cleveland Habitat for Humanity, explained, “Our winters aren’t always that kind to us, and it slows down our production. … We can [now] start building walls throughout the year. “
Litten said 10 homes and 10 garages will be constructed in the Wall-Build space this year.
The committee also approved granting $315,000 to the City of Berea for upgrades to its restroom and concession facilities at Coe Lake and $250,000 to Cleveland Public Theatre for renovations to its community spaces and classrooms.
Stamp of approval
Cuyahoga County Council’s Community Development and Housing Committee approved all five resolutions. The legislation was then sent to the full council for a second reading at the full council’s meeting on May 27. All five pieces of legislation will receive a third reading and vote at council’s next meeting on June 10.
The money to pay for these projects comes from Cuyahoga County Council’s Community Development Fund, funds the county collects quarterly from casino tax revenue.
