July 30: Joint Committee, Cleveland City Council
Covered by Documenters Tina Scott (notes) and Chanel Wiley (notes)
Historically redlined Cleveland communities targeted for housing fund investment
Cleveland is looking to invest $100 million in housing.
Members of Cleveland City Council heard from city officials and representatives from the nonprofit Local Initiatives Support Corporation (LISC) about a proposed public-private housing investment fund. The fund would be designed to connect historically redlined communities to private investments supporting affordable housing, according to City of Cleveland Chief Integrated Development Officer Jeff Epstein.
Project officials said the Cleveland Housing Investment Fund (CHIF) could raise up to $100 million. Council is considering legislation that would let the city kick in $18 million. Epstein said $15 million of the $100 million would be allocated to projects on Cleveland’s Southeast Side, a main focus area for revitalization by Cleveland Mayor Justin Bibb.
Potential investors in the funds include banks, corporations, philanthropy, and state and local governments. KeyBank has committed to investing $20 million, according to Cleveland Community Development Director Alyssa Hernandez.
A Cleveland ‘housing supply problem’
The CHIF fund will include a focus on mixed-income rental properties in areas that are considered “middle neighborhoods” and are affordable for residents with low to moderate incomes. Hernandez said the fund would target individuals earning less than 80% of the Area Median Income (AMI), meaning residents earning less than $54,450 per year.
Cleveland City Council President Blaine Griffin shared his opinion of what constitutes “affordable housing,” saying 80% AMI in a distressed area is different from 80% AMI in a thriving neighborhood such as Tremont or Ohio City. Griffin said he believes housing available to those earning 60% of AMI is affordable housing.
Epstein told Griffin the city has a “housing supply problem.” More housing is needed at all price levels, he said. Epstein also said the further you lower the AMI threshold, “it’s just more subsidy that is needed from somewhere.”
Tiffany Durr, interim president of LISC fund management, said that with mixed-income housing, units priced for residents with higher incomes subsidize the units priced for residents with lower incomes.
Cleveland City Council assigned the legislation to the Development, Planning and Sustainability Committee for further review.
Bedrock TIF for developing riverfront moves ahead
The Cleveland City Council committee approved a new tax-increment financing (TIF) deal for the land south of Tower City to support Bedrock’s riverfront development plans.
The land that makes up the riverfront would be removed from the current “Shore-to-Core-to-Shore” TIF district approved in March. Epstein said land parcels cannot be a part of two TIFs.
Read the notes from Documenter Tina Scott:
Read the notes from Documenter Chanel Wiley:
