FY 96 Homeownership Zone
Cleveland, OH

AMOUNT OF AWARD:

Homeownership Zone Grant — $4,643,965
Section 108 Loan — $12,000,000

NEW HOMEOWNER UNITS:

278 (all new construction)

COMPLETION:

December 2009

HOMEOWNERSHIP ZONE SITE:

The Villages of Central Homeownership Zone (HOZ) is a 363 acre area located in Cleveland's East Side. It is bounded by Cedar Avenue on the north, East 71st Street on the east, Quincy (Community College) Avenue and Scovill Avenue on the south, and East 36th Street on the west. The area is close to the central business district and is served by two rapid transit stations. At the time of the Homeownership Zone designation, the site had over 400 parcels of vacant, city-owned land. It was adjacent to a distressed public housing project.

PROGRAM DESCRIPTION:

The City used its Homeownership Zone demonstration grant as seed money to build 278 units of new homeownership housing on vacant land in six subtarget areas, or Villages, in the Central area of Cleveland: Central, Friendship, St. John's West, St. John's East, Garden and Woodland. The project reclaimed the majority of vacant and blighted land in the six areas. House designs reflect the architectural characteristics of the existing area, with front porches and detached, rear garages. New infrastructure, a community center, landscaping and a "Readers Garden" were developed. New homebuyers received financial assistance and homeownership counseling. An adjacent public housing project was entirely rebuilt through a HOPE VI grant. Altogether, over 1,200 units of homeownership and rental housing were developed in and adjacent to the Homeownership Zone. Over 181,000 square feet of new and redeveloped commercial and retail space were created. At the time of project completion, a new transit station was nearing completion and planning was underway to redevelop abandoned Brownfield industrial sites.

FUNDING:

PROJECT OUTCOMES:

The neighborhood's transformation would not have happened without the HOZ designation. The federal grant leveraged $113,556,314 in other funds. The image of the neighborhood has changed from a struggling inner-city slum to a vibrant community of choice on the rise. The homeownership development spurred other market-rate and commercial development in the surrounding area. Homeownership rates increased by 19 percent. House values substantially increased. Resident income levels increased by 205 percent. The poverty rate decreased by 22 percent. A Weed-and-Seed program, together with the new development, helped reduce the crime rate by 5 percent. Unfortunately, the national financial crisis negatively impacted local market conditions. As a result, the City was unable to fully meet its original sales target of 300 units. Land that has been acquired for additional development will remain in the City's Land Bank inventory until market conditions improve. The City continues to aggressively market the HOZ area.

INNOVATIONS:

• Buyers received 15 years of tax abatement. The tax abatement terminates if the property is neglected. After 15 years, taxes will be based on the value of any improvements.
• An innovative marketing approach "Choose Your Neighbor" program was instituted. Existing homeowners that referred a potential buyer received $500 or $500 in free upgrades.
• Another innovative marketing program was the "911 Program". Cleveland police and firefighters who purchased homes received $500 in free upgrades.
• Members of the project management team participated in "Clean Up Clarkwood Day" which was sponsored by a local Court Community Service Program. The clean up was within Zone boundaries and helped spur sales of HOZ properties in the area.
• Homeowner frustration with the maintenance requirements for their lawns appeared to reflect a need for an "ease" into homeownership for some of the new homebuyers. The developer offered future homebuyers the option of having sodded lawns for an additional $50 fee that was added to the purchase price.
• The Ward Councilman provided $5,000 to the Friendship Village Block Club for new landscaping items for every house on the block.
• A "Reading Garden" was built at the southern gateway to St. John's Village to encourage reading within the community and among schoolchildren.

BEST PRACTICES:

• Having site control.
• Using existing street patterns.
• Designating a full-time Project Manager.
• Obtaining resident and community support.
• Minimal relocation.
• Quality Design.
• Innovative marketing techniques.
• Financial incentives, including tax abatement.
• Working with local financial institutions to create unique mortgage products with lower interest rates.
• Offering home maintenance workshops.

LESSONS LEARNED:

• An experienced development team is essential.
• Support from all political levels is critical.
• The HOZ required a full-time project manager.
• Land assemblage takes time. The City needed to hire a private investigation team to locate private property owners.
• It is important for the HOZ project to be given a priority throughout the City administration. Delays in scheduling design reviews and obtaining building permits slowed progress.
• The need to upgrade and connect sewer lines resulted in unanticipated project costs.

AWARDS AND RECOGNITIONS:

• 2002 Award for Excellence and Best in Show Award - Cleveland Area Smart Growth and Community Excellence Competition

Additional Information

• Project Contact
• MAP
• DEVELOPMENT PLAN MAP
• PICTURES