Cleveland, Ohio, is an older industrial city that, beginning in the 1950s, experienced significant losses in population, housing, and jobs. While many Cleveland neighborhoods remained stable and vibrant often due to the efforts of strong non-profit development organizations, other areas suffered from deteriorated housing, abandoned commercial strips, and concentrations of poverty. In recent years, Cleveland's Community Development initiatives have been directed toward restoring the confidence of homeowners, homebuyers, investor-owners, and financial institutions in the long-term stability of the city's neighborhoods, and assisting those unable to afford standard quality housing through direct housing assistance and the expansion of economic opportunities. One measure of the success of these efforts to date are the more than 1,600 new homes built in the past five years, a level unprecedented in any comparable period since the Korean War.
During the 1995-1996 program year, Cleveland expects to utilize a wide range of resources to meet its housing and community development objectives. Federal resources include $33.6 million in Community Development Block Grant (CDBG) funds, $7.1 million in HOME Investment Partnership Program (HOME) funds, a $1.2 million Emergency Shelter Grant (ESG), and Cleveland's first direct allocation of Housing Opportunities for Persons with AIDS (HOPWA) in the amount of $499,000. The city also has a commitment for Federal Home Weatherization Program funds and for $90 million to implement its strategic plan within the designated empowerment zone.
The Department of Community Development placed special emphasis on citizen participation in the development of its 1995 Consolidated Plan. The department held eight citizen participation workshops at strategic and centrally located neighborhood sites that correspond to the city's eight major planning regions. These meeting sites represented the wide range of economic diversity typical of Cleveland's neighborhoods. More than 150 residents attended the planning meetings and made 191 different recommendations concerning strategies for retaining, enlarging, or otherwise modifying CDBG programs.
Citizen concerns fell into seven major categories: housing assistance and
code enforcement, economic development, public safety, public services, public
improvements, land revitalization, and miscellaneous operational and service
delivery issues. City officials believe that citizen participation is essential
to its evaluation of current and potential programs.
Between 1950 and 1960, Cleveland's population fell from 914,908 to 505,616. In recent years, the rate of population loss has slowed, with a loss of less than 12 percent between 1980 and 1990.
The 1990 census shows a population with roughly equal percentages of white (47.8 percent) and African-American (46.3 percent) residents, with a Hispanic population at just under 5 percent of the total. Minority populations are not distributed evenly throughout the city. While there has been some breakdown in traditional racial/ethnic boundaries in recent years, much of Cleveland is made up of neighborhoods that are either predominantly African-American or predominantly white.
Median family income (MFI) in Cleveland is $22,448, well below the $37,448
median for the metropolitan area. Of the 199,617 households in the city, 44
percent have very low incomes (0-50 percent of MFI), 20 percent are other low
income (51-80 percent of MFI), and 8 percent have moderate incomes (81-95
percent of MFI). The percentage of low- income households (below 50 percent of
MFI) is significantly higher for racial/ethnic minorities. A majority of
African-American and Hispanic households are low income.
Cleveland has an aging housing stock, with wood frame one- and two-unit structures being the predominant housing type. Over 67 percent of all units are in one- or two-unit structures. Less than 2 percent of the structures, containing 21.7 percent of the city's total housing units, have five units or more. The median age of single family houses is 70 years. The median age for two-family houses is 80 years.
In spite of many changing characteristics of the housing stock, the level of owner occupancy has remained relatively constant during the past 20 years, just under 50 percent of all occupied units. Since many owner-occupied structures contain two or more units, the percentage of all housing structures that are occupied by an owner is actually more than 70 percent.
A significant portion of Cleveland's housing stock is in need of rehabilitation. A combination of aging structures and residents with inadequate incomes creates a situation where deferring maintenance is common and can quickly lead to serious deficiencies in the housing stock. There are no statistics that precisely enumerate the substandard units in Cleveland. However, based on the best available data, it is estimated that 43 percent of rental units and 13 percent of owner-occupied units do not fully meet Cleveland Building and/or Housing Codes.
Cleveland's most critical housing needs are a direct result of poverty. A significant portion of the city's population cannot afford the cost of standard quality housing, even when an excessive percentage of income is being devoted to housing costs. Lower-income rental households' needs result not only from cost burden and substandard conditions, but also, in the case of larger families, from overcrowding.
The city's efforts to preserve neighborhoods and ensure decent housing conditions are complicated by a combination of homeowners with limited financial resources and an aging and often deteriorated housing stock. Strict enforcement of housing codes against homeowners that cannot afford to make the necessary repairs is rarely a productive approach.
Moderate- and middle-income households also need assistance to become homeowners. Families may have sufficient income to meet the monthly obligations of homeownership, but lack the accumulated savings for conventional down payments and accompanying closing costs. This is particularly true if the buyer must also obtain financing to make substantial repairs. Programs that provide assistance and incentives for moderate- and middle-income households to become homeowners through the acquisition and rehabilitation of vacant houses can help assure that Cleveland's stock of affordable housing is preserved and that a stable and economically diverse population of homeowners is retained in the neighborhoods.
In spite of losses of units through abandonment and demolition, housing vacancy rates reported in the census continue to increase. The 1990 census reported 199,787 occupied units of a total stock of 224,311. Vacancy rates were 11 percent in rental housing and 1.5 percent in for-sale housing.
Based on comparative figures from other major urban markets, housing costs in the Cleveland area are relatively inexpensive. Within the Cleveland market area, the city of Cleveland offers the most affordable housings costs. The median owner-occupied home value in the city ($110,100) was 47.5 percent of the median for the rest of Cuyahoga County. The median monthly housing cost for city renters (fair market rents of $380 for one-bedroom units and $448 for two-bedroom units) was 69 percent of the median for the rest of the county. These comparative statistics do not mean that housing is affordable to all Cleveland residents.
Almost 75 percent of renters with incomes below 30 percent of median and more than half of those with incomes between 31 and 50 percent of median pay more than 30 percent of income for housing. In 1988, 53,800 renter households in the city paid more than 30 percent of income for housing, and 31,000 paid more than 50 percent of income for housing.
Statistics for low-income owners show a similar pattern of financial burden. Particularly noteworthy is the high percentage of the elderly among homeowners with the lowest incomes.
Based on the records of service providers, it is estimated that 10,000 individuals in Cleveland are homeless at some point during the year. Homelessness is a growing problem; in 1983 the figure was half that cited above. Of the homeless population, 20 percent are families with children, 55 percent are single men, 23 percent are single women, and 2 percent are unaccompanied youth (age 18 and younger).
There is a need to expand homelessness prevention activities and to provide increased income through employment, higher public assistance payments, and subsidized housing. Supportive services are also needed.
The Cuyahoga Metropolitan Housing Authority (CMHA) has an inventory of 12,002 units. Approximately 95 percent of the CMHA units are located in the city. The two most critical problems that have faced CMHA during the past 15 years are the condition of its properties and the related issue of declining occupancy. Many years of inadequate funding for modernization and inadequate maintenance have produced a situation in which many units are uninhabitable. Many of the occupied units are severely deteriorated. Between 1980 and 1990, CMHA's vacancy rate increased from 9.5 percent to 31.6 percent.
Currently, CMHA is in the process of a massive physical modernization effort combined with improvements in maintenance and management. The U.S. Department of Housing and Urban Development (HUD) has committed more than $200 million to CMHA since 1990 for modernization activities.
The CMHA maintains a central waiting list for all units. The waiting list for family units has been closed to new applicants since late summer 1994. There are 4,118 families on the waiting list. An additional 1,350 elderly, near elderly, or non-elderly disabled persons are on another waiting list that is still open. In addition to public housing, there are over 10,000 other federally subsidized housing units in Cleveland, most with long waiting lists.
Section 8 Certificates and Vouchers assist over 6,000 Cuyahoga County households afford private housing, a high percentage of which are located in Cleveland. Because of the overwhelming demand for these subsidies, a lottery process is used to determine recipients.
In Cleveland, because of the age and condition of the housing stock, average rehabilitation costs are high. With low market values, the cost of rehabilitation can often exceed the value of the property upon completion. New lead-based paint abatement regulations add to the rehabilitation costs. A rental unit that is affordable to those with the very lowest incomes is almost certain to be substandard, because the rent will not be able to support both operating and maintenance expenses.
Local public policies affecting affordable housing include development and land use controls, building permit and code processes, and tax policies. Cleveland does not impose growth controls, impact fees, exclusionary zoning, large lot zoning, excessive subdivision control, or rent control.
Tax abatement and foreclosure policies can affect affordable housing. The city has adopted a policy of using property tax abatement to enhance the affordability of new or substantially rehabilitated housing. Cleveland works with Cuyahoga County to ensure the timely foreclosure of tax-delinquent vacant land. Most such properties are turned over to the city's Land Bank, where they are held for redevelopment purposes. Developers of affordable housing are able to obtain buildable sites from the Land Bank at a cost of $100 per unit.
The Department of Community Development works with the Community Relations Board of Cleveland to affirmatively further two fair housing and neighborhood stabilization objectives:
The primary vehicle for enforcement of fair housing is the Fair Housing Review Board, which receives individual complaints of illegal discrimination in the housing market, monitors real estate practices, and facilitates fair housing community education programs. The city's monitoring of lending institutions has important fair housing implications. Community Reinvestment Act challenges filed by the city have been based on statistical evidence of apparent discriminatory lending practices.
Since the majority of Cleveland's housing stock consists of wood structures in excess of 70 years old, it is assumed that a high percentage of these structures have lead-based paint on exterior and interior surfaces. It is estimated that 80,116 renter-occupied housing units and 35,417 owner-occupied housing units have lead-based paint. Based on the age and condition of the housing stock, Cleveland is estimated to rank third among the major American cities in the percentage of children with lead poisoning.
The deterioration of the housing stock cannot be separated from the broader
issues of neighborhood quality and condition. Nor is the physical condition of
the surroundings the only element critical to the viability of a community.
Residents require safety, services that address basic needs, and access to
quality public and private facilities, including commercial activities. Job
creation, high-quality education and training, and fair access to development
capital and credit are community development needs that must be addressed in
Cleveland.
Cleveland's vision for change is intimately tied to its efforts to obtain empowerment zone status. In order to create a comprehensive zone strategy, a community planning process involving more than 3,000 residents and more than 50 support organizations came together to develop a 10-year economic development strategy. The strategy has three main objectives: business and housing development, labor force development, and community building. All build on existing communitywide and neighborhood partnerships.
Major elements of Cleveland's housing and community development plans include strategies for developing livable, safe, and affordable housing and promoting neighborhood development activities, commercial development, public safety and services, and abatement of problem properties. A key objective of the city's community development strategy is to preserve and enhance the viability of neighborhood commercial areas.
Cleveland's housing plan focuses on affordable housing needs, homelessness, and supportive housing for non-homeless persons with special needs. Cleveland's most critical housing needs are a direct result of poverty. A significant portion of households with very low incomes cannot afford decent housing. Priorities include:
Cleveland's Consolidated Plan breaks affordable housing needs into 48 separate categories differentiated by problem, type of household, income level, and tenure type. Each category is assigned a priority. The four highest priority groups are:
Rehabilitation and rental assistance activities are the primary vehicles assisting those in the first category. Although Cleveland does not have a shortage of rental housing, it does have a shortage of livable, affordable rental housing for households with very low incomes.
For moderate-income renters, there is a need to produce additional affordable units for large families and to provide assistance for upgrading existing substandard units. Because most renters with incomes above 50 percent of median are not cost burdened, they do not need rental assistance.
The same activities are appropriate for elderly renters that are appropriate for non-elderly renters, except for the requirements for physical accessibility to accommodate the special needs of the elderly.
It is estimated that there are more than 12,000 substandard owner-occupied housing units in Cleveland. It is essential that rehabilitation funds be sought and that the leveraging of other resources be utilized to address this unmet need.
Cleveland and its community partners will address 15 categories of homeless needs and the housing needs of special populations. Given the substantial development, operating, and service expenses that can be required for supportive housing, it is essential that a maximum use be made of Federal and State programs designed for that purpose.
Neighborhood development activities range in scale from modest tree plantings and beautification activities to large projects such as major park/playground rehabilitation and total reconstruction of major thoroughfares.
Neighborhood development activities are mostly carried out by community-based non-profit organizations. Specific programs to support redevelopment plans include the Storefront Renovation Program and the Neighborhood Commercial Hub Program. The Storefront Renovation Program uses loans and rebates to leverage private investment to rehabilitate commercial building exteriors. The Neighborhood Commercial Hub Program utilizes funds in conjunction with foundation contributions and bank loans to achieve comprehensive rehabilitation of all structures within five concentrated commercial centers. Investments in the private properties are supported through public streetscape improvements and enhanced services. The city will also seek opportunities for creating major new commercial developments.
Public service activities include:
Problem properties are addressed through special neighborhood code enforcement programs, expedited demolition of condemned structures, and aggressive public land banking of abandoned properties.
Cleveland's economic development efforts are focused on retaining and creating employment in order to reduce poverty. The Cleveland Community Building Initiative, created as a result of a study by the Cleveland Commission on Poverty, began operations in four pilot neighborhoods known as "villages." The initiative is designed to assist residents in tailoring a comprehensive strategy for each village to address the complex and interlocking problems related to persistent poverty. Strategies focus on the following five program areas:
Cleveland has adopted a 10-year empowerment zone strategy to concentrate resources for development, job creation, job training, and social services in a coordinated effort to reduce long-term poverty.
In 1995 Cleveland will receive a CDBG allocation of $33.6 million. An additional $2.5 million will be available though program income. Under the HOME program, Cleveland will receive $7.1 million in 1995. The ESG will bring an additional $1.2 million in Federal funds. The city will receive its first funds for HOPWA. The city also has a commitment for $3 million from the U.S. Departments of Energy and Health and Human Services under the Home Weatherization Assistance Program administered by the State of Ohio. In December 1994 the city was awarded $90 million in HUD Economic Development Initiative funds to implement a strategic plan within its empowerment zone: the Fairfax, Hough, and Glenville neighborhoods.
Additional funds to support the homeless include $10 million from Shelter Plus Care and $1.3 million to help six non-profit agencies provide transitional housing and related services. Public housing funds include an expected $36 million under the HUD Comprehensive Grant Program. In 1993 the CMHA was awarded $50 million under a special HUD demonstration program linking physical renewal of severely distressed public housing with a comprehensive approach of support services and community building. A $1.6 million Supportive Housing Grant will assist the CMHA in developing a 40-unit transitional housing program for single men. The city will apply for additional funding from other Federal programs, including Section 202 and 811 housing for the elderly and handicapped, and the Federal Emergency Management Agency.
State funds will include allocations for low-income housing development and development of housing for those with mental illness, mental retardation, and developmental disabilities.
Cleveland has been allocating $1 million annually in local General Obligation Bonds to provide public infrastructure, land acquisition, and site development in support of new housing construction projects. The Neighborhood Development Investment Fund is a new $40-million capital program created by the city to stimulate neighborhood projects.
Private resources include local organizations such as Neighborhood Progress, Inc., whose mission is to catalyze neighborhood revitalization. The city has negotiated increased private lending, which has yielded pledges of more than $900 million for neighborhood lending and investment.
The Department of Community Development is responsible for all Consolidated Plan activities. The Division of Administrative Services monitors performance compliance and financial management, and the Division of Neighborhood Development oversees new construction and large-scale projects financed through the city's Housing Trust Fund. The Division of Neighborhood Services monitors responsibilities for housing rehabilitation, homebuyer activities, and weatherization. The county government has primary responsibility for health and human services delivery systems at the local government level. The State and private for-profit and non-profit organizations are part of the housing and community development strategies for Cleveland.
The successful effort to secure a $90 million supplemental empowerment zone
commitment from HUD is a model that can be expanded upon in addressing
Cleveland's housing and community development needs. The empowerment zone
process has included government representation from the city, county, State, and
Federal levels; neighborhood development organizations; social service and
health care providers; business community members; and substantial citizen
representation working toward neighborhood goals.
The One-Year Action Plan details the proposed use of approximately $46.2 million dollars 1995 allocations and program income under the CDBG, HOME, ESG, and HOPWA programs. Almost 60 percent of this total will be for housing related activities including:
Other key project categories will include:
While community development activities enhance the entire city, specially designated areas include the three empowerment zone neighborhoods: Fairfax, Hough, and Glenville. These three contiguous east-side neighborhoods are characterized by high levels of unemployment, poverty, and deteriorated physical infrastructure. Despite these deficits, assets that include a concentration of manufacturing, health care, and other institutions in the midtown corridor district make the zone a promising site for a multifaceted economic development initiative.
MAP 2 depicts points of interest and low-moderate income areas.
MAP 3 depicts points of interest, low-moderate income areas, and minority concentration levels.
MAP 4 depicts points of interest, low-moderate income areas, and unemployment levels.
MAP 5 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects.
MAP 6 is a map, sectioned by neighborhood, which depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects.
MAP 7 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects within one of the four neighborhoods indicated in MAP 6.
MAP 8 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects within another of the four neighborhoods indicated in MAP 6.
MAP 9 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded project(s) from a street level vantage point; in addition, a table provides information about the project(s).
