City of Cleveland Housing Strategies:

Approaches for Improving Our Neighborhood Housing

January 29, 2013 presentation to CD/ED Committee of City Council

Mission of the City of Cleveland

We are committed to improving the quality of life in the City of Cleveland by strengthening our neighborhoods, delivering superior services, embracing the diversity of our citizens, and making Cleveland a desirable, safe city in which to live, work, raise a family, shop, study, play and grow old.

Principal Functions of the Department of Community Development

The Department of Community Development implements programs designed to conserve and expand the housing stock; revitalize commercial areas; acquire, maintain, and market vacant land.

General Principles
To create healthy communities of choice, new physical development must be accompanied by efforts to maintain or strengthen the existing housing stock either through demolition or improving it through rehab.

Goals

Align housing strategies with the city wide plan Shift focus of housing development from new construction to rehab Identify pipeline of houses for rehab, renovation or demolition Facilitate acquisition and rehab, renovation or demolition of existing houses Increase the volume of demolition Increase the volume of rehab and renovation Improve the market appeal for existing housing in the City of Cleveland Increase the pool of buyers interested in a rehabbed or renovated house. Increase the funding to support the strategies

HUD National Objectives for CDBG

Provide assistance to low and moderate income families Prevent and alleviate slum & blight Address an urgent need.

Core Strategic Framework

Strategies are principally set forth in 4 documents: The Connecting Cleveland 2020 Citywide Plan, The Mayors Urban Agenda, The Neighborhood Typology, and The Consolidated Plan.

Market Conditions
High Foreclosure Rate Declining property values Lower demand in a slow growth area High low-mod population

Slow Growth
Population decline: 1950 948,000
2000 - 478,000 2010 393,804

Income & Poverty

National Median Income $49,445 (15.1%) Ohio Median Income $45,090 (15.8%) County Median Income $41,347 (17.9%) Cleveland Median Income $25,977 (34%)

Areas to Strengthen
Challenges include: Housing Stock Condition Declining Property Values & Appraisals Cost of Construction Shrinking Developer & General Contractor pool Market demand: strengthening the structure for increasing financial literacy so that there are more people with credit scores and savings Marketing the city, its neighborhoods and housing

Create a Stronger Product

Housing rehab is divided into three approaches: 1. Rehabilitation or Rehab A comprehensive or
extensive set of repairs to a house. The scope of work is usually broad, but does not change the characteristics, amenities or floor-plan of the house. 2. Renovation An extensive value-added rehab that encompasses changes in the floor-plan or the addition of features, characteristics, or amenities to the house. 3. Restoration Incorporating the re-creation or maintenance of historic features, internally and externally, to the rehab or renovation of a house

A Focused & Strategic Approach

The strategies designed by CD are designed to
have activity in every SPA/neighborhood, and match the intervention with the needs. Limited resources and large demand require a focused approach:
City-Wide Plan Neighborhood Typology Priority Areas (for housing as well as for retail & industrial)

Neighborhood Typology and Priority Areas

Neighborhood Market Typology
DETAILED RANGE
OVER 4.71 4.71 4.57 4.43 4.29 4.14 4.00 3.86 3.71 3.57 3.43 3.29 3.14 3.00 2.86 2.71 2.57 2.43 2.29 2.14 2.00 1.86 1.71 1.57 UNDER 1.57 DISTRESSED FRAGILE TRANSITIONAL STABLE REGIONAL CHOICE

Neighborhood/SPA Model Block Model Block-HTF Strategic Priority Areas (CD, ED, CPC) SII Areas (NPI) Waterloo Village Collinwood Village Spruce Up East Clark COI T RD COI T I I

WHI T E M OTORS SUPERI OR FI VE Ashbury LEAGUE PARK UPPER CH ESTER M I DTOWN East Central EAST 5 5 TH & WOODLAND Urban Community School Neighborhood Plan M AI NGAT E 98 Great Homes FORGOTT EN TRI ANGLE Buhrer Rowley PERSH I NG & I -7 7 Marvin Morgana Kingsbury Corlett Mt. Pleasant FRANK AVENUE BEAVER AVENUE Bridgeport Artisan/Moreland Fairfax

NON-RESIDENTIAL

M I DLAND

W. 58th St.

Spokane

.
City of Cleveland Department of Community Development
0 0.5 1 2 3 4 5 Miles

July, 2008

Neighborhood Typology Variables

1) Median Assessed Value of 1 to 3 Family Homes in 2008 2) Change in Median Value of 1 to 3 Family Homes between two time spans from 1989 to 1991 and from 2005 to 2008 3) Net Change in Number of 1 to 3 Family Homes from 1990 to 2008 4) Percent of 1 to 3 Family Homes Transferred by Sheriffs Deed from 2005 to 2008 5) Homeownership Rate in 2007 6) Percentage of 1 to 3 Family Homes Boarded or Condemned from 2005 to 2008 7) Percentage of 1 to 3 Family Homes Rated as Fair or Worse by the Cuyahoga County Auditor as reported in the 2007 tax file. 8) Percent of Residential Structures Surveyed as Vacant and Distressed in 2008 9) Demolition Rate of 1 to 3 Family Homes from 2006 to 2008

Neighborhood Typology
Comprehensive analysis of
neighborhood and market conditions. A tool for planning, development,

Identify market strengths and

and program strategies.

Purpose

weaknesses. Develop program strategy based on market need.

Origination
Typology 2.0 released in 2007 focus on residential
structures combination of 7 variables

Goal

Typology Program Mix

Regional Choice
Code Enforcement Action Senior Initiative Rehab conv. And widely avail

Stable

Transitional

Fragile

Distressed

r r

Rehab subsidized
Exterior

Vacant Affordable
Large scale projects strengthen asset base Demo and Landbank

r r r r r r

r rtarget r rtarget r
rtarget

r rtarget r rtarget r
rtarget

r r

Reinvest in Neighborhoods
Rehabilitation of vacant and abandoned
homes Development of anchor projects that can be a catalyst to reposition communities Develop Community Plans with local organizations; identify overlooked assets; and re-brand neighborhood.

Program Priorities
Focus on code enforcement Increase the number of demolitions &

Incorporate demolition into the strategic approaches Increase the volume of rehab and renovation Provide affordable housing Pursue innovative land reutilization

Affordable Scattered Site Housing

Annually the city awards funds to develop housing,

mainly for low income families. Low Income Housing Tax Credits are combined with City funds to keep the rents affordable. The City worked closely with the State to secure changes in Tax Credit allocation plan that now give a preference to projects addressing vacant properties.

State NSP Areas and Model Blocks

Model Block HTF 500' Buffer HUD Foreclosure Risk (10)
Waterloo Village

East Clark Collinwood Village Spruce Up

Ashbury

East Central Fairfax Bridgeport Ohio City 98 Great Homes W. 58th St. Variety Village Buhrer Rowley Kingsbury Mt. Pleasant Morgana

Artisan/Moreland

Marvin Corlett

Spokane

.
City of Cleveland Department of Community Development
0 0.5 1 2 3 4 5 Miles

January, 2009

HUD NSP 2 - Target Areas

1. 2. 3. 4. 5. 6. 8. 10. Ansel / Newton Buckeye-Larchmere Colfax / Garden Valley Collinwood Corlett Detroit-Shoreway / Cudell Fairfax Glenville 12. 13. 14. 16. 18. 19. 20. Lee-Miles Mt. Pleasant Old Brooklyn Slavic Village St. Clair-Superior Tremont / Clark Westown

10

18 1

6 3 19

13 16 20 5

12 14

City of Cleveland Department of Community Development

.
0 0.5 1 2 3 4 5 Miles

July, 2009

Neighborhood Stabilization Act

Eligible Uses establish financing mechanisms for purchase/redevelopment of foreclosed (e.g. softseconds, loan loss reserves, shared-equity loans for low- and moderate income homebuyers). purchase and rehabilitate abandoned/foreclosed homes for sale, rent, or redevelopment. establish land banks for foreclosed homes. demolish blighted structures. redevelop demolished or vacant properties. Limitations purchase price must be below current market appraised value. rehab to extent necessary to bring to code; allows energy efficiency improvements. sales price must be equal or less than cost to acquire and rehabilitate. revenue generated in excess of acquisition/rehab costs over ensuing 5 year period must be reinvested to achieve community affordable housing/neighborhood stabilization goals. funds subject to CDBG rules and regulation, unless otherwise stated. state/city matching funds not required.

Focus on Improving Existing Housing

Emphasize rehab & renovation, Promote model blocks in all but the stable

neighborhoods, Support land reutilization, Offer incentives for energy efficiency and green building.

Challenges
A City of Choice means different things to different people Clevelands success depends upon offering a range of quality
living environments. The Community Development community must promote and nurture the specific neighborhood attributes that make their areas appealing.

Every partner will need to act where they can add value and make room for new approaches. Every partner will need to understand this unprecedented opportunity and adjust their programs to create the best outcome.