Housing Strategies-programs 1.29.13 for Community & Economic Development Committee

7/29/2019 Housing Strategies-programs 1.29.13 for Community & Economic Development Committee

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City of Cleveland Housing

Strategies:Approaches for Improving Our

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


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Mission of the City of Cleveland

We are committed to improving the quality of life inthe 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, sho

p, study, play and grow old.


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Principal Functions of the Department of Community

Development

The Department of Community Developmentimplements programs designed to conserve

and expand the housing stock; revitalizecommercial areas; acquire,

maintain, andmarket vacant land.


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General Principles

To create healthy communities of choice,new physical development must beaccompanied by efforts to maintain or

strengthen the existing housing stockeither through demolition or improving itthrough rehab.


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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 existinghouses 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 renovatedhouse.

Increase the funding to support the strategies


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HUD National Objectives for CDBG

Provide assistance to low and moderate

income familiesPrevent and alleviate slum & blight

Address an urgent need.


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Core Strategic Framework

Strategies are principally set forth in 4documents:

The Connecting Cleveland 2020 CitywidePlan,

The Mayors UrbanAgenda,

The Neighborhood Typology, and The Consolidated Plan.


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Market Conditions

High Foreclosure Rate

Declining property values

Lower demand in a slow growth area High low-mod population


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Slow Growth

Population decline:

1950 948,000

2000 - 478,000

2010 393,804


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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%)


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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 forincreasing financial literacy so that there are morepeople with credit scores and savings

Marketing the city, its neighborhoods and housing


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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 isusually 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 offeatures, characteristics, or amenities to the house.

3. Restoration Incorporating the re-creation ormaintenance of historic features, internally andexternally, to the rehab or renovation of a house


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A Focused & Strategic Approach

The strategies designed by CD are designed tohave activity in every SPA/neighborhood, andmatch the intervention with the needs.

Limited resources and large demand require afocused approach: City-Wide Plan Neighborhood Typology

Priority Areas (for housing as well as for retail &industrial)


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MIDTOWN

LEAGUE PARK

FORGOTTEN TRIANGLE

SUPERIOR FI VE

MIDLAND

WHITE M OTORS

UPPER CHESTER

BEAVER AVENUE

COIT II

FRANK AVENUE

COIT RD

MAINGATE

EAST 5 5TH & WOODLAND

PERSHING & I-77Mt. Pleasant

CorlettMorgana

Fairfax

Kingsbury

Waterloo Village

W. 58th St.

East Central

Ashbury

Bridgeport

98 Great Homes

East Clark

Spokane

Buhrer Rowley

Marvin

Artisan/Moreland

Collinwood Village Spruce Up

Urban Community School Neighborhood Plan

Neighborhood Typology and Priority AreasNeighborhood Market Typology

DETAILED RANGE

OVER 4.71

4.71

4.57 REGIONAL CHOICE

4.43

4.29

4.14

4.00

3.86

3.71

3.57 STABLE

3.43

3.29

3.14

3.00

2.86

2.71 TRANSITIONAL

2.57

2.43

2.29

2.14

2.00 FRAGILE

1.86

1.71

1.57

UNDER 1.57 DISTRESSED

NON-RESIDENTIAL

City of ClevelandDepartment of Community Development

.0 1 2 3 4 50.5

Miles July, 2008

Neighborhood/SPA

Model Block

Model Block-HTF

Strategic Priority Areas (CD, ED, CPC)

SII Areas (NPI)


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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 20083) Net Change in Number of 1 to 3 Family Homes from 1990

to 20084) Percent of 1 to 3 Family Homes Transferred by Sheriffs

Deed from 2005 to 20085) Homeownership Rate in 20076) Percentage of 1 to 3 Family Homes Boarded or

Condemned from 2005 to 20087) Percentage of 1 to 3 Family Homes Rated as Fair or

Worse by the Cuyahoga County Auditor as reported in the2007 tax file.8) Percent of Residential Structures Surveyed as Vacant and

Distressed in 20089) Demolition Rate of 1 to 3 Family Homes from 2006 to

2008

Neighborhood Typology Variables


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Neighborhood Typology

Origination

Purpose

Goal

Typology 2.0released in 2007focus on residential

structures combination of 7 variables

Comprehensive analysis ofneighborhood and marketconditions.

A tool for planning, development,and program strategies.

Identify market strengths andweaknesses.

Develop program strategybased on market need.


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Typology Program MixRegional

Choice

Stable Transitional Fragile Distressed

CodeEnforcement

Action

Senior Initiative

Rehab

conv.And widely avail

Rehab -subsidized target targetExterior

VacantAffordable target target

Large scaleprojects -strengthenasset base

Demo andLandbank target target


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Reinvest in Neighborhoods

Rehabilitation of vacant and abandonedhomes

Development of anchor projects that canbe a catalyst to reposition communities

Develop Community Plans with localorganizations; identify overlooked assets;and re-brand neighborhood.


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Program Priorities

Focus on code enforcement Increase the number of demolitions &

Incorporate demolition into the strategicapproaches

Increase the volume of rehab andrenovation

Provide affordable housing Pursue innovative land reutilization


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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 Cityfunds to keep the rents affordable.

The City worked closely with the State to secure changesin Tax Credit allocation plan that now give a preferenceto projects addressing vacant properties.

S NSP A d M d l Bl k


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Corlett

Morgana

Fairfax

W. 58th St.

Ashbury

Ohio City

Kingsbury

Bridgeport

Spokane

East Clark

East Central

Marvin

Waterloo Village

Artisan/Moreland

Buhrer Rowley

Variety Village

Collinwood Village Spruce Up

98 Great Homes

Mt. Pleasant

City of ClevelandDepartment of Community Development .

0 1 2 3 4 50.5

Miles January, 2009

State NSP Areas and Model Blocks

Model Block HTF 500' Buffer

HUD Foreclosure Risk (10)

HUD NSP 2 T A


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4

6

12

20

19

16

8

3

18

1

2

10

13

14

5

HUD NSP 2 - Target Areas

.City of ClevelandDepartment of Community Development July, 20090 1 2 3 4 50.5 Miles

1. Ansel / Newton 12. Lee-Miles

2. Buckeye-Larchmere 13. Mt. Pleasant

3. Colfax / Garden Valley 14. Old Brooklyn

4. Collinwood 16. Slavic Village

5. Corlett 18. St. Clair-Superior

6. Detroit-Shoreway / Cudell 19. Tremont / Clark8. Fairfax 20. Westown

10. Glenville


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Neighborhood Stabilization Act

Eligible Uses establish financing mechanisms for purchase/redevelopment of foreclosed (e.g. soft-

seconds, loan loss reserves, shared-equity loans for low- and moderate incomehomebuyers).

purchase and rehabilitate abandoned/foreclosed homes for sale, rent, orredevelopment.

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 periodmust be reinvested to achieve community affordable housing/neighborhoodstabilization goals.

funds subject to CDBG rules and regulation, unless otherwise stated. state/city matching funds not required.


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Focus on Improving ExistingHousing

Emphasize rehab & renovation,

Promote model blocks in all but the stableneighborhoods, Support land reutilization, Offer incentives for energy efficiency and green

building.


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Challenges

A City of Choice means different things to differentpeople

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 theirareas appealing.

Every partner will need to act where they can add

value and make room for new approaches.

Every partner will need to understand thisunprecedented opportunity and adjust their programsto create the best outcome.

Documents

Housing Strategies-programs 1.29.13 for Community & Economic Development Committee