Council committee hears proposal to create neighborhood development sub‑fund for Cleveland CDCs

City council’s DPS committee heard testimony May 13 on Ordinance 113, a proposal to create a neighborhood development sub‑fund intended to give community development corporations (CDCs) more stable, flexible and transparent funding for neighborhood planning, housing and small‑business work.

Ed Stockhausen of Cleveland Neighborhood Progress (CNP) walked the committee through the ordinance’s design and the rationale drawn from a multi‑year process with CDCs, council members and city staff. Stockhausen said the proposal would formally enumerate five core CDC activities — community engagement, neighborhood development, neighborhood planning, events/promotions (marketing) and partnership-building — and require standardized monthly reporting with quarterly summaries to elected officials.

John Analifo (a long‑time CDC director) urged the council to “pass Ordinance 113” to simplify reimbursement and reporting, describing current Community Development Block Grant (CDBG) reimbursement rules as slow and administratively burdensome. “This is why we feel that Ordinance 113 … will make it easier and more transparent for the work we do and for the residents that we serve,” Analifo said.

Stockhausen explained one administrative change built into the draft: rather than the current reimbursement model that can leave CDCs waiting months for first CDBG payments, the sub‑fund would allow prorated quarterly payments so organizations have predictable cash flow. CNP’s recent Advancement & Resilience Initiative (ARI) grant round was cited as a pilot — CNP awarded $2,000,000 to CDCs this fiscal year — and Stockhausen and CDC leaders said the city’s roughly $8.6 million in annual CDC allocations is the largest public funding lever available.

Several CDC leaders testified about operational strain and long waits for reimbursements under current rules. Joy Johnson, executive director of Burten Bell Carr, said the sub‑fund “gives CDC stability year over year” and stressed residents’ reliance on consistent services. Dr. Lee of MetroWest and other CDC executives likewise called for more flexible eligible activity lists and faster, predictable payments.

Council members asked several technical questions: how the proposed review committee (13 members in the draft) would operate, whether the ordinance would require an action‑plan update to HUD if CDBG uses shifted, and how existing CDBG grants or allocations might be swapped or transitioned. Director-level staff and Stockhausen said the ordinance itself does not appropriate funds; the council would identify funding in the budgeting process or consider a swap of CDBG allocations. The committee did not vote on Ordinance 113; members requested follow‑up details, including an itemized list of outstanding reimbursements owed to CDCs and options for near‑term funding while federal CDBG levels remain uncertain.

Committee chair and sponsors said the ordinance creates a governance and reporting structure that, if funded, intends to protect neighborhood capacity and reduce administrative friction. No appropriation was made at the hearing; council and administration will continue discussions about funding and next steps.