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CDF reports county ARPA funding helped mobilize nearly $75 million for 1,803 income‑restricted units
Summary
A two‑year update from Community Development Finance (CDF) said Hamilton County’s ARPA commitment enabled rapid deployment of gap financing, producing commitments to build or preserve 1,803 income‑restricted units across 54 projects and leveraging roughly $13 in total project investment for every $1 of public subsidy.
Luke Bloetcher, a senior representative from Community Development Finance (CDF), told the Hamilton County Board of County Commissioners on March 4 that the county’s early American Rescue Plan Act (ARPA) commitment “validated this concept” and allowed the program to move quickly to fill financing gaps that developed after historic construction‑cost escalation.
The update focused on two years of operations beginning September 2022, saying county ARPA dollars were the single largest public source and enabled CDF to structure rapid gap financing, capacity building for smaller developers and conditional commitments to improve competitiveness for state tax credits.
CDF presented the program’s topline results: combined public and private investments committed close to $75,000,000 across 54 projects, producing commitments for 1,803 income‑restricted units. Bloetcher said 85% of those units are restricted at or below 60% of area median income and that county ARPA funds supported 25 projects totaling 840 units — exceeding the county contract target. He added: “If this didn’t exist, these projects would have died.”
CDF explained the local market context that shaped its strategy: starting in 2022, construction costs rose sharply, with agency application data showing roughly 45% cost inflation over three years, while federal and state subsidy levels remained flat. CDF said that reality pushed many projects “underwater” and made local gap financing essential.
The presentation described program mechanics: CDF acts as a nonprofit real‑estate lender that aims to underwrite projects while “managing risk” for federal funds. County funds were used in a variety of ways — grants, loans and conditional commitments — to leverage federal, state and private money. CDF reported an overall leverage ratio of about 13:1 when public investment is combined with private and other project capital; the total project cost represented by the 54 projects is roughly $500 million.
CDF also detailed stage‑of‑project metrics from an internal snapshot taken a few months before the presentation: 17 projects (577 units) completed; 20 projects (557 units) under construction; and 17 projects (773 units) pending construction. CDF reported an average public subsidy per income‑restricted unit of about $26,000 and an average CDC loan size of roughly $800,000 when CDF provided debt rather than grant funding.
Commissioners asked about geographic distribution and priorities outside Cincinnati. Bloetcher said the program prioritized smaller projects, minority and early‑stage developers, and projects in nine jurisdictions and 16 city neighborhoods, but acknowledged the pipeline outside the city remains weaker and will require ongoing capacity building.
Commissioner comments reflected support for continuing coordination between county, city and CDF and for the need to explore long‑term local funding sources rather than one‑time ARPA allocations. CDF recommended three phases going forward: securing additional patient private capital and philanthropic commitments, pursuing sustained public revenue streams for long‑term program continuity, and continuing coordination to maximize competitive state awards such as low‑income housing tax credits.
CDF underscored several targeted priorities under way: work on small‑scale reentry housing (emphasizing 4–8 unit models rather than large congregate projects), collaboration on tiny‑homes approaches (noting building‑code and zoning barriers), and partnerships to increase “4%” tax‑credit development capacity. Bloetcher said conditional commitments negotiated with the Ohio Housing Finance Agency were being used to improve applicants’ competitiveness for state awards.
The presentation closed with CDF urging continued county leadership, noting the county’s early ARPA investment was the defining factor enabling near‑term impact. Bloetcher said the program’s long‑term success depends on predictable, multi‑year funding and continued coordination among county, city and CDF.
