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City selects Penrose to redevelop McCafferty Health Center site into 72‑unit senior affordable housing; committee approves transfer and development agreement
Summary
Committee approved ordinance to transfer City‑owned McCafferty Health Center parcel at 4242 Lorraine Avenue to Penrose Holdings LLC for redevelopment into senior affordable housing and ground‑floor nonprofit space; developer said the project targets 55+ households at 30–70% AMI with tax credit financing planned.
The committee approved legislation authorizing the director of public health to transfer the city‑owned property at 4242 Lorraine Avenue to the Department of Community Development and Economic Development, and to permit sale or lease to Penrose Holdings LLC for redevelopment.
City staff said the McCafferty Health Center site in Ohio City is being repositioned after city and partner health services consolidated nearby. The Department of Community Development presented that Penrose was selected through an RFQ process that emphasized commitments to Cleveland small, minority and female business participation and community‑defined program uses. The city noted continuing engagement with Ohio City Inc., neighborhood block clubs and social service providers.
Jeff Mills, director of development for Penrose, told the committee the project will target seniors age 55 and over and serve households between 30% and 70% of area median income (AMI). Penrose said the current concept is a 72‑unit senior building with ground‑floor nonprofit or social‑service uses and that the team is preparing a Low‑Income Housing Tax Credit (LIHTC) application to be submitted at the end of the month. If awarded a 9% LIHTC, the developer expects design and financing work through early 2026 and construction completion by mid‑2027.
Council members and staff noted neighborhood amenities near the site, including transit access, nearby MetroHealth facilities and a grocery store, and they said the project should help seniors wanting to downsize while remaining in the neighborhood. The committee chair and other members praised the community engagement process; Councilman McCormick and DPS chair said DPS had recommended approval.
The committee approved ordinance 42‑2025; city staff said the transfer will allow Penrose to secure site control for tax credit financing and pursue a May funding award. Penrose representatives confirmed they own and manage multiple affordable housing projects in Cleveland and elsewhere and that they will pursue construction and financial closing schedules contingent on tax credit awards.
Why it matters: The site moves from partial public health use to a proposed 72‑unit affordable senior building targeted at very low‑ and low‑income households, with explicit outreach and community engagement commitments and a noted emphasis on small and minority business participation in development.
