City committee discusses sale of city lots for 71-unit senior housing on Lancashire Road

Cleveland Heights City Council committee members on Feb. 3 reviewed a first reading of an ordinance to authorize the mayor to execute a real estate purchase agreement for about 1.049 acres on Lancashire Road for a proposed 71-unit senior housing project by National Church Residences.

The proposed project would acquire two city-owned parcels adjacent to the vacant Unitarian church site and construct a four-story building with ground-floor community space. The developer will seek Low-Income Housing Tax Credits (LIHTC) and intends to serve seniors with rents tied to area median income at 30%–80% AMI.

City staff described sale terms discussed in principle: a sale price of $500,000 for the two city parking lots, with $306,000 held in escrow until completion of agreed parking improvements (including 20 on-site spaces and roughly 28 angled curbside spaces). Staff said the escrowed amount approximates the cost of the replacement parking. Contingencies listed by staff include award of LIHTC to the developer, negotiation and execution of a development agreement, approval of a lot resubdivision or easement to return 20 spaces to the city, and approvals from necessary boards and commissions. The developer and city also plan at least one additional public community engagement meeting following LIHTC award and prior to final plan submissions.

Kevin Brown, director of senior housing development for National Church Residences, said the firm is a nonprofit that manages senior communities nationally and that the project is intended as new construction serving seniors in the Coventry business district. Brown confirmed the LIHTC application deadline is Feb. 27 and that site control is required in advance of the application. He said the project will include replacement parking on-site and additional angled curbside parking and staff noted Coventry garage capacity and other lots in the district as part of the parking analysis.

Brown also addressed taxation: “I wish that were the case, but it is not,” he said when asked whether the property would be tax-exempt because National Church Residences is a nonprofit. Staff added that the project, like other multifamily projects, would be eligible for the city’s CRA tax abatement program (described in the meeting as a possible 10‑year, 100% abatement), and that state law enacted recently governs assessment and taxation of affordable housing financed through LIHTC.

Council members asked about prior appraisals for the two parking parcels; staff said the two appraisals together total just over $1 million. The packet shown to council listed the draft site plan, parking memo and proposed terms; staff said an additional community meeting would be scheduled and council would be invited. Several council members requested that the item be referred to the Planning & Development committee for further review prior to final council action to allow time for staff and the developer to respond to questions.

This item was presented as a first reading; no final council vote was taken during the committee meeting.

Clarifying details provided at the meeting included the 71 one‑bedroom units proposed, the sale price of $500,000 for the two city parcels with $306,000 of that held in escrow for parking improvements, an LIHTC application deadline of Feb. 27, and staff assertions that parking capacity in the district can absorb some loss of public spaces.

Next steps outlined in the meeting include referral to the Planning & Development committee for additional review and at least one follow-up community engagement meeting after LIHTC award and prior to final approvals.