Cuyahoga County committee advances $5.1 million in HOME loans for nine affordable housing projects

The Cuyahoga County Community Development and Housing Committee on Thursday moved to advance Resolution 2025-0270, authorizing up to $5,100,000 in gap financing from the county’s HOME fund for nine affordable housing projects that together are intended to create 557 new units and preserve 147 units through rehabilitation.

Tony Scott, director of the county Department of Housing and Community Development, told the committee the loans would be 20-year, forgivable loans provided from the HOME fund. "These will be 20 year affordable housing loans, and they will be forgivable. And these are all coming out of the HOME fund," Scott said.

The resolution covers nine separate awards (items 1–9 on the committee agenda). Scott gave a brief overview of each project and the not-to-exceed amounts specified in the legislation: Cleveland West Veterans Housing (up to $1,000,000 to develop 62 units at 3311 W. 70th St., Cleveland); Huff Senior Independent Living (up to $500,000 for 55 permanent supportive units at 89 Huff Ave., Cleveland); Cleveland Heights Senior Housing Limited Partnership (up to $600,000 for 71 senior units at 2728 Lancashire Blvd., Cleveland Heights); Depot in Detroit project (up to $500,000 for 60 multifamily units at 10300 Detroit Ave., Cleveland); Gateway 66 limited partnership (up to $500,000 for 80 multifamily units at 1521 E. 66th St., Cleveland); Fairfax Innovation Square 2 (up to $500,000 for 60 multifamily units at 2287 E. 103rd St., Cleveland); Kirby Manor Senior Housing Limited Partnership (up to $500,000 to rehabilitate 147 senior housing units at 11500 Detroit Ave., Cleveland); Midtown Lofts LLC (up to $500,000 for 120 multifamily units at 3300 Payne Ave., Cleveland); and Walton Senior LLC (up to $500,000 for 52 senior units at 3577 Walton Ave., Cleveland). Scott said the loans are part of a capital stack and will be targeted to units meeting the department’s affordability standards; department staff said the projects will target households at about 60% of area median income.

Committee members asked about the funding source and loan terms. A committee member asked whether the money was from the county general fund; Scott said the funds come from the HOME allocation the county receives from federal sources and are not from the general fund. When asked about affordability thresholds, Scott and department staff said the units will align with AMI-based thresholds (approximately 60% AMI as indicated by staff).

Scott also told the committee that each project will follow its own timeline. One developer notified staff of a possible closing challenge, and Scott asked the committee to waive the second reading for the resolution to help accommodate a developer's timeline. The committee agreed to advance the item with suspension of the second reading: the chair moved the item to the next council meeting with second-reading suspension and a committee member seconded the motion; the committee approved by voice vote.

Representatives of project developers attended and introduced themselves to the record: Laura Bustani and Jennifer Chandler of CHN Housing Partners (Cleveland West Veterans Housing and Huff Senior Independent Living), Greg Baron of Volker Development (Walton Senior project), and Kevin Brown of National Church Residences (the Lancashire Road project and the Kirby Manor renovation).

The loans are described in the resolution as 20-year forgivable affordability loans and are to be made from the HOME fund; Scott said the loans become forgivable if the units are maintained as affordable through the affordability period. The resolution does not waive the second reading permanently; the committee approved suspending the second reading so the item can proceed to the next full council meeting with second reading suspension.

No roll-call vote tally was recorded in the committee discussion; members approved the procedural motion by voice vote. The committee adjourned after advancing this item and had no additional matters for consideration.