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Committee moves to convert $200,000 Lutheran Metropolitan Ministry loan to grant to support transitional housing

Cuyahoga County Community Development and Housing Committee · March 4, 2025
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Summary

The Cuyahoga County Community Development and Housing Committee voted to advance a resolution converting a $200,000 loan to a grant for Lutheran Metropolitan Ministry's transitional housing program, citing an administrative error and the nonprofit’s existing work rehabbing small multi-unit homes near St. Clair–Superior.

The Cuyahoga County Community Development and Housing Committee voted to send Resolution 20250077 to the full council for a second reading after staff recommended converting a $200,000 affordable housing loan for Lutheran Metropolitan Ministry into a grant.

Sarah Parks Jackson, director at the Department of Housing and Community Development, told the committee the conversion corrects an administrative error and aligns the award with two earlier grants the county provided to Lutheran for transitional housing. "It was my fault. It should have been a grant," Jackson said, explaining staff discovered the loan label while preparing paperwork.

Jackson said Lutheran's program focuses on the St. Clair–Superior neighborhood, where the nonprofit acquires and rehabilitates vacant houses into small multi-unit homes that include supportive services for families moving out of shelters. She estimated the department previously provided "close to $900,000" in grant funding to Lutheran; converting the $200,000 award would bring that total to about "1,000,001" as stated in the transcript.

Committee members asked whether Lutheran had repaid any of the funds while the award was labeled a loan; Jackson said no payments had been made because Lutheran is just getting started. She described the department's routine loan structure as 0% interest, deferred and forgivable after a 20-year affordability requirement, which also allows the county to place a lien or recapture funds if affordability is not maintained. Jackson said the department makes an internal determination—applicants "apply for funding" and staff decide whether a particular award should be structured as a loan or grant.

On measuring client outcomes, Jackson said the Department of Housing and Community Development does not directly track social-service outcomes; homeless services and the continuum of care track individual-level success and referrals from shelters. Committee members asked for more detail on inventory and outcomes; Jackson said she would provide the committee with the current inventory number and recommended scheduling a 15-minute presentation and a site tour by Lutheran so members could see the program in operation.

After discussion about eligibility, location and program design, Chair moved the item to the council for a second reading; the committee approved the motion by voice vote.

Next steps: Resolution 20250077 will be scheduled for second reading before the full council. The committee asked staff to provide additional inventory and funding-history details and to arrange a Lutheran presentation and possible site tour.