CITYWIDE PLAN

HOUSING

Connecting Cleveland

2020 Citywide Plan

HOUSING

OVERVIEW

Cleveland is a city full of older homes with unique architectural styles not typically found in newer

homes, much of which was built in the early 1900s. Many of the homes were built in close

proximity to factories, giving residents access to available jobs. As advancement in transportation

grew, the more affluent residents began to move further out, abandoning the housing in the

central city. As people began to move from the inner city to the suburbs, the quality of housing

began to decline. Many of the houses were converted to two-family and multi-family homes to

accommodate the new immigrants that were moving to the area. These new immigrants

developed several different, and unique, ethnic neighborhoods in the city. Cleveland’s industrial

boom began to attract a great number of African Americans from the south looking for

employment opportunities. As the African American population grew, racial tensions greatly

increased, and many of those who could afford it moved out to the suburbs. As a result the

number of homes that were either rented out or abandoned increased.

The Urban Renewal (Housing Act of 1949) and the development of the highway system (Federal

Highway Act of 1956) displaced many residents, and contributed to large concentrations of poverty

in many neighborhoods on the east side. Redlining and white-flight had a significant impact on

the ability of homeowners to maintain their property. As a result, the quality and value of housing

began to decline and people moved out at alarming rates, which caused a decrease in the city’s tax

base.

During the 1990s Cleveland was able to utilize the Community Reinvestment Act of 1977 to get

banks to invest in the City’s revitalization efforts. Residents in areas that were once redlined by

banks could now receive loans for home improvement or for the purchase of new homes. By 2002

Cleveland had risen to number one in new housing starts in Cuyahoga County.

As we look to the future, we should focus not just on

the number of housing units constructed, but also on

the quality and type of housing in order to offer

residents a greater variety of housing options so that

Cleveland becomes a “community of choice”. Income

and lifestyle are critical factors when it comes to

deciding where one is going to live. By using some of

the assets we currently have, we can begin to create

options for people of all ages, incomes, and lifestyles.

There is tremendous opportunity for residential

development in areas where retail and industry are no

longer viable, particularly along many of our main

streets. In some cases vacant buildings can be

converted from another use (factory, school) to

housing, as has been done for example, with the

upscale lakefront condos now known as Quay 55 (a

former automobile storage facility) and Famicos

(formerly a women’s college). We must focus on

creating sustainable neighborhoods that are safe and

have access to basic services, shopping, and

Quay 55, a former car warehouse, is an

example of how vacant commercial and

industrial buildings can be adaptively

renovated as housing.

[Lakefront –

Goodrich-Kirtland Park

]

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opportunities for recreation to address the needs and desires of all residents.

TRENDS

Some interesting trends emerge from a study of census data that give a clearer picture of the

challenges faced by the city of Cleveland in the area of Housing:

• Household Size: The average household size in Cleveland is 2.4 persons per household.

Single-person households account for just 29% of Cleveland’s owner-occupied units and

41% of the renter-occupied units; whereas 2-to-4 person households account for 60% of

the city’s owner-occupied units and 48% of renter-occupied units.

• Resident Tenure: The decade ending in 2000 saw a decline in the total number of

occupied

units (both rental and owner-occupied). However, the

percentage

of occupied units owned

by the people who were living in them increased from 48% to 49%. This is still low by

suburban standards (where 70% of total housing units are owner-occupied).

• Age of Residents: As the “Baby Boomers” reach 65, housing that serves the needs of seniors

will need to grow proportionately if Cleveland wants to hold on to a significant segment of

its population. Within the next 10 years almost 10% of the city’s residents will be entering

their senior years. The development of new senior housing

here

will allow these residents

to remain in their communities and close to their relatives.

• Housing Units: The total number of housing units available in the city of Cleveland

decreased by 4% between 1990 (224,361) and 2000 (215,856). The largest drop was in

Central, one of the oldest and poorest neighborhoods in the city, where available units fell

by 32%. Many of the housing units in this neighborhood were in such poor condition they

needed to be demolished; the good news is that this made room for new housing

development. It was the downtown area, however, that saw the biggest increase in

available housing (up 48%), as part a strategic effort to make downtown more vibrant.

• Vacancy Rate: Although the vacancy rate in Cleveland rose only slightly between 1990 and

2000, from 11% to 12%, it is much higher than the 5% vacancy rate reported by the

suburbs at the end of the same period. The Central and Riverside areas saw the largest

drop in vacancies in the city due to the large number of demolitions, while Lee Miles and

Downtown saw a significant increase in vacancies. Many of the new Downtown housing

units, however, were just built and had not yet been occupied by the time the 2000 Census

was taken.

• Housing Value: According to the 2000 Census, the median housing value of owner-

occupied units in the city was $71,000 as compared to $128,000 in the suburbs. The

neighborhoods closer to the border of the city have higher median values than the

neighborhoods closer to the central city. The near east side neighborhoods (with the

exception of Central, which had a high number of demolitions) have the lowest median

value, ranging between $32,000 and $55,000. Downtown and Kamm’s Corners claimed

the highest median value, ranging between $100,001 and $145,833.

• Affordability: The affordability of housing in the city of Cleveland remained constant

between 1990 and 2000. Relative to median family income, housing within the city is

slightly less affordable in comparison to that in the county’s suburbs. Residents in the city

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of Cleveland have a median family income that is 62% greater than the median price of

housing, while the suburban residents have a median income that is 78% greater than the

median price of housing.

• Residential Building Conditions: Housing located closer to the central and near east side of

Cleveland is in the poorest condition. The housing in neighborhoods along the border of

the city is mostly rated above average; but a disturbing 42% of the units in Cleveland are

rated below average by the County Auditor’s office—as compared to 5% of the housing in

the suburbs.

• Age of Housing Stock: The city of Cleveland has the oldest housing stock in Cuyahoga

County. According to the County Auditor’s records, the median year to which residential

structures date in Cleveland is 1920, as compared to the suburban median (1955). The

oldest housing in the city is found in the neighborhoods immediately adjacent to

Downtown, while the newest is located in Downtown Cleveland itself and in the

neighborhoods that lie closer to the city’s suburban borders.

Sources: US Census, Cuyahoga County Auditor, The Center for Community Solutions, Case Western Reserve University

ASSETS

Cleveland has a number of important assets in the area of Housing that can be built upon. These

include

Citirama: An annual event inaugurated in 2003

by the Homebuilders Association of Great

Cleveland (HBA) that encourages developers

who might not otherwise have considered it to

build in the city. The goal is to hold an annual

Citirama event in each of Cleveland’s 36

neighborhoods promoting the urban lifestyle,

the special character and advantages offered by

each neighborhood, and the many housing

options now available. and Unlike many of the

newer “cookie cutter” developments, the

homes built for Citirama have different

architects, which offer a variety of housing

styles that complement the neighborhood,

including many energy-efficient/environmentally

friendly “green” ideas.

Cityrama 2004 in Glenville neighborhood offers diverse

architectural styles, while maintaining the unique

character of the neighborhood.

Historically Significant Housing: Many of the older homes in Cleveland were built with high quality

building materials and beautiful historic architectural detail. The type of architecture and

decorative elements in these older homes are not typically seen in more modern housing.

Ethnic Neighborhoods: Cleveland’s neighborhoods historically were defined by the many different

ethnic groups that migrated here from other countries in the late 1800s and early 1900s. One of

the remaining ethnic neighborhoods is Little Italy, which is located at the southern edge of

University Circle. Many of the descendants of the immigrants continue to reside in the city. There

has been a recent influx of Hispanic and Asian immigrants. Many of the latter reside in the

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Goodrich/Kirtland Park neighborhood, while the majority of the Hispanic immigrants have settled

on the near west side.

Proximity to Cultural Institutions and

Entertainment Districts: The city of Cleveland

has unique cultural, historic and entertainment

districts that could not be duplicated. These

cultural assets are located within residential

communities such as Tremont, University Circle,

Buckeye-Shaker, North Collinwood, and the

new Downtown residential areas.

Severance Hall, home of the Cleveland Orchestra,

is an example of a cultural amenity which makes

Cleveland neighborhoods unique.

Financial incentives: As a way of encouraging

housing development and home repair, the City

of Cleveland has developed many programs

offering financial assistance or incentives

including help with arranging second

mortgages, property tax abatement, low

interest loans, grants, and rebates. (See Community Development Department Web Site:

http://www.city.cleveland.oh.us/government/departments/commdev/cdind.html.)

Land Bank Program: The City acquires vacant and abandoned property which it then resells

to developers at a low cost. This program

encourages the redevelopment of vacant land

and assists in the elimination of blight and

crime throughout the city.

The Shaker Square Historic District is a great

example of transit-oriented development.

Conveniently Located to Shopping and Transit:

Neighborhoods such as Shaker Square,

University Circle and Ohio City offer residents

access to a variety of amenities and a range of

transportation options that make a

neighborhood a convenient and pleasant place

to live. These neighborhoods are also

pedestrian-friendly places that foster a sense of

community and the development of a

sustainable environment.

CHALLENGES

Cleveland faces a number of specific challenges in the area of Housing that must be addressed:

• Housing Conditions: The aging housing stock coupled with low-income households and

owner disinvestment has contributed greatly to the declining condition of many of the

homes in Cleveland. Repairing older homes that have been neglected for an extensive

period of time can be costly. In most cases homeowners need financial assistance to make

necessary repairs. Vacant and abandoned homes are a sign of decline in a community, and

send that message to prospective homebuyers. One or two boarded up houses on a street

can make the entire street appear to be blighted. Vacant homes tend to attract criminal

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activity. “The US Fire Administration

reports that more than 12,000 fires in

vacant structures are reported each year

in the US, resulting in $73 million in

property damage annually. More than

70% of fires in vacant or abandoned

buildings are the result of arson or

suspected arson.”

Due to the age of

much of Cleveland’s housing stock, the

presence of lead-based paint is a major

concern. Of the 126,784 housing

structures existing in Cleveland as of the

year 2000, according to the County

Auditor’s data, 123,485 were built prior

to 1978, the year the federal

government banned the use of lead-

based paint. Elevated levels of lead

were found in 26.8% of the children whose blood was tested between 1997 and 2000.

The elimination of lead-based paint can be rather expensive and in some cases cost-

prohibitive; but the effects of lead-based paint on the physical and mental development of

children can be devastating.

Vacant houses, such as this one on Benham Avenue,

can negate other positive neighborhood

improvements, like the nearby renovation of Carol

McClendon Par

• Code Enforcement: Building code enforcement is a major concern of many Cleveland

residents, but it is difficult to enforce the code on residents that do not have the financial

means to make necessary repairs.

• Absentee Landlords: Too often absentee landlords do not maintain their properties,

contributing to a decrease in property value. Experience has shown those that do not live in

close proximity to their property typically are not concerned with maintenance issues, and

when made aware of them do everything possible to avoid making necessary repairs.

• Affordability: The lack of affordable housing can lead to overcrowding, lost utilities, lack of

home maintenance, homelessness, or sacrificing other necessities such as food or

medication. Many of the City’s housing assistance programs are funded through CDBG

(federal block grant) funds. With the recent cuts in CDGB funding, Cleveland will have to

find other means to assist its residents.

• Predatory Lenders: Many residents in low-income neighborhoods are taken advantage of by

so-called predatory lenders, people or organizations that prey on the poor and the desire of

many families with limited means or poor credit records to own a home. These loans are

often characterized by higher-than-normal interest rates, penalties for early payoff, and/or

“balloon” payments (the ability to make minimal payments, deferring the rest until some

far-off date—which unfortunately one day rolls around). Predatory lenders typically prey on

low-income minority communities where prime lending institutions do not exist. When

residents cannot make the payments it often leads to foreclosure. The City of Cleveland has

begun to address this issue by adding to the City’s housing law a codified ordinance

addressing predatory lending (Chapter 659).

• Foreclosures: A mortgage foreclosure not only result in the eviction of an individual or

family who may have no other place to go, contributing to the instability of the neighbor

and local economy, it is likely to leave a property in limbo for an extended period of time,

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increasing the number of vacant and abandoned houses. The City loses tax revenue and

the home becomes a potential breeding ground for crime and blight. Over the past

decade, the number of foreclosures in Cuyahoga County has significantly increased.

According to a study done in August of 2005 by Cuyahoga County, there were 2,582

foreclosures in 1995; it was estimated that by the end of 2005, however, the number of

foreclosures

initiated that year

would top 12,000, with the highest percentage occurring in

the city of Cleveland. According to an article in the

Plain Dealer

, HUD reported that

Cleveland had a default rate of 12.46% for FHA loans, the

second highest default rate in

the country

• Disreputable Contractors: Finding an honest skilled contractor can be a challenge for

residents who want to build or rehab their home. Many residents have been taken

advantage of by contractors who charge them for work that is either incomplete or not

done according to code. In addition to being out the money paid to the contractor, the

residents may incur fines and be served violation notices, which places an undue burden on

them and may further impede their ability to improve the condition of their property.

• Providing Transitional Housing or Group Homes—the NIMBY syndrome: There is a need for

transitional housing in every community throughout the city. It can be difficult to find a

location for housing for residents with special needs or those that seek to transition back

into society after incarceration or homelessness (an estimated 16,000-plus individuals per

year in Cuyahoga County). Many of those former prisoners being released back into the

community are returning to the city of Cleveland. Many people do not want these

transitional homes located in their neighborhood because they fear the residents will

present an element of danger to their community; yet this type of housing is sorely needed

and we must find a way to integrate it into the city.

• Land Assembly: Assembling land for large-scale housing projects can be a challenge due to

the number of different property owners that must be contacted and dealt with to

assemble a sufficient number of adjacent lots. Areas once used for industrial or

commercial purposes may be easier to appropriate, but they are usually not zoned for

residential use, and remediation of polluted sites can be an expensive proposition.

• Making Housing in Cleveland Competitive:

If Cleveland is to be competitive in the

housing market, it must be able to offer

a variety of housing

options

. These

days, people are often looking for a

certain

type

of housing that will meet

the needs of their particular lifestyle.

Seniors, for example, typically seek

housing that will allow them to be

mobile and independent. Having

everything on one level can be critical

for some seniors. Senior apartment

buildings should be built no higher than

three stories or levels, in any case; and

senior housing should be located within

walking distance of necessary amenities

Beacon Place: new townhouse development along

Euclid Avenue increases the variety of housing

options in the Fairfax neighborhood

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such as grocery stores, drug stores, recreation, worship, and if possible libraries and community

centers, and transportation, making it easier for them to get around on their own. Young, single

professionals are typically looking for affordable for sale homes or rental units located in a safe area

that offer a variety of shopping and entertainment amenities. Cleveland is in a position to offer just

such housing in areas now designated for mixed-use, where there is access to housing—in the form

of converted period buildings, above-street-level apartments over storefront businesses, lofts with

dramatic urban views, or even combination live-work spaces—as well as to shopping and

transportation. Like seniors and young singles, empty-nesters typically do not want to have to deal

with maintaining a yard and therefore will be more likely to opt for a house with a small yard or an

apartment or condominium. Families with children, on the other hand, may want to be in a

neighborhood that offers larger lot sizes, to allow their children room to play, and homes with

sufficient space to accommodate each member of the family.

POLICIES & STRATEGIES

The overarching goal is to

provide new and renovated housing that meets the needs and preferences of

Clevelanders of all incomes, ages and lifestyles. The

Connecting Cleveland 2020 Plan

therefore puts

forth a comprehensive set of policies relating to Housing citywide, each addressing a key issue—

along with strategies through which we might take immediate steps toward implementing those

policies:

1) Decent and Affordable Housing. Give highest priority among the City’s housing initiatives to

the provision of decent and affordable housing for all Clevelanders.

a. Preserve and fully utilize the existing inventory of housing units with project-based

rent subsidies for low income tenants.

b. Increase the availability of high quality, below market-rate rental housing by

maximizing the use of Low Income Housing Tax Credits, the Ohio Housing Trust Fund,

Tax Exempt Bonds and the HOME Program.

c. Utilize tax abatement to make newly built or rehabilitated, affordable housing

available at the lowest sustainable rent.

d. Promote the development of active tenant organizations to work with management in

buildings with project-based rent subsidies to assure continued housing quality and

affordability.

e. Assure maximum utilization of available tenant-based rent subsidies to make housing

affordable to low income families and individuals.

f. Make homeownership financially feasible for additional households in stable, regional

choice and other neighborhoods with specific reinvestment plans.

g. Educate homebuyers on what is involved in financing and owning a home to increase

their capacity to maintain and retain the home after purchase.

2) Alternative Housing. Attract residents seeking an urban lifestyle by offering alternative housing

types, including townhouses, condominiums, live-work spaces, and converted commercial,

industrial and institutional buildings.

a. Convert vacant commercial and mixed use buildings into housing where other

Housing - 7 Connecting Cleveland 2020 Citywide Plan

amenities are developed to create lifestyle centers.

b. Where a market exists, build townhouses along main streets where there is vacant

land, demolish deteriorated commercial structures as needed and implement a

property holding and maintenance program that makes land held for future use a

community asset.

3) Competitive Places. Create and preserve neighborhoods that are competitive urban places,

characterized by mixed-use development, pedestrian-friendly design and transit access.

a. Increase the number of high-density residential and mixed-use developments near

transit facilities.

b. Utilize Pedestrian Retail Overlay zoning to ensure that developments are pedestrian-

friendly.

c. Locate new housing near greenways increasing the opportunity for alternative means

of transportation.

4) Housing Choice. Provide a diversity of housing types in neighborhoods throughout the city,

maximizing choices for residents of all incomes, ages, ability levels and social circumstances.

a. Create more mixed-income communities.

b. Assess the need for various types of housing in each neighborhood to determine what

type of housing should be developed and develop a strategy for each neighborhood

that markets or re-brands that community to compete for the identified market.

c. Limit financial incentives to developments that demonstrate a new market for housing

within each neighborhood or increases the affordability of such housing for low and

moderate income families.

d. Promote and encourage the use of universal design standards for all newly

constructed housing.

e. Ensure compliance with requirements concerning the creation of accessible units for

all new construction or substantial rehabilitation housing development being assisted

with CDBG, HOME or other federal funds.

5) Code Enforcement. Target residential code enforcement in a manner that helps stabilize

neighborhoods without causing undue hardships for low-income households.

a. Provide training and resources that will allow homeowners to carry out more of their

own maintenance and repair work.

b. Offer a program that will help residents with financial constraints to prepare a budget

that will help them to maintain their home.

c. Develop a marketing strategy to promote existing home maintenance programs.

d. Utilize neighborhood associations or other community organizations to organize

volunteers to help correct code violations. (See, for example,

http://www.rebuildingtogether.org/)

e. Encourage the use of home repair loan programs that offer financing at discounted

rates before using publicly funded loan and grant products to allow low and

moderate income residents to meet their home repair needs.

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f. Reduce housing operating costs through weatherization assistance and energy

efficient building techniques, thereby allowing more money to be available for home

maintenance.

g. Target vacant structures for code enforcement.

h. Use rental registration program to assure that landlords maintain buildings to code.

6) Housing Development Incentives. Ensure that financial incentives for housing development are

the minimum necessary to be effective, and do not result in undue losses of revenue for City

services or the public schools.

a. Reexamine the tax abatement program to determine its effectiveness. Look at changes

that can be made to the policy that will sustain gains made in recent years, while

increasing the revenue for the City and the public schools.

7) Rehabilitation. Give priority to housing rehabilitation as the most effective means of making

affordable housing available to the greatest number of residents.

a. Undertake rehabilitation in areas adjacent to catalytic development projects or in areas

where residential new construction occurred to maximize the investment of public

dollars.

b. Work with non-profit and philanthropic organizations to create a prototype for

redesign of obsolete residential structures common in the city including the Cleveland

double, small multi-family buildings, and modest bungalows.

c. Redirect federal funds to concentrate a larger portion of those resources on

rehabilitation of vacant and abandoned property in areas with a specific

redevelopment plan.

8) Land Assembly. Promote housing development through strategic, proactive land assembly.

a. Work with CDCs, developers, market analysts and the community to identify

acquisition strategies for priority areas for development of housing.

b. Rezone areas to residential that are no longer appropriate for other uses.

c. Remediate brownfield sites suitable for housing.

d. Develop property maintenance capacity and standards for holding property until it

can be reused at its highest and best use.

9) Homelessness. Address homelessness through a multi-faceted strategy that includes

emergency shelters, permanent supportive housing, medical and social services, and job

training.

a. Assure that everyone with an emergency need for shelter has access to shelter.

b. Utilize street outreach workers to seek out those homeless persons living outside the

shelter system.

c. Encourage all homeless service providers and funders to adopt a housing first policy

which seeks to minimize shelter stays and stabilize individuals and families as soon as

feasible within permanent housing linked to supportive services as needed.

d. Continue to support the production of permanent supportive housing units that can

offer the opportunity for long-term homeless persons to leave the shelter system.

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e. Within the shelter system, provide immediate assessment and linkages to case

management and mainstream social services, including agencies providing mental

health care, substance abuse treatment, medical services and assistance to veterans.

f. Work with the criminal justice system to strengthen the support for the reentry into

the community of person returning from incarceration.

g. Expand resources for and educate residents about programs providing assistance in

preventing the loss of housing through eviction or foreclosure.

10) Senior Housing. Develop housing for senior citizens in proximity to shopping, medical

facilities, social services, and public transportation to support their ability to remain

independent.

a. Support development of senior housing that allows for and accommodates

multigenerational families with designs that meet this need.

b. Incorporate green space into new senior housing developments.

c. Support development of senior housing that is located near transportation,

shopping and medical services.

d. Design housing that permits for ADA adaptation should future disabilities dictate.

11) Design. Ensure that the design of new and renovated houses complements the character of

the surrounding neighborhood, through a design review process that is effective, expeditious

and equitable.

a. Develop housing design guidelines for new housing development with

supplemental guidelines for specific areas that will give developers direction prior to

meeting with the design review committee.

b. Develop housing rehabilitation guidelines for minimum standards for the size of

kitchens and bathrooms where significant “gut” rehab is being done.

12) Neighborhood Plans. Locate infill houses where neighborhood plans ensure a supportive

environment for residential development.

a. Limit the distribution of land bank properties for infill housing to areas that have a

redevelopment plan in place.

b. Utilize CDCs and other community agencies to acquire, renovate/reuse, and market

vacant structures and vacant land in areas where plans have been developed.

13) Green Building. Encourage use of “green building” principles in new and renovated housing.

a. Development a zoning code that encourages green building and requires the use of

green building techniques where the cost of the project is not significantly

increased.

b. Offer financial incentives such as low-interest loans or tax abatement to projects

that use green building techniques.

14) Housing Accessibility. Expand the range of residential opportunities for persons with special

housing needs.

Housing - 10 Connecting Cleveland 2020 Citywide Plan

a. Promote and encourage the use of universal design standards for all newly

constructed housing.

b. Ensure compliance with requirements concerning the creation of accessible units for

all new construction or substantial rehabilitation housing development being

assisted with CDBG, HOME or other federal funds.

Specific identified opportunities relating to housing are listed in the

Development Opportunities

section of the Citywide Plan website.

References

1. “Vacant Properties: The True Costs to Communities,”

National Vacant Properties Campaign

August 2005 (

http://www.vacantproperties.org/)

2. Murray, Teresa Dixon, “Defaults blamed on Shady Lending,”

The Plain Dealer

, July 7, 2005.

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