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http://www.clev.frb.org/ccca/citypart.htm Last modified 6/28/96
Over the past five years, the City of Cleveland has enjoyed much success in
encouraging investment in its neighborhoods. City Hall has catalyzed efforts to build new
housing and repair existing homes, revitalize commercial districts, retain and create jobs,
and reduce poverty.
Terri D. Hamilton, director of Cleveland s Department of Community Development, and India Pierce Lee, director of the city s new Empowerment Zone, explained at the Federal Reserve Bank of Cleveland's Community Reinvestment Forum how Cleveland has been achieving its redevelopment goals.
Hamilton credits much of the city's success to developing partnerships with neighborhood Community Development Corporations (CDCs). The city provides operating support and project funding for more than 30 CDCs to serve as neighborhood advocates and developers. The CDCs have played a critical role in implementing the city's master plan by identifying and developing many of the housing rehabilitation, construction, and commercial development projects. This partnership will result in more than 1,000 new homes, some of which are already being built, and the development of several new shopping plazas.
Cleveland also has created partnerships with financial institutions. The city has reached agreements with eight banks and the Federal National Mortgage Association, committing these funders to lending and investment goals. The result: approximately $1.28 billion is now available for residential purchase, construction, rehabilitation, and small business development. The agreements encourage financial institutions to seek out good lending opportunities in Cleveland and fuel projects developed by the CDCs.
Hamilton emphasized that the city must provide quality services to support its role in these partnerships. To that end, the Community Development Department has expanded its efforts to assemble property for development projects. The department is also strengthening code enforcement to encourage landlords and homeowners to invest in their neighborhoods. The Division of Building has been reorganized to ensure more efficient building plan examinations and safety inspections as construction projects move forward and are presented for approval.
Partnerships are taking place in City Hall as well. The Community Development and Economic Development Departments are working together to acquire land for industrial expansion, and to make loans available to neighborhood businesses. They are also working with the Utilities Department to bring cheaper electric service from the city-owned electrc company to Cleveland's neighborhoods.
Complementing the Community Development Department's efforts, in 1995 Cleveland was awarded one of eight Empowerment Zones in the nation. The Empowerment Zone program was developed by the federal government to redevelop poor inner-city and rural areas. Its goals are to create jobs and entrepreneurship opportunities and to stabilize residential neighborhoods by funding economic development activities, labor force preparation programs, and housing initiatives.
India Pierce Lee said the city has developed a 10-year strategic plan for Cleveland's zone that links job training with economic development, employment, and home ownership opportunities in a portion of the city s east side. The federal government is providing $90 million to implement the strategic plan and is making an additional $87 million in loans available to complete housing, commercial, and industrial developments.
The city recently approved the first five loan applications, totaling $7.6 million, using Empowerment Zone funding. The loans will finance the construction of 33 market-rate homes, renovation of a 39-unit apartment building, renovation of 120 homes for lease-purchase by low- and moderate-income families, and one commercial and one industrial development.
Hamilton and Lee said Cleveland's progress over the past five years demonstrates that neighborhoods are a good investment for the city and its partners, and that low- and moderate-income communities can have a bright future.
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