Around the block: Cleveland officials discuss spending $34 million of federal community development grants

Last week’s budget hearings dealt solely with Cleveland’s expected allotment of community development funds from the U.S. Department of Housing and Urban Development. The total expected amount is roughly $34 million. Community Development Block Grant (CDBG) money makes up the majority of that funding. Watch Documenters Jenna Thomas and Jack Brancatelli explain CDBG funds.

Want to see all the nitty-gritty numbers? Cleveland’s Department of Community Development — which administers CDBG funds — built this budget book.

The city recommends devoting $3.4 million of federal funding for home repair programs, with the intention of addressing 100 housing units in the 2023 program year. Last year, about $4 million was available for this work. The programs, run by Community Development’s Division of Neighborhood Services, include:

Louise Jackson, the commissioner of the division, said SHAP and RAH serve owner-occupants. Jackson said the division recently completed the following work on 61 homes and properties:

Ward 15 Council Member Jenny Spencer asked how those service numbers could increase, particularly with SHAP and RAH. Jackson cited concerns with the number of contractors available. She said the city is working with the Urban League of Cleveland to recruit more contractors.

Officials discussed Cleveland’s Housing Trust Fund (HTF), which is set to receive about $4.5 million in federal funds in 2023 compared to $5.2 million the previous year. Anthony Bango, manager of Cleveland’s Housing Development Office, explained that the city uses the HTF to help finance affordable-housing projects. Since 2017, the fund has supported work on more than 2,100 housing units with roughly $500 million from state, federal, and private sources.

Ward 14 Council Member Jasmin Santana said HUD guidelines have kept housing dollars from helping all areas. She said some residents are vulnerable to displacement, and she wondered if the city could put caps on sale and rental amounts, specifically on projects supported with American Rescue Plan Act (ARPA) funds.

Director of Community Development Alyssa Hernandez mentioned possible “LOOP legislation” that could address displacement concerns.

Vacant lots and gun violence
The city recommends directing just more than $1.4 million of CDBG funds to Project Clean, compared to $1.2 million the year before. The Department of Public Works program focuses on cleaning, cutting, and maintaining vacant lots.

Stephanie Howse, a council member for Ward 7, mentioned a recent presentation she and members of Circular Cleveland received in Philadelphia. Howse said Philadelphia contracts with an outside company to intentionally maintain lots, with research showing a correlating decrease in gun violence surrounding regularly maintained and transformed lots. She wondered if Cleveland has looked into that option. Tony Scott, the commissioner of the Division of Park Maintenance and Properties, said he does review best practices, including work done in Philadelphia.

How to fund Community Development Corporations
Council members and administration officials had a lengthy discussion about Community Development Corporations (CDCs), which are nonprofit organizations that aim to revitalize neighborhoods through housing and other services. They debated what council members called restrictive eligibility guidelines from HUD, as well as the best method to fund CDCs.

Community Development proposes giving a little more than $1.5 million to CDCs for activity grants for housing and commercial development. The department set aside $1.2 million for this purpose in 2022. Each council member is also set to receive $435,294 of CDBG dollars, much of which they typically send to CDCs as supplementary funding.

Ward 3 Council Member Kerry McCormack and Ward 13 Council Member Kris Harsh – who both previously worked at CDCs – said funding the nonprofits with CDBG money is a bad idea. In effect, the strict eligibility rules hamstring CDCs, which they said are vital to Cleveland. McCormack named services that the CDC he worked at provided because the city didn’t: safety organizing, running a rec league, and community outreach.

CDCs get funding based on “accomplishments” in the prior program year. Jessica Trivisonno, a senior strategist for the city who used to work for CDCs, explained the process in this 2021 Twitter thread. In the budget hearing, Ward 12 Council Member Rebecca Maurer discussed the challenges CDCs face. She confirmed that helping a senior install a bathroom rail for $250 would not meet CDBG qualifications as a “substantial repair” accomplishment.

Officials also discussed the city’s estimated $190,000 in federal funds to repurpose parcels in the city’s land bank. Community Development officials said the city is in the midst of decoupling from CDBG funding, citing eligibility issues with HUD guidelines. Hernandez said the program has been without a manager for almost two years, though the city is actively trying to hire for that role.

There are more than 18,000 parcels officially in the land bank, and Hernandez said issues such as uncut grass and illegal dumping require an all-out response from the city. “I am incredibly frustrated by where we are in the program,” she said, adding that it is her goal to transform it.

Hernandez also expressed disappointment with the city’s pattern of selling parcels below market value, saying Cleveland has offered developers the “sweetest game in town.”

Get the full scoop with coverage from Documenters Daniel McLaughlin, Carolyn Cooper, Marvetta Rutherford, Jenna Thomas and Tina Scott. Bonkers for budget talk? Check out this recap from Signal Cleveland staff.

What’s ahead? 

With budget hearings wrapped up, Documenters are set to get back to regularly scheduled meeting coverage the week of March 6. Take a look at what’s on the horizon.

• 9:30 a.m. – Municipal Services and Properties Committee, Cleveland City Council (livestream)
• 2 p.m – Finance, Diversity, Equity and Inclusion Committee, Cleveland City Council (livestream)
• 7 p.m. – Cleveland City Council (livestream)

• 9:30 a.m. Zoning-Development, Planning and Sustainability Committee, Cleveland City Council (livestream)

• 3 p.m. – Cleveland Board of Control (livestream)

• 9 a.m. – Cleveland Landmarks Commission (livestream)
• 1 p.m. – Lead Safe Advisory Board (WebEx)

• 9 a.m. – Mental Health Response Advisory Committee (Zoom)