Community Development

Mission Statement: To use available resources to build a stable economically and viable community. To work to eliminate blighted conditions in areas suffering a lack of investment. To direct available resources to benefit citizens of low and moderate income and neighborhoods serving low and moderate income citizens. And finally, to work to eliminate any conditions, which poses a threat to public health and welfare, which the City does not otherwise have the available resources to address.

The East Cleveland Department of Community Development will use funds from the HUD HOME Program to create opportunities for home ownership of newly constructed homes by families whose income is below 80% of the area median income.

This program is also expected to create significant reinvestment in existing neighborhoods, which are undergoing a transition from higher density development to predominantly single family houses.

A homebuilder, developer or prospective homebuyer may initiate the program application and commitment. However, the project assistance will not become available until an income eligible homebuyer has been identified. Once an eligible buyer is identified the program will provide an interest free subordinated homebuyer loan based on the following income based need for “gap” financing

This program will provide a subordinated homebuyer loan based on the following
income based need for “gap” financing.

¾ Below-70% of area median income Buyer is eligible for $30,000.00

¾ 70-75% of area median income Buyer is eligible for $20,000.00

¾ 75-80% of area median income Buyer is eligible for $10,000.00

The loan is to be interest free and secured by a mortgage. The affordability period is either five (5) years or ten (10) years, depending on the loan amount. The specific terms of the loan forgiveness and loan recapture are to be set at closing. The remaining balance is due upon sale of the property, to any party other than a surviving spouse.

In that this program is designed to encourage new construction of single-family homes, either prospective purchasers or a prospective home developer may initiate project applications and loan commitments.

In the case of a homebuyer individuals initiate their application by filling out a loan application on forms provided by the Department of Community Development. Homeowners must also apply for private financing, or document loan approval and or financial capacity to undertake construction. Upon approval, the homebuyer will be given a financing commitment of ninety (90) days to find a site, make purchase arrangements and secure clear title. This commitment shall be extended to one hundred eighty (180) days in order to provide for construction to begin. Upon request of
the homebuyer the Department may extend the program commitment if substantial progress is being made. The Department shall also extend this six (6) month commitment once a construction commitment and construction financing commitments are secured.

The homebuyer must be eligible based on HUD regulations for the HOME Program. Details are provided in HUD program guidelines.

The Program is funded by the Department of Housing and Urban Development (HUD), through the Community Development Block Grant and the HOME Programs.

The Housing Rehabilitation Program may be changed and/or modified from year-to-year to meet identified housing needs of low and moderate income households based upon program experience, HUD recommendations, and regulations.

THE PRIORITY of the Housing Rehabilitation Program is to assist ALL homeowners that meet income eligibility requirements. Due to limited funding for this program, first priority for list placement will be given to the elderly and households with small children. These priorities were rated as the HIGHEST HOUSING PRIORITIES in the City's Five Year Consolidated Plan and must be addressed first.

East Cleveland has established guidelines for the operation of a Housing Rehabilitation Program. The goal of this Program is to improve the housing conditions for ALL families living in East Cleveland, and to extend the economic life to the existing housing stock. It is the goal of the Housing Rehabilitation Program to provide decent, safe and sanitary housing.

The Cuyahoga County Lead Safe Program enables eligible low-and-moderate income homeowners in and renters in Cuyahoga County suburbs outside the City of Cleveland to make changes in their homes to provide a lead safe environment for young children under six (6) years old living in the home. Grants are offered to homeowners and landlords who meet program qualifications. (216) 443-7260

Emergency Repair: All qualified low-to-moderate income single-family owner-occupied homeowners will be eligible for a grant up to $2,500 or a loan up to $10,000. (216) 681-2404

Land Bank: City maintains an inventory of distressed and vacant properties available to financially capable investors and adjacent property owners. (216) 681-2415

The County's Heritage Home Loan Program allows owners of older and historic homes to maintain, repair and improve their property with an interest rate of 3.5%. This rate is made possible by the County Treasurer's linked deposit program and Key Bank. (216) 426-3116

Home Ownership provides financial assistance to purchase a new or existing single-family or two-family dwelling within the City of East Cleveland. First time buyers receive up to $3,700.00. (216) 681-2398