“Sometimes we talk about affordable housing, and we should be talking about building markets. Sometimes it’s vice versa but either way, we’re confusing the issue,” said Dennis Roberts, Chief Strategy Officer at Cuyahoga Land Bank.

This confusion has real consequences, especially in places like East Cleveland, one of the most disinvested cities in the nation. With an average household income of roughly $22,000 per year, the instinct is often to double down on affordability. But research (and lived experience) tells us that the most vibrant, resilient communities are those with mixed incomes.

“Experts say the most vibrant communities are those that have mixed incomes,” Roberts said. “That means, we need to bring new people to East Cleveland with higher incomes, while we continue to create and support housing opportunities for the people who have lived there for years.”

That statement can sound provocative, even uncomfortable. But the point isn’t to exclude existing residents, but rather to expand the market so opportunity, investment and demand can return to benefit everyone.

The Real Diagnosis: Concentrated Poverty

Concentrated poverty doesn’t just limit individual households; it weakens entire systems, including schools, commercial corridors, public services and civic life. When everyone in a neighborhood is financially constrained, there’s little capacity to demand or sustain quality amenities.

“The sickness is being misdiagnosed,” Roberts explained. “We need more quality housing that supports people at various income levels; these homeowners with higher incomes in turn will demand better schools, shopping centers, amenities, which will be a benefit to everyone in that community.”

At the core, most people (regardless of income) want the same things. Roberts explained, “They want a decent place to live, decent schools, amenities, a walkable community, a place to take their kids – and they want it to be safe.”

Mixed-income neighborhoods make those shared aspirations achievable.

Market-Building Is a Team Sport

Creating these conditions requires coordinated action across sectors, particularly in places that have experienced decades of disinvestment.

“The local government could take responsibility for land assembly, signaling that it will act in a strategic and sustainable way,” Roberts said. “That would give the private sector the confidence to invest for the long-term. The philanthropic community could also have to help de-risk early investment opportunities. Each sector plays a role.”

No single organization or team can do this alone. Market recovery is an ecosystem effort.

Being Willing to Be the Loss Leader

At Cuyahoga Land Bank, that ecosystem approach often starts with intentional risk-taking.

“Many times, when the Cuyahoga Land Bank goes into a community, we are the loss leaders. We often lose money on those initial homes and we recognize that,” Roberts described. “But we are creating the conditions for private investment to come in afterwards, make money and create a healthy market.”

This is how markets are rebuilt: not by avoiding loss entirely, but by using strategic losses to unlock long-term value.

Poverty as a Societal Issue, not a Local Flaw

The logic behind public investment in housing markets isn’t fundamentally different from how we think about schools.

“A school system is an investment that we all make because we recognize the importance of it,” Roberts said. “If we recognize that, we should also recognize that pockets of poverty are not good for society. We have to recognize that, like schools, concentrated poverty is a collective societal issue.”

Mixed-income neighborhoods aren’t charity. They’re infrastructure for opportunity.

Patience Is Part of the Strategy

Finally, there’s no shortcut around time.

“If it took years in order to create a situation, it’s going to take years to fix it,” Roberts said.

Rebuilding markets, restoring confidence and rebalancing neighborhoods is slow, deliberate work. But the payoff is profound: communities that are not only affordable, but functional, vibrant and durable.

The goal isn’t just housing people. It’s rebuilding places, and mixed-income neighborhoods are one of the most powerful tools we have to do exactly that.

The post Building Markets, Not Just Housing: The Case for Mixed-Income Neighborhoods appeared first on Cuyahoga Land Bank.

The Cuyahoga Land Bank recently launched the third round of its Housing Construction Gap Grant Program, making at least $1.58 million available to encourage experienced developers to build new housing in Cuyahoga County. The grant program provides funds to help developers cover the gap between construction costs and appraisal values in certain distressed areas, a persistent thorn in neighborhood redevelopment efforts.

More than $1.13 million in grants was awarded in round one of the Gap Grant Program, which will support the development of 32 new homes. Round 2 increased that amount to $1.4 million in grant awards supporting over 60 units. The homes are to be built within an identified emerging market that includes portions of Cleveland and 13 inner-ring suburbs. The third round also includes several target areas developed in collaboration with the City of Cleveland that will focus on current and future development goals. The purpose of the Gap Grant Program is to spur development and strengthen market values in these areas. The program is one element of the six-year Cuyahoga County Housing Program, which commenced in 2020.

The Gap Grant Program focuses on promoting the construction of new single-family homes to be sold to owner-occupants.   The incentive grants range from $10,000 to $65,000 per home for homes priced up to $385,000. Grant applications are evaluated on a competitive basis and the Cuyahoga Land Bank plans to award grants to projects that it considers will have the most significant impact by creating higher comps, boosting nearby home values and propelling additional investment in these neighborhoods.

Interested experienced developers can find application materials and   a map of the eligible emerging market area on the Cuyahoga Land Bank’s website HERE. All qualified developers are welcome to apply by October 28, 2022, the application deadline.

The post $1.5 Million Available for New Home Development appeared first on Cuyahoga Land Bank.