The Cuyahoga Land Bank recently launched the second round of its Housing Construction Gap Grant Program, making at least $1.2 million available to encourage experienced developers to build new single-family 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. The homes are to be built within an identified emerging market that includes portions of Cleveland and 13 inner-ring suburbs. The emerging-market includes affordable and middle-market neighborhoods where housing market activity slowed due to the Great Recession or longer-term disinvestment. The goal 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 last year.
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 $45,000 per home for homes priced up to $350,000. The 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 the 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 May 16, 2021, the application deadline.