$1.5 Million Available for New Home Development

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$1.5 Million Available for New Home Development

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.