Delete WardNew Affordable Homes on the Near West Side
Mar 19, 2021
The Near West Land Trust with Council Members Kerry McCormack and Tony Brancatelli hosted a groundbreaking ceremony at 1 p.m. Friday, March 19th at 1902 West 50th St., the site of the construction of the first new affordable home.
The Near West Land Trust, a collaboration of Tremont West Development Corp. and Ohio City Inc., will create and preserve permanently affordable homeownership opportunities for low- and moderate-income families in near west side neighborhoods.
Families in the 60-120% range of Areawide Median Income, which translates to a family of four making less than $61,000 annually, for example, are eligible for the homes.
The first new home at 1902 West 50th St. will be 1350 square feet, with a full basement, and will meet the newest energy efficiency standards, as well as will qualify for the City of Cleveland’s 15 year tax abatement program. Local builder Knez Homes will be the construction partner.
The project is made possible by a partnership with the City of Cleveland and Councilmen McCormack and Brancatelli, who are providing land through the city’s land bank. Gap financing is coming through the City’s Housing Trust Fund, as well as Enterprise Community Partners, whose early funding allowed the Land Trust’s establishment.
The community land trust model involves the nonprofit owning land and then leasing it at a minimal cost to those who live in housing built on that land. If homeowners in the land trust choose to resell their homes, they have to sell to moderate or low-income individuals, or sell their home back to the land trust. Properties remain affordable by limiting the eventual sale price, with owners capturing 35% of increases in home equity at sale, while the remaining equity stays to keep the home affordable to the next buyer.
“Four years ago we made the decision to strategically reserve City land bank lots in the Near West Side neighborhoods to ensure that the housing growth occurring remained balanced and equitable,” said Councilman Kerry McCormack. “I am thrilled to see that, through hard work, dedication and partnership, we are breaking ground on the first home that will bring permanent affordability to our community.
“Ensuring that we have quality housing options for people of all income levels is crucial to remaining a welcoming and successful community.”
The organization hopes to build five homes this year, and scale up to be able to build more in the coming years.
“I fully support the opportunity to construct new affordable homes in Ward 12 and nearby neighborhoods and to see these partnerships, which took some work, come together to accomplish this goal,” said Councilman Brancatelli. “I also want to acknowledge our nationally recognized City and County Landbanks for their efforts in securing land for redevelopment efforts such as these.”
Councilman Brancatelli is chairman of the Cuyahoga County Land Reutilization Corp., commonly known as the County Land Bank and is a national expert on fighting urban blight, brought on by the foreclosure crisis and the Great Recession that still impacts Cleveland neighborhoods.