Resident Engagement &
Neighborhood Revitalization
Strategies
Detroit Shoreway CDO
September 24, 2008
Model Blocks Program
Model Blocks Program
Targeting 150 homes surrounding “Anchor Project” (Battery Park)
Provide existing homeowners (and landlords) with:
- $2,000 matching exterior home improvement grant
- $500 exterior home improvement grant
- $500 landscaping grant
- $450 vouchers for exterior paint
- $20,000 for trees and decorative light poles
- To date, 49 homes have accessed $30,000 in grant dollars that
have
leveraged another $43,000 in private investment
Provide CDCs grants and lines of credit for acquisition, rehab and
demolition
Model Blocks Program
Model Blocks Program
Model Blocks Program
Opportunity Housing
Program Summary
Partnership between Neighborhood Progress Incorporated (NPI), Cleveland
Housing Network (CHN) and 6 area CDCs
CDCs locate the homes, NPI through a subsidiary is the financier, and CHN
will carry out the rehabilitation
3-year pilot program aimed at reclamation of neighborhoods at 3 levels
- Mitigation – save 100 at-risk homeowners from foreclosure (per year)
- Demolition - demolish 100 structures not suitable for rehab (per year)
- Redevelopment – rehab 50 vacant homes for sale or short-term lease
purchase (per year)
3-year totals include: 300 demolitions, 300 homes saved from foreclosure
and 150 redeveloped vacant structures across 6 neighborhoods
All for-sale homes will target buyers between 60-80% AMI
Homes not sold outright will be converted to 3-year Lease Purchase
Opportunity Housing
Financing Model (Per Year)
Total development costs are approximated at $125,000 per house ($25,000
for holding costs, $100,000 for acquisition and rehab)
$1.5 million ($30,000/home) subsidy from Ohio Housing Finance Agency
$500,000 ($10,000/home) subsidy from City of Cleveland Housing Trust
Fund
$500,000 ($10,000/home) deferred second mortgage from City of Cleveland
Afford-A-Home
Example
$125,000
Total development cost
-$ 30,000
OHFA write down
-$ 10,000
Ho