Proposed Loan Forgiveness for Denison Avenue Housing Project

Cleveland City Council is considering an emergency ordinance that would allow the Director of Community Development to terminate a Housing Trust Fund contract and forgive the remaining loan balance held by Emerald Development and Economic Network, Inc. (EDEN). The legislation, filed as Ord. No. 334-2024, involves a 20-year loan originally issued in 2006 to help rehabilitate a seven-unit townhome facility at 9830 Denison Avenue. The building currently serves as permanent supportive housing for individuals with mental illness.

According to the 334-2024 Executive Summary - Eden, EDEN can no longer sustain the property's operations and is requesting an early release from the loan, which was originally $47,000 and is set to mature on April 6, 2026, to allow for the sale of the property this year. The estimated amount of the loan to be forgiven is $20,000. To assist current residents during this transition, the document states that EDEN will provide a one-year notice of sale and offer tenant-based Housing Choice Vouchers to help residents relocate to affordable housing units of their choice. The Department of Community Development intends to monitor this process to ensure compliance with federal regulations.

As of the current record, Ord. No. 334-2024 is listed as tabled by the City Council. Residents can watch for updates regarding when the ordinance returns to the committee for further discussion or a potential vote.

Source record

File
334-2024
Type
Emergency Ordinance
Status
Tabled
Committee
City Council
Introduced
March 21, 2024

View on Cleveland Legistar

Official documents

Sources