Housing advocates are pleased to see progress being made in the administration of Cincinnati’s Affordable Housing Trust Fund (HTF), which was legally established in 2018 to subsidize affordable housing production and preservation. In August of this year, city officials signed a contract with the Cincinnati Development Fund (CDF) to administer the first $2.7 million of the anticipated $57 million available in the HTF. The contract was approved by the city’s Housing Advisory Board and outlines the amounts of subsidies for projects based on their level of affordability and the terms of their loans, while also establishing annual rent limits. CDF will work with the Housing Advisory Board to create an application and is already in communication with several developers seeking gap financing. CDF expects the first project – a permanent supportive housing project for very low-income tenants – to close in approximately one month.
Per the agreement approved by the Housing Advisory Board, developers will receive subsidies from the HTF of between $50,000 and $60,000 per unit for housing affordable to households making 60% or less of the area median income (AMI), with smaller subsidies available for projects affordable for those with incomes of up to 100% of AMI. Rent limits will be calculated on an annual basis. Developers will use the funds for acquisition, construction, and “reasonable soft costs,” with awards being made in the form of forgivable loans or low-interest repayable loans.
Housing advocates played a significant role in establishing the HTF after years of rapid growth and development in Cincinnati had left its lowest-income residents facing severe cost burdens and experiencing displacement. In 2017, LISC Greater Cincinnati chartered a data report that painted a clear picture of Cincinnati and Hamilton County’s affordability challenges. The report garnered much media attention and compelled the city to take action. LISC and other housing organizations engaged and educated city council members about the challenges outlined in the report and policy solutions, and in 2018, the Affordable Housing Trust Fund was proposed and approved by the council. It was to be funded initially by revenues from the city’s new short-term rental tax; however, no other mechanism was created to administer and disperse the funds.
After several years with no further action to ready the HTF for use, and with Cincinnati’s housing affordability crisis growing, LISC Greater Cincinnati collaborated with a coalition of organizations to urge the city to develop a comprehensive housing strategy. With funding from the Greater Cincinnati Foundation, they engaged a consultant to facilitate a year-long process that centered the people most impacted by housing challenges and pushed for systems change. In the summer of 2020, the Housing our Future 10-year strategy was launched. During this process, conversations about Cincinnati’s HTF were restarted, and new stakeholders and champions were energized to move discussions forward.
In 2021, the city established the Housing Advisory Board to provide guidance on the HTF and other housing policies. Kristen Baker, executive director of LISC Greater Cincinnati, was appointed to the Housing Advisory Board in 2022 by Cincinnati Mayor Aftab Pureval. Mayor Pureval developed a plan to bring $57 million into the HTF, including $35 million in loan funds, through the U.S. Department of Housing and Urban Development’s Section 108 program, excess revenue from each fiscal year (estimated to be between $1 and $2 million annually), and $5 million in “American Rescue Plan Act” funds. An additional $12 million has also been committed from private donors. Each funding source in the HTF – now being referred to as the “Fund of Funds” – will have different criteria for administration. While the initial contract with CDF only applies to $2.7 million in city revenue, it is expected that CDF will play a leading role in administering the other funds as well.
“Cincinnati is moving solutions forward to address the housing shortage in our community,” said Kristen Baker, executive director of LISC Greater Cincinnati.” The evolving suite of tools and resources offered by the city is an important step forward to ensure neighbors will have access to housing that meets their needs.”
For more information about Cincinnati’s Affordable Housing Trust Fund and the advocacy that led to progress in its implementation, please contact Kristen Baker, executive director of LISC Greater Cincinnati, at [email protected]