Cuyahoga County’s new loan program aims at boosting jobs, development

CLEVELAND — Cuyahoga County introduced a new loan program targeted toward creating development projects near areas of high-frequency public transit. 

“The TOD Loan Program provides a great opportunity for entrepreneurs to access the capital they need to grow their organizations, attract customers, and create jobs in dynamic, accessible communities,” said Vaughn P. Johnson, the county’s deputy director for economic development. “By empowering businesses to build and grow around transit, we are supporting our region’s economic growth, and creating resilient, interconnected neighborhoods.”

County officials with the Department of Development said the Transit-Oriented Development (TOD) Loan Program is aimed at strengthening transit-accessible communities through real estate projects. 

“Developing communities around transit helps create affordable, connected neighborhoods,” said Cuyahoga County Executive Chris Ronayne. “TOD is smart growth in action, strengthening local ties, boosting our economic and transportation infrastructures, and ensuring resources are within reach of all of our residents.”

Funding can be used for real estate development projects that create or preserve jobs, involve new construction, major renovations or substantial building improvements within the TOD program zone. Gap financing is offered through the program via subordinated, fixed-rate loans from $150,000 to $2.5 million to address capital shortfalls. 

Officials said projects are primarily funded through owner equity and private bank financing, with Economic Development Loans available for gap financing.

“This is about enhancing the existing assets of Cuyahoga County,” said Annie Pease, Ronayne’s senior advisor on transportation. “The more jobs that can locate near public transportation, the more opportunities we are providing the people of Cuyahoga County.”

The TOD Loan Program continues the work of the Planning Commission’s Countywide Transit-Oriented Development Zoning Study, which identified policy barriers to development near high-frequency transit corridors, created legislation to help communities advance TOD and surveyed developers of TOD.

“Several communities in Cuyahoga County are actively working on zoning updates to allow for more dense, multi-modal, and mixed-use development in areas served by frequent transit,” said Mary Cierebiej, Executive Director of the Cuyahoga County Planning Commission. “In addition, this new loan program signals to the development community that we are listening. One of the top three barriers to TOD, identified through our developer survey, was the inability to secure financing or align within capital stack, so this is a great first step!”