Community Affairs:
Article Archive > Ohio

Cornering the Market on Innovative Rental Opportunities
Cornerstone Community Loan Fund was founded in 1986 to provide a means for people to support economic justice and opportunity in Greater Cincinnati and Northern Kentucky. The fund has expanded its scope to create conditions for low-wage families to develop ownership skills and economic assets. Through the Cornerstone Renter Equity program, the working poor can move from renting to investing in housing and financial assets. Cornerstone organizes and trains groups of households to cooperatively take on the care and management of their housing in exchange for "equity credits." Households earn equity credits each month that rent is paid on time, when they participate in the resident organization and when they perform routine maintenance responsibilities. The credits can be converted to a cash payment through Cornerstone after five years.

Through this program, residents benefit from gaining both ownership skills and financial equity. Participating property owners benefit from reduced operating costs and turnover, plus higher long-term property value. The community becomes more stable as residents take greater interest in their housing and neighborhood. Cornerstone is currently seeking additional financial institutions to invest in the fund by lending to it at below-market interest rates.

For further information, please visit the Cornerstone Community Loan Fund or e-mail Margery Spinney or call her at (513) 369-0114.
[Published in News from the Districts, Community Developments, Spring 2008]

Introducing the Grow Cuyahoga County Fund
The new Grow Cuyahoga County Fund makes loans of $35,000 to $1 million to small businesses in Cuyahoga County, Ohio that may not meet all conventional bank underwriting requirements but that have the potential to grow and create jobs. The fund often makes its loans in conjunction with bank loans and tailors its terms to fit the borrower's cash flow available for debt service, frequently by extending the loan maturity date. Loan proceeds can be used for any business purpose, including working capital, machinery and equipment purchases, land and building acquisition, new construction, building renovation, and leasehold improvements. Interest rates are between prime and prime plus two percent, and the loans may have terms of up to 25 years, depending on the useful life of the asset being financed. The Board of Commissioners of Cuyahoga County (BOCC) created the fund with the National Development Council (NDC), an economic development training and financing organization that also is a licensed SBA 7(a) lender and a certified community development financial institution. NDC will underwrite close, and service loans for the fund and will provide $4 of matching funds for every local dollar invested in the Fund. BOCC and the Cuyahoga County Community Improvement Corporation provided the initial capital for the Fund and are seeking investments from other potential partners, such as banks, the Greater Cleveland Partnership, the city of Cleveland, the Port Authority of Cleveland, and local foundations. Banks can become involved in the Grow Cuyahoga County Fund by: (1) structuring the fund into financing packages for borrowers, (2) referring prospective borrowers to the fund, and (3) investing capital in the fund.

For more information, contact Anthony Thornton, Economic Development Manager, at (216) 443-3159 or by e-mail at cdart@cuyahogacounty.us.
[Published in News from the Districts, Community Developments, Winter 2006-2007]

Appalachian Region's Progress Fund Expands
Tourism in the Appalachian region of Ohio is getting a boost from the Progress Fund, a certified community development financial institution (CDFI) lending needed capital and providing entrepreneurial coaching to small businesses in the travel and tourism industry.

Using a start-up grant of $200,000 from the State of Ohio, the Progress Fund is expanding its service area, currently encompassing 39 counties in Pennsylvania and West Virginia, into the 29 counties of Ohio's Appalachian region. The Progress Fund supports the niche industry of tourism businesses, including bed and breakfasts, brew-pubs, general stores, restaurants, museums, and similar small businesses that attract and serve visitors in rural areas. The Progress Fund is currently seeking investors to capitalize its Ohio expansion. Investors are asked to invest a minimum of $100,000 to help meet the organization's goal of a $5 million fund by 2007. Terms are flexible and negotiated individually with investors. Examples of previous investment terms have included a non-amortizing, 10-year loan at below market interest rates.

To invest in any of the Progress Funds, please contact David Kahley, CEO, at (724) 529-0384, or visit it's Web site, www.progressfund.org.
[Published in News from the Districts, Community Developments Investments, Spring 2006]

Adventures in ACEnet Ventures Fund
ACEnet Ventures Fund, a community development venture fund, is dedicated to assisting distressed central Appalachian communities in 27 counties across Ohio, Kentucky, and West Virginia. This fund provides equity and debt investments in specialty food and technology businesses, including start-ups, as a potential source of wealth creation for the low-income owners and employees of the businesses. Banks can invest in the fund through equity equivalent investments.

Contact: Rick Krieger at (740) 592-3854, or visit www.acenetworks.org.
[Published in News from the Districts, Community Developments Investments, Summer 2005]

Cincinnati Development Fund
Cincinnati Development Fund (CDF) is a certified community development financial institution established in 1988 to finance affordable housing development and community revitalization in the Greater Cincinnati area. CDF provides capital and financial consulting as a catalyst for comprehensive community development. CDF has five active loan pools, of which the Community Reinvestment Loan Pool provides affordable housing construction and permanent financing. Under this pool, developers can borrow for both construction and permanent financing using one mortgage note and therefore only necessitating one closing. CDF is now seeking new investors for Loan Pool VII for a three-year commitment.

Contact: Robin McNulty at (513) 721-7211 or log on to www.cincinnatidevelopmentfund.org.
[Published in News from the Districts, Community Developments Investments, Summer 2005]

Community Development Lending Leads to Improved Infrastructure
Great Lakes Rural Capital Assistance Program (GLRCAP) is a non-profit firm helping small communities in Illinois, Indiana, Kentucky, Michigan, Ohio, West Virginia and Wisconsin install and improve drinking water, wastewater and solid waste infrastructure and management systems serving lower-income populations. Banks can provide construction financing and long-term loans for these projects. GLRCAP, which works through local community action agencies, recently won a $700,000 grant to assist local communities with planning for affordable housing and economic development. Banks can provide loans for projects that GLRCAP helps plan.

For more information, contact Debra Martin at (800) 775-9767 or dcmartin@wsos.org.
[Published in News from the Districts, Community Developments, Spring 2003]

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