OH: New Cuyahoga County loan program aims to spur growth along public transit lines

A new Cuyahoga County loan program aims to spur real estate development along major public transit lines, expanding access to jobs and creating vibrant, walkable communities where residents can live, work and play without cars.

For decades, county growth has catered to automobiles, with zoning codes that separated homes from businesses and required vast parking lots. But county officials hope that the new Transit-Oriented Development (TOD) Loan Program will help reshape the urban landscape, creating more mixed-use neighborhoods designed around transit hubs, where housing, retail and office space are integrated in a walkable environment.

The county points to places like the Van Aken District in Shaker Heights, the Welleon luxury apartment complex in Gordon Square and the Midtown Collaboration Center near Cleveland Clinic – all of which sit along Greater Cleveland Regional Transit Authority’s bus, rapid or rail lines – as examples of TOD success stories.

“This is about enhancing the existing assets of Cuyahoga County,” Annie Pease, the county’s senior advisor on transportation, said in a news release announcing the loan program Monday. “The more jobs that can locate near public transportation, the more opportunities we are providing the people of Cuyahoga County.”

Loans will range from $150,000 to $2.5 million and can be used for new construction, major renovations or substantial building improvements within designated TOD zones, a web of key transit corridors stretching from Cleveland into dozens of surrounding communities. Loans are meant as gap financing only and cannot exceed 40% of project costs.

To be eligible, projects must include a job creation element and feature either a true mix of uses or at least one non-housing, transit-supportive use, such as commercial, office or public space. Standalone housing, retail, restaurants, hotels, daycares or nonprofits don’t qualify unless they are part of a larger mixed-use project.

Applications will be scored competitively based on criteria outlined in the TOD Loan Program Guide posted on the Department of Development’s website. A webinar explaining the new program is scheduled for 2 p.m. on Sept. 9.

The first round of applications is due Sept. 29, and awards could be announced by the end of the year, according to the county’s new TOD webpage.

The money will come from the county’s existing Revolving Economic Development Loan Fund, which currently provides financial assistance to any qualifying project that supports employment opportunities for county residents. But that may leave fewer dollars available for other types of development.

Kelly Woodard, the county’s chief spokeswoman, did not say how the funds are expected to be split between traditional loans and transit-related loans, but said they must all fit within the same annual budget of about $15 million.

The new initiative builds on the findings of a recent County Planning Commission study, which identified several policy and financing barriers that have historically stymied transit-oriented development. Several communities have since begun updating zoning rules to allow for denser, transit-friendly projects, and now the loan program could solve the funding piece, officials said.

The idea comes as GCRTA is planning a major rail overhaul, starting with the Red Line in 2027. While ridership remains below pre-pandemic levels, it has shown modest gains recently.

Officials believe the program will strengthen neighborhoods, attract investment and help area businesses grow. They also hope it reduces car use, promotes mobility, and delivers long-term environmental, economic and social returns, according to the county website.

If it works, County Executive Chris Ronayne said communities will be better connected and more affordable.

“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,” he said.