Cleveland City Council Discusses Neighborhood Development Fund and Short-Term Rental Regulations

At the May 13, 2025 meeting of Cleveland City Council’s Development, Planning and Sustainability Committee, members deliberated several significant pieces of legislation affecting Cleveland neighborhoods: a map change for the Monroe Avenue area, a proposed short-term rental regulation ordinance, and the establishment of a Neighborhood Development Subfund.

Monroe Avenue Map Change Approved

The committee approved Ordinance 501-2025, sponsored by Council member McCormack, which changes the zoning for land along the western side of West 26th Street south of Chatham Avenue and north of Monroe Avenue. Shannon Leonard, Chief Zoning Administrator, explained that the map change (designated as Map Change 2689) aims to “promote walkability and support a diversity of housing typologies.”

The change facilitates a proposed multifamily residential development immediately south of the Carriage Co project. The rezoning adjusts the area from semi-industry and two-family residential to multifamily residential and adds a five-foot specific map setback. This setback pushes the project closer to West 26th Street and away from homes along West 28th Street.

The proposal had received support from the local block club and had gone through the necessary approvals from PETBOT (Plan Elevation Traffic Beautification Organization of Tremont) and the city planning commission.

Short-Term Rental Regulations Face Scrutiny

The committee spent considerable time discussing Ordinance 588-2024, which would regulate short-term rentals as businesses through a licensing process. The legislation aims to address growing concerns about unregulated short-term rentals throughout Cleveland’s neighborhoods.

Council member McCormack highlighted the current challenges with enforcement, describing the existing system as “completely unenforceable.” He shared stories of problematic rentals, including instances where “people are on your roof climbing all over your roof at 3 in the morning” and others involving “massive party with…people riding on top of cars shooting guns in the air.”

Key provisions of the proposed ordinance include:

• A licensing process with a $150 application fee
• Requirements for proof of liability insurance
• Review by building and housing, health, planning, police, and fire departments
• Density limitations of no more than 15% of units in a given block
• Requirement for a local contact available whenever the rental is occupied
• Civil penalties for violations, including fines up to $5,000

Committee members expressed concerns about enforcement capabilities and questioned whether limited single-family districts should be included in the ordinance. After extensive discussion, Chairman Hairston decided to hold the ordinance for further discussion rather than move it forward for passage.

Neighborhood Development Subfund Proposal Gains Support

The committee also held its first hearing on Ordinance 113-2025, an emergency ordinance sponsored by Council members McCormack, Kelly, and Hairston to establish a Neighborhood Development Subfund. The legislation aims to provide more flexible funding for Community Development Corporations (CDCs) beyond the constraints of federal Community Development Block Grant (CDBG) dollars.

Ed Stockhousen from Cleveland Neighborhood Progress presented on the challenges CDC’s face with the current CDBG-based funding system, including:

• A “slow culling” of eligible activities under CDBG from 22 in 2010 to primarily just two today
• Restrictive requirements that limit neighborhood development
• A slow reimbursement process that creates cash flow problems for CDCs

The ordinance does not specify funding amounts, with those details to be determined in future legislation. Committee members expressed concerns about both short and long-term funding sources, particularly given uncertainty about future federal CDBG allocations.

Chairman Hairston indicated the committee would revisit the ordinance at a future meeting after making adjustments based on feedback received during the hearing.