Model Group’s $30 million Findlay Market-area development lands city funding over neighbors’ objections

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Model Group plans to invest $30 million to convert 12 historic buildings near the market into 51 apartments, with half of them affordable to people making 80% of the area median income, as well as 16,500 square feet of commercial space.

Cincinnati City Council voted unanimously to fund the project from a tax-increment financing fund that covers the western portion of OTR and downtown.

The project includes one of the few remaining dilapidated portions of Vine Street in Over-the-Rhine, which is often rife with trash.

Residents who are opposed believe developers should build housing that is more affordable and has more bedrooms.

The U.S. Department of Housing and Urban Development determines the current area median income levels for every region in the country. A two-person household in Hamilton County at 80% AMI earns $61,150 a year. Housing costs are considered affordable if a household spends 30% or less of its income on rent and utilities.

Because low-income housing does not produce rents that cover developers’ capital costs and allow them a reasonable profit given the risk they and the banks that fund them take, they require government subsidies, which are limited.

“I rarely go against a community council. I like this development. The fact that they’re going to have almost 50% minority- and women-owned businesses is really strong,” said Vice Mayor Jan-Michele Lemon Kearney, referring to another promise by Model. “It’s a mixed-income community, and that’s a plus.”

“We desperately need more housing in this city. The government simply doesn’t have the resources to build this on its own,” added Councilwoman Liz Keating, the council’s sole Republican.

Buildings set to be renovated (there are 12 buildings but only 10 addresses):

1804 Vine St.
31 E. McMicken Ave.
1812-1816 Vine St.
1822 Vine St.
29 E. McMicken Ave.
118 Findlay St.
1720 Elm St.
116 W. Elder St.

https://www.bizjournals.com/cincinnati/news/2023/04/27/model-group-findlay-market-funding.html

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