The Cleveland, Community Builders of Kansas City’s (CBKC) $12.6 million rehabilitation of its very first catalytic project, The Mt. Cleveland Initiative, will get underway this summer with renovation of 70 duplexes and 10 townhomes and the addition of a community building. The project will transition these multi-family communities from fully affordable to mixed-income and will solidify an already strong residential hub of a much larger, CBKC-led development footprint. The rehabilitation project will complete by yearend 2022.

“CBKC is an invest, build and hold organization and this project is a testament to that commitment,” said Shannon Hesterberg, CBKC director of real estate development. “Stabilizing and keeping assets in prime condition is our hallmark. The rehabilitation of The Cleveland will be an asset to CBKC’s other developments including the headquarters campus, grocery and retail center; the $12 million market-rate, multi-family project The Rochester; and the $80 million Offices at Overlook office, retail and multi-family district that will transform the corner of Swope Parkway and Chestnut Avenue.”

Located between Cleveland Avenue and Mersington Way off 51st Street, The Cleveland will combine what has been two separate properties – Mt. Cleveland Heights built in 1997 and Mt. Cleveland Townhomes built in 2004 – into one entity developed by CBKC which will own it along with other affiliates and serve as general partner. CBKC subsidiary EastPointe Realty will manage The Cleveland. 

These are family properties, all of which feature three-bedroom, one- and one-half bath units, ranging in size from 1,039 to 1,276 square feet with an attached garage. The affordable unit rents will range from $520 to $800 while the market-rate units will range from $928 to $941.

“A meaningful advantage to residents of this mixed-use development is that if their income grows, they can stay in the community,” said Hesterberg. “In fully affordable multi-family properties, if you make too much money, you have to move out. In The Cleveland, all the units are the same, so you can stay but transition to the market rate rent.” 

While they have been very successful, the Mt. Cleveland residences are 20 years old and in need of significant investment. On the exterior, all roofs and, as needed, siding, railings, windows and sills will be replaced. For the interiors, basically all will have replaced and upgraded HVAC systems, flooring, kitchen cabinets and appliances, bath cabinets and fixtures with fresh paint throughout.

The properties have had minimal security issues but improvements will include additional lighting outside the units, cameras and operational adjustments to security patrols, as necessary.

“The residents are really excited about the addition of a 3,400-square-foot, $526,000 community building,” added Hesterberg. “It will house the property management office and maintenance shop as well as a space for classes, a computer room, exercise and a flex area for hosting small meetings or birthday parties.”

Horizon Housing Foundation (HHF) will lead the provision of social services to residents. Tailored to the needs and interests of The Cleveland, HHF’s services will address youth education and mentoring, health and wellness, educational supplies and resources, food assistance, financial literacy as well as computer and internet accessibility.

Unique to this development will be a relationship with Beta Lambda Educational Institute, which will include student mentoring, access to an annual tour of Historically Black Colleges and Universities and ACT prep classes. Swope Health Services will partner in serving residents as will other providers such as Catholic Charities.

The Cleveland project brings CBKC full circle on the original, 70-acre Mt. Cleveland initiative that has since generated more than $150 million of investment. It began in the 90s when Swope Health Services saw a need for an urban core-based substance abuse treatment center while the adjacent Mt. Cleveland Neighborhood wanted to organize and start neighborhood development planning. Out of the health center’s commitment to aid in Mt. Cleveland’s revitalization, came the established of CBKC and 30 years of work that has yielded:

  • A substance abuse treatment center
  • Swope Health Central, a 143,000-square-foot, $18 million facility
  • A child and family development center
  • Mt. Cleveland Heights and Townhomes 80 multi-family housing units with new public infrastructure
  • Development of basic services including a supermarket, bank, post office and other stores and services absent in Kansas City’s urban neighborhoods
  • Expanded office space and retail services
  • Transportation services that are directly linked to the city’s public transportation departments 
  • Infill single-family homes for mixed-income families

The development team is made up of professionals with deep experience in multi-family, low-income housing tax credit (LIHTC) projects and includes Straub Construction, Rosemann & Associates PC architects, EastPointe Realty, LLC for leasing and tax credit compliance, Hardwick Law Firm, RCT Investments LLC as consultant and Raymond James as the federal LIHTC investor and Sugar Creek Capital as the state LIHTC investor.

CBKC, formed in 1991 as a joint initiative of community, public and private sector leaders, has as its mission to change the landscape by igniting and fueling equity, access, opportunity and advocacy. The Cleveland $12.6 million rehabilitation project is right in CBKC’s wheelhouse.