In the 1990’s, Cleveland Mayor Michael R. White established a landmark agreement with northeast Ohio’s banks. Using the Community Reinvestment Act as leverage, White established deals with almost every commercial lender to stop redlining the city of Cleveland - setting transparent goals to encourage home loans and small business lending. These agreements were a significant part of Cleveland’s 90’s housing boom, during which more new houses were built than any time since the Korean war and the rehabilitation of older homes soared.

During the beginning of this decade though, less scrupulous lenders decided urban markets would be a good target for them, too. Cuyahoga County Treasuer Jim Rokakis has been at the forefront of predatory lending in Ohio and described in this Washington Post op ed piece how Cleveland’s redevelopment progress is taking two steps backward due to this trend.

Chris Carmody / Carmody & Company
www.christophercarmody.com