Fifth Third Bank commits $20 million to revitalization of Cleveland’s Buckeye neighborhood – Crain’s Cleveland Business

Fifth Third Bank, in partnership with national nonprofit Enterprise Community Partners, on Friday, Oct. 15, announced a three-year, $20 million commitment supporting the revitalization of the Buckeye neighborhood on Cleveland's East Side.

The Cincinnati-based bank said its $20 million promise includes lending, investments and philanthropic support, including grants from the Fifth Third Foundation to the neighborhood. The company said it is committing to at least $2 million in grants and another $18 million in "affordable financing from housing to small business loans." That money will be spent between 2021 and 2024.

In terms of what those "affordable" products include, a bank spokesperson offered this statement: Fifth Third has various mortgage products available with low down payment options, reduced closing costs, fixed payments, etc. We also offer down payment assistance programs. On the small business side, one of the programs we offer is Fifth Third Fast Capital, designed to make it easier for small business owners to apply for loans and lines of credit.

Fifth Third said other partners in the program include Cleveland Neighborhood Progress, CHN Housing Partners and Burten, Bell, Carr Development Inc.

"This opportunity allows Fifth Third to invest in a unique way by taking a thoughtfully structured approach to solve real-world systemic issues," said Joe DiRocco, Fifth Third's regional president for Northern Ohio, in a statement. "This program goes beyond infusing capital into neighborhoods. We are working to make a significant impact by targeting investments in specific areas, collaborating with communities and their leading organizations and driving change through tangible place-based methods."

The Buckeye neighborhood is one of nine communities in Fifth Third's 11-state Midwest footprint receiving this treatment as part of the bank's $180 million Neighborhood Investment Program.

Fifth Third and ECP selected the areas receiving funds through an invitation-only application process targeting majority-Black neighborhoods.

ECP will provide technical assistance to support each neighborhood in developing and implementing a plan tailored to the unique challenges it faces, according to the bank. The nonprofit then will assist with assessing the plan's effectiveness at improving the economic well-being of residents and small, locally owned businesses.

"The Buckeye neighborhood was invited to apply for the program based on its ability to meet specific criteria, including partnering with the neighborhood's Black residents, existing civic infrastructure in the neighborhood and its capability to manage equitable investment and wealth-building opportunities," Fifth Third said in a statement. "Buckeye is part of Mayor Frank Jackson's Neighborhood Transformation Initiative, and it recently received a Choice Neighborhoods Implementation Grant from the United States Department of Housing and Urban Development. The program's funds will support the economic mobility of Black low- to moderate-income residents in the Buckeye neighborhood and cultivate investments and resources from additional stakeholders. The plan includes home repair and rehabilitation and targets the area south of Buckeye Road."

The Buckeye plan also calls for the following: new loans and grants to maximize investment from existing weatherization, home repair and lead-safe programs; a "first-in" strategy that will attract other developers and additional investment; and pre- and post-counseling support for new homeowners.

There also are plans for a pilot program to help residents buy and rehab single-family and two-story homes that should help manage the appraisal gap in the neighborhood.

"New owners will be able to live in one unit while providing a quality affordable home to another family. The additional income will help new homeowners thrive, build wealth and prevent displacement of Black residents," according to the bank. "They'll also have access to landlord and small business training over the first 18 months.".

"The Fifth Third Neighborhood Investment Program shows what is possible when we make intentional investments that center on Black life and legacy," said ECP president and CEO Priscilla Almodovar in a statement. "Enterprise is so excited to join Fifth Third and this group of committed neighborhood partners on an initiative that powerfully aligns with our goals as an organization: increase the housing supply, advance racial equity and build resilience and upward mobility."

Fifth Third noted that the Neighborhood Investment Program is part of its broader, $2.8 billion commitment to provide $2.2 billion in lending, $500 million in investments, $60 million in financial accessibility and $40 million in philanthropy from the Fifth Third Foundation as part of Fifth Third's Accelerating Racial Equality, Equity and Inclusion initiative.

Fifth Third has about $205 billion in assets. It's the third-largest bank in Ohio by deposit market share, according to Federal Deposit Insurance Corp. data, and the sixth-largest in Northeast Ohio.

The other communities participating in the Neighborhood Investment Program, and their partners, are as follows:

Avondale, Cincinnati: Avondale Development Corp.

Near East Side, Columbus: Partners Achieving Community Transformation.

South Chicago, Chicago: Claretian Associates.

East Tampa, Tampa, Florida: Corporation to Develop Communities of Tampa Inc.

Grove Park, Atlanta: Grove Park Foundation.

Arlington Woods, Indianapolis: Jewell Human Services Corp.

Historic West End, Charlotte: LISC.

Russell, Louisville, Kentucky: Russell: A Place of Promise.

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Fifth Third Bank commits $20 million to revitalization of Cleveland's Buckeye neighborhood - Crain's Cleveland Business