University Hospitals to invest $3 million for affordable housing in Hough

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CLEVELAND, Ohio — University Hospitals intends to invest $3 million into the development of mixed-income housing in Cleveland’s Hough neighborhood.

The project, known as Gateway 66 at League Park, will be located at the corner of East 66th Street and Linwood Avenue, about two miles west of UH’s main campus.

Frontline Development Group, a local minority and female-owned real estate firm, is leading the project.

The 82,237-square-foot development will consist of two four-story buildings that will feature 80 units, including 56 one-bedroom units, and 24 two-bedroom units.

The project will mostly offer affordable housing, though four units are expected to be market-rate.

Gateway66 will serve residents earning at or below 30% of the area median income; 16 units will be reserved for residents at or below 50% the area median gross income, 32 units for residents earning at or below 60% of the area median gross income and 20 units for residents earning at or below 80% area median gross income.

While Frontline has been pursuing the project for some time, the commitment from University Hospitals marks a first for the health system, which hasn’t traditionally invested in housing.

The University Hospitals board of directors approved it as a “mission-related investment” that will be structured as a soft-debt mortgage that will be financed by the hospital’s endowment fund. UH expects the principal to be paid back over a 15-year term.

In a statement, Heidi L. Gartland, UH chief of community & development affairs officer, talked about the hospital’s other investments in Midtown, including its upcoming UH Diabetes Research and Wellness Center.

“Together, these investments demonstrate a holistic, placed-based strategy that fosters economic vitality, community health and access to opportunity,” she said.

“With Gateway66 , this work takes on even greater meaning, creating pathways for employees, residents and community members to live, thrive and actively participate in the area’s growth.”

Shelia Wright, CEO of Frontline, said it was “deeply grateful” to UH for its support.

“The ongoing revival of Hough reflects a shared effort among community members, institutions and partners like University Hospitals to create a future where everyone has access to opportunity,” Wright said.