Developers such as Joe Gorman know how difficult it can be to build new homes in Cincinnati's older, deteriorating neighborhoods.

        That's why Mr. Gorman embraced Mayor Charlie Luken's message Thursday that 1,000 new housing units within one year are Cincinnati's antidote to a rapidly declining population.

Emery Center Apartments, 62 units; total cost: $9.5 million | ZOOM |

        “I'm extremely encouraged,” said Mr. Gorman, who has struggled to develop 14 new homes in his Mount Auburn neighborhood of 20 years. “If you're a solo urban pioneer out here by yourself, it can be extremely difficult.”

        Mr. Luken announced his optimistic goal during an annual state of the city address. He thinks it can be accomplished because the city has committed $8 million for neighborhood housing, and private interests are forming a $35 million loan fund for downtown, Over-the-Rhine and the West End.

        More than 570 units are planned or being built downtown and in Over-the-Rhine, but there's no guarantee of completion or city approval by January 2002.

Krippendorf Building, 102 units; total cost: $13.8 million. | ZOOM |

Power Building, 117 units; total cost: $15.7 million. | ZOOM |

        “There are people out there who may not think this is attainable,” Mr. Luken said Friday. “I firmly believe that it is.”

        Mr. Luken said the goal also brings accountability to city departments that administer and distribute funds for housing programs. The city's Department of Neighborhood Services in particular operated under a cloud of management scandals over the last year because of allegations that private developers misspent taxpayer funds.

        “I think it's about time we provide an objective measure of success,” Mr. Luken said.

        With office and retail development stagnant, zeroing in on housing development is an opportunity for Mr. Luken to capitalize on the one area of private downtown development that is thriving. It's also a way to stem population loss. The city's population has dropped 9.2 percent since 1990 — a loss of more than 33,000 residents, according to census estimates.

        Studies commissioned by Downtown Cincinnati Inc. show the market can absorb 350 to 400 units a year, but only 151 units were added downtown in 1999. More than 200 units will be added in 2001 with renovation of the Emery Center and the Hale-Justis, Power and Krippendorf buildings.

        It's part of a national trend of younger professionals seeking the excitement of urban life and older couples with grown children returning downtown to be close to their jobs, the arts and other attractions.

HOUSING PROPOSALS

Cincinnati's proposed neighborhood housing funds for 2001:     • Mills of Carthage, $2 million.     • Westwood, $2 million.     • Projects in the East End, Westwood/Madisonville, Mount Auburn, Walnut Hills, $1.25 million.     • To be announced, $2.75 million.     Source: Department of Neighborhood Services

        “There is a huge demand for people who want to live down town,” said Christine Schoonover, a Realtor with Coldwell Banker West Shell. “The market is here this minute. I have a long list of buyers who want to move here now.”

        Ms. Schoonover helped a developer sell four condos in less than two weeks for a new project on 911 Race St. Because the project sold so fast, developers plan four other condo projects downtown ranging from eight to 17 units apiece, she said.

        Unlike some larger rental projects on the drawing board, the Race Street condo project didn't require any public funding. Most downtown projects require some type of government funds to offset the high costs of land acquisition and renovation.

        Mr. Gorman, who is developing 14 new homes in waves on Mulberry Street in Mount Auburn, said it's difficult for small developers like himself to navigate the city bureaucracy to get approval for housing funds. His suggestion: a one-stop permit center for developers building new homes or rehabilitating old ones.

        Private businesses and housing advocates also are rounding up private funds to help developers.

        The Cincinnati Development Fund is helping arrange a pool of private corporate and bank loans to complement city funds for housing in downtown, West End and Over-the-Rhine. The boundaries may change before the fund is established this spring, according to Jeanne Golliher, who heads CDF.

        “It's aggressive but doable,” Ms. Golliher said of Mr. Luken's goal. “It's showing that Cincinnati is being very progressive.”
       

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