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from cleveland.com: Why a national mortgage lender cares about protecting Cleveland renters – Laura Grannemann


Posted December 10, 2023
2:56 pm


By Guest Columnist 

CLEVELAND -- This month, the Rocket Community Fund announced a $1.25 million investment in The Legal Aid Society of Cleveland to create the Cleveland Eviction Defense Fund. This investment will support Cleveland’s existing Right to Counsel Program, first introduced in 2020 following legislation passed in 2019 by the Cleveland City Council. In addition to providing funding for eviction support, the Rocket Community Fund has a long-term commitment to collaboratively building sustainable solutions to housing justice in Cleveland neighborhoods.

You may be wondering why the philanthropic arm of Rocket Mortgage, one of America’s largest mortgage lenders, has an interest in protecting renters. The answer is simple. Whether you rent or own, having a stable place to call home is the foundation for leading a quality life. Moreover, stable housing is essential to building strong communities.

The mission of the Rocket Community Fund is to simplify complex and inequitable systems to ensure that every person has access to stable, healthy housing. In our home communities of Detroit and Cleveland, as well as other municipalities across the country, the eviction process is one such system.

In 2019, research by Case Western Reserve University’s Center on Urban Poverty and Community Development found that renters in Cleveland had legal representation in only 1.1% of observed cases compared to 65.6% for landlords. This enormous disparity had unsurprising consequences, with the majority of cases resolved in the landlord’s favor despite credible issues for renters including mold, pests and repair needs.

Disruptive displacement from evictions creates countless issues for families, including job loss, educational disruption, and homelessness. It also has significant impact on the socioeconomic health of the broader community by increasing blight and crime, while reducing social cohesion. Fortunately, the number of renters with access to legal support has radically improved since the implementation of the Right to Counsel program, and we are hopeful they will continue improving through our investment. According to an independent evaluation from the global advisory firm Stout in early 2023, Cleveland Legal Aid represented approximately 79% of all eligible Cleveland households facing eviction in 2022.

Legal Aid’s help in housing cases has already contributed significant economic benefits to Northeast Ohio. Stout’s analysis showed that Legal Aid’s eviction prevention work has created an $11.8 million to $14 million benefit. This return on investment includes retained residency, foster care savings for homeless children, and decreased health care costs.

One of the core philosophies espoused by our chairman and founder Dan Gilbert is, “You’ll see it when you believe it.” It’s the opposite of the cynical saying, “I’ll believe it when I see it,” which suggests that big change isn’t possible. We are proud to make this investment in Cleveland, and specifically in Legal Aid, because we share a vision of a community free from poverty where all people experience housing justice. We believe that stable, secure housing is something everyone can enjoy – whether they’re renting or owning – and these investments will help the entire community see that it’s possible.

Laura Grannemann is the executive director of the Rocket Community Fund and the Gilbert Family Foundation.


Source: cleveland.com - Why a national mortgage lender cares about protecting Cleveland renters: Laura Grannemann

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