CLEVELAND -- Every year, hundreds of volunteers from all over the country travel to Cleveland via Americorps to serve in our local school systems with their work on City Year Cleveland. These passionate volunteers move here for a year to serve as success coaches, supporting the development and growth of students who are in systemically under-resourced schools, while also cultivating the skills to be leaders in their communities. While these enthusiastic and socially engaged workers are generous with their time here, they only receive a small stipend of $890 biweekly (pre-tax) to cover their living expenses. The only relocation assistance City Year provides is a one-time payment of $500 for those relocating 50 miles or more.
Given this limited income, many of these City Year Cleveland workers who come to make a positive change in our city often have a hard time securing stable housing in the area. The cost of Cleveland-area rent over the last two years has increased by 10% and, given ongoing inflation, is likely to increase even more over the next year. Also, according to RentCafe, the average rent in Cleveland is $1,212, so finding an affordable apartment can be challenging. Then, when you add on application fees, first and last month’s rent, and the cost of a security deposit, the amount of money needed to move to Cleveland can be more than $3,000. The challenging math of this situation is creating a disincentive for potential Cleveland City Year workers, many of whom are just graduating high school or college and often come from lower-income backgrounds without the financial resources or savings to cover the high costs of moving.
One easy and cost-effective way to address this problem is by offering new options that replace the old cash security deposit. There are now innovative solutions, such as security-deposit insurance, that landlords can use to enable workers to lower the costs of housing and continue serving our city. Companies like Rhino offer security-deposit insurance programs where renters pay a small monthly fee instead of the one or sometimes two months of rent. This one change could go a long way toward bringing down the high, upfront costs many often face when moving into a new home. Many property owners are already offering this alternative because it expands the available pool of renters, while ensuring they stay protected against things like unpaid rent and excessive damages.
Additionally, by increasing the use of the security-deposit insurance available, we’ll free up a lot of money that’s currently sitting unused in escrow accounts. In Cleveland, there could be as much as $199 million locked away in security deposits. That money could be put to much better use by being reinvested back into our community or used to help our volunteers better prepare for their financial future.
It’s our hope that our local business community will work with our elected officials toward promoting solutions that lower the barriers to housing, and help organizations like ours continue working to make our city and its students the very best they can be. Communities should continue looking for innovative solutions, such as security-deposit insurance, that makes quality housing more affordable and accessible — and promote their use to the greatest extent possible to quickly address our housing challenges.
Toi Comer is the senior vice president and executive director for City Year Cleveland, a nonprofit whose mission is supporting under-resourced city schools and helping their students achieve, grow and succeed.
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