Big Ideas for Small Business: Codified Ordinance, Chapter 188 Fannie Mae Lewis Cleveland Resident Code
1. Presentation to the
Economic Inclusion Management Committee
City of Cleveland Office of Equal Opportunity
Codified Ordinance, Chapter 188
Fannie Mae Lewis Cleveland Resident Code
March 28, 2013
2. Chapter 188
Legislation was originally passed 6-10-2003
Law became effective 1-1-2004
Outcome of law
All public improvement construction projects greater
than $100,000 must:
Utilize Residents for 20% of all Construction
Worker Hours; and
Utilize Low Income Residents in 4% of that 20%
requirement
3. Resident & Low Income
Residents must live within the confines of the City of
Cleveland;
Low Income Residents must fall under the HUD “very
low income” bracket and reside within the City of
Cleveland boundaries. To be considered Low Income,
an application must be filled out (and approved) by our
office.
Unintended Consequences
Some contractors were hiring low income workers for a period
of one year and subsequently firing them when they earned
too much to be low income. This created an unwanted cycle of
employment/unemployment for the people it was meant to
help.
4. Changes to the law
In 2010, OEO came together with City Council,
Contractors, and other Departments to amend portions
of the Fannie M. Lewis Law
Low Income Status:
A low income person may retain their low income
status (regardless of income) for a period of no longer
than five years.
Stipulations:
Must remain employed with the contractor they
applied under
Must remain a City of Cleveland Resident
5. Associated Hours
“Associated Hours” are the City’s measure for
allowing a bit of leeway in the Resident portion of
the law. This allows contractors to count Residents
from non-City projects towards their current project
Eligibility:
If a contractor has another project that is ongoing at the
same time as the City project and was not funded by the
City
Residents or Low Income workers were used on that
project
The project has not been used to supplement any other
City project.
6. Consequences of Violation
Any contractor that does not adhere to the
Fannie M. Lewis law is subject to a monetary
penalty and potential disbarment from City bids
(1/8)*(1%)*(Contract amount)*(# of shortfall points)
If a contractor missing all of the requirement, this
amounts to 2.5% of the total contract amount.
7. Contact Information
Natoya Walker Minor
Chief of Public Affairs & Director
Office of Equal Opportunity
nwalker@city.cleveland.oh.us
Shanelle Johnson
Certification Administrator
sjohnson5@city.cleveland.oh.us
Lynn Peculis
Diversity & Inclusion Evaluator
lpeculis@city.cleveland.oh.us