Youngstown is receiving a $2.5 million state grant to help support plans to develop up to 220 workforce housing units while Warren is getting $851,000 to support its Peninsula project to create 306 new housing units.

The $2.5 million for Youngstown will be used to improve roads, sidewalks, lighting and other public infrastructure as well as connect the new homes to existing water and sewer systems.

Many of the structures will be built on vacant lots owned by the city and the Mahoning County Land Bank.

The funding is part of the $5 million At Home in Youngstown program created in 2024 using American Rescue Plan dollars given to the city.

Permitted expenses under the program include a maximum of $10,000 for down payments and closing costs, and an additional $15,000 limit for energy-efficient upgrades to windows, furnaces and hot water tanks after a house is purchased.

Those who qualify for funding under the At Home program have to live in the house for at least five years or the funds will be returned. There is no limit on the total household income.

Also, those who purchase new homes in the city can receive a 100% property tax abatement for 15 years.

The program is a collaboration between the city, the Youngstown Neighborhood Development Corp., Mercy Health Youngstown and other community partners.

The $851,000 for Warren will go to support the Peninsula project, which will create 306 new housing units, including apartments and townhouses.

The funding will be used to modernize water and sewer main lines and upgrade surrounding public infrastructure as well as enable higher-density development in the project area.

The improvements will support a mix of housing types, including units intended for essential workers at or below 80% of the Area Median Income.

The Peninsula project will include a hotel, housing, a food hall, a parking deck and more than 100,000 square feet of office space being developed by Dillin Corp. of Springsboro.

Warren City Council in June 2024 approved $2 million funding for initial planning and infrastructure improvements, including upgrades to water, sewer and streetscape elements. The project is estimated to cost about $150 million to $160 million.

The site is named for its location where the Mahoning River curves around the land. As part of the project, West Market Street will be redesigned, reduced to two lanes with additional on-street parking.

The funding for Youngstown and Warren come from the Ohio Department of Development’s Residential Economic Development District program, which is providing $9,198,019 to five total projects. The funding for Youngstown, along with $2.5 million to Hamilton in Butler County, were the two largest awards announced Friday.

There is $15 million available next year in the program to help communities expand housing opportunities close to major economic development projects.

The Friday announcement from Gov. Mike DeWine’s office specifically states the Youngstown and Warren projects will support demand created by investments from Ultium Cells in Lordstown. Ultium laid off more than 1,300 employees earlier this year, with about 550 of them on an indefinitely layoff, because of lagging sales of electric vehicles.

DeWine said: “As our economy grows and more opportunities are created across the state, investing in workforce housing ensures that the people powering Ohio’s success can live and thrive in the communities they serve. The investments Ohio is making through the REDD program will help more hard-working families put down roots and build brighter futures.”

Lyle Huffman, executive vice president of Government Affairs and Community Impact for the Youngstown/Warren Regional Chamber, said: “As major investments like Kimberly-Clark, Ultium Cells and others continue to reshape the Valley, we need more housing to support a growing workforce.”

He added: “The Youngstown/Warren Regional Chamber advocated to keep the Residential Economic Development Grant program in the state budget and increase its funding because these resources will help communities like Youngstown and Warren build the infrastructure needed to support new housing, expand housing opportunities and build on this momentum.”