The former owner had all but abandoned the property, resulting in a run-down complex besieged by gangs and drug-related crimes and violence. HUD took control of the property and implemented armed security patrols and began repairs to address health and safety issues. Vesta and the City of Cleveland were adamant that the property needed a character-changing renovation with quality of life initiatives for the residents. Vesta developed a plan and assembled from various sources the financing needed to accomplish this. The plan has been fully implemented. Rainbow Terrace is no longer last resort housing, but highly desirable affordable housing.

A major modification was the demolition of 58 units, which were replaced with an equal number of new apartments on an adjacent site donated by the City of Cleveland. The resulting 484 units are situated on a 28-acre site instead of on 18 acres. Renovations of the remaining buildings included new pitched roofs, new windows, new heating and cooling systems, and updated unit finishes, including new cabinets, carpets, vinyl flooring, appliances, and plumbing fixtures. Façade and landscaping improvements were made to improve the curb appeal of the property. Hard construction costs exceeded $30 million.

Central to the revitalized Rainbow Terrace is the new Community Center, which houses a Computer Learning Center ("CLC") and a daycare facility for up to 150 children. The daycare center is operated by the Center for Families and Children, a Cleveland nonprofit with roots dating back to the late nineteenth century. The CLC is operated by Cuyahoga Community College. In addition to the CLC, every household can earn a free computer and free internet access by completing a training program at the CLC. Rainbow Terrace has a web site that provides links to management, security, and maintenance staff, as well as to community and educational resources.

The financing for this undertaking comes from a variety of sources, including: a $14.8 million FHA-insured first mortgage funded by tax-exempt bonds; an $11.7 million cash flow second mortgage funded by tax-exempt bonds purchased by the City of Cleveland with HUD grant funds; a $5 million construction loan from the City of Cleveland; more than $18.3 million in equity from the sale of Low-Income Housing Tax Credits; and more than $16 million of additional construction and permanent funding from various sources.