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Home My WebLink AboutM1988-0222 - 10/18/1988Motions - lU/1$/88 2. Motion approving. the Housing Assistance Plan and authorizing the City Manager to submit the .plan to the U. S. Department of Housing and Urban Development (HUD). M88-0222 ,T Approved nn 2sos-ans~ . DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT t. NAME OF COMMUNITY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM ENTITLEMENT PROGRAM Clty Of GOYpUS ChrlStl - 2. GRANT NUMBER HOUSING ASSISTANCE PLAN B _ _ _ _ 3. PERIOD OF APPLICABILITY 5• HUD APPROVAL .FROM: 10-O1-88 To: 09-30-91 4. DATE OF SUBMISSION 4a. 0901-88 ®Original ^ Revision ^ Amendment (Signatu.e of Aurnorized officlall (Dotal PART 1 -HOUSING ASSISTANCE NEEDS TABLE I -HOUSING STOCK CONDITIONS STANDAR D UNITS SUBSTANDARD UNITS SUBSTANDARD UNITS SUITABLE FOR REHAB TENURE TYPE OCCUPIED VACANT OCCUPIED VACANT OCCUPIED UNITS VACANT UNITS UNITS UNITS UNITS Total Lower Income UNITS A B C D E F G s Owner 49 913 1 513 5 057 171 4,444 3,539 145 7 Renter 36 493 3 527 5 64b 401 5 140 3 952. 341 TABLE II -RENTAL SUBSIDY NEEDS OF LOWER INCOME HOUSEHOLDS ELDERLY SMALL FAMILY .LARGE FAMILY TOTAL H 1 J K 8 Very Low Income 2 4, 296 688 6,000 9 Percent 17.0 % 71 .5 % 11 .5~° 100% to Other lower Income 3, 707 849 5 591 tt ETR 909 184 1 438 12 To be Dis laced -0- -0- -0- - - t3 Total 2 401 8 912 1 721 to Percent 18.4% 68.4% 13.2% 100% P y PART II -THREE YEAR GOAL TABLE 'I -UNITS TO BE ASSISTED REHABILITATION OF SUBSTANDARD UNITS NEyy CONSTRUCTION CONVERSION l0 STANDARD UNITS HOME IMPROVEMENTS L M N O 15 Owner 450* 300 20 240 16 Renter _ 100*'* 210 100 _ -0- (UNtTS EXPECTED TO ASSIST LOWER INCOME HOUSEHOLDS) 17 Owner 450 300 -0- 240 1s Renter 100 210 60 -0- TABLE II -LOWER INCOME HOUSEHOLDS TO RECEIVE RENTAL SUBSIDIES • ELDERLY SMALL FAMILY LARGE FAMILY .TOTAL ~' O R S 19 Households to be Assisted 105 389 76 570 20 .Percent 18.4 % 68.4% 13.2% 100% TABLE I11 -GOALS FOR HUD RESOURCES: SUBJECT TO LOCAL REVIEW AND COMMENT ELDERLY SMALL FAMILY LARGE FAMILY TOTAL T U V W 2t Households to be Assisted 105 389 76 570 HOUSING TYPE PREFERENCE (Maximum Number of Units that wi/1 be Accepted) 22 NEW REHAB_ EXISTING 320` ~ 570 ~ 570 23 ^ Check this box if the applicant wishes to review State Housing Agency proposals within its%urisdiction. PART I11 -GENERAL LOCATIONS 24 Attach map identifying the general locations of proposed assisted housing. **Contingent on HUD allocation for Rental Rehabilitation Program HUD-7o9t.t(tas2) 124 CFR 570.306) *Contingent on HUD allocation to assist 30 units through Section 3I2 Program METHODOLOGY LINE DESIGNATION FIGURE EXPLANATION 6A 49,913 An estimate of 54,..970 total owner-occupied 6C 5,057 units was obtained by utilizing the 1980 Census figures plus cumulative permits issued from 1980 through May, 1985 and adding in all building .permits for June, 1985 through May, 1988. That figure was. multiplied by 9.2% which is the ratio of substandard owner-occupied units to total owner-occupied units as designated by the .1980 Census.. That comes to a total of 5.,057 substandard owner-occupied units. .The sum difference of 54,970 minus 5,057 gave us the total substandard occupied units or 49,913. 7A 36,493 An estimate of .42,139 total renter-occupied 7C 5,656 units was obtained utilizing the 1980 census figures plus cumulative permits issued from 1980 through May, 1985 and adding in all building permits for June 1985 through May, 1988. That figure. was multiplied by 13..40 which is the ratio of substandard renter- occupied units to total renter-occupied units as designated by the 1980 Census_ That comes to a total of 5,646 substandard of 42,139 minus 5,656 gave us the total standard renter-occupied units or 36,493. 6B 1,512 Total occupied units were figured by adding 7B 3,523- lines 6A, 7A, 6C and 7C for a total of 6D 171 97,109. This figure .was multiplied by the 7D 401 1980 vacancy rate as designated by the Census data of 5.78% which equaled 5,612_. The 5,612 was then multiplied. by 10.20 which is the 1980 vacancy rate as designated by the Census data for substandard units. This totalled 572. 572-.was then multiplied. by 30% to designate owner units and 70a to designate renter units or specifically, 171 owner-occupied substandard vacant units and 401 renter-occupied substandard vacant units. Total vacant units of 572 was then subtracted from the original figure of 5,.612 to obtain standard vacant. units of 5,040_ That figure then was applied against the 70%/30o ratio to calculate 1,513 owner-occupied standard vacant units and 3,527 renter-occupied standard vacant units. LINE DESIGNATION FIGURE EXPLANATION 6E 4,444 Staff estimates indicate that of the total 6G 145 substandard units, 85o can be rehabilitated. 7E 5,140 .This estimate is based on staff analysis of- 7G 341 trends in its rehabili ation and code enforcement programs. Therefore, the lines in question were derived strictly from lines 6C, 6D, 7C and 7D. 6F 3,539 Applied to Lines 6E and. 7E the ratio (.70} 7F 3,952 indicated. for lower income households in the 1980 Census Table F. 8H, 8T 1,021 4,296 Figures taken directly from 1980 Census data 8J, lOH 688 1,035 information tables E & F and staff 10I, lOJ 3,707 849 projections. 11 Please see Section 2 of narrative. 15L 450 .Projection of the number of units to be rehabed under the Corpus Christi Housing Improvement Corporation Rehabilitation Program. 15M 300 Number of units anticipated to be assisted under the City's Mortgage Credit Certificate Program. 15N 20 A projection of the number of units to be converted from a nonresidential to a residential use. 16L 100 10 units of Sec. 312 and 90 units of Rental Rehabilitation. 16M 210 ..Units to be assisted utilizing tax exempt financing and Section 202 Direct Loan .Program. 16N 100 A projection of the number of units to be converted from a nonresidential to a residential use. 17L 450 All applicants under .the City's Rehabilita- tion Program must meet lower income criteria, therefore, the program benefits solely lower income households. 18L 100 Sec. 8 units.. Applicants must meet income criteria. LINE DESIGNATION FIGURE EXPLANATION 18M 100 20% of..the 300 multi-family units being .built utilizing tax exempt financing must. be made available to lower income households and all 40 units projected to be assisted through. the Section 20:2. Program. 18N 60 A projection of the number of units being converted from nonresidential to residential use which will be available for lower income households. 19S 570 Projected goal which we feel is both reasonable and attainable during the next 3 years.. Lines- P, Q, and R arepercentage breakdowns. of S corresponding. to the percentages shown on Line 14 Table II Renter Subsidy Needs of Lower Income Households. 21 570 Designates the City`s anticipation of HUD's resources. 22 New - 320 Indicates the City's willingness to accept Rehab. - 570 assistance under any of HUD's programs. Existing - 570 NARRATIVE SECTION ON HOUSING ASSISTANCE NEEDS 1. Identify the local definition of Substandard and Substandard Suitable for Rehabilitation as Outlined in 570.306(e)(1) of the Regulations. This type of .housing has identifiable deteriorating characteristics and is in need of more repair than would be provided in .the course of regular maintenance. It has one or more deficiencies of an intermediate nature that must be corrected if the unit is to continue to provide safe and adequate shelter. Additionally, the following specific factors are used in judging. whether the structure is substandard or not: lack of complete. plumbing, unit. occupied by more than 1.01 persons per room, and structures built before 1940. This definition meets HUD's Sec. 8 existing housing standards (24CFR 882.109)... The City's definition of structures which. are substandard but suitable for rehabilitation are those structures that are not more than 65% deteriorated. 2. Identify the number of lower income households expected to reside by component parts (planned employment, current employment, and elderly). The number. of lower income households expected to reside in the City of Corpus Christi due to new job opportunities total 1,438. Calculation of ETR on the basis of (a) current employment; (b) .planned employment;. and (c) elderly seeking housing in the community: a. ETR by current employment (technical assistance provided by TEC}. Elderly 60 Small Family 235 Large Family 50 Corpus Christi Total: ~ 345 b. ETR by virtue of planned employment: Abase figure of the total direct job employment was estimated in order to derive the number of lower income families with workers expected to be employed. in the community in the next three years. Technical assistance was acquired from the local Texas Employment Commission, Chamber of .Commerce,. and Area Economic Development Corporation. An analysis of the employment. conditions projected for the next three years was done for the City. From this it was estimated that 3,046 direct jobs would be created. It is necessary to apply the employment multiplier (2.05) to the base in order to determine total employment. The employment multiplier indicates that for every new job created, approximately 2.05_ additional jobs will be required. to be created to support the base. The following classification gives total jobs to be created using employment multiplier and an estimate of total low income jobs to be created. (1) 3,046 x 2.05 =.6,244; 6,244 indirect jobs plus 3,046 direct jobs = 9,290. (2) 9,290 x 11.5 (expected percentage of total low income employment) -= 1,068. This represents total low income employment expected from total planned employment. (3) 1,068 x .868 (ratio of total work force in the City of Corpus Christi to commuting work force) = 927 total low income expected to be employed and reside in the City of Corpus Christi. c. ETR lower income elderly households: According to surveys of assisted housing within the .City of Corpus Christi, there are approximately 220 nonresident elderly on the various waiting lists. These waiting lists,. however, do not adequately xeflect the amount of nonresident elderly shifting to the City of Corpus Christi. It has been locally determined that a rather large pool of nonresident. elderly would move to the City of Corpus Christi far retirement purposes if rental units of affordable range were available. Total ETR from 3 estimates: Elderly and Small . Large Total Handicapped Family Family Current Employment 345 60 235 50 Planned Employment 927 166 627 134 Elderly 166 119 47 -- TOTAL: 1,438 345 909 184 3. Identify the community assessment of the expected impact of the conversion of rental housing to condominiums or cooperative ownership. The City of Corpus Christi is not expecting a large conversion of rental housing to condominiums or cooperative ownership; .therefore, the impact of this factor is negligible on the housing standards and needs of the City. 4. Estimate the .number of total Lower Income Minority Households in substandard housing by tenure type: and the number of households in each minority household category in such housing by tenure type. In addition, estimate the number of total minority households requiring rental subsidies by household type as well as those expected to be displaced and provide the same estimate for each separate minority category. The 1980 Census .indicates that 51.7% of the.City of Corpus Christi's population are members of minority groups; however, -staff estimates indicate that a higher percentage of minority households occupied substandard structures.. This determination is based on the fact that an extremely high percentage of cases processed through the Corpus Christi Housing Improvement Corporation's Rehabilitation Program are from minority households. In addition, the majority of substandard structures in the City are located in census tracts which are predominantly populated by members of minority groups. Therefore, the City has estimated that 700 of those occupied units which are .substandard are occupied by lower income .minority households or specifically, 3,539 owner-occupied substandard units and 3,952 renter-occupied substandard units acc:ammodate lower income minority households. We have utilized the same percentage for preparing lower income minority households requiring rental subsidies with the totals being as follows: 1,680 elderly households; 6,238 smaell family households; and 1,204 large family households. Following is a breakdown of low and moderate income minority households requiring rental subsidies: 882 Hispanic elderly and 294 Black elderly; 3,274 Hispanic small families and 1,092 Black small. families; and 632 Hispanic large f~nilies and 211 Black large families. .Staff does not anticipate any displacement of any kind. during the next three years. It is estimated that of the substandard units which are occupied by minorities, 75% are occupied by Hispanics and 25o by ~3Tacks. There are no other measurable minority groups in the City of Corpus Christi occupying substandard housing. The ethnic composition of the individuals needing rental assistance is projected as follows: 52.5 % Hispanic, 17.5 o Black, 3C}~_ 0 % Anglo. 5. Identify the Special Housing Needs of handicapped perse~ns in the community.. Include separate estimates using generally available information of the number of handicapped single individuals as well. aos those handicapped. persons who are members of small or .large families.. The City of Corpus Christi's statistical information concerning handicapped individuals does not differentiate between those individuals who are single and those who are members of families. However, ouar data does indicate. that approximately 5% of the total population of the City of Corpus Christi is handicapped. The City's. primary effort. relativP~ to improving the housing stock for handicapped individuals has been .through -its rehabilitation program which, whenever encountering a handicapped individual, does its best to assist such person in improving his living environment (ramps, bathroom rails). 6. Identify any Special Housing Needs of households: headed by Single Individuals. Approximately 8.3% of families residing in the Gity a~ Corpus Christi are headed by a single parent. Such families typically suffer from lower income and are often housed in substandard dwellings. The City. of Corpus Christi prioritizes .loan applications through its rehabilitation program to those families showing such a desperate need_ In addition, the City utilizes its counseling capacity to assist these familYes in their personal. financial planning. 7. Identify any Special Housing Needs of particular greaups of lower income households in the community. Applications from individuals meeting HUD's Very Low^ Income criteria are prioritized through its rehabilitation progrartas and the Rental Rehabilitation program will focus on assistance to lower income large family households. NARRATIVE SECTION ON THREE YEAR GOALS 1. Identify the number of standard residential units by tenure"type to be demolished as a result of direct federal, state or local action. No demolition of standard residential units during the next three years is anticipated. 2. Identify particular problems or obstacles expected and planned remedies. Economics is the greatest factor. The owners/investors of rental property do not want to participate in the grogram because of number of vacant units in our area. Low income single family owners do not want to risk getting into debt or cannot afford the added responsibility of a loan. The City will continue its outreach efforts to increase community awareness of the different programs available, expecially the grant programs to those low income single-family owners that do not want to. participate in the loan program. 3. Describe the provision that will assure that a majority of the rehabilitation carried out .will assist low and moderate income households. Applications .from individuals meeting HUD's low and moderate income criteria are prioritized through its Rehabilitation and Rental Rehabilitation Programs which focuses on assistance to lower income Large family households.. Federal income guidelines are used as a basis for qualifying all applicants. 4. Specify actions to be taken to implement the. three year goals (timetable). The City will initiate aggressive outreach efforts throughout the Gity of the various programs available to low and moderate income families. The City will be submitting applications for assistance through the Section 312 Program within the next twelve months. Additionally, the City will be implementing it's- Affordable Housing Program which provides for construction of new units to be made available to low and moderate income families the early part- of 1989. The City will provide. technical assistance to a non-profit organization which has secured funding under the Section 202 Program for the construction of 40 units for the elderly/ handicapped. Construction of the units should be initiated by late 1989. Completion of the project should be accomplished by mid 1990. The City of Corpus Christi recently submitted a letter of interest to HUD regarding the Urban Homesteading Program. Should the program. became available, the City will submit an application for funding during the early part of 1989. The above actions should allow the City to implement and achieve the proposed three year goals as submitted. 5. Identify specific actions to be taken to minimize displacement of low and moderate income persons. Displacement is not anticipated at this time. The City of Corpus Christi's displacement policy states that to the greatest extent feasible, the City will endeavor not to displace persons from their homes and neighborhoods. However, should displacement occur, the City .will mitigate the adverse effects of any such displacement. by providing assistance in accordance with the Uniform Relocation Aet or its local relocation policies, whichever is appropriate, and additionally. will provide related supportive services. 6. Describe actions that will be taken to .preserve or expand the availability of housing for low and moderate income persons. The following programs will preserve or expand- the availability of housing for low and moderate income persons: * Rehabilitate 30 rental units; * Assist in securing funds for the construction of 40 units for the elderly/handicapped; * Acquire land and construct five (5) quality houses under the Affordable Housing Program funded. by the City; * Provide assistance through the City's Mortgage Credit Certificate Program to approximately 300 households; * Secure forty (40) certificates for the units constructed through the Section 202; * Secure twenty (20) certificates under Rental. Rehab; * Rehabilitate 200 single family owner-occupied units.. Additionally, it is the intent of the City of Corpus Christi to apply to participate in the Urban Homesteading Program upon availability. oorx3re ~o .~~no • - 3YOIM t~' IYn91y y, ,o . F- ,,~~~,~ __ N ~ - ~ " ~ ~~ ~ r y30 _ Yip Q „i 0 ~~I41 -'~ 0 ~ F p m :a .~ Y ~ m ~ N N ~ ~ ` v ~ N ~. 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