Gary, Indiana, is located in the northwestern corner of the State, near Chicago, Illinois. The city is home to a wealth of transportation modes, including major highways such as Interstates 80, 90, and 94; eight freight train lines; three passenger train lines; and a commuter service that connects Northwest Indiana to Chicago. International service from Chicago's Midway and O'Hare Airports and from the Gary Regional Airport can easily transport goods and people to anywhere in the world.

Northwest Indiana is also linked to the Atlantic Ocean and the world beyond by the St. Lawrence Seaway and Burns International Harbor by way of Lake Michigan. The nearby Port of Indiana in Portage has direct access to the Gulf of Mexico via the Mississippi River and is located in an international trade zone designed to increase commerce in the region. Gary plans to build an international seaport at Buffington as part of its intermodal cargo park development.

Action Plan

For the first year of its Consolidated Plan, Gary will have a total of $13 million in funding from the Community Development Block Grant (CDBG) program, the HOME Investment Partnership (HOME) program, and the Emergency Shelter Grant (ESG) program. Some of the projects slated for this year include upgrading of the Ambridge-Mann Community Center, the emergency rehabilitation program for housing, and improvements to fire stations.

Citizen Participation

Gary has made a concerted effort to provide opportunities for its citizens to participate in developing the Consolidated Plan. Public meetings were held on September 8 and 29, 1994. A draft of the plan, citizen questionnaire, and other U.S. Department of Housing and Urban Development (HUD) Consolidated Plan materials were made available in appropriate public places, and a summary of the Consolidated Plan was published in the local newspaper. The citizen review and comment period was from September 7 to October 6, 1994.

In 1990 Gary's population was 116,646, a 23-percent decrease since 1980. Gary had 40,752 households, with the average household size being 2.83 people. Of those households, 11,738 had extremely low incomes at 0-30 percent of the median family income (MFI); 5,674 had very low incomes at 31-50 percent of the MFI; 7,260 had low incomes at 51-80 percent of the MFI; and 2,997 had moderate incomes at 81-95 percent of the MFI. Half of the 27,669 Gary households with incomes below 95 percent of the MFI were homeowners.

Conditions

Between 1979 and 1990, the civilian labor force in northwestern Indiana declined almost 10 percent. The area lost more than 40 percent of its jobs in the manufacturing sector, with a 48-percent job loss in the steel mills. In 1980 nonmanufacturing employment represented 60 percent of total employment and by 1990 it had increased to 70 percent.

While manufacturing employment has significantly declined, the five major steel producers in the region have invested millions of dollars to upgrade their northwest Indiana facilities. New retail, service, and small manufacturing firms are locating in the area. Skilled labor, generally overly abundant in the 1980s, is in demand again. In 1983 the unemployment rate had climbed to 15.4 percent; by 1990 it had declined to an annual average of 5.7 percent. Overall, the regional economy seems to be recovering from a severe and prolonged recession and is moving toward a better integrated and potentially sustainable economic base.

Housing Needs

HUD defines housing problems as inadequate physical conditions, overcrowding, or payment of 30 percent or more of income for housing expenses.

Rental households with housing problems include:

• 71 percent of extremely low-income households.
• 63 percent of very low-income households.
• 24 percent of low-income households.
• 7 percent of moderate-income households.

Among rental households, large-family households (five or more related persons) consistently have the most housing problems.

Homeowners with housing problems include:

• 79 percent of extremely low-income households.
• 56 percent of very low-income households.
• 26 percent of low-income households.
• 11 percent of moderate-income households.

Market Conditions

Almost 60 percent of the 40,968 occupied housing units are owner occupied. The vacancy rate is 13 percent for rental units and almost 3 percent for ownership units. About 25 percent of rental units and 28 percent of ownership units are considered substandard.

The Metropolitan Statistical Area's average applicable fair market rent is $424. However, the average affordable rent in Gary is $397, which residents with incomes that are 30 to 50 percent of the MFI can afford. According to the Northwest Indiana Board of Realtors, the value of owner-occupied units in Gary and the metropolitan area is increasing. In 1980 the median value of owner-occupied units was $25,000 for the city and $41,000 for the metropolitan area. In 1990 the median value of owner-occupied units in Gary was $31,700 compared with $54,800 for the metropolitan area.

Affordable Housing Needs

Households that pay 30 percent or more of their income for housing are considered to be cost burdened; those who pay half or more of their income for housing are considered to be severely cost burdened. Seventy-three percent of extremely low-income households, 59 percent of very low-income households, 25 percent of low-income households, and 11 percent of moderate-income households are cost burdened. Those with severe cost burdens include 52 percent of extremely low-income households, 14 percent of very low-income households, and 2 percent of low-income households.

Homeless Needs

An estimated 2,078 persons are homeless. About 67 percent are members of homeless families, 19 percent are victims of domestic violence, 3 percent are mentally ill, and 16 percent are drug or alcohol abusers. The majority of homeless persons in this count were found in emergency shelters.

The city has various agencies and facilities to meet the needs of the homeless, but gaps in service exist. For example, youth who have lived in children's homes throughout adolescence may find themselves without a place to live once they turn 18. Such individuals may not have matured or developed mentally enough to live on their own.

The homeless have an urgent need for safe and adequate housing and, to some extent, supportive services. On the whole, the greatest need is for affordable rental housing for all groups, including large families. Housing is also in short supply for persons who require specialized accommodations.

Public and Assisted Housing Needs

The Gary Housing Authority (GHA) continues to provide safe and sanitary public housing to extremely low-income families and special needs individuals who are financially unable to afford safe and decent private housing. Public housing sites are scattered throughout the city. Gary has 2,469 public housing units, and 201 of them are vacant. About half of the vacant units are undergoing rehabilitation. Based on a recent GHA assessment, 39 public housing units need to be modified to provide accessibility to disabled people.

The GHA also administers 827 tenant-based units through the Section 8 rental assistance program. The program issues 541 certificates and 286 vouchers. Currently, the program has no vacancies. Private sector housing provides 661 assisted units to low-income individuals and families. Other housing assisted programs include Section 221 (d) (3), Indiana Housing Finance Authority (IHFA), the Section 8 set-aside program, and the Project 236 program. At least 1,800 households, including sheltered and unsheltered people, are waiting for available affordable housing.

Barriers to Affordable Housing

Overly restrictive income limits for many HUD programs are major barriers to affordable housing. The city also cited two other barriers: inaccurate appraisal practices, and residents' inability to obtain homeowners' insurance because the city is considered a high-risk area.

Fair Housing

The city cites redlining, where home loans or insurance are withheld from neighborhoods considered to be poor risks, as a serious fair housing problem. However, the Gary Human Relations Commission is working with the Northwest Indiana Community Reinvestment Alliance, a group of financial institutions, to provide mortgages to low- and moderate-income families. Furthermore, the commission is monitoring the practices of lenders and landlords and is working to improve citizen awareness of their rights to seek financial assistance for home improvements and purchase of property. They will also continue to research and analyze information related to the credit needs of the community while seeking ways and means of increasing citizens economic awareness.

Lead-Based Paint

An estimated 21,923 very low-income households and 5,085 low-income households live in housing with potential lead-based paint hazards; 57 percent of the total housing units may contain lead-based paint. Almost all of the 74 licensed child-care facilities probably contain lead-based paint hazards, because they were built before lead-based paints were banned.

To reverse the negative effects of lead-based paint exposure, the city proposes the following actions within the next year:

• Establishing an interagency working group to complete a thorough needs assessment and coordinate hazard reduction efforts across agency lines.
• Developing an educational strategy for target groups.
• Developing technical capacity.
• Supporting existing health care programs.
• Including inspection for lead hazards as a requirement for government-assisted housing rehabilitation.

Other Issues

Like any other city, Gary has a population of residents who have unmet special housing needs. For example, Gary has public and private organizations that address the needs of elderly and frail elderly people, but there is still a shortage of facilities, particularly for the frail elderly population. As the general population ages, the need for additional affordable and supportive housing will increase. At least 100 elderly people need supportive housing. Area nursing homes and home care providers indicated the city needs additional facilities for frail elderly and physically disabled people. The GHA's waiting list for affordable housing includes 60 elderly people.

Accessibility is the most obvious housing need of the physically disabled. About 92 physically disabled people who are not homeless require more accessible housing.

More facilities are needed for the mentally ill population. The Gary Community Mental Health Department provides most of the support for the mentally ill population. In some cases, area hospitals have provided beds to mentally ill people for months because the area lacks alternatives. An estimated 250 people with mental illness who are not homeless have unmet special housing needs.

According to housing and service providers, people who are developmentally disabled, particularly youth, need more transitional and permanent housing. Facilities that provide semi-independent living conditions with limited support services are really needed to enable and encourage self-sufficiency.

Based on data reported by the Clinical Data and Research HIV/AIDS Surveillance, about 287 AIDS cases and 363 HIV-positive cases have been diagnosed in the area. No housing facilities specifically for persons with HIV or AIDS are available.

Community Development Needs

With the help of community input, the city has identified a number of community development needs:

• Transportation and utilities. A regional bus system that links empowerment zone communities to the region needs to be enhanced and expanded. Roads within the city need resurfacing, and some high traffic areas need special attention. The city also needs to upgrade and extend water, sewer, gas, and electric lines.
• Land use. The city must develop a way to use or reuse vacant residential, commercial, and industrial sites. Databases of vacant commercial and industrial buildings are needed to show which sites could be redeveloped.
• Human development. The city plans to initiate a link to national computer networks to help educate and train citizens and to establish child-care centers adjacent to high schools to help keep teen mothers in school.
• Neighborhoods. The city must coordinate neighborhoods through block clubs and precinct members to develop regular cleanup programs. It also needs to remove derelict buildings and structures in the empowerment zone, provide better lighting in some neighborhoods, and trim the trees around lighting.

Vision for Change

The city's objectives for the coming years include providing decent housing and suitable living environments, and expanding economic opportunities for low- and moderate-income people.

Housing Priorities

The city has identified the following high-priority housing needs for the next 3 years:

• Rehabilitation. The city intends to rehabilitate portions of public housing and the Oak Knoll and Ambassador apartments. It also will provide energy efficiency improvements.
• Rental assistance. This will be accomplished through the Section 8 certificates, tenant-based Section 8 vouchers, the Township Trustee Rental Assistance, and the Catholic Family Services.
• Support facilities and services. This includes funding for the Family Self-Sufficiency program, HOMES for Families program, home counseling, and maintenance assistance.
• Homebuyer assistance. Funding will be provided to the Pride and Hope, Family Self-Sufficiency, and Down Payment Assistance programs.

Nonhousing Community Development Priorities

High-priority community development needs include:

• Preventing blight within communities, particularly in low- and moderate- income neighborhoods. Principally, the city hopes to improve public facilities to make these communities more attractive.
• Eliminating conditions that are detrimental to health, safety, and public welfare through code enforcement, demolition, interim rehabilitation assistance, and related activities.
• Improving the quality of community services for low- and moderate-income people. These services will complement the physical improvement of the city and will include recreational, educational, and other social needs of residents.
• Providing a comprehensive plan that encourages a more rational use of human and natural resources and a better arrangement of residential, commercial, industrial, recreational, and other activity centers. The plan would establish priorities based on sound land use principles, citizen input, and needs analyses.
• Increasing neighborhood diversity and vitality by creating low-income housing opportunities throughout the city, not just in isolated areas.
• Stimulating economic development activities, especially in the private sector to strengthen the tax base, provide jobs for residents, and reverse the out-migration of residents and businesses. The city will assist in central business district revitalization to review private investment and bolster public confidence.
• Increasing the mobility of low-income, moderate-income, and disabled persons by providing access to certain public buildings and matching funds for mass transit projects such as bus shelters.

Antipoverty Strategy

The city has integrated social services and housing activities for households below the poverty line. Gary's antipoverty strategies are consistent with the National Affordable Housing Act and include:

• Encouraging development of programs that help families save for a downpayment on a home.
• Promoting development of programs to retain the federally subsidized housing stock as affordable housing.
• Establishing new public and private networks and strengthening existing ones.
• Fostering development of programs designed to expand Federal rental assistance to very low-income families.
• Establishing programs to preserve and upgrade the existing affordable housing stock, including eliminating blight and other conditions that negatively impact housing opportunities for families.
• Promoting and initiating energy conservation measures and use of alternative energy sources.

Coordination of Strategic Plan

The city is restructuring departmental services and enlisting nonprofit organizations and private sector support to implement its Consolidated Plan. After completing these activities, the city will be better equipped to create and develop more efficient opportunities to provide safe and affordable housing.

Description of Key Projects

• Fire stations improvement project. The city will improve fire stations serving mainly low- and moderate-income residential areas. The project will use about $679,000 in CDBG funds.
• Neighborhood renewal program. This includes coordinating neighborhood demolition activities and improving curbs, sidewalks, streets, and parks. The city will dedicate $500,000 in CDBG funds for these activities.
• Curbs and sidewalk reconstruction. This involves making curbs, sidewalks, and streets accessible to persons with disabilities. The city will erect new street signs and other street furnishings in areas that serve low- and moderate-income persons. The city will allocate $740,000 in CDBG funds for this activity.
• Community center improvement/construction. The city will upgrade the existing Ambridge-Mann Community Center and help the YMCA build a facility in the Broadway Corridor. Each project will use about $100,000 in CDBG funds.
• Main street downtown revitalization. Main Street Gary will establish a loan and grant fund to encourage development and rehabilitation of upper-floor rental housing units in existing historic structures and storefront restorations and renovations. The city will provide $50,000 in CDBG funds for this activity.
• Emergency rehabilitation program. This provides emergency assistance for 30 to 60 low-income homeowners to rehabilitate substandard property. The city will dedicate about $400,000 in CDBG funds for this program.
• Demolition and board-up program. The project demolishes or secures unsafe structures throughout the city. The project will receive about $750,000 in CDBG funds.
• Ambassador Arms rehabilitation. The Jefferson Park Community Development Corporation will receive a loan of $650,000 in CDBG funds to rehabilitate the Ambassador Arms Building, which will have 78 apartments available to low- and moderate-income persons.

Lead Agency

The Gary Community Planning and Development Division is the lead agency for the Consolidated Plan.

Maps

MAP 1 depicts points of interest in the jurisdiction.

MAP 2 depicts points of interest and low-moderate income areas.

MAP 3 depicts points of interest, low-moderate income areas, and minority concentration levels.

MAP 4 depicts points of interest, low-moderate income areas, and unemployment levels.

MAP 5 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects.

MAP 6 depicts Neighborhood Segments and proposed HUD funded projects.

MAP 7 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects within one of the four neighborhoods indicated in MAP 6.

MAP 8 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects within another of the four neighborhoods indicated in MAP 6.

MAP 9 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded project(s) from a street level vantage point; in addition, a table provides information about the project(s).