U.S. Department of Housing and Urban Development
Office of Community Planning and Development

CITIZEN'S SUMMARY

The State of Alabama consists of 67 counties, during the decade of the 1980's, thirty-five of the Counties experienced a decline in population with the greatest decline in rural counties in the southern portion of the state. Some central cities also experienced moderate declines, that included Birmingham, Anniston, Gadsden, and Florence. The most rapidly growing counties were mostly located in the northern part of the state, however, Baldwin and Houston counties located in the southern and southeastern parts of the state also recorded substantial growth. The greatest expansion in the Alabama economy occurred within the service sector, while growth in the manufacturing sector grew by one percent.

Action Plan

Alabama's Consolidated Plan presents a strategic vision for housing and community development. It includes a One-year Action Plan for spending approximately $55,372 million of Community Block Grant (CDBG), HOME Investment Partnership Program, HOPWA, Emergency Shelter Grant, and program income funds in 1995. The funds will primarily be spent on housing, infrastructure, and economic development activities.

Citizen Participation

The state held five public hearings during the development of the 1995 Consolidated Plan. Additionally, consultations were held with a variety of groups and state agencies including ADEM, Depts.of Mental Health, Public Health, Human Resources, Education, and Transportation. A 30 day comment period was provided after the draft plan was developed and prior to submission of the final Plan.

COMMUNITY PROFILE

Alabama's 1990 population was 4,040,587 with 1,506,009 households. the estimated median family income is $28,688, with 20 %of the population living in poverty. There are approximately 407,000 low income households in the State. The minority population comprises 26.8 % of the total population with African-Americans being approximately 95 % of that figure. While both low income and minority families reside in all parts of the state, the highest concentration of African- Americans is in the Black Belt region of the state.

HOUSING AND COMMUNITY
DEVELOPMENT NEEDS

Conditions

The State's population growth rate was the seventh lowest among the nine southeastern state's during the 1980's, while there has been some expansion in the economy, the decade saw only moderate progress. Continued out-migration of the youngest and most highly trained segment of the population is retarding economic growth in the 1990's.There is a significant proportion of the population burdened by low incomes and forced to live in substandard housing.

Housing Needs

Alabama's Consolidated Plan indicated two critical housing needs: increasing the affordability of housing and quantity of affordable housing. To address affordable housing needs, rent controlled housing to reduce cost burdens. To address housing quantity, funds for the construction of new rental housing. Another priority was the rehabilitation of existing housing and assistance to first time home buyers.

Very low and low -income renter households are experiencing a significant problem with affordable rents. Over 64 % of very low and 26 % of low-income renters are currently paying in excess of 30 % of their incomes in rental expenses.

Housing Market Conditions

According to the 1990 census, Alabama has 1,670,379 housing units. Rental housing units account for 27 % of the units in stock and had a vacancy rate of 9.46 %. Owner occupied units account for 64 % of the units in stock with a vacancy rate of 1.74 %.

Approximately 98,000 units were listed as "other", with a mixture of one, two, and three bedroom units.

Affordable Housing Needs

Approximately 203,000 dwelling units were added in the past decade, however, much of the housing is beyond the price range of lower-income households. Until the HOME Program was funded, little new affordable multi-family rental housing was constructed or rehabilitated. Although that the trend has changed, more units are needed and the 1995 Action Plan addresses those needs.

Households with incomes at or below 50 % of MFI have the greatest housing cost burden. They need rental assistance and affordable housing options. Lower income home owners need rehabilitation assistance, and low-income home buyers need downpayment and /or second mortgage assistance, credit counseling, and home maintenance training.

Homeless Needs

The available information concerning the homeless population in Alabama is scanty and incomplete. the limited number of studies that have been completed are fragmentary and provide only estimates of the homeless population statewide. The state had 132 shelter facilities in 1990, plus there were 531 units of public housing set-aside for the homeless that year. While the studies that have been undertaken in urban areas are far from complete, essentially no information is available at all concerning the magnitude of rural homelessness.

While the major urban centers of Birmingham, Montgomery, Mobile, and Huntsville have made progress in addressing the identified needs of their homeless population, the state as a whole has not been able to accurately identify the magnitude of the problem and therefore the limited resources available to the state are prioritized to those needs which can be clearly identified. However, there is clearly a need for permanent supportive housing for homeless and non-homeless with special needs, such as the frail elderly , persons with disabilities, and persons with HIV/AIDS, and the 1995 Action Plan attempts to address those needs with the limited resources available.

Public and Assisted Housing Needs

Since there is no state agency responsible for public and assisted housing, this area was not addressed in the state's Consolidated Plan.

Barriers to Affordable Housing

In analyzing the barriers to affordable housing in Alabama, it has become apparent that public policies (statutes, ordinances, regulations, administrative procedures and processes) have been much more restrictive than originally thought. The more prevalent barriers are those policies which are customary and/or implied rather than those which are the rigid on-the-books type.These institutional barriers are a mixture of federal, State, and local policies, laws or customs. The State has historically allowed local jurisdictions to set up their own rules regarding housing, land usage, etc.

Fair Housing

The State has reviewed any impediments to fair housing and has a copy of the report on file and available for public review.

Lead-Based Paint

The state estimates that the number of units with a potential hazard ranges between 815,300 and 997,600 . This amounts to an estimated 49-60 percent of all housing units in the state. Housing units with the greatest exposure to lead-based paint are located in the state's most highly populated counties. Data from the 1990 census indicate that 26 % of all children under five were below the poverty line and were most likely to live in pre-1980 housing. The state is instituting a six part strategy to address the potential problem of lead-based paint.

Other Issues

Community Development Needs

Alabama is fortunate to have a relatively low unemployment rate. Nevertheless, developing the skills of low-income persons to meet the requirements of a changing economy will remain an important long-term need. Community development needs include infrastructure improvements, economic development grants and loans, and various other needs such as those generally associated with public services.

Coordination

The Alabama Department of Economic and Community Affairs is the lead agency for the development and implementation of the state's Consolidated Plan. They work closely with other state agencies and departments as well as small cities, counties, and others to develop and implement the One-Year Action Plan.

HOUSING AND COMMUNITY
DEVELOPMENT STRATEGY

Vision for Change

Housing and Community Development Objectives and Priorities

Although specific subgroups (small families, elderly, persons with HIV/AIDS) may have problems that are unique, housing problems in the State are primarily related to low income and an insufficient quantity of affordable housing. Housing strategies and priorities reflect those conditions. Housing objectives focus on the supply of affordable housing. Community development objectives are targeted toward providing water and sewer systems, promoting economic development, and provide resources for community-based organizations to address the non-housing needs of low and moderate income.

Housing Priorities

Priorities for housing include increasing the supply of affordable single and multi-family housing, reducing the cost burden for very low, low, and other low income residents. Addressing the needs of large families, the elderly, and persons with disabilities.

Priorities for homeless alleviation include providing adequate emergency shelters, transitional, and permanent housing for homeless persons, creating supportive services for homeless individuals and families, and providing support networks and services to persons at risk of becoming homeless.

The priority for non-homeless persons with special needs is to address their requirements for permanent housing, especially the frail elderly, persons afflicted with HIV/AIDS, and other identified persons with special needs.

Non-Housing Community Development Priorities

The highest priority is for infrastructure improvements, especially to address the issues of failed water and septic systems.

Economic development loans and grants that create new jobs, retains existing employment, and expands the local tax base is the next highest priority.

Encouraging communities to plan for future growth and needs through a set-aside for planning grants.

Provide funding for community-based non-profits to address non-housing needs of their neighborhoods.

Anti-Poverty Strategy

The State through its agencies, instrumentalities, and individual communities must promote Alabama, create jobs and economic growth, design and implement affordable housing programs, offer exemplary health care, develop a better educational system, and generally create an environment which allows for the empowerment of those who are economically disadvantaged.

The State through ADECA's Community Services Division (CSD), work with community Action Agencies, County Commissions, and others to address poverty issues in the state. AHFA's affordable housing program, the Job Opportunities and Basic Skills Training (JOBS) Program, and other related service programs directed toward poor Alabamians afford opportunities to attain the skills and employment needed to rise above the poverty level.

Housing and Community Development Resources

The primary Federal resources include CDBG, HOME, Section 8, public housing, ESG, HOPWA, and the Supportive Housing Program. State resources include the Alabama Housing Finance Authority's MRB, LIHTC, Downpayment Assistance Program, and Habitat for Humanity Loan Purchase Program. Local resources include affordable housing programs conducted by private lending institutions, and a wide range of non-profit initiatives as well as truly local funds to better address more expensive needs.

Coordination of Strategic Plan

ADECA as the lead state agency for the development and implementation of the State Consolidated Plan, is responsible for the coordination of programs, initiatives, and resource available to the state. ADECA will oversee the implementation of the strategic plan and the one-year action plan, work with the various agencies, non-profits, for-profits, and private lenders.

Although the State has a well developed network of government agencies, non-profits, and private organizations to carry out its Consolidated Plan, it recognizes that there are some gaps in the delivery of services. Coordination of services and programs for the non-homeless special needs population as well as the homeless population needs strengthening. Further coordination between State, County, City, and private lenders is needed to ensure that the maximum number of residents requiring some form of assistance are able to access the available resources.

ONE-YEAR ACTION PLAN

Description of Key Projects

The State's One-Year Action Plan outlines the proposed use of approximately $55.372 million in CDBG, HOME, HOPWA, and ESG funds, in addition to program income and matching funds. These funds will be spent on an array of activities, including:

Locations

These funds will be distributed throughout the State, however, some are targeted to address particular or acute needs that have been identified. In addition, a significant amount of funds will be used to address infrastructure and drainage improvements, community facilities, and to address needs of homeless individuals and families.

Lead Agencies

The PED Division of ADECA will have overall responsibility for the coordination of the implementation of the State's 1995 Action Plan.

Housing Goals

The State anticipates funding 40-50 projects with HOME and LIHTC, in 1995, which will provide 2000-3000 multi-family rental units targeted at residents at or below 60 % of median income. Additionally, approximately 225 single-family residents will be rehabilitated in 1995, and 128 units will be rented with HOPWA funds for persons afflicted with HIV/AIDS.
To comment on the State of Alabama's Consolidated Plan, please contact:
Mr. Edwin Gardner Chief, PED 334-242-5460
Return to Alabama's Consolidated Plans.