The City of Fort Smith, Arkansas is a thriving community located on the banks of the Arkansas River at the foothills of the Ozarks. Fort Smith was originally settled as an outpost to control Indian uprisings in the 1800's and later to bring law and order to the then "northwest territory". Fort Smith is the second largest city in the state of Arkansas. The City of Fort Smith is located in the heartland of America. Geographically, Fort Smith is readily accessible to I-40 which runs east and west through the country. The Fort Smith area is described as many different things by many different people: It is the major manufacturing center for Western Arkansas; it is a focal point for shopping, dining, entertainment, and cultural events for the surrounding communities; it is a nice place to settle down and raise a family; it is a good place to retire.....
The City of Fort Smith will receive $992,000 in Community Development Block Grant funds and $386,000 in HOME Investment Partnership Act Funds for the 1995 fiscal year. The One-Year Action Plan outlined in the City's Consolidated Plan details these funds to be spent primarily for housing, neighborhood improvements, public service activities and assistance to nonprofit agencies providing service and assistance to the low income community.
Citizens, public agencies and other interested parties were notified through
televised and printed media of public hearings held to receive and make input on
the Consolidated Planning process. Three public hearings were held on January
5, 1995 to receive input on priorities for CDBG and HOME funding. A final
public hearing was held on January 17, 1995 to adopt funding priorities. Three
(3) more public hearings were held on March 9, 1995 to make application for
CDBG/HOME funds. A final public hearing was held on April 18, 1995 to allocate
FY ?95 funds and a final public hearing was held on April 25, 1995 to approve
the Consolidated Plan.
The City of Fort Smith is one of the few cities of its size in Arkansas that is governed under the City Administrator form of government. 1990 Census statistics showed that the population of Fort Smith 72,438. It is estimated that during the daytime this population increases to approximately 220,000 people. Fort Smith is the largest city within Sebastian County and is in fact the largest city along the I-40 corridor from Oklahoma City to the west and Little Rock to the east.
1990 Census statistics determined that the racial makeup of Fort Smith was White - 87%, black -7 %, American Indian - 2%, Asian-Pacific Islander - 3%, and Hispanic Origin - 1%. The 1990 Census indicated that only 766 persons of Hispanic Origin resided in the City of Fort Smith, however Police and other social service agencies estimate that there are from 5,000 to 10,000 illegal Hispanic aliens in the area.
In 1990, the Fort Smith Metropolitan Statistical Area (MSA) had a total
personal income of $2.5 billion. This total personal income ranks the Fort
Smith MA 222nd of 320 MA's in the nation. However, low the ranking of our area,
the 1990 ranking is up from 1980 when the Fort Smith area total person income
was $1.3 billion, for a national ranking of 227th. (The Fort Smith MA includes
Sebastian, Crawford, and Sequoyah counties, with 1990 resident population of
175,911).
The City of Fort Smith is predominately a bedroom community. Acquiring a home, raising a family, building a career or business, and retiring as comfortably as possible are all familiar patterns of life in our community. Home ownership is a major component of the "American Dream". The information below reviews housing and home ownership statistics for Sebastian County compared to state and national averages. The table below summarizes real estate conditions for real estate and home ownership for the United States, Arkansas and Sebastian County.
| Real Estate Conditions for 1990 | |||
|---|---|---|---|
| SEBASTIAN COUNTY* |
ARKANSAS ** | UNITED STATES ** | |
| Percent of home ownership | 59% | Not Available | Not Available |
| Residential building | 24,719 | 1 Million | Not Available |
| Permits for new homes in last 5 years |
1,141 | Not Applicable | Not Applicable |
| Average cost-per-acre industrial land | $25,000 | Not Available | Not Available |
| Average cost single- family, 3-bedroom, 2,000 sq. ft. home | $85,000 | 455,138(1) | $111,667(1) |
| Average monthly rent, single-family, 3 bedroom, 2,000 sq ft home |
$400 | $240(1) | $414(1) |
| Source: | *Fort Smith Chamber of Commerce |
| **CACI Housing Profile; 1990 U.S. Census
(1) these figures are for the "average unit" and not comparable to the single-family, 3 bedroom, 2,000 sq ft home used for Sebastian County |
Housing problems in the Fort Smith area relate primarily to substandard housing and a lack of affordable housing. Homelessness is not a problem of significant numbers in the community. According to one agency that provides shelter to the community's small homeless population, "For those who are homeless and want shelter, there is always a place to stay in our area."
Housing Supply: The following table supplies information based on U.S. Census statistics regarding the supply of the total housing stock, and the breakdown of renter, owner and vacant housing units in our community.
According to the 1980 Census there were 2,609 vacant housing units in Fort Smith. In 1990, 3,413 housing units were vacant. This represents a 23.6% increase in vacancies. Of the 3,413 vacant units, 1,942 units were specified vacant for rent, 555 were specified vacant for sale only, all others represented all other vacant units. The total number of year round housing in Fort Smith grew from 30,385 in 1980 to 33,176 in 1990 with a rate of increase of 8.4%. During the period of 1970 to 1980 year round housing grew from 22,896 in 1970 to 30,385 in 1980 with a rate of increase from 24.68%, and 19,975 in 1960 to 22,896 in 1970 reflecting a rate of increase of 12.76%. In 1990 the aggregate rent asked was $468,218 and the average rent asked was $241. The COMPASS Study indicates that in today's market the average monthly rent for a single-family 3 bedroom 2,000 square foot home is $400. In 1990 the aggregate price asked for vacant realty was $28,751,000 and the average price asked was $51,804. According to the COMPASS Study the average cost of single family 3 bedroom, 2,000 square foot home was $85,000. The low average rent in the late 1980's and early 90's is an indicator of the adverse economic conditions in Fort Smith during that time. Although rents and housing costs are increasing, there is still an uncertainty of whether these conditions will continue. Low rents cannot recoup investments in rental housing and hence production is just beginning to come out of a long term slump. New homeownership opportunities did see some hope with decreased interest rates; however, down payment and closing costs are still difficult and sometimes insurmountable obstacles for potential low income homebuyers and interest rates are on the rise again. Conversely, while average rents and average sale prices are increasing - disposable income and hourly wages are not increasing proportionately, thereby greatly diminishing affordable housing opportunities for low income households.
The most prevailing need of the owner population is the need for assisted rehabilitation of their homes, as well as down payment and closing costs assistance. According to the HUD Databook, 59% of very low income (0-30% MFI) owners experience housing problems, 585 experience cost burden greater than 30%, and 34% experience cost burden greater than 50%; 33% of low income (31% to 50% MFI) owners experience housing problems, 32% experience cost burden greater than 30%, and 12% experience cost burden greater than 50%; 28% of other low income (51% to 80% MFI) owners experience housing problems, 26% experience cost burden greater than 30% and 6% experience cost burden greater than 50%.
The Community Development Department of the City of Fort Smith offers a grant rehabilitation program to eligible residents. Any applicant applying today has a three to four year waiting period before rehab can begin, barring certain emergency situations.. The Community Development Department and local lending institutions have planned and attempted programs targeted toward providing assistance to homebuyers. While there are programs in place to help with down payment and closing costs and even in some instances reduction in principal, it is very difficult and impossible in some cases for low income families to service a mortgage loan. Additionally, in many instances, many of these families need assistance in correcting credit problems, before they can obtain a mortgage loan.
In consideration of Homeless Persons, both individuals and those with families, it was the consensus that this subpopulation is able to find shelter on an emergency basis. As the COMPASS Study reported "Homelessness is not a problem of significant numbers in the community. According to one agency that provides shelter to the community's small homeless population ~ for those who are homeless and want shelter, there is always a place to stay in our area." The greatest need experienced by both homeless individuals and those with families is the need for transitional housing and services once they have exhausted their ability to stay in emergency shelters.
There are adequate shelters and facilities within the City of Fort Smith to meet the needs of the area homeless. Many of these shelters are too small, not accessible to the handicapped or in need of rehabilitation. Because the need is met in the number of shelters available, the City has chosen to assist these shelters which provide continuum of care with their rehabilitation needs. The City also provides grant funds to a number of organizations which provide support services to the homeless. Those services include access to a local food pantry, rental/security deposits, medical care and transportation.
Units maintained by the Fort Smith Housing Authority are maintained in good and rentable condition. The Fort Smith Public Housing Authority reports the following needs:
The Ragon Homes community is in need of street and sidewalk repair and replacement. Water drainage on site is a problem due to the poor drainage system in the streets. The PHA is considering a drainage plan that will request street and drainage replacement by the City of Fort Smith. The PHA is in need of additional parking at the Ragon and Nelson Home sites. PHA residents have requested additional security fencing and lighting. Air conditioning has become a priority with the PHA at both Ragon and Nelson sites. To assist the PHA in energy conservation, unit lighting needs to be addressed in both complexes, updated light fixtures using fluorescent lighting would assist in this area. Heating units are a continued problem at the Nelson Home Community. Units are twenty five (25) years old plus, water stands in plumbing and creates a health hazard to residents. Residents have requested better insulated doors and security locks. Residents continue to request additional security measures from the PHA and City law enforcement agencies. The PHA will plan for roof replacement at its senior citizen complex. Water and sewer lines are an ongoing expense to the PHA maintenance staff.
The City of Fort Smith has no public policies that would act as barriers to affordable housing within the City. The City is very receptive to any new policy or regulations that would contribute to a reduction in housing costs, provided minimum development standards are maintained. The following public policies are in place to reduce the cost of developing and maintaining affordable housing in Fort Smith: Taxing Policies; Land Use Controls; Zoning Regulations; National Flood Insurance Program; Building and Permit Fees; Infill Development (Reduction of Barriers).
The City has worked closely and will continue to do so with financial institutions in their coordination and planning of Community Reinvestment Act activities. The City has provided and does provide educational seminars with local Realtors, and for requesting agencies and schools regarding affordable housing programs and fair housing requirements.
According to Technical Assistance Bulletin 1 ~ Lead-Based Paint Hazards and the Comprehensive Housing Affordability Strategy; "Childhood lead poisoning is the number one environmental health hazard facing American children. The federal government estimates that 10 - 15% of all preschoolers (as many as 3 million) have blood lead levels high enough to warrant concern for their intellectual development. While lead poisoning affects children of every socio-economic and demographic stratum, the poor and people of color are disproportionately affected." The report goes on to say "Lead-based paint containing up to 50% lead was in common use during the 1940's. Although the use and manufacture of lead-based paint declined in the 1950's, exterior lead-based paint and some interior lead-based paint continued to be available until the mid-1970's. In 1978 the Consumer Product Safety Commission banned the manufacture of paint containing more than 0.06% lead by weight for use on interior and exterior residential surfaces and furniture".... "By itself the presence of lead-based paint does not constitute an exposure hazard. Lead in paint that is intact on non-impact, non-friction surfaces constitutes a latent or potential problem that may, at some future time, be released and cause harm."
The following statistics from the HUD Databook indicates housing (by age) which may be subject to lead based paint hazards. There are 23,339 housing units built prior to 1980. This pre-1980 housing represents 70% of the total housing stock in Fort Smith. 14.9% of these units are occupied by very low income renters, 7.0% by other low income renters, 8.7% by very low income owners and 4.3% other low income owners. 35.9% of the pre-1980 housing is occupied by very low or low income households. 40.7% of the pre-1980 housing is rental housing and 59.3% is owner housing.
There is a documented need from waiting lists for elderly and mobility impaired housing for all income categories. Current estimates indicate a need for at least a 100 unit facility to meet this need. That need will continue to grow as the population ages. Services providers estimate that the need for additional units will exceed 500 - 700 if today's needs are not met. Housing providers of services and facilities have also noted that they have received a number of calls from potentially eligible tenants who presently own a home, but who cannot maintain it, but who are not ready for nursing home services. These people are in a position where they must first sell their home, because if they vacate the property, their homeowner's insurance will be canceled in most cases. These elderly are in a marginal category and will be joining waiting lists as soon as circumstances permit.
America is an aging society. Increased life expectancy, an aging baby-boom population, and lower fertility rates all combine to make older Americans the fastest growing segment of our population. The impact this trend has on American families is profound. Multi-generational families bring changing needs to the household, including the need for elder care. While the elderly seek to live independently for as long as possible, the need for elder care will place new pressures on families. Currently, more than 3.6 million Americans have both a frail elderly family member and children under 15 years old in the household. This so-called "sandwich generation", ~ adults wedged between caring for two generations of family ~ has significant needs that differ from those of yesterday's nuclear family.
The City has always worked closely with outside agencies in the provision of
services. The City funds many of these agencies through the Community
Development Block Grant Program and through the City';s General Fund. For
example, funds have been appropriated to assist the Crisis Center for Battered
Women, the Good Samaritan Clinic, the Community Services Clearinghouse, the Sam
Van, Fort Smith Boys and Girls Club, Fort Smith Housing Authority, McGill Center
and Mallalieu Black Community Developers.
The Consolidated Plan was developed to achieve the following goals:
These goals are designed to meet the needs of principally very low income, low income and moderate income residents.
The following objectives and priorities were adopted by the Fort Smith Board of Directors, in providing direction for the Fort Smith Consolidated Plan:
| HIGH PRIORITY | |||
|---|---|---|---|
| 0-30% | 31-50% | 51-80% | |
| Owner Cost Burden > 30% | High | High | High |
| Owner Cost Burden > 50% | High | High | High |
| Owner/Physical Defects | High | High | High |
| Owner/Overcrowded | High | High | High |
| MEDIUM PRIORITY | |||
|---|---|---|---|
| 0-30% | 31-50% | 51-80% | |
| Renter/Small Family/Physical Defects | Medium | Medium | Medium |
| Renter/Large Family/Physical Defects | Medium | Medium | Medium |
| Renter/Large Family/Overcrowded | Medium | Medium | Medium |
| Renter/Elderly/Physical Defects | Medium | Medium | Medium |
| Renter/Small Family/Cost Burden >30% | Medium | Medium | Medium |
| Renter/Small Family/Cost Burden >50% | Medium | Medium | Medium |
| Renter/Large Family/Cost Burden | Medium | Medium | Medium |
| Renter/Large Family/Cost Burden >50% | Medium | Medium | Medium |
| Renter/Elderly/Cost Burden >30% | Medium | Medium | Medium |
| Renter/Elderly/Cost Burden >50% | Medium | Medium | Medium |
| LOW PRIORITY | |||
|---|---|---|---|
| 0-30% | 31-50% | 51-80% | |
| Renter/Small Family/Overcrowded |
Low | Low | Low |
| Renter/Elderly /Overcrowded |
Low | Low | Low |
The City has identified Public Service activities as high priority in non-housing community development needs, agency rehabilitation follows as low priority.
The City works closely with the Fort Smith Chamber of Commerce and the business community to attract new businesses and jobs to Fort Smith. The City also participates in the State Enterprise Zone Program which allows certain tax incentives for the creation of jobs, particularly those jobs geared toward lower income workers. The Advertising and Promotion Commission (A & P) aggressively promotes tourism business in the Fort Smith area, which traditionally creates jobs that hire low income workers, i.e. food service, hotel/motel service, ticket sales, etc. The City created the A & P Commission, which is funded through the levy of a two percent hotel tax, and works closely with them in their tourism activities. Additionally, the City has a one-cent sales tax which is dedicated to street and drainage improvements and a one-cent sales tax dedicated to various improvements including parks, police, transit, etc. These taxes have allowed local contractors to expand their operations and hire additional work force, which is again traditionally low income workers. The Sales Tax funds (Street and County Sales tax) captures over approximately twenty million dollars a year.
The City of Fort Smith receives funds from the Department of Housing and Urban Development in the form of the Community Development Block Grant Program and the HOME Investment Partnership Act Program. Matching funds are also sought through ADFA's HOME Program and the State of Arkansas' Land and Water Conservation Fund Program for park improvements. The City of Fort Smith currently assesses a one penny sales tax which is dedicated specifically to street improvements with associated drainage. The City receives approximately $10 million in revenues annually from the designated street sales tax fund. It is anticipated based on current budget requests that the City will spend about two million dollars in targeted low income areas for street and associated drainage improvements. The funds expended for these purposes will be used as match for HOME Program funds. The City also assesses another one penny County sales tax which is designated specifically to various improvements including parks, police, transit, etc. The County sales tax fund generates approximately $10 million in revenues.
The funds expended for these purposes will be used as match for HOME Program funds when these street and County sales tax projects are ongoing in areas where HOME investments are made.
The City has always worked closely with outside agencies in the provision of services. The City funds many of these agencies through the Community Development Block Grant Program and through the City's General Fund. For example, funds have been appropriated to assist the Crisis Center for Battered Women, the Good Samaritan Clinic, the Community Services Clearinghouse, the Sam Van, Fort Smith Boys and Girls Club, Fort Smith Housing Authority, McGill Center and Mallalieu Black Community Developers.
The City has worked closely and will continue to do so with local financial
institutions in their coordination and planning of Community Reinvestment Act
activities. The City has provided educational seminars with local Realtors
regarding affordable housing programs and fair housing requirements.
| Neighborhood Development | $ 455,688 |
| Public Service | $ 141,896 |
| Homelessness & Continuum Of Care | $ 28,656 |
| Agency Rehabilitation | $ 108,240 |
While projects particularly those of a public service nature are dispersed throughout the city, the majority of projects are located on the north side of town, which is predominately the lower income areas of concentration.
The City of Fort Smith Community Development Department has been identified as the lead agency to lead and coordinate the Consolidated Planning Process. The City has long enjoyed good working relationships with public and assisted housing providers and private and governmental health, mental health and service agencies. The City enhanced these relationships by coordinating working meetings involving these players to determine their needs. These meetings also served to network these agencies, so that everyone had a clear understanding of the services available to assist Fort Smith citizens, particularly the low income community. The City has in many instances provided funding to a variety of these agencies either through the City's General Fund or through the Community Development Block Grant Program.
| FIVE YEAR PROJECTIONS | |
|---|---|
| OBJECTIVE | STRATEGY |
| Protect and preserve existing housing stock | Rehabilitation of @100 substandard owner occupied units through CDBG/HOME programs
Acquisition, rehabilitation and resale of @10 substandard units to low income persons through HOME/CHDO fund allocation |
| Encourage homeownership among the low income community | Provide assistance to 20 households in obtaining
down payment /closing cost and rehabilitation assistance through
HOME homebuyer allocation
Assist in the construction of 5 new housing units through HOME/CHDO fund allocation |
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; in addition, a table provides information about the project(s).
MAP 6 depicts neighborhood segments and streets with proposed HUD funded projects.
Ms. Donna Smith
Community Development Director
PH: (501) 784-2209
