With 156,844 residents, Tempe is the fifth largest city in Arizona. Located about 10 miles southeast of Phoenix, the city owes its existence to its geography, a rock bottom river crossing -- the only one -- in the Salt River Valley. In 1871 Charles Hayden opened a flour mill and a ferry at this strategic location.

The Arizona Territorial Normal School, a training school for teachers, opened with 30 students in Tempe in 1886. The Normal School grew and eventually became Arizona State University, one of the largest and fastest growing schools in the Nation.

Action Plan

This Consolidated Plan presents Tempe's housing and community development needs and priorities that will be funded through the Federal Community Development Block Grant (CDBG) program. For the first year of the 5-year plan, Tempe is to receive $1,994,000 in CDBG funds. This money will be used to finance 17 housing, community development, and service activities.

Tempe will also receive $664,718 in HOME Investment Partnership Program (HOME) funding through the Maricopa County HOME Consortium. More complete information about the housing conditions and needs of Tempe has been submitted to the U.S. Department of Housing and Urban Development (HUD) in the HOME Consortium Consolidated Plan. HOME Consortium member jurisdictions include Maricopa County and the cities of Tempe, Mesa, Chandler, Peoria, Glendale, and Scottsdale. Planned HOME activities are included in the Consortium's Consolidated Plan.

Citizen Participation

Two public hearings were held to solicit public input concerning housing and non-housing community development priorities to be included in the plan. They were held January 11, 1995, at the Escalante Senior Center, and January 25, at the Scales School. An overview of the Consolidated Plan was presented, including current demographic information. Copies of a draft plan were distributed for citizen review and comment before its final adoption by the City Council on May 11, 1995.

COMMUNITY PROFILE

Tempe is a growing and dynamic city in the Phoenix-Mesa metropolitan area. It has a strong and diversified economy. The city's population in 1990 was 141,865. In 1994 Tempe's labor force was 96,021 persons, and its unemployment rate was 3.9 percent.

Commercial and industrial development has increased. In 1994 building permits were issued for 1.4 million square feet of new commercial/retail space, more than 3 times the square footage allowed in 1993. Industrial space permits in 1994 totaled 500,000 square feet, almost 4 times greater than the amount issued in 1993. Rehabilitation of older buildings in the downtown area will add another 77,000 square feet of office, retail, and restaurant space in the business district. Tempe will host the 1996 Super Bowl, which will boost the hospitality and tourism sectors of the economy.

Of the 55,540 households in Tempe, 18 percent have annual incomes of 80 percent or less of the area median family income (MFI). Census data show the following levels of low- to moderate-income households:

• Very low-income (0-30 percent of MFI) -- 3,100 (6 percent).
• Low-income (31-50 percent of MFI) -- 4,898 (8 percent).
• Moderate-income (51-80 percent of MFI) -- 2,241 (4 percent).

The minority population is 27,228, or 19 percent of Tempe's total population of 141,865, according to the 1990 census. Racial or ethnic subpopulations, as a percentage of the overall minority population, are:

• Hispanic (any race) -- 57 percent.
• African American (non-Hispanic) -- 16 percent.
• Asian American or Pacific Islander -- 21 percent.
• Native American -- 6 percent.

HOUSING AND COMMUNITY DEVELOPMENT NEEDS

Conditions

The housing market in Tempe is divided into two areas, north Tempe and south Tempe. Arizona State University is in north Tempe. Absentee ownership and the transient student population are factors that have caused decay of residential housing in north Tempe. Students living off campus compete with low- and moderate-income families for the available affordable housing. South Tempe, on the other hand, is the newer part of the city where housing is still being constructed. Housing prices are typically higher in south Tempe than in north Tempe.

Housing Needs

Based on data from the 1990 census, the greatest affordable housing need is among very low- and low-income homeowners whose homes are in need of moderate or substantial rehabilitation. Tempe's housing stock is aging, and the current economy has placed an increased burden on homeowners whose homes need maintenance.

Market Conditions

Tempe has 61,452 year-round housing units, of which 55,540 are occupied. Of these, 28,645 units are owner occupied, and 26,895 are renter occupied. About 44 percent of the city's housing units are single-family homes; 37 percent are in multifamily structures; and 13 percent are townhouses or condominiums.

The estimated vacancy rate for single-family homes, townhouses, and condominiums was 2 percent as of the fourth quarter of 1994. For multifamily housing units, vacancies were 2 percent in north Tempe and 3 percent in south Tempe.

The median value of owner-occupied units was $91,200 in 1990. The median value of vacant, for-sale housing was $86,600.

Average monthly gross rental costs (average rent plus average utilities costs) in Tempe in the first quarter of 1994 were:

• Efficiency unit -- $399.
• One-bedroom unit -- $494.
• Two-bedroom unit -- $554.
• Three-bedroom unit -- $841.

Affordable Housing Needs

Of Tempe's very low- and low-income renter households, 12,324 are cost burdened, paying more than 30 percent of their gross income for housing expenses, and 6,319 are severely cost burdened, paying more than 50 percent of their income for housing.

Of the city's very low- and low-income owner households, 6,617 are cost burdened, and 2,048 are severely cost burdened.

Homeless Needs

The city must continue to support organizations that address the needs of the homeless by providing services such as emergency shelter, transitional housing, case management, counseling, and job development and training for homeless individuals and families.

Public and Assisted Housing Needs

The Section 8 program will provide rental assistance to 861 very low-income families in Tempe this year.

Barriers to Affordable Housing

Past zoning ordinances made it difficult for Tempe to fulfill its commitment to providing quality affordable housing. Land values, which are an important component of the overall cost of a housing project, are relatively high in Tempe and continue to move upward, pricing out development of single-family dwellings.

Promoting owner-occupied housing is a long-standing goal in Tempe. To promote owner- occupied housing, Tempe has modified its zoning ordinance by establishing zoning categories that encourage higher density. Three new residential zoning districts were established. One permits eight units per acre, another six units per acre. The third is innovative, with the number of units determined by the approved plan. Builders are given the flexibility to create new forms of development. By allowing greater densities, without usual lot size and other restrictions, the innovative zone can be used to lower the cost of single-family homes.

Although there is no guarantee that the units built in the new zoning districts will actually be occupied by the people who own them, at least they will be designed as single-family housing.

Fair Housing

Tempe currently has a Fair Housing Officer to oversee and resolve any complaints that the city may receive. An administrative process provides an informal method of conference and conciliation to resolve housing discrimination complaints. The intent is to reach solutions and resolve disagreements as expeditiously and equitably as possible.

Lead-Based Paint

Based upon their age, it is estimated that 23,409 of the housing units in Tempe may contain lead-based paint. Of them, about 57 percent (an estimated 13,270 units) are occupied by lower income families.

Community Development Needs

Non-housing community development needs for the 5-year term of the Consolidated Plan include:

• Public facilities -- Senior centers, youth centers, neighborhood facilities, child- care centers, parks and recreation facilities, health facilities, and parking facilities. Estimated needs for 1995-1999 would cost $8.2 million.
• Infrastructure -- Solid waste disposal facilities and sewer system improvements, flood drain systems, water supply improvements, streets, sidewalks, curbs, and other infrastructure systems. Estimated costs for 1995- 1999 are $7.8 million.
• Public services -- Activities in this category include programs for seniors, youth, and persons with disabilities; job training and employment services; crime awareness; substance abuse; fair housing and landlord-tenant counseling; child care; and health services. For 1995-1999, estimated needs total $4.4 million.
• Accessibility, historic preservation, and general planning -- Modifications to make structures and facilities accessible for persons with disabilities, and CDBG-eligible rehabilitation of qualified historic properties.
• Economic development -- Business retention and expansion, commercial and industrial infrastructure and rehabilitation, and technical assistance to new small businesses. Priority needs for 1995-1996 are estimated to cost $100,000.

HOUSING AND COMMUNITY
DEVELOPMENT STRATEGY

Housing Priorities

The principal housing priority is to foster rehabilitation of the existing housing to make it affordable for very low- and low-income homeowners.

Non-housing Community Development Priorities

Specific priorities included in the 5-year strategic plan include:

• Public facilities -- Completion of the Escalante Community Center and renovation of the Pyle Senior Center.
• Infrastructure improvements -- The Don Carlos/Smith storm drain retention basin and sidewalk improvements in census tract 3193.
• Public services -- Continued funding of priority services recommended by the Tempe Community Council, services for persons with disabilities through the Tempe Center for Rehabilitation, the Tempe Boys and Girls Club and other youth services, and substance abuse programs.
• Accessibility, historic renovation, and planning -- Accessibility improvements for the Escalante Community Center, continued restoration of the Elias Rodriguez house, and priority planning to further municipal redevelopment and job creation.
• Economic development -- For the longer term, consideration of plans for land assembly, for developing a neighborhood revitalization strategy, and for creating and retaining jobs within targeted areas. There are no short-term CDBG-funded economic development projects.

Anti-Poverty Strategy

Tempe's goal is to help low-income residents meet their basic needs, break the poverty cycle, and achieve self-sufficiency. Tempe's basic anti-poverty strategy involves coordinating several organizations that serve the needs of households in poverty. Approaches include:

• Basic needs -- Continue to support the Tempe Community Action Agency, which for 28 years has served as the community "safety net" for residents struggling to meet their basic needs.
• Housing needs -- Expand access to affordable and safe housing through Section 8 rental assistance, transitional housing, and rehabilitation of existing housing.
• Employment needs -- Provide job training through the Job Training and Partnership Act program.
• Health needs -- Continue care provided by the Maricopa County Health Department, immunization clinics, the Escalante Clinic, the Eldercare Coalition, and Arizona State University's Schools of Nursing, Public Affairs, and Social Work.
• Education needs -- Expand Arizona State University programs to improve functional literacy for self-sufficiency.

Housing and Community Development Resources

The resources to carry out the 5-year plan include the $1,994,000 in CDBG funds to be received this year. Through the Maricopa County HOME Consortium, Tempe is to receive $664,718 in housing funds for activities not described in this CDBG Consolidated Plan.

It is anticipated that similar levels of HUD support for community development and housing activities will be available to Tempe during the remaining 4 years of the strategic plan.

The city also plans to utilize assistance from Federal, State, and a variety of other sources. This includes $4.5 million in Section 8 rental assistance to aid 861 low-income families and $50,000 in Project Intervention funds from the State of Arizona.

Coordination of the Strategic Plan

Tempe will operate these programs with its existing staff and organizational structure. Programs and plans will be developed by the Director of the Community Development Department and presented to the mayor and city council for review and authorization.

Tempe's Redevelopment Division will administer the CDBG and HOME programs. The city of Tempe and the Tempe Community Council will monitor activities of social service providers who are subrecipients of CDBG funding. An attempt will be made to coordinate with Maricopa County, State agencies, and social service providers on homeless issues.

ONE-YEAR ACTION PLAN

Description of Key Projects

For the program year 1995-1996, Tempe plans to use its CDBG funds for 17 activities to address specific housing, community development, and human services needs.

The sole CDBG allocation for housing is $867,750 for the rehabilitation or replacement of 50 to 67 substandard scattered-site, single-family housing units for low- to moderate- income households. (Other housing activities are funded through the Maricopa County HOME Consortium, separate from the City of Tempe's CDBG Action Plan.)

For community development, the allocations are:

• $500,000 to acquire land for construction of the Don Carlos/Smith storm drain retention basin.
• $50,000 to install a built-up roof and six 5-ton air conditioning units and to modify the electrical system at the Tempe Boys and Girls Club.

For public and human services, $369,838 is budgeted for 14 activities. Examples include:

• $65,000 to the Tempe Community Action Agency for its homeless prevention and intervention and home-delivered meals programs.
• $37,500 to four non-profit organizations for case management and other services for the homeless.
• $63,400 to four agencies providing case management, counseling, and other services to low-income persons with special needs, including alcohol abuse treatment.
• $25,000 to the Tempe Community Council for Cities in Schools (CIS) projects at four pilot schools. CIS is designed to provide human services to prevent school dropouts.
• $11,200 to the Tempe Center for Habilitation, to purchase two special "Sara" lifts used to transfer persons with disabilities into and out of bed.

Locations

Housing rehabilitation will be carried out throughout the city of Tempe, at locations based upon the need for repairs and the income eligibility of homeowners. Other activities will serve the low-income population citywide or at selected locations in low-income neighborhoods.

Housing Goals

Housing activities included in this year's Action Plan are expected to result in 67 rehabilitated housing units. It is projected that other planned activities will benefit 413 households or 7,691 persons (including 1,875 youth).

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 is a map, sectioned by neighborhood, which depicts points of interest, low-moderate income areas, unemployment levels, 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).

Dave Fackler
Deputy Community Development Director
Phone: 602-350-8587.