The City of Montebello is located nine miles east of the Los Angeles Civic Center. It is surrounded by Monterey Park and Rosemead to the North; City of Commerce to the south; Los Angeles to the West; and Pico Rivera to the east.
During the preparation of its first Action Plan under the Consolidated Plan requirements, the City of Montebello approached the preparation of the document as an opportunity to re- evaluate its collective housing and community needs and to re-assess the particular priorities, programs, resources, and organizational structure that would best meet the housing and community development challenges ahead. The Action Plan includes activities that address identified community needs and which are funded with Fiscal Year 1995-1996 federal program funds as follows:
| Source of Funds | Dollar Amount |
|---|---|
| CDBG | $ 1,439,531 |
| HOME (Federal) | $ 395,000 |
| Program Income (Est.) | $ 60,000 |
| Total | $ 1,867,531 |
The following five steps were taken by the City of Montebello to encourage citizen participation:
Publication of five Public Notices in local newspapers, distribution of flyers, notification by the City of community meetings and public hearings;
Letters were sent to social service groups, community development based organizations, and public service providers, inviting them to attend the community meetings;
Request for proposals for eligible activities were mailed to community based organizations inviting to apply for funds to support eligible projects;
A survey was distributed to the community to receive input as to what types of new programs the City should implement or continue to administer; and
A Summary of the Consolidated Plan was published on March 23 and 30, 1995 and made available to residents and the community in general.
Comment periods were honored and copies of the Consolidated Plan were made
available to the community, public libraries, senior citizens center, city
departments and mailed to surrounding jurisdictions.
Present and Projected Population: The 1990 Census revealed a population of 59,564 for Montebello, a 13% increase from 1980. The General Plan projects an ultimate population for Montebello of 70,000 residents. This projection is based upon development of the Montebello Hills in densities consistent with the General Plan's population density guidelines (e.g., Montebello Hills consist of 450 acres that are currently being discussed for housing development). The population projections reflect the limitations on the infrastructure necessary to support increased population densities.
Household Size: The average household size in Montebello increased from the 2.92 persons in 1980 to 3.21 persons in 1990. This 10% increase in the number of persons per unit over the past decade is largely attributable to the increase in the size of renter occupied households. The increase in household average underscores the reality that a significant number of extremely low and low-income families in Montebello are having to double up in units meant for one household.
Race/Ethnicity of Population: While the City's total population increased by 13% between 1980 and 1990, certain segments of the population decreased during this decade. Montebello's White population decreased from 13,269 in 1980 to 10,352 in 1990. Meanwhile, the Hispanic population continued to grow as it increased by 27% from 31,387 in 1980 to 39,910 in 1990. Furthermore, during the past decade, both the Asian and Black populations experienced slight increases. Between 1980 and 1990, the Asian population increased by 21% from 7,195 in 1980 to 8,707 in 1990. Similarly, the Black population increased by 51% from 264 in 1980 to 398 in 1990. Interestingly enough, the "Other" race category reveals a dramatic decrease of 73% from 554 in 1980 to 152 in 1990.
Form of Residency: Montebello's owner occupied to renter occupied ratios which once favored owners have gradually shifted towards renters. For example, in 1980 of the City's 17,905 occupied housing units, 51% were owner occupied while 49% were renter occupied. However, by 1990 of the City's 18,618 occupied units, 48% were owner occupied while 52% were renter occupied. Hence, in the past decade the number of renter occupied units surpassed the number of owner occupied units in the City.
Household Occupancy by Race: In 1990 of the City's 9,002 owner occupied housing units, approximately 50% were owned by Hispanics, 28% by Whites, and 22% by Asians. Similarly, of the City's renter occupied units, 70% were occupied by Hispanics, 20% by Whites, 8% by Asians, and 1% by Blacks. Thus, while Non-Hispanics were home owners in proportion to their population, Hispanics were more likely to be renters rather than home owners.
Incidence of Overcrowding: Given the previously mentioned housing conditions, it is not surprising to find that overcrowded living conditions amongst renters is a serious problem in Montebello. The cumulative effect of the increase in both population and household size when coupled with the high demand and limited availability of large rental units (e.g., 3+ bedrooms) has created a severe overcrowding problem. Overall, 31% of all renters and 12% of all home owners live in conditions that are defined as being overcrowded.
Low and Extremely Low Income Households with Cost Burden: Cost burden refers to households that are required to pay more than 30% of their gross monthly income for housing related expenses (e.g., rent and utilities). These families and individuals are considered to be households suffering from a gap in affordability (a gap between income and housing costs). The affordability gap exists despite the fact that there is a large stock of modest, market rate rental units in Montebello that are reasonably priced. As previously mentioned, the 1990 median rent in Montebello was $623 per month.
Households with Housing Problems: An overwhelming majority of extremely low, low and moderate-income large renter households experience some type of housing problem. Similarly, the extremely low, low, and moderate-income elderly and small family renter households also experience some type of housing problem. Of particular significance is the fact that of the extremely low and low-income categories, nearly 100% of the large renter family households experience some type of housing problem (e.g., affordability gap, overcrowding or, substandard unit).
Racial/Ethnic Disproportionate Needs: In Montebello the Native
American population comprised 62% of the extremely low and low-income categories
which is 30% higher than the 32% of all households in these categories. In the
moderate income level category, no ethnic group or race was 10 points higher
than the income group category as a whole. However, the total percentage for
all households in the middle income category, is 9%. The ethnic group with the
greatest need in the middle income category is the Native American with 24%
which is 16 points higher than the 9% total.
The existing development patterns within the City of Montebello, limits the City's ability to increase housing production or to greatly increase land use. Slightly less than half the housing stock within the City is comprised of single-family detached residential homes. The vast majority of these single-family homes are owner occupied and well maintained. The other half of the housing stock are apartments and condominiums. The City's ability to directly support the construction of new housing and to accommodate project impacts is severely limited by infrastructure and operational costs.
The City's 8.2 square miles are divided into 12,602 parcels, of which 77% are designated for single family use. In 1990, the Census revealed 19,193 housing units within the City. According to the 1990 Census, the most prevalent housing type in Montebello is the detached single family home which accounts for 48% of all housing structures. The multi-family structures combined account for 43% of the City's housing structures.
Many of the factors which tend to restrict the housing supply cannot be controlled by local government, especially those that relate to the regional, national, and international economies. Various factors not under the control of local government directly influence the cost, supply and distribution of housing. Such factors include the cost of land, construction, and financing.
Land Costs: The scarcity of land serves only to increase the ultimate cost of the housing unit. The cost of land ranges between 16% and 40% of the price of a new home; with most projects having total costs in the 23% to 35% range. Part of the increase in land prices can be attributed to the general inflation rates over the past 40 years and the increase of price appreciation as the demand for housing has continuously expanded because of population growth and Montebello's central location within the metropolitan area.
Construction Costs: Labor and material add substantially to the cost of housing. Construction costs are about the same in Montebello as in other parts of Southern California, averaging about $58 per square foot for single family residences, and $52 per square foot for multi-family residential construction.
Financing Costs: Financing costs, for the most part, are not subject to local influence. The control of interest rates is determined by national policies and economic conditions. Interest rates greatly influence the housing market for home buyers and indirectly for renters.
Overall, renters as a whole comprise 85% of all extremely low income Montebello households while home owners make up the other 15%. As much as 16% of all Montebello households (a total of 2,930) are classified as being extremely low income. Of the 2,930 households, the household group most affected by extremely low incomes are the elderly which account for 43% of all extremely low income households. There are 1,261 elderly households that are categorized as being of extremely low income of which 793 are renters and 468 are home owners. The second household group most affected by extremely low incomes are small families which account for 940 households - all of which are renters. The third household group most affected by extremely low incomes are large family households which account for 439 - all of which are renters. Finally, the fourth household group most affected by extremely low incomes are the "other" households which account for 390 households of which 331 are renters and 59 are home owners.
Nature and Extent of Homelessness: Even though a point in time homeless survey conducted on January 27, 1995 in Montebello revealed that there were 13 homeless people within the City limits, the City nevertheless believes that this is an important social issue that needs to be addressed. Therefore, the City contracts with Rio Hondo Temporary Home to provide shelter and job training to homeless families. In addition, in meeting with staff from three shelter providers, it was brought to the City's attention that on occasion these agencies are sometimes forced to turn away homeless people due to insufficient space and/or resources. Representatives from all three agencies also pointed out that additional shelters are necessary to effectively address the region's homeless populations.
Determined Homeless Needs
At-Risk Assistance provision of supportive housing needs for "at risk populations"; and Temporary Shelters, Transitional Housing and Counseling Needs.
The City of Montebello does not have any public housing units within its city limits. However, the City does have three government subsidized apartment complexes that are specifically for the elderly and large low-income families. According to the Los Angeles County Housing Authority, the City of Montebello as of September 1994 had a total of 455 households (excluding the above Assisted Housing Stock) receiving Section 8 assistance. Collectively on a yearly basis, Section 8 tenants in Montebello receive approximately $2.9 million in rental assistance.
Elderly: The result of the 1990 Census reflects an increase within the City's elderly population from nearly 11% of the population in 1980 to over 16% by 1990. As of 1990, the total elderly population in Montebello was 9,803.
Handicapped: According to the 1990 Census, there were 2,483 disabled and handicapped persons over the age of 16 residing in Montebello. The total number of disabled and handicapped persons constitute approximately 4% of Montebello's total population.
Large Families/Single Parents: There are a limited supply of rental units with three or more bedrooms in the City and throughout the county. Secondly, large families (i.e., 5+ persons) generally tend to be lower income households rather than moderate or above-income households. Hence, large families find it increasingly difficult to locate affordable housing that accommodates their housing needs.
Housing Costs: A fundamental barrier to the supply of new housing is profitability. Trends in the price of housing over a period of time can either expand or contract the number and proportion of families that can afford home ownership. When the price of new housing continuously increases at a rate greater than income gains, more and more households are priced out of the home ownership market. The impact of price escalation is most severe on first-time home buyers.
Rental Costs: Over the past 20 years, rental rates have also increased significantly in Montebello, although not nearly as fast as those of home ownership. In 1970 the median rent was $122 per month however, by 1980 the median rent had increased by 134% to $285 per month. Between 1980 and 1990 the monthly median rent once again rose sharply by 119% to $623.
Rent Affordability: An analysis of the Fair Market Rents (FMR) in Montebello revealed that an affordability gap clearly exists. The shortfall between a unit's FMR and the maximum rent a low income household can pay creates an affordability gap. Therefore, without Section 8 rental assistance many extremely low, low, and moderate-income households are paying a greater percentage of their monthly income for rent, thereby creating a cost burden for these households.
The City of Montebello has a Fair Housing Program designed to limit housing discrimination on the basis of race, color, national origin, handicap, gender, or creed. Given the extensive evidence that economic discrimination exists elsewhere in our society, it is not surprising indeed that there is housing discrimination. Therefore, discrimination must be discouraged through the implementation of programs that educate and develop an awareness that families are denied the right of fair housing. To assist the City in implementing a plan that would have an impact in the elimination of discrimination, the City has entered into an agreement with the Fair Housing Council of San Gabriel Valley. This agency investigates allegations of housing discrimination, educates the public as to their rights under the law, and provides assistance to persons seeking rental housing.
The issue of LBP is of great concern to the City of Montebello because of the threat that lead based paint poses to young children. It is estimated that in Montebello 399 renters and 543 owners currently occupy a unit with a LBP hazard. Therefore, City staff contacted a representative of the Los Angeles County Department of Public Health regarding the number of reported LBP incidents in Montebello. The county provided information which revealed that in 1994 there were a total of 4 reported cases of LBP poisoning in Montebello.
In addition to the housing and homeless needs, the City of Montebello has identified the following community development needs: infrastructure, public facilities, and economic development.
Coordination with Social Service Agencies: The City coordinates the
operation of housing programs with county and local social service agencies,
including the Los Angeles County Department of Public Social Services, the
United Way of Los Angeles, El Centro Human Services, the Fair Housing Council of
San Gabriel Valley, Maravilla Foundation, Rio Hondo Temporary Home, the Women
and Children's Crisis Shelter, Las Madrinas de Montebello, De Paul Drug
Addiction Placement Center, and/or other non-profit and public agencies.
The City of Montebello seeks to enhance the quality of life for all its residents by maximizing the use of available resources in order to assure the availability of safe, decent and affordable housing, creating a suitable living environment, and expanding economic opportunities for the community.
The subsequent priorities, programs, and specific objectives discussed herein reflect upon the City's goals and objectives.
The City of Montebello housing and community development objectives are to meet the needs of renters as the highest need group than home owners in both absolute numbers and as a percentage of households experiencing housing problems. The high proportion of extremely low, low, and moderate-income Montebello renters are confronted with a variety of housing problems -- affordability gap, cost burden, overcrowding and/or substandard living conditions.
The City believes that through the preservation of affordable rental units, the housing problems typically encountered by lower income renters can be alleviated. Hence, consistent with this belief, the housing priorities listed below will be addressed and programs implemented.
Based on the consultation with residents, community leaders, and agencies the City of Montebello arrived at the following priorities:
The City of Montebello's non-housing community development goals are long term in nature but will be met gradually as available financial resources allow. The non-housing community development priorities include: street resurfacing and sidewalk improvements; handicap accessibility to public facilities and public walkways; public services to benefit low-income youth; public facilities; historic preservation, and economic development.
The City of Montebello's anti-poverty strategy requires taking into account factors affecting poverty that are within the City's control. Therefore the anti-poverty strategy includes:
Goals, Programs and Policies for Reducing the Number of Households with Incomes Below the Poverty Line: In 1990, the City of Montebello had 6,638 family households living below the poverty line or 36% of all households in the City. The City will continue to consult and participate in existing structured programs administered by the county specifically targeting households in poverty and assisting these households in improving their long-term financial and social positions, eventually bringing them out of poverty.
Assisting Impoverished Households to Achieve Economic Independence: Economic independence for targeted needs groups is accomplished through Job Training Partnership Act (JTPA), Federal funds provide for job training of high-risk youth, unemployed adults and other economically disadvantaged individuals.
Family Self-Sufficiency Program (FSS): Currently, the City has not signed contracts to assist Montebello households under the FSS program. However, appropriate social service providers and educational institutions have been contacted regarding the feasibility of their providing services to FSS program participants.
Program resources available to the City of Montebello are: the HOME Program; Community Development Block Grant (CDBG) Program; Section 8 Rental Certificates and Vouchers Program; Mortgage Credit Certificates (MCC); and Redevelopment Set-Aside Funds.
Leveraging Plan: The table below demonstrates how the City will distribute Federal, local, and private funds for each priority.
| Priority | Program Funds |
Local Program |
Federal ($) | 20% Set-aside | Private ($) | General Fund | Ratio |
|---|---|---|---|---|---|---|---|
| 1 | CDBG | RRP | 220,000 | 0 | 110,000 | 0 | 1:0.5 |
| 1 | CDBG | FHS | 15,500 | 0 | 0 | 0 | 0 |
| 1 | GEN | HMB | 0 | 0 | 0 | 10,000 | 0 |
| 2 | *HOME | HIPP | 760,750 | (FHBP) | 0 | 0 | 0 |
| 2 | CDBG | " | 175,474 | 0 | 0 | 0 | 0 |
| 2 | CDBG | CEP | 220,000 | 80,000 | 0 | 0 | 1:0.35 |
| 2 | CRA | EFP | 0 | 125,000 | 0 | 0 | 0 |
| 2 | *HOME | CHDO | 134,250 | (FHBP) | |||
| 3 | CRA | FHBP | 0 | 1,050,000 | 3,510,000 | 0 | 0 |
| TOTALS | 1,391,724 | 1,255,000 | 3,620,000 | 10,000 | 1:3.5 | ||
*25% HOME match requirement to be met with Redevelopment Agency set-aside funds from FHBP loan funds.
Overall, the City will leverage an approximate total of $4,885,000 in non-Federal funds with $1,391,724 in Federal funds for a three and a half to one ratio.
The City of Montebello will continue to meet when possible with private and
governmental health, mental health, and service agencies to use and be informed
of all available resources to this community to the maximum level of
effectiveness to benefit the City's residents. The City of Montebello will be
represented at informational meetings sponsored by these agencies to carry out
affordable and supportive housing programs and when possible will continue to
assist non-profit organizations provide public services to the community. The
City also visits subrecipient agencies receiving CDBG funding to monitor and
review their progress.
1. HOME IMPROVEMENT & PRESERVATION PROGRAM (HIPP): The HIPP provides 25 low and moderate-income home owners with deferred loans, subsidized loans, or grants to comprehensively repair or upgrade substandard conditions in their homes. All loans and grants are available to qualified applicants on a first come first served basis. During FY 95/96, this activity will augment the City's HOME funded Home Improvement and Preservation Program. Program costs also consist of related operating and administrative expenses. The program will be administered by the City of Montebello.
| Location: | City-wide | $936,224* |
|---|
*Funding amount includes $105,474 of prior year CDBG carryover, $60,000 in CDBG program income, $10,000 in FY 95/96 CDBG funds, and $760,750 of FY 94/95 and FY 95/96 HOME funds.
2. RENTAL REHABILITATION PROGRAM (RRP): The RRP provides funding to rental property owners for the rehabilitation of 20 multi-family units . Rental property owners are provided with deferred loans to comprehensively repair or upgrade substandard conditions in their apartment units. Program costs include loans, as well as related operating and administrative expenses. The program will be administered by the City of Montebello.
| Location: | City-wide | $220,150* |
|---|
*Funding amount includes $190,000 of prior year CDBG carryover funds.
3. CODE ENFORCEMENT PROGRAM (CEP): The CEP through the enforcement of the City's Property Maintenance Ordinance and Municipal Code arrests the decline of deteriorating residential and commercial CDBG eligible areas. The goal is to initiate 1,300 corrective actions.
| Location: | Census Tracts: 5320, BG All; 5321, BG 1,2,4,5; 5322, BG 1,4; 5301.01, BG 1,2; 5301.02, BG 2,3; 5302.01, All; 5302.02, BG 4,7. | $220,000* |
|---|
*Funding amount includes $110,000 of prior year CDBG carryover funds.
4. SENIOR CITIZENS CENTER MODIFICATIONS: This activity provides funding to expand the senior citizen center and development of a gymnasium. This activity will encompass the development, design, specifications, contract administration, demolition, and construction work.
| Location: | 115 S. Taylor Avenue | $505,000* |
|---|
*Funding amount includes $95,000 of prior year CDBG reprogrammed funds.
5. STREET RESURFACING PROGRAM 1995/96: This activity provides for the reconstruction of various deteriorated residential streets in CDBG eligible areas. Program costs include design, plans and specifications, street preparation, and resurfacing.
| Location: | City-wide (CDBG eligible residential areas) | $110,545 |
|---|
*Funding amount includes $35,000 of prior year CDBG carryover funds.
6. CONCRETE PROGRAM/ADA IMPROVEMENTS 1995/96: This activity provides for the installation and replacement of deteriorated sidewalks as well as curbs and gutters throughout CDBG eligible residential areas. Program costs include plans and specifications as well as concrete work.
| Location: | (CDBG eligible residential areas) | $120,000 |
|---|
7. WOMAN'S CLUBHOUSE RENOVATION (Historic Preservation): Historic preservation and rehabilitation of Woman's Clubhouse building. Work to include seismic retrofitting, roofing, color coat, painting, and other exterior improvements.
| Location: | 201 S. Park Avenue | $140,000 |
|---|
8. REGGIE RODRIGUEZ PARK COURT LIGHTING : This activity will provide for the purchase and installation of lighting equipment at the basketball court.
| Location: | 200 W. Mines Avenue | $ 35,000 |
|---|
9.EXTENDED DAY CARE - FREMONT ELEMENTARY SCHOOL: Purchase and installation of portable classroom with sinks, necessary plumbing , and construction of a sidewalk to comply with the American with Disabilities Act. The new classroom will be used to provide extended day care services to low and moderate-income households with small children. The City of Montebello administers this program and plans to assist 35 low and moderate income children.
| Location: | 200 W. Madison Avenue | $60,000 |
|---|
10. SUMMER YOUTH EMPLOYMENT PROGRAM (SYEP): Activity provides for the hiring of 50 low and moderate-income community youths to work in various City locations as Clerical Assistants, Aquatic Personnel, and Community Services Aides. SYEP participants will include 20 At-Risk Program youths . The City Administers this program.
| Location: | City-wide | $ 40,000 |
|---|
11. AT-RISK YOUTH PROGRAM SERVICE CENTER/CITY PARK: Activity provides counseling services, learning and recreational opportunities, and constructive alternatives for youths at-risk of becoming involved with or being influenced by gang activity. Program costs include staff salaries and related operating expenses. The goal is to assist 50 youth. The program is administered by the City of Montebello.
| Location: | 1300 West Whittier Boulevard | $ 40,000 |
|---|
12. SUBSIDIZED EXTENDED CHILD CARE SERVICES: Activity provides supplemental funding to approximately 35 low and moderate-income families who cannot afford child care services at Greenwood, Washington, and Fremont Elementary Schools.
| Location: | City-wide | 28,000 |
|---|
13. AFTER SCHOOL RECREATION PROGRAM: Activity provides for a drop in and no charge after school recreation/sports program for latch-key children of all ages at City and Holifield Parks. Program cost include arts/crafts activities, field trips, and staff salaries. The goal is to assist 90 to 100 low and moderate-income children. The program is administered by the City of Montebello.
| Location: | 1300 Whittier Boulevard, 1060 S. Greenwood Avenue | $ 21,000 |
|---|
14. DARE PROGRAM: Activity provides for an officer to present the DARE program concepts to 450 low and moderate-income fourth grade children at: Fremont, Greenwood, Washington, and Wilcox Elementary Schools. Program costs include officer's salary and educational materials.
| Location: | 200 W. Madison Avenue, 900 S. Greenwood
Avenue, 1400 W. Madison Avenue 816 Donna Way | $ 51,500 |
|---|
15.RIO HONDO TEMPORARY HOME: Activity provides for a variety of services and programs designed to assist homeless persons and families. The City will provide transportation for homeless individuals or families to the Rio Hondo Temporary Home as part of this activity. The goal is to assist 35 homeless families.
| Location: | 12300 Fourth Street, Norwalk, CA 90650 | $ 16,000 |
|---|
16. LAS MADRINAS DE MONTEBELLO: This activity provides 32 adolescent mothers and their children with housing. Funds will contribute towards the management of this project which consists of 16 two bedroom housing units. Participants in this program attend schools in the Montebello Unified School District which makes it possible for teen parents to fulfill their educational aspirations.
| Location: | Hensel Garden Apartments, 200 N. Garfield Avenue | $ 8,080 |
|---|
17. DE PAUL DRUG AND ALCOHOL ADDICTION COUNSELING AND PLACEMENT SERVICES: This activity assists 40 low income individuals in locating drug and alcohol affordable treatment programs. This program includes intervention services, relapse prevention counseling and adult/child counseling. The services are provided by the De Paul Placement Center.
| Location: | 1105 Bluff Road | $11,350 |
|---|
18. PLANNING AND ADMINISTRATION: Activity provides for the overall administration of the CDBG program.
| $287,906 |
|---|
| TOTAL CDBG & HOME (FY 94/95 & FY 95/96) PROGRAMS: | $ 2,850,755 |
| HOME FUNDS (Non-Profit 15% Set-Aside Requirement FY 94/95 and FY 95/96) | $ 134,250 |
| TOTAL | $2,985,005 |
|---|
For FY 95/96, 100% of the CDBG program expenditures will benefit low and moderate-income persons. HOME funds will be utilized to encourage development of affordable housing and preservation of the existing housing stock.
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, unemployment levels and proposed HUD funded projects.
TABLE (without associated map) provides information about the project(s).
Dolores Gonzalez-Hayes
Ph: (213) 887-1487
