Denver, the capital of Colorado, is just east of the Rocky Mountains and major national forests and recreational areas. The city is at the center of a growing metropolitan area.

Action Plan

Denver's 1995 Consolidated Plan identifies housing and community development needs and includes a number of strategies intended to address those needs. The city will receive more than $19 million in funding from four Federal programs: $12.7 million in Community Development Block Grant (CDBG) funds, $3.2 million in HOME Investment Partnership Program (HOME) funds, $452,000 in Emergency Shelter Grant (ESG) funds, and $1.5 million in Housing Opportunities for Persons With AIDS (HOPWA) funds. The city will also have access to $2.1 million in CDBG program income.

Approximately 40 percent of these funds will be directed toward housing programs, 25 percent toward economic development, 17 percent toward neighborhood facilities and improvements, and nearly 5 percent toward planning and social services. Ten percent of the income will be used for administration.

Citizen Participation

The Consolidated Plan Advisory Committee coordinated government and citizen involvement in the development of the plan. Representatives from other program advisory committees were brought together to advise the city. Representatives from the general public as well as the private and nonprofit sectors were also included in the planning process.

Two public hearings were held in November 1994 to solicit comments from service providers. The advisory committee also sponsored two additional public meetings. The first meeting was designed to receive comments from the general public about community needs, while the second was held to receive input on a draft version of the Consolidated Plan. Nearly 200 people attended these hearings.

Denver's Community Development Agency (CDA) publicized the hearings in major newspapers, ethnic newspapers, and some neighborhood newspapers. A summary of the draft plan appeared in the Rocky Mountain News. Copies of the draft plan were also distributed to individuals who participated in the meetings.

In 1990 Denver's population was 467,610, a 5 percent decrease from 1980. The Denver Regional Council of Governments estimated that Denver's population increased by 3.3 percent between 1990 and 1994, rising to 483,241. The population of the metropolitan area is 2,021,407. Average household size declined during the 1980s, falling to 2.17 persons per household in 1990.

Whites constitute 61 percent of the Denver population and reside primarily in the central and southeastern quadrants of the city. Hispanic residents account for 23 percent and live in the western and north-central sections of the city. African Americans constitute 12 percent and reside in the northeastern section of the city. Asian Americans and Pacific Islanders constitute only 2 percent but are the fastest growing racial and/or ethnic group in Denver. Native Americans, including Eskimos and Aleutians, and other groups account for 1 percent of the population.

Married couples make up 38 percent of Denver households, while female-headed households constitute 12 percent. Children below age 6 account for 9 percent of the population, and persons age 65 and over make up 14 percent. Almost 80 percent of city residents age 25 or older have graduated from high school.

In 1990 Denver's median family income (MFI) was $32,038. If this figure is adjusted for inflation, the city's MFI decreased by 1.2 percent during the 1980s. Despite a population decrease in 1990, the number of people on Social Security increased by 3.5 percent, rising to 51,189, while the number of persons on public assistance increased by 2.8 percent, rising to 16,074.

White and Asian-American households had higher MFIs than other racial and/or ethnic groups. The breakdown of the 1990 MFI by racial and/or ethnic group was:

• White households -- $33,731.
• Asian-American households -- $31,104.
• Native-American households -- $22,5966.
• African-American households -- $19,469.
• Hispanic households -- $19,268.

The number of Denver residents living below the poverty level increased by 19 percent, rising to 78,515 in 1990. Almost 17 percent of the city's population lived in poverty. The poverty rate was higher for children -- 27 percent. Furthermore, minorities had higher poverty rates than whites. Census data showed that 9 percent of whites, 23 percent of African Americans, 37 percent of Native Americans, 25 percent of Asian Americans, and 31 percent of Hispanics lived below the poverty level.

In 1994 Denver's unemployment rate averaged 5.4 percent, falling from 6.8 percent in 1990.

Conditions

Denver had 239,636 housing units in 1990. Of these, 210,952 (88 percent) were occupied, with 43 percent being owner occupied and 45 percent being renter occupied. In neighborhoods with poverty rates greater than 25 percent, more than half of all housing units were rentals.

The median age of the city's housing stock is 41 years. Much of the housing stock was built around 1954. Approximately 31 percent of all units were built before 1939. Most of those structures are located in lower income neighborhoods. About 8 percent of Denver's housing is substandard. The city estimates that 9,400 renter-occupied and 6,500 owner-occupied units need rehabilitation. Of these, 1,100 units are considered to be beyond rehabilitation.

A decline in the city's economy during the 1980s affected the housing stock. Many housing units were foreclosed and subsequently boarded up. Other owners failed to maintain their homes because they could not, or would not, pay for necessary repairs and maintenance. In both cases, the failures led to blight. The problem was further exacerbated by local lenders who were unwilling to make loans for real estate improvements. During this time many middle-income families left the city for the suburbs.

Market Conditions

Denver's housing stock is characterized by low-rise, low-density structures. Almost 60 percent of the housing stock is single family, and 70 percent have four units or less.

In 1990 the median monthly mortgage cost for homeowners was $749, versus $630 (adjusted for inflation) in 1980, reflecting a 16 percent increase. In 1990 the median monthly rent was $386, a 4 percent drop from the 1980 rent (adjusted for inflation).

Since 1990 housing sales prices and construction costs have increased. Since 1990 housing prices have increased by 22 percent, and during the past 2 years, construction costs have increased by 30 percent. Since 1991 rental prices have risen by 10 percent, while in the last quarter of 1994, the vacancy rate for rental units was 3.8 percent.

Affordable Housing Needs

Decent apartments are available for households earning more than 50 percent of MFI. These households can afford to pay $400 to $580 per month for rent and utilities. However, 34,709 renters who earn less than 50 percent of MFI are likely to have housing affordability problems and could benefit from rental assistance. A disproportionate number of these households are headed by single parents.

Homeless Needs

Although the exact number of homeless persons living in shelters or on the streets cannot be determined, a 1991 study conducted by the University of Colorado counted 1,985 homeless persons in the Denver metropolitan area. Of this figure, 1,490 were staying in shelters; 280 were living on the streets; and 215 were in other situations, such as staying with a friend or relative. Children composed 19 percent of the homeless population. Further research counted 390 youth who were living on their own and not included in the 1991 report. Of these youth, 125 lived in "crash pads" or apartments in the city's Capitol Hill neighborhood.

A 1992 study prepared by the Colorado Coalition for the Homeless (CCH) counted 477 homeless families sheltered in 29 emergency shelters and/or transitional housing programs. These families included 1,378 members. This study reported that 168 families were turned away from 20 homeless and social service programs on 1 day in 1992. The study did not determine if that count included families who had been turned away from more than one shelter. The CCH study asked why families had left their last home. Reasons given were:

• Domestic Violence -- 30 percent.
• Eviction -- 16 percent.
• Domestic problems -- 9 percent.
• Overcrowding -- 9 percent.
• Inadequate housing -- 5 percent.
• Lost job -- 3 percent.
• Other reasons -- 29 percent.

The number of homeless families and youth is growing. Two categories of homeless persons can be identified -- the chronically homeless and the recently homeless. The homeless often have mental illnesses, substance abuse problems, physical disabilities, or a combination of these problems. They often lack education, job skills training, and/or work experience. In addition to shelter, these individuals may require a variety of supportive services and may never be capable of long-term self-sufficiency.

Denver has 1,021 beds at 18 emergency shelters and homes, and these beds are almost always full. Another 711 units of transitional housing at 18 shelters and homes are available, but these units usually have long waiting lists. More transitional housing is needed in every category, especially residential programs for persons with chronic mental illness and persons with substance addictions.

The city and county of Denver are actively involved in the Metro Denver Homeless Initiative, which is developing a metrowide plan for coordinating services and providing a continuum of care.

Public and Assisted Housing Needs

The Denver Housing Authority (DHA) owns and operates 4,500 public housing units throughout the city and county. These units include 10 family row-type developments, 7 high-rise buildings, and a number of scattered-site housing units. Most DHA units were built between 1940 and 1979. A modernization program is in progress.

Barriers to Affordable Housing

The city has reviewed its regulatory policies and the municipal codes governing property tax structures, land use controls, zoning, building codes, and the fees or policies affecting the return on residential investment. Although none of these policies and codes negatively affect the cost of housing, the city will continue to review its policies and practices to avoid potential barriers.

Because group homes in Denver are subject to the local zoning ordinances, additional group homes can rarely be placed in neighborhoods where they have been previously located or where the housing stock can accommodate them.

Because of U.S. Department of Housing and Urban Development (HUD) rehabilitation requirements, DHA cannot pursue demolition and new construction, which would greatly enhance DHA's capabilities to develop affordable housing. Also, Federal regulations and guidelines inhibit the renovation and revitalization of neighborhoods that have been targeted.

Lead-Based Paint

An estimated 69 percent of occupied housing units in Denver contain lead-based paint. Of these, 73 percent are occupied by low-income households. The city has identified at-risk neighborhoods, which have the largest percentages of pre-1940 housing, children under age 6, and low- and middle-income families. These neighborhoods lie primarily north and west of the central business district. The houses are generally single-family or low-rise, multifamily units.

In 1994, 4,713 children were tested for elevated blood-lead levels. The tests found that 102 children (2.2 percent) had lead poisoning. Another 1 percent had even higher blood-lead levels.

Through the Community Development Agency, the city and county of Denver provide nonprofit and for-profit developers with funds to rehabilitate low-income rental housing. The developer is required to test for lead-based paint and remove any lead hazards. The city provides developers and lower income owners with funds for acquisition and rehabilitation programs.

Other Issues

The number of frail elderly needing supportive housing and/or services is expected to increase. Community Housing Services, Inc., a nonprofit housing provider, has reported a tremendous demand for assisted living for frail elderly persons, over half of whom earn less than $10,000 annually. Another 12,823 persons age 65 or older have mobility or self-care problems.

An estimated 30,000 non-institutionalized persons with physical disabilities live in Denver. The majority of non-elderly persons with physical disabilities earn less than $10,000 annually and spend between 30 percent and 40 percent of their income on housing. Many report problems related to accessibility.

Denver Health and Hospitals estimates that 500 persons with chronic mental illness are not having their housing needs met. Nearly 100 would best be served by an independent living service that offers supportive mental health services. The remaining 400 need more controlled living situations. Annually, 95 persons who return to the community after long- term stays at mental institutions require housing assistance. About 800 of the 1,000 persons who are discharged annually after short-term stays require some sort of housing assistance.

As of December 31, 1994, 3,745 cases of HIV/AIDS had been reported to the Colorado Department of Health. Of this number, 1,482 individuals are currently living with HIV/AIDS. Numerous needs assessments indicate that adequate housing for persons with HIV/AIDS is a serious problem that requires the coordination of housing resources as well as improved and expanded services.

Adults with developmental disabilities also need supportive housing. The Colorado Department of Institutions reports that an estimated 3,198 people with developmental disabilities need supportive housing.

Community Development Needs

Citizens and experts identified the following community development needs, which are necessary to make Denver's living environment healthy and productive:

• Neighborhoods. Between 1979 and 1989, poverty increased in 60 of the city's 78 neighborhoods, with the segregation between high- and low-income persons increasing. Neighborhood-based services are considered a key to revitalizing neighborhoods. These services can be complemented by existing neighborhood institutions, such as churches, schools, and community centers.
• Human service delivery systems. With increasing numbers of persons living in poverty, particularly minorities, long-term funding for program development is needed. Greater awareness of existing services, better coordination among providers, and more continuity of services for youth are needed.
• Education. Residents indicated that the schools should provide more training to help youth inside and outside the classroom. Topics for training should include parenting skills, conflict resolution exercises, and programs to enhance self-esteem, especially in junior high school. Schools also need to be connected to the community and responsive to its diverse cultures. Schools should function as community resource centers, acting as a hub for adult education, recreation, local cultural events, and life-long learning. The concept of year-round schools should be explored.
• Arts and culture. There must be better coordination, communication, and promotion of the arts.
• Historic preservation. The city has a historic preservation specialist in its Planning and Community Development Office. Community development programs should focus on historic districts to encourage protection, rehabilitation, reuse of structures, and reinvestment in the community.
• Planning. City, neighborhood, environmental, and housing planning must be a part of the city's community development and neighborhood revitalization programs.
• Infrastructure. Residents have expressed support for neighborhood gardens, open spaces and playgrounds, landscaping and tree removal, better lighting, sidewalk replacement, street and alley paving, and block beautification.
• Economic development. On-the-job training that pays more than minimum wage and offers benefit packages is not readily available, inhibiting individuals from securing long-term employment. Supportive services -- such as day care, transportation, and health care -- are needed.

Vision for Change

Denver's overall goal is to strengthen partnerships by using collaborative processes, good communication tools, and a holistic approach that integrates individual, family, and neighborhood needs. Physical, social, economical, environmental, educational, and human development aspects are to be included.

Housing and Community Development Objectives and Priorities

The city's plan for meeting its housing and community development goals has three components: neighborhood focus area strategies, special needs population strategies, and special opportunity strategies.

Housing Priorities

The city has identified nine policies that will guide its housing strategy:

• Assisting households that have the greatest needs for housing assistance and neighborhood revitalization.
• Encouraging the State and municipalities in the Denver metropolitan area to meet the housing needs of low-income households and the homeless.
• Considering existing patterns of residential segregation and racial balance when determining housing assistance.
• Encouraging the private sector to work with the public sector when addressing housing issues.
• Giving priority housing assistance to families that strive to be self-sufficient, while recognizing that some families will be unable to become self-sufficient because of physical disabilities.
• Coordinating all aspects of housing to ensure maximum benefit from limited funds.
• Continuing to review potential barriers to affordable housing.
• Requiring that all cost-effective measures are implemented to increase energy efficiency in city-sponsored housing efforts.
• Increasing the supply of affordable housing in downtown Denver.

Non-housing Community Development Priorities

Denver's non-housing goals are consistent with the city's Comprehensive Plan, neighborhood plans, housing and economic development goals, and other human and community development efforts. These goals include:

• Supporting efforts that promote self-sufficiency.
• Strengthening and supporting family units, regardless of their arrangement.
• Helping infants, children, and youth to learn and succeed.
• Ensuring that neighborhoods are kept free from violence.
• Promoting community partnerships and collaboration.
• Promoting diversity and providing equal opportunity and access to services.
• Nurturing neighborhood institutions and organizations.
• Providing support for the elderly and persons with disabilities.
• Ensuring that citizens are well nourished and have access to affordable health care.

Anti-poverty Strategy

Poverty in Denver has increased and spread to a wider area of the city. Median household income declined during the 1980s, when the city lost many low-skill jobs that offered the potential for advancement. At the same time the context of government anti-poverty programs was changing.

Denver has identified the following basic principles to guide it in setting goals and priorities:

• Poverty is complex and must be addressed in a multifaceted way.
• Self-sufficiency is a process, not a static condition.
• The most effective programs allow people to stay in their neighborhoods.
• No one solution works for all populations.
• Resources must be targeted, because not everyone will reach self-sufficiency.

First priority will be given to families with children, followed by at-risk youth and individuals not capable of supporting themselves. Denver's approach will include reducing the numbers of new people falling into poverty, creating flexible funding in partnership with the private sector, and developing enforceable policies and resources that encourage cooperation between neighborhoods and providers. Strategies have been developed to prevent and remediate poverty, increase effective income, create better paying jobs, and improve delivery of services.

Housing and Community Development Resources

Community development and housing programs are expected to leverage more than $1 million in private support as part of match requirements. About $12 million from participating lending institutions is expected for economic development match requirements. Multiple participants from the nonprofit sector will provide a range of housing, economic, and human service needs. Private sector contributions come from lenders, developers, contractors, business persons, foundations, and individuals.

Coordination of the Strategic Plan

The Community Development Agency, a division of the Planning and Community Development Office, administers the HOME and HOPWA programs, as well as most of the CDBG programs. The Mayor's Office of Economic Development manages the economic development component of the CDBG program, while the Department of Social Services directs the ESG program. DHA oversees public housing. In implementing these plans, the city works closely with State agencies and nonprofit organizations. With regard to housing issues, the city coordinates with the Colorado Department of Local Affairs and the Colorado Housing and Finance Authority.

Description of Key Projects

For the first year of the Consolidated Plan, Denver expects to receive $19.7 million in CDBG, HOME, ESG, and HOPWA funds, in addition to $2.1 million in program income. Allocations are:

• Housing -- $8 million.
• Economic development -- $5 million.
• Neighborhood facilities and improvements -- $3.7 million.
• Administration -- $2 million.
• Planning -- $500,000.
• Social services -- $452,000.

Examples of planned projects include:

• For 90 housing units, a single-family housing rehabilitation revolving loan program ($1.18 million in CDBG funds).
• For about 50 households, rental assistance payments for lower income persons with HIV/AIDS ($350,000 in HOPWA funds).
• For 200 housing units, an emergency home repair program providing a maximum of $2,000 to very low-income households ($300,000 in CDBG funds).
• For 875 housing units, assistance for rehabilitation or acquisition of multi-unit housing. Emphasis is placed on special needs and low-income households ($1.4 million in CDBG funds, $1.3 million in HOME funds, and $798,000 in HOPWA funds).
• For 10 organizations, grant funds for nonprofit organizations to provide direct services to low- and moderate-income households ($1.2 million in CDBG funds).
• For 45 public facilities, public right-of-way paving, sidewalk replacement, curb cuts, access ramps, tree and sod planting, and playground equipment at schools ($650,000 in CDBG funds).
• For five public facilities, funds for the design and construction of right-of-way improvements on commercial blocks in low-income neighborhoods ($600,000 in CDBG funds).
• For about 15,000 people, small business loans for new and expanding businesses in low- and moderate-income neighborhoods ($2.1 million in CDBG funds).
• For about 10,000 people, small business loans for new and expanding businesses in a special impact area ($1.1 million in CDBG funds).
• For about 52 households, rental payment assistance for households in the Denver Family Opportunity Program ($475,000 in HOME funds).
• For 100 housing units, deferred payment and low-interest loans for developers to rehabilitate rental units that will be made available to low- income units ($1.5 million in HOME funds).

Maps

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 proposed project(s).