In 1995, the City of Rapid City submitted a three (3) year Consolidated Plan Submission (CPS) to the Department of Housing & Urban Development (HUD) which identified housing and nonhousing community development needs for the City of Rapid City.
Included in the CPS, the strategic plan identified the City of Rapid City Community Development Block Grant (CDBG) Program as a funding vehicle to provide affordable housing opportunities; to strengthen community infrastructure; to foster Community Development activities; to provide financial assistance to nonprofits for the provision of direct services; and, to provide economic development activities that create job opportunities. Priority housing and homeless objectives are:
The Citizen Participation Process calls for a public meeting in September to identify housing and community development needs within the community. Because participation at public meetings in Rapid City is low historically, invitations were sent to agencies that provide direct services to low income residents, to city departments and neighborhood associations to encourage their participation at the public meeting. There were fifteen (15) persons in attendance at the meeting conducted on Thursday, September 21, 1995. A public notice announcing the meeting was also placed in the Rapid City Journal and Indian Country Today.
Housing needs were again identified as a high priority. The shortage of decent, safe and sanitary housing at affordable prices is an issue not only for low income persons but also for persons with disabilities. Other needs identified include additional ramped intersections in the community and transportation for persons with disabilities including expanded service on weekends, holidays and evenings. Accessibility to public facilities is also a concern. Although the City is making great strides in completing accessibility improvements to city-owned facilities, other governmental or quasi-governmental entities should be more aggressive in making improvements. Additional concerns identified include criminal activity in and around certain areas of the community; graffiti; funding for agencies that provide direct services to low income residents; the ability of nonprofit agencies to access funds for the acquisition of transportation vehicles; access in and around public facilities; and expanding the recreational improvements within the community, especially in areas of concentrations of low income residents.
The Community Development Director contacts other agencies not in attendance at the meeting to receive input. Overwhelmingly, affordable housing remains a significant concern for low income. Once eligible persons receive a public housing unit or a Section 8 certificate or voucher, they are careful to maintain occupancy in that unit because they know how difficult it is to locate rental units in the community.
The priority needs as established in the CPS still remain in effect. The priority need level signifies the relative priority to be given to each category of projects during our three (3) year strategy. HIGH priority means the activities to address the need will be funded during the three (3) year period; MEDIUM priority means the activities to address the need may be funded during the three (3) year period, if funds are available; LOW priority means the activities to address the need will not be funded during the three (3) year period; NO such need means that there is not a need or that the need has already been substantially addressed.
| | Priority Need Level (PNL) | 1-Year | 3-Year |
|---|---|---|---|
| Priority Housing Needs | | | |
| I. Rental Housing New Construction | | | |
| A. ELI Family and Elderly | High | 30 | 80 |
| B. VLI Family and Elderly | High | | 72 |
| C. LI Family and Elderly | Medium | 48 | 96 |
| D. All Other Households | | | |
| II. Low/Moderate Income Homebuyers | High | 20 | 60 |
| III. Homeowner Rehabilitation | | 17 | 48 |
| A. VLI Family and Elderly | High | | |
| B. LI Family and Elderly | Medium | | |
| IV. Increase Numbers of Affordable Housing Units thru Section 8 Certificates and Vouchers. | | | |
| A. ELI Family and Elderly | High | | |
| B. VLI Family and Elderly | High | | |
| C. LI Family and Elderly | High | | |
| D. All Other Households | | | |
| | | | |
| Priority Homeless Needs | | | |
| I. Housing for Homeless Families and Individuals | | 75 | 225 |
| A. Maintain existing shelters and supportive services. | High | | |
| B. New transitional housing. | Medium | | |
| | | | |
| Other Special Needs Populations | | | |
| I. Service enriched housing for persons with disabilities and frail elderly. | Medium | 30 | 100 |
| | | | |
| Non-Housing Community Development Needs | | | |
| A. Public Facilities | High | 6 projects | 10 projects |
| B. Public Services Assistance | High | 10 projects | 30 projects |
| C. Housing | High | 3 projects | 8 projects |
INSERT THE LISTING OF PROPOSED PROJECTS IN THE CPS
GEOGRAPHIC DISTRIBUTION:
The FY96 CDBG Program will be utilized by the City of Rapid City to accomplish public improvements in identified low income areas. The public improvements will be provided in the north Rapid community which has the highest concentrations of minority and low income residents. The Community Development Department completes an eligibility form on each applicant for funding or any city project proposed to ensure that the federal regulations and the eligibility criteria are met. The majority of the organizations receiving block grant funds are located within census tracts that have concentrations of low income and minority residents. Nonprofit organizations that may be located outside of the census tracts with concentrations of low income and minority residents provide services based on income eligible criteria. Annually, the City of Rapid City commits the maximum allowable by regulations for "public service" programs. The maximum allowed is fifteen percent (15%) of the combined figure for program income and the entitlement grant. These programs provide direct services to low income residents with the block grant funds utilized to provide funding for staff positions and supplies necessary for the program. The funds for FY96 will benefit residents in census tracts 102, 103, 104, 105 and 114. During FY96, in excess of seven thousand five hundred (7,500) residents will benefit from the activities funded with block grant proceeds.
Area benefit projects proposed for FY96 include improvements to publicly owned facilities which are neighborhood parks in census tracts 103 and 105. The improvements proposed in these parks will provide for greater use by neighborhood children. During FY96, assistance to Community Development Housing Organizations (CHDO's) or eligible nonprofit recipients for the development of affordable housing is again included as one of the proposed projects. Block grant funds will be used to assist a nonprofit organization in acquiring single family lots on which to construct new homes for low to middle income residents to purchase. The Community Development Corporation (CDC), which was established through a cooperative effort among the banks in the community, will provide zero percent interest (0%) construction loans to the CHDO and the potential buyers will access existing mortgage programs available at local banks. Additionally, this CHDO will be applying for HOME funds which will be used to write-down the costs of the first mortgage so more low income residents have an opportunity for homeownership. Infrastructure extension for the development of forty eight (48) units of elderly affordable housing is an area the City has never participated in previously. This project is located in census tract 114 and will utilize a combination of CDBG, HOME and/or Low Income Housing Tax Credits (LIHTC) to make this project a reality.
PUBLIC HOUSING COMPREHENSIVE GRANT:
The Pennington County Housing & Redevelopment Commission (PCHRC) annually applies for and receives funding through the Comprehensive Grant Program for modernization of public housing units. Annual improvements to public housing units make the dwelling units more efficient and comfortable for the occupants as well as improving the quality of the units. Continued maintenance of the exterior finishes blends the public housing units in with the existing neighborhood structures. For calendar year (CY) 1996, improvements will consist of ADA improvements for elderly high rises; replacement of windows; improvements to existing parking lots serving multifamily and elderly residents; construction of carports at single family units; heating plant replacement and kitchen remodel including new floor coverings. Continued improvements made to public housing units tell the community that pride of ownership by the housing authority is a priority.
The PCHRC is not interested in pursuing a home ownership program utilizing existing public housing units. If they were to sell off their existing inventory, the waiting list for family units would be much greater than it presently is. The PCHRC is receptive to developing a homeownership program for public housing residents utilizing HOME funds, and has that program as one of their priorities for future development. The Commission has just completed the construction of twenty four (24) 2- and 3-bedroom units on a parcel of property owned by the housing authority. This project was completed using a combination of HOME funds, CDBG funds, housing authority equity, and a first mortgage from a local bank. The affordable housing units will provide a choice for low income residents when they are seeking housing.
Additionally, the housing authority administers the Section 8 certificate and voucher program in the Pennington County area and their staff has expressed some concerns regarding future funding for this program. As the city reviews the housing needs in the community, the Section 8 certificate and voucher program has always been one of the most viable programs that the United States government ever instituted. This program truly gives the recipients the choice of where they live. They choose a rental unit on the open market in an area they desire and work with the landlord regarding participation in the certificate and voucher program.
LEAD BASED PAINT HAZARDS
The South Dakota Department of Health has developed a standard approach to assessing risk of lead poison in children. Numerous programs that provide assistance to children require lead screening as part of the program participation requirements. These programs include the Women, Infants and Children (WIC) Program and Medicaid Healthy Kids. Through a standard questionnaire, physicians identify those at risk and then complete the required testing to identify if the child has high levels of lead in their system. Testing for lead is accomplished by the South Dakota Health Department lab. If lead poisoning is identified, follow-up is required to identify the location of the lead and ensure that proper medication is taken to eliminate the lead from the child's system.
The Uniform Building Code as adopted by the City of Rapid City does not require identification or abatement of lead-based paint in units under renovation. Agencies utilizing federal resources to complete housing activities are complying with the interim guidelines on abatement of lead-based paint as issued by the Department of Housing & Urban Development. The City of Rapid City Community Development Department provides brochures on the hazards of lead-based paint to the Building Inspection Division so this information can be distributed to contractors completing extensive renovation in dwelling units and commercial buildings. This should increase the awareness of the hazards of lead-based paint and how to eliminate them.
OBSTACLES TO MEETING UNDERSERVED NEEDS:
One of the main obstacles in meeting the underserved needs is the ability to access financial resources which allow for the construction, renovation or acquisition of dwelling units at an affordable rent. One of the underserved needs in our community identified was cost burdens to persons already residing in dwelling units. Cost burdens can be difficult to overcome when there is a shortage of existing dwelling units in the community. The Rapid City community has been experiencing a shortage of available rental units and existing single family homes for sale for the past several years, but during the past six (6) months has seen a number of multifamily units building permitted that should come into the inventory over the next eight to twelve (8-12) months. Unfortunately, the open market units that will come into the inventory are not affordable housing units but rather open market rentals which provide an opportunity for residents to upgrade their standard of living. The existing units that will become available should provide a resource of decent, safe and sanitary units that low income people will have the opportunity to rent. These increases in the multifamily dwelling unit inventory will provide persons moving into the community a choice in where to reside.
Ellsworth Air Force Base was not included on the Base Realignment and Closure Commission (BRACC) list for closure. The base has been downsizing and reorganizing over the past several years and we were fortunate our base was not included on the closure list. Prior to the final listing of base closures, there was much apprehension in the community about what the loss of this air force base might do the community as a whole. The development community was frozen for several years waiting for the final decision to be made prior to constructing or developing multifamily units. Since that decision was made, construction of several projects has begun.
COORDINATION:
The Community Development Department for the City of Rapid City works closely with the public housing authority, nonprofit developers, for-profit developers, the local banking community and numerous social service agencies in identifying needs within the Rapid City community. In developing the CPS and the annual increment, organizations were invited to the public hearing; if unable to attend, they were invited to submit letters regarding the identified needs in the community. The Community Development Department also participates in advisory committee meetings; works with our local United Way agency that provides funding to social service organizations; and meets, with the Pennington County Health & Human Services Resource Board on a regular basis which assists in providing insight into the community needs. The Pennington County Health & Human Services Resource Board represents in excess of thirty (30) agencies that meet monthly to discuss available programs and eligibility requirements; to become knowledgeable on other service organizations and services available in the community; and to discuss gaps in service and how those gaps can be provided. The Community Development Department also has been working with the local banking community toward the establishment of the Community Development Corporation (CDC) which will provide zero percent interest (0%) construction loans for the development of affordable housing. The incorporation of the CDC was accomplished in the summer of 1995. A board of directors has been seated, officers elected, and the CDC will begin with the first loan in early CY1996. Each of the federally and state chartered banks involved have committed to an annual level of funding deposited into the CDC to be used to help develop affordable housing within the community.
Developers who visit with the community regarding housing needs contact the Community Development Department for copies of housing studies and the CPS which provides them with information that is helpful in making decisions on the types of housing units to develop. The SDHDA and the City of Rapid City encourage developers considering the Low Income Housing Tax Credit (LIHTC) Program to determine what they propose to construct is consistent with the identified needs in the community. Developers who look at accessing the LIHTC Program or HOME funds contact the Mayor's Office or the Community Development Department for a letter of support for their project and to make sure that the type of units proposed are consistent with our Consolidated Plan.
The Community Development Department maintains contact with SDHDA on an ongoing basis regarding HOME funds, McKinney Homeless funds, and information regarding first time homebuyer mortgage programs within our area. Contact with this agency is conducted on a variety of issues which includes allocation plans for HOME dollars, attendance at the annual state-wide housing conference, participation in any training sessions sponsored by SDHDA regarding the development of applications and providing information to the staff on issues that developers have regarding utilization of HOME funds.
MONITORING:
The Community Development Department enters into Subgrantee Agreements with all subrecipients for block grant funded activities. For organizations involved in construction activities, the Community Development Department is closely involved on the specifications for the project, bidding requirements, posting of Davis Bacon wage rates and ensuring general compliance with the federal contracting requirements for use of federal funds. Subrecipients of block grant funds in the public service category are monitored annually to make sure their record keeping is in compliance with federal regulations and the funds are spent in a manner that complies with the city's agreement and with the city's contract with the Department of Housing & Urban Development. Historically, the city has funded many of the same recipients of public service funds from year to year so those organizations are aware of an annual monitoring review completed by the Community Development Director. For city construction activities utilizing block grant funds, the Community Development Director coordinates the federal contract compliance requirement of the specifications with the engineering division and the monitoring of these projects from start to completion. Field inspectors normally handle the job interviews for the Davis Bacon requirement and all records for the project are maintained on file in the Community Development Department for three (3) years following completion of the audit for that program year at which time they are disposed of in accordance with federal regulations.
Ms. Bonnie Hughes
Director, Community Development
300 6th Street
Rapid City, SD 57701
Phone: (605) 394-4181
(605) 394-6636