The Georgia State Consolidated Plan (CP) describes how State, local, private and federal resources will be used to increase affordable housing for its low and moderate income citizens, establish and maintain a suitable living environment, and expand economic opportunity for citizens, particularly those of low income. It establishes a one-year Action Plan and five-year priorities, objectives, and investment plan for the programs funded by HUD for which the State administers directly. The State anticipates providing additional assistance through other funding sources.
Activities planned for 1995 to meet the State's housing priorities and objectives include:
Public hearings were held in March at four locations across the State
following announcements in 10 newspapers. Other notices were mailed to
recipients of Low Income Housing Tax Credits, to elected officials and to
individuals. Over 300 copies of the draft version of the CP were distributed.
Census figures indicate that Georgia has approximately 7.1 million
residents, an expansion of 9% since 1990. During the 1980's the state had
experienced explosive growth; housing units rose 31%. The population growth
occurred in the state's metropolitan areas rather than its rural communities.
The number of persons per household declined from 2.84 to 2.66 between 1980 and
1990. Elderly population living alone increased 71%. While the number of
occupied units increased 25%, vacant units doubled and rental supply grew from
2.7% to 4.4%.
Census data does not provide information by state on the structural condition of housing units and the state has not conducted a systematic inventory of housing conditions. Most counties have incorporated a housing element into their state-mandated comprehensive plan effort. As these plans are aggregated into regional plans, the information will provide for a more complete analysis.
Housing researchers often use the age of a housing structure as a proxy for the condition of an area's housing stock. Recognizing the limitations (e.g., no information on actual structural condition), age does provide some measure of housing condition, inclusion of kitchen facilities and indoor plumbing, lead-based paint and maintenance. Approximately 14% of all housing units in Georgia were constructed prior to 1950. The average structure in Georgia was built between 1970 and 1979. Savannah area's housing stock is oldest, nearly 24% built before 1950. Housing in nonmetropolitan areas is generally older.
Overcrowding is the most common housing problem, affecting 7% of all households and 10% of renters with very low income. 36% of large family renters experienced overcrowding while 57% of them live in substandard housing. 30% of low and moderate income households are elderly even though elderly population is only 19% of the state total. 42% of elderly renters live in substandard housing and 40% experience cost burden.
As Georgia's economy improved from the recessionary slowdown of the early 1990's, both the single family and multi-family segments of the residential real estate market showed signs of improvement early in 1994. Single-family building permits in Georgia issued through August 1994 rose 4% over levels experience the year before. The Atlanta Metropolitan Statistical Area (SMSA) led the nation in the number of single-family building permits issues. Building permits for multifamily dwellings through August 1994 increased 116% from the prior year. But in the Atlanta SMSA building activity surge remained concentrated in its suburban areas while demand within the central city remains soft. Rising interest rates were expected to slow the growth of the housing market and building activity. Atlanta's housing market remains relatively affordable compared to the average metropolitan housing market in the nation. Private housing developers in the state's slow growth regions may experience difficulties or lack the necessary financial incentive to construct housing units with conventional financing. In Georgia's growth regions, continued public financial assistance may be necessary to help maintain affordable housing. Incentives may range from housing vouchers for low income tenants to financial subsidies paid directly to developers to construct affordable housing.
40% of all Georgia households have income ranging between 0 and 80% of median income. 28% of all Georgia households are affected by housing concerns, most common of which is cost burden. One in four households pays at least 30% of income for housing; 39% of cost-burdened households and 10% of all households are severely cost burdened (they devote at least 50% of their income to housing).
Renters are more severely cost burdened at the extremely low income levels than homeowners; in contrast, homeowners in the three higher income categories are more cost burdened than renters.
Three-fourths of extremely low income households have at least one housing problem; 68% of these are cost burdened; 48% are severely cost burdened.
Households earning a single minimum wage can pay no more than $200 a month for rent and not be cost burdened. Households earning the standard minimum wage can only account for from 34% to 59% of the fair market rent (FMR) for a two-bedroom unit in four counties surveyed. Even with AFDC assistance, the maximum $280 monthly payment for a three-person family can only account for from 48% to 83% FMR in the four counties.
In the poorest region, the Southeast, almost 47% of all households are of low or moderate income. At the county level, figures range from a low of 23% to a high of 64% households of low or moderate income. And in Butts County, within generally affluent Atlanta region, over 62% of households have income below 80% of the median family income.
The Georgia Task Force for the Homeless estimates that 50,000-75,000 individuals lack permanent shelter on any given night in Georgia. The Atlanta Task Force counted 22,245 individuals seeking shelter assistance in 1993; and this represents 60% of the total number of calls for shelter. Of the shelter requests, 57% sought shelter for families with children, and averaged 2 children per family.
A total of 5,243 bed spaces are available year round across the entire state. 3,400 within the seven county metropolitan Atlanta area. These serve only 10% or less of the need. Many of the bed spaces are targeted for specific groups such as victims of domestic violence, further reducing the availability of bed spaces. Approximately 58% of homeless individuals previously lived with friends or relatives, often in overcrowded or substandard housing conditions. A wide continuum of supportive services is required to effectively facilitate a successful transition from homelessness into permanent and stable housing.
Public Housing Authorities (PHAs) carry out a large portion of Georgia's housing assistance effort. Local governments have created 202 PHAs, 200 providing public housing and 17 offering Section 8 rental subsidies. PHAs utilize funds from public housing rent receipts, federal subsidies from HUD, and proceeds from bond issues for some development costs.
Over 108,000 residents live in the 55,834 units of local public housing authorities across Georgia.
No public housing authorities are operated by state agencies. Therefore, the State has not developed a plan to encourage public housing residents to become more involved in the management of public housing or to become owners of their units. The State encourages each individual PHA to develop such a plan. However, the State has taken steps to encourage the transition of public housing residents into private housing living situations.
Nonprofit organizations and Community Housing Development Organizations (CHDOS) play an increasing and important role in the development and rehabilitation of affordable housing throughout Georgia.
Insufficient income is the single largest barrier to affordable housing.
Additional programs and incentives are necessary to provide affordable housing opportunities around the state and accessible to low income families and individuals. More efforts are also needed to prevent new households from becoming homeless and to assist the existing homeless to secure permanent housing. Other housing needs include rental, down payment and rent deposit assistance; aid in paying past utility bills and new utility deposits; long-term lease or lease-purchase arrangements for households leaving transitional housing. The Cobb weatherization program estimates that a 25% reduction in utility costs is achievable by properly weatherizing a unit. In addition, providing affordable housing within safe neighborhoods is an important consideration to eliminate homelessness. One of the most serious complaints of individuals seeking housing is fear; and those with children sometimes prefer staying in shelters rather than living in dangerous areas.
Other obstacles include high land and construction costs; rising interest rates; low fair market rents established by HUD; appraisal values on properties that often are lower than rehabilitation costs; Not In My Back Yard (NIMBY) reactions by citizens and subsequent policies of local governments that discourage and prohibit development of affordable housing opportunities in certain neighborhoods; and discriminatory behaviors.
The State will complete an analysis to identify impediments to fair housing choice within the State as required by the HUD CP regulations issued January 5, 1995.
Estimates based on the age of housing indicates a total of l.l million housing units in Georgia with lead-based paint. Ten counties have the largest stocks of pre-1970 housing. Some 127,000 low and moderate income households are at high-risk of exposure to lead-based paint hazards such as chipping or peeling paint and dust. The number of children in Georgia with lead poisoning is unknown, but a screening and diagnostic program in 1991 identified 6,200 lead poisoned children under 6 years of age (greater than 10 ug/dl of whole blood and 1,100 children at or above 20 ug/dL. [Center for Disease Control established an intervention level for adverse health effects (mental retardation, kidney impairment and reproductive damage) at 10 ug/dL.]
While predicting the project types to be funded is difficult due to the emphasis given to meeting locally determined needs, an analysis of the FY1994 Regular Annual CDBG Competition sheds light on need. There were 134 requests for public facilities totaling $55.3 million and 22 for multi-infrastructure activities totaling $15 million. These included water/sewer, drainage, street improvements; handicapped and child care, senior, health and mental health and multi-purpose centers; and accessibility projects.
Obstacles to meeting these needs, in addition to funding, include a lack of capacity at the local or regional level to develop competitive CDBG applications or to administer projects once funding decisions are made. This need seems especially acute for economic development projects and projects involving the abatement of lead paint hazards. To address this need the State will make available technical assistance funds through a set- aside of CDBG funds.
The FY95 Consolidated Plan for the State of Georgia has been developed through the collaborative efforts of the Georgia Department of Community Affairs (DCA) and the Georgia Housing and Finance Authority.
The Georgia State CP divides its priorities into two categories based on function: priorities targeted to directly benefit low and moderate income households and priorities aimed at improving the production capacity of Georgia's affordable housing providers. Without ranking, here is the list:
Direct Benefit Priorities:
The State recognizes that its efforts to improve the production of housing
and supportive service providers will be reflected in the number of households
which directly benefit from their assistance. Therefore, the State has not
established separate, quantifiable objectives for its production improvement
goals within its Strategic or Action Plans.
Over five years, to provide assistance sufficient to put over 55,000 extremely low, low and moderate income households in affordable housing, free of overcrowded, structurally substandard conditions, with supportive services where appropriate for populations with special needs.
The State has required each local government to consider affordable housing needs within its mandated comprehensive plan. Several local governments are also working to eliminate disincentives associated with tax delinquent properties and gaining clear property title in an effort to encourage affordable housing development and investment in blighted neighborhoods. Other local governments have institute progressive changes in the levy of property taxes.
The State will continue over the next five years to examine methods to eliminate barriers to obtaining affordable housing. These actions will include revising housing programs to facilitate access to available funds; revising and implementing State laws impacting housing affordability; and continuing implementation of the Georgia Planning Act requirement for jurisdictions to examine issues related to the provision of adequate and affordable housing.
Acknowledging the importance over the next five years of improving the capacity of its institutional structure to deliver affordable housing, the State has established the following priority: to increase the capacity and skills of local nonprofit organizations and other providers to offer housing assistance.
The 1992 Census Bureau statistics showed 17.8% of Georgia's population living below the poverty line, higher than the national percentage of 14.5%. The percentage of Georgians living below the poverty level has increased each year (1990, 1991 and 1992) from 15.8% to 17.8%. In some counties over one-third of the households live below the poverty level.
The State has established several goals relating to the reduction of poverty among its residents, including:
The State expects to tap a variety of federal resources to address Georgia's housing and community development needs. HUD has notified the State of its eligibility for almost $67 million divided among the following programs: CDBG $47.5; HOME $16.7; Emergency Shelter Grants $1.9 and Housing for Persons with Aids $.9. HUD will make available additional resources from these four programs directly to individual jurisdictions.
The State also anticipates funding from a variety of Affordable Housing (e.g. Section 8); Homeownership (e.g. HOPE I Public Housing Home Ownership; public housing comprehensive grants and development funds); homeless (e.g. Supportive Housing Demonstration Program); Special Needs Housing (e.g. Rural Housing and Community Development Service Home Improvement Loans and Repair Grants); and non-housing community development needs (e.g., Rural Economic and Community Development Agency Community Facilities Loans and Grants).
The policy of the State strongly favors the formation and maintenance of cooperative partnerships with the federal government and various State agencies that administer numerous federally funded housing and community development programs and at the local level with PHAs and HUD entitlement communities.
The Georgia Housing and Finance Authority, the Georgia Department of Community Affairs, and the Georgia Department of Human Resources continue to work closely and coordinate their efforts to address issues related to poverty, such as lead-based paint abatement and homelessness.
The State also recognizes the importance of cooperative partnerships between
State agencies and all housing industry players in effectively addressing
affordable housing issues, and established a priority to increase coordination,
strengthen linkages and encourage the formation of partnerships between
Georgia's private sector housing developers, financial institutions, nonprofit
organizations, public sector agencies, foundations and other providers.
Activities planned for 1995 to meet the State's housing priorities and objectives include:
In addition, the following non-federal public resources will be used:
Lead agencies are the Georgia Department of Community Affairs and the Georgia Housing and Finance Authority.
Based on a review of key economic and demographic indicators, Georgia's housing needs are not likely to change substantially over the next five years. While the absolute number of households will increase, the percentages of households affected by cost burden, overcrowding and physically defective housing should remain constant. The use of federal, state, local and private resources will help alleviate but not eliminate these problems. The numbers shown above in the Action Plan are based on estimates of the available resources. At that level, over a five-year period, the State could assist in providing the following for extremely low, low and moderate income households:
Don Watt
Georgia Housing and Finance Authority
PH: (404) 679-4840