The State of Iowa Consolidated Plan for Housing and Community Development discusses the State's needs for affordable housing and community development activities. The Plan presents priorities and strategies to address those needs.
The State submits the Plan as application for the following HUD programs: Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) and Emergency Shelter Grant (ESG). With the exception of CDBG funds in the State's nine entitlement cities, these programs will be used statewide.
The Plan was prepared by the Iowa Department of Economic Development, in consultation with other State agencies that operate in the broad area of housing and community development. Input was solicited through focus groups in the fall of 1994 in five cities across the State. A private consultant conducted these sessions, to which more than 150 people were invited. Participants included users of the programs, technical assistance providers and elected officials. The public was invited to comment through public hearings across the State. Press releases about the hearings were sent to all Iowa media outlets, and notices were mailed to groups which specifically serve low- and moderate-income persons. Public input also was solicited during a 30-day draft review and comment period.
The population of Iowa in 1990 was 2,776,755 (1,222,711 in 11 metropolitan counties and 1,554,044 in 88 non-metropolitan counties). The State experienced overall population loss between 1980 and 1990, but Census figures suggest a turnaround with growth since 1987, particularly in metropolitan areas. Census and other population estimates indicate the State will regain its 1980 population of 2,913,808 in 2010.
The median family income in the State is $31,659. Twenty-two percent of households have incomes at or below 50 percent of the area median family income, and 18 percent have incomes between 50 and 80 percent of the area median family income. Non-Hispanic whites account for 95.9 percent of Iowa's total population.
Racial and ethnic minorities comprise a small percentage of the State's population (African- Americans 1.48 percent; Hispanics .93 percent; Native Americans .21 percent; Asian and Pacific Islanders .48 percent; and other non-Hispanics .06 percent). All racial and ethnic group populations increased between 1980 and 1990. Non-white and Hispanic groups have markedly lower incomes than non-Hispanic whites.
The highest rates of poverty in the State are concentrated in southern Iowa and a few other parts of the State more isolated from metropolitan areas and from non-metropolitan employment centers. Decatur County has the highest rate of poverty (21 percent); Warren County has the lowest rate of poverty (4.8 percent).
There were 1,064,325 households in Iowa in 1990. Since 1980, the number of households grew about 1 percent. Seventy percent of households live in owner-occupied homes. Renters are more than twice as likely as homeowners to have incomes below 50 percent of the area median family income.
The median age of all heads of households is 47.4 (median age for home owners is 52.5; median age for renters is 35.3). Heads of household are older in non-metropolitan areas than in metropolitan areas. The number of elderly households is high and increasing steadily, especially in non-metropolitan areas. The average household size in the State in 1990 was 2.52 persons.
Of the 1,065,243 households in Iowa, 751,830 (20 percent) are identified as having housing problems (i.e., cost burden, overcrowding and/or physical defects). More renters have housing problems than do home owners (33 percent of renters compared to 15 percent of owners). The most prevalent housing problem is cost burden: the extent to which gross housing costs, including utilities, exceed 30 percent of gross income.
There were 1,143,669 housing units in Iowa in 1990. Of these, 42.9 percent were in metropolitan counties and 57.1 percent were in non-metropolitan counties. Three-quarters of all homes are single-family detached units. Most rental units in non-metropolitan areas are also single-family houses. There was an average net increase of 1,200 units per year from 1980 to 1990 (construction of 11,400 units and loss of 10,200 units per year). The 1990 statewide median owner-occupied home value was $45,900 statewide; the median rent was $261. More than a third of Iowa's housing stock was at least 50 years old in 1990; the figure was higher in non-metropolitan counties. The vacancy rate for rental units in 1990 was 6.6 percent; for units for sale was 1.35 percent.
Seventy-five percent of renters with incomes of zero to 30 percent of the area median family income have housing problems; 60 percent of renters with incomes of 31 to 50 percent of the median have housing problems; and 23 percent of renters with incomes of 51 to 80 percent of the median have housing problems. Seventy-two percent of home owners with incomes of zero to 30 percent of the area median family income have housing problems; 39 percent of owners with incomes of 31 to 50 percent of the median have housing problems; and 21 percent of owners with incomes of 51 to 80 percent of the median have housing problems. The most common housing problem among all low-, very low- and extremely low-income Iowans (owners and renters) is cost burden.
Homeless persons in Iowa do not fit the media image of "big city" homelessness. They are distributed across Iowa in rural and urban areas. Nearly 1.5 percent of Iowans were homeless or near homeless in 1992. Nearly 14,000 persons were considered homeless under the traditional definition of homelessness. Another 2,194 were living in transitional housing and another 25,037 persons were near homeless. The nature of homelessness is changing in Iowa. There are more persons on the street and in shelters than in the past. The number of children reported on the street increased dramatically from 1990 to 1992 — tripling to more than 700 children in 1992. Children under age 18 represented 53 percent of the total reported homeless population.
The State does not directly operate public housing units. For many populations with special needs, a stable environment requires both housing and supportive services. For others, the main need is for specially adapted housing. But for all groups, the primary need in Iowa is for affordable housing units. Estimates for each of the special needs populations are as follows: 426,106 elderly, 55,255 frail elderly, 250,000 persons with mental illnesses; 16,500 persons with mental retardation; 4,000 persons with developmental disabilities; 6,617 persons with multiple diagnoses; 22,613 persons with alcohol or other drug addiction and 229 persons diagnosed with AIDS.
Barriers to affordable housing common in more urban states are not prevalent in Iowa. The State is fortunate that growth controls, excessive subdivision regulation, inordinate developer fees and rent control are not critical housing issues. Rather, the slow development pace in most Iowa communities has resulted in the opposite circumstances: assistance and financial assistance for housing developers. However, there are other non- traditional barriers to affordable housing. Most significantly, there sometimes exists a negative attitude toward programs benefitting low-income persons. Specifically, there is often a bias against rental housing. Also, the high down payment required for a home purchase is prohibitive to many low-income, but otherwise qualified, potential homebuyers. The State will work closely with communities, councils of governments, lenders, service providers and others to educate people about affordable housing programs and attempt to change misconceptions.
The State is committed to fair housing. To that end, IDED is drafting the State's first Analysis of Impediments to Fair Housing Choice (to be completed February 1996). The State demonstrates its dedication to affirmatively furthering fair housing through its policies, procedures and practices, which are conveyed to recipients through workshops, contracts, management guides and technical assistance.
Poisoning from lead-based paint is the greatest environmental health hazard in Iowa. Any housing built prior to 1978 is considered to be at risk of containing some amount of lead- based paint. In Iowa, nearly nine of 10 homes were built before 1978, making them subject to suspicion. Iowa Department of Public Health (IDPH) estimates about 235,575 low-, very low-, and extremely low-income households live in housing units containing lead-based paint hazards. IDPH is the State's lead agency for lead-based paint hazard reduction, administering a variety of prevention, surveillance and Environmental Protection Agency grant-funded programs. IDED enforces a policy regarding lead-based paint in HOME- and CDBG-funded projects.
As identified by a content analysis of Community Builder Plans prepared by 450 cities and 70 counties in Iowa, the State's non-housing community development needs are as follows: 92 percent of communities need economic development; 56 percent need roads; 51 percent needs sanitary sewer systems; 49 percent need water systems; 32 percent need storm drainage systems; 31 percent need business development; 30 percent need industrial development; 29 percent need tourism; 21 percent need transit systems; 18 percent need sidewalks; 15 percent need police service; 15 percent need industrial parks; 14 percent need day care facilities (for children and/or seniors); 11 percent need physicians; 11 percent need speciality shops; 10 percent need curbs and gutters; and 10 percent need more retail businesses.
The State's overall goal is to develop viable communities by providing decent housing and suitable living environments and expanding economic opportunities, principally for persons with low and moderate incomes are to help meet the affordable housing needs of low- income Iowans.
IDED classifies the housing needs of all Iowans (owners and renters) with housing problems (cost burden, substandard housing, overcrowding) whose incomes are at or below 50 percent of the area median family income as a "high priority." The housing needs of those with incomes of 51 to 80 percent of the area median are classified as a "medium priority." The housing needs of homeless persons are prioritized as follows: assessment and outreach, permanent housing and emergency shelters for families are high priorities. Transitional housing, permanent supportive housing and emergency shelters for individuals are medium priorities. Assessment and outreach, emergency shelters, permanent supportive housing and permanent housing for non-homeless persons with special needs are high priorities; transitional housing for non-homeless persons with special needs is a medium priority.
Iowa's community development needs include public works, public facilities and services and economic development. All are high priorities. Historically, the Iowa CDBG program has been open to funding priority needs as expressed by the applicant communities. The rating system favors projects for which a need is demonstrated objectively and which will address that need effectively and efficiently. Further, the rating system favors projects with local effort or "match," local planning and more than minimum benefit to low- and moderate- income persons. All applications are reviewed using the same criteria, regardless of the type of project.
Poverty status is a direct measure of income inequality. Persons living at or below poverty income levels typically are the least able to pay for housing. The State has attempted to address poverty in a comprehensive way by implementing the Iowa Human Investment Plan, which was completed in December 1992 with assistance from the Corporation for Enterprise Development. The State formed a Human Investment Policy Council, whose mission was to "design a human investment system which will empower all individuals and families to escape or avoid poverty and provide all Iowans with the opportunity to participate in and contribute to the community." The elements of the plan include asset development (Individual Development Accounts), workforce development (Promise Jobs and Quality Jobs), economic development, related services and welfare reform.
The State expects the following federal resources to be available to implement housing and community development strategies: CDBG, HOME, ESG, Department of Energy weatherization funds, low income housing tax credits, historic preservation tax credits, Rural Housing and Community Development (formerly Farmers Home Administration) programs, Environmental Protection Agency sewage treatment assistance, Economic Development Administration loans, other HUD assistance (e.g., sections 811, 202 and 8) and private organizations. The State expects the following non-federal resources to be available to implement housing and community development strategies: Iowa Finance Authority programs (including the Housing Assistance Fund, low-interest loans for homebuyers, down payment /closing cost grants, mortgage credit certificates and homeless shelters operations grants), Federal Home Loan Bank Affordable Housing Program and Community Investment Program, tax increment financing and private organizations
The organizations involved in implementing the Consolidated Plan are as follows: public institutions (e.g., other state departments involved in community and housing development and local governments); nonprofit organizations (i.e., CHDOs, local housing authorities, Federal Home Loan Bank, Iowa Housing Corporation); and private organizations (e.g., lenders, developers, contractors, property managers). IDED, as State administrator of the major HUD housing programs, is the lead agency for coordinating a variety of initiatives to increase interagency cooperation and efforts to overcome gaps.
The 1995 Iowa Consolidated Plan for Housing and Community Development is a 5-year document. An Annual Action Plan will be prepared for each program year during the 5-year period.
IDED allocates the State's CDBG funds as follows: 49 percent to non-housing community development projects (annual competition for community infrastructure and facilities); 25 percent to the housing (combined with the State's HOME funds in an open-window Housing Fund); 16 percent to business development (economic development/public facilities set- aside); 6 percent to Quality Jobs (welfare reform set-aside); 3 percent to administration and technical assistance and 2 percent to the imminent threat contingency fund. IDED will make the State's HOME funds available for the following types of projects: rehabilitation of existing housing units (owner-occupied and rental); homebuyer assistance; tenant-based rental assistance; new construction and transitional housing. IDED will assist the following activities through the ESG program: rehabilitation of emergency shelters; provision of some essential services; homelessness prevention; and shelter operations.
The State's CDBG, HOME and ESG programs are competitive and demand-driven. Consequently, local interest and initiative in developing and carrying out programs and projects generally control the geographic distribution of the State's investments in housing and community development assistance.