Located in the heart of the midwest, Waterloo, Iowa, is recovering from a severe economic recession during the 1980s and from the more recent effects of flooding in 1993. The loss of the area's two major employers spurred escalating unemployment rates, deteriorating neighborhoods, and an out-migration of residents searching for new employment opportunities.

Although the area has been experiencing a gradual recovery and the population has been slowly growing, the nature of this new growth has been very different than that of the past. Therefore, Waterloo has redefined its community needs accordingly.

Action Plan

Waterloo's Consolidated Plan uses $2.3 million in entitlement funds, including $1.8 million in Community Development Block Grant (CDBG) program funds and $478,000 in Home Investment Partnership (HOME) program funds.

Citizen Participation

The Waterloo Community Development Board sought extensive citizen participation in identifying the needs and strategies required to implement the Consolidated Plan. A task force -- which consisted of 30 public and non-profit agencies involved in housing, finance, real estate, and neighborhood concerns -- was assembled to obtain the greatest possible input. Two public hearings and media notices ensured participation.

The statewide economic recession of the 1980s had a tremendous impact on Black Hawk County and on Waterloo, in particular. Between 1980 and 1990, the city's population declined by 13 percent, which reflects the relocation of almost 13 percent of the white population.

By the time that the area began recovering in 1990, Waterloo's population was reduced to 66,467, which was mostly white. African Americans, who comprised 11 percent of Waterloo's population in 1980, comprised more than 12 percent of the population in 1990, giving Waterloo the largest concentration of African Americans of any city in Iowa. Hispanics comprised less than one percent of the population, while other racial or ethnic groups comprised slightly more than 1 percent.

Most of Waterloo's African-American population was concentrated in the city's northeastern section near the central business district, which historically had the lowest median incomes in the area. Between 1980 and 1990, the number of low-income female-headed families with children increased by nearly 19 percent, while the number of small families decreased.

The city median family income (MFI) was $23,578. Of Waterloo's 27,185 households, 7,470 earned 0-50 percent of MFI. More than half these households were renters, largely consisting of elderly and small families. Of the 4,785 low-income households who earned 51-80 percent of MFI, one-third were renters.

Conditions

Although Waterloo is an industrial city with a large blue collar population, it is located in a rural area, making the city dependent on industries related to agriculture. During the recession of the 1980s, Waterloo's largest employer, John Deere, Inc., terminated over half its labor force, and the area's second largest employer, Rath, Inc., filed for bankruptcy. The area's only stable employer has been the University of Northern Iowa with 12,500 students and 1,600 employees.

The metropolitan area has gradually recovered. Between 1980 and 1986, the city's labor force dropped from 73,600 to 57,700. However, by 1993 the labor force had nearly recovered to its 1980 level, with the unemployment rate being 4.9 percent.

Although this recovery was vital to Waterloo's economy, it altered the composition of the city's current labor force. Between 1980 and 1990, jobs in manufacturing dropped from 34 percent to 21 percent. Comparatively, jobs in the wholesale and retail trades grew from 21 percent to 24 percent, while jobs in the service sector grew from 17 percent to nearly 25 percent.

Furthermore, these changes seriously impact the demand for housing. Although economic recovery generates increased housing demand, the growing number of low-wage trade and service jobs reduces the amount of money residents have for housing.

Housing Needs

Economic, demographic, and catastrophic changes during the previous decade have affected the city's housing needs. Waterloo has identified the following needs, which must be addressed:

• High cost burden.
• Structural deterioration.
• Supportive services for mentally and physically disabled residents.
• Disproportionate need among racial and ethnic groups.
• Lengthy waiting lists for assisted housing.
• Increased numbers of homeless persons.
• Rehabilitation following the 1993 floods.

Housing Market Conditions

The 1990 census counted 29,003 housing units in Waterloo. Of these, 65 percent were owner-occupied, and almost 35 percent were renter-occupied. In 1992 the average sales price of a home was $55,981, and the monthly median rent for a two-bedroom apartment was $375. Both of these costs are low by national standards.

Although the number of owner-occupied units has declined by almost 11 percent since 1980, the number of rental units has increased by 10 percent. Between 1980 and 1990, Waterloo's vacancy rate has increased from nearly 2 percent to 7 percent. Of the vacant units reported in the 1990 census, 10 percent were boarded up, and 50 percent had been for sale for 6 months or longer. Furthermore, 17 percent of owner-occupied structures were dilapidated enough to be considered unsuitable for rehabilitation. Another 36 percent of occupied units were substandard but suitable for rehabilitation.

Although the number of rental units has increased generally throughout the area, low-income neighborhoods have lost large numbers of owner-occupied and rental housing units. A shortage of adequate rental housing for large families also exists because most rental units are either one- or two-bedroom units. Only 20 percent of these units have three or more bedrooms. Comparatively, approximately two-thirds of the owner-occupied structures have three or more bedrooms. This uneven distribution presents serious problems for large families who do not have the resources to purchase a home.

Affordable Housing Needs

The majority of Waterloo's low-income residents are minorities, primarily African-Americans, whose median income is approximately 60 percent of the median income for whites. Of all African-American households, 54 percent are cost burdened, paying more than 30 percent of their gross incomes for housing expenses, while of all white households, only 33 percent are cost burdened. Furthermore, Hispanic households and female-headed African-American households suffer the most from cost burdens.

Overall, households earning 0-50 percent of MFI experience serious cost burdens. Over 80 percent of non-elderly rental households earning 0-30 percent of MFI experience rent burdens, paying more than 30 percent of their income for rent, while 50-66 percent of this group pay more than 50 percent of their income for rent.

Homeless Needs

The Black Hawk Homeless Coordinating Board counted 204 individuals in transitional housing and emergency shelters. Various breakdowns of this figure included: 170 persons in families with children; 50 substance abusers; 50 victims of domestic violence; 27 persons with severe mental illness; and 13 persons with HIV/AIDS.

In Waterloo 15 agencies provide services for the homeless population. These services and providers include:

• Shelters, provided by the Battered Women's Shelter, Catholic Worker House, and the Salvation Army.
• Transitional Housing, provided by Independence Haven, Operation Threshold, Waterloo Community Development Board, and the YWCA.
• Vouchers, provided by the Black Hawk County's Departments of Human Services, Veterans Affairs and Relief Office, and the Cedar Valley Food Bank.
• Supportive Services, provided by the Black Hawk-Grundy Mental Health Center, Hawkeye Valley Area Agency on Aging, Jesse Cosby Neighborhood Center, Peoples Community Health Clinic, Operation Threshold, and St. Vincent DePaul Society.

These figures do not reveal the number of households threatened with homelessness. The Black Hawk County Relief Office issues emergency utility or rental assistance to 2,400-3,000 clients per year.

Public and Assisted Housing Needs

Historically, Waterloo owns very few public housing units. The Waterloo Housing Authority administers 862 assisted housing units under the public housing, Section 8, and housing voucher programs. Of these, only 60 are public housing units, with 50 being reserved for the elderly. An additional 10 detached single-family houses were constructed under the Family Self-Sufficiency Program. As of March 1995, 1,063 families appeared on the waiting list for public housing.

Barriers to Affordable Housing

The Consolidated Plan identified the following barriers to affordable housing:

• Zoning and building regulations. In 1991 Waterloo amended its zoning ordinances to facilitate the creation of group homes in residential areas. However, attempts to construct facilities for mentally-impaired persons have failed statewide because group homes are required to meet code standards for intermediate care facilities.
• Rental deposits. A recently amended law permits landlords to impose a maximum security deposit of two months rent, inhibiting access to affordable housing.

Fair Housing

In 1991 a fair housing study commissioned by the Waterloo Community Development Board found that economic constraints prevent minority households from moving into certain sections of the community. The study also indicated that private lenders need to pursue opportunities which support housing investment in communities with minority concentrations.

As part of its commitment to increase housing opportunities for racial and ethnic minorities, Waterloo offers public education on the need for non-discrimination and collaborates with the Waterloo Human Rights Commission to ensure compliance with State and Federal anti-discrimination laws.

Lead-Based Paint

Although only 7 percent of the housing stock contains lead-based paint, most of these units are older dwellings occupied by very low-income households. The Black Hawk County Health Department reports that between 1994 and 1995, 187 children throughout the county had elevated blood-lead levels, and 6 of them were treated for lead poisoning. Of 80 properties inspected, 61 had lead hazards, which have been rehabilitated by the Waterloo Community Development Board.

Other Issues

In Black Hawk County, 7,931 residents require supportive housing. The overwhelming majority suffer from either mental health problems or mental retardation. Although no accurate estimates of the total number of persons with HIV/AIDS exist, the caseload at the Cedar AIDS Support System increased from 23 persons in January 1993 to 38 in March 1995.

Although many disabled persons receive some form of Federal income assistance, those with lower incomes must seek housing assistance from Black Hawk County rather than the Waterloo. Currently, 182 persons appear on the waiting list for county services.

Community Development Needs

The Consolidated Plan identifies the following community development needs:

• Parks and recreation facilities. Waterloo has designed an improvement strategy that contributes to the upward mobility of at-risk youth, while reducing crime and drug-related activities. Strategy services include recreation, education, tutoring, and youth employment.
• Street, drain, and infrastructure improvements. Streets and other public facilities in many low-income areas need to be repaired. Upgrading these facilities will stimulate neighborhood revitalization.

Coordination

The Center for Social and Behavioral Research of the University of Northern Iowa developed the city's Consolidated Plan on behalf of the Waterloo Community Development Board.

Vision for Change

Waterloo seeks to continue its economic recovery through neighborhood and business revitalization that will increase the standard of living for all of its residents.

Housing Priorities

The city's Consolidated Plan identifies the following housing priorities:

• Increasing the number of affordable housing units in the neighborhoods surrounding the downtown area.
• Increasing the supply of affordable rental housing available to very low-income households.
• Improving shelters and transitional housing for the homeless and those threatened with homelessness.
• Promoting homeownership for low-income families.
• Increasing supportive housing for those suffering from mental illness and substance abuse.
• Increasing affordable housing for elderly one- and two-person households.

Non-housing Community Development Priorities

The Consolidated Plan identifies the following community development and public service objectives:

• Providing public facility improvements designed to strengthen low- and moderate-income neighborhoods.
• Increasing the availability of public services that meet the needs of low- and moderate-income households.

Anti-poverty Strategy

Waterloo's anti-poverty strategy emphasizes three elements that help to reduce the number of households living in poverty:

• Economic development. The Waterloo Community Development Board provides loans for downtown revitalization, which create jobs in low-income neighborhoods. Furthermore, the Waterloo Chamber of Commerce collaborates with the Cedar Valley Partnership to develop industrial and economic growth, which creates new employment opportunities.
• Job training and education. Seven agencies provide special programs that enhance the educational and employment opportunities of low-income residents. These agencies are: Area VII Job Training, Black Hawk County Office of Veterans Affairs, County Department of Human Services, Hawkeye Community College, Martin Luther King Center, Operation Threshold, Inc., and Phoenix Project Partners.
• Linkages of housing with other programs and services. Various programs help low-income families to enhance their economic positions so they will achieve self-sufficiency. The following agencies offer these programs: HOPE for Frail Elderly and Congregate Housing Services, HOPE III/HOME, Operation Threshold/Waterloo Housing Authority, and Phoenix Partners.

Housing and Community Development Resources

Federal resources fund many of the programs mentioned in the Consolidated Plan, such as the HOPE for Frail Elderly and Congregate Housing Services, HOPE III/HOME, and Iowa Finance Authority programs.

Various local agencies provide assistance, such as donation of land and houses, emergency housing vouchers, and lead-based paint abatement. These agencies include: the Black Hawk County Health Department, the Black Hawk County Relief Office, the Black Hawk County Office of Veteran's Affairs, and the Black Hawk-Grundy Mental Health Center.

For-profit resources, such as financial institutions, provide loans and donations to non-profit housing organizations as well as set-aside funds for participation in the Federal Home Loan Bank Affordable Housing Program.

The Consolidated Plan could not be implemented without non-profit organizations, which offer services, housing, and support. These organizations include: the Cedar Valley United Way, the Battered Women's Shelter, Catholic Worker House, the Salvation Army, Independence Haven, the YWCA, the Cedar Valley Food Bank, the Hawkeye Valley Area Agency on Aging, the Jesse Cosby Neighborhood Center, Peoples Community Health Clinic, St. Vincent DePaul Society, the Hawkeye Community College, and the Martin Luther King Center.

Coordination of Strategic Plan

Three main agencies coordinate the Consolidated Plan:

• The Community Housing Partnership, which coordinates housing efforts between private, public, and non-profit agencies.
• The Black Hawk Homeless Coordinating Board, which provides leadership in reviewing grant proposals, seeking additional funding, and gathering data on the homeless.
• The Consolidated Plan Task Force, which coordinates all phases of the plan.

Description of Key Projects

Waterloo's Consolidated Plan identifies the following key projects for low- and moderate-households:

• Single Family Rehabilitation Project will rehabilitate 45 owner-occupied single-family dwellings citywide, using forgivable loans and low-interest loans ($850,000).
• Operation Threshold Home Ownership Assistance Project will provide funds to purchase and rehabilitate 22 single-family properties for homeownership ($368,650).
• Emergency Repairs Project will assist 25 persons with emergency repairs -- such as structural, heating system, plumbing, and electrical repairs -- to owner-occupied dwellings ($125,300).
• Clearance and Demolition Project will remove 25 vacant, vandalized, and abandoned housing units not suitable for rehabilitation ($60,000).
• Neighbors Helping Neighbors Program will construct curbs, gutters, and storm sewers for unimproved streets in a targeted neighborhood ($60,000).
• Family Service League-Battered Women's and Children's Shelter will provide services for 320 victims of domestic violence ($30,000).
• Springview Park will construct a combination tennis and basketball court in the City View neighborhood ($35,000).
• Mobile Street Paving will resurface unimproved sections of Mobile Street between Cottage Street and Newell Street ($113,152).
• Cedar AIDS Support System Project will offer tenant-based rental assistance for 20 persons with HIV/AIDS ($56,550).
• Phoenix Project Partners will provide eight at-risk youth with job training in the construction trades ($25,000).

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 project(s).