The Village is a suburb just outside of the City of Chicago. Over the last two decades, Schaumburg has become one of the dominant employment centers in the northwest suburban Chicago area and houses the Woodfield Regional Center, the site of 3400 businesses. Among them are Motorola with 7,000 employees, the Zurick American Insurance Group with 2,000 employees, Signature Group Insurance with 1,350 employees and Advantis with 1,025 employees.
The Village of Schaumburg has received from the Department of Housing and Urban Development a Community Development Block Grant (CDBG) of $415,000.00 and $16,000.00 in program income. It plans to leverage these funds with other public and private funding in support of its One-Year Action Plan The Village will also carryover funding from past fiscal years, which is targeted for the establishment of a group home and a transitional homeless home. A total of $65,000 has been set aside for the group home and $103,400 for the transitional homeless home.
Schaumburg encourages resident involvement in the development of its plan by
providing plan information at strategic public locations, publishing the plan in
its local newspaper, and inviting resident comment during its 30 day comment
period. Schaumburg also pledges to hold at least two public hearings per year
to obtain resident views on the development and direction of its plan and will
consider any reasonable comments or view for incorporation into the plan. A
summary of all pertinent comments and the reasons for not accepting particular
comments will also be noted.
From 1970 to 1980, Schaumburg experienced a 184.6% increase in its population from its 1970 figure of 18,730 to 53,305 by 1980. From 1980 - 1994, Schaumburg's population grow another 20,440 persons, bringing its total population to 73,745 residents. Parallel to its population growth has been the dramatic rise in Schaumburg's resident labor force.
Over a twenty-year period, its labor force has substantially increased from
10,603 individuals in 1970 to 28,768 by 1980 and to 36,587 by 1990. From 1990
to 1993, Schaumburg's resident labor force rose again to 46,669 people.
However, out of the 1993 figure of 46,669, 44,214 residents were actively
employed resulting in a 5.3% unemployment rate.
Schaumburg has experienced major office, commercial and industrial development resulting in a 1992 resident and non-resident work force of 61,700 people with a full 70% of this work force employed in non-manufacturing jobs. Conversely, the manufacturing sector experienced an overall decline in employment, reflecting a net loss of 958 jobs. Despite this set-back, however, the manufacturing sector accounts for 21.7% of the jobs in the Village with Motorola being the largest employer.
While Village residents prove to be a valuable employment resource, the majority of persons employed in Schaumburg live outside the Village. Over the past twenty-years, Schaumburg has become one of the dominant employment centers in the northwest suburban Chicago area, with Woodfield Regional Center being the largest employer. The Center houses approximately 3,400 businesses.
Schaumburg's statistics for its low income and very low income renters support the need for subsidies to alleviate their housing cost burden, which is defined as households paying more than 30% of their gross income on housing costs. The other category is severe cost burden which is defined as households paying more than 50% of their gross income on housing cost. Generally, Schaumburg low income renters, pay more than 30% but less than 50% of their income on rent, and as a group, would benefit most from a first-time homebuyers program.
At the very low-income range, a total of 1179 persons or approximate 1.7% of the Village population are within this income range, with almost half of this population being elderly. Surprisingly, the cost burden for the elderly between 0-30 Median Family Income (MFI), is less than other very low-income group. Conversely, 77% of the 31% to 50% of MFI elderly population are paying more than 50% of their income in rent.
One hundred percent of Schaumburg's small family and single parent households between 31% to 50% of MFI have a greater than 30% cost burden. While elderly and large family households within the 0-30% of the MFI have lower cost burden because they are the beneficiaries of government programs, such as Section 8 vouchers.
In the area of homeownership, the low-income elderly homeowners have very little cost burden. However, they are the most susceptible to property tax increases and interest rate hikes and are beginning to experience some cost burden.
For the very low income households, homeownership is virtually impossible without some financial assistance. For single parent families and larger families there are partically no inexpensive three bedroom apartments. While owning a three bedroom attached unit is more affordable, very low-income households do not have the funds for downpayments and other related housing purchase costs. Single parents with more than three children are especially distressed.
Schaumburg's housing stock is in good condition, with 83% of it being built since 1970. The Village has a Housing Maintenance and Occupancy Program. This program requires the Health Department to inspect and report on the condition of housing throughout the Village. If any unit is in violation of the building codes, the owner is required to correct the violation. Currently the Village does not need a rehabilitation program. Schaumburg's vacancy rate is low. Of the 29,499 housing units, 27,589 are occupied. Rental units account for 65% of the vacant units, while for sale units account for 7.3% of the vacancies.
The average cost for owner-occupied housing in Schaumburg is approximately $136, 000. The combined factors of growth both in housing units and in the population have transformed Schaumburg into a dynamic market, resulting in a soft rental market and the prospects for additional future rental housing are limited. The exception to this is elderly housing. Expectations are that as the population continues to age there will be a need for attractive retirement housing within Schaumburg.
A main impediment in Schaumburg's efforts to promote low-income home ownership has been the poor credit record of many low-income persons, resulting in a need to provide financial and employment counseling as a prerequisite to homeownership. Need to provide assistance to very low and low income households to alleviate their cost burdens, particularly for small family and single parent households between 31 to 50 percent of the MFI.
Last year, the Village assisted, through its various homeless organizations, 180 persons. The typical profile of Schaumburg's homeless is a white female with children who was the victim of mental and/or physical abuse. Of the Village homeless, 69% are white, 7% black, 8% Hispanic and 16% defined as other race or unspecified. While Schaumburg cares for its homeless primarily through emergency shelters, it states that its most immediate need is for transitional housing for its homeless families.
The Village has a number of homeless emergency facilities to assist homeless persons, such as the Public Action to Deliver Shelter and three churches that provide one-night or emergency shelter. Schaumburg also draws on assistance from several area agencies that primarily provide comprehensive homeless support services.
Schaumburg does not have any public housing projects. Rather, it focuses its attention and efforts on integrating subsidized housing with non-subsidized housing and reports some impressive results. Through HUD, the Village has financed seven apartment complexes within Schaumburg. In addition, the Village issued mortgage revenue bonds to facilitate the development of four apartment complexes where at least 20% of the units have been set- aside for low income persons.
Schaumburg states that private market apartment owners would take advantage of Section 8 certificates/vouches awarded to Cook County if the regulations which pose a deterrent to market economies were removed. Owners claim that there is a need to streamline the Section 8 program and assisted tenants treated with the same status as non-assisted housing residents. Apartment managers indicate that Section 8 holders enjoy a privileged status under the current law.
The lack of affordable housing in Schaumburg is caused by a multitude of factors. A major one is the high demand for housing in the ever expanding Chicago real estate market. One impediment that the Village is addressing is the requirement that all multiple-family housing units have a minimum of 20 acres. This requirement limits the ability of a developer to utilize smaller two to five acre in-fill lots. The Village will continue to review new methods that may be used to reduce the cost of housing, such as new technology that produce cost effective materials and methods of construction.
Schaumburg continues in its efforts to promote fair housing. It participates in regional forums. Among the issues addressed at these forums is economic segregation within communities and its effect on racial groups in the area of housing. Schaumbury also points to the need to study ways that older homes can be made more accessible to the disabled.
Only about 20% of Village housing stock was developed prior to the prohibition of lead- based paint resulting in not much lead based paint being utilized in Village housing units. Schaumburg has never had an incident of lead contamination that was linked to its housing stock or the use of lead based paints. Overall, the Village concludes that it has a very safe and healthy environment. However, Schaumburg will continue to test its water and soil for chemical and hazardous waste contamination. It views such contamination as remote and isolated if it were to occur.
Schaumburg cites the need for human services in connection with housing activities. For example, Schaumburg believes that if homeownership is to be a viable option for many low income households, they first need to receive financial counseling and employment counseling. The Village will also evaluate its need for subsidized child care, youth center, and senior health facilities for low income. Moreover, Schaumburg lists public improvements, particularly in its older subdivisions, and the removal of architectural barriers as its specific non-housing needs.
Schaumburg's Planning Department oversees and coordinates its Consolidated
Plan with assistance from its Engineering, Public Works, Building and Health
and Human Services Departments. When appropriate, it also coordinates its
housing activities with other area agencies and local governments.
The Village names 5 specific housing priorities. They are support for elderly housing; development of affordable housing; continued support of its first-time homebuyers program; a study to explore the necessity for an owner-occupied housing rehabilitation program; support for group homes and for continuum of care for the Homeless. The Village names public improvements, public facilities and removal of architectural barriers as its community development priorities.
The Village will encourage the development of new independent living senior housing complexes and is considering tax-exempt bond financing or tax-credits on behalf of developers of such housing. Schaumburg would like to see at least one new partially- subsidized elderly complex developed over the next five years. Its goal is to assist 100 elderly housing units.
Schaumburg's affordable housing strategy is to address the immediate rental needs of low and very low income residents and employees. It will encourage private and corporate donations to assist in this effort. It has establish a goal of 200 units as part of its affordable housing strategy.
The Village will study the need for a owner-occupied housing rehabilitation program and ways to implement such a program. It will also study whether or not to offer another Village-wide first-time homebuyers program designed to assist low income families become homeowners. It will consider allocating $100,000-$150,000 of its CDBG funds for this purpose. The Village would like to develop two group homes and expects to allocate between $160,000 to $200,000 for this purpose. The City also expects to allocate $40,000 of its CDBG funds to homeless agencies each year.
The Village will undertake in eligible low and moderate-income neighborhoods basic public improvements, such as curb and gutter and sidewalk improvements. The Village will also evaluate the need for subsidizing child care and youth and senior facilities. Schaumburg has allocated $90,000. over the next two years for accessibility disabled needs and will allocate $30,000. to $50,000. to remove barrier curbs at sidewalk intersections.
The Village commits to fighting poverty by publicizing and coordinating the available resources that can address the problems of poverty level residents, such as its shared housing and homeless assistance programs, its HOME Health Care and family counseling programs. Also the Village will continue to assist residents through referrals to the Schaumburg Township Public Aid Office.
The only funds the Village can commit on an annual basis to address its
community needs are its annual CDBG grant. It does not qualify for formula
allocations for HOME funds, Emergency Shelter Grant or for Housing Opportunities
for Persons with AIDS.
For Fiscal Year 1995, Schaumburg expects to receive $415,000. in CDBG funds and $16,000.00 in program income. The following are examples of the projects that it will undertake with these funds:
$ 11,000.00 To contract a nonprofit agency for the administration of to match seniors in a mutually beneficial housing arrangement. $ 23,000.00 To provide homeless assistance and counseling services to the homeless. $ 90,000.00 To fund Americans with Disabilities improvements to sidewalk/curbs. $ 20,000.00 Design for Fairlane Drive Road Reconstruction $207,000.00 Street reconstruction/storm sewer improvements $ 38,000.00 Locate a transitional home to be used by a homeless family for a period of 6-9 months.
Most of the activities are citywide with a few designated for specific low-income census tracts.
Approximately 207 households would be served through housing activities that include shared housing for the elderly and special needs population, a transitional housing to be used by a homeless family for a 6-9 month period and counseling services and housing assistance for homeless families.
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.
