The State of Illinois's 1995 Consolidated Plan constitutes a strategic vision for housing and community development for the state. This document summarizes the plan so that citizens in the state can have a quick overview of the housing and community development problems; the 5 year broad objectives and actions proposed to meet those goals; and specific projects for carrying out this strategy during 1995.

Action Plan

The State of Illinois receives direct HUD formula funding under three (3) programs: The Community Development Block Grant (CDBG $ 40.681 million) and Emergency Shelter Grants (ESG $8.294 million) Programs, both administered by the Department of Commerce and Community Affairs (DCCA); and the HOME Program (HOME $ 63.344 million) is administered by the Illinois Housing Development Authority (IHDA).

A detailed listing of the major types of activities and which Federal and State programs which are available to carry each of them out is included in the one-year action plan. The State intends to utilize its formula funding programs. Which State priority need that each one addresses is included in the individual Program Description. The following are some illustrative examples:

• CDBG (CDAP) - The State primarily funds owner-occupied housing rehabilitation programs, but local programs also often serve persons with physical handicaps (special needs) and homeless persons (e.g., local governments working with provider/placement agencies much as the Southern Illinois Coalition for the Homeless).
• HOME - Owner and rental housing rehabilitation (including SRO's) for low/very low and special needs households are funding priorities as is homebuyer assistance and new construction in needed areas. Tenant-based rental assistance is viewed as short-term assistance due to its limited statutory availability (of 2 years of assistance), but has been used on a limited basis to serve special needs population (e.g., battered women).
• ESG - The State allows local applicants to address local problems that can be resolved through the following ESG-eligible activities: rehabilitation or conversion of buildings to be used as emergency shelters; homeless prevention; new or expanded essential services; and certain operating/maintenance expenses. vvvAll of these activities directly address the homeless population.

Citizen Participation

The Citizen Participation Plan largely centers around the public hearing and public comment processes. The State held three hearings, Chicago march 3, 1995, Springfield, and Marion, March 13, 1995, and received public comments in writing until April 7,1995. A Public Notice was published prior to the hearings in ten (10) newspapers, and Dcca mailed notices of the public hearings to all of the CDAP eligible units of general local government in Illinois (i.e., non-entitlement cities, towns, villages, and counties), as well as to its mailing list of homeless assistance service provider agencies. Both the Consolidated Plan (and the Citizen Participation Plan included within it) have wide availability to the public through the State and local library system, State agencies, CDBG entitlement localities, and Community Action Agencies.

The State of Illinois is geographically diverse, containing highly concentrated metropolitan areas as well as low density rural areas. Variations in the demographic, social, and economic characteristics of these metropolitan and rural areas lead to distinct differences in housing needs among urban and rural residents. An important fact to keep in mind when comparing the urban and rural characteristics of the State is that within these two large subdivisions there may be significant differences among the individual metropolitan and non-metropolitan counties making up the larger areas. Patterns of population change suggest a more complicated and diverse State than one split simply along urban and rural lines or partitioned between Chicago and "Downstate." For example some urban areas grew, while others did not. The State Capitol in Sangamon County, University of Illinois in Champaign County, and foreign investment in McLean County sparked population gains above national and State averages around Springfield, Champaign-Urbana, and Bloomington-Normal during the 1980's. By contrast, older industrial centers like Rock Island and Moline, Peoria and Pekin, Decatur, Kankakee, Quincy, Danville, and Galesburg, and their counties, had smaller populations in 1990 than at the beginning of the decade. The metropolitan counties account for almost 83% of the State's total population, with the remaining 17% residing in the non-metropolitan counties of Illinois. The median age of Illinois' population is 33; a quarter of the population is under 18, while 12.6% of the State's residents are seniors (65 years and over) and 5.4% are 75 and over.

Conditions

Between 1980 and 1990, the population change in Illinois was almost imperceptible. This population stability is expected to continue throughout the 1990's. If current housing assistance levels are maintained, the overall assessment is not expected to change significantly. Accordingly, no numerical projections of the five-year housing needs in the State of Illinois have been prepared. Some change is expected for specific population groups are based on nationwide trends. The nationwide projections indicate that among low income households, the number of single female householders with families is expected to increase the most. Among other low income groups, non-elderly families and individuals are expected to increase more than elderly households.

Housing Needs

The trend in the 1980's nationally and statewide has been an increasing shortage of low- cost rental housing and affordable single-family housing for persons with incomes at or below moderate income levels. The rental housing shortages are due in part to the decreasing supply of single room occupancy units caused by demolitions and conversions and the massive cutbacks in funds that were available for low-income housing production. The lack of affordable single family homes has been caused by demolitions and conversions and the massive cutbacks in funds that were available for low-income housing production. The lack of affordable single family homes has been caused by the escalating costs associated with new housing production and the continued increase in the cost of existing housing. This shortage has created an affordable housing gap experienced by many of the lower and moderate income households throughout Illinois.

Housing Market Conditions

The State's housing markets are most certainly local phenomena. They are affected, as are most housing markets, by national and global economic trends and changing housing production technologies. Public policies can also influence local markets and the markets, in turn, can influence how government can effectively use programs to assist people in need.

Many aspects of the local housing markets vary across the State: prices, styles, and levels of activity differ widely across a State as large, economically and geographically diverse as Illinois. Even within smaller regions and counties, prices and conditions often vary significantly. The overall State housing market and inventory profile presented in this document, then, is really a general point in time picture of the aggregation of all the local housing market characteristics and conditions found in Illinois.

Affordable Housing Needs

Current housing assistance levels need to be maintained. The most common vhousing problem in Illinois is a cost burden of over 30% of income, experienced by 22% of all low and moderate income households. These households pay more than 30% of their income for housing and related costs, including utilities. Among some income groups severe cost burden (over 50% of income) is common. Overcrowding is a significant problem for large households in particular.

In a recent non-metropolitan housing stock report, they reported a decline in the rental vacancy rate between 1980 and 1990. This increase in demand for rental units did not cause rents to rise much. In fact, the number or "inexpensive" rental units in non- metropolitan areas increased from 45% of rental in 1980 to 65% in 1990. During the same period, the value of owner-occupied housing units declined substantially after adjustment for inflation. One concern associated with these housing value trends is that low values and rents will lead to deterioration of the housing stock.

Homeless Needs

The state-funded inventory of homeless facilities and services shows that there are currently:

• 89 transitional housing facilities providing 3,154 units, with the majority of the facilities (70%) located in the 8-county Chicago metropolitan area;
• 27 emergency or overnight facilities with a capacity of 2,581, again with the majority (59%) in the Chicago metro area; and
• 27 rental assistance/voucher programs throughout the State.

Comparing the number or units or capacity in facilities available statewide to the estimates of homeless persons and those threatened with homelessness indicates a wide disparity between supportive housing need and currently available resources. The need for this type of housing is particularly evident in the non-metropolitan areas of the state. Because of the large gap in supportive services, and the potential needs of those households that could become homeless, a relative numerical priority of 1 has been assigned to the homeless persons category for both individuals and families.

Public and Assisted Housing Needs

While the State does not own or operate public housing, information was made available t the State on public housing waiting lists. Although this information should not be viewed as complete because not all PHA's responded to the request for information, it is the only current data available on a statewide basis. An estimated 14,971 individuals are currently on PHA waiting lists for conventional family and elderly public housing. In addition the Section 8 waiting list maintained by PHA's contained 32,632 persons for the various Section 8 programs administered by housing authorities. In addition to these waiting lists 2,653 individuals are on waiting lists for Farmers Home Administration (FmHA) Section 515 housing.

Barriers to Affordable Housing

While relevant public policies (both at the State and local levels), can positively affect the development of affordable housing, they can also have negative effects. While there currently is no statewide housing or building code in Illinois statutes, the following are some State public policies that could be construed as having negative effects on the development of affordable housing largely due to their impact on housing costs (causing costs to increase): The effect on housing costs of these policies however, should be viewed within the context of public health, safety, and welfare issues which they address.

• State Plumbing Code/Illinois Plumbing License Law;
• Historic Preservation;
• Lead Poisoning Prevention Act;
• Real Estate Transfer Tax;
• State Asbestos Abatement Act;
• State Environmental Barriers Act/Illinois Accessibility Code;
• State Manufactured Housing and Mobile Home Safety Act;
• State Private Sewage Disposal Code/Illinois Private Sewage Disposal Licensing Act;
• State Septic Code; and
• Storm Water Requirements.

The inclusion by reference herein of these various State laws/regulations of local ordinances is not meant to imply that any of them are excessive, exclusionary, discriminatory, or duplicative.

Lead-Based Paint

In the State of Illinois, it is estimated, having a margin of error of at least plus or minus 10%, that 2,814,500 households, (67% of all households) live in units with lead-based paint. 1,196,000 very low or other low income households (71%) are estimated to live in units with lead-based paint. The estimated percentages of households with lead-based paint do not very much between the metropolitan and non-metropolitan areas of Illinois. An estimated 613,000 very low and other low income households live in rental units with lead- based paint. Low income renter households in old units are at particular risk because the incentive and ability to prevent or address paint deterioration in these units are low: there are 278,443 very low and other low income households living in pre-1940 units in Illinois.

Non-Housing Community Development Priorities

There are many activities which are eligible for CDBG funds but cannot be funded because of lack of available funds each year; application requests far exceed the amount available. Many industries wishing to develop or expand in rural Illinois confront two types of "gaps" in realizing their project. First, there is often a "gap" in the physical infrastructure, particularly water and sewer, necessary to accommodate a new or expanding business. Second, businesses often are unable to access sufficient capital at an affordable, fixed rate to insure the projects' economic viability.

Economic Development

• Provide $8 million of CDAP economic development assistance to address financing and infrastructure gaps;
• Assist 20 businesses to create or retain at least 800 jobs, primarily for low and moderate income persons (at least 51%);
• Leverage at least $16 million of economic development-related investments;

• Enhance the economic foundations of local communities'(physical infrastructure and access to capital) necessary to promote job growth and retention, particularly "export" jobs (i.e., jobs which provide products or services sold primarily out-of-state);

The need for financial assistance to upgrade inadequate, aging infrastructure is overwhelming. Over the past two years the state has received almost $90 million in requests for public facilities. A total of $46 million in CDAP funds were awarded. This left a shortfall of $44 million.

Public Facilities

• Provide $1 million in assistance to local governments to make structural alterations to ensure that core services are accessible;
• Assist 100 communities to develop/upgrade their infrastructure, primarily water and sewer, to address threats to health and safety. All projects will benefit at least 51% low and moderate-income (LMI) persons, and overall, the goal will be to achieve at least 60%;
• LMI benefit. Provide financial assistance to develop 20 plans that will guide communities in constructing major new or expanded public facilities within two years of the plans' completion;

Long-term objectives

• Increase coordination between CDAP and other State and Federal funding programs for local infrastructure development;
• Support local efforts towards solving pubic facility problems, especially in the area of water and sewer service, by providing gap financing for planning, engineering and construction costs;

Anti-Poverty Strategy

The State's 36 community action agencies (CAAs) administer any of a number of anti- poverty social services programs at the local and regional level, primarily to very low income households and individuals. These range from employment training, Headstart, emergency food and shelter, weatherization, transportation services, day care, health care, senior citizens programs, small business, utility assistance, and housing.

Coordination of Strategic Plan

The State's activities to enhance coordination between public and assisted housing providers and private and government health, mental health, and services agencies is becoming an increasing role of Illinois Housing Development Authority (IHDA). The IHDA's Office of Housing Coordination Services (OHCS) is responsible for issuing Certifications of Consistency with the State Consolidated Plan.

The State's allocation for the 1995 CDBG/CDAP is $40,861,000. Funding is proposed to be distributed as follows.

The HOME Program operates throughout the State, with priority given to areas which don't receive HOME funds directly from HUD. It is anticipated $18,557,000 million be available to assist low-and very low-income homeowners, homebuyers, renters, and homeless. The activities include Acquisition, rehabilitation, new construction, and homebuyer assistance.

$ 2,537,000 million grant funds are made available to for funding emergency shelters for the homeless. The activities include Rehabilitation, supportive services (including tenant assistance for homeless prevention services), and operating costs.

Tel. (312) 836-5383
Fax. (312) 527-2509