Action Plan

During the first year of its 5-year Consolidated Plan, New Albany expects to have available approximately $1 million in Community Development Block Grant (CDBG) funds. The funds will be used for housing rehabilitation, first-time home-buyer assistance, and infrastructure improvements. The focus of the plan is on the older and higher density area of the city, which is characterized by a high concentration of low-income persons.

Citizen Participation

The Consolidated Plan was developed in cooperation with the public, private for-profit, and private not-for-profit sectors. Public hearings were held in February and April 1995 to solicit citizens' input. The February hearings revolved around issues related to housing and economic development. The hearing in April solicited comments on proposed CDBG-funded projects for the first year of the plan. The city also held consultations with banks, housing organizations, and economic development organizations in February 1995.

The population of New Albany decreased slightly from 37,103 in 1980 to 36,322 in 1990. Around 45 percent of the population, or 16,345 persons, are estimated to have low incomes. The majority of lower income persons (9,442) are located in the inner city. Most of the city's minority populations are also concentrated in neighborhoods in the center of the city.

In January 1995 New Albany had an unemployment rate of 4.8 percent, slightly higher than the State of Indiana's rate of 4.6 percent. Although the city's economy has diversified in recent years, particularly through jobs in services and trades, manufacturing remains a key component of the economy. Manufacturing industries in New Albany include plastics, veneer and plywood, steel fabrication, auto parts, fertilizer, and computers.

Housing Needs

According to a 1993 survey, 13.3 percent of New Albany's housing stock is considered substandard. Slightly more rentals (14.5 percent) than owner-occupied housing (12.6 percent) are substandard. Most of the substandard housing is located in the inner portion of the city. Almost all of the substandard units are considered suitable for rehabilitation.

Housing Market Conditions

Population projections for New Albany show a need for almost 2,400 additional housing units between the years 1990 and 2000. Between 1990 and 1994, 1,035 new housing units were constructed in the city. New construction patterns show a preference for medium-sized, single-family units as opposed to smaller, multifamily units, suggesting that developers are trying to attract higher income homebuyers.

New Albany has a vacancy rate of 5.7 percent of its housing stock, which includes both rental units and units for sale. This rate is up 0.5 percent since 1980. Vacancy rates are highest in the inner city.

Affordable Housing Needs

Having a housing cost burden of more than 30 percent of income is the single greatest problem faced by low-income renters. Many pay more than 50 percent of their income for housing. Elderly renters experience the greatest cost burden.

Homeless Needs

Although city estimates are not available, approximately 120 families in Floyd County received some form of homeless assistance in 1993. About 50 families were sheltered. It can be assumed that most of these families reside in New Albany, which has the majority of Floyd County's population.

The city will continue to use a continuum-of-care model in the provision of homeless services. Emergency shelter is at one end of the continuum, with transitional housing in the middle and permanent housing at the other end of the continuum. Emergency shelter is coupled with assessment to ensure that homeless persons receive appropriate treatment.

Because problems of homelessness often cross municipal and State boundaries, the city has adopted a regional approach to dealing with the homeless. The following facilities and organizations in central-southern Indiana shelter and provide services to the region's homeless.

• The Haven House. Located in Jeffersonville, Indiana, Haven House has 60 beds for homeless individuals and families and also operates a transitional housing facility for up to 20 families in two-bedroom apartments.
• The Floyd County Youth Home. Located in New Albany, the Youth Home serves court-referred youth. It has the capacity to house 10 youth.
• Hedden House. This facility is located in New Albany and has eight beds serving women who are recovering alcoholics or drug abusers.
• St. Elizabeth's-Southern Indiana Home for Unwed Mothers. This facility serves up to 10 homeless pregnant women.

Public and Assisted Housing Needs

The New Albany Housing Authority (NAHA) owns and operates 1,085 public housing units in 10 developments. Three of those developments, with 365 units, are reserved for lower income elderly persons. In addition, there is a 40-unit public housing community in the Valley View subdivision, which is administered separately from NAHA in cooperation with the New Albany Redevelopment Commission.

There is an overall shortage of public housing as reflected by a waiting list of 334 persons. Eighty percent of those on the waiting list are single-parent households.

NAHA also administers 50 Section 8 certificates and vouchers. In February 1995 there were 40 households on a waiting list for the NAHA Section 8 program. NAHA recently applied for permission to administer an additional 50 Section 8 units.

The Indiana Family Social Services Administration also administers a Section 8 housing program. Although the current Section 8 stock includes 249 units, new apartment complexes will provide another 248 units.

Barriers to Affordable Housing

The ability to develop more quality affordable housing is hindered by the large average unit size found in the city, forcing smaller households to purchase more housing than they require. The large amount of substandard housing, which is primarily found in the lower- income inner city, also presents an obstacle to the provision of quality affordable housing.

Lead-Based Paint

The incidence of lead-based paint directly correlates to the age of the housing stock. It is estimated that 8,929 housing units in New Albany with lead-based paint hazards are occupied by lower income households. During the first 8 months of 1993, the Floyd County Health Department screened 460 children and found 36 with elevated blood-lead levels.

Other Issues

Special needs populations include: the severely mentally ill, persons with substance abuse problems, the developmentally disabled, the physically disabled, and persons with HIV/AIDS. Most have low incomes and need housing assistance, often with supportive services.

The Floyd County Health Department reported four new cases of HIV-positive persons in the first half of 1993, all considered to be in need of supportive housing.

Several individuals and agencies have expressed a need for supportive housing for the developmentally disabled. Parents are concerned about the time when they will be unable to care for their developmentally disabled children. Also, the supply of accessible rental units in the city is low. A recently completed study on the special requirements of this population identified existing problems with accessibility of housing units, as well as a lack of information on the availability of existing accessible units.

Community Development Needs

The community development needs vary by area. In the planning process, New Albany prepared the following list of its most pressing needs:

• Inner city residents have difficulties getting to public services and jobs.
• Recreation programs for the elderly may not meet future demand.
• Afterschool programs are not numerous enough to meet current demand.
• Portions of the inner city do not have access to recreational facilities.
• Infrastructure in and around industrial parks is inadequate for the traffic.
• Small, startup businesses are often not able to get public financing.
• Industrial park ground is scarce.
• Sidewalks in portions of the inner city are in hazardous condition.
• Drainage problems exist in portions of the inner city.

New Albany also examined the needs of particular areas in the city, as follows:

• The Lillian Emery Elementary School area. This area exhibits the greatest need for social services. Approximately 41 percent of households live in poverty, and 43 percent of renter households do not have an automobile.
• The S. Ellen Jones Elementary School area. This highly urbanized area adjacent to the central business district has a population of 4,795. The district has mostly blue-collar workers and experiences substantial turnover in its rental units and school enrollment. The city plans to improve sidewalks on Vincennes Street, East Main Street, and East Spring Street.
• The Silver Street Elementary School area. With a population of 5,261, this area in the eastern portion of the inner city holds 12 percent of New Albany's population. Poverty prevention programs are vital to this area, where 23 percent of children under the age of 18 live in poverty.
• The Fairmont Avenue Elementary School area. This older area has a population of 3,641. Poverty rates for children under age 18 and for adults over age 65 run at 14 percent. Of the area's population, 22 percent is under age 18, yet there are no parks or other recreational opportunities afforded in the vicinity.

Housing Priorities

New Albany has selected several housing objectives as high priority during the coming 5 years:

• Retain and increase affordable owner-occupied housing stock. The city will use CDBG and HOME Investment Partnership Program (HOME) funds to help rehabilitate the estimated 1,117 owner-occupied units in New Albany that are considered substandard; will provide infrastructure improvements to the Habitat for Humanity site; and will examine options for the privatization of public housing.
• Provide decent, safe, and affordable rental units for low-income households. The Redevelopment Commission has developed technical capacity for administration of a renter-occupied rehabilitation program funded with HOME and private investment dollars. The city will work to provide Section 8 or other rental assistance to qualified renters.
• Provide assistance to first-time homebuyers. New Albany will make a high priority of promoting downpayment assistance programs, homeownership counseling, and home inspection assistance programs. The city will encourage local lenders to administer first-time homebuyer programs.
• Prevent and alleviate homelessness in New Albany. The city will continue its regional and continuum-of-care approaches to serving the needs of the homeless and those at-risk of becoming homeless.
• Provide special needs populations with access to good quality supportive housing. New Albany will coordinate resources, use rehabilitation programs to provide accessible housing, and encourage developers to build accessible housing.
• Promote the alleviation of lead-based paint hazards. The city will develop technical capacity and will identify at-risk households during housing rehabilitation work.

Nonhousing Community Development Priorities

New Albany prioritized its economic and community development needs for the upcoming 5 years. High priorities are to:

• Promote the economic reintegration of the inner city. Efforts will counteract substantial disinvestment there.
• Improve the access of low-income persons to services and jobs and supportive services that encourage employment.
• Improve existing infrastructure in and around the industrial parks and develop additional industrial park space. Improvements will be made to sidewalks and traffic problems. Opportunities for additional industrial park development will be explored.
• Improve existing sidewalks and construct additional ones.
• Provide more financial assistance to small businesses and microenterprises.
• Eliminate drainage problems within the inner city.
• Provide locations that group non-profit organizations with government agencies throughout the city to provide easy access to services of all types.
• Increase the amount of available parkland.

Antipoverty Strategy

As part of its 5-year plan, the city will continue services that target the needs of those living in poverty. The city will encourage the development of microenterprises (defined as businesses with five or fewer employees owned and operated by lower income persons) through a Microenterprise Fund, which provides startup grants and loans.

Housing and Community Development Resources

To maximize its available resources for housing and community development, New Albany uses a variety of private and public resources, including:

• Habitat for Humanity. Recently, the local chapter of Habitat for Humanity has constructed 3 houses in New Albany and has acquired 11 vacant lots for future construction.
• Economic Development for a Growing Economy (EDGE). This State program offers income tax credits to businesses that produce new jobs. To receive the credits, the business must pay wages that are higher than the average rate for the county.
• Economic Development Income Tax (EDIT). This State program provides counties with an income tax revenue stream for economic development projects. In Floyd County the EDIT monies are split between the county and New Albany.
• Small Business Administration Urban Forestry Program. This program provides funding for urban forestry activities, including the removal and planting of trees. New Albany will continue to use this program.
• Tax Increment Financing (TIF). This local program allows for the financing of infrastructure through tax revenues raised from developments supported by that infrastructure. The city currently has three TIF districts in place.

Coordination of Strategic Plan

New Albany will encourage collaborative efforts between the city and Floyd County and among private and non-profit organizations that provide housing and social services. The New Albany Redevelopment Commission administers the city's housing and community development funds.

Description of Key Projects

During the upcoming year, New Albany will use slightly more than $1 million in CDBG funds, including $117,000 in program income, for projects that address the housing, social service, and infrastructure needs of the city. Key projects include:

• $100,000 for the development of three community service facilities in the inner city. During the next 5 years, the total estimated cost will be more than $1 million, with $500,000 coming from the CDBG program, $250,000 from the New Albany/Floyd County School Corporation, and $300,000 from social service organizations in the community.
• $80,000 for the development of parks at the S. Ellen Jones and Fairmont Elementary Schools.
• $25,000 for sidewalk improvements to Vincennes Street.
• $225,000 for flood drainage improvements in the Twin Oaks subdivision.
• $50,000 to fund the Homeownership Assistance program. This program includes downpayment assistance, homeownership counseling, and home inspection assistance for low-income persons.
• $175,000 for the Owner-Occupied Housing Rehabilitation Program. This program provides rehabilitation assistance funding to homeowners in New Albany.

Maps

MAP 1 depicts points of interest in the jurisdiction.

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).

Philip D. Roth
Economic Development/Housing Planner
New Albany Redevelopment Commission
City County Building, Room 325
New Albany, Indiana 47150
Phone: 812-948-5333
Fax: 812-948-1596