U.S. Department of Housing and Urban Development
Office of Community Planning and Development

Consolidated Plan Contact


New Albany, Indiana, is in Floyd County on the Ohio River, just west of Louisville, Kentucky. New Albany has a population of 36,322. Because of the Ohio River and the area's abundance of coal and wood, steamboat construction dominated New Albany's economy in the early- to mid-1800s, and glass and iron manufacturing came to prominence in the latter half of the century. In the early part of this century, the economic emphasis shifted to plywood and veneer manufacturing, an industry that continues to be important in New Albany's economy.

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.

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:

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


Housing Priorities

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

Nonhousing Community Development Priorities

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

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:

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:


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).

To comment on New Albany's Consolidated Plan, please contact:

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

Return to Indiana's Consolidated Plans.