CITIZEN'S SUMMARY

Louisville's Consolidated Plan establishes a unified vision for community development action with broad goals to provide decent housing, a suitable livin g environment, and expanding economic opportunities. Produced under the direction of the city's Department of Finance and Budget and Department of Housing and Urban Development, the plan is the product of a cooperative effort by the city, representatives of area interest groups, surrounding jurisdictions, and citizens of the community. Nonprofit service providers and groups, homeless and affordable housing advocates, the 120-member Empowerment Zone Community Board, area agencies, and specific data sourc es were consulted in preparing the plan. The plan embraces strategies identified by the Empowerment Zone Board, which meets regularly to implement strategies articulated in the Empowerment Zone application, whether or not the community receives a Zone de signation.

Action Plan

The Consolidated Plan includes application for $19,756,000 of HOME, CDBG, and ESG funding for 47 different projects. Activities will include home construction and repair, acquisition and clearance of dilapidated structures, removal of architectural ba rriers, code enforcement, economic development loans, and a continuum of services for homeless persons.

Citizen Participation

In addition to citizen involvement in the Empowerment Zone Board, public housing tenant participation in the Comprehensive Grant Program, and input from organizations directly involved with programs for the homeless, efforts were made to broaden public participation in the development of this Consolidated Plan. A public hearing was held on September 20, 1994, preceded by notice in the Courier Journal. Approximately 500 individual notices were sent out and notices were posted in public housing develop ments.

COMMUNITY PROFILE

The population of the city of Louisville declined from 1980 to 1990, but not as sharply as in previous decades. The surrounding metropolitan area increased in population. In 1990, 269,063 persons lived in Louisville, with 683,599 in the surrounding me tropolitan area.

The city's 79,783 African Americans accounted for almost 30 percent of the total population of the city. Other minorities made up just over 1 percent of the population.

Median family income in 1990 was $25,805, which was only 77 percent of the MSA median family income. Almost 19 percent of all families had incomes below the poverty level. Among female-headed families with children under age 5, the poverty rate was 6 9 percent. Female-headed families made up 18.3 percent of the population.

HOUSING AND COMMUNITY
DEVELOPMENT NEEDS

Affordable Housing Needs

The city's greatest priority needs for housing are among very low-income renters and homeowners. In most cases, these needs stem from problems of affordability, such as renters paying more than 30 percent of their income for housing or elderly homeown ers burdened by high utility costs.

The number of owner households in Louisville dropped 5.8 percent from 1980 to 1990 to 54.9 percent of all housing units. The median value of owner-occupied units increased 64.7 percent, from $26,900 to $44,300, while the median contract rent increased 74.3 percent, from $140 to $244.

The total number of housing units in the city decreased 1.7 percent from 1980 to 1990, when the vacancy rate in 1990 was 8.8 percent. This reflects the increasing age of the housing stock in Louisville. From 1980 to 19 90, the number of single-family units declined by 5 percent and duplexes decreased by 11 percent. Conversely, there was a 6-percent increase in units in buildings with five or more dwelling units.

An estimated 12 percent of the single-family units (9,2 41) in Louisville in 1987 were substandard and 19 percent were marginally standard. In addition, 40 percent of multifamily structures (including 6,578 units) were classified as substandard; 11 percent were classified as marginally standard. The occupanc y rate for substandard units was 82.5 percent.

Populations With Special Needs

Approximately 133 adults and children with developmental disabilities are receiving residential services in the Louisville/Jefferson County area (not including people residing in public or private institutions, nursing homes, personal care homes, famil y care homes, or in the homes of parents or family members). More than 200 people are on waiting lists for residential services. Persons with developmental disabilities usually require intensive supports such as case management, payeeship, life skill tr aining, personal attendant care, transportation, and domestic skill training to maintain independent living.

Approximately 100 people with mental illness are supported in permanent residential placements and 127 persons per year receive some type of sho rt-term transitional housing. An estimated 6,000 people in Jefferson County have severe mental illness that could require residential/housing supports. Waiting lists for both transitional and permanent housing programs are long.

Homeless Needs

During 1993, 4,621 adults and 758 families in the Louisville metropolitan area used shelters for the homeless. The shelters reported turning away four families for every family they were able to serve. In addition, 206 families resided in transitional housing. The unsheltered homeless included both those that needed short-term emergency shelter and services and those that needed intensive, long-term shelter and support services. Minority families accounted for 65 percent of the homeless. This is a g rowing and significant trend. Several years ago white families accounted for 70 percent of the homeless families. In addition, 1,016 homeless youth ages 12 to 19 obtained emergency shelter in specialized shelters for youth.

The existing system of servic e to homeless persons includes programs focusing on prevention, outreach, assessment, emergency shelter, transitional housing, permanent housing, and followup and support services. It is provided by a network of public and private agencies, but barriers and gaps remain.Significant barriers include:

• Inadequate public funding.
• Lack of an understanding of the causes of and solutions to homelessness.
• Differing philosophies among agencies.
• Competition between providers.
• Lack of knowledge of available services.
• Inadequate training for staff and volunteers.
• Limited communication between agencies.

• Lack of availability of services at nontraditional times.
• Dispersed housing for seriously mentally ill persons.
• Lack of comprehensive family case management.
• Lack of crisis intervention services.
• Lack of services for pregnant, nonparenting adult women.

Public Housing Inventory

The Housing Authority of Louisville owns and manages 5,967 units of housing, of which 885 are vacant. The high vacancy rate is due to the Comprehensive Modernization underway at one public housing development and the conversion to homeownership at ano ther. In addition to public housing, there are an estimated 4,355 low-income units assisted through other HUD programs, as well as 2,095 Section 8 vouchers and certificates.

Lead-Based Paint Hazard

More than 73,000 housing units occupied by ver y low- and low-income households are estimated to contain lead-based paint. Rental units make up almost half of the units with lead problems. Over the last 5 years, approximately 95 percent of persons diagnosed with lead poisoning in Jefferson County ha ve resided within the city limits of Louisville.

Barriers to Affordable Housing

• A need for homelessness prevention programs.

• Lack of tax credit authorization legislation.

• Separate city and county governments limit coordination.

• Proliferation of small cities in Jefferson County reinforces the "not in my backyard" attitude.

• Inadequate funds to meet housing needs, especially for extremely low- and very low-income families.

• Lack of direct linkage between housing providers and social service providers.

• Matching funds requirements are a growing problem for participation, especially for nonprofits.

• Inadequate funds for social services.

Community Development Needs

A number of community planning initiatives have begun, includ ing Cornerstone 2020, the Louisville/Jefferson County Comprehensive Land Use Plan, and the Regional Economic Development Strategy. Cornerstone 2020, a process for rewriting Louisville's comprehensive land use plan, began in the summer of 1993 when repres entatives from the city of Louisville, Jefferson County, the Chamber of Commerce, and other organizations came together to share their views on how the community should look in the year 2020. Cornerstone 2020 has since launched a broad-based community in volvement process and plans to complete its work over the next 2 years. Among the priority needs identified by the Empowerment Zone Community Board are:

Jobs

• A full complement of neighborhood services and businesses owned by minorities and residents and nurtured through microenterprise loans and innovations in financing.

• A skilled workforce with access to jobs both within the Empowerment Zone and throughout the broader economic region.

• Work training programs tailored to the needs of major manufacturers in the region.

Neighborhoods

• Expansion of police patrols and the development of community-oriented policing.

• Development pursued under a strategic plan that targets critical sites and focuses on the big picture rather than taking a piecemeal approach.

• Reduced density of public housing and more scattered-site housing.

Human Services

• A more responsive health and human services network.

• Welfare-to-work programs and a transformed welfare system that serves as a support and transition system rather than a way of life.

• High quality education and training opportunities for children including youth apprenticeships, community employment, and resource centers.

HOUSING AND COMMUNITY DEVELOPMENT STRATEGIC PLAN

The city of Louisville has developed a mission-driven approach to neighborhood redevelopment, rather than the program-driven approach used in the past. The mission-driven process has established and emphasized the following guiding principles:

• Residents and businesses must be empowered to fully participate in and direct a neighborhood development strategy.

• Partnerships are a key element of success.

• Funds must be targeted and coordinated.

• A detailed, proactive neighborhood development strategy must be developed.

• A holistic approach must be undertaken, one that integrates the various building blocks of neighborhood development: affordable housing, a mix of inc omes, neighborhood-based businesses, employment opportunities, public safety, urban design at a human and neighborhood scale, education recreational opportunities, and a strong sense of place.

• Barriers to redevelopment that do not exist in other areas must be reduced or eliminated.

• The public sector's role is to help stabilize the neighborhood but the strategy should become self-sustaining as a result.

Louisville's neighborhood development strategy continues and accelerates efforts already made in three Louisville neighborhoods: Russell, Parkland, and Smoketown; a fourth area will be identified shortly. The City will combine resources from public, p rivate, and not-for-profit entities dedicated to the provision of affordable housing for low-, very low-, and extremely low-income households. An integrated approach is being pursued with many successful projects underway or completed.

The U.S. Depart ment of Housing and Urban Development is the primary source of funds used by the city in its Housing and Community Development Program. Starting in 1995, the city estimates that the funds received for the next 5 years from HUD and program income will be as follows: Community Development Block Grant, $65,000,000; HOME Partnership, 7,500,00 0; Emergency Shelter Grant, 2,000,000; Program Income, 6,000,000; Comp Grant (Housing Authority), 78,570,890; and Section 8 Vouchers and Certificates, 44,015,000. The funds total $203,085,890.

Community development partners in Louisville a re vigorously pursuing the creation of permanent, self-sustaining community and economic development corporations and institutions. These include a community development bank and nonprofit subsidiaries whose mission is to support microenterprises and othe r developments.

Housing Priorities

Within that neighborhood redevelopment strategy, Louisville's housing priorities seek to promote a balance between Kentucky's historical housing preference for homeownership and the affordable rental housing that is desperately needed. Priorities also reflect the critical need for support services to be attached to housing programs for special populations such as the elderly, homeless, and mentally or physically disabled.

The city's housing priorities fall under two broad categories:

1. To expand the supply of safe, decent, sanitary, and affordable housing for low- and very low-income families (Production).

2. To prevent homelessness by preserving the existing housing stock (Prevention/Preservation).

Urban Renewal

The city will continue to implement its Urban Renewal Plan for the Russell area. This area has been officially designated as blighted by the Louisville Board of Alderman. There are many vacant lots and deteriorating structure s in the area. In order to alleviate these conditions and to prevent further deterioration, the city will acquire property, relocate affected residents and businesses, and raze structures that cannot be salvaged. The city, through other programs and inc entives to investors, will encourage redevelopment. Between 50 and 75 parcels of land will be acquired for future development. Demolition of 20-25 dilapidated structures will be necessary. Approximately 5-10 businesses and 25 households will be relocate d.

The Smoketown/Shelby Park area has been targeted for major redevelopment. The city's Department of Housing and Urban Development will undertake housing rehabilitation and construction projects along with activities such as public improvements and econ omic development. Several strategies suggested in Louisville's Empowerment Zone application will be applied to the neighborhood's development. For-profit and nonprofit developers plan to rehabilitate and construct housing. Private developers will build 100-200 new single family units over 5 years. These privately funded units will serve low- and moderate-income families.

The city will assist in the revitalization of the Parkland Urban Renewal area by continuing to remedy conditions that impair the economic value of the area. Removal of contaminated soil, site preparation, and public improvements will be made in the ar ea in order to attract business investment. This will be coupled with economic development lending programs to induce investment.

Homeless Strategy

Louisville's homeless strategy proposes a continuum of care building on the strengths of the existing system and filling in identified gaps in service. Louisville's Homeless Coalition represents the nonprofit, sectarian, and public sectors and is comm itted to the common goals of preventing homelessness and moving those that are homeless from dependency to appropriate housing. Louisville plans to improve assistance to the homeless by strengthening existing activities such as prevention, outreach, asse ssment, emergency shelter, transitional support services, and permanent housing.

Antipoverty Strategy

Housing and employment services are the chief concerns for poor households in Louisville. The rate of poverty is rising more quickly for children under age 8 than for any other age group. The city of Louisville is committed to reducing the number of h ouseholds in its jurisdiction with incomes below the poverty line. The city has sought to identify several public and nonprofit service providers that administer antipoverty programs; describe the integration of social services and housing activities; as sess the extent to which housing policies and programs might reduce the number of the poor; and evaluate the barriers preventing households from overcoming poverty. The city of Louisville supports a number of city, county, and nonprofit agencies that pro vide programs and services for impoverished households within its jurisdiction.

Coordination of Plan

At least six local agencies and programs already integrate social service and housing activities to serve low-income populations in Louisville: Housing and Neighborhood Strategies, City of Louisville Housing and Urban Development Department, Community Coordinated Child Care, Jefferson County Department of Human Services, Metro Human Needs Alliance, and the Louisville/Jefferson County Community Action Agency. In addition to integration of activities, each of these agencies is noted for actively pursuin g interagency coordination within the private, public, and nonprofit sectors.

ONE-YEAR ACTION PLAN

The action plan proposes to use almost $20 million from three Federal grant programs, funds recaptured through "program income," and funds from local sources. The city estimates 1995 funding levels of $16,637,000 from the Community Development Block Grant (CDBG), $2,658,000 from the HOME Investment Partnership Program, and $461,000 from the Emergency Shelter Grants Program. Of the 47 programs listed, more than 70 percent are targeted to a particular site, neighborhood, or group of neighborhoods. Roughly half are continuations of previous programs and activities.

CDBG funds will be spent on acquisition of dilapidated structures and abandoned buildings, improvement of public facilities, clearance of deteriorated housing stock, provision of public services to needy populations, relocation of persons displaced by city CDBG activities, removal of architectural barriers for the elderly or disabled, rehabilitation of housing, enforcement of city codes to stimulate business and create/preserve employment opportunities. Some of the projects include:

• $750,000 to continue the city's Sidewalk Replacement Program in low- and moderate-income census tracts, which will make them safer places to live and increase property values.

• $25,000 for installation of audible pedestrian traffic signals for the sight-impaired.

• $300,000 for the continued renovation of a youth training center, which will provide the community's youth with a safe, secure, and quiet environment in which to operate.

• $1,200,000 to continue the city's Homestead Program, which allows first-time homebuyers to acquire designated vacant homes and receive low-interest loans to rehabilitate the property.

• $100,000 to provide below-market-rate financing for small retail or service companies in the targeted neighborhood to obtain fixed assets and working capital.

• $562,500 to provide 100-percent financing for construction of approximately 12 single-family homes per year on vacant lots in target neighborhoods.

• $1,415,250 for the city's Home Repair Program to provide mixed-rate loans for the rehabilitation of about 80 single-family homes per year.

• $450,000 for the city's Investor Rehab Program to provide investors with mixed-rate loans for the rehabilitation of vacant str uctures or occupied rental units.

Emergency Shelter funds will be spent on homeless shelter operations; homelessness prevention programs; transitional housing; and employment, health care, substance abuse, mental health, and legal aid services for the homeless. Some of the projects include:

• $70,000 for the Wayside Christian Mission to purchase equipment, pay for utilities and maintenance, and provide counseling services.

• $60,000 for the Metro Human Needs Alliance to provide case manage ment for families at risk of becoming homeless.

• $16,000 for St. John Center to provide services for long-term residential treatment of homeless clients with chronic substance abuse and mental illness problems.

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, and proposed HUD funded projects.

MAP 6 depicts Neighborhood Segments and proposed HUD funded projects.

MAP 7 depicts Neighborhood Segments and streets with proposed HUD funded projects.

MAP 8 depicts Neighborhood Segments and streets with proposed HUD funded projects.

MAP 9 depicts Neighborhood Segments and streets with proposed HUD funded projects.

Steve Ward, Administrator of Grants
Department of Finance and Budget
City of Louisville
601 West Broadway
Louisville, Kentucky 40202
Phone: 502/574-3541
Fax: 502/574-3033
Internet: SteveWard@LouKy.iglou.com