The Holyoke-Chicopee Consortium is made up of the Community Development Block Grant Entitlement communities of Holyoke and Chicopee, Massachusetts. Geographically, the jurisdiction is located in the western part of the state, in the northern section of Hampden Count and is bisected by the Connecticut River. Holyoke was the first planned city in the United States and is the birthplace of Volleyball. Westover Air Force Base, located in Chicopee, is the key National Guard C-30A Transport facility for the Northeast United States.

Action Plan

The Holyoke-Chicopee Consortium Consolidated Plan presents a strategy for housing development and improvement within the jurisdiction. The One-Year Action plan includes housing activities valued at approximately $2.8 million, of which $986,000 is the Consortium's FY95 HOME allocation , and approximately $1.8 million is from each city's individual Community Development Block Grant (CDBG) entitlement funds plus program income. CDBG used for non-housing community development activities will be discussed in separate summaries from the individual entitlement cities.

Citizen Participation

The Holyoke-Chicopee Consortium conducted several public hearings in each city. The Consortium also conducted citizen and agency surveys on housing and community development needs within the jurisdiction. Citizen survey forms were available in both Spanish and English.

In the Consortium, 52 agencies, representing housing developers, public service agencies, homeless providers, economic development agencies, municipal departments, neighborhood groups, the religious community and the banking community, were asked to prioritize housing and other community development categories based on their perspective of needs. The agencies were also asked to prioritize specific activities in the areas of housing, public services, infrastructure improvements, public facility improvement and economic development. Holyoke's citizen survey focussed exclusively on housing and requested citizen views on the needs of various types of housing activities for owners and renters. Chicopee's citizen survey included both housing and non-housing community development issues. Over 300 citizens returned surveys and their views were considered in the formulation of this plan. The responses from these surveys provided insight into the public's view of the priority needs of the jurisdiction, as well as an assessment of how housing and service providers have been meeting those needs.

Conditions

There has been some loss and deterioration of rental housing stock in the jurisdiction as a result of the region's general economic downturn. Properties financed during the real estate boom of the mid-1980's are now struggling to carry high debt and operating expenses. These losses are more apparent in Holyoke than in Chicopee, because the number of large apartment blocks in Holyoke is greater.

Speculation during the real estate boom years and high debt coupled with lower property values, tight financial markets and an increasing rental vacancy rate have lead to building abandonment and bank foreclosure. Many of these buildings are now in the hands of a bank, the Resolution Trust Corporation (RTC) or the Federal Deposit Insurance Corporation (FDIC). Potential lead paint hazards, with its accompanying owner liability and high cost of its removal, have also contributed to property abandonment. Some of these buildings have been boarded while awaiting a determination on their fate. It is unrealistic to assume that all these buildings can or should be saved or that the resources will be available to do so.

Sales of owner occupied units are beginning to trend upward from the substantial drop in housing sales suffered in the late 1980's. The increase in home sales can be attributed to depressed prices and attractive mortgage rates which allow less affluent families to enter the homeownership market. Yet, household income, bank down payment requirements, and credit history have kept the door closed for many aspiring to be homeowners.

Housing Needs

Of the 15,871 households in Holyoke, 59.6% are renters and 40.4% are homeowners. Approximately 6,112 households in Holyoke or almost 39% of all households have incomes below 50% MFI and an additional 2,422 households have incomes between 50% and 80% MFI. Thus, 8,534 households, or nearly 54% of all households are considered to be of low or very low income in Holyoke. Also, 4,781 (50.5%) of all renters and 1,055 (16.5%) of all homeowners are experiencing housing problems, much of which is related to the cost of housing.

Nearly 56% of all renters (5,193) are in the very low income category (0-50% MFI) and an additional 1,612 renters (17%) are considered low income (51-80% MFI). Within the universe of renters in Holyoke, 24.6% are elderly, 42.5% are small family and 13.4% are large family. Almost 14% of owners are considered to be in the 0-50% MFI category and an additional 13% have incomes between 51% and 80% MFI. Nearly three quarters of the very low income homeowners are elderly.

Nearly 45% of all renter households and just over 15% of all owner households are paying more than 30% of their income for housing, and 23% of renters and nearly 6% of owners are paying over 50% of their income for housing. Overcrowding will be discussed under Homeless Needs.

Of the 22,536 households in Chicopee, 41% are renters and 59% are homeowners. Approximately, 5,798 households or nearly 26% of all households have incomes below 50% MFI and an additional 4,020 households have incomes between 50% and 80% MFI. Thus, 9,818, or almost 44% of all households are considered to be of low or very low income in Chicopee. Also, 3,179 (34%) of all renters and 2,373 (18%) of all homeowners are experiencing housing problems.

Approximately 37% of all renters (3,477) are in the very low income category (0-50% MFI) and an additional 2,056 renters (22%) are considered low income (51%-80% MFI). Within the universe of renters in Chicopee, 27% are elderly, 39.6% are small family and 6.7% are large family. Almost 18% of owners are considered to be in the 0-50% MFI category and an additional 15% have incomes between 51% and 80% MFI. Over three quarters of very low income homeowners are elderly.

Nearly 31% of all renters and approximately 14% of all owners are paying more than 30% of their income for housing, and almost 14% of renters and nearly 5% of owners are paying over 50% of their income for housing.

Housing Market Conditions

Over the past several years, Holyoke has had to contend with the abandonment of many multi-family rental buildings. This phenomenon is especially prevalent in the Flats, South Holyoke, Churchill and Downtown neighborhoods (Census Tracts 8114-8117) where a recent survey showed 633 residential units in 92 buildings were vacant and abandoned. The largest number of these buildings are concentrated in the Churchill neighborhood.

Modest single, two and three units wood structures dominate many of Chicopee's distinct and strongly independent neighborhoods. Over two-thirds of all Chicopee's housing units are in structures of four units or less. There are a number of larger, older multi-family blocks along major thoroughfares which are concentrated in the Willimansett, Chicopee Falls, and Chicopee Center neighborhoods. The Willimansett community has the largest percentage of families living below the poverty level.

Affordable Housing Needs

Over the past few years, Holyoke has targeted much of its limited federal and state housing resources to the rehabilitation of abandoned multi-family properties. Yet, despite the apparent need for more affordable rental units, as the data suggests, the rental vacancy rate of occupiable units in 1990 was 7.1%. Anecdotal evidence suggests that the rental vacancy rate for on-market units continues to rise, especially in older multi-family structures.

The apparent paradox suggests that many households just simply cannot afford even below market rents, although such apartments are available. Without some sort of rental assistance, families are doubling up or are facing the threat of eviction. Yet, rental assistance mechanisms have changed, especially on the state level, and over the past few years, funding for rental assistance has not been increased enough on either the federal or state levels to provide for additional program service.

Thus, there appears the need to provide rental units at a cost that very low income families can afford, without depending on additional or increased subsidies. At the same time, it is necessary to prevent buildings from falling into disrepair, abandonment or foreclosure because of deficient cash flow. A realistic means to combine lower rents with financial viability is to provide a proportionately larger amount of non-debt rehabilitation funding per building. That proportionate increase of funding per building, however, will mean that fewer projects can be accommodated.

Very little new rental housing has been produced in Chicopee in the last few years due to current conditions in the financing community combined with the lack of federal and state housing resources. Yet, a rental occupancy study by the Colebrook Group indicated that between June 1989 and June 1990, the vacancy rate rose from 3.4% to 6.8%. According to the 1990 census, the vacancy rate was 4.5%

With a substantial low and very low income population, and with the rate of new household formation exceeding the rate of overall population growth, there appears to be a demand for the creation of more affordable rental housing opportunities. Agencies which serve lower income families report that new household formation and the lack of new rental assistance resources have resulted in a situation where, even though there are available apartments and rents have moderated, there is an increasing number of households who simply cannot afford to rent an apartment on their own. More families are doubling up, causing overcrowding, and putting some families at risk of homelessness. It is important that the Consortium encourage programs which will preserve and improve its housing stock and make more affordable the existing private rental housing stock so that it may better serve those most in need.

With CDBG, Holyoke has pursued several home-ownership opportunity activities for lower income households. Low priced condominiums and affordable duplexes, with their built-in rental income, have been very successful. A local Land Trust has experienced success with single family homes. However, past performance of all programs, including the limited equity land trust, suggests that traditional home ownership models are viable only for lower income residents when income ranges between 65% and 80% of the median household income. Generally, bank requirements for mortgages, downpayments, and/or credit history preclude participation in home-ownership activities by very low income families.

Despite a continuous, modest reduction in the median sale price of a house or condominium in Chicopee over the last few years, the number of sales is still below that of the late-1980's boom. Although the median sale price for a home in June 1993 was down to $100,000, a drop of about $6,000 from 1990 levels, the amount of income needed to support a home purchase at median price is still considerably higher than the income of many city households, especially prospective first time buyers.

The median condominium sale price of $72,787 for June 1993 is within the reach of many more prospective homeowners, although Chicopee, which has a strong tradition of families aspiring to own single family homes in traditional neighborhoods, the condominium market is somewhat limited. The development of 264 units at Ridgewood Village, involving the rehabilitation of former military housing at Westover Air Force Base, will increase the number of condominium units which will be available at affordable prices. In view of the opportunity presented by these new units, the softer real estate market and the recent mortgage rates, it may be possible for more families to bridge the affordability gap to homeownership.

Homeless Needs

Because of the regional and transient nature of homelessness, it is difficult to identify exact numbers of homeless in the Holyoke-Chicopee area. The homeless shelters serving the jurisdiction are all located in Holyoke, but, according to shelter directors, many persons and families using the shelters come from outside of the Holyoke-Chicopee area. Other key difficulties in identifying the exact number of homeless are the reluctance of some households to disclose their situation, either through fear of stigmatization or because they are currently "doubling up" with others or, at the other end of the spectrum, the exaggeration of circumstances in the hope of receiving immediate aid.

The number of unsheltered homeless is also difficult to assess for this population is extremely mobile and thus often deemed "invisible." Agency directors estimate, however, that the unsheltered population may be increasing, especially for those with alcohol or drug related problems. The unsheltered homeless become more evident in winter when they seek more conventional shelter from the cold.

Shelter directors nearly unanimously stated that there is a need for a shelter for single women in the area. They also suggested additional family shelter space for those not eligible for the Dept. of Public Welfare's (DPW) emergency assistance. Shelter directors also indicated that the number of families seeking shelter has remained relatively constant over the past several years, while the number of individuals, especially Latinos, has increased. The increase in individuals was attributed to the economy and the decreasing number of jobs available to the unskilled.

Although the number of homeless in shelters has remained stable generally, the type of client has been changing from the first time homeless to the "seasoned veteran" with a history of tenant/landlord problems and/or financial or legal problems. This situation has increased the burden to service providers. All shelters have had to turn away clients, but the indication was that many of the requests came from other shelters or agencies outside the jurisdiction, sometimes as far away as Cape Cod, looking for shelter beds.

Service needs for the homeless were more generalized such as a day service center for the homeless which would provide job information, an apartment information bank and amenities such as phones, showers and laundry facilities. Other service needs included more transitional housing where clients could establish a good tenancy record, life skills training, and more shelter workers and counsellors, especially those sensitive to the Latino or single individual homeless.

Public and Assisted Housing Needs

Holyoke Public Housing:

*Both Elderly and Family reside in development

The Holyoke Housing Authority owned developments serve 1,171 families. Of these, 38% are elderly, 58% are Hispanic and 70% have incomes under $10,000 per year.

Chicopee Public Housing:

*Both Elderly and Family reside in development

According to the respective Housing Authorities, continued modernization of older public housing complexes remains a priority. However, Congress has recently decreased funds for this priority. Additionally, it has become apparent that some families simply cannot afford even below market rents, although such apartments are available, and thus need rental assistance to secure housing. Again, funding for rental assistance, on both the state and federal level, has been decreased.

Barriers to Affordable Housing

The City of Holyoke's current public policies, land use controls, zoning ordinances and building codes encourage and are responsive to affordable housing needs and its related development. There are no proposed strategies, ordinances or policies before City Council which would impede affordable housing efforts. (Information provided by the Holyoke Planning Department). Previous steps to encourage affordable housing development in Chicopee include the provision of affordable in-fill housing through a special permit process and an accessory apartment ordinance within the Chicopee Zoning Ordinances. No additional actions are currently before the Board of Aldermen.

Fair Housing

The Consortium will continue to review and refine its policies, rules and regulations in order to remove any negative effects of public policy on affordable housing or fair housing initiatives. The jurisdiction will complete an analysis of impediments to fair housing choice. The City of Holyoke may incorporate its analysis within a Fair Housing Plan as part of a proposed negotiated settlement of Olga Ramos, et al v. Ernest Proulx, et al, United States District Court, District of Massachusetts, Western Division, C.A. No. 82-0422-F.

Lead-Based Paint

Like many older communities, Holyoke and Chicopee have had to confront the pervasiveness of lead paint in their housing stock and the dangers it presents to the health of their children. Older rental properties occupied by low income families are known to be at the highest risk for lead paint poisoning problems. The Consortium's strategy to address its lead paint problems is to participate in a regional lead paint abatement program with the cities of Springfield and Westfield. Together, the communities received approximately $3.1M for lead paint abatement and community education. Abatement will be the primary activity designed to abate lead paint hazards in approximately 300 units within the four cities. The abatement program, which is got underway in January 1995 consists of several activities, including inspection, lab testing, and actual abatement, as well as child health tracking and follow-up, owner financing, tenant relocation and data collection. Community education will be provided through a contract with a local community service provider. The four cities had expected to apply for additional federal assistance in the next federal fiscal year to continue this effort. However, it appears likely that the Lead Based Paint Hazard Abatement program will fall victim to cost cutting measures.

The Consortium will continue to seek coordination of public and private efforts to integrate the prevention of lead poisoning into existing housing activities. Currently, HOME and CDBG housing rehab projects are required to incorporate lead paint hazard evaluation and reduction activities.

Community Development Needs

To be discussed by Holyoke and Chicopee separately under Strategy Summary for Community Development Block Grant and Non-Housing Community Development Activities.

Coordination

The Offices of Community Development in Holyoke and Chicopee have been designated as the lead agencies for the coordination and submission of the Consolidated Plan for the Holyoke-Chicopee Consortium. The OCD's have worked together before on the jurisdiction's Comprehensive Housing Affordability Strategy and will continue to seek new opportunities for collaboration and collective problem-solving.

The process employed in the development of this document has strengthened working relationships and opened new lines of communication between the Consortium and the many housing providers and public service agencies operating within its borders. The Consortium will maintain ties with many of these agencies through contractual agreements to carry out specific activities. In other cases, and especially in regard to private and other governmental providers, the Consortium will make concerted efforts to keep abreast of the changing needs of the homeless and special needs populations. The Consortium will also continue its cooperative relationship with its respective public housing authorities.

Vision for Change

The Consortium strongly believes that the successful implementation of the strategies herein depends upon cooperation among the governmental and private entities, not only to better coordinate housing initiatives and special service activities within the jurisdiction, but also to become more efficient and responsive to the needs of the populations to be served. The coordination of efforts, especially among agencies supported by these limited federal resources, will ultimately be the key to success. The Consortium expects that only through the unified commitment of all agencies to work together, can it bring about effective urban rebirth.

Housing and Community Development Objectives

The Consortium's 5-year Housing Objective's focus on increasing the supply of affordable rental units, increasing the opportunities of low/moderate income persons to become homeowners and improving the existing owner-occupied housing stock through rehabilitation assistance. Community Development Objectives will be discussed by Holyoke and Chicopee separately under Strategy Summary for Community Development Block Grant and Non-Housing Community Development Activities and will include public services to serve the homeless and promote self-sufficiency for the homeless, public housing residents and persons with special needs.

Housing Priorities

1. Preserve and improve the existing rental housing stock by moderate or substantial rehabilitation of substandard properties. Impact goal: 110 units
2. Increase opportunities for homeownership for low and moderate income persons. Impact goal: 50 units
3. Preserve and improve the existing owner-occupied housing stock by moderate rehabilitation through home improvement programs. Impact goal: 100 units
4. Increase services available to public housing residents and persons with special needs in order to promote self-sufficiency.
5. Coordinate the efforts and delivery system of existing homeless service providers to more effectively assist the homeless.

Non-Housing Community Development Priorities

Non-Housing Community Development Priorities will be discussed by Holyoke and Chicopee separately under Strategy Summary for Community Development Block Grant and Non-Housing Community Development Activities.

Anti-Poverty Strategy

The goal of the Holyoke-Chicopee Consortium is to provide the groundwork for families to lift themselves out of poverty. By providing affordable housing opportunities and supporting employment training, job matching, literacy, microenterprise business assistance, and job creation programs, as well as ancillary assistance such as day care, the Consortium seeks to provide the tools with which families can rise out of poverty and participate n the American dream.

The Consortium will work closely with existing service providers in this effort. The Holyoke/Chicopee area has a number of non-profit and social service groups that are mandated to combat poverty and other socio-economic deprivation through opportunity for development, employment, and decent, dignified living for all people.

The goals, programs and policies of the jurisdiction for producing and preserving affordable housing will be coordinated with the efforts of these programs and services for the poor and through on-going efforts to integrate social service with housing and other community development activities.

Housing and Community Development Resources

The Consortium will continue to allocate its HOME funds and a portion of each city's CDBG funds to address housing priorities. The Consortium will also seek to compliment these resources with other funding sources in order to maximize the resulting benefits and accomplishments. In particular, the Consortium will seek to coordinate projects with State Executive Office of Communities and Development funding sources, including, but not limited to, Housing Stabilization Funds, and State HOME funds, as well as with quasi-public and private sources such as the Massachusetts Housing Partnership, the Massachusetts Land Bank, the Community Economic Development Assistance Corporation and area banks and financial institutions.

Coordination of Strategic Plan

The Entitlement cities of Holyoke and Chicopee, as a Consortium, will continue their collaboration to realize these housing objectives. Through its proposal processes for allocating federal funding, the Consortium will balance requests with objectives, available funding and the extent to which objectives are or may be met through other resources, as well as how the proposed project coordinates with other housing and community development activities.

The Consortium also recognizes that it faces many challenges in its efforts to reduce the number of families in poverty and strengthen the fabric of its urban neighborhoods. The fulfillment of this plan relies upon the cooperation and communication among government officials, neighborhood groups, residents, implementing agencies and funding agencies. By encouraging teamwork and interaction, the Consortium seeks to bring together a unified commitment to the future.

Description of Key Projects

The housing projects to be undertaken by the Consortium include rehabilitation of rental properties, various first-time homebuyer initiatives and homeowner rehab. Key project types include:

• $981,802 for rehabilitation of multi-family rental units.
• $550,240 for rehabilitation of existing units for first-time homebuyers.
• $352,000 for new construction of units for first-time homebuyers.
• $197,486 for downpayment and closing cost assistance for first time homebuyers.
• $53,300 for homeowner rehab.

In addition, the Consortium will use a portion of each city's CDBG Public Service allocation for housing services. In the aggregate, $61,500 will be used for homeless shelter operations and services for the homeless and $14,000 will be used for first-time homebuyer and fair housing counselling.

Locations

Most of the physical rehabilitation and housing construction activities will take place in the lower income areas known as the Flats, South Holyoke, Churchill and Downtown neighborhoods in Holyoke and Chicopee Falls and Willimansett neighborhoods in Chicopee. Homeowner rehab and downpayment/closing cost assistance can take place anywhere in the jurisdiction because these activities are based on the income eligibility of the homeowner or homebuyer. Public services are available to all lower income households.

Lead Agencies

The Holyoke and Chicopee Offices for Community Development (OCD) act as the lead agencies in administering all HOME and CDBG housing activities. The OCD's intend to contract with various non-profit housing providers to carry out these projects, including, but not limited to, Olde Holyoke Development Corporation, Nueva Esperanza, Inc., Valley Opportunity Council Inc., Holyoke Community Land Trust, Inc. and the Housing Allowance Project, Inc. Housing and homeless services will be carried out by the Housing Allowance Project, Inc., the Housing Discrimination Project, Providence Ministries for the Needy, Inc., Valley Opportunity Council, Inc., Womanshelter/Companeras and the Chicopee Emergency Food and Fuel, Inc.

Housing Goals

The housing goals of the Holyoke-Chicopee Consortium in this first year are to increase the supply of affordable rental housing by 64 units, rehab 16 existing units for first-time homebuyers, construct three duplexes for first-time buyers, assist 25 first-time homebuyers with downpayment and closing costs, assist 30 lower income homeowners with housing rehabilitation, provide shelter for 75 homeless families or individuals and provide housing and/or homeless services to 500 at-risk households.

Street level maps of neighborhoods and projects will be provided in the individual summaries of each city's Community Development Block Grant summary.

Maps

MAP 1 depicts points of interest, low-moderate income areas, and minority concentration levels.

MAP 2 depicts points of interest, low-moderate income areas, and unemployment levels.

MAP 3 depicts neighborhood streets and proposed HUD funded projects.