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


Consolidated Plan Contact

CITIZEN'S SUMMARY

The City of Ann Arbor is located in the southeast portion of Michigan's lower peninsula and is home of the University of Michigan. Ann Arbor is the largest city as well as the seat of government in Washtenaw County.

Ann Arbor's Consolidated Strategy and Plan is designed to open opportunities for collaboration and collective problem solving by public and private agencies, other governmental units, the Ann Arbor Housing Commission, City departments and other interested parties. The purpose of the City's Plan is: To assess the housing and community development needs of extremely low-income, very low-income, low-income and moderate-income households in the community, and project these needs over a five year period; To assess the extent of homelessness, the need for facilities and supportive housing needs of homeless persons and others with special needs; To detail the housing inventory and market conditions, including barriers to affordable housing; To formulate a comprehensive strategy relating to housing, community development and supportive services within the community; To establish priorities for assistance for a five-year period which relate to the housing and community development needs; To identify federal, state and local resources anticipated to be available to meet the needs; To establish an annual action plan which outlines the intended uses of resources.

Action Plan

The City of Ann Arbor expects to receive $1,499,000 in FY 1995-96 Community Development Block Grant program funds and the City's program is designed to reflect the primary objective of developing a viable urban community, including decent housing, suitable living environment and expanding economic opportunities principally for persons of low and moderate income. The City has identified the following areas for CDBG program activities:

The City also expects to receive $535,000 in FY 1995-96 from HUD for HOME Program activities. The acquisition/rehabilitation component is designed to provide financial assistance in the amount of $454,750 to rental property owners, non-profit entities and others in order to maintain and provide for safe, decent, and energy efficient rental housing for lower-income households; to assist housing which serves individuals with special residential needs; and to increase and improve the utilization of the community's housing stock. In addition, $26,750 will be allocated for CHDO administration and $53,500 will be allocated for program administration.

Citizen Participation

The City designed a process which encourages citizen participation and diverse community review while satisfying HUD requirements. In order to assure citizen input, a mailing was sent to targeted neighborhood groups, City Council, CDBG Executive Committee, Housing Policy Board, Planning Commission, Housing Commission, Downtown Development Authority, local non-profit agencies and other interested groups which included information about the Consolidated Plan and process, a schedule and a community needs survey. Presentations were also made describing the Consolidated Strategy and Plan and community needs were discussed at a series of six community meetings. A Public Hearing on needs was held on November 14, 1994 in the Washtenaw County Commission Board Room. The hearing was advertised in the Ann Arbor News and in public service announcements broadcast on the local Community Television Network. A Community Needs Survey was also included in the December Ann Arbor Observer insert "For The People" which reached most Ann Arbor households.

Upon completion of the draft PLAN, a notice of availability for public review was published in the Ann Arbor News and copies of the complete draft document were placed on reserve at six locations throughout the City, including the public library. During the thirty (30) day comment period, eight (8) public meetings and one public hearing were held before various groups and final approval was received by City Council on May 1, 1995. All comments were summarized and the final document was submitted to the U.S. Department of Housing and Urban Development on May 15, 1995.


COMMUNITY PROFILE

According to the 1990 U.S. Census, the City of Ann Arbor population was 109,608 reflecting a slight 2% growth from 1980. Of the total population, 89,841 or 82% are White, 9,905 or 9% are African-American, 8,424 or 7.7% are Asian, and 2,827 or 2.6% are Hispanic. The Census reports the median family income based on 1989 income data was $47,307 while the 1995 median family income, estimated by HUD, is $53,900. According to 1990 Census figures, 16.1% of all persons are below poverty levels, while 8.4% of families with children are below poverty levels. A disturbing indicator however is that 37.3% of female headed households with children under 5 are below the poverty level. While 28% of the City's total households are very low income (<50% of median income), 25% of the White households are very low-income, 42% of the African-American households are very low-income, 41% of the Hispanic households are very low-income and 51% of the Asian households are very low-income. The City occupies 28 square miles and because it is bound by State Highway 14, U.S. Highway 23 and Interstate Highway 94, the City has a maximum expected size of 31.55 acres. Ann Arbor had 44,010 dwelling units in 1990 and 45,000 by 1995. Of this total, 43% are owner-occupied and almost 57% are renter occupied. This is a significant difference from the national statistics reflecting 64% owner households and 36% renter households.


HOUSING AND COMMUNITY
DEVELOPMENT NEEDS

Conditions

Housing Needs

The City's housing costs are high with a disproportionate impact on very low-income renters particularly large families. According to 1990 Census data, of the 41,885 households reported, 36% or 15,082 have housing problems, such as paying more than the HUD-defined 30% of income for housing costs, living in overcrowded conditions or living in substandard units. Of the 23,646 renter households, 50% or 11,740 have housing problems, while 18% of the 18,239 owner households or 3,342 have housing problems.

Market Conditions

Ann Arbor's housing market is characterized by the large number and percentage of rental units, high percentage of one and two person households, large number of student households and rapid turnover of rental units. Over 60% of the city's housing stock has been built since 1960. However over 34% of the single family housing was built before 1939. Vacancy rates within the city have fluctuated from a low of 1% for owner units and 3.7% for renter in 1970 to a high of 3.2% for owner and 9.5% for renters in 1989. Current vacancy rates are estimated at 5.5% for renter and 2% for owner. Information from the 1990 Census reflects a median value of $116,400 for owner occupied housing within the city. Less than 6% of the total number of owner units have a value less than $60,000, while 37% of the units have a value of $100,000 or less. Average sales price of single family homes within the city reflect similar increases as the 1980 average price of $69,024 rose to $121,366 by 1990 and almost $140,000 in 1994.

Affordable Housing Needs

When comparing fair market rent levels as published by HUD with updated income data provided by HUD, very low income renters in Ann Arbor have a significant affordability gap in their ability to find units with rent levels at or below 30% of income. Fair market rents increased between 70 and 100% between 1980 and 1995. Information from the 1990 Census reflects of Ann Arbor's extremely low-income renters (<30% of median income), 84% pay more than 30% of income and 75% pay more than 50% of income. For very low-income renters (those with incomes between 31 to 50% of median income), 82% pay more than 30% of income and 39% pay more than 50% of income.

Homeless Needs

In 1994, The City of Ann Arbor reported a total homeless population estimate of 1256 including 438 homeless unsheltered and 818 served by emergency shelters. This 1256 total includes 343 persons in homeless families, 56 youth not in families and 857 adults not in families. There are five agencies in the Ann Arbor area which provide overnight shelter to homeless individuals and report statistics by individuals served and bed-nights provided. A total of approximately 135 beds are available. Transitional housing is provided through six other entities and supportive assistance is provided at four additional locations. Thirteen non-profit organizations provide a variety of programs to assist the homeless while five organizations provide homelessness prevention programs. A summary the homeless issue reflects the trend that the number of homeless individuals and families is increasing and that they are staying longer in emergency shelters. Reasons cited by the shelter director include increases in disability due to substance abuse and related problems of what people do with limited resources, increase in the number of evictions because of non-payment of rent, longer periods of time necessary to rebuild credit in order to be able to move into transitional housing, the lack of transitional and supportive housing as well as permanent affordable housing.

Public and Assisted Housing Needs

There are 3076 assisted units in the city, representing 6.9% of the total housing stock. This includes 343 units of public housing. As of December, 1994, public housing had a modernization adjusted vacancy rate of 6%. The Housing Commission continues in efforts to secure Comprehensive Grant funds for modernization. It also administers 684 Section 8 certificates and vouchers. Although substantial amounts have been spent on rehabilitation, the condition of much of the public housing stock is in constant need of improvement because of inadequate budgets to complete maintenance, overuse of many of the units, and the need for improved security. The City's Plan also details needs of homeless severely mentally ill, homeless substance abusers, victims of domestic violence, housing needs of the elderly, persons with disabilities and persons with AIDS.

Barriers to Affordable Housing

Present zoning ordinance and other city codes are not excessive in their regulation and a review of zoning district classifications revealed few, if any, direct limitations on higher density residential use. Language currently exists in the zoning ordinance to permit City Council to waive or reduce standards for planned unit developments and with enhanced administrative procedures, this may be a good vehicle for increasing the supply of affordable housing proposals to the City although developable land is very limited.

Fair Housing

The City has found no evidence of impediments to fair housing choice. Actions supporting this position include: the City has an approved Human Rights Ordinance and Human Resources staff to monitor and enforce the ordinance; the City has provided funding to the Fair Housing Center of Washtenaw for supportive activities; the City has worked with local non-profits and the lending community in establishing the Community Credit Initiative to provide sources of financing for small businesses, non-profit housing developers and low income borrowers; the City has worked with non-profit groups in identifying and approving a site for new construction of housing for low income persons; the City provides assistance in its housing and human services programs to low and very low-income persons, including members of minority groups and female headed households; the City provides materials to the public on federal and local fair housing laws and procedures. A 1993 report on residential lending decisions in Washtenaw County by the Fair Housing Center of Washtenaw County contended that there is on-going racial discrimination in residential lending, yet only 6 housing complaints were filed with the City's Human Rights Department in 1993/94.

Lead-Based Paint

There is limited screening underway in the County to determine the extent of the lead-based paint problem in Washtenaw County and within the City of Ann Arbor but only four cases had been identified within Ann Arbor between 1993 and 1994. Long term strategies and actions proposed to evaluate and reduce lead-based paint hazard over the next five years will include ongoing communication with local health organizations and providing ongoing abatement and educational efforts as part of the City's housing rehabilitation program in coordination with HUD supported training.

Community Development Needs

Community Development needs relating to housing, public facilities, infrastructure, public services, economic development have been identified. In 1995, a very small amount of CDBG funds is being expended in areas other than housing and public/human services because the City has allocated other resources to satisfy these needs or the community has approved local millages to fund projects identified in other approved plans. Housing needs focus on the need for more affordable housing, transitional housing and permanent housing for the homeless. Human services needs focus on emergency services (food, shelter), support services for those in crisis (homelessness, crisis intervention), services to at-risk youth, services to promote economic self-sufficiency (child care, employment support) as well as domestic violence issues and alcohol/drug abuse problems.

Coordination

The City coordinates with Washtenaw County, Washtenaw United Way and non-profit agencies to assess needs and provide coordinated service delivery. The City of Ann Arbor and Washtenaw County in concert with Michigan Housing Trust fund, LISC and local lenders work together to provide financial assistance to non-profits in the acquisition of rental housing to be used as permanent affordable housing for very low income individuals and mentally ill individuals. The City and County also work on the provision of supportive services to these individuals and with several non-profit agencies, have been awarded funds under HUD's Shelter Plus Care Program.


HOUSING AND COMMUNITY
DEVELOPMENT STRATEGIC PLAN

Vision for Change - Overall Goals

The Consolidated Strategy and Plan emphasizes investments in housing, social infrastructure and human capital and continuum of care services. While physical improvements and infrastructure investments are very important in maintaining viable communities, the community development efforts highlighted in the document focus on housing and the social infrastructure targeted toward lower-income residents. The City's investments in the physical environment in areas such as street improvements, park renovation and development, water and sewer improvements will follow the Capital Improvement Plan and related documents assembled by City staff. These projects are important to the community but will not involve the use of either Community Development or HOME funds and are therefore not detailed.

Housing and Community Development Objectives and Priorities

By evaluating the needs and conditions in the community, the City has identified the following objectives over the period 1995 through 2000. They include: expand the supply of affordable rental housing and preserve the existing housing stock; increase housing alternatives for homeless persons and families, and for other persons with special needs; increase homeownership opportunities for low-income families; promote community viability and a suitable living environment to improve safety and livability, reduce isolation, support families, seniors, special populations, youth development and increase access to public/human services; expand economic opportunities by supporting programs to create jobs and economic self-sufficiency.

Housing Priorities

Rehabilitation programs will target the highest priority toward very low-income families and the elderly; Priority is also given to moderate rehabilitation of rental units for very low and low-income families; High priority will be directed toward acquisition of vacant land, and acquisition of housing sites for use as affordable units for very low and low income individuals and families; Medium priority for the development of new, permanently affordable rental housing, debt-free, if possible, by private for profit and non-profit developers with additional state or federal funds; Medium priority for new construction of permanent and transitional housing units for homeless persons.

Non-Housing Community Development Priorities

The City will continue to support and provide financial assistance to human services programs based on the housing and community development needs priorities established in the document. The City will also support neighborhood improvements with public infrastructure and public facility improvements, street, sidewalk and park facility improvements with funding from local millages, special assessments, fees or other federal or state grants.

Anti-Poverty Strategy

The City of Ann Arbor is very concerned about those living below the poverty level but does not control or directly administer programs that provide supplemental income for these individuals. The City makes efforts to assist those living below the poverty level by promoting affordable housing and by requiring coordination of services of subrecipients of CDBG funds, thereby diminishing the financial burden on this population. The City also refers people to Washtenaw County, Michigan Department of Social Services, the Veterans Administration and other programs to obtain benefits which they might not otherwise obtain.

Housing and Community Development Resources

The city expects to receive $2,034,000 in FY 1995-96 CDBG and HOME program funds as well as $64,319 in program income. Additionally, $981,974 has been allocated in the City's General Fund in FY 1995-96 for housing, human services and economic development projects.

Coordination of Strategic Plan

The Community Development Department has strong ties with other governmental entities, educational entities, the Ann Arbor Housing Commission and area service providers and will work to ensure that local housing and supportive services programs are compatible with the priorities outlined in the City's Consolidated Plan. The Community Development Department will monitor the implementation of the Consolidated Plan and Strategy since it currently administers and monitors the Community Development Block Grant, the HOME Program, and City Human Services/Economic Development General Fund allocations.


ONE-YEAR ACTION PLAN

The City has identified the following projects for funding:

Map Descriptions

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, and proposed HUD funded projects.

MAP 6 depicts Neighborhood Segments and streets with proposed HUD funded projects.

To comment on Ann Arbor 's Consolidated Plan, please contact:

J. Lawrence Friedman
Housing Services Manager
City of Ann Arbor, Michigan

Phone Number: (313) 994-2912

Return to Michigan's Consolidated Plans.