The City of Detroit's Consolidated Plan includes a one-year Action Plan for the expenditure of $56,584,000 in Community Development Block Grant (CDBG) funds, $ 14,105,000 in HOME funds, $2,163,000 in Emergency Shelter Grant funds and $1,207,000 in HOPWA funds.
The HUD Consolidated Plan was prepared in accordance with a citizen participation plan. This plan was revised with the publication on January 5, 1995 of the HUD Consolidated Plan regulations. The citizen participation process began in August, 1995 with the appointment by the Mayor and City Council of citizens to serve as a "working group" to prepare recommendations for priorities for the HUD Consolidated Plan, and particularly for the CDBG portion of the plan.
The working group held a series of public meetings which were designed to provide information regarding the Plan and the planning process, and to receive comments and opinions regarding housing and community development needs, objectives and priorities.
After these meetings, the working group prepared and submitted recommendations to the Mayor and City Council. These recommendations were accepted and included in a request for proposal package which was made available to neighborhood and community organizations who wished to make proposals for CDBG or other projects.
In January and February, 1995, another series of community meetings were held to review priorities and the plan outline and process. In addition to these meetings, the Planning and Development Department consulted with other agencies regarding the HUD Consolidated Plan and its contents. These consultations were held directly in meetings including Planning and Development Department staff and indirectly using City agency staff responsible for the various elements of the plan.
The formal public review period for the HUD Consolidated Plan was from 3/29/95 to 4/28/95. During this
review period, the City Council held a public hearing on the draft plan, and the Planning and Development
Department held a hearing on the draft plan. In addition, the City Council held a public hearing on the
proposal in the draft plan for citizen district councils. The Mayor approved the Plan as amended by the City
Council on 5/4/95.
The total population of the City of Detroit has declined over the past two decades from
1.514 million in 1970 to 1.028 million people in 1990. It appears, however, that the rate of
population loss has slowed. Between 1970 and 1980, Detroit lost 310,700 people, or about
20 percent of the 1970 total. However, in the following decade, 1980 to 1990, Detroit had
175,000 fewer people, or a 15 percent population decline. Over 75 percent of the Detroit
population is minority. Almost every area of the City has a racial mix, although a few census
tracts in the extreme Northeast and Northwest section of the City have few minorities.
Poverty is widely distributed through almost every area of the City. The higher levels are
distributed in the center of the City, and lower levels are around the edges.
The City of Detroit has the largest concentration of poor households in the metropolitan area, with a poverty rate of 33 percent. Detroit accounted for nearly three-fifths of the area's poor households in 1985. Half of the renter households in the City of Detroit lived below the poverty line in 1985. Moreover, renters were more concentrated in Detroit than in other parts of the metropolitan area.
The total housing stock of Detroit has declined over the past two decades, although not as rapidly as population. Between 1970 and 1980, the total year-round housing units declined from 529,000 to 471,000 or 11 percent while occupied housing units declined by 13 percent from 497,700 to 433,500 units. During the decade from 1980 to 1990, total year-round units declined by 13 percent (from 471,000 to 410,000 units) while occupied housing units declined 14 percent during this same period (from 433,500 to 374,000 units).
The general trend for the past 20 years in both net population and net housing stock is downward. The numbers suggest that the population per household continues to decrease. Moreover, there was a rise in vacant units between 1970 and 1980. This number of vacant units has declined somewhat between 1980 and 1990. However, the percentage of vacant units has increased because the total number of housing units has decreased. The 1990 Census found about 36,000 vacant units in Detroit.
Based on figures from the 1985 American Housing Survey for Detroit, out of a total of 407,600 occupied units, 31,900 of them (or 8 percent) had moderate physical problems, while 10,500 units (2.5 percent) had severe physical problems. The condition of renter-occupied units was somewhat worse: of 178,100 rental units, 20,100 or 11 percent showed moderate physical problems and 6,800 or 4 percent showed severe physical problems.
Significant declines in household income, combined with housing cost increases for renter households and a decrease in the supply of low cost rental units, have contributed to the growing problem of housing affordability in the Detroit area.
From 1974 to 1985, household income for renters in the Detroit metro area underwent a decline while rental housing costs increased. The median income for renter households fell 27 percent during this period, after adjusting for inflation, from $18,333 in 1974 to $13,455 in 1985. At the same time, housing costs of the typical renter household increased 10 percent after adjusting for inflation, from $333 per month in 1974 to $365 per month in 1985, partly due to the increase in the number of larger rental units.
During the decade from 1975 to 1985, the supply of low cost units dwindled. In 1974, the number of low-cost units in the City was slightly larger than the number of low-income renter households. There were 73,863 households with incomes below $10,000 and 75,996 rental units that cost $250 or less. Between 1974 and 1985, the number of low-income renters in the City grew by 45 percent to 106,900 households, yet the number of low-cost units declined by 17 percent to 62,810 units.
In the very low-income group (0-30% MFI), 79% of the households have a housing cost burden of at least 30% (i.e. housing and housing related costs which consume at least 30% of the household income). These percentages include both owners and renters. Among the household types (small, elderly, small non-elderly, large and other miscellaneous types) the elderly appear to fare better than the other household types in terms of percentages of income required for their housing needs. This is indicated by the 66% with 30% cost burden for elderly owners and renters, respectively, as opposed to 81% and 73% for the total rental and owner households respectively
The immediate needs for homeless persons are food, clothing, shelter, and supportive services. At the time of homelessness, almost all homeless persons may be considered very low income. Although homeless persons come from, or can be found, in almost every area of the City, they tend to be located in the inner City.
For most of the homeless and those at risk of becoming homeless, including children, teens, adults and the elderly, services must be provided to prevent future homelessness . These services may be legal counseling, drug and alcohol prevention programs, job training, education in independent living skills, secondary education completion, follow-up or aftercare services to provide support needed to be successful in a permanent living arrangement. The City has developed strategies to provide these services and will work with non-profit service providers, community based developers, public agencies and others to insure that the needed supportive services are available.
The mission of public housing is to provide safe, decent, sanitary, affordable housing and living environments to persons who have very limited incomes and are, therefore, unable either to rent or purchase lodging without assistance. The Department provides this housing through housing developments and the Section 8 program.
Currently the Department has 9009 units and a vacancy rate of approximately 40%. A significant number of dwelling units are in general disrepair and various states of deterioration. Three largest housing developments, Jeffries Homes, Herman Gardens and Parkside Homes, each have approximately half of their dwelling units vacant. Many of these have been vacant and boarded for several years, and contain interior deterioration which will require larger per unit cost to repair. These repairs include the removal of lead based paint, installation of new heating and plumbing systems, and upgrading of bathroom and kitchen facilities. The City has developed a strategy to use available resources for public housing modernization. These efforts include upgrading management and operation, reducing the vacancy rate and demolition or rehabilitation of units.
The public housing individual, household and community needs require a comprehensive approach if the desired ends are to be met. The Detroit Housing Departments programs are being designed to meet the following needs:
Detroit's Section 8 program has an annual contribution contract maximum of 778 certificates and 867 vouchers. Of those 689 or 89 percent of the certificates are in use. Of the 867 vouchers, 694 or 65% of the vouchers are in use. The waiting list, which has been closed for several years has been recently up-dated and stands at 420 but remains closed. It is anticipated that the allowed number of units will become fully leased in FY 94 from both the waiting list and new applications.
The City conducted a study which identified those housing-related public policies and procedures which could be expected to have an impact on the cost of affordable housing.
As a part of the process, in-depth interviews were held with local and state officials. Focus groups were held with persons representing agencies involved in real estate sales and property management, real estate financing, construction, design, appraisals and affordable housing interest groups. The results are being reviewed prior to making final recommendations. Additionally, the Mayor has taken a number of initiatives toward removal of barriers to the development of housing in the City. Among them is the establishment of a team to streamline procedures in regard to licenses and permits, and to develop a "one stop capital shop" so that licenses and permits can be obtained at one central location.
The city has certified that it will affirmatively further fair housing, which means that it will conduct an analysis of impediments to fair housing choice within it's jurisdiction and take appropriate actions to overcome the effects of any identified impediments. As a part of this commitment, the City will use CDBG funds to provide housing counseling services to low and moderate income persons.
According to the 1990 U.S. Census Bureau, 97.4% of Detroit's 410,027 housing units were built before lead-based paint was banned. Most of the City's housing contain some lead-based paint. It is also estimated that the paint is in a deteriorating condition in 281,391 units, or 69% of the total housing stock in Detroit.
The Detroit Lead-Based Hazard Control Project (DLBPHCP) will be administered by the Detroit Health Department.
The Lead Poisoning Prevention and Control Program (LPPCP), established in 1972, provides comprehensive lead poisoning prevention services to Detroit residents in addition to functioning as a lead information resource throughout southeastern Michigan. Screening, community outreach and education, home inspections and environmental management, and medical follow-up are provided to residents of the City of Detroit through this program.
During the next five years, the City of Detroit will begin several initiatives addressing lead-based paint hazards in the City's housing stock. Evaluation and lead-based paint hazard reduction will be carried out in three major ways, the Housing Department's Comprehensive Plan, implementation of Title X requirements, and operations of the LPPCP. The following are goals which when implemented over the next five years, will enable Detroit to reduce the gap between the need for, and the supply of affordable lead-safe housing.
The City has set forth a variety of community development needs in the manufacturing and service sectors, including the challenges of retraining and re-educating the labor force, and increasing participation of women in the work force. The plan also stressed the need to provide supportive services to the homeless, elderly, persons with special needs and persons with HIV and their families;
The City's Planning and Development Department is responsible for coordinating the
Consolidated Plan.
The ultimate goal of Detroit's housing strategy is to insure that all City residents live in decent, safe, sanitary housing.
The attainment of the City's housing strategy depends on many factors, but particularly on the income of Detroit's residents and the cost of housing in Detroit. The cost of housing in Detroit is relatively low. Unfortunately the City has many residents who cannot afford even these low costs. Thus, this housing strategy is designed to reduce further housing costs to low-income Detroit residents and to bring these costs into line with their ability to pay for standard housing.
The approach to reducing housing costs involves providing assistance to low-income residents so they can remain in their existing housing, The approach involves providing assistance to home owners to maintain and/or repair their homes and to provide subsidies to landlords to encourage them to provide low-income standard housing. The approach also involves providing assistance to developers to increase the total supply of affordable standard housing. The following lists the City's priorities:
The City has several plans which relate to its overall housing and community development program. The strategic plan for the Empowerment Zone outlines goals and programs to create economic opportunity, to sustain competent, healthy and safe families, and to restore and upgrade neighborhoods in the zone. Economic policies in the Detroit Master Plan of Policies, address the needs of the manufacturing and service sectors, the challenges of retraining and re-educating the labor force, and the increased participation of women in the work force. Some of the specific priorities are:
Social goals and policies within the plan provide for a socially healthy community and address a wide range of social needs including the following:
Physical development priorities include:
Detroit has a poverty rate of over 32 percent. It's unemployment rate, expected to be 11.6 percent in 1995, is nearly double the state and national rates. As a means of reducing and preventing poverty, the City assigns highest priority to attaining full employment for its residents, with special attention given to those with low skills and other special needs. All major development is assessed for maximum potential for temporary and permanent job retention and creation. The City's community and economic development activities all have the goal of improving the availability of employment and/or access to employment. The City will continue to follow this policy as the major means of combatting poverty. It is realized that training and re-training in many cases are the primary means for equipping persons out of work with the skills to take jobs which become available in the current and future work place.
In implementing its strategy, the City will use a wide variety of resources. Some of these resources are under the direct control of the City of Detroit. Many, however, are controlled by the federal government, State agencies, non-profit organizations, private financial institutions, developers. The City has and is developing continuing relationships with these non-City agencies. When the City identifies appropriate funding for these agencies, it contacts them, encourages them to apply for funding, and helps them prepare the application.
The major funding sources for Detroit's community development and housing program will be the CDBG, the HOME program, the Emergency Shelter Grant program, and the Housing Opportunities for Persons Living with AIDS program. In addition to these revenue sources, the City is applying for discretionary grants, particularly for the homeless programs and for public housing improvements.
The major government agencies involved in Detroit's housing and community development program are the City of Detroit, the Michigan State Housing Development Authority, and the U.S. Department of Housing and Urban Development.
City agencies meet regularly with other governmental agencies, with non-profit and private
service providers, and with advocacy organizations in their area of responsibility. The Detroit
Planning and Development Department coordinates the planning activities of these agencies
and is frequently in contact with public and private agencies providing services and housing.
This contact may be through community meetings, public hearings, and topic oriented
meetings.
The Locality's fiscal year 1995 program includes activities such as:
| CDBG | Home Repair - $10,874,663 for 516 units; $1,000,000 for 100 units in the City's Empowerment Zone; $6,026,407 for Public Services Activities which includes assistance to 315,750 youth, and 4,072 elderly; $6,571,366 reserved for demolition in the Empowerment Zone and $4,308,379 outside the Empowerment Zone; $3,932,500 to rehabilitate 23 public facilities. |
| HOME | $3,532,475 reserved for CHDO projects in the Empowerment Zone for about 1,600 buildings and $1,880,325 outside the Zone; $1,750,000 to assist investors (35 units) outside the Zone. |
| ESG | Homeless programs which include, walk-in centers, job training, and aftercare to assist approximately 5,000 individuals and households. |
| HOPWA | Housing assistance, in home care and housing certificates for approximately 300 individuals. |
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.
Mr. John Lowe, Principal Planner
City of Detroit
Planning and Development Department
2300 Cadillac Tower
Detroit, MI 48226
Telephone (313) 224-6380
