East Lansing is just east of Lansing, Michigan, the State capital. East Lansing owes its existence to Michigan State University, which was established as Michigan Agricultural College in 1855 in Ingham County. The unincorporated village of Agricultural College served as the home of the college until 1907 when the State legislature chartered the new City of East Lansing to simplify the provision of supplying essential services to the growing community.

Over the years, the attractiveness of East Lansing (and adjoining areas, many since annexed by the City) as a residential community has drawn many people who work in Lansing. The 1990 census reported East Lansing's population at 50,677, including 32,044 resident college students.

Action Plan

In its Consolidated Plan, East Lansing describes its housing and community development needs and priorities and a 5-year strategy for addressing these needs. For the first year of the plan, East Lansing is requesting $942,000 in Community Development Block Grant (CDBG) funds. This money will be used to finance 24 housing, community development, and service activities planned for Fiscal Year 1995.

Citizen Participation

Development of East Lansing's 5-year Consolidated Plan began in September, 1994. The City solicitated comments on the housing and community development needs of low- and moderate-income households as well as for funding proposals under the City's 1995-1996 CDBG budget and the City's 1995-96 General Fund Public Service Activities budget.

On October 20, 1994, the City's Commission On Housing & Community Development held a public hearing. Comments on the housing and community development needs of lower income persons and on projects proposed for inclusion in the planned CDBG program for 1995-1996 were collected. A second public hearing on November 17, 1994 collected comments on the human service needs of low- and moderate-income persons and on public service activities proposed for 1995-1996. On December 15, 1994, the Commission made program and budgetary recommendations to the City Council.

Following a third public hearing held by the City Council on January 3, 1995, a Proposed 5- year Consolidated Plan was made available for public review at the East Lansing Public Library and at the City's Community Development Office. The Lansing State Journal published the locations of the proposed Plan. The proposed Plan included as the "Annual Plan" component, the Commission's recommended 1995-1996 CDBG program and budget and the Commission's recommended 1995-1996 General Fund Public Service Activity program and budget. On February 7, the City Council approved the Plan.

The 32,000 college students who live within the city limits have a major impact on the community's housing and development needs. The enrollment figures at Michigan State University (MSU) affect the City's housing market. The peak of MSU's enrollment came in 1980, when 44,940 students were enrolled. In 1989, there were 42,866 students, but that fell to 39,743 in 1993. In 1994, enrollment rose again to 40,254, the approximate goal of MSU officials.

Median family income (MFI) in East Lansing was $43,125 in 1990, compared to a MFI of $38,660 in the surrounding area and the national MFI of $35,939.

Of the 13,464 households in East Lansing, 52 percent have annual incomes of 80 percent or less of MFI. Census data show the following levels of low- and moderate-income households:

• Very low (0 to 30 percent MFI) -- 21 percent, 2,880 households.
• Very low (31 to 50 percent MFI) -- 15 percent, 1,965 households.
• Other low (51 to 80 percent MFI) -- 17 percent, 2,219 households.
• Moderate (81 to 95 percent MFI) -- 6 percent, 788 households.

Racial or ethnic subpopulations tallied by the 1990 census in East Lansing include:

• White (non-Hispanic) -- 42,188 or 83.2 percent.
• African American (non-Hispanic) -- 3,481 or 6.9 percent.
• Hispanic (any race) -- 1,268 (2.5 percent).
• Asian American or Pacific Islander -- 3,512 (6.9 percent).
• Native American (non-Hispanic) -- 161 (0.3 percent).

Conditions

Underlying all of East Lansing's housing and community development needs is the dominant presence of MSU, the City's age, and its infrastructure.

Housing Needs

In East Lansing, there is a need to preserve the existing housing stock through rehabilitation and maintenance. There is a need to provide supportive housing and services to residents with special needs, such as the disabled and elderly. The City needs to work with MSU and its housing office to develop and coordinate approaches to housing.

Market Conditions

East Lansing's housing stock consists of 14,403 year-round units, according to the 1990 census. Of the 13,500 occupied units, 9,030 were occupied by renters and 4,470 were occupied by owners. Of the 903 vacant units, 677 were for rent and 73 were for sale. In addition to these units, college dormitories house 17,336 individuals.

The median value of existing owner-occupied housing at the time of the 1990 census was $97,000. Only 147 owner-occupied units were reported as having a value of less than $50,000. In 1990, however, the average sale price of a new single-family home in East Lansing was about $270,000.

About two-thirds of the housing stock consists of rental units. More than 50 percent of the housing units are rentals in 10 of the City's 14 census tracts. More than 80 percent of the units are rentals in six tracts.

Median contract rent for renter-occupied housing units was $414 per month in 1990. Rental housing located near the campus and the City's central business district command the highest prices. High demand for housing in these locations has resulted in monthly rents between $1,000 and $2,000, effectively closing them out to many families and resulting in significant over-occupancy problems.

Enrollment fluctuations at MSU strongly affect the City's housing market, particularly demand in the rental market. When enrollment declined in 1992 and 1993, the vacancy rates at many East Lansing multiple-unit rental properties increased, resulting in greater competition among landlords that ultimately led to lower rents. Single-family rental houses close to the campus did not, however, experience the same decrease in rents. As the rents were lowered, more students chose to live closer to campus instead of in adjacent areas where rents have historically been lower.

Affordable Housing Needs

A large portion of lower income households are cost burdened (paying more than 30 percent of their gross income on housing costs). Some households are severely cost burdened (paying more than 50 percent of their income on housing costs).

Of East Lansing's 2,880 households earning 0 to 30 percent of MFI, 82 percent are cost burdened and 72 percent are severely cost burdened. Of the 1,965 households earning 31 to 50 percent of MFI, 79 percent are cost burdened and 44 percent are severely cost burdened.

Homeless Needs

There are an estimated 110 homeless persons in East Lansing. They include 37 persons in 20 families with children, 64 youths (17 years old or younger), and 9 adults who are not in families. Of these, 6 families with 12 members remain unsheltered, as do 64 youths and 6 individual adults. The rest are served by emergency shelters or transitional housing.

Subpopulations of the homeless with special needs are as follows:

• 28 (25 percent) -- Alcohol/other drug abuse.
• 8 (7 percent) -- Victims of domestic violence.
• 4 (4 percent) -- HIV/AIDS.

It is believed there are many "hidden" homeless individuals in East Lansing. It is likely that many single students and individuals who have dropped out of school are homeless and bounce from friend to friend for overnight shelter.

Public and Assisted Housing Needs

There is no public housing in East Lansing.

There are three assisted housing communities within the City:

• Deerpath Apartments -- 126 units of Section 8 family housing, built with the assistance of the Michigan State Housing Development Authority.

• East Glen Elderly Apartments -- 100 units of Section 202 and Section 8 housing for the elderly.

• Pebble Creek Townhouses -- 186 units of Section 236 family housing.

Barriers to Affordable Housing

This year the City will prepare a summary of any policy analyses and critiques of existing city policies, rules, and regulations that limit the affordability of housing.

Lead-Based Paint

The City does not know if lead-based paint constitutes a hazard within East Lansing. The City will determine if such a hazard exists in the low- and moderate-income areas. Should hazard reduction activities be necessary, the City will use CDBG funds for abatement work during the 5 years of the Consolidated Plan.

Other Issues

There are also housing and supportive needs for the elderly, mentally disabled, mentally ill, physically disabled, substance abusers, and victims of domestic violence. Each group has similar needs when it comes to affordable and accessible housing, but the mix of appropriate supportive services required for each group are different.

As of July 1993, the estimated number of non-homeless special needs persons or households with supportive housing requirements were:

• Frail elderly -- 75 households, 68 of which are headed by females.
• Severe mental illness -- 100.
• Developmentally disabled -- 1,500.
• Physically disabled -- 1,300 (not including frail elderly).
• Persons with alcohol/other drug addiction -- 5,000.
• Persons with AIDS and related diseases -- 5.

Community Development Needs

Non-housing community development needs include:

• Water lines -- replacement of 200 to 300 valves per year and obsolete 2-inch water lines, primarily in the Bailey Neighborhood area.

• Sewer system -- repair of unanticipated breaks in sewer lines and videotaping of the larger lines to analyze their conditions. The City also needs to address environmental pollution caused by combined sewer overflow into the Red Cedar River.

• Streets -- reconstruction of Grand River Avenue, currently badly deteriorated and of substandard design; reconstruction of 10 streets within the low- and moderate-income Bailey neighborhood.

Housing Priorities

Priorities and 5-year goals for housing are:

• Acquisition of existing units for rehabilitation and homebuyer assistance. Goal for homeownership is 43 low- and moderate-income households.

• Rehabilitation, repair assistance, and weatherization of existing units. Goals are to assist 115 owner and 147 renter households.

• Rental assistance. To provide assistance to five lower income renter households to move from overcrowded housing, and to five lower income renter households so their rents after rehabilitation do not exceed previous rent or 30 percent of their income.

• Support facilities and services. Goals are continued services to special needs populations.

• Production of low-cost rental housing. Goals are the production of 100 units for elderly households, 10 units designed for persons with disabilities, and 10 units designed for large families.

Non-housing Community Development Priorities

East Lansing's Capital Improvement Program from 1994 to 2000 recommends an emphasis on the repair and replacement of primary public facilities -- streets, curbing and sidewalks, and sewer and water lines. Two major projects will be the improvements to Grand River Avenue and the Combined Sewer Overflow project.

Priority projects for CDBG funding include street improvements (some with related sewer and water work) to 11 streets and planning for major drainage work on another street.

Assisting human service agencies that provide supportive services to lower income individuals and families is also a priority.

Anti-poverty Strategy

East Lansing will provide child-care scholarships to low- and moderate-income families that need to remain in the workforce. These scholarships will also assist parents who wish to remain enrolled in a business, trade, or academic training program.

Housing and Community Development Resources

The resources to carry out the 5-year plan include the $942,000 in CDBG funds to be received this year. It is anticipated that similar levels of HUD support for community development and housing activities will be available to East Lansing during the remaining 4 years of the plan. The City also plans to use assistance from Federal, State, and other sources.

Coordination of the Strategic Plan

East Lansing will work with the area's human service agencies, the East Lansing Housing and Neighborhood Services Corporation, and MSU's housing office to identify shared goals and objectives and to establish action plans. The City will also consult with the City of Lansing and adjoining Meridian Township to identify programs, services, and special initiatives that could be carried out in a coordinated manner. The City will consult with local lenders and real estate professionals to identify programs, services, and special initiatives which either require their involvement or which could be more advantageously carried out with their involvement.

Description of Key Projects

For the program year 1995-1996, East Lansing plans to use $1.1 million in CDBG and program income funds for 24 activities to address specific housing, community development, and human services needs.

Allocations for housing include:

• $65,000 for a rehabilitation loan program for the City.
• $15,000 for a repair program to benefit low-income senior homeowners.

Budgeted community development projects include:

• $446,445 for sidewalk, curb, and street reconstruction in the Bailey neighborhood.

• $46,000 for playground equipment at the Bailey Community Center.

• $15,000 for drainage improvements at Wolf Court.

• $65,000 for a neighborhood urban design improvements to be identified in the City's Neighborhood Design Plan.

• $25,000 for special economic development activities that create or retain jobs for low- and moderate-income persons.

• $25,000 for the demolition of three dilapidated houses in the Central Neighborhood to permit a small neighborhood park to be developed.

Fifteen percent of the available CDBG funds are allocated for 13 public service efforts. These include:

• $11,520 for child-care scholarship program.

• $23,000 for Economic Crisis Center to provide emergency shelter, food, and clothing to families with women and children.

• $15,010 for drop-in child care and parent education programs.

• $7,220 to Legal Aid of Central Michigan for services to low-income persons.

• $28,000 for community policing in three neighborhoods.

• $23,860 for non-emergency medical services at the Spartan Village Community Center.

Locations

Projects to improve public facilities and infrastructure will take place in CDBG-eligible neighborhoods. Housing rehabilitation and public service activities will be provided on an income-eligible basis and may benefit residents in other parts of the City.

Lead Agencies

East Lansing, through its Community Development Office, will be the lead agency for the implementation of the Consolidated Plan. However, the City wishes to form a partnership with MSU to implement the plan's housing component.

Housing Goals

Housing activities included in this year's Action Plan are expected to result in six rehabilitated housing units and repairs to 90 homes of elderly residents.

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, 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 project(s) from a street level vantage point; in addition, a table provides information about the project(s).

M. Gary Zick
Director
Office of Community Development
(517) 337-1731, extension 234.