The development and implementation of the Consolidated Plan is a key and crucial part of the City's federal grant application filing process for the following federal grant programs: Community Development Block Grant (CDBG), Home Investment Partnership program and the Lead-Based Paint Hazard Reduction program. The City of Muskegon Heights, five-year, Consolidated Plan covers the period from July l, l995 the through June 30,2000.

Action Plan

The City anticipates continuing on-going programs funded by CDBG, including rehabilitation of owner occupied properties with the Substantial Rehabilitation program, Emergency Repair program, and the Homeowner Paint Assistance program. A new Comprehensive Housing Assistance Education and Training project will be funded by CDBG to provide hands-on- home ownership workshops covering: maintenance and repair, troubleshooting, homeowner financial planning and decision making. A total of $l00,000 of MSHDA HOME funds will be available to the City in this first year of the Consolidated Plan to assist landlords with moderate rehabilitation of existing rental properties. These projects are intended to be targeted to support the single-family owner-occupied home improvement environment.

The first of the new neighborhood target areas will be established according to the guidelines established on pages 42 and 43, and will receive concentrated assistance from any targeted programs which can be brought to bear, including the Substantial Rehabilitation, Homeowner Paint Assistance, Homestead/Dilapidated Housing Rehabilitation, Infill/New Construction, and Rental Rehabilitation, as well as private home improvements. This type of geographic targeting of public resources is new to the City, and is intended to maximize public benefit and private investment through wise investment of all public resources.

Citizen Participation

The following three programs used by the City to continuously meet with citizens to determine their needs and identify programs that will contribute to the goals and objectives identified in the Muskegon Heights Consolidated Plan (l995-2000) are as follows:

1. Weed and Seed

Over 35 persons participated in three (3) Community Weed and Seed meetings which were also attended by several staff members from the Cities of Muskegon and Muskegon Heights. The participants represented the following areas in the City of Muskegon Heights: The Muskegon Heights Housing Commission, the Lindberg/King Schools area and the Middle/Jr High School area.

2. Enterprise Community

Between April 5 and May 3, l994 more than l50 persons participated in twelve Community Vision meetings which were also attended by several staff members from the Cities of Muskegon and Muskegon Heights. In the City of Muskegon Heights, meetings were held at the Muskegon Heights Housing Commission offices, the Loftis School area, the Lindberg/King Schools area, the Edgewood School area and the Glendale/Roosevelt Schools area.

3. CHAS 95/Consolidated Plan (l995-2000)

On January 30 and 3l, l995 the City of Muskegon Heights held a public hearing to gather citizen input on the Comprehensive Housing Affordability Strategy for l995. After the introduction of the Department Planning Staff the citizens were given a program overview of the new Consolidated Planning System and were given an overview of current CDBG programs. The hearing ended with the public comment session.

Muskegon Heights reached a peak population of l9,552 in l960. Its current population is l3,l76. This represents a 33 percent decrease, or an annual loss since the l960 of approximately l.l percent. The City's loss of population since l960 is not unique. This phenomena has also been shared by neighboring municipalities. The economy of Michigan and the Country as a whole have experienced some significant setbacks during the past few years, and Muskegon Heights has shared in these setbacks.

Employment opportunities in the area have decreased in the last ten years resulting in high unemployment rates. The rate for the City was l8.4% in l990, much higher than the County rate of 8.6% and 8.2% Statewide rate. Current rates are l6.0% for the City and 7.3% for Muskegon County.

To counter declining industrial employment, the Muskegon area has begun marketing efforts to attract new industry. Among the new "industries" being touted is Muskegon's overlooked potential for tourism. Groups such as the "MEGA" consortium have begun efforts such as the Muskegon 2000 plan to impact the area's image and economy. Moreover, the City itself is aggressively marketing to potential industrial and commercial enterprises. Success of that effort is demonstrated by the growth of the West Heights Redevelopment District, and the capture of an additional l0% of the County retail market from l977 to l987.

Conditions

To date, the City has only one community-based non-profit housing provider. The needs are sufficient to support several more. The Muskegon Heights Association of Neighborhoods and at least two neighborhood associations with multiple block club representation have begun organizing. These efforts are welcomed and encouraged by the City of Muskegon Heights. Yet, if both Neighborhood Associations are successful, only approximately l0% of the City's residents would be represented, therefore, it goes without saying that the City hopes to see l00% organization in twenty years.

Housing Needs

The Muskegon Housing Commission, the Local Housing Authority (LHA), through resident surveys (especially at Columbia Court building for elderly and disabled families), has determined that separate housing is needed for elderly and young disabled persons.

The LHA has determined, through concerns of residents and staff that, special housing is needed for elderly and young disabled persons with AIDS/HIV.

Housing Market Conditions

1. The LHA has 357 units available for very-low to moderate income families. The monthly average number of persons on the waiting list for 1-bedroom units is 20; 2- bedroom units: 40, 3-bedroom units: 15 and 4-bedroom units: 12.
2. The LHA receives approximately 50 inquiries per month for housing.
3. The LHA receives approximately 5 calls per week from person(s) who explain that they are homeless due to no permanent domicile, paying over 30% of income for rent and living in substandard housing.
4. The LHA receives approximately one (1) call per month from persons who explain that they are physically disabled.
5. The cost of housing for low to moderate income families to obtain and live-in housing owned and managed by the LHA is based upon 30% of a families income.
6. The LHA does not expect to lose any of its housing inventory.
7. The LHA's Section 8 Rental Certificate Program has been closed since l988. Eight (8) families remain on the waiting list.

Affordable Housing Needs

Home ownership units for-sale-only are of lower quality and value. Few units of higher value and quality are on the market. There are very limited new construction opportunities.

Approximately 47 new home sites remain available in the Woodcliffe Village subdivision, affordable to moderate and middle income households. Other new construction opportunities are limited to infill housing on scattered sites in existing neighborhoods.

Regressive sales market requires stimulation. Minority households not moving, though they tend to hold units of higher value.

Homeless Needs

The homeless exist in Muskegon County but are nearly invisible. A larger number of households are at-risk of homelessness. These households use area food pantries, soup kitchens, and short term rent assistance.

Established data do not exist for the homeless and at-risk populations. This CHAS Community Profile is based on conversations with directors of local shelter and emergency food providers, as coordinated by the Muskegon United Way "Emergency Needs Committee".

According to the best guess of the Executive Director of the City Rescue Mission, approximately l00 to 200 persons are homeless at any given time in Muskegon County. The population which makes use of the City Rescue Mission shelter averages 60 to 65 people per night. An additional 20 to 25 are "floating" from place to place. Sixty percent (60%) of the City Rescue Mission clientele can be characterized as one to two week guests, while less than ten percent (l0%) stay for over one year. Less than twenty -five (25%) can be classified transient; most are local displacees.

Homeless people need shelter and food assistance, both of which appear sufficiently available at present.

Public and Assisted Housing Needs

Name of Local Housing Authority (LHA): Muskegon Heights Housing Commission, 6l5 East Hovey Avenue, Muskegon Heights, MI 49444.

Number of LHA units: 357, Two (2) multi-family units, 250; one (1) elderly high-rise building, 90 units; l7 scattered site single family homes. The LHA administers a Section 8 Rental Certificate Program for 50 families to live in single family homes throughout Muskegon.

Condition of LHA units: East Park Manor: two-hundred units (200) fair to good condition. East Side Court: fifty units (50) fair to good condition. Columbia Court: ninety units (90) good condition. Seventeen (l7) scattered site properties, all single family homes, fair to good condition.

Restoration and Revitalization Needs. Through resident surveys and staff assessments, HUD has approved a l994 Comprehensive Grant totalling $976,682 for LHA properties known as East Park Manor, East Side Court, Columbia Court and l7 Scattered Site Properties.

Vacancy Reduction Program. In l994 the LHA received $445,800 to reduce vacancies at the LHA which were due in part to crime and drug trafficking problems.

The LHA, through resident surveys (especially at Columbia Court building for elderly and disabled families), has determined that separate housing is needed for elderly and young disabled persons.

The LHA has determined, through concerns of residents and staff that, special housing should be provided for persons with AIDS/HIV.

Barriers to Affordable Housing

The City's payment process for CDBG rehabilitation and other City projects is necessarily complicated, given the increasing regulatory requirements placed on public assistance primarily by federal authorities. The City should streamline the payment process as much as possible by addressing the interdepartmental nature of payment approval (inspection by Inspections Department, Payment request and project documentation by Planning and Community Development Department, purchase order by Purchasing Department, check disbursement by Finance Department). Each department has currently streamlined its own procedures to meet its needs, but additional improvements have been made by moving the Purchase Department purchase order request and approval to the front of the process. The purchase orders are approved at the same time construction contracts are signed. This allows departments to effectively track project budgets and appropriately obligate funds.

Fair Housing

The City of Muskegon Heights will work closely with area fair housing advocates and provide city wide assistance in the area of education and enforcement activities related to fair housing.

Lead-Based Paint

Over 3,000 of the City's occupied housing units may be at high risk of containing Lead Based Hazards. According to city records 2,700 residential structures were constructed before l940.

The LHA has l7 scattered site single family homes that have been tested and determined to have lead-based paint. The approximate amount to rehabilitate each home is $l5,000 and abatement is $20,000; total: $35,000 per unit.

The LHA will request funds for rehabilitation and lead-based paint abatement for each house in its l995 Comprehensive Grant.

Community Development Needs Coordination

As part of the community-based partnership organizations and agencies participating in the development of the Consolidated Plan, we consulted with over l00 local service providers. Overwhelming support was provided, with many agencies offering additional programs and resources. Some of those agencies are as follows: The Muskegon Heights Housing Commissions, Muskegon Department of Social Services (State of Michigan, Muskegon County Department of Community Mental Health, Muskegon County Health Department, Michigan State Housing Development Authority and Michigan Region l4 Area Agency on Aging.

Vision for Change

The strategic vision for change represents a collaborative effort between the Cities of Muskegon and Muskegon Heights and Muskegon County. The Muskegon strategic vision for change action plan calls for the creation of 500 jobs, creates two neighborhood family centers and establishes enterprise development programs to stimulate business activity and job creation.

Housing and Community Development Objectives and Priorities

Objectives:

1. Improve marketing conditions to stabilize property values.
2. Promote highest and best use of all properties to upgrade the tax base, by promoting Home ownership and expanding the middle income component of the market .
3. Increase concentrations of owner occupied units in single family neighborhoods to keep an even distribution of rental and owner occupancy.
4. Reduce concentrations of renter occupied housing units in single family neighborhoods to keep an even distribution of rental and owner occupancy.
5. Assist low and moderate income homeowners with housing r habilitation to promote neighborhood stability.
6. Stimulate the market for investment in new construction and upgrading existing stock by the other low, moderate and middle income sector.
7. Provision of excellent condition rental housing dispersed throughout the community so as to contribute to neighborhood stabilization and general reinvestment, and to avoid concentration of rental properties.
8. Encourage sharing the burden of at-risk households by promoting an equitable distribution of homeless and very low income projects throughout the greater area.

Non-Housing Community Development Priorities

Encourage institution of a regional study of the causes and effects of the dual phenomena of urban sprawl and inner city disinvestment, to begin an area-wide long Term change in growth management policies to protect at-risk households. Continue city programs which support low and moderate income households.

Coordination of Strategic Plan

The Consolidated Plan for the City of Muskegon Heights represents a unified and comprehensive framework that includes community input processes from the Enterprise Community Strategic Vision for Change Plan and the Muskegon Heights Weed and Seed Designation application and the Comprehensive Housing Affordability Strategy. It is our hope that this effort will create opportunities for collaboration and collective problem- solving. It involved consulting with the public and private service agencies, other cities, the local public housing authority, City of Muskegon Heights Departments and other entities to devise goals toward reducing the number of households in poverty. It involved outreach efforts to social services agencies to define housing needs of children, elderly persons, persons with disabilities, homeless persons, and special considerations made to meet the needs of persons with HIV/AIDS and their families.

Description of Key Projects

The City anticipates implementing the following affordable housing projects during FY l995- l996:

• Targeted Substantial Rehabilitation
• Citywide Emergency Repair
• Citywide Homeowner Paint
• Targeted Scattered Site Homestead Rehab.
• Targeted Scattered Site Infill
• Targeted Rental Rehabilitation

Locations

All geographic areas of the City of Muskegon Heights are eligible for public investment through the program priorities established in the Five Year Strategy of this Consolidated Plan.

Lead Agencies

The lead agency for the planning and submission of the Consolidated Plan is the City of Muskegon Heights Planning and Community Development Department. The planning department utilized an integration of existing plans and strategies and a grass roots, neighborhood-based approach, aimed at enhancing coordination between public, and assisted housing providers, and among private and governmental health, mental health, and social services agencies.

The City of Muskegon Heights Department of Inspections will be responsible for maintaining and submitting digitized permit information including address, construction or permit type, and valuation for use with the GIS.

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.

Tel. (616) 733-1355