The City of Norton Shores is nessled in to the Eastern shoreline of Lake Michigan between the communities of Grand Haven and Muskegon, on the western edge of Michigan. With a number of shoreline parks, the natural resources found within and surrounding the City create a strong tourism trade for the region. The City is also endowed with a growing, diverse business climate in both commercial and industrial businesses which has also helped to enrich the region's economy.
The City has committed to a strategic goal to coordinate resources with county-wide programs, when available, to address local housing and community development needs. Using the One Year Action Plan to invest approximately $186,000 of Community Development Block Grant funds to rehabilitate substandard housing for LMI home owners, conduct emergency repair services to eligible households, reduce or irradicate slum and blight conditions in LMI neighborhoods through code and ordinance enforcement programs; public service improvements; and a Section 108 Loan repayment for a fire station.
A consortium of residents and a diverse group of public and private service
providers made up the task force consulted during the design of the City's
Consolidated Plan strategy. The published notices, open meetings and public
hearing time tables began January 24, 1995 and ended June 28, 1995. The Plan
was drafted prior to May 2nd, 1995 meeting and available for public comment for
thirty days. The second public hearing held November 21st, 1995 regarded the
Consolidated Plan integration of an amendment allowing for the servicing and
auditing of emergency repairs. This amendment was in response to growing demand
by residents for these needed housing services, in addition to full
rehabilitation services.
Norton Shores is located in the midst of a region western Michigan growth corridor evolving west from Grand Rapids extending south from Holland and northward from Muskegon. Tax rates and cost of living appears to be the greatest common denominator for growth experienced within the City. Continued growth conditions for employment opportunities will most likely demonstrate increased population growth, established at 21,755 and lower the 5.1 unemployment rate established back in 1990. However, 7.2 % of the City's population show earnings below the poverty level, and combined moderate income households represent 34% of the households in the City, and represent unique challenges to the Community Development planning.
Affordable single-family housing structures, senior housing facilities and substantial housing rehabilitation for existing substandard homes still remain a high priority for residents who participated in identifying housing needs for the City. Most low/moderate income families renting the home, preferred to own a new effecient, low-maintenance home however saving for the down payment for such a dream was difficult because of their income level. Homeowners indicated the same was true for improving or renovating their present home as they tried to save to obtain a home repair loan. The City has an 85 household waiting list for housing rehabilitation and can only serve 5 home each grant period, based upon the annual rehab allocation. It will take 17 years to serve these homes with an average cost of $15,000, so the City encourages households to also contact the the Michigan State Housing Development Authority, a state housing trust which offers home repair funds to eligible home owners and also provides loan programs to first-time home buyer's. These loans are formulated to ensure a minimal down payment and an interest rate determined by the level of household income.
Currently, households renting pay an average $460 not including utility costs, accounting for approximately 26% of the those families earning the median income of nearly $33,000. This creates a high debt/income ratio for most LMI households and limits their access to standard housing. When conventional mortgage costs average $626 each month, LMI households will need creative fianancing packages and affordable housing options designed to fit their ability to pay, if their needs are going to be met. These same incentives should be used to encourage senior housing development incentives for private industry with a defined commitment to enhance the community with these needed, affordable facilities.
The 1990 Census shows a total of 8,659 housing units in Norton Shores. This represents an 8% increase in units constructed since the 1980 Census total of 8,023. The current total for occupied housing units is 96%. Owner occupied housing represents 87% of the housing stock, and 13% is classified as rental units. A current stock of multi-family rental housing units found on Exhibit #4 accounts for 42% of the rental units. The remaining 610 units are classified as single-family dwellings. Only 8% of the City's housing stock was built prior to 1939. Owner occupied units report 14% of their housing is in a substandard condition, while renters reported 84% of their housing units were in this condition. In the East Broadway area, Census Tract 26.01, this would translate into 23% of the 1720 housing units need to be brought up to minimum housing codes.
Census tracts 26.01 and 26.02 display a median income 20-35 percent less than $33,000 reported within the City, as well as the national average. These two tracts also maintain the largest number of rented housing units. Affordability of rentals has changed from $208 per month contract rent in 1980 to $365 in 1990, reflecting a 55% increase for low income households. In fact, only 30% of the 1,500 occupied rental units in the City demonstrate a rent of less than $350 a month. With a 4% vacancy rate measured in the housing stock within these target areas, a very limited growth trend for affordable rental housing seems probable.
With the exception of 50 manufactured and modular housing units transported within the City's limits since the last census survey, most lots and housing construction has excellerated beyond the affordability reach of LMI households. Developers can sell subdivision or site condominium lots from between $22,000 and $75,000, which coincide with housing construction costs averaging nearly $136,000. It is clear why the investment environment has lost interest in constructing multifamily units and primarily supports single family dwelling construction in the City.
Consumer attitudes also support this trend in LMI neighborhoods as well. Low and moderate income families surveyed in the East Broadway neighborhoods, indicate they prefer to see single family dwellings constructed instead of multi-family dwellings. Their concerns were directed towards significant increases in crime associated with renters observed in neighboring communities, and feel their neighborhoods will remain safe if single-family dwelling construction prevails. They were not opposed to strictly senior citizen community development, because they are sympathic to their senior neighbors who cannot afford the taxes and upkeep of the housing they own.
What is demonstrated by citizens, public safety employees and City Council is the need for safer single-family rental property, afforable housing options offered with creative financing for new construction and for housing rehabilitation assistance. Coordination with local retailers and county resources staffed to assist potential and first time home owner's with couselling services for home maintenance and household finances.
The City undertook a survey to determine the extent and needs of persons who are possibly homeless within the community. No specific data was maintained on either the sheltered and unsheltered homeless within the City. The 1990 Census data, CHAS table 1D showed no sub- populations within the City as being homeless. Only statistics for the City and County of Muskegon were available. This is due to the location of primary services for sheltering the homeless within the City of Muskegon, available in the form of shelter bed space at the Rescue Mission, where 52 beds are available for homeless women, children and families, along with 58 beds at a separate facility for homeless men.
Another organization, Every Woman's Place Inc. assists victoms of domestic violence and sexual assult with temporary shelter space of 24 bed , while providing counseling and a diverse number support services. All of these services are available to residents of the county, including persons residing within Norton Shores. Every Woman's Place Inc. Also operates a youth shelter, Webster House, housing a maximum of 14 young persons and assisting them with drug and support counselling during their stays.
Organizations are scattered throughout the Muskegon County work deligently to prevent homelessness. The leading non-profit organization is United Way, who in turn subcontracts to the Rescue Mission, Love Inc., Mission for Area People, Catholic Community Center and the Red Cross to assist Muskegon County residents with emergency assistance to prevent homelessness. Vouchers for shelter assistance, shelter referrals, property taxes, food and utilities are normally available to person meeting the eligibility criteria established by the funding authorities. The funding originates from the Federal Emergency Management Agency and Michigan Department of Social Services.
The City does not administer a Section 8 rental certificate program nor operates any public housing multi-family facilities. Private investment created all multi-family rental facilities located in throughout the juridiction. The City did administer a rental certificate program in the late 1980's but decided to drop the program due to a lack of interest among renters in the community. The City has two rental houses which participate in Section 8 rental certificates, however they are administered by MiSHDA and City of Muskegon. One is for an elderly household and the other is for a large family. One certificate is administered by the Michigan State Housing Development Authority and the other certificate is through the City of Muskegon's Public Housing Authority.
Although the City does not have a public housing commission this was not considered a barrier to affordable housing. Dialog with non-profit organizations continues to encourage potential development of facilitites for the elderly and persons with disabilities, including person with AIDS, who are better suited to manage housing projects for very low, low and moderate income persons, based upon programs operated throughout the county. It is also important to note that non-profit organizations are better equiped service providers, particularly in the area of supportive housing projects due to funding application restriction designed by MiSHDA and HUD Section 202 and Section 811 respectively. The City feels that the goals and objectives identified in this document will provide the impetus for meeting the affordable housing needs of very low, low moderate income residents of the community.
The major impediments to affordable housing for very low, low, and moderate income families and persons in Norton Shores is the cost of housing and the availability of affordable housing within the community. Indicators have been discussed regarding the cost of rent, mortgage payments and housing in Norton Shores. The Muskegon Board of Realtors state the average house purchase price exceeds the average cost established in the greater Muskegon area with the exception of the City of North Muskegon. The per average value for a single-family home in Norton Shores ranks second among communities in the Muskegon area, ranging between $75,000 and $100,000. Out of a total of 801 housing units built between 1980 and 1992, forty-two units had a construction cost of $40,000 or less. In 1994 new construction cost rose to $136,000, not including the lot purchase.
The only housing reported at costs less than $40,000 were those manufactured homes or mobile homes set up within mobile home parks in the City. The availability of lot spaces in mobile home parks within Norton Shores does provide an alternative to affordable housing for low to moderate income persons and families. Nevertheless, the cost of leasing a space in a mobile home park, can negate the affordability aspects of this type of housing. Also this option may discipate once these land-locked parks are filled to capacity. The likelihood of expansion is dampered by the availability and cost of surrounding property.
The home ownership in-fill program operates with development covenants to afford additional housing for very low, low, and moderate income persons and families with the construction of and/or relocation of houses onto city-owned tax reverted vacant lots. The City expects that some relief may result from the encouragement of local builders and developers to build more affordable housing for very low, low, and moderate income persons and families. Transferring tax delinquent property from the State, using specific development covenants, the City can assist both builders and potential home owners with affordable single-family dwellings. Through direct affiliations with the Shoreline Builders Association, the City is working to leverage projects which build partnerships and strenghten investments locally.
The lack of affordable rental housing in Norton Shores is also an impediment for housing opportunities for very low, low, and moderate income persons and families. The ratio of rentals to owner-occupied units within Norton Shores is one to eight. Development of apartment buildings has not been undertaken in the City since 1979. This situation is a direct result of lending market pressures redirecting loans towards manufacturing and low-risk mortgage lending.
Another factor was created by the City in 1981, when adoption of zoning districts contained in the master plan designated where multi-family units could be built. The zoning districts which permits designated AR-7 or AR-8 (low or high density apartments), were limited to a few areas within the City. These areas appear adjacent to the target areas, where the lower income households reside. Duplexes have been the only form of multi-family dwellings built within one of these districts during the last twenty years.
Securing mortgages for new and pre-existing housing for low and moderate income families quite often is hampered by the inability to save for a down payment, even if a 3% down payment program is available. Much of the problem relates to low or fixed earnings, which could be overcome by employment changes if strong job market is available, or retraining if a person is not fully disabled. Other issues surrounding home financing relate directly to credit ratings and the applicant's debt to earnings ratio.
A Fair Housing Assessment was prepared for US Department of HUD in September of 1993. The study was conducted by the City, and coordinated much of the data provided by the Muskegon Area Fair Housing Center, a sub-receipient contractor of the City's Block Grant funding. The contract was secured to insure standardized and consistent policy was used to ensure housing complaints and education was available to residents in the City. Other municipalities in the metroplitian area of Muskegon County also participate in the Center's services. Testing and education programs are opporated by the Center.
Results indicated that in the last four years, three complaints received by the Center involve familio incidents, and were not racial in origin. The complaints centered upon single-family rental home, a mobile home park and two at apartment complex. Testing was conducted in each case and decisions handed down inferred that no intentional discrimination excluded classes of residents from obtaining housing in the City. Although the racial make-up of the community is predominantly white, reflecting a minority population represented of 4.4 percent, housing, employment and City services are open to all minoritieies and diabled persons who wish to live and/or work in the community.
Recently with the enactment of Title X, Residential Lead-Based Paint Hazard Reduction Act of 1992, entitlement communities receiving CDBG funds and carrying out housing rehab activities, are now required to take steps to reduce and eliminate lead based paint hazards in residential housing within the community. Norton Shores reports that of the 8,659 housing units 62 percent of the homes were constructed prior to 1980 and assumes that nearly 77 percent of those homes contain lead based paint. The City must depend upon the County's screening clinic to screen and test for lead conditions, to process referrals and to provide supportive services with the ultimate of dropping the elevated lead blood in a child from 20 to 15 or less if possible.
Under their present organizational structure, the Muskegon County Health Department has one nurse and one full time sanitarian assigned to their lead-based abatement program. These persons help to educate citizen groups and individual homeowners on the hazards of lead and how to take precautions to help minimize and/or eliminate lead hazards. This program does not presently provide specific data for the City, although county-wide information is transfered to the State Department of Public Health. The State reports that the majority of the screening and treatment historically occurs within pockets of the county, where low income families reside presently found within Muskegon and Muskegon Heights.
Non-housing issues have been defined by citizen participation to include more visible policing in the LMI neighborhoods, installation of sidewalks along school route and in park for safe recreation, land aquisition for park expansion, traffic re-routing to stop commercial traffic near park.
Secondly, the economy in the City of Norton Shores continues to remain strong and demonstrates relatively little unemployment as a result of this dynamic. To aid LMI households to help them maintain the pace of development, there is a clear need to improve employment levels of the at- risk population through adult education and vocational training, linking them to the existing and future opportunities made available in the Community College Higher Education Center and the Muskegon Adult Education. Higher wage earnings would be the most logical tool to bring LMI households to a threshold for overcoming debt ratios and allow these families to participate in expanding their as power as consumers. It is quite unrealistic though based upon current economic forces driving business. It is generally accepted that self-suffiency programs, child care, retraining and emergency assistance case management must remain an intrinsic part of each community as funding formulas change and new national economic directives emerge.
Lastly, community reinvestment and self-reliance is vital to continue
offering programs to improve housing stock and conditions for all citizens,
including LMI households. This should also include improving mass transit and
infrastructure, converting to low-impact alternative fuels and alternative
energy resources, investing in businesses designed to offer progressive,
low-impact technology development, and work-fare employment placement to
intergrate families dependent upon public assistance back into the work force
both in public and private sectors.
It is evident at a micro level assessment, needs of low-income and other eligible subgroups are not cattered by market forces. The City of Norton Shores established housing and community development priorities is based on the most acute and critical housing needs defined by the very low, low, and moderate income groups themselves. Current housing conditions and financial services, and the lack of such, will remain the focus of Block Grant program design.
The operating objectives are ranked by consent priorities to assist low and moderate income homeowners with Housing Rehabilitation to promote safe, low maintenance housing in order to stabilize heighborhoods; increase Code Enforcement to encourage neighborhood pride and discourage blight and slum conditions within LMI neighborhoods; encourage affordable home ownership through In-fill programs; encourage a Supportive Housing Complexs for Elderly Persons; facilitate Independent and Supportive Housing for Persons with Disabilities.
Non-housing Community Development Priorities, Resources and Coordination
Priorities will form around Economic Development to create seed funds for loans directed at LMI residents who are planning business starts or for existing businesses who will covenant expansion of their work force designed to train and employ LMI residents.
In conjunction with the Phillips Neighborhood Association to address Priorities for Public Facility Imporvements expand park and recreation property and programming for playing fields to create viable alternatives in the East Broadway neighborhood for diverting youth from deliquency; Infrastructure Improvements installing sidewalks along the main travel route from the elementary school and bike paths including at the Avondale community park, traffic and signage policing to protect children paly areas, prohibition of commercial traffic with diversion routing and speed controls.
Other community development programs will include Public Services such as child safety programs, child ID programs to finger print and record dental records for children between the ages of 5 and 13; senior citizen support services such ad transportation, sub-station for police and utility payments, relocation of the meal site to improve participation and an ordinance driven certification program directed at improving substandard conditions of rental properties.
It is safe to say, for all the understanding gained from these programs and studies at the local and notional level, that it is clear there is no one solution. Each community has its own unique mix of factors causing poverty. The 1990 Census demonstrated 1,570 persons out of a total community population of 21,755 live below the poverty level within the City. These citizens represent 7.2% of the City's population and with the East Broadway target area (Census Tract 26.01) houses the highest concentration of people among the City's five census tracts, who live below the poverty level. A realistic Anti-Poverty objective would strive to reduce this number by 50% and still maintaining its present population by the year 2000. Provided there are enough resources in the community, a great deal of success can be made by guiding LMI families in adirection to personally overcome the barriers which prevent them from leading a self-sufficient life.
A resource base of 76 Federal, State, local private and non-profit programs
available within the County of Muskegon to assist the City's low income citizens
with affordable, energy-efficient housing, property tax payments, educational,
diversified job training, affordable health and child care services and a stable
local economy which makes employment availabile. The City will ascert strategies
for reducing poverty in the community through economic development initiatives
to stimulate the creation of higher paying jobs for residents in the community,
support expansion of programs aimed at linking up LMI households with key
representatives of human service agencies, in an effort to provide a more
funcitonal support system aimed at designing a personalized program for
self-sufficiency.
The City of Norton Shores intends to use a proposed $186,000 dollars of Block Grant funds, not including program income to manifest its One-year Action Plan. The majority of funds will be spent accordingly:
$47,850 for Housing rehabilitation grants and $45,000 for Emergency Repair services; $10,000 Code Enforcement funds for services used to identify and abate dangerous buildings; $10,000 Slum & Blight Clearance for removal of condemed, substandard housing or ordinance violations; $30,350 Economic Development funds for section 108 loan repayment used to construct Fire Station #2; $3,000 contribution toward the Transportation of senior citizens; $3,500 contribution for Fair Housing services; $2,000 for Public Service will be programmed towards Park improvements.
All housing projects, economic development and Public Service imporvements will be available City-wide, although a majority of the LMI customers reside in the Census Tract 26.01.
Housing funds will be used to complete 5 full service rehabilitation projects, 20 Emergency Repair services; Remove 4 abondoned, vacant homes and remove 1 foundation of a fire-destroyed home; Provide funds to ensure approximately 70 trips under the transportation are provided to senior citizen residents.
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 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects within one neighborhood.
