The City of Pontiac prepared a Consolidated Plan (CP) as a recipient of assistance through the U.S. Department of Housing and Urban Development(HUD) programs. The CP is a comprehensive planning document that identifies Pontiac's overall needs for affordable and supportive housing, community development and services, and outlines a five year strategy to address those needs.
Of the total Federal funding, the one-year action plan has allocated 36% to meet housing needs, 2% to meet homeless needs, 7% to meet public infrastructure needs, 19% to meet public service needs, 5% to meet economic development needs, 8% to meet administrative needs and 6% meets other needs. Federal funding is expected to be leveraged by non-Federal funds of about 1.5 million dollars.
Pontiac was required to adopt a plan to encourage participation of citizens in the development of the housing and community development plan. Special action was needed to encourage participation by all citizens, including minorities and non-English speaking persons and persons with impairments. In the development of the Plan, the City of Pontiac:
Pontiac was successful in gaining Oakland County cooperation as early as the 1994 Enterprise Community process. It is in the interest of the City of Pontiac and the Oakland County government to promote a regional view of community development needs, goals and objectives.
Pontiac is an aging and poor urban community which sits squarely in the
center of Americas third richest county. The 1990 population of 71,166 has
declined 7.2% since 1980 and the 25 to 44 age group has increased 14.2%.
Between 1970 and 1990 the minority population has increased from 27% of the
total population to almost 50%. In 1991 the City of Pontiac had a higher
unemployment rate than both Detroit and Oakland County but the unemployment rate
decreased from 22% in 1981 to 15% in 1991.
Of the 61 municipalities in Oakland County, Pontiac ranks 58th in percent of housing units which are owner occupied, and 59th in median house value. Pontiac also ranks 59th in percent of people over the age of 24 with a bachelor's degree, and 60th in percent over the age of 24 with a high school diploma. Other economic risk factors show that Pontiac's infant mortality rate is 23.1%, the second highest in the state. Although Pontiac's population is only 6.57% of the County's total, 38% of all teen pregnancies in the county are Pontiac residents.
The 1990 Census data shows that Pontiac has a mature housing stock that is over 50% rental occupied by those who pay over 50% of their income for housing expenses. There is also a great need for renters with physical defects and the extremely low income elderly. Housing needs for those with low to moderate income, affordability becomes the issue for renters and owner occupants.
"Cost Burdened" is the term used to describe the percentage of income above 30% which is dedicated to cover housing expenses. A "cost burdened" household spends more than 30% of gross income on housing, while a "severely cost burdened" household spends more than 50% of income to meet basic shelter needs. Households which can afford to spend less than 30% of their income to meet housing expenses are not considered cost burdened.
Cost burdens are large in Pontiac because the housing is both high in purchase costs and high in maintenance expenses. Because of other high costs of living such as transportation costs and day care for working people, families carrying costs burdens or severe cost burdens to keep adequate shelter find themselves at risk of joblessness or even homelessness.
There are approximately 25,000 housing units in Pontiac. Almost 70% are single family units. Owner occupancy is at about 50% in Pontiac as compared to an owner occupancy rate of 73% for Oakland County. Affordable housing is generally defined as housing where the occupant is paying no more than 30% of gross income for gross housing costs, including utility costs. The Oakland County Task Force on Homelessness indicated that low income renters and the homeless have the greatest need for affordable housing.
Potomac was reported to have the fourth largest homeless population in the State in the 1990 Census. Homeless shelters are of sufficient capacity to carry all of the local burden of Pontiac homelessness. In fact, Pontiac shelters are also carrying nearly half of the non-Pontiac homeless of Oakland County. The quality of the continuum of care needs to more fully assessed and adjusted to be sure that substance and spousal abuse are not a dead end for otherwise vibrant human lives.
The City of Pontiac has defined an area of low to moderate income concentration to be one where 50% or more of the population is under the Assisted Section 8 income limits adjusted for family size. A total of 795 public housing units are located in one row house complex and two mid-rise towers. There are also 404 assisted housing units in five privately owned complexes in the City. Public housing units at the two senior centers, Woodland Heights and Carriage Circle, are being totally renovated in 1995.
Oakland County is a high cost housing market. Housing affordability in Pontiac is not low enough to convey home ownership to most low income households. The City has identified two specific barriers affecting the cost and availability of affordable housing:
Estimates of lead-based paint incidence exceed 89% based on the 1990 Census.
Approximately 23,686 housing units contain potential lead-based paint hazards.
Thus, of the 16,890 housing units occupied by low income in Pontiac, almost all
are expected to contain lead-based paint hazards.
The five-year Housing and Community Strategy is based on an overall vision of allocating investments geographically and among identified high priority needs. Program objectives will concentrate on:
According to the objectives of the Plan, the following objectives and strategies will define how Pontiac will meet its objectives:
High priority needs for the renters are identified as 'Cost Burden' and
'physical defects'.
High priority needs for the owner occupant and the elderly are 'physical
defects'.
High priority Community Development needs are identified as 'Youth Centers', 'Health Facilities', 'Youth Services' and ' Code Enforcement'.
High priority needs for the homeless are identified as 'Outreach Assessment', 'Transitional Shelters', and 'Emergency Shelters'.
During the five year period of this Consolidated Plan, the City will continue to work with HUD to improve the overall capacity of the Block Grant staff to administer the CDBG and HOME Programs. The City will also create an on-going training program for its subrecipients, to improve service delivery, and to ensure adherence to HUD guidelines.
Several meetings were held in various cities in Oakland County for purposes
of coordinating the Consolidated Planning effort. These meetings were
successful in engendering peer cooperation, particularly between Oakland County
and the City of Pontiac. By the year 2000, all of the existing network of
several councils/committees, in Pontiac as well as Oakland County, should be
brought under the Pontiac Enterprise Community umbrella. These organizations
provide a working forum for the many agencies to openly discuss and to better
coordinate activities.
The City of Pontiac will submit proposed projects to HUD on the basis of the City's one-year Action Plan. Future annual Action Plans will emphasize recovery of program income for reallocation to subsequent program years.
Following is a summary of the activities proposed for funding from 1995 program funds;
Fully 69% of the community development investments will occur in the Pontiac Enterprise Community Strategy Area to meet goals and objectives of the Plan. This strategy area was defined to fit HUD guidelines to qualify as an enterprise community competitor. Although applications were favored from the larger inner cities, Plan elements were submitted as a "blueprint" for empowerment in Pontiac.
The Strategic Plan will be acted upon by a 21 member governing board appointed by the mayor. The Area contained 41,988 people in 1990, were predominately low income and a minority population of 63.4%.
Housing activities undertaken during the One-year Action Plan are expected to assist 35 Extremely Low Income, 25 Very Low Income, and 32 Other Low Income households. Activities to assist the homeless are expected to assist 390 households.
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.
TABLE (without associated map) provides information about the project(s).
Arthur F. McClellan, Jr.
Community Development Specialist
PH: (810) 857-5746, ex 157
