The City of Royal Oak contains 7,610.4 acres (11.9 square miles) and is located in the southeast corner of Oakland County -- two miles north of the City of Detroit. Since its incorporation in 1921, Royal Oak has developed as a bedroom community comprised predominantly of single family homes with the majority of the population working outside the City.

Royal Oak is developed as follows: 60% residential, 30% public, 6% commercial; and 4% industrial. The City is characterized by a central business district surrounded by older residential areas.

The population peaked in 1970 at 86,238 and has since declined to 65,410 in 1990. It appears the decline is due to smaller households with less children, more single-member households and more elderly households. The number of persons living per household has decreased over the last thirty years (3.09 in 1970, 2.5 in 1980 and 2.29 in 1990).

In 1990, the median household income for Royal Oak was $36,835. According to HUD, the Adjusted Median Family Income (HAMFI) was $40,961 in 1990. The unemployment rate has decreased from 12.2% in 1982 to 4.8% in 1992.

While the number of minorities (Black, Asian/Pacific Islander, Hispanic, Native American) in Royal Oak has increased, no group accounts for more than 1.1% of the total population.

The housing market in Royal Oak throughout the 1980's was very active. Despite the lack of land, the number of new housing units grew and reached 29,163 in 1990. The number of single family units sold per year in Royal Oak has remained above 1,000 since 1985. This indicates a stable but not inflexible housing supply. The vacancy rate in 1990 for all housing types was 2.8% (lower than the national rate of 10.1%). With its tree lined streets, stable government, low crime rate, and central location, the housing market is expected to remain strong for the foreseeable future.

A. CONDITIONS

Royal Oak's housing stock contains a mix of high, middle and low income neighborhoods. There is no large scale blight or abandonment.

68.6% of housing is one unit, detached (above the national average of 59%). 72.7% of all units are two and three bedroom units. The houses are older with 90.8% of the stock built before 1970 and 18.7% built before 1939. 92.8% of the total units are considered standard and 7.2% are substandard. Of the 2,061 substandard units, 96.8% or 1,996 units are suitable for rehabilitation.

70% of households in Royal Oak are owner occupied (above national average of 64.2%). The percent of homeowners among all minority groups is lower than the City's average.

The price of housing in Royal Oak has been rapidly increasing. According to the U.S. Census, the median housing value for Royal Oak has almost doubled from $44,900 in 1980 to $75,600 in 1990. The City's median housing value is higher than the State of Michigan ($60,600), but lower than Oakland County ($95,400) and the United States ($79,100). The median value of housing is unevenly distributed throughout the City of Royal Oak; census tracts in the northwest corner and west side of the City report higher housing values.

Like housing values, rental prices have been rapidly increasing. From 1980 to 1990, median gross rent increased from $292 to $497.

Purchasing the median priced home of $75,600 in Royal Oak would require a median income between $23,796 to $35,040 (depending on the interest rate) to be affordable (where the owner is paying no more than 30% of gross income for gross housing costs). This means that slightly less than 30% of all Royal Oak households could not afford the median priced home of $75,600. This number improves for families and existing owners, but decreases for non-families and renters.

B. HOUSING NEEDS

1. HOUSING MARKET CONDITIONS

Cutbacks in Federal assistance, a decline in State Social Service funding, higher construction and real estate costs, and an aging housing stock will contribute to the rise in the number of households unable to meet their housing needs over the next five years.

2. AFFORDABLE HOUSING NEEDS

Currently, the City's housing assistance programs are at capacity and have long waiting lists. For 1990, the Salvation Army Royal Oak Citadel Church reported 285 individuals needing housing assistance. Also, the Community Services of Oakland served 400 individuals in need of housing assistance.

a) Extremely Low Income (Income less than 30% of median income)

In 1990, the Median Family Income (MFI) for Royal Oak was calculated at $44,446. Extremely low income households in Royal Oak have incomes of less than $13,334.

Of the 28,361 households in Royal Oak, 2,058 households (7.3% of the total) are considered extremely low income. 83% of the extremely low income households have housing problems.

b) Very Low Income (Income between 31-50% of median income)

Of the 28,361 households in Royal Oak, approximately 2,363 (8.3% of the total) are very low income. Their incomes are between $13,778 and $22,223.

79% of very low income households have housing problems.

c) Low Income (Income between 51-80% of median income)

Of the 28,361 households in Royal Oak, approximately 4,650 (16.4% of the total) are low income. This would place their incomes between $22,667 and $35,559. For renters, about 46% of the households have housing problems. Of the low income large family renters, 29% have housing problems, with small families at 45%.

d) Moderate Income (Income between 81-95% of median income)

Of the 28,361 households in Royal Oak, 2,797 (9.9%) are Moderate Income. These households would have an income range from $36,001 to $42,224.

Of the 2,797 moderate income households, 913 are renters and 1,884 are owners. Of the renters, about 9% of the 913 households have housing problems. For owners, about 18% have housing problems.

e) Elderly Households Needs (No Supportive Services Required)

Elderly households are defined as a one or two person household in which the head of the household or spouse is at least 62 years of age. Royal Oak has a large and growing elderly population. Many elderly homeowners cannot afford to remain in or maintain their homes. For renter elderly households, their needs usually include rental assistance and/or finding senior housing.

f) Mentally Ill Adults

Many mentally ill adults are living in substandard housing, such as unlicensed boarding homes. Others live in standard housing (as a result of rent subsidies), in licensed general Adult Foster Care homes, or shelters for the homeless. Some live in the state psychiatric hospital. Oakland County Community Mental Health Services has identified 19 mentally ill adults in Royal Oak in need of housing assistance.

g) Developmentally Disabled Adults

The Oakland County Commission Mental Health Services has identified only two developmentally disabled adults in Royal Oak capable of semi-independent living in an apartment setting supervised by Community Mental Health programs. Their primary housing need includes decent affordable housing.

h) People with AIDS/ Other Groups

According to the Oakland County Department of Institutional and Human Services, Royal Oak has 26 persons with AIDS as of 7/9/91. At this time, the City has little data on their needs and hopes to expand on this subject in the future.

The City will continue to enforce State Handicap Codes for new housing, public parking and private developments for low income physically handicapped persons.

a) Homeless Populations and Number of Facilities/Services:

South Oakland Shelter: a rotating emergency shelter for homeless families and individuals. From July 1, 1992 to June 30, 1993, 677 individuals were served.

The Sanctuary for Runaways: offers a safe shelter for runaways and homeless youths 24 hours a day. From October 1, 1992 to September 30, 1993, 229 individuals under the age of 17 were served.

A Step Forward: part of the Sanctuary, Inc that provides a transitional living program for homeless teens aged 16 through 19 years. From October 1, 1992 to September 30, 1993, 111 were served.

Warming Center: operated as an affiliate of the SOS Shelter when SOS reaches its licensed capacity.

Salvation Army, Royal Oak Citadel: provides food, clothing, and referral services to the homeless.

Social Services of Oakland County: located three miles east of downtown Royal Oak in the City of Madison Heights and provides financial assistance for food and shelter for the homeless.

Royal Oak Senior Emergency Services (R.O.S.E.S.), provided Home Chore, Personal Home Care, and Home Repair for about 2,959 elderly households in 1990.

Group Homes: The City of Royal Oak is home to approximately 26 Adult Foster Care Facilities (licensed by the Michigan Department of Social Services) and have a total capacity of 128 persons.

Oakland County Regional Interagency Coordinating Committee for Developmental Disabilities provides community living support for the developmentally disabled.

Oakland County Community Mental Health Department provides case management resident support, day treatment and outpatient treatment for the mentally ill.

Oakland County Council for Children and Adults With Psychiatric Disabilities provides community living support for the developmentally disabled.

Kadima, Inc. provides residential support for the mentally ill.

4. PUBLIC AND ASSISTED HOUSING NEEDS:

The City of Royal Oak Housing Commission offers Section 8 tenant based rent subsidy certificate and voucher assistance to very low income families, single individuals over age 62 or persons who are handicapped or disabled (SSD, SSI, or medically documented). 222 households were served in 1993. 150 use rental certificates (20 for elderly households and handicapped persons, and 130 for families). 72 use rental vouchers (5 are for elderly and disabled households and 67 for families). This list is full with a two-year waiting period.

Also, the Michigan State Housing Development Authority (MSHDA) assists a total of 26 units (17 for elderly households, 8 for small families, 1 for a large family).with Section 8 Existing Certificates and Vouchers.

5. BARRIERS TO AFFORDABLE HOUSING

Opportunities for affordable housing created by market conditions include: 1) the reduction in 30-year fixed rate mortgage rates from about 17% in 1980 to 8.5% in April 1995, 2) the state school property tax rate cuts, and 3) moderately priced homes attracting many first- time homebuyers.

Barriers created by market conditions are mainly in the form of rising housing prices. This rise is due to 1) high demand for Royal Oak housing due to its central location, the rejuvenation of its downtown district, and quality City services, and 2) households with higher incomes are attracted to the area forcing the prices upward.

6. FAIR HOUSING

The City tries to ensure equal opportunity for fair housing to all of its residents. The City is a member of the Oakland County Center for Open Housing and supports its activities aimed at encouraging open housing opportunities.

7. LEAD-BASED PAINT NEEDS:

Lead-based paint is more likely found in older housing. It is estimated that 78% of houses in Royal Oak may contain lead-based paint. 77.8% of these have households whose incomes are below 80% of the median income of the area. However, the City's Housing Rehabilitation Program has completed rehabilitation of over 1,650 units without a documented case of lead poisoning.

A. VISION FOR CHANGE - OVERALL GOALS

The City of Royal Oak's housing objectives are to preserve, conserve and expand its housing stock and to take advantage of opportunities to ensure availability of affordable housing for all persons within the community.

B. HOUSING AND COMMUNITY DEVELOPMENT OBJECTIVES & PRIORITIES:

Housing:

1) increase the supply of affordable housing through the rehabilitation and limited construction;
2) provide rental assistance to lower income families and individuals; and
3) meet the housing needs of elderly persons and special populations.

Non-Housing:

1) Preserve and improve the community's infrastructure
2) Expand the City's business tax base and employment opportunities.
3) Provide adequate recreational opportunities for all citizens.

C. HOUSING PRIORITIES

2. OWNERS

PRIORITY #1:	Provide rehabilitation for extremely low income (0-30% MFI) Existing Homeowners
PRIORITY #2:	Provide rehabilitation for very low income (31-50% MFI) Existing homeowners.
PRIORITY #3:	Provide rehabilitation for low income (51-80% MFI) Existing homeowners, and First Time Homebuyers

D. NON-HOUSING COMMUNITY DEVELOPMENT NEEDS

2. COMMUNITY DEVELOPMENT NEEDS:

The City recognizes the needs of the community in low/mod income areas. Therefore, repairs and improvements to sidewalks and parks will continue to be addressed.

3. STRATEGY TO REDUCE BARRIERS TO AFFORDABLE HOUSING:

Presently there are no recognizable public policies of the City of Royal Oak which discourages the development and maintenance of affordable housing.

4. STRATEGY TO OVERCOME GAPS

Royal Oak will continue to work with all levels of government to strengthen current ties and to identify gaps in the delivery of services.

5. INITIATIVES TO INVOLVE PUBLIC HOUSING RESIDENTS:

The City of Royal Oak has no public housing.

6. LEAD-BASED PAINT:

The City provides warnings of lead-based paint hazards as well as inspections for all applicants seeking assistance through the Housing Rehabilitation Program or the ROHC rental assistance programs. To date, neither program has experienced a case of lead-based paint poisoning. The City's strategy is to continue these activities and to respond appropriately if a hazard is detected.

E. ANTI-POVERTY STRATEGY

The City of Royal Oak will continue its economic development strategy as well as its rental assistance and owner rehabilitation program.

F. HOUSING AND COMMUNITY DEVELOPMENT RESOURCES

1. FEDERAL PROGRAMS:

a) Owner Rehabilitation: The City will continue owner rehabilitation program using CDBG funds.

b) Rental Assistance: The City will continue its rental assistance program using Section 8 Rental Voucher Program and Section 8 Rental Certificates Program.

2. Non-FEDERAL PUBLIC RESOURCES

a) State Programs: Royal Oak is attempting to aid a private developer with the development of 50-60 units of assisted rental housing. Development is anticipated through the Michigan State Housing Development Authority (MSHDA) 70-30 program.

b) Local Programs: The City maintains a local landlord licensing program to maintain the quality of rental units. All rental units are inspected and licensed every two years.

3. PRIVATE RESOURCES

a) For Profit: Limited vacant land make development of new units difficult.

b) Nonprofit: Limited vacant land make development of new units difficult.

G. COORDINATION OF STRATEGIC PLAN:

The Community Development Department has mechanisms to link all the listed resources to meet the proposed strategies.

1. PUBLIC INSTITUTIONS

a) Royal Oak Mayor and City Commission: The legislative body which approves the general policies and specific directives of the CP strategy.

b) Royal Oak Community Development Department: Composed of Planning, Code Enforcement & Building, Inspection and Housing Commission departments. The Deputy Director of Community Development will oversee the implementation of the CP.

c) Royal Oak Housing Commission: Contracts with the Department of Housing & Urban Development and operates Rental Housing Assistance Program.

d) Royal Oak Senior Citizens Advisory Committee: Advises the City Commission and City Manager on all matters relating to senior citizen services.

e) Royal Oak Citizens Advisory Committee on Community Development: Assesses the housing and community development needs of the City and recommends both long term and annual programs to the City Commission.

f) Oakland County: Publishes a county-wide CP containing policies for housing development. Provides social services for persons with housing needs and statistical reports to help cities identify their housing needs.

g) State of Michigan: Oversees the Michigan Housing Coordinating Council which publishes a state-wide CP documenting housing needs and strategies. The Michigan State Housing Development Authority administers a number of ownership, homeowner assistance and rental programs.

h) Federal Government: Enacts legislation regarding national housing policies. Allocates funding for federal, state and local governments. Oversees the Department of Housing & Urban Development (HUD), which is responsible for administering and monitoring the major housing programs in the United States.

2. NONPROFIT ORGANIZATIONS

Royal Oak has one nonprofit corporation which operates two elderly housing projects. It also has several nonprofit social service agencies which provide various housing and counseling services.

3. PRIVATE INSTITUTIONS

Financial institutions such as banks and savings and loan agencies set the minimum down payments for mortgages. Financial institutions are required by federal regulators to provide for reinvestment in the communities they serve.

A. DESCRIPTION OF KEY PROJECTS

Section 8 - Royal Oak: There are several housing programs which provide rental assistance for elderly households. The City of Royal Oak Housing Commission will commit approximately $750,000 for rental certificates and $380,000 for rental vouchers through the Section 8 Housing Program.

Section 8 - MSHDA expects to commit approximately $6,000 through Section 8 certificates and vouchers to provide rental assistance.

Co-op Services, Inc. owns two high-rise elderly family developments in the City -- Barton Towers and Royal Oak Manor Co-op. It is expected that Barton Towers will receive $821,173 through the HUD Housing Program 202 to assist 210 elderly households. Royal Oak Manor Co- op expects to receive $56,393 through the HUD Section 236 Housing Program to assist 40 elderly households.

Homeowner Assistance

Rehabilitation: The City of Royal Oak will commit approximately $900,000 through the CDBG Program to provide moderate rehabilitation for about 65 extremely low income existing homeowners.

1st time Homeowners: For fiscal year 1995, it is expected MSHDA will commit approximately $60,000 worth of single family loans to assist about 1 household with homebuyer assistance. Also, it is expected MSHDA will commit about $470,000 to provide mortgage credit certificates for 9 households.

Homeless Needs:

Shelters: For fiscal year 1995, S.O.S. expects to shelter about 677 different homeless persons. The program hopes to receive $30,000 from the Federal Emergency Food and Shelter (FEMA) Program, $27,000 from Oakland County Community Development, and $20,000 from MSHDA (all of which are federal funds). The Sanctuary for Runaways expects to serve about 229 youths under the age of 17. The program hopes to receive $50,000 from the BASIC Center Program for Runaways. A Step Forward expects to receive about $220,000 from the Transitional Housing Program; this will provide a transitional living program for about 111 homeless teens between the ages of 16 and 19 years old. The number of youths in this program from Royal Oak is unknown.

MSHDA will provide approximately $40,000 to support 50 beds for the homeless.

B. GEOGRAPHIC LOCATION OF PROJECTS:

The City intends to direct assistance throughout the City. The MSHDA 70/30 project will take place in the Woodward Avenue/I-696 development area. Other activities are at the locations identified on the project forms.

C. LEAD AGENCIES:

The City has mechanisms and staff in place that provide for the long-term compliance with the plans and policies detailed above. The Community Development Department has direct responsibility for Plan compliance.

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, unemployment levels, and proposed HUD funded projects.

TABLE (without associated map) provides information about the project(s).

Mr. Richard Beltz
Deputy Director
Community Development Department
PH: (313) 544-6644