U.S. Department of Housing and Urban Development
Office of Community Planning and Development


Consolidated Plan Contact

CITIZEN'S SUMMARY

Sterling Heights' Consolidated Plan is a comprehensive planning tool for the City to meet their development goals when applying for Federal funds under various formula grant programs offered by the Department of Housing and Urban Development

Action Plan

The Consolidated Plan presents a strategic plan for housing and community development. It includes a One-Year Action Plan for spending approximately $802,000 in Community Development Block Grant (CDBG) funds and program income during the 12 months starting 1 June 1995. These funds will be spent primarily on neighborhood improvements, housing rehabilitation and a variety of public services.

Citizen Participation

No citizen comments were received during the development of the Consolidated Plan or in response to the 30 day public notice published in the local newspaper on April 9, 1995.


COMMUNITY PROFILE

Location

The City of Sterling Heights occupies a 36.7 square mile area in the southwest portion of Macomb County, Michigan. The City is located eighteen miles from downtown Detroit, and thirty-five miles from Detroit Metropolitan Airport. The City Shares a common boundary with the City of Troy in Oakland County to the west and with the following five Macomb County communities: Shelby Township, Clinton Township and the cities of Utica, Warren and Fraser (see illustration 1).

History

The City was originally organized as Jefferson Township in 1835. The Community maintained its township status until it became incorporated as a City on July 1, 1968. The original Charter adopted at the date of incorporation calls for a Council-Manager form of corporation. The residents of the City elect, at-large, the Mayor and six qualified residents to serve as the City Council for two year terms.

For much of its history, Sterling Heights was predominantly a rural community. This profile of the community changed dramatically in the decades of the 1960's and 1970's. The City increased by over 94,000 residents in this twenty year span. This expansion was largely fueled by the development in the

City's six square mile industrial corridor located between Van Dyke Avenue and Mound Road. During this time, the City was also becoming a place in Macomb County representing the suburbanization of America. This was a time when many people from the City of Detroit decided on a suburban lifestyle to live and raise their children. Newcomers were demanding an upgrade in their total quality of life including modernization in the style of their homes such as bi- and tri-level house designs, double car garages and larger lot sizes.

During the 1980s and 1990s, The City became more of a middle-class residential community attracting pre-retirement aged home buyers and young professionals with higher income. This occurrence is due to several factors including the fact that Sterling Heights still had undeveloped land and that there were other upscale communities in neighboring Oakland County that had already had success with the "smart-home" concept. At the same time, major emphasis was placed on the preservation of the environment, larger lot sizes, and special development options thus, allowing condominium development in single-family zoned districts. Builders met the market demand for smart-homes as well as the demand of the low maintenance home shopper. These subdivisions of new homes became popular in an environment of blending open space with residential living. Development of the priciest homes is taking place in the northwest quadrant of the City representing the last division of the City left largely undeveloped (see illustration 2).

Population

Explosive growth over the period between 1960 and 1980 leveled off to moderation for the decade of the 1980s and beyond. The 1990 Census placed the City's population at 117,810, this figure represents Council of Governments anticipates modest population increases for the City to 136,364 by the turn-of-the-century and to 145,867 persons by the year 2010.


HOUSING AND COMMUNITY
DEVELOPMENT NEEDS

Conditions

Conditions in the City relative to our projection of progress in Community Development looks good. The key indicators are population, employment, personal incomes, property values and business activity. The population of Sterling Heights is projected to increase modestly over the next year. The best estimate shows a 1995 population of approximately 122,000, 2.5% over the 1990 Census. In 1994, the unemployment rate in Sterling Heights was 5.3% -its lowest rate in many years. This is due in part to the diversification of employment in the City in terms of new industries and trained workers. Resident income levels are among the highest in the State and above the average nationally. The City continues to attract and retain business and industry. The M-59 8-lane widening project represents a corridor of opportunity for new business development. It is said to be Macomb County's most important infrastructure improvement in several decades. The Sterling Heights portion is scheduled for completion in November, 1996.

Housing Market Conditions

According to the 1990 Census of Population and Housing, there were 42,317 year-round housing units in the City of Sterling Heights. Seventy-four percent of these units are single-family, 21% are multiple family and 5% of these units are located in the City's two mobile home parks (see illustration 3). At the time of the 1990 Census, 96% of all units were occupied.

Sterling Heights has four single-family zoning districts. Much of the City's residential neighborhoods were developed under the R-60 designation. Much of the most recent single-family development activity involves lots with wider frontages and larger minimum areas. This undoubtedly reflects a market preference for larger homes and bigger lots.

In the last fifteen years, building permits issued for the construction of new homes remained low between 1980 and 1983 as the total market experienced double digit interest rates. Following this period of slow growth, housing construction trends in the City significantly increased between 1984 and 1989. Between 1980 and 1990, Sterling Heights was among the top ten communities in southeast Michigan relative to the number of housing permits issued.

Construction of new homes, in certain subdivisions, has been geared towards the upscale market above $200,000. Builders have equipped these new homes with "smart technology" making them much more energy efficient with built-in creature comforts. Many Sterling Heights residents are trading-up into the new homes which increases the availability of older homes. These older homes built primarily in the 1960s and 1970s are modern homes affordable to the middle income shopper. These older homes in the $80,000 to $95,000 range appreciated over time due to inflation and the desirability of Sterling Heights, ranked high, as a place for raising a family. The market therefore leaves little else to the low and moderate income families in the single-family housing market.

The growth period of the 1980s for single-family homes was also true in the number of multiple family units. The inventory of multiple family units expanded by nearly 6,000 units bringing the total number to 8,882 units in 1990. The tremendous increase in multiple family units also increased the vacancy rate. The multiple family market increased its vacancy rate from a very tight 0.2% in 1980 to 8.6% in 1990. The vacancy rate for the single-family housing market, on the other hand, open slightly from 1.0% in 1980 to 3.5% in 1990. The industry considers a stable housing market vacancy rate to be between three and five percent.

Affordable Housing Needs

The Comprehensive Housing Affordability Strategy (CHAS) Databook provides statistics indicating the number of households with incomes below the Median Family Income (MFI) for Sterling Heights. The City has taken a comprehensive approach to addressing housing affordability. Our Five-Year Strategic Plan, mentioned later in this report, states our priorities for improving housing affordability for Sterling Heights residents. The CHAS Databook indicated that there were 4,740 renter and owner units with household incomes at or below 50% of the 1990 Median Family Income of $46,470 for Sterling Heights. The City's two highest priorities in addressing the needs of these residents are housing rehabilitation and Section 8 Rental Assistance. Subsidized housing within the City is another helpful part of our housing strategy.

Public and Assisted Housing Needs

There are six privately owned and one City owned subsidized housing facilities with a total of 1,336 units. This figure represents approximately 3.2% of the City's total housing supply. 70% of these units are occupied by families. The remaining 30% are occupied by elderly or handicapped residents. As shown in illustration 6, the subsidized housing facilities are scattered throughout the City and is not concentrated in any given sector. This housing is relatively new (less than 20 years old) and most of it is in excellent condition. No losses are anticipated which will effect the inventory of any type of assisted housing units. These units are all full and they all have waiting lists of applicants.

Barriers to Affordable Housing

The Sterling Heights economy is market driven. It is located within one of southeast Michigan's most dominant economic growth corridors. The City's major development occurred at a time when migrants were thinking in terms of upgrading their own living standards. City owned land was developed into parks. Subsidized housing was built by opportunists when financing options were most attractive. The undeveloped land left in the City is considered "prime." If there are any barriers to affordable housing, it would have to be the market forces.

Homeless Needs

The condition of homelessness is addressed on a County-wide basis rather than the local level in Macomb County. Homelessness does not migrate to Sterling Heights. All of the shelter facilities exist primarily in the Cities of Warren, Mt Clemens and Clinton Township (see illustration 5). Figures may misrepresent the actual number of homeless persons due to the difficulties of counting persons without addresses. Data extrapolated from all sources resulted in our estimate that homeless persons with last regular addresses in Sterling Heights was around 400. The City will work with County and State agencies to encourage shelters and supportive housing.

Certifications

In accordance with the applicable statutes and the regulations governing the consolidated strategy and plan regulations, this jurisdiction certifies that it will comply with all of the certifications including certifications for Citizen Participation Plan, Fair Housing, Anti-Discrimination, Drug Free Workplace, Excessive Force, Anti-Lobbying and all other certifications specific to CDBG entitlement communities.

Community Development Needs (short term)

The City's plans for the short term are the continuation of on-going C.D.B.G programs designed to assist low and moderate income homeowners and renters with the costs of maintaining their homes and the neighborhood improvement to Heins Gardens Subdivision.

Coordination

The Mayor and City Council are the legislative body for the City and they approve the overall program budget and all amendments. The administration of programs and projects is directed through the City Manager's Office and then delegated to the primary Office of Public Development Administration. The Offices of Planning & Zoning, Building, Accounting, Treasury and the Department of Parks & Recreation also have roles of responsibility in this endeavor. Coordination also involves the inputs from subrecipients awarded grant funds. The Citizen Advisory Committee (CAC) members are appointed by City Council. The Citizen Advisory Committee provides the public forum and input for the various C.D.B.G programs and projects and advises Council therewith.


HOUSING AND COMMUNITY
DEVELOPMENT STRATEGIC PLAN

Vision For Change

The City's ultimate goal is to preserve and improve a living environment that is clean, safe and affordable for residents of all ages, race and income levels. The challenge to the City is attaining this goal is providing an adequate safety net for those residents who will be adversely affected or are otherwise in need of housing assistance and are eligible for C.D.B.G assistance. The C.D.B.G Program should be on-going and available to residents for addressing social and economic forces which can negatively impact people's lives. The threats to maintaining affordable housing include 1) inability of income to keep up with inflation, 2) divorce, 3) job loss and 4) single parent households with children.

Community Development Objectives (long term)

The City's Five-Year Strategy includes a set of priorities for allocating resources among various types of affordable housing programs and re-education programs. The set of priorities are as follow:

Housing Priorities

Our housing priorities are to fill the needs of home repair and home improvements in low and moderate income households and to assist needy elderly households with home chores.

Non-Housing Community Development Priorities

Our non-housing community development priorities include neighborhood revitalization and to improve the safety and living environment of the City through the provision of adequate streets, sidewalks, storm and sanitary sewers, water and waste disposal facilities, and off-street parking.

Anti-Poverty Strategy

In order to reduce the number of households below the poverty line, jobs and education programs undertaken by Federal and State governments as well as local initiatives to make the City an even more inviting place to locate a business will have to be done. The Office of Public Development Administration markets the City's wonderful qualities as a desirable place to locate a business and to live. Marketing videos are dubbed in foreign languages and sent to business organizations the world abroad.

Other activities that will assist in preparing the Sterling Heights workforce for employment includes the Single Parent Education Program which is funded in the City's 1995/96 C.D.B.G entitlement. This program provides financial assistance to single parents and displaced homemakers with the costs of attending college and acquiring job skills.

Housing and Community Development Resources

State resources which have been used to assist Sterling Heights residents with housing affordability has been through MSHDA Single-Family Mortgage Loans and MSHDA Mortgage Credit Certificates. Over the past two years, MSHDA has spent $216,100 in mortgage loans assisting (3) three residents and has spent $569,806 in the Mortgage Credit Certificate Program assisting (10) ten residents with mortgage interest payments. No MSHDA home improvement loans were recorded for this period.

Financial assistance from banks and other financial institutions have assisted low and moderate income residents with home improvement loans. No records were provided to us as to the extent of this type of assistance. Private sector benefits designed to assist qualifying applicants for home improvement loans are often more attractive than State benefits.

Coordination of Strategic Plan

Macomb County agencies provides the coordination and network to housing related governmental, non-profit and private sector programs and services that are working to implement the goals of this consolidated plan as it relates to broader issues. The City will participate in coordination efforts on an as-needed basis and through initiatives of it own. For example, The City is exploring its options of possibly donating a residential lot to Macomb County Habitat For Humanity for new construction of a house which will benefit a low/moderate income family.


ONE YEAR ACTION PLAN

Description of Key Projects

  1. Heins Gardens Subdivision Neighborhood Improvement Project - involves physical improvements to include streets, sanitary sewer, storm drainage and drive approaches to eight streets.

  2. Senior Citizen Center Expansion - involves expansion of the existing senior center at 40620 Utica Road.

  3. Schoenherr Towers Senior Housing Improvements - multipurpose room expansion, kitchen expansion, exercise room, and garage.

Maps

MAP 1 - City map with points of interest.

MAP 2 - City map with points of interest and low-moderate income areas.

MAP 3 - City map with points of interest and areas of minority concentration.

MAP 4 - City map with points of interest and unemployment levels.

MAP 5 - City map with points of interest, unemployment levels and selected projects.

MAP 6 - Neighborhood map with points of interest, unemployment levels and selected projects.

Contact Person: Mr. Al Cooper, Public Services Department, (810) 977-6123 ext. 194
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