Warren, Michigan, is located in the southwest corner of Macomb County. The city shares a common boundary with Wayne County to the south and with Oakland County to the west. Warren has more than 1,000 industrial establishments and more than 1,200 retail establishments that provide employment to more than 70,000 people. The largest employer is General Motors Technical Center, followed by General Motors Hydromatic Division, and Chrysler Corporation.
Warren anticipates having $1.8 million in Federal funds to implement its Consolidated Plan in the first year. These funds come from the Community Development Block Grant (CDBG) program, the HOME Investment Partnership Program (HOME), and repayments of previous years CDBG rehabilitation loans. Among the main projects to be carried out this year are the construction of new housing, community police protection, redevelopment of Trombley Park and the provision of low-interest loans for rehabilitation of owner and rental housing.
Macomb County housing agencies and support service providers were interviewed and invited to take an active role in the development of the Consolidated Plan. The first public hearing was held on December 1, 1994, in the Warren City Hall. A notice was published, and more than 40 letters of invitation were sent. More than a dozen public agencies, nonprofits, and groups seeking to become nonprofits attended the meeting.
On April 3, 1995, the notice for the second public hearing, scheduled for
April 25, 1995, was published in the Macomb Daily. Another notice was
published on April 12, 1995, in the Warren Weekly. On April 3, 1995,
draft copies of the Consolidated Plan were made available at City Hall and at
all libraries for the 30-day review period. The city council adopted the
Consolidated Plan on May 9, 1995.
In 1990 Warren's population was 144,864, a 10 percent decrease from 1980. Also in 1990 the average age of residents was 35.7 years, up from 30.4 in 1980. Warren is a homogeneous community; Hispanics represent 1 percent of the population, and African Americans represent 0.7 percent of the population.
Warren's median family income (MFI) is $41,504, somewhat higher than the
$40,910 MFI for the Detroit Metropolitan Statistical Area. According to U.S.
Department of Housing and Urban Development (HUD) data, Warren has 4,491
extremely low-income households (0-30 percent of MFI), 5,470 very low-income
households (31-50 percent of MFI), 10,132 low- income households (51-80 percent
of MFI), and 4,827 moderate-income households (81-95 percent of MFI). Together,
households with incomes below 95 percent of the Warren median account for 45
percent of all households in the city.
Approximately 69,323 people were employed in Warren in 1990, a drop of almost 8 percent from 1980. The number of unemployed persons, however, dropped 35 percent during the same period. Of those employed in 1990, 21,280 lived and worked in the city and the remaining 46,000 workers were employed outside of the city.
While most Warren residents live in decent, safe, and sanitary housing, some residents live in housing that needs moderate or substantial rehabilitation. Since the city's housing stock is aging, conservation and rehabilitation of the existing housing stock continues to be a major long-term strategy for the community. Ninety percent of extremely low-income households, 58 percent of very low-income households, 28 percent of low-income households, and 12 percent of moderate-income households experience housing problems that are defined as serious physical defects in the unit, overcrowding, or spending half or more of income for housing.
Even though the population of Warren has decreased by more than 10 percent in each of the last two decades, the number of total housing units has continued to increase. The pace of new housing growth, however, has slowed considerably during the last two decades, mainly because of a shortage of vacant land.
Macomb County has a tremendous demand for housing, as attested by increased construction in the outlying communities. There is also a strong demand for existing housing as demonstrated by a vacancy rate of less than 2.8 percent in 1990. Owner-occupied units account for 79 percent of the total occupied housing stock. The vacancy rate in 1990 was about 6 percent for rental units and less than 1percent for housing units.
The median value of owner-occupied housing units in the city, according to the 1990 census, was $69,500, which was slightly lower than the Macomb County median value of $76,800. More than two-thirds of all housing is priced in the $50,000 to $99,999 bracket. One-fourth of the homes are priced at less than $50,000. Few homes in the city exceeded a cost of $100,000. In 1990 the median contract rent for Warren was $436, which compares closely with Macomb County's median contract rent of $437. The city's contract rental rates range from a low of $197 to a high of $683.
Every year since 1980, the percentage of residents able to buy a house has declined. Although median income, adjusted for inflation, has remained largely stagnant since 1977, the median price of housing has doubled, and homeownership costs have tripled.
Despite the increase of two-income families, an affordability gap of approximately $10,000 a year separates the average family, earning $30,000 a year, from the median-priced home. Since the late 1970s, mortgage interest rates have increased the gap. Although current mortgage interest rates have dropped to about 8 percent from the all-time high of 16 percent in 1981, this decrease has been counter-balanced by increases in other costs.
More than 90 percent of extremely low-income renters and 90 percent of extremely low- income homeowners spend more than 30 percent of their income for housing. Half of extremely low-income homeowners and 98 percent of renters in this group spend more than 50 percent of their income for housing. Among very low-income households, 79 percent of renters and 47 percent of homeowners spend more than 30 percent of their income for housing; 29 percent of renters and 12 percent of homeowners spend more than half of their income for housing. Among low-income households, 42 percent of renters and 19 percent of homeowners have a cost burden of 30 percent or more; only 1 percent of renters and 2 percent of homeowners spend more than half of their income for housing.
According to the Macomb County Task Force, approximately 2,000 homeless were sheltered within the county during the first 11 months of 1991. Approximately nine agencies provide shelter, services, or both in Warren and surrounding areas. The city needs emergency shelters, but there appears to be an even greater need for support systems with financing to assist households with their economic problems and maintaining their homes.
Assisted housing opportunities are limited in Warren. Neither the city nor its housing commission owns or operates any public housing. However, the Warren Housing Commission owns and operates the Stillwell Manor senior citizen complex, which has 364 units. Three other privately owned, assisted complexes provide 556 units for elderly and family tenants. Michigan's Department of Social Services provides Section 8 rental assistance certificates or vouchers for 97 families, most of whom live in two-bedroom units.
In 1989 the United Community Services Agency studied the problem of decent, affordable housing in Macomb County. The study looked at factors, such as homelessness, skyrocketing housing prices and rents, deplorable living conditions, rising poverty, slashed subsidized housing programs, and escalating mortgage rates and fees. The rapid inflation in housing costs, combined with the inability of renter incomes to keep pace with inflation, has been a major contributor to the problems of affordability and inadequate housing for many low-income renters.
Proper zoning, low interest rates, relatively inexpensive land costs, and moderate development and construction costs have created an attractive housing market in Warren. Most local laws and ordinances do not create a barrier, and according to the city, the zoning ordinances, building codes, and public policies have encouraged affordable housing.
During 1994 the city completed a draft of its study on impediments to fair housing. The report includes an analysis by the Fair Housing Center of Metropolitan Detroit and a survey of mortgage and home improvement lenders, realtors, and rental managers of large apartment complexes. The draft identifies areas of fair housing concern and suggests potential actions and programs. The report is under review by several city departments. After review and suggestions for revision, it will be submitted to the mayor and City Council for action.
The use of lead in paint was banned in 1978, but the city has 51,763 dwellings that were constructed before 1980. The city estimates that about 31,810 of the dwellings containing lead-based paint are occupied by low-income families. The 2,325 homes built before 1940 have the highest risk of lead-based paint hazards. This group represents about 4 percent of the units built before 1980.
Warren will work with the Macomb County Health Department to develop an information sheet outlining basic procedures for repainting and remodeling older homes. This information sheet will caution against such remedies as sanding or scraping finishes that might contain lead and will encourage such remedies as wet mopping and using selected cleaning materials when washing wall and cabinet surfaces. The city will continue to collaborate with the Macomb County Health Department to monitor new findings and programs that may eliminate lead-based paint hazards.
Until the late 1980s, the Macomb County Health Department conducted screening tests of nearly 4,000 children under age 7 each year for elevated blood-lead levels. If elevated blood levels are suspected, the Health Department will still perform blood tests and inspect residences to analyze paint and determine possible sources of lead hazards and methods of addressing them. The current reporting system requires any physician, hospital, or clinic diagnosing a case of lead poisoning to report the incident to the County Health Department. No reports of lead-based paint poisoning of Warren residents have been received during the past 7 years.
Warren has a number of populations with special needs, including a relatively large and growing senior population. Services needed for this group include housing rehabilitation, transportation, food service, medical assistance, and other programs. The needs of the frail elderly are even more pronounced. In many cases their needs exceed what families and friends can provide, necessitating more active intervention and additional supportive services.
Based on the number of people with mental illnesses on waiting lists for supportive housing, Michigan estimates that 600 to 900 units of supportive housing are needed for this group. Proportionately, Warren would have a maximum of 14 households in need.
Services for persons with physical disabilities are provided by the Oakland/Macomb Center for Independent Living in Sterling Heights. During the last fiscal year, the center provided services to 498 people. Of those, eight requests were made by Warren residents.
The city's main community development needs include rehabilitation of housing, revitalization of neighborhoods in south Warren, revitalization of parks and recreation facilities, provision of senior citizen services, crime awareness and education, and continued code enforcement. Some infrastructure improvements are needed, particularly in the South Warren area.
The city has also recognized the need to create a nonprofit housing
organization which can rehabilitate or build affordable housing and assist in
the revitalization of neighborhoods. It is anticipated that ultimately this
organization would become a Community Housing Development Organization (CHDO).
Warren's housing goals include the following activities:
Warren's non-housing community development goals include encouraging and coordinating supportive services. Many of the social service needs of low-income Warren residents are addressed by Macomb County, State agencies, and nonprofit organizations. The housing needs of homeless people and families are met mostly through the Macomb County network of social services. Unmet needs continue to exist in homeless prevention programs; however, support services are also needed for youth and for special needs groups within the homeless population.
In addition to Federal resources, Warren will have access to a number of State, local, private for-profit, and nonprofit resources with which to accomplish the goals identified in this plan. One of the State resources is the Michigan State Housing Development Authority (MSHDA) Single-Family Mortgage Program, which provides mortgage loans through its mortgage revenue bond and mortgage credit certificate programs. MSHDA also provides home improvement loans and programs, such as the Low Income Housing Tax Credit and the 80/20 Direct Loan Program for developers or nonprofit organizations.
The city may offer direct assistance to developers, such as selling land at or below market value, waiving certain processing or development fees, or assisting with the installation of infrastructure or public utilities.
The Salvation Army of Warren, through its extensive network of ministers, social workers, managers, and volunteers, offers programs for the elderly, families in distress, troubled youth, ex-offenders, persons with alcohol or drug dependencies, persons with mental and physical disabilities, the hungry, the homeless, and populations with other needs.
The following entities will continue to play key roles in coordination of Warren's affordable housing efforts:
Housing activities will continue to be coordinated with the CDBG Committee,
HUD, Macomb County, MSHDA, Housing Opportunities for Macomb and local
organizations.
Key projects that Warren proposed in the Consolidated Plan will receive the following allocation of funds:
The Warren CDBG program staff served the lead role in developing the Consolidated Plan. The CDBG Technical Coordinating Committee, which consists primarily of city department representatives, provides the overall direction and coordination for this plan. Community Planning and Management, P.C., Warren's administrative consultant, also provided technical assistance.
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 is a map, sectioned by neighborhood, which depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects.
MAP 7 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects within one of the four neighborhoods indicated in MAP 6.
MAP 8 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects within another of the four neighborhoods indicated in MAP 6.
MAP 9 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded project(s) from a street level vantage point.
Dennis Meagher
Interim Director
810-574-4687
