Moorhead, Minnesota, is located in Clay County on the border with Fargo, North Dakota.
For the first year of the Consolidated Plan, Moorhead will use $489,000 in Community Development Block Grant (CDBG) funds to meet housing needs.
The city's Community Development Department is the lead agency responsible for preparing the Consolidated Plan. Community development staff used 1990 census data and consulted with various agencies, including: the Minnesota Department of Health, the Moorhead Public Housing Agency (MPHA), the Fargo-Moorhead Metropolitan Council of Governments, and local housing and service providers.
In February 1995 the city distributed an invitation to 44 governmental and non-profit housing and social service providers, announcing a public meeting that was scheduled for March. The invitation also was published in local newspapers, posted in the Moorhead Public Library and all MPHA facilities, and announced on the Moorhead Community Access Television network. The city asked service providers to attend the meeting or to supply any information pertinent to the preparation of the Consolidated Plan.
During a 30-day public comment period, which commenced on March 20, 1995, a
draft of the Consolidated Plan was presented to the Moorhead Citizens Advisory
Committee and the Moorhead Human Rights Commission. A second public hearing was
held before the Moorhead City Council.
In 1990 Moorhead's population was 32,295, consisting of 10,996 households. White (non-Hispanic) persons headed 96 percent of all households; Hispanics headed about 2 percent; Native Americans headed 1 percent; Asian Americans or Pacific Islanders headed nearly 1 percent; and African Americans headed less than 1 percent.
Moorhead's low- and moderate-income households can be classified in the following income categories:
Hispanics and Native Americans are disproportionately represented among very low-income households.
Renter households predominate in the extremely low- and very low-income categories. The number of renters and owners are evenly divided in the low-income category. Homeownership is more common among the moderate-income category.
Several population groups affect the city's housing and community
development needs. Elderly households constitute nearly 18 percent of the
population. Three post-secondary educational institutions -- Concordia College,
Moorhead State University, and Northwest Technical College -- have a combined
enrollment of 11,255 students. About 940 migrant farming households are
anticipated in 1995 to enter the city and require some type of public
assistance.
During the next 5 years, Moorhead's population is expected to increase by 2,504 persons, rising to a total of 34,799. If household sizes are maintained at current levels, the city will need require 1,098 additional housing units above the 1990 level to accommodate the population increase.
The primary housing need for extremely low- to low-income households is to reduce cost burdens that exceed 30 percent of gross income. Nearly 68 percent of extremely low- income households have severe cost burdens, paying more than 50 percent of their gross income for housing expenses, while 12 percent of very low-income households have severe cost burdens.
Moorhead State University is conducting an expansion project that will cause 20 homes to be moved or demolished during the next 2 years. These homes are valued between $35,000 and $87,000. Eventide Living Center, a housing development for the elderly, plans to acquire 10 homes within the next 5 years to construct parking and additional assisted living facilities for the elderly. The city does not anticipate losing any other units from the current affordable housing inventory.
In 1990 the total number of housing units was 11,857. Since that time 474 multifamily units and 469 single-family homes have been constructed, increasing the housing inventory to 4,873 (41 percent) multifamily and 7,133 (59 percent) single-family units.
Recently constructed single-family homes are available in many price ranges. In 1994 nearly 24 percent of these homes were valued under $75,000, and another 25 percent were valued between $75,000 and $90,000. Of the remaining units, 19 percent were valued between $105,000 and $120,000, and almost 24 percent were valued over $120,000. Only a small percentage of homes were valued between $90,000 and $105,000.
The Fargo-Moorhead Apartment Association does not maintain median monthly rental data, and advertising does not list this information consistently. The 1990 census reported, however, that the median contract rent was $311 per month. Also, the U.S. Department of Housing and Urban Development (HUD) reports that the current fair market rent for a two- bedroom apartment is $467 per month.
In 1990 the vacancy rate was 5.2 percent for rental units and 1.6 percent for owner units. In 1994 Appraisal Services, Inc., estimated that the annual rental vacancy rate was 10.1 percent. Since 1990 Moorhead's annual rental vacancy rate has almost doubled. The seasonal housing demands of migrant farmworkers and university students may account for a portion of this high vacancy rate. Some units also are undesirable or have been removed from the market because of physical deterioration.
Cost burdens affect nearly 10 percent of all city households, especially extremely low- to low-income renter and owner households. Among extremely low-income households, approximately 555 renters pay more than 30 percent of their gross income for housing expenses, while more than 500 owners pay more than 30 percent. Rental assistance and more affordable single-family housing are needed.
In 1994 there were approximately 1,120 homeless persons served in Moorhead. Nearly three-fourths of the homeless were served by emergency shelters, and one-fourth lived in transitional housing. No information was available on the number of unsheltered homeless persons or on the number of homeless persons with special needs.
Numerous agencies cooperate through a service coalition to provide homeless persons with quality services. Many of these services are located in the Clay County Family Service Center, which facilitates collaboration by simplifying intake and assessment procedures. Collectively the homeless service organizations provide: outreach and assessment, emergency shelter, transitional housing, permanent supportive housing, access to permanent housing, and homelessness prevention services.
The MPHA operates four housing developments -- Riverview Heights, Village Green, Scattered Site, and Sharpview -- which contain a total of 224 units. One-bedroom units constitute 65 percent of the public housing inventory; two- and three-bedroom units compose 31 percent; and larger housing units constitute less than 5 percent. Furthermore, 96 units are located in the Riverview Heights development.
Although Moorhead's public housing is generally in good condition, modernization repairs and accessibility improvements are greatly needed. An estimated $2.8 million is needed for the following: to modernize elevators to comply with State requirements and the Americans With Disabilities Act; to convert 5 percent of all MPHA units to accessible dwellings; to provide accessible laundry, parking, restrooms, and walkways; and to install necessary signs, fire alarm systems, and automatic doors. Some of Moorhead's Supplemental Flood CDBG allocations held over from 1993 and 1994 are being used to improve emergency and safety systems to prevent future flood damage.
In addition to its public housing inventory, MPHA administers 25 Section 8 certificates and another 26 rental assistance certificates through the Minnesota Housing Finance Agency to provide transitional housing opportunities to persons with serious mental illness. As of March 1995, 180 applicants appeared on MPHA's waiting list, and one-fourth of them were elderly and/or disabled persons.
The Clay County Housing and Redevelopment Authority independently administers 317 Section 8 certificates and vouchers, which may be used in Moorhead. There are also 281 privately operated subsidized housing units in Moorhead.
The city's land use controls, which are enumerated within its comprehensive plan and zoning ordinances, do not constitute barriers to affordability. Minnesota's property tax structure, however, imposes a much greater burden on rental property and can impede affordable housing because it increases costs for owners and renters of multifamily housing. The property tax also discourages the conversion of single-family homes into rental properties, which could provide rental units for large families.
The Fargo-Moorhead Apartment Association has established a training program on fair housing and appropriate conduct for site managers. The program is open to all Association members and the general public.
The 1990 census counted 9,506 homes built before 1979, when residential use of lead- based paint was banned. Low- and moderate-income persons occupy half of these homes. According to National statistics, an estimated 424 (9 percent) homes have interior lead- based paint hazards, while 1,838 (39 percent) have exterior lead-based paint hazards.
The Minnesota Department of Health documented two cases of lead poisoning in 1993 and four cases in 1994 in Moorhead. In late 1994 MeritCare Medical Group provided free lead screening to all children between the ages of 6 months and 6 years to determine the extent of lead poisoning. Most of the children with elevated blood-lead levels were exposed primarily through contact with their parents' clothing, which had been contaminated by occupational hazards rather than household environmental conditions.
The elderly and persons with disabilities who have low, fixed incomes need supportive services in conjunction with significant rental subsidies. Accessibility modifications and improvements to existing rental and owner-occupied units are needed. The city will consider support of applications for Supportive Housing for the Elderly (Section 202) and Supportive Housing for Persons with Disabilities (Section 811) funds to facilitate the development of two communities designed for these populations.
Moorhead's priority community development needs include economic development, public services, and public facilities. Employment that offers greater earning potential could decrease housing cost burdens without increasing subsidies.
In 1993 a recreational program for children and youth was started in a neighborhood with a high incidence of urban problems. The program, known as Neighborhood Revitalization Zones, since then has been expanded to encompass three target neighborhoods and has broadened its scope to include crime watch, neighborhood capacity building, home-school liaisons, and youth employment. The community wants to continue and expand this program.
The increased awareness of youth issues led the city, Moorhead schools, Clay County, and a host of volunteers to embark on "Moorhead Healthy Community Initiative." Using an asset building model developed by Search Institute of Minneapolis, the program is developing a plan to foster youth during the critical teen years to become healthy, productive members of society.
Moorhead needs a senior citizen center. The current facility is undersized and inadequate to meet the needs of the community's growing elderly population.
Moorhead's Community Development Department is the lead agency responsible
for preparing the Consolidated Plan. Community Development staff encouraged
local and State agencies to provide information about the housing needs of
clients. This collaboration, coordinated by the Community Development
Department, helped the city to develop its assessment of housing and community
development needs.
During the next 5 years, Moorhead will allocate its funding assistance to support housing rehabilitation activities, land acquisition, infrastructure improvements, code enforcement, technical assistance, and administrative needs. The city's goals include:
High priority was assigned to correcting physical defects in extremely low- to low-income owner-occupied houses with physical deficiencies.
Medium priority was assigned to reducing severe cost burdens for extremely low- and low- income households. Medium priority was also assigned to alleviating overcrowded conditions among large-family households.
High priority was assigned to providing emergency shelter and permanent housing to homeless individuals, families, and persons with special needs. High priority was also assigned to providing transitional shelter to homeless individuals.
Non-housing community development priorities established during the planning process include:
Available programs and initiatives to reduce poverty in Moorhead include: the Minnesota Housing Finance Agency and the Minnesota Departments of Human Services, Economic Security, and Trade and Economic Development. The city's Economic Development Authority cooperates with the State in these efforts and helps to develop jobs within the community.
To promote anit-poverty efforts, the city's educational institutions address a broad spectrum of continuing education needs, ranging from English as a second language and literacy programs to advanced degrees.
To implement its Consolidated Plan, Moorhead will use CDBG funds and will coordinate them with resources from numerous public and private agencies.
Moorhead's Community Development Department will coordinate delivery of
housing and community development activities by cooperating with local private
and non-profit agencies as well as State agencies involved in these activities.
The single-family home, rental rehabilitation, and code enforcement activities
will be centralized in the Community Development Department. The Clay County
Family Service Center consolidates several housing and other support services in
its newly established location. The Community Development staff will provide
technical assistance and guidance to two private non-profit organizations,
Dorothy Day House and Moorhead Healthy Community Initiative.
For Fiscal Year 1995-1996, the main CDBG activities will be citywide and will involve housing rehabilitation, code enforcement, housing and infrastructure development, and public services for children and youth. Key programs planned for the first year of the Consolidated Plan include:
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; in addition, a table provides information about the project(s).
Lisa Vatnsdal
Community Development
500 Center Avenue
Moorhead, MN 56560
Phone: 218-299-5370
Fax: 218-299-5399
