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

CITIZEN'S SUMMARY

The State of Missouri is located in the heart of the American Midwest. Its economy is driven by a diversity of industries, including manufacturing, transportation, and agriculture. Missouri is a national leader in corn, grain sorghum, soy bean, and cattle production.

Two of the country's greatest rivers flow through the State -- the Mississippi on the eastern border and the Missouri in the middle of the State. The interstate highway system provides direct access to neighboring States such as Kansas and Illinois and to major metropolitan areas such as Chicago, Memphis, and Denver. Transworld Airlines has a hub in St. Louis, on the eastern side of the State.

Action Plan

For the first year of the Consolidated Plan, the State of Missouri is requesting $12.7 million in HOME Investment Partnership Program (HOME) funds, $998,653 in Housing Opportunities for Persons with AIDS (HOPWA) funds, $2.7 million in Emergency Shelter Grant (ESG) funds, and $30 million in Community Development Block Grant (CDBG) funds. This Federal funding will be augmented with $26.4 million from the Missouri Housing Development Commission (MHDC).

Citizen Participation

In August 1994 the Consolidated Plan work group was initiated and several meetings were held to discuss the process and the players. The first public meeting on the planning process was held on November 8, 1994, in the State capital of Jefferson City. This meeting provided all constituents an opportunity to discuss needs within the State and comment on proposed programs. A second public hearing was held on January 23, 1995, to obtain comments on the draft Consolidated Plan, which was made publicly available on December 15, 1994. Written comments were solicited in the public hearing notice issued with the draft plan. That public hearing was attended by approximately 30 persons.

COMMUNITY PROFILE

The 1990 census indicates that the total population of the State of Missouri is 5,117,164, an increase of 4 percent since 1980. About 68 percent of Missouri's citizens live in urban areas that include Columbia, Joplin, Kansas City, St. Joseph, St. Louis, and Springfield. Kansas City, with a population of 435,000, is the largest city in the State.

The number of households in Missouri increased by 9 percent during the 1980s, to a total of 1,961,000 in 1990. Of these households, 87 percent were white; 10 percent were African American; and less than 3 percent were Hispanic, Native American, and Asian American. Approximately 85 percent of African-American households and 60 percent of Hispanic households in the State live in the Kansas City or St. Louis metropolitan areas.

Missouri defines household income levels relative to median family income (MFI) as follows:

Extremely low-income -- earning 0-30 percent of MFI.
Low-income -- earning 31-50 percent of MFI.
Moderate-income -- earning 51-80 percent of MFI.
Middle-income -- earning 81-95 percent of MFI.

Out of 1,961,000 households in 1990, 237,752 were extremely low-income, 226,877 were low-income, 348,492 were moderate-income, and 169,919 were middle-income. Of 813,121 households with incomes below 80 percent of MFI, 54 percent were homeowners.

Per capita income increased from $12,500 in 1980 to $15,300 in 1990, a 22-percent increase. The statewide MFI increased slightly to $28,400. Missouri ranks above both the national and Midwest averages for percentage of population living below the poverty level. The greatest concentration of low-income persons is found in the major metropolitan areas. However, a significant concentration of low-income families live in the southeast region of the State in Pemiscott (36 percent) and Ripley (31 percent) counties.

HOUSING AND COMMUNITY
DEVELOPMENT NEEDS

Conditions

Any profile of Missouri would be incomplete without mentioning the impact of the Great Flood of 1993. From April to November 1993, and again in April 1994, Missouri was devastated by the worst flooding in more than a century. All but two of the State's 114 counties were declared disaster areas in 4 separate presidential declarations. In some parts of the State, farms and homes stood under water for up to 7 months. The flood exacerbated an existing affordable housing shortage. Nearly 2 years later, the effects of the flood are still evident throughout the State.

In 1990 Missouri's labor force (persons age 16 or over who are working or looking for work) represented more than half of the population. The labor force grew by 14 percent during the 1980s. This growth in the labor force can be attributed to several factors, including:

Displaced homemakers who may have entered the labor market.
Previously employed workers who may have reentered the job market.
Many children who were under 16 in 1980 and are now in the job market.

Many of the jobs in Missouri are in the service sector, pay minimum wage, or are seasonal. These factors clearly affect a family's ability to pay for decent housing. Without adequate savings or other financial resources, a job loss can quickly translate into foreclosure, eviction, and ultimately, homelessness.

Housing Needs

The U.S. Department of Housing and Urban Development (HUD) defines housing problems as overcrowding (more than one person per room), physical deficiency of the unit (i.e. lacking complete plumbing), or a housing cost burden (paying 30 percent or more of income for housing). By this definition, 75 percent of extremely low-income renters, 67 percent of low-income renters, 31 percent of moderate-income renters, 67 percent of extremely low-income homeowners, 37 percent of low-income homeowners, and 23 percent of moderate-income homeowners reported housing problems in 1990. Of particular concern are the 56 percent of large-family renters (five or more persons) and 47 percent of elderly renters at all income levels that reported housing problems.

On average, overcrowded households in Missouri are represented by 3.9 percent of renters and 2.1 percent of homeowners. However, McDonald, Daviess, Reynolds, St. Genevieve, Warren, Washington, and Webster counties and St. Louis City have at least twice the State's average for overcrowded homeowners. Except for Daviess and Warren counties and St. Louis City, these overcrowded households are in rural areas in the southern half of the State. Extremely low-income renters, especially large related households, experience the greatest overcrowding conditions.

Market Conditions

Census data from 1990 indicates a total of 1,960,706 occupied units in Missouri. Of these, 31 percent are renter occupied and 69 percent are owner occupied, a decline from the 70 percent homeownership rate in 1980. The median value of an owner-occupied home was $42,600 in 1990. Homeownership appears to be on the rise again as low interest rates in the early 1990s spurred homebuying.

Mobile homes and manufactured housing have always addressed the demand for affordable homeownership opportunities, but the demand for such housing has grown since the 1993 flood. The number of these units has increased by 50 percent since 1980.

Affordable Housing Needs

Statewide, extremely low-income households experience the greatest housing burdens:

69 percent pay more than 30 percent of their income on housing costs.
48 percent pay more than 50 percent of their income on housing costs.

Low-income households also experience high levels of housing burdens:

47 percent pay more than 30 percent of their income on housing costs.
14 percent pay more than 50 percent of their income on housing costs.

Homeless Needs

The Missouri Association for Social Welfare indicates that there are 358 providers of homeless facilities or services within the State. Of this number, 170 providers are emergency and transitional shelters. The other 188 providers are either referral shelters or provide permanent housing for homeless persons with disabilities.

Comparing the average of point-in-time counts of the homeless for 1993 and 1994, there was an increase of 19 percent in Missouri's sheltered population. In 1994 the distribution of subpopulations of the homeless was as follows:

58 percent were chronically homeless.
13 percent had HIV/AIDS.
24 percent were survivors of domestic violence.
51 percent were families.
47 percent were unaccompanied adults.
2 percent were unaccompanied youth under age 17.

Using the most recent count of people in Missouri's shelters, it is a conservative estimate that there are currently 22,000 homeless Missourians.

Public and Assisted Housing Needs

The State does not own or manage any public housing units but would support the funding of proposals to enable public housing residents to become homeowners. Assisted housing units represent the greatest percentage of affordable housing units available to the State's low- and moderate-income families. Demand for these units is high, and there are a significant number of households on waiting lists. Although it is difficult to say whether these lists represent an unduplicated count, most waiting lists have names on them for 2 to 3 years, and most of the waiting lists are closed.

A survey of Rural Economic and Community Development (RECD) projects identified 62 projects with 1,359 units and a waiting list of 326. A survey of Section 236 and 221 projects identified 7,542 units and a waiting list of 1,833. The MHDC has financed another 2,240 housing units through tenant-based rental assistance, single-room occupancy, and vouchers.

Barriers to Affordable Housing

The Missouri Homebuilders Association conducted a survey to determine some of the barriers to affordable housing. The following perceived barriers were identified from across the State:

HUD's reduction of fair market rents.
City subdivision regulations.
Individual subdivision covenants and regulations.
Land and material cost.
Federal financing requirements that hinder first-time homebuyers.
The potential cost of future infrastructure improvements.
Infeasibility because of the time required for permits, reviews, and engineering studies.
Slim profit margins for developers of affordable housing.
Local governments that are unreceptive to affordable housing.
Building code requirements that add to building costs.

Lead-Based Paint

Surveys in Missouri indicate that approximately 10 percent of all children under the age of 7 have elevated blood-lead levels. Twelve percent of those screened were over the 10 micrograms per deciliter level of concern. In St. Louis City, the prevalence rate for blood lead poisoning is 4,337 per 100,000 children. The State estimates that 1,185,789 housing units contain lead-based paint because these units were built before 1979, when the residential use of lead-based paint was banned. In the CDBG nonentitlement areas of the State, it is estimated that 140,609 low-income rental units and 302,699 low-income owner-occupied units have lead-based paint. These figures represent a total of 443,308 units or 37 percent of all lead-based-paint units in the State.

Community Development Needs

When the State of Missouri took over the administration of the CDBG program in 1982, several statewide surveys were conducted to determine needs. The overwhelming response was infrastructure, mainly water, sewer, bridges, and housing, rehabilitation. Consequently, the program was designed to address these priorities. Two surveys conducted since that time also reflect these needs.

An assessment of Missouri's economic future indicates that the most important issues facing the State include strengthening the State's telecommunications infrastructure to promote investment and job creation, encourage economic diversification, and focus on education as a long-range economic development inducement.

Paying attention to demographic changes and fostering technology transfers are critical to the State's efforts to encourage the retention, expansion, and attraction of businesses to Missouri. Promotion of economic development in the State's rural areas is particularly dependent on further development of Missouri's telecommunications network.

Coordination

The State's Consolidated Plan work group consists of representatives from various State agencies involved in housing, community development, economic development, and the provision of social services. The Department of Economic Development took the lead in coordinating the committee made up of representatives from the Missouri Housing Development Commission, the Department of Social Services, the Department of Health, and the Department of Mental Health. The committee will continue to work together to further identify anti-poverty resources.

HOUSING AND COMMUNITY
DEVELOPMENT STRATEGY

Housing and Community Development Objectives and Priorities

The following are the means through which Missouri will address its housing and community development goals:

Homebuyer and rental assistance.
Rental and shelter programs for homeless families.
Housing and services for persons with special needs.
Rental housing production.
Alleviation of the most critical needs for public works, services, and facilities.
Improvement of substandard housing through code enforcement and rehabilitation.
Addressing of public works deficiencies that pose threats to health or welfare.
Encouragement of maximum use of applicant's resources to address public needs.
Provision of adequate resources for the operation of public works and facilities.
Improvement of economic opportunities through public and private investment.

Housing Priorities

Missouri's mission is to provide good quality, safe, and affordable housing for the low- and moderate-income citizens of the State. Housing priorities are as follows:

Affordable housing for small low-income and single-parent households.
Affordable housing for large low-income households.
Affordable housing for elderly low-income households.
Affordable housing for homeless persons and families.
Affordable housing for persons with special needs.
Affordable homeownership for low-income households.

Nonhousing Community Development Priorities

The projected use of funds targeted to non-housing needs has been developed so as to give maximum feasible priority to activities which:

Benefit low- and moderate-income families.

Aid in the prevention or elimination of slums or blight.

Meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community.

Anti-poverty Strategy

According to the 1990 census, there were a total of 663,075 lower income persons in Missouri, a 12-percent increase since 1980. Thirty-four percent of the persons living in poverty are children under age 18, and 15 percent are age 65 or older. Missouri's primary programs, policies, and goals for reducing poverty can be categorized into three key areas:

Creating jobs and providing job training.
Preventing welfare and reducing welfare dependence.
Creating suitable living environments.

Housing and Community Development Resources

As in the past, the State's housing and community development programs will tend to be implemented by funding from several resources. Effective partnerships with local governments and the private sector will be fostered to ensure that Federal grant funds are leveraged to the maximum extent possible. The following list shows the estimated resources to be received:

$30 million in CDBG funds.
$12.7 million in HOME funds.
$2.7 million in ESG funds.
$998,653 in HOPWA funds.
$4 million from the Missouri Housing Trust Fund.
$6.4 million in Low-Income Housing Tax Credits.
$75 million from the Mortgage Credit Certificate Program.
$100 million in Single-Family Mortgage Revenue Bonds.

Coordination of the Strategic Plan

Each agency involved in the Consolidated Plan process developed its program by taking into account the input at the public hearings held during the planning process. Each agency will conduct its own program according to established procedures, independent of each other's oversight. The State is prepared for whatever changes might ensue in the future for coordination.

ONE-YEAR ACTION PLAN

Description of Key Projects

The State of Missouri acts as grant administrator for all Federal funds received by local government units. Eligible project activities are listed below:

The MHDC budget is available to subsidize home improvement loan interest rates, single-family downpayment subsidies, bridge loans for tax credit projects, multifamily or single-family loan and interest rate subsidies, and rural rental assistance.

HOME funds are available for community housing development organizations, first-time homebuyer assistance, tenant-based rental assistance, and acquisition and rehabilitation/construction of rental housing.

Low-Income Housing Tax Credit allocations are available to finance low-income rental housing development.

HOPWA project plans include rental assistance for households at or below the poverty level, emergency and traditional housing, supportive service coordinators and housing service coordinators, and other HIV/AIDS housing options.

Administration, renovation, operations, and essential services of homeless service providers, as well as prevention of homelessness, are fundable activities under the ESGs.

CDBG funds can be used in support of public facilities projects, neighborhood projects, emergency projects, infrastructure, downtown revitalization, loan guarantees, interim financing, speculative building, and float loans.

Locations

Federal grant programs have different distribution criteria. The State will make funds available to local units of government using the following criteria:

The HOME program will give priority to those parts of Missouri that have not received HOME funds of their own.

HOPWA funding is available in cities and rural areas outside of Kansas City and St. Louis, which receive their own HOPWA allocations.

All Missouri county and city governments with a population of 10,000 or more may receive ESG funds.

CDBG funds will be allocated to units of local government in nonentitlement areas of Missouri.

Low-Income Housing Tax Credits are available statewide.

Lead Agencies

Each agency will monitor its own grantees according to established standards for each program.

Housing Goals

In the first year of the State's Consolidated Plan, the State plans to assist 2,800 households with mortgages, 610 households with subsidized housing loans, 500 households with downpayment assistance, 200 households with bridge loans, 530 households with mortgage interest subsidies, 100 with rental assistance through the FmHA, 990 households with other rental assistance, 172 households with new construction or rehabilitation of rental housing, and 384 households with acquisition of new or existing single-family homes.

To comment on the State of Missouri's Consolidated Plan, please contact Marilyn Graham, Policy Development Coordinator, at 314-751-4146.

Return to Missouri's Consolidated Plans.