Billings is the largest city in Montana, with a population of 81,151. As the main commercial center of southeastern Montana, Billings serves a trade area that includes northern Wyoming, and parts of North and South Dakota. In the mid-1980s, recessions in the oil and gas industries and in the agricultural sector resulted in a decline in local employment and population. During the early 1990s, Billings' economy started to improve. The Billings economy is now adding about 1,000 jobs a year, a trend that is expected to continue.
This Consolidated Plan describes housing and community development needs and priorities. It establishes a comprehensive 5-year strategy for addressing these needs using Federal and other resources. For the first year of the plan, Billings is requesting $1,364,000 in Federal Community Development Block Grant (CDBG) and HOME funds. This money will be used to finance the 46 housing, community development, and service activities planned for Fiscal Year 1995-1996.
Citizen input on priority needs was available from an extensive community needs assessment survey of Yellowstone County, in which the city of Billings (as the major jurisdiction) participated. Survey results were published in November 1994, and were based on answers of over 1,500 residents, who were asked to rate 140 service categories in 12 areas of community need. Public comment on the draft Consolidated Plan was accepted during the 30-day period from April 1 to April 30, 1995. During this period, the plan was also reviewed by the Community Development Board and by the city's new Affordable Housing Task Force, which was established to review and implement the Consolidated Plan. At a second hearing in April, over 24 individuals testified.
Billings' Citizen Participation Plan specifies that the city will
hold three public meetings a year. The third public hearing this
year, and in following years, is to be held in September to
report on program progress and provide citizens with an
opportunity to comment on activities carried out under the city's
housing and community development programs.
Billings is located in southeastern Montana, on the Yellowstone River, in Yellowstone County. Historically, mainstays of the area economy have included oil and gas extraction, oil refining and processing, agriculture, food processing, rail transportation, and specialized medical services.
In the mid-1980s, recessions in the agriculture business and in the oil and gas industries slowed the region's economy, prompting declines in local employment and population. The cycle of Billings' economy moved up again in the early 1990s. Agricultural income increased, the medical sector expanded, and construction activity increased with expansions of the area's oil refineries and related businesses. Billings' economy is now growing about 1 to 2 percent a year.
The 1990 median family income (MFI) of $31,906 within the city of Billings was somewhat higher than that of the surrounding Metropolitan Statistical Area, $31,533. However, almost half of the 33,284 households in Billings have annual incomes of $29,956 (95 percent of median) or below and can be described as low- to moderate-income. Census data from 1990 show the following levels of low- and moderate-income households in Billings:
Native Americans are the largest subpopulation of minority residents in Billings, numbering 2,569, or 3.2 percent of the city population. Hispanics, the next largest group, total 2,481, or 3.1 percent of the resident population. In 1990 there were 470 Asian and Pacific Islanders and 439 blacks who together made up just 1 percent of the population. In the 1980s the greatest numerical increase was among Native Americans.
Lowest household income and highest concentrations of minority populations are found in what is commonly referred to as the South Side Task Force Neighborhoods and the Southwest Corridor Task Force Neighborhoods. Each of these has a household median income of 75 percent or less than that of the city. These areas have been targeted for CDBG funding.
Census data also show a disproportionately low number of
homeowners among black, Native-American, and Hispanic
householders. Only 22 percent of Native-American households own
their home, as compared to 62 percent of whites.
Billings is currently a very tight housing market, particularly for very low-income families. A key reason is that there was little multifamily construction from 1986 to 1992. Recent population growth has left a shortage of rental housing affordable by very low-income households. Construction of more multifamily housing is needed, even if rents in the new housing are too high for very low-income households. Such units do relieve pressure on the housing market; as other lower income households move into newly constructed units, they free up their former housing. Construction of single-family homes in larger numbers would also help very low income households in the same way. As low- and moderate-income renters become homeowners, more rental units become available.
During the 5 years from 1995 to 1999 covered by this plan, Billings' population is projected to increase by 5,688. To house the additional people, at least another 2,378 housing units will be needed. This is an average of about 500 units a year. To meet the projected population increase in the Billings metropolitan area, even more units will be necessary.
The increase in employment opportunities and the associated increase in population has resulted in an increased demand for housing. In the 1990s this demand was filled by the excess supply of housing remaining from the 1980s. This stockpile has been eliminated, and Billings now has a tight market characterized by heavy demand for housing, particularly multifamily units. Single-family construction has increased but very few multifamily housing units were added from 1986 to 1993.
Billings' housing stock is in generally good condition. In 1990 there were 33,284 households in the city, 36 percent of which were renters. That year, the median rent was $294, and the median value of owner-occupied homes was $63,600.
These conditions have changed significantly. In January 1995 the average rent for a two-bedroom apartment was $450. The average sale price for a home was $83,100, with most of the increase occurring during the past 2 years. The average sale price has increased by 27 percent since October 1993.
Housing for moderate-income households (81 to 95 percent of MFI) remains basically affordable. Only 17 percent of households report housing-cost problems. Almost half of those who do are elderly. The primary need of households in this category is the continued availability of affordable financing. For them, construction of homes priced under $90,000 should be encouraged.
About one-third of low-income households (51 to 80 percent of MFI) report housing problems. The highest percentages of problems are reported by elderly renters (48 percent), large-family renters (43 percent), and nonelderly homeowners (46 percent). Low-income households are most in need of rehabilitation assistance and first-time homebuyer assistance. The construction of new multifamily rentals, houses, townhouses, and condominiums under $90,000 would be helpful.
Extremely low-income (0 to 30 percent of MFI) and very low-income households (31 to 50 percent of MFI) today face a housing crisis in Billings. Many pay more than half of their income for housing. Building costs basically preclude new construction of affordable housing for extremely low-income households, while those with very low incomes could possibly qualify for some subsidized homebuyer programs. Rehabilitation assistance needs to be structured to keep units affordable for households at these income levels.
There are an estimated 166 homeless persons in Billings. Two of these were tallied as "unsheltered," the other 164 were living in shelters. The shelters are near capacity. The sheltered homeless primarily need more affordable housing for low-income families, and support services to provide job training, drug and alcohol treatment, and education.
The Housing Authority of Billings (HAB) has 274 family and elderly units. On January 10, 1995, there were only 3 vacancies. There are 2,300 individuals and families on the waiting list.
The HAB identifies its first management improvement priority as funding a community police officer. This is part of a wider program to eliminate drugs and provide a safer and more secure living environment for HAB's residents.
Section 8 rental assistance certificates and vouchers are administered by HAB, which has 402 certificates, 175 vouchers, and 87 Section 8 Moderate Rehabilitation units. There are also 9 private nonprofit apartment projects with 749 subsidized units, including 231 designated as elderly housing.
There are no court orders, consent decrees, or HUD sanctions that will affect the city's housing goals during the term of the Consolidated Plan. However, regulatory barriers during the development process and market forces such as the economics of development and the cost and availability of financing could impede the Plan's progress.
The city funds a development services coordinator whose function is to help lessen the effects of regulatory barriers on development in the city. The city's Department of Public Works continues to make amendments to the Site Development Ordinance to help builders and developers streamline development standards.
There is a need to assure equal access to housing by minorities, women with children, and other protected parties. This is especially true for those leaving the YWCA's domestic abuse shelter and the Rescue Mission's Women and Children's Shelter.
Use of lead-based paint (LBP) was suspended in 1979, but by then use of paints containing lead had dropped somewhat as easier-to-use paints became available. Based on such factors, HUD suggests that for housing built before 1940, 90 percent of the units contain LBP. For units built between 1940 and 1959, 80 percent have lead, and for those constructed between 1960 and 1979, 62 percent.
A total of 26,662 of Billings' housing units were built in 1979 or before. Based on the percentages above, an estimated 19,212 units contain lead-based paint. This is 53 percent of the city's entire housing stock. Of the 1,751 rental units built before 1940 -- those with the highest probability of containing LBP -- 98 percent (1,718) are occupied by very low- or low-income households. The very lowest income renters are at the greatest risk of living in a unit with an LBP hazard.
Preliminary testing for blood-lead levels in children was conducted in 1993. More extensive testing by the Montana Childhood Lead Poisoning Prevention Program began in 1994.
Community development needs relate to activities that complement
affordable housing efforts. These activities involve upgrading
and preserving older neighborhoods where the majority of the
city's affordable housing stock is located. These neighborhoods
are characterized by an aging housing stock, aging infrastructure
and parks, and mature trees that may be diseased or in need of
trimming. The city also recognizes the need for continued
provision of public services that complement housing and
neighborhood revitalization activities.
In its 5-year strategic plan, Billings attempts to meet the varying and special needs of the community's lower income households. The strategy also takes into account the rules and regulations governing the Federal CDBG and HOME programs, the city's primary existing resources for addressing housing needs. For example, the matching funds requirement for rental rehabilitation may make using HOME funds unrealistic. The impact of market conditions on the strategies may also become a factor.
The city's principal housing priority is to address the affordable housing needs of Billings' lower income households. Strategic approaches include the following:
The city's strategic plan includes a long-range strategy of "assessment and coordination of housing resources." This calls for establishing a permanent affordable housing task force. The task force must address both regulatory issues and the special needs of Billings' lower income households. The permanent task force would replace a variety of temporary or ad hoc groups and coordinating groups working on housing for only special-needs populations such as the physically disabled or elderly.
For community development, the strategy is to focus on activities that complement affordable housing efforts. This means improving lower income areas of the city where the affordable housing stock is located to help these areas remain strong and viable urban neighborhoods. Approaches include the following:
For human services, the strategy is to address the needs of the city's lower income neighborhoods. Activities would include housing counseling services and meeting the basic needs (food, clothing, and shelter) of those threatened with homelessness.Other needs for lower income households are recreation opportunities, job training, and affordable child care.
The city will help reduce the number of households with incomes below the poverty line with activities funded by CDBG and HOME for housing, community development, public services, and economic development.
Resources available to implement this 5-year plan include anticipated Federal CDBG funding of about $900,000 a year, HOME funds, various matching grants from the State of Montana and other sources, other public agencies, and for-profit and nonprofit housing and community service organizations listed below.
The city of Billings, primarily through its Development Services Department, will act as lead agency for administration of the Consolidated Plan. As part of the strategy for this Consolidated Plan, the Development Services Department proposes to establish regular meetings between parties involved with housing with the goals of improving collaboration and information on housing needs and resources.
Cooperation of a variety of housing organizations is essential to meet Consolidated Plan goals. Organizations involved include Housing Authority of Billings, Human Resources Development Council, Montana People's Action, Habitat for Humanity, and local lending institutions. Also cooperating are Family Service, Inc., Billings Fair Housing Initiatives Project, Billings Fair Housing Alliance, Montana Legal Services, Billings American Indian Council, Billings Area Housing Association, and the Eastern Montana AIDS Housing, Inc.
Also involved are Eastern Montana Landlords Association, Montana
Landlords Association, Yellowstone Valley Accessible Housing
Organization, Realtors and Home Builders Association, Living
Independently for Today & Tomorrow, the Mental Health Center,
Montana Board of Housing, Montana Rescue Mission, and Billings
Community Housing Resource Board.
The city of Billings plans to use $709,400 for housing activities during the first year of its 5-year Consolidated Plan. Key projects in this category include the following:
Key nonhousing community development projects include the following:
Billings' action plan allocates $141,590 for 22 public services projects. These are grants to nonprofit community organizations that provide city residents with needed services not available from the municipal government. These programs include after-school child care, supervised recreation and activities for youth, a food bank, crime prevention (such as neighborhood watches), child care for families participating in a self-sufficiency program, handicapped transportation services, an employment training program for displaced homemakers, and emergency services for runaway and homeless youth.
For fair housing, $25,000 is included: $20,000 for the Billings Community Housing Resources Board and $5,000 for fair housing enforcement and organizational development.
Billings' 1995 housing and community development projects are expected to directly benefit 250 households, including 25 designated as elderly. The community development activities will also have neighborhoodwide and communitywide benefits.
Planned public services activities will provide direct benefits to an estimated 9,200 people, including 30 specifically noted as elderly and 810 as youth.
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).
