The Consolidated Plan to be administered by the city of Burlington requests $415,000 in Community Development Block Grant (CDBG) funds for fiscal year 1995 and presents a strategic plan for the years 1995-1999. The plan also uses $210,000 of Revolving Loan program income. The proposed projects focus primarily on upgrading infrastructure in low- and moderate-income areas, rehabilitating housing, and creating homeownership opportunities for low- and moderate-income residents.
To assure that community residents had an opportunity to shape the Consolidated Plan, Burlington organized several events over 3 months to include various populations. A public hearing, advertised in the newspaper and in fliers to local agencies and organizations, was held to gather input on needs to be included in the housing and non-housing community development sections of the plan. In addition, city staff, local service providers for the homeless and special needs populations, and representatives of the U.S. Department of Housing and Urban Development met to explore current funding sources and the continuum of care concept. The daily newspaper published a summary of the content and purpose of the plan, and a 30-day comment period concluded with a final public hearing.
Alamance County's economic growth is evidenced by the drop in unemployment from 12.3 percent in 1975 to 3.8 percent in 1990. Nonetheless, wages have not been able to keep pace with housing costs. In 1990 average annual income was $17,458, a 17-percent increase from 1986, while the average market price for a housing unit had nearly doubled, rising from $48,764 to $87,223.
Population growth during the 1980s was a moderate 6 percent. In 1990 white households represented 80 percent of all households in Burlington and African-American households, the largest minority group, represented 19 percent. Average household sizes declined and single-person households increased, but the most pronounced demographic change was in local age distribution. There was a 41 percent increase in the number of elderly and a 10 percent decrease in the number of children and youth living in the city.
During the 1980s, the percent of persons living in poverty in Burlington declined from 12 percent to 10 percent. The median family income MFI in the city in 1990 was $33,182. Twenty-three percent of all households in 1990 had an income of 0 to 50 percent of MFI. Another 27 percent had incomes of between 51 to 95 percent of MFI. Elderly households accounted for three-fourths of households in the low-income category (below 51 percent of MFI).
Recently, Burlington annexed an area with a concentration of racial/ethnic minorities and low-income families. Of the 196 houses in this area, 139 units or 71 percent are substandard. Annexation of another similar area is being considered.
Household size has been steadily declining in Burlington since the 1970s. This has led to an increase in demand for differently sized units. Over half of the housing stock is composed of units with three or more bedrooms. Efficiency units and one-bedroom units make up only 12 percent of the housing stock. The continued increase of small, low-income households, including the elderly and female-headed families, increases the need for financial assistance to meet housing costs.
Growth of housing stock outpaced growth in households slightly from 1980-1990. The number of mobile homes and multifamily units increased more than single-family dwellings. Single-family dwellings continue to be the predominant housing type in the city, but declined as a percentage of all units. Currently they represent 72 percent of total dwellings. This trend is expected to continue. Although the actual number of owner-occupied units increased by almost 10 percent, the homeownership rate declined from 62 percent to 58 percent in 1990. There was great homeownership variation according to age and race. The number of homeowners under age 25 declined by 45 percent while the number of homeowners 65 or older increased by 52 percent. Four out of 10 minority households were homeowners while 7 of 10 white households were homeowners.
Housing problems are defined as living in substandard units or overcrowded conditions, or experiencing housing costs greater than 30 percent of household income. Although low-income renters comprise 35 percent of all renter households, they account for 68 percent of renters with housing problems. Low-income owners have comparable problems: they constitute only 15 percent of all owner households, but account for 44 percent of the households with housing problems.
Over half of all moderate-income households (at 51-80 percent of MFI) live in deficient housing or pay more than 30 percent of their income for housing. Twenty-two percent of the moderate-income households pay more than 50 percent of their income for housing. A disproportionate percentage of moderate-income African-American households experience housing problems: 45 percent live in deficient units or pay excessive costs, compared with 32 percent of white households.
Affordability is also a critical issue with first-time homebuyers since the median value of existing homes increased more rapidly than family median income. With a 30-year fixed income rate mortgage at 9.25 percent interest, 83 percent of families in Burlington could not afford to purchase the average-price home in 1994.
Allied Churches, the primary shelter provider in Alamance County, estimates that there are 1,000 homeless persons in the Burlington/Alamance County area. They are in need of day shelters, transitional housing, and affordable permanent housing. Support services will need to be increased for the area to assist the increasing number of homeless families. The city also needs more facilities to meet special needs within homeless populations, such as facilities able to deal with alcohol/substance abuse problems, domestic violence, AIDS, and youth issues.
On February 22, 1995, the Burlington Housing Authority (BHA) had a waiting list of 175 households. Its stock consists of 80 efficiency and one-bedroom units, 124 two-bedroom units, and 164 units with three or more bedrooms. Only four of those units were vacant on February 1, 1995. The nearby Graham Housing Authority, which is open to residents of Alamance County, operates 170 units. In January 1995, it had 820 households on the waiting list for public housing and Section 8 housing, but had only 5 vacant units.
As of February 1995, Burlington had no vacancies in its 100 Section 8 units. Figures are not available for vacancy rates in the 516 privately managed Section 8 units. Over half of these units are reserved for the elderly. Graham Housing Authority and private management companies operate and/or own 270 Section 8 units. Graham had no vacancies as of January 1, 1995, and the vacancy rate of the privately managed units is unknown.
BHA cannot provide any supportive housing within public housing. Residents with self-care and/or mobility limitations are referred to the County Department of Social Services (DSS). Some public housing residents do need additional financial assistance to obtain supportive housing with more intensive services than DSS can provide for them in their homes.
The city's zoning requirements for minimum lot sizes and allowable densities in certain residential areas and the policy for the extension of public utilities could slow development or raise the cost of housing. In addition, land development controls in the city's Subdivision Regulations could increase development costs for potential affordable housing projects.
The city will analyze barriers to fair housing and take appropriate actions to overcome the effects of any of these impediments. It has determined that fair housing counseling, in the form of homeownership and landlord/tenant counseling, is a community need.
Lead is most likely to occur in homes built before 1940. Of the 10,300 housing units in Burlington containing lead-based paint, 41 percent are occupied by moderate-income households and 31 percent by low-income households. The city does not have a citywide breakdown of the number and age of children by family structure and income, but in 1994 Burlington found three children with elevated levels of lead in their blood.
For low-income elderly households, housing costs are often a burden. One-third of elderly homeowners are low-income and may have difficulty physically and financially maintaining their homes. Although only 23 percent of the elderly households are renters, more than half of these renters experienced housing problems and excess costs for housing. In addition, the city estimates that there are 150 frail elderly who would also need financial assistance to obtain supportive housing.
Persons with disabilities including the mentally ill, developmentally disabled, and physically disabled persons may have housing needs similar to low- and moderate-income persons. They often need rental assistance to be independent. They may also need accessible housing. The city also estimates that there are 70 individuals in Burlington who are severely mentally ill and in need of supportive housing. While there are no accurate estimates of the number of persons with physical disabilities in need of supportive housing, in March 1995, the Association for Retarded Citizens had a list of 56 developmentally disabled people on a waiting list for supportive housing.
At this time, Alamance Cares, an agency serving people with AIDS, has 100 clients with Burlington addresses. The agency notes that many people with AIDS currently live in substandard conditions and well below the poverty level. As the AIDS population increases, the agency predicts 400-500 people will need supportive housing within several years. At present, the city has no housing facility designated for people with AIDS.
The community development needs in low- and moderate-income areas were identified and given priority based on interaction with local service providers, citizens, and the staff of various city departments. Specific non-housing community development needs are as follows: the economic and infrastructure revitalization of several neighborhoods; public facility and program accessibility for persons with disabilities and the elderly; and public services such as transportation, homeownership and tenant/landlord counseling, child care, and employment training.
Burlington's 5-year strategic plan addresses three basic goals of community development, with highest priority on the first two goals:
Burlington will work with programs already involved with special populations to increase the assistance and facilities for their target groups.
The city will take a continuum of care approach to homelessness using rental assistance to move families out of shelters and prevent future homelessness. At the same time, it will encourage the development of support services and the expansion of facilities for the homeless with special needs. The rehabilitation activities mentioned above will provide another way to prevent homelessness.
Over the next 5 years, Burlington plans to make the development of affordable housing for low- and moderate-income renters and homeowners a high priority. The city will provide additional rental assistance and rehabilitation, and also work in partnership with private developers to convert existing structures into apartments. It will also rehabilitate housing for 60 homeowners.
Using homebuyer assistance to secure downpayments and help purchasers qualify for home mortgages, the city will provide 10 low- and moderate-income first-time homebuyers with the opportunity to purchase homes.
Burlington has a number of short- and long-term community development priorities. Several revitalization and stabilization projects focus on the Rauhut/Ross Street area. One will market 12 affordable single-family homes and another will implement a neighborhood plan and corridor study to ensure planned, quality residential and commercial growth.
In addition, the city proposes to do the following:
In addition to the housing goals listed, Burlington will work with other governmental entities, agencies, and nonprofit organizations that provide programs and services for impoverished and low-income persons to help stimulate economic development and ensure neighborhood preservation and quality of life.
The funds requested in this plan are CDBG, but Burlington has also proposed the following resources to assist in the projects:
Federal: HOME, Rental Rehabilitation Program Income, Weatherization Program, Public Housing Comprehensive Grant, Supportive Housing for the Elderly (Section 202), Supportive Housing for Persons With Disabilities (Section 811), Section 8 Moderate Rehabilitation, Emergency Community Services Homeless Grant, Shelter Plus Care Program, Emergency Shelter Grants Program, Supportive Housing Program, Public Housing.
State: Single-Family Rehabilitation Program, Weatherization Program, Heating and Repair Replacement Program, Urgent Repair Program, Homeownership Challenge Fund, Housing Production Program, Domestic Violence Programs, Victims of Crime Assistance Program, Marriage License Fees, Special Needs Housing Program, Single-Family Rehabilitation Program.
Local: city funds, Habitat for Humanity, county Funds.
Private: Homeownership Financing, CROP grant, Church World Services, United Way, Owner-Operators of Housing with Supportive Services, Association for Retarded Citizens, Ralph Scott Life Services, Inc., Mental Health Association.
The city of Burlington Planning and Community Development, which will be responsible for coordinating the housing strategy within its corporate limits, recognizes that there are numerous public and private agencies in place with expertise to administer the tasks set forth in this plan. Primary responsibility for these tasks will be assigned to appropriate agencies and they will work together as necessary to fulfill their responsibilities.
The tasks are assigned as follows:
During 1995-96, Burlington recommends funding the following with CDBG monies:
Apple Street Improvements -- $115,000
Housing Rehabilitations -- 385,000
North Park Library -- 7,000
North Park Playground -- 10,000
Contingency -- 10,000
Administration -- 98,000
Total -- $625,000
The city has found that homeowners who qualify for rehabilitation assistance often do not reside in a specific low-income neighborhood. To achieve the greatest impact on the living conditions of low-income households, the city has decided not to target specific neighborhoods for assistance. All of the non-housing community development projects, however, are located in low- to moderate-income neighborhoods.
The city expects to provide renovations to 25 housing units.
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 project(s) from a street level vantage point; in addition, a table provides information about the project(s).
