Raleigh, North Carolina is the State capitol and is located in Wake County, in the central part of the State. It is part of the Raleigh-Durham metropolitan area which was rated in 1994 as the best place in America to live and work. The region has built industrial success on a base of higher education and government services. Raleigh is home to North Carolina State University, historic Shaw, St. Augustines, and several other religiously affiliated colleges. This Consolidated Plan summarizes Raleigh's housing and community development needs; its 5-year housing and development strategy; action steps proposed to meet its objectives; and specific projects for meeting those strategies.
During the first year of the plan Raleigh plans to use $3,471,000 in Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), and Emergency Shelter Grant (ESG) funds in conjunction with State, local, and private funds. Planned projects emphasize affordable housing for low- and very low-income residents and community development activities in their neighborhoods.
Participation from all segments of the community was an important ingredient in preparation of the plan. Community based organizations were consulted throughout the process of compiling information.
As part of this effort, Raleigh held two public hearings. The first hearing took place as a community forum on October 20, 1994 in southeast Raleigh (a low-income area targeted for community revitalization). Attended by 138 people, the hearing allowed city officials to learn from citizens. Information gathered was used by the Community Development Department and the Eastside Neighborhood Task Force, a citizen's advisory board, to set priorities and make funding decisions. The resulting budget was presented to local citizens groups for comment. A draft version of the Consolidated Plan was then distributed to the public in February 1995. This was followed by a second public hearing March 7. Citizens had until March 31 to submit their comments.
Raleigh grew substantially within the past two decades, increasing from 122,830 residents in 1970 to 207,951 in 1990. As of July 1994 Raleigh's population was estimated at 237,739. It is anticipated that Raleigh's population will continue to grow during the 1990s, although at a slower rate. This growth, along with the decline in household size, will continue to fuel demand for new housing. Raleigh has a relatively young population which is the primary group for renting or purchasing housing. The elderly population will experience major increases during the 1990s.
Whites comprise 69 percent of the population, African Americans make up 28 percent, and 3 percent are other minorities. The concentrations of racial/ethnic and low-income families are primarily in southeast Raleigh. African Americans are the primary residents of this area; other minorities are distributed throughout the city. Older neighborhoods around the downtown area in the southeast quadrant are home to many low-income African American families. The median household income in this district was $17,218, which was significantly less than the $46,800 for the entire planning jurisdiction.
Raleigh anticipates that problems with housing affordability will continue over the next 3 years, and that strategies identified to address them will not change over the time period. The need for affordable housing exists within both the rental and owner-occupied housing markets. Two out of five households fall within the very low- (0 to 50 percent of median family income in the area, or MFI) and low-income (51 to 80 percent of MFI) categories. The majority of these households spend more than half of their dollars towards housing. As people are further drawn to the area, the need for an adequate supply of affordable housing will become greater.
Raleigh has experienced a major building boom over the last few years that is fueled by the area's strong and growing economy. However, this healthier housing market has made it even more difficult for low- and moderate-income residents to find affordable housing. First-time home buyers will find very few houses on the market that are affordable. The average price for a new home in the Raleigh area is currently $156,590 and $113,290 for resale homes. Only 4 percent of all homes for sale are priced below $50,000.
The impact of increasing housing costs can also be observed in the average rental cost for an apartment. As reported by the Triangle Apartment Association, the average rent for a two-bedroom apartment increased from $485 in 1990 to $605 in 1994.
There are 103,104 year-round housing units in Raleigh. While the majority of these units are rental, Raleigh's housing stock is still predominately single family. The bulk of this housing is in standard condition but 1,200 units are considered unsafe. Some downtown neighborhoods have lost a number of housing units due to demolition of dilapidated units and conversion to nonresidential uses.
The 44,998 renter households represent 38 percent of the city's population. Of these approximately 58 percent are classified as very low- to low-income. The rental vacancy rate peaked at 13.6 percent in 1986, but was down to 5.6 percent by 1990, and now is estimated to be 2 percent. This decline, coupled with a 25 percent increase in overall rental rates for two- and three-bedroom units, has made it very difficult for low-income households to find housing.
There are 19,225 households, or 22 percent of all households in the city who have very low incomes (0 to 50 percent of MFI). Seventy-nine percent of them have some housing problem, 65 percent pay more than 30 percent of their income towards shelter, and 62 percent pay more than 50 percent of their income towards shelter.
Nineteen percent of all households are low income (50 to 80 percent of MFI). About 38 percent of them have some housing problem; 35 percent pay more than 30 percent of income towards shelter and only 4 percent have a severe cost burden of paying more than 50 percent.
Only 9 percent of all households in Raleigh fall in the moderate-income group (80 to 95 percent of MFI). Of them, 18 percent have an identifiable housing problem. Sixteen percent pay more than 30 percent of income for housing, and only 1 percent pay more than half of their income for housing.
Renter households have housing problems (38 percent) more often than owners (21 percent), usually excess cost burden. This could be expected, since 33 percent of renters, but only 17 percent of owners, have very low incomes.
It is estimated that between 800 to 1,200 persons are now homeless within the Wake County area, most of whom live within the Raleigh's jurisdiction. Families and children are the fastest growing population of the homeless. The Wake County Task Force on Area Homeless found that more than 11,000 families are at risk of becoming homeless due to a combination of factors: a low-wage service economy, lack of affordable housing resources, overcrowded conditions, and lack of transitional housing. The task force has developed a continuum care strategy to help reduce, prevent and end homelessness within the area.
The Raleigh Emergency Shelter Program currently provides more than 311 beds, with 150 available on a year-round basis. In 1993 the shelter served 1,188 men, 161 women, and 29 children. The increasing needs of the homeless, however, exceed the availability of shelter space and other services. It is estimated that 1,100 to 2,700 people in Wake County are in need of transitional housing.
The Raleigh Housing Authority (RHA) manages 2,080 public housing units within the city. Although most of the units are in standard condition many are in great need of maintenance and modernization. The authority has aggressively pursued funding to maintain and improve the condition of its housing stock. It has applied for and received $2,598,990 in grant funding from the Department of Housing and Urban Development to use towards rehabilitation.
In addition, there are 773 project-based Section 8 assisted units in Raleigh. Another 938 units of assisted housing were developed under other Federal programs.
Currently the RHA maintains a waiting list of 5,289 applicants. Within this total 1,495 are public housing applicants and 3794 applicants awaiting Section 8 housing. Because it would not be possible to serve all the applicants on the waiting list within 5 years, the list was closed in August, 1994 to all new applicants except for the elderly, handicapped, and families of six or more.
The RHA also plays a key role in assisting the homeless population of Raleigh. RHA manages the city's nine-unit transitional housing complex for homeless families.
The Raleigh Housing Authority has undergone many significant changes over the last 2 years, including changes in senior management and the Board of Commissioners. Budget shortages have resulted in the downsizing of staff and reorganization of several departments.
One of the major factors affecting the availability of affordable housing is the vitality of the area's economy. During the mid-to-late 1980s, as the economy grew, the gap between the affluent and less well-off widened. The increasing migration of family households to the area triggered a major housing boom which lead to an increase in multifamily developments. The majority of these multifamily housing developments targeted relatively affluent households, and construction reflected their demands. These changes signaled more expensive housing throughout the area. A 1993 rental survey found that only one in four of all Raleigh households could afford a two-bedroom apartment.
Raleigh maintains an Office of Fair Housing within its Community Services Department. This office is responsible for receiving and investigating complaints of discrimination resulting from violations of the city's Fair Housing Ordinance. The Office of Fair Housing and the Fair Housing Hearing Board, a body appointed by the City Council, work together to enforce fair housing issues.
Based on the age of structures, it is estimated that 51,343 housing units in Raleigh contain lead-based paint that can cause lead poisoning in children. Although State and county figures are not in full agreement, it appears that 682 children had blood-lead levels above that stipulated as the dangerous threshold. Attempts to chart the location of homes of any children who showed abnormal concentrations found only the pattern of greater likelihood in homes built before the mid-1980s.
There continues to be a need for supportive and transitional housing for persons with special needs resulting from severe mental illness, alcohol and drug addiction, AIDS and domestic violence, and physical disabilities.
Six redevelopment areas and 13 conservation areas have been defined within Raleigh. These are older, deteriorated neighborhoods. Active, multipurpose plans for these areas have been prepared through a rigorous public input and review process.
Definite patterns of community development needs have emerged. With increased suburbanization, the housing stock in these older neighborhoods has not met market demands. There has been some upgrading due to gentrification, but the historically African American neighborhoods have not benefitted from such an influx of capital. Several of these older neighborhoods suffer from deteriorated buildings, problems including crime, unemployment, underemployment, homelessness, teenage pregnancy, unstable family situations, drug abuse and disease.
Beyond the primary need for decent and affordable housing is need for education, training for employment, and increased economic development. Residents also need information about resources and services available to them. Poverty in the areas leads to a complex of problems such as business disinvestment and lack of health care.
The 5-year Housing and Community Development Plan is based on an overall vision to provide attractive affordable housing and to revitalize older neighborhoods.
Overall goals of the Strategic Plan are to:
The city has developed priorities for allocating housing dollars based on consultations with the many community organization that serve targeted households. First priority will go to:
Second priority goes to:
Third priority is accorded to supporting facilities and services to nonhomeless families and individuals.
Raleigh's nonhousing community development priorities focus on:
The city has attempted to set strategies to change the economic conditions which promote and foster a climate of poverty. The city will use the following antipoverty tools:
Financial resources for carrying out the strategic plan will come from various Federal, State and local programs. Total funding of all available resources is estimated at $13,663,987.
CDBG funding will focus on housing rehabilitation, economic development, public facilities and improvements, acquisition, assemblage, planning, clearance, and disposition of real property. These activates will help expand the affordable housing base, promote community revitalization, create jobs opportunities, rehabilitate existing housing in substandard condition, demolish unsafe housing and acquire property for both residential and commercial use.
HOME funding will be used to emphasize homeowner rehabilitation, purchase of public housing and support of Community Housing Development (CHDO) activities. This will assist low-income elderly homeowners who are unable to rehabilitate their homes and will provide additional affordable housing through the support of CHDO activities.
Emergency Shelter Grant funding will be used to operate and maintain support services for both emergency shelter and transitional housing for homeless persons. This will assist in providing additional funding needed to increases services for the homeless.
Lead agency for carrying out the strategic plan is the Community Development Department. Implementation and technical assistance of each stage of the plan are expected to come from a variety of local government agencies, nonprofit, businesses, and other community-based organizations. Raleigh is closely working with more than 26 community-based organizations, social service agencies, businesses, church groups, and the county government to assist in the implementation and technical assistance of all programs.
The 1-year action plan outlines the proposed uses of the approximately $4 million from CDBG, HOME, and ESG. Some highlights of activities by program are:
Community Development Block Grant:
HOME Program:
Emergency Shelter Grant:
MAP 1 depicts points of interest in the jurisdiction.
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; as well as, provides a table with information about the project(s).
