Lincoln's Consolidated Plan for 1995 constitutes the City's vision for meeting its housing and community development needs. This summary offers City residents an overview of the needs assessment, a five year strategy to meet the needs and a detailed Action Plan for FY 1995 Federal expenditures with HUD assistance.

Action Plan

The Action Plan provides for HUD Federal assistance in FY 1995 in the following amounts:

• Community Development Block Grants (CDBG) Program $2,620,000
• HOME Investment Partnership (HOME) Program $883,000.

Citizen Participation

A "Citizen's Guide to the Consolidated Plan" for FY 1995 CDBG and HOME funds was mailed to neighborhood associations, current and past recipients, all interested agencies and service providers, the press and the public libraries. Surveys were gathered from the general community, EC residents and human service providers to the low-income population. The results were presented to the Community Development Task Force (CDTF), City Council, Mayors Office and the press in January, 1995. In March, 1995 an open forum was held for nonprofit, human service providers and individuals, plus CDTC members, to draft strategies to guide implementation of the Plan from 1995 to 1999. After several work sessions, public hearings were held on the Plan on June 1 and July 10, the second being part of the City Council meeting approving the Consolidated Plan.

The 1990 Census indicates that the population of the City of Lincoln was 191,972 persons, an increase of 11.7 percent between 1980 and 1990. Between 1960 and 1980, population growth in Lincoln had been at least 15 percent per decade, increasing from 128,521 in 1960 to 149,518 in 1970 and to 171,932 in 1980.

The number of households in a city is a primary indicator of housing demand. In Lincoln, household growth outpaced population growth between 1970 and 1990. In 1990, there were 75,530 households and a population of 191,972. The number of households grew by 55.4 percent, while the population grew by just 28.4 percent. One-person households increased dramatically from 1970 to 1990, from 12,411 to 21,712. Elderly households accounted for 46.7 percent of the city's one-person households in 1990.

The number of single woman with children increased by over 40 percent during the 1980s, about 2 1/2 times the growth rate of all families with children. In 1990, single woman with children represented 19.5 percent of families with children, but accounted for 40 percent of the increase in families with children. Minority families increased from 857 (2.4 % of total families) in 1970 to 1,723 (4.1 %) in 1980 to 2,451 (5.2 %) in 1990.

Between 1980 and 1990, the number of persons with incomes below the poverty level increased 43.7 %, families 33.9 %, minority families 169.4 % , and female-headed families 63.1% (minority 165 %). In 1990, 10,789 or 14.3 % of Lincoln's households had incomes of less than $10,000 while 27.9 % of minority households had less than $10,000. Of the minority households, 469 were Black, 142 Native Americans, 269 Asians, and 253 were of Spanish origin.

Housing Needs

Of the 75,530 households in Lincoln, 42.9 percent have incomes at or below 80 percent of the city's median family income. That represents 32,413 households. According to recent data, 15,178 of these households are paying in excess of 30 percent of their incomes for housing and, therefore, fit the definition of experiencing cost burden problems. Almost one-half (43.2 percent) of these households are experiencing severe cost burden problems in that they pay 50 percent or more of their incomes for housing.

Renter households have a much higher incidence of cost burden problems. Some 79 percent of the extremely-low-income (0-30 percent of median family income) renter households pay in excess of 30 percent of their incomes for housing, while 73 percent of the very- low-income (31-50 percent of median family income) renter households are experiencing similar cost burden problems. More importantly, 65 percent of the extremely-low-income renters and 14 percent of the very- low-income renters pay in excess of 50 percent of their incomes for housing, and 5,233 pay in excess of 50 percent.

The needs and issues identified in the housing category are not new. The severity of the needs, however, have increased as the population of Lincoln has grown and as household composition has changed. Below are key indicators of that change.

• The population has increased 11.7% since 1980, and the number of housing units has increased 5%.
• The number of households in Lincoln increased by 55.4% between 1970 and 1990 while the population increased by 28.4%.
• 42.9% of all households in Lincoln have incomes at or below 80% of the city's median income.
• The percentage of persons below poverty increased from 8.9% in 1970 to 10.7% in 1990.
• Median contract rent rose 68 % from 1980 to 1990, while median family income rose 69 % in the same period. In short, a 69% increase in median income realized only a I% increase in discretionary income relative to housing costs.
• Median family income in the low/moderate income census tracts has lost ground to the City median family income since 1970, while median contract rent rose 68.2%.
• 11,802 renter households with incomes under 80% of the median family income pay in excess of 30% of their income for housing. 5,562 renter households, with incomes under 80%, pay over 50% of their incomes for housing.
• The Lincoln Housing Authority waiting list rose from 845 households in March, 1984, to 2,723 households in December, 1994.
• The vacancy rate for rental housing is historically less than 5.0%. In essence, there is not a wide range of housing choices for households with low incomes.
• Homeownership has declined from 63.12% in 1970 to 57.92% in 1990.
• Homeownership in the low/moderate income census tracts has declined since 1970 and is substantially less than 50% in most cases.
• 19,178 owner households with incomes at or below 80 % of the City median income are paying in excess of 30% of their incomes for housing.

As evidenced by the number of cost burdened households, the Lincoln Housing Authority waiting list, and the low vacancy rates, multiple measures must be taken to address the affordability and availability of low income housing. The provision of affordable housing, whether new construction or rehabilitated units, should be considered in conjunction with the provision of human services to help households maximize their full potential and, where possible, achieve self-sufficiency. Rental assistance is available to relieve cost burden. The federal government subsidizes rental housing with project-based and tenant-based assistance.

Housing Market Conditions

Number and Types of Units.During the 1980s, construction in Lincoln slowed considerably from the preceding ten year period. The number of housing units increased by 9,941 or 14.4 percent, to total 79,079 compared to an increase of 17,688 units (34.4 percent) during the 1970s. Although there have been more single-family than multi-family units constructed during the past 20 years, the rate of increase for multifamily units has been more than three times that of single family dwellings. Construction of multifamily units is at its highest rate since 1977, with 830 units built in 1989 and 1,025 units built in 1990. Single-family unit construction was 815 in 1989 and 949 in 1990.

Value of Housing Stock and Median Rent. According to the Census, the median value of Lincoln's owner-occupied housing in 1970 was $16, 100, increasing to $61,400 in 1990. Median sales price is now $83,751. During the 1980s, the rate of increase in median rent slowed considerably compared to the previous decade when rents increased by 270 percent. However, median cash rent requirements have increased 68.2 percent since 1980, more than double the increase in median value of owner-occupied units. Monthly contract rents are approximately $345 for one-bedroom units, $439 for two-bedroom, and $591 for three-bedroom units. In May, 1995, the rental vacancy rate was approximately 3.1 percent city-wide compared to a 7.4% national average.

Affordable Housing Needs

The federal government has established that households can afford housing that costs 30 percent (or less) of their income. An analysis of median family income and median contract rent indicates that median family income rose from $21,317 in 1980 to $36,074 in 1990. At the same time median contract rent rose 68 percent, from $192 per month to $323 per month. It is not surprising that the Lincoln Housing Authority has seen their waiting list increase from 845 as of March 1984 to 2,689 as of March, 1994. The average length of time on the waiting list ranges from nine months for an efficiency unit to 18 months for those needing a two-bedroom unit.

Homeless Needs

There was a homeless population of approximately 2,600 persons in 1994, composed of 515 homeless families, 335 youth and 665 adults. It is estimated that 465 individuals were unsheltered homeless, 1,730 individuals in emergency shelter and 405 individuals in transitional housing. Of the 2,600, 25.5 % were leaving domestic violence situations, 21.5 percent were substance abusers, 7.5 % were mentally ill and 1.3 % due to AIDS/related diseases.

Homeless problems with highest priority are:

• lack of jobs for those without skills and job training opportunities
• waiting period for Section 8 certificates/vouchers
• domestic violence, child/spouse/parental abuse
• drug and alcohol abuse
• basic housekeeping/living skills

Population with Special Needs - Other than Homeless

Elderly. The 1990 Census indicates that there are 21,005 elderly individuals in Lincoln in 14,717 households. There are also 1,362 elderly individuals living in nursing homes or group quarters. A recent study noted the following problems: 1) transportation, 2) in-home services 3) medical/mental health care, 4) companionship/loneliness, 5) abuse/neglect, and 6) information exchange.

Developmentally Disabled. The Lincoln Public School system indicates there are 2,216 students with behavioral disorders, learning disabilities and mental handicaps enrolled in school. This number represents a 69.6 percent increase since the 1988-89 school year in students with behavioral disorders, a 30 percent increase in students with learning disabilities, and a 7 percent increase in students with severe mental handicap's. Overall, it is estimated that 3 percent of Lincoln's population are mentally retarded.

Physically Disabled. The 1990 Census for the City of Lincoln documented that 14,055 individuals had work disabilities, and 13,658 of these individuals had mobility limitations.

Persons with Substance Abuse Problems. It is estimated that 7 percent of the population has a substance abuse problem. In Lincoln, that would yield 13,438 individuals with problems severe enough to need intervention and out-patient treatment.

Persons Diagnosed with AIDS and Related Diseases. Since 1985, 7,477 persons have been tested and 117 have tested positive. With a waiting period of 16 months to obtain housing assistance and a life expectancy of 2 years after the diagnosis of AIDS, conventional access to housing assistance is not a very viable option. .

Public and Assisted Housing Needs

Public Housing. There are 281 public housing units in the City of Lincoln. Only three units were vacant in 1993. The Section 8 Program provides both tenant-based and project-based assistance. Rental housing assistance certificate or vouchers are allocated by the Housing Authority according to their waiting list by unit size in terms of bedrooms. The certificates or vouchers are used to subsidize rents in privately owned rental units meeting fair market rent limits and housing quality standards.

Lead-Based Paint

Approximately 58 percent of the City's housing units are over 20 years old which is approximately when lead based paint was no longer acceptable for residential purposes. That percentage equates to 46,000 housing units in Lincoln. In random testing, only 10 percent of the elementary students showed elevated blood lead levels. Applying the same 10 percent to structures over 20 years old would yield an estimate of 4,600 units that pose a lead-based paint hazard. The Lincoln Lancaster County Health Department has conducted preliminary tests on elementary school students and has received federal funds to expand these endeavors.

Community Development Needs

Non-housing community development needs generally include human services and physical improvements.

Human Services. Study of human service delivery systems helped identify priority needs. They are very broad and cover:

• Crime and violence
• Need to increase self-sufficiency (jobs/job training/economic opportunity)
• Lack of knowledge and access to human service delivery system
• Health service - prevention and crises services
• Need for holistic, coordinated human service delivery system with information sharing, cooperative ventures and collaborative efforts

Physical Improvements. The City of Lincoln' s current Capital Improvement Program (CIP) for 1995-2001 outlines projects valued at more than $554 million over the six-year period. The projects outlined in the CIP include a $288 million investment in power plants, $99.3 million in street improvements, $37 million in wastewater improvements, $12.5 million for new branch libraries and $8 million for improvements to the City's recreational facilities including the development of the Tierra Park Family Aquatics Center. The EC strategic plan and four target area action plans, plus projects of smaller scope have identified additional needs.

Economic Development. Lincoln is among the top performers in terms of economic viability among cities of its size, type, and diversity in the United States. In spite of Lincoln's current situation, there is a concern that without a focus on the economic development challenges facing the city, that situation could change for the worse. To reduce the possibility of this happening, a strong unified, strategic initiative must be developed to meet two needs:

1. To unite the current fragmentary approach to economic development. A need exists for a permanent, community-based, public-private partnership to provide long-term, strategic direction for the community with a stake in issues related to workforce training, education, industry, and government.
2. To correct a number of critical weaknesses in Lincoln's economic development capacity. Primarily, there is no central organization focused directly on the problem.

Vision for Change

The primary objectives reflect the statutory goals for the programs involved:

• Provide decent housing by assisting homeless persons through transitional housing, preserving existing housing stock, increasing the availability of affordable housing units for families at or below 80 % of the median income, and providing supportive or service-enriched housing to enable families to work toward self sufficiency.
• Provide a suitable living environment by increasing access to quality facilities and services, revitalizing deteriorating neighborhoods, encouraging the economic integration of neighborhoods and improving the safety and liveability of neighborhoods.
• Expand economic opportunities by creating jobs accessible to low-income persons, providing low-income persons with the skills to improve their employability, and empowering low-income persons to achieve self sufficiency.

Housing and Community Development Strategy

The preceding narrative presented the priority needs of the City of Lincoln. Although the Consolidated Plan looks at the needs of the entire city, emphasis must be given to areas that are most in need. In keeping with that directive, three geographic areas have been identified for Lincoln's strategy implementation: (1) the EC/Target Areas; (2) the balance of the City's HUD-designated low- and moderate income areas; and (3) city-wide.

1. The City of Lincoln, in its application for an Enterprise Community (EC) designation, identified eight census tracts to concentrate activities that would bring people out of poverty. The EC area represents the inner-city of Lincoln and is comprised of Census Tracts 4, 5, 7, 8, 17, 18, 19, and 20. As part of the City's analysis of neighborhood status and change, four target areas, located in parts of Census Tracts 16, 21, 22, and 23, were identified for concentrated revitalization efforts over a three to five year period beginning in FY 1993.
2. The balance of the HUD-designated low-and moderate-income areas in Lincoln represent the next tier of program concentration. These census tracts have a population base (51% or greater) with household incomes under 80% of the City's medium income, older housing stock, decreasing home ownership, and an increase in rental housing. Within this area, certain core programs should be offered to stabilize the area and encourage the reinvestment in the human and physical assets. Since the key indicators have not declined as significantly as in the EC/Target areas, there will be fewer programs offered.
3. The need to respond to emergencies and to strive for economic integration are two reasons to offer some programs city-wide. For example, new affordable housing should not be concentrated only in one area of the City. The City should utilize CDBG and HOME resources to enable economic integration of all of Lincoln's neighborhoods.

EC/Target Areas Facilitate the affordability and accessibility of housing (below 80% of median income) through preservation, rehabilitation and new construction; and provide for emergency housing repairs for very-low-income owners.

• Increase homeownership activities.
• Support the development of coordinated human service delivery system through either neighborhood-based community centers (e.g., schools, senior centers, community centers etc.) or outreach services .
• Support existing Supportive Housing Programs and new supportive housing developments, including transitional housing.
• Coordinate job training, skill development and employment opportunities for low-and-very-low-income residents , especially those receiving CDBG economic development assistance.
• Support expansion of mentoring and youth employability programs.
• Assist very-low-and low-income entrepreneurs.
• Implement commercial/neighborhood public improvements to act as an impetus for investment.

HUD designated Low-and Moderate-Income Areas

• Facilitate the affordability and accessibility of housing, principally for households at or below 80% of the City's median income, through preservation, rehabilitation, and new construction; and provide for emergency repairs for very-low-income owners.
• Increase home ownership opportunities
• Support the development of coordinated human service delivery system through either neighborhood based community centers or outreach services.
• Support existing Supportive Housing Programs and new supportive housing developments, including transitional housing.
• Create job training and employment opportunities.

City-wide

• Support affordable and supportive housing to further economic integration.
• Provide for emergency housing repairs fore very -low -income owners.
• Assist very-low-and low-income entrepreneurs.
• Create job training and employment opportunities.

Public Housing

The Lincoln Housing Authority is cognizant of the growing need for its services. It is involved in four programs that assist homeless families and individuals. These are the Friendship Home (domestic violence), Fresh Start (single homeless women), Transitions Project (Catholic Social Services transitional housing), and the HUD Homeless Program (homeless families). The Housing Authority is working to develop and implement the 'Step Up Program. The Step Up Program is an employment and (apprenticeship) program that provides support services to housing authority tenants and other low-income persons. Support services may include child care, transportation, career, educational, and other counseling and classroom instruction to supplement work experience and develop basic learning and personal skills including homeownership training and assistance.

Anti-Poverty Strategy

Reduction of poverty is a multi-faceted problem. The intent of the City's rehabilitation, economic development, and affordable housing programs is to increase the discretionary income of the beneficiaries of the assistance while also improving the quality of their housing. Therefore, rehabilitation loans to owners allow the work to be accomplished without requiring upfront financing, or increased rent. Loans to businesses and industry are based upon the ability to hire additional people from the low and moderate income population. Job training grants to industries allow untrained people to be hired without impacting the companies' profit margin during the training phase.

The intent of the Consolidated Plan is to implement a more holistic approach to households in need. Since rehabilitation of the City's housing stock is a primary activity of the CDBG and HOME programs, a family assessment/case management process will be incorporated into the City's rehabilitation loan programs. This process will enable the recognition of problems or needs and facilitate the delivery of appropriate services.

This section describes the programs and activities that Lincoln will undertake with CDBG, HOME, and other funding sources to address priority needs and local objectives in FY 95.

Community development efforts work most effectively when communities concentrate investments linking housing, economic development, and social services spending. The first overall strategy of this Consolidated Plan is the geographic structuring of program delivery. The second overall strategy is that every effort would be made to link physical redevelopment with the development of the household's human assets. Given these two overall strategies, each of the three geographic areas of emphasis will have an array of program activities in housing, non-housing community development, and economic development.

The Action Plan contains detailed descriptions of a multitude of activities to be carried out in FY 1995 with costs and the institutional arrangements for cost sharing. A chart is provided to indicate the three geographic areas of program availability. Examples of some of the major activities are:

• CDBG Program - $2,620,000
• Home Improvement Loan Program $126,000
• Direct and Deferred Loan Program 180,000
• Investor-Owner Rehabilitation Program 189,270
• Hispanic Community Center 140,000
• Economic Development 798,590
• HOME Program - $883,000
• First Home Program 300,000
• Community Housing Devel. Org. (CHDO) 209,750
• Owner-occupied Rehabilitation 230,950

Maps

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 project(s) from a street level vantage point; in addition, a table provides information about the project(s).

Mr. James J. Caruso,
Urban Development Director
(402) 441-7858