The Consolidated Plan identifies New Jersey's needs for affordable housing and supportive services and outlines a strategy for addressing those needs. The Plan consolidates into a single submission the planning and application requirements of HOME, HOPWA, Emergency Shelter Grant (ESG) and Community Development Block Grant (CDBG) Programs. The State's Consolidated Plan is a reaffirmation of the national housing and community development goals for safe, decent housing, a suitable living environment, and expanding economic opportunity for low and moderate income Americans. The Plan, while drafted in accordance with the applicable federal regulations, also complements two innovative New Jersey housing and community development initiatives: Governor Whitman's Urban Strategy and State Housing Policy, Housing and Economic Assistance Strategy (H-EASY 2000). Both the Governor's Urban Strategy and H-EASY 2000 encourage a neighborhood approach and comprehensive strategic planning.
The Governor's Urban Strategy emphasizes a neighborhood-by-neighborhood approach to redevelopment. The Urban Strategy promotes partnerships between the State and interested communities to devise neighborhood-based, community-driven redevelopment strategies. It also provides for the targeting and coordination of State programs so that the programs satisfy the unique needs of each community. Four cities, Trenton, Asbury Park, Camden and Elizabeth, have been targeted for this initiative.
This summary contains a 1-year action plan for specific projects using CDBG, HOME, and ESG funds to promote expansion of the supply of housing for very low-, low-, and moderate-income persons, including those who are homeless or have special needs. These projects also address community needs for various public facilities, social services, economic development and environmental quality.
The State's Consolidated Plan is structured to provide the opportunity for
comprehensive strategic planning and encourage citizen participation. The Plan
allows State and local governments, community development organizations,
non-profit entities, developers and citizens to work as a team to develop
effective, coordinated planning strategies. Additionally, the Plan furthers the
goals of 1) providing decent housing, 2) establishing and maintaining a suitable
living environment, and 3) expanding economic opportunities, particularly for
very low-income and low-income persons.
During the 1980s the State of New Jersey experienced an economic boom. The median household income grew 108 percent from $19,000 to 40,927. The number of jobs increased by 17 percent to 600,000 persons in the workforce statewide. Unfortunately, during the same period, housing costs also increased substantially. Between 1980 and 1989, the median sale price of a house increased by 164 percent from $61,400 to $162,300. The latter resulted in the average homebuyer paying four times his or her salary to purchase a house in the State.
During the 1980s, the population in the State's largest urban areas declined with the exception of Camden, Elizabeth, and Jersey City. Overall, the State's population residing in its largest cities declined by three percent between 1980 and 1990, according to Census statistics. In contrast, there was a significant increase in the population in both the suburban and rural areas of the State, with the largest population growth occurring in the Central Region of the State (Hunterdon, Mercer, Middlesex, Monmouth, Ocean, and Somerset Counties). Ocean County's population increased by 25.2 percent and Somerset County grew by 18.3 percent during this time period.
The largest racial groups experiencing growth in the State were Hispanic, and Asian and Pacific Islander groups. These two groups experienced a 148 and 50 percent increase respectively. Despite their rapid growth, these two groups account for only 13 percent of the state's total population in 1990.
Of the State's total population, 573,172 or 7.6 percent fall below the poverty level. The municipality with the highest percentage of below-poverty residents is Camden City with 36.6 percent of all residents below poverty income.
In 1990 there were 3,075,310 housing units in the State, representing a 10.9 percent increase from 1980. The majority of this increase was due to the production of 233,554 sale units throughout the State. During the last decade, there was only 1 new rental unit built for every 18 for-sale single family units built in the State as a whole. Vacancy rates are another indicator of housing and rehabilitation needs. When vacation and other seasonal units are removed from the inventory, 5.9 percent of the State's housing is vacant.
More than half of the State's housing stock is classified as old since it was built before 1960. Approximately 53 percent of the housing units were built before 1960 and 25 percent were built before 1940. The majority of this older housing stock is in the northern region of the State, while the newest housing is in Ocean County with half of its units constructed since 1970.
Of the 930,000 rental households in the State in 1990, 38 percent spend more than 30 percent of income on rent and utilities. Fifty-nine percent of these cost-burdened rental households are found in the northern region of the State and only 17 percent in the southern region.
Of the State's 2.8 million households, 32,5 percent have some form of housing problem: overcrowding, excessive rent burden, or substandard conditions. Not surprisingly, 90 percent of the very-low income, large rental households are affected by these types of housing problems. These households are concentrated in the norther region of the State.
Based on a 1993 study conducted by the State, a profile of New Jersey's homeless was obtained. The homeless are almost equally female as male, with 51 percent male and are predominantly young. Nearly two-thirds of those interviewed for the study were 35 years of age or younger and the same percentage were minorities. They are uniquely poor, unemployed, and either un- or under-educated.
The reasons for the homeless population's condition are not necessarily personal inadequacy. Assumptions that a high percentage of individuals are homeless due primarily to physical illness, mental illness, or drug and alcohol abuse has not been substantiated through this study. Instead the survey data suggests that economic factors were believed by the respondents to first and foremost contribute to their homeless state. The data results do suggest that there may be other dynamics at work contributing to a person's homelessness, such as health, race, household composition, and social/personal factors. In addition to lacking financial and educational resources, it may be that the homeless population also lacks social resources and supports, or loses them quickly as their financial situation worsens.
Beginning in 1988, an interagency initiative was established by the New Jersey Department of Community Affairs to facilitate the effective coordination and provision of resources to the State's homeless population from various state and local agencies. It was conceived as a holistic approach to the problems and solutions of homelessness. This strategic response to the State's goal of eliminating homelessness was initiated through the execution of formal interagency agreements between the New Jersey Department of Community Affairs and the Department of Human Services. In 1989 an Interdepartmental Planning Committee composed of State departments assisting the homeless was established to implement a statewide homeless system to strengthen this effort. The Departments of Community Affairs and Human Services are the lead agencies that co-chair the Committee.
The Consolidated Planning process provides an opportunity for New Jersey to examine its community development needs and resources available to address those needs. While "community development" encompasses a broad range of programs and activities, the scope of community development activities included in the State's first Consolidated Plan will be limited to the Small Cities Community Development Block Grant (CDBG) program. This section of the Plan analyzes goals and policy issues which extend beyond the CDBG program, but the community development needs will be limited to the State's CDBG program.
The overall mission of the New Jersey CDBG program is to improve and maintain the economic and physical environment of eligible municipalities and counties so as to enhance the quality of life for their residents. Based upon information obtained in focus group meetings and recommendations from participants in the State's public hearing, the most significant community development needs are as follows:
Only the needs that address the primary objectives of the 1974 Housing and
Community Development Act will be considered for funding during the five-year
period covered by New Jersey's Consolidated Plan.
The Department of Community Affairs (Department) developed the Consolidated Plan using a participatory process. In order to obtain citizen views and input, the State established four Focus Groups comprised of representatives from public and private agencies, lending institutions and non-profit organizations. Each Focus Group was responsible for reviewing pertinent legislation, statistical information, and other relevant data to determine the State's needs and formulate a preliminary allocation plan. The recommendations provided by the respective focus groups assisted the State in identifying and prioritizing the following Consolidated Plan goals:
The specific objectives of the State's program are:
In this section, the State establishes priorities for assisting low-income
residents to obtain affordable housing. The Plan is based on an analysis of the
State's needs and market and inventory described in the Housing Market Analysis
and Housing and Homeless Needs sections. In addition, this section describes
the State's priority non-housing community development needs by Community
Development Block Grant eligibility category, reflecting the needs for each type
of activity.
For Fiscal Year 1995, the State of New Jersey anticipates receiving approximately $130 million in Federal funds to address the priority needs described in the Strategic Plan section. In addition, New Jersey anticipates using approximately $25 million in State funds. The priorities for expenditure of those funds are as follows:
The State of New Jersey is committed to addressing the housing, economic, and community development needs throughout the state, but will focus on those areas that are in desperate need of assistance.
Sheri Malnak
Program Administrator
State of New Jersey
Phone: (609) 984-8453