Albuquerque's Consolidated Plan presents a strategic vision for public facilities, housing, human services, and economic development in four target areas and for lower-income persons citywide. It includes a One- Year Action Plan for spending $5,714,00 in Community Development Block Grant (CDBG) Funds, $1,885,000 in HOME Investment Partnership funds, and $201,000 in Emergency Shelter Grant (ESG) funds. The plan also provides for $500,000 in City cash match for the HOME program, $201,000 in City cash match for ESG, and $10,643,400 in other City funds designated for projects included in the One-Year Action Plan.
Development of Albuquerque's Consolidated Plan was initiated with the preparation of the City's application for designation of one CDBG target area as an Enterprise Community. The EC plan was linked to the Consolidated Plan because CDBG and other HUD entitlements were assumed to be essential resources in the overall development of the EC area. The EC planning process was guided by the Citizen's Advisory Group, a 24-member body appointed by the Mayor and Council that is established by ordinance to oversee CDBG planning. The EC process involved a series of general community meetings leading to the recommendation of the boundaries of the proposed EC by the CAG.
The area designated corresponded closely to the Central Albuquerque CDBG target area. Following designation there were additional public meetings and a series of focus groups with lower-income residents of the EC area. CAG members were assisted in this by technical teams involving urban planners, architects, representatives of public and nonprofit human services agencies. CAG members formulated the recommendations from these meetings into an action plan that included the use of CDBG, HOME, ESG and other resources in carrying out the EC plan.
Following completion of the EC plan, CAG members replicated the process of community meetings and focus groups in other CDBG target areas (North Valley, East Central, and Southwest Mesa). The CAG also conducted a general public hearing that solicited community and agency input into the development of the Plan. In a series of public meetings, CAG members reviewed the information obtained from the public participation process and formulated the specific activities for the use of CDBG, HOME, and ESG in these target areas. These activities along with those formulated earlier in the development of the EC plan were then incorporated into the Consolidated Plan's One Year Action Plan.
A summary of the draft plan was published in the Albuquerque Journal and
Albuquerque Tribune daily from October 14-16. Full copies of the draft plan
were placed on display at the main public library, the downtown office of the
Department of Family and Community Services, at three neighborhood multi-service
centers, and at the offices of Albuquerque Housing Services (the local PHA).
The summary not only described the contents and purpose of the plan, but
included a list of locations where copies of the entire document could be
examined and invited citizens to a public hearing to be held on November 1 at
which formal adoption of the Plan would be considered. The list of locations
and notice of the public hearing was also publicized in The Neighborhood News, a
newsletter published by the City's Office of Neighborhood Coordination and
circulated to members of more than 150 recognized neighborhood associations in
the City.
Lower income households are heavily concentrated in four areas of the City:
Central Albuquerque, East Central Albuquerque, the Southwest Mesa, and the North
Valley. Central Albuquerque and the North Valley are areas that are
overwhelmingly Hispanic, with urban neighborhoods that are rooted in the initial
Spanish/Mexican villages established in the 18th century. The population of the
Southwest Mesa is also predominantly Hispanic in a lower-income suburban
development. East Central has the highest concentration of multi-family rental
housing units in the City and the lowest proportion of home ownership. It is a
"gateway" neighborhood with an ethnically diverse population including
the highest concentrations of Native Americans and Asians in the City.
The City as a whole has a healthy economic base fueled for decades by federal government defense-related spending for military installations and nuclear weapons research. In addition to Sandia National Laboratories (a nuclear weapons research facility), the metropolitan area boasts several major defense contractors and high-tech related industries. The presence of the University of New Mexico, Sandia National Laboratories, and the USAF Phillips Laboratory has contributed to creation of a strong professional/technical work force that can support innumerable investment opportunities.
Historically, Albuquerque's economy has been based on government employment and services with a small manufacturing sector. This has begun to change. Manufacturing employment in Albuquerque has increased dramatically, particularly in the high tech sector. A major driving force of this change has been massive expansion of Intel Corporation's Albuquerque-area computer chip fabrication plant and related manufacturing spawned by Intel's investments in Albuquerque.
Population growth in Albuquerque continues to be strong, job growth exceeds the national average, and unemployment is at 4.3%.
Rapid population growth has created a surging housing market in Albuquerque both in the rental and owner occupied sectors. Construction of new single family homes in Albuquerque has consistently outpaced the national average since 1990. Strong demand, however, has also resulted in steadily rising costs for new and existing single family homes. The National Association of Home Builders recently ranked Albuquerque as the 11th least affordable housing market in the nation.
Similar factors have affected the rental housing market. Driven by strong population growth, demand for rental housing surged after 1990. Vacancy rates fell dramatically, reaching a low of 1.7% in October of 1993, and rents increased sharply. Construction of new units lagged significantly behind demand. By 1995, the market had corrected slightly. New units had come on line and vacancy rates have increased to about 3%. Most new units that have come on line, however, have been in the luxury rental market and have brought little relief to rising rents. In 1995 there were approximately 3,000 additional apartment units permitted or under construction in the Albuquerque market. As the units come onto the market the shortage of rental housing is expected to ease even more. Since most of these units are designed as high-rent luxury units it is unclear whether their entry onto the market will have any significant immediate effect on rents.
There is a pressing need for expanding the availability of affordable rental housing. In Albuquerque's current rental market, the average market rate rents are no longer affordable to households with incomes under 80% of median income given normal occupancy levels. Approximately 75% of low income renters in Albuquerque in 1993 were spending more than 30% of gross income on rent and utilities. Rents, moreover, have been rising at a rate of 10%-12% annually since that time. Affordability problems are especially severe for large low-income households. There is a general scarcity of rental units of four or more bedrooms and those that do exist are generally available only at the high end of the market range.
A second major problem is that home ownership is becoming increasingly difficult for lower-income households. A significant need in the community, therefore, is public investment in housing that is affordable for purchase by households under 80% of the median income. Given the rapidly increasing prices for new and existing single family homes in the Albuquerque housing market, home ownership without assistance is difficult for families with incomes at 80%-100% of the median income and generally impossible for families under 80% of median income. A report prepared for the City noted that $75,000 is the maximum home price affordable to households below 80% of median income and that "there are virtually no new single family homes being constructed in Bernalillo County...priced below $75,000." The report further indicated that, given land prices, "no ?affordable housing' is likely to be developed without public participation." The study also found that only about 20% of existing homes on the market were at a price affordable to persons under 80% of median income.
There is also a continuing need to preserve the existing stock of housing owned and occupied by lower- income households through housing rehabilitation and emergency home repair programs. Deterioration of owner occupied homes in lower income areas of the City, especially those with older housing stock, remains a significant problem in Albuquerque. Lower income home owners face major crises when faced with the need to make costly home repairs to address damages from weather related problems, vandalism, or the effects of deterioration resulting from deferred maintenance. Preservation of this housing stock is a cost effective approach to achieving both affordable housing and home ownership among lower-income households.
The number of homeless persons in Albuquerque on any given night is approximately 1,500 persons. Upwards of 1,500 additional persons, moreover, are dependent on services targeted to the street and shelter population (particularly congregate meals, health care for the homeless, and employment services). These individuals are marginally housed and may experience homelessness episodically.
The homeless population consists primarily of solitary males, with an estimated 1,200 solitary persons and 300 persons in families homeless on any given night. Data indicate that about 49% of the general homeless population is Anglo; 34% Hispanic; 5% African American; and 12% Native American. Among families, program data indicate that 40% are Anglo; 39% Hispanic; 6% African American; and 13% Native American. Program targeted to the homeless mentally ill report that 59% were Anglo; 31% Hispanic; 7% African American; and 3% Native American.
The segments of the population that appear at highest risk for homelessness are very low income individuals living alone or in non-family households and single parent households with young children with incomes under 30% of median. Mental illness is a clear secondary risk factor, and persons with severely disabling mental illness make up about 30% of the homeless population. Substance abuse is also a major risk factor as homeless providers report that as high as 70% of the homeless population has serious substance abuse problems. Domestic violence appears to the major contributory factor in family homelessness.
There is emergency shelter space available to house about 40% of the solitary male homeless population and 70%-75% of families and solitary women. There is a great unmet need in providing supportive transitional housing for all segments of the homeless population.
The community provides a wide array of supportive services including congregate meals, health care, substance abuse treatment, employment, specialized child care, and mental health case management and treatment. It appears that nutrition services are adequate to meet local needs. The local health care for the homeless program appears adequate to meet basic primary medical care needs. There are serious gaps in the availability of substance abuse treatment and mental health services.
The City of Albuquerque Housing Services Division functions as the Public Housing Authority for the city. The Division administers 995 units of public housing. Of these, 373 units are occupied elderly persons or persons with disability and 622 are family units. All of the public housing units were built after 1972 and are generally in good condition. Testing has show no evidence of lead-based paint in any public housing units. Public housing units in Albuquerque are widely distributed throughout the city in relatively small housing complexes (15-25 units). Public housing reports no vacancies.
The Division also assists 2,489 households through Section 8 rental assistance vouchers or certificates. Currently the Section 8 program assists 448 elderly or disabled households and 2,041 families. Of the Section 8 units, 163 are project-based and 2,326 tenant-based.
The City also owns approximately 300 units of mixed income multi-family units purchased with non-federal funds. Approximately 40% of the tenants in the units are made available to households under 65% MFI at affordable rents. The balance of the units are rented at market rents. The units are self-sufficient in operating and maintenance costs, with sufficient net revenue to provide rental subsidies to lower income residents.
In addition to City administered assisted housing, the Albuquerque HUD Field Office reports a total of 3,053 units in the HUD assisted housing inventory--including 202, 202/811, 207X, 2221(d)(3), 221(d)(4), and 236 units.
The following are among the principal barriers to the development of affordable housing in Albuquerque:
Market preferences in Albuquerque, moreover, strongly favor single family units on large lots over higher density housing types. Townhouses make up only about 11% of home sales in Albuquerque, filling only a niche market. As a consequence, there has been little interest on the part of developers in construction of such higher density units.
The City of Albuquerque utilizes CDBG funds to support a fair housing unit within the City's Human Rights Office. This unit provides training and technical assistance to landlords, Realtors, lenders and other segments of the housing industry on fair housing obligations under local, state, and federal laws and organizations. The unit also assists individuals in filing claims related to housing discrimination. The unit also conducts a variety of public education activities related to fair housing. In addition, the City utilizes CDBG funds to support a hot-line service through which tenants and landlords may obtain information and referral regarding their rights and obligations under local, state, and federal fair housing laws and regulations. The City, finally, is currently initiating an analysis of impediments to fair housing.
Census data show a total of 116,000 housing units in Albuquerque with construction dates prior to 1980 and thus assumed to have a potential for lead-based paint hazard. Although there has been no comprehensive assessment of LBP hazard, available data do not suggest that such hazards are extensive in the Community. The City's housing rehabilitation program has found no traces of LBP in rehabilitation projects over the past three years. An assessment of PHA units found no traces of LBP in any public housing units. Of six single family units built before 1980 recently purchased by the PHA as part of a development project, a trace LBP was identified only in paint on an exterior gate A screening program administered by the Bernalillo County office of the NM Public Health Department has not identified any children with elevated blood-lead levels..
Although LBP hazard risk appears low in Albuquerque, the City complies with all HUD requirements concerning the notification, inspection, testing, and abatement procedures related to LBP in the CDBG and HOME assisted programs. All housing rehabilitation staff have received training in LBP regulations and procedures.
The City of Albuquerque has identified the following priority community development needs over the next three years:
The community vision for change is based on five inter-related principles to guide investment in economic development, human service, and community development programs. In this vision, such investments must: 1) provide for the maximum feasible empowerment of residents of the area in determining the character of service delivery; 2) strengthen the capacity of the residents individually and collectively to participate in decisions that shape the conditions of the community in which they live; 3) maximize the extent through which resources are made available to residents in a comprehensive, not a narrowly categorical fashion; 4) provide employment opportunities directly for residents of the area served by a project financed through public investments; and 5) be designed to operate on the smallest scale feasible given the nature of the service and available resources.
The City's anti-poverty strategy has two primary elements. The first is to further activities that assist low- income residents in overcoming barriers to employment. Elements of this strategy include support of improvements in educational services for low-income children, including provision of high quality preschool services; support of before and after-school activities at City middle and elementary schools that enhance learning; and support of programs designed to assure that low-income high school students remain and succeed in school.
The strategy also calls for a variety of efforts to assist adults in attaining and retaining employment. These include efforts to assure parents access to affordable high quality child care for both preschool and school age children; the provision of job training and job placement services; and improved access to affordable primary health care, dental care, mental health services, and substance abuse treatment.
The second element of the strategy involves efforts to expand economic opportunities for lower-income residents. Key aspects of this element include efforts to facilitate entrepreneurship among low-income residents and community groups; access to capital to facilitate business growth in lower-income neighborhoods; and efforts to link other City economic development activities such as Industrial Revenue Bonds to commitments to expand economic opportunity for low-income persons.
In addition to HUD entitlements, the Consolidated Plan identifies a range of other public resources committed to attaining plan objectives. These resources include City General Funds, City General Obligation Bonds, City CMO Bonds for housing, City Metropolitan Redevelopment Tax Increment funds, City UDAG loan repayment funds, EC Social Services Block Grant funds, and a variety of other state and federal grant funds.
Coordination between City government and other entities in a critical
element of the plan. An essential part of the plan is coordination between the
City and local nonprofit agencies and neighborhood-based organizations in
carrying out a wide range of activities identified in the plan. The plan also
calls for close coordination between the City and Albuquerque Public Schools,
the County of Bernalillo, and agencies of the State of New Mexico.
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.
TABLE (without associated map) provides information about the project(s).
Michael M. Passi
Associate Director
Albuquerque Department of Family and Community Services
Phone: (505) 768-2860
Fax (505) 768-3204
