Historically, Middletown developed at the crossroads of the Ontario and Western Railway and the Erie Railroad. Middletown is conveniently near the junction of Route 17 and Interstate 84, which connects Pennsylvania with the Hudson Valley and Central Connecticut. Route 17 is a regionally important limited-access highway linking the New York City area with Sullivan County resort areas in the lower Catskill Mountains, and with central and western New York State. A rail link to New York and the highway net help to make Middletown a desirable commuter community.
In its Consolidated Plan, Middletown describes its housing and community development needs and priorities, and its five-year strategy for addressing these needs. For the first year of the plan, Middletown is requesting $702,000 in Federal Community Development Block Grant (CDBG) funds. This money will be used to finance the six housing, community development, and service activities planned for Fiscal Year 1995-1996.
Unlike most of the county's other cities and towns, Middletown does not belong to either of the two Orange County consortiums that have been formed for CDBG and HOME purposes.
In November 1994, the Middletown Office of Economic and Community Development sent questionnaires to local private, nonprofit, and public sector groups that work in the housing and supportive services fields. On December 12, 1994, a public hearing was held to solicit public comments on the forthcoming Consolidated Plan. The hearing was advertised in the Middletown Times Herald Record newspaper.
After a draft plan was prepared, there was a 30-day public comment period from February 3 to March 6. A summary of the draft and a notice of a second public hearing were published in the local newspaper. On February 14, 1995, the second hearing was held to receive public comments on the draft Consolidated Plan.
According to the Census Bureau, Middletown's population grew by 13 percent, increasing from 21,454 in 1980 to 24,160 in 1990. During the same period, Orange County's population grew by 18 percent, making it the fastest growing county in the New York City metropolitan area, which also includes parts of New Jersey and Connecticut. As of 1990 Middletown accounted for 7.9 percent of the county's population. However, 20 percent of the beneficiaries of the Orange County Social Service Department lived in Middletown.
According to the 1990 census, Middletown's median family income (MFI) was $35,472, which was slightly lower than the national median income of $35,959. Of Middletown's residents, 49.2 percent had annual incomes of 80 percent or less of MFI.
Middletown's 24,160 residents can be subdivided into the following racial/ethnic shares:
In the summer of 1994, Middletown's Office of Economic and Community Development (OECD) completed an inventory of every property in the city. Two teams of field researchers walked along every street, viewed and photographed every building, and completed a data sheet on each property. Field workers noted the property's use (residential, commercial, mixed, vacant); construction; type; exterior condition; and the number of mail boxes, gas and electric meters, garages, and unlicensed cars on the property.
The field data was collected into a computerized database along with city department information on census tracts and block groups, tax assessments, and ownership. After a tabulation of the data, numerical values were assigned to each building in order to compare and rank the housing conditions within various tracts. A special researcher interviewed the tenants living on rental properties with serious exterior violations. Other researchers compiled daily lists of observed code violations (housing, zoning, environmental), and these lists were presented to the city Code Inspection Unit for follow-up.
The field teams also reported on the physical condition of streets, neighborhoods, and local facilities, such as playgrounds. They noted their impressions of each area, including the presence of adults and children, overall conditions, and comments from interviewed residents.
The OECD database will be used to generate maps, assess housing and economic development needs, and identify target areas for specific programs.
Based on the results of the study, Middletown has determined its housing needs, which include:
Of 8,162 properties tallied in Middletown's 1994 inventory, 6,242 are residential. Of these, 198 are mixed commercial-residential, while 328 are multifamily, and 9 are single-room occupancy (SRO) buildings. Furthermore, 74 percent of the residential properties are owner-occupied, and 31 percent are non-owner-occupied. (Note: the inventory was property-based, while the census was housing unit-based.)
The city's housing stock is aging, with 76 percent having been built before 1979. Of these, 43 percent was built in 1943 or earlier, and another 21 percent was built between 1944 and 1973.
The 1990 census identified only 0.1 percent of owner-occupied and 0.5 percent of rent-occupied housing units as "substandard." However, the 1994 OECD housing inventory's study of housing quality was more thorough. Researchers counted 987 housing, 1,058 environmental, and 137 zoning code violations. Furthermore, property conditions were rated on a scale of 1 ("good") to 4 ("poor"), with 1.6 percent of those falling into the "poor" classification.
Between 1980 and 1990, the number of housing units in Middletown increased by 14 percent, rising from 8,314 to 9,475. This housing growth has not continued into the 1990s. Housing continues to reflect recessionary economy, which causes stagnation in the residential market. Middletown's newer housing is primarily townhouses.
From 1989 to 1994, selling prices of houses fluctuated greatly. Employment opportunities in the Mid-Hudson Valley increased dramatically, as commuting to the metropolis to the south became easier. An improved economy and higher income prospects among middle-income households inflated real estate values, with selling prices exceeding market values. However, layoffs attributed to the closure of many IBM facilities and supporting businesses in Mid-Hudson counties soon created a housing market where supply exceeded the demand. As a result housing prices started to deflate in 1990.
In 1990 the median selling price for a house in Middletown was $140,318, compared to a 1980 median price of only $35,700. However, by 1994 the median selling price had dropped to $93,000.
In 1990 the difference between the cost of affordable housing and the median sales price of a home was $37,818. This does not consider down payments and personal debt levels, which can make affordability even more problematic.
Most renter households cannot afford to buy a median-priced home with a conventional 30-year fixed-rate mortgage. Although the 1990 median family income for Middletown was $35,472, a large disparity existed between homeowner and renter incomes. Median family income for homeowners was $40,223, while median income for renter households was $20,473.
A large proportion of lower-income households are cost-burdened, paying more than 30 percent of their gross income for housing costs, including utilities. Some are severely cost-burdened, paying more than 50 percent of their income for housing costs.
According to 1990 census figures, 2,822 households (31 percent) were cost-burdened. Among low-income households (earning less than 80 percent of median family income), 1,915 (72 percent) were cost-burdened and not living in affordable units.
In 1990, 25 percent of renter households and 8 percent of owner households were experiencing a severe cost burden.
According to the 1990 census, there were 103 homeless persons in Middletown. These figures include 40 persons from 9 families with children, 13 youths (age 17 or younger), and 50 adults (18 or older), who were not members of families. All were served by emergency shelters.
Subpopulations of homeless persons with special needs are as follows:
The Middletown Housing Authority (MHA) operates two public housing projects containing 200 apartments. One project was built in 1957, and the other was built in 1963. Although rehabilitation and remodeling are needed, 112 families appear on the waiting list for MHA housing.
There are seven other Federal- and State-assisted housing properties in Middletown, containing 501 units. The units are fully occupied, and the administering agency reports that 1,227 applicants appear on their waiting list, with the estimated wait being about 5 years.
Rural Opportunities, Inc., administers a countywide Section 8 rental assistance program with 1,291 certificates and vouchers in use. About 2,900 Orange County households appear on its waiting list.
One barrier low-income households face when searching for affordable decent housing is the large number of substandard housing units (homes or apartments with physical problems or code violations). Cost burdens also create a barrier for low-income households.
Although residential use of lead-based paints was banned in 1979, but actual use of those paints had already began to drop because easier-to-use substitutes became more available. HUD estimates that 90 percent of housing units built before 1940 will contain lead-based paints, while 80 percent of units built between 1940 and 1959 will have lead-based paints, and 62 percent of units built between 1960 and 1979 will have lead-based paints.
Middletown is an old community. About 90 percent of its housing units were built before 1979, and 64 percent were built before 1940. Furthermore, 53 percent of the housing stock built before 1979 is occupied by very low- and low-income residents.
The city's 1994 OECD housing inventory indicated that many housing units in low-income areas were in fair and poor condition. Because Middletown's older housing stock is in poor condition, much of the housing may pose a significant lead-hazard threat to families with children.
There are also housing and supportive needs for the elderly, the mentally disabled, the mentally ill, the physically disabled, substance abusers, and victims of domestic violence. Although the needs of each group are generally similar, such as affordable and accessible housing, each group requires somewhat different supportive services.
Nonhousing needs include revitalization of Middletown's downtown area. An Arts Space program, which is in its infancy, encourages artists to open studios in empty stores. One new art gallery has already won a national award for its interior design. Numerous specialty businesses and better restaurants are emerging in renovated buildings. The Thrall Library has moved into a larger, rehabilitated building that was formerly the Erie Railroad Station. Orange County Community College has increased the number of courses it offers at a location next to the library. Also, a new Orange County Government office building will be built in the area.
Middletown needs to increase crime prevention activities. Conditions are worst in two neighborhoods which have high poverty and unemployment rates, and which have a large number of low-income single-parent households. Youths loiter in the streets, and a large population of undocumented aliens from Central America have moved into the area. These neighborhoods have serious drug trafficking problems.
The city police force employs 58 officers, and according to New York State standards, it is understaffed by 10 officers. The Narcotics Unit has only one officer and needs to be expanded. The greatest need is for community policing which assigns officers to regular patrols in key neighborhoods.
Middletown's overall objective is to meet the pressing needs of lower-income residents by increasing the number of affordable, up-to-code housing units in targeted low-income neighborhoods.
Housing priorities include:
Economic development is the primary nonhousing priority. A key to the revitalization of low-income communities is supporting small businesses who are willing to locate in or near the city's lowest income neighborhoods. Many businesses have abandoned these areas in favor of malls on the outskirts of the city. Lower income city communities have limited access to stores which provide necessities, such as food, and they have limited access to the jobs these businesses provide. Perception of a neighborhood's quality is often related to its economic vitality.
Middletown's established goal is to reduce the number of families and individuals living below the poverty line. The solution will require the combined efforts of government agencies and nonprofit service providers. The city's resources include the OECD's Small Business Loan Program, which is expected to increase job opportunities for low-income residents. Education and skill training will be encouraged, with an emphasis on helping residents create a self-sufficient life style.
The financial resources needed to implement the 5-year plan include $702,000 in CDBG funds, which the city received this year. Middletown anticipates that similar levels of HUD community development and housing support will be available during the remaining 4 years of the 5-year plan. Other funding to help the city implement its strategic plan will come from a variety of Federal and State programs.
The Office of Economic and Community Development will be the city's lead agency for coordinating and implementing the Consolidated Plan. Middletown's government will continue to work with service providers. Members of the city government are involved with and serve on various service agency committees, enhancing coordination and fostering cooperation. The OECD Small Business Loan program will continue to provide small businesses with financial assistance to augment their bank financing.
For the 1995-1996 program year, Middletown plans to use $971,300 in CDBG and program income funds for six activities that address specific housing and economic development needs, including:
All activities will be conducted on a citywide basis, with the exception of the new business incubator, which is planned for census Tract 14.
Housing activities included in this year's Action Plan are expected to rehabilitate 46 housing units.
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 project(s) from a street level vantage point; in addition, a table provides information about the project(s).
