U.S. Department of Housing and Urban Development
Office of Community Planning and Development

CITIZEN'S SUMMARY

The City of Niagara Falls is located in western New York State, and is a gateway between Canada and the United States. It continues to rely heavily on tourism as a significant source of employment, although in the past its prosperity grew out of heavy industries, particularly chemical manufacturing, which located in the area to take advantage of plentiful hydroelectric power. While these industries continue to play a key role in the City's economy, there has been a significant loss of jobs in this sector, as operations have been either closed or downsized. In many instances the facilities that are left behind have posed a significant burden on the community, in that site clearance is expensive, as is remediation of environmental hazards that may be hidden underground: Love Canal is the most well-known case in point.

Action Plan

The Niagara Falls Consolidated Plan addresses housing and community development needs in the City utilizing $3,586,000 in Community Development Block Grant (CDBG), $129,000 in Emergency Shelter Grant (ESG), and $661,000 in HOME Investment Partnership Program funds in 1995. The funds will primarily be used for housing, public facilities, and economic development projects.

Citizen Participation

The City's Department of Community Development was the lead agency for seeking public input into the Plan. A coordinating committee, which included representatives from area neighborhood groups, the Niagara Falls Housing Authority, and Niagara Falls Area Chamber of Commerce, was set up to evaluate information generated by a series of public meetings and focus groups. The public meetings were held to discuss broad areas of community development needs and recommend priorities. Citizens attending the public meetings were encouraged to enroll in one or more focus groups that met to further refine the definition of needs and setting of priorities. As an outgrowth of the meetings, a draft Consolidated Plan was prepared for review by the coordinating committee, and then presented at two public hearings, before presentation to and approval by the Niagara Falls City Council.

COMMUNITY PROFILE

As of the 1990 Census, the City's total population was 61,840; minority population was 11,070 (17.9 percent), primarily African American (15.4 percent), Native American (1.6 percent) and Hispanic (1.2 percent). Niagara Falls is a central city in the Buffalo-Niagara Falls Metropolitan Statistical Area (MSA). Median family income for the MSA was $36,567 in 1990; the median income within the City of Niagara Falls was $28,775. Slightly more than 48 percent of the City's population belonged to low income families (0-80 percent of median) in 1990, and 41 of the City's 95 Census Block Groups have concentrations of low income residents in excess of 51 percent. The overall level of poverty is 18.6 percent; the City has 21 Census Tracts, and 47 percent of the poverty persons are living in five Census tracts where the concentration of poverty is 25 percent or more. (See "Low Income Concentrations" and "Minority Concentrations maps.)

A large portion of the City's land has been developed for heavy industrial use, and a significant portion has been abandoned. The City also has a fairly high vacancy rate for residential units: 9.3 percent of the City's 28,635 units were vacant as of the last Census, and 6 percent of the housing stock is considered to be dilapidated, requiring clearance. Average household size is decreasing, while the elderly portion of the population is increasing: the number of elderly persons increased by over 12 percent between 1980 and 1990, and the elderly now represent 19.2 percent of the total population.

Fifty-six percent of the housing units are owner-occupied. Extremely low-income households (0-30 percent of area median) represent 19.2 percent of total households, and more than three-quarters are renters; very low-income households (31-50 percent of median) are another 15.8 percent of all households, and over half of them are renters; and low-income households (51-80 percent of median) are an additional 19.1 percent of total households, and 44 percent are renters. Minority households, particularly African American and Native American, have a disproportionate share of the very low-income category: half of the households in these minority groups are very low income, as compared to only 35 percent of the population as a whole.

HOUSING AND COMMUNITY DEVELOPMENT NEEDS

Conditions

Migration trends between 1970 and 1990 are such that virtually every age group lost population, but the loss has been greatest among those between the ages of 15 and 24: young people are leaving the City in search of employment or simply never returning after completion of their higher education or military service. The migration patterns suggests that many of the out-migrants are not part of independent households since a loss of 1,312 households has taken place in the last 10 years alone. On the other hand, reduction of household size contributes to an imbalance between unit size and household size that makes it difficult to fill existing units. In the early 1980's, the City experienced unemployment rates as high as 19.5 percent. Currently employment levels have again risen from a low in 1989 of 5.8 percent, and now stand at 11.3 percent in the first quarter of 1995. (See "Unemployment Concentrations" map.)

Housing Needs

Niagara Falls is a built-up city with a relatively old housing stock. Fifty-one percent of its housing units were built before 1940. It was estimated in 1989 that nearly 56 percent of all structures were substandard; 4 percent of all residential structures were estimated to be totally deficient and in need of demolition. Total dilapidation was more prevalent in renter-occupied than owner occupied housing.

Market Conditions

As Niagara Falls' household size and absolute size of the City's population continues to decline, the high housing unit vacancy rate continues to be a problem, creating a buyers market for housing, keeping rents low, and discouraging housing rehabilitation and other forms of investment. As household size continues to drop, the match between dwelling unit size and household size will worsen. The median room size of housing units today is 5.1. As one and two-person households become more common, units with five or more rooms are becoming less and less attractive, with higher quality, energy efficient, small units, and handicapped units at a premium. Converting to smaller units will solve individual problems, but by adding housing units vacancy rates will remain high. Lack of sufficient units in the right size ranges could favor suburban migration and further aggravate the City's housing problems.

Affordable Housing Needs According to 1990 Census figures, in the extremely low-income group, three-quarters of the households are renters. Both owners and renters in this income group experienced housing problems at a similar rate: 83 percent experienced problems, and 82 percent have a cost burden in excess of 30 percent of their income. Among very low-income households, 55 percent are renters, of whom 72 percent experienced housing problems and 70 percent have a cost burden. Among very low-income homeowners, only 43 percent experienced housing problems, and almost all of these have a housing cost burden. Among low income households, 44 percent are renters, of whom 26 percent experience housing problems and 24 percent have a cost burden. Low-income homeowners have similar levels of need: 20 percent have housing problems, and 19 percent have housing cost burdens.

Although there is a high rental vacancy rate, there is not a sufficient stock of rental housing in standard condition or suitable for rehabilitation. Without rehabilitation subsidies, a developer is less likely to invest in substandard units. Elderly one and two member households and small related families represent the renter households with the greatest incidence of housing problems, especially very low income families. An imbalance between the number of one and two bedroom units and low household size exists, along with low levels of available assistance. Members of this group would benefit from additional rental subsidies, rehabilitation, and, for low income renters, first-time homebuyer purchase subsidies. Extremely low and very low income homeowners, most of whom are elderly or small family households, would benefit most from housing rehabilitation programs that would stabilize housing conditions and home operating costs.

Homeless Needs

Given the City's location on the border with Canada, the homeless population experiences temporary swelling on occasion due to the influx of refugees awaiting entry into Canada. When such is not the case, the homeless population tends to be relatively small at any one point in time (approximately 200 persons), consisting primarily of single adults (96 percent); the balance consists of families (generally victims of domestic violence) and runaway youth. It appears that emergency shelter facilities have usually been sufficient to take care of all needs, although there is a growing need for facilities for runaway youth and for victims of domestic violence, and to rehabilitate existing emergency shelters. There are 240 beds available for emergency shelter, 28 percent for single males, 38 percent for single women or women with children, 13 percent for homeless families, and 13 percent for chemically dependent and/or veterans populations. Four agencies offer transitional housing, some of which are geared to specific special needs populations.

Public and Assisted Housing Needs

There are 846 units of public housing operated by the Niagara Falls Housing Authority, and 550 units of privately owned assisted housing. The City's Section 8 Certificate/Voucher program assists 694 households, and Niagara County's program assists another 349. The PHA's inventory is in the third year of a five year modernization program, and is in reasonably good condition. None of the assisted housing inventory is expected to be lost in the near future.

Availability of assistance is very tight, with few vacancies or unused certificates. The PHA has 254 persons on its waiting list, 80 percent of whom quality for a Federal preference on the basis that they are either paying more than 50 percent of their income for housing costs, are living in substandard housing, or have been involuntarily displaced/homeless. The Section 8 program has 933 persons on its waiting list, with just over half (54 percent) qualifying for a Federal preference.

Area providers of supportive housing include community residences for chemically dependent and emotionally handicapped clients. The operators of these facilities indicate that they are operating at or near full capacity.

Barriers to Affordable Housing

The only public policy barrier identified was the difference between the homestead and non-homestead tax rates, which can have the effect of discouraging reinvestment in affordable rental properties. Recognizing this, the City has made some adjustment to the rates, to reduce the difference. Also, the City has implemented a program whereby a localneighborhood development corporation becomes a "manager of last resort", acquiring and rehabilitating properties and for rental to low/moderate income families. The non-profit is able to reinvest in these properties using a combination of Federal and State funds, where a private developer would be unable or unwilling to commit to such an investment.

Fair Housing

The City utilizes CDBG funding to support the activities of the local fair housing group, Niagara Falls Community Housing Resource Board. One of the tasks in the coming year will be to conduct a comprehensive analysis of impediments to fair housing choice within the community. There are no current court orders, consent decrees, or HUD-imposed sanctions that affect the provision of fair housing remedies.

Lead-Based Paint

Of the 28,635 housing units in the City, 25,306 were constructed prior to 1980. Therefore, 88 percent of the total housing stock has potential lead based paint hazards. Thirty-seven active cases of lead-based paint poisoning within the City were reported to the County Health Department. All except two of the cases occurred in Census Tracts with concentrations of low income persons.

Community Development Needs

The City of Niagara Falls, like most older Northeastern cities, is experiencing the problems associated with a deteriorating infrastructure. Harsh winters in the Northeast providing a damaging freeze/thaw cycle heavily influences the condition and maintenance of infrastructure. Deteriorating sidewalks, streets, sewer and water lines are commonplace and will require coordinated efforts of Federal, State and local government to address. The City's present park and recreation system appears adequate to meet its needs for the foreseeable future, and the emphasis will be on maintaining the condition of the parks and playgrounds and by adding and replacing facilities as appropriate to meet the needs of the residents in the immediate area.

The need for child care centers generated the most discussion among resident groups, given that single parent households and two parent working households are increasing. To a lesser degree, the need for youth centers and senior centers were discussed in conjunction with the need for increased activities for both groups. Public service needs include employment training, crime awareness (and prevention), youth services and child care services.

Regarding economic development needs, as noted in the introduction, the manufacturing sector of the City, while still significant, has condensed. Initially, skilled manufacturing workers migrated out of the area; during the recession of the early 1980's, younger, better-educated workers also left the area in large numbers. Since then, the largest employment growth has been in the retail and service sectors, which tend not to provide good-paying jobs except for those with significant education and training beyond high school. The City intends to capitalize on this growth by concentrating its efforts on small businesses, tourism, and tourism-related commercial activities.

HOUSING AND COMMUNITY DEVELOPMENT STRATEGY

Vision for Change

The main focus of the program is to preserve and expand, where possible, the supply of affordable housing; to improve the economic vitality of the community by assisting those sectors most likely to generate jobs; to provide supportive facilities and services for workers; and to upgrade facilities and improvements as needed to arrest the decline of commercial and residential neighborhoods.

Housing Priorities

In the area of affordable housing, rental assistance and rehabilitation are identified as high priority activities for all very low income renters. For lower income renters, rehabilitation and homebuyer assistance are the priority, and very low and lower income homeowners are to be offered rehabilitation assistance on a targeted neighborhood basis.

For alleviation of homelessness, the priority is to rehabilitate existing facilities to ensure their continued availability and modest expansion. For non-homeless persons with special needs, linkages with support services and supportive housing is the main priority.

Non-Housing Community Development Priorities

The primary concern is to encourage economic growth where possible, particularly for small businesses, in the areas of tourism and tourism-based commercial enterprises. Complementing support services would be provided as needed, including child care, youth recreation, and employment training. Residents of public housing would be provided with opportunities to begin their own businesses in a commercial "incubator" atmosphere. Infrastructure and public facilities would be upgraded as resources become available, combining local, State, and Federal resources.

Anti-Poverty Strategy

The City recognizes the importance of supporting existing programs, including the Section 8 Family Self Sufficiency Program, and the expansion of homeownership, noting that homeownership is often an impetus to efforts to find better-paying employment. One case in point is the City's experience with their own urban homesteading program, through which tax foreclosed properties are sold to new homebuyers: close to 100 percent of past program participants (who were all very low income) had experienced an increase in income since participating in the program.

Housing and Community Development Resources

The primary resources are the CDBG, HOME, ESG, Section 8, and Public Housing programs, supplemented by New York State programs (Affordable Housing Corporation, Housing Trust Fund, Neighborhood Preservation Corporations, and Department of Social Services), private matching funds (for housing and economic development activities), and municipal government contributions.

Coordination of Strategic Plan

The City's Community Development Department will be the lead agency, responsible for program monitoring and reporting, in cooperation with the City's Public Housing Authority; the New York State Economic Development Zone administrator; Center City Neighborhood Development Corporation; and Niagara Falls Neighborhood Housing Services.

ONE-YEAR ACTION PLAN

Description of Key Projects

$1,145,000 in CDBG and program income resources will be used for residential rehabilitation

$661,000 in HOME funding will be supplemented by $100,000 in Affordable Housing Corporation funds to finance first-time homebuyer opportunities, including an urban homesteading program that recycles tax-foreclosed properties, and the construction of 10 new affordable units on a former school site

$530,000 in CDBG and program income will finance economic development loan and technical assistance programs, including the administration of the New York State Economic Development Zone, and loans for public housing residents starting up businesses in the Public Housing Authority's Family Investment Center.

$342,000 in CDBG funds will upgrade neighborhood multi-purpose and child care facilities

$129,000 in ESG funds will rehabilitate three emergency shelters

Locations

The housing rehabilitation programs are generally limited to designated target areas within the City, generally older or transitional neighborhoods. Other program activities tend to be concentrated in the oldest portion of the City (south central) and in those with the highest concentration of assisted housing (northern area, often referred to as Highland Avenue neighborhood). Please refer to the "Project Locations" maps.

Maps

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, and proposed HUD funded projects; in addition, a table provides information about the project(s).

To comment on Niagara Falls' Consolidated Plan, please contact:
Robert Antonucci
(716) 278-8000

Return to New York's Consolidated Plans.