The State of Oklahoma, located west of Arkansas and east of New Mexico, is the bridge between the southeastern and the southwestern United States. The ending of the 1980s oil boom is presenting the State with many challenges and opportunities.

Action Plan

In Fiscal Year 1995 the Oklahoma Department of Commerce (ODOC), the lead agency for the Consolidated Plan, will administer $9 million in the Home Investment Partnership (HOME) Program; $935,000 in the Emergency Shelter Grant (ESG) program; and $21 million in the Community Development Block Grant (CDBG) Program. The Oklahoma Housing Finance Agency (OHFA) will administer $678,000 for the Housing Opportunities for Persons with AIDS (HOPWA) Program.

Citizen Participation

The State scheduled two public input sessions in Oklahoma City and Tulsa, both held on December 6, 1994, and four public hearings in March and April of 1995. All of these hearings were publicized in the Oklahoma Beacon, in notices published by ODOC and OHFA, and in press releases issued to the local media. Citizens, public agencies, and other interested parties were given a 30-day period to comment on the Consolidated Plan. Any insight provided was considered during the preparation of the plan.

In 1990 the State population was 3,145,585 individuals, a 4 percent increase from 1980. The State has more than 1 million households whose average size is 2.53 persons. Of the total population, 25 percent are age 18 or younger, while 16 percent are age 62 or older.

Overall, about 85 percent of all households are white; 6.5 percent are African American; 6.5 percent are Native American, Eskimo, or Aleut; and less than 1 percent are Asian American or Pacific Islander. During the past decade, Oklahoma's 77 counties have experienced an average of a 4 percent increase in their minority populations, from 14% to 18%.

Oklahoma has 304,176 extremely low-income households, who earn 0-30 percent of the State median family income (MFI). Personal income levels are generally lowest in southeastern Oklahoma and in nonmetropolitan areas.

Conditions

The oil boom of the early 1980s spurred economic growth throughout Oklahoma. Businesses grew at a rapid rate, the homebuilding industry thrived considerably, families prospered, and the population soared. The economy fell with equal intensity in the mid-1980s whenever the oil boom ended. Businesses collapsed, foreclosures became the real estate norm, and many families that had migrated to Oklahoma left to seek job opportunities elsewhere. During the past few years, this economic upheaval has seriously affected the State and its residents.

Market Conditions

In 1990 Oklahoma had 1,406,499 housing units, a 12 percent increase from 1980. This increase can be largely attributed to migration into the State during the oil boom. Of the 1,206,135 occupied units, 68 percent were owner-occupied, and 32 percent were rental units. The 1990 median home value was $48,100, while the median contract rent was $259 per month.

Oklahoma's housing task force identified the poor quality of the housing stock as one of the State's most serious housing problems. The 1990 census reported that more than 12 percent of the housing units were built before 1940.

Affordable Housing Needs

Extremely low-income large (five or more persons) renter households experience more housing problems and have higher cost burdens than any other household category. Of this group, 78 percent are cost-burdened, paying more than 30 percent of their gross income for housing expenses, and 60 percent are severely cost-burdened, paying more than 50 percent. Comparatively, low-income renter households (those earning 51-80 percent of MFI) experience fewer housing problems, with only 70 percent reporting problems.

Moderate-income households (those earning 81-95 percent of MFI) experience fewer housing problems than the extremely low- and low-income households. Only 14 percent are cost-burdened, paying more than 30 percent of their income for housing, while only 2 percent are severely cost-burdened, paying more than 50 percent.

Homeless Needs

The 1990 census counted 2,222 homeless people who lived in emergency shelters and another 340 persons who lived on the streets. Additional information indicates that 113 people lived in shelters for victims of domestic violence; 586 lived in homes or halfway houses for substance abusers; 1,678 lived in housing facilities for individuals with mental illness, mental retardation, and physical disabilities; 12 lived in shelters for teenagers and expectant mothers; and 1,095 lived in other group homes. Adding these figures to the census numbers results in a homeless population of 6,046 persons. Of this total, 66 percent were white; 19 percent were African American; and 14 percent were Native American or Aleut.

Of the 4,585 homeless beds in Oklahoma, most are in emergency shelters. The primary service providers are the 21 Community Action Agencies (CAAs), which are the first point of contact for many individuals and families seeking emergency or social services. To reach those in need, CAAs have information and referral programs. In 1993 CAAs provided 166,377 people with information and helped them access emergency services.

In addition to the CAAs, Oklahoma has 38 general emergency shelters, which have the capacity to shelter 2,402 people. The average length of stay is 41 days. Nearly 90 percent of the facilities provide lodging, meals, counseling, and referrals; 56 percent offer rental, utility, and mortgage assistance; and 72 percent provide case management. An estimated 300 additional spaces are needed to adequately shelter all homeless people. However, the existing emergency housing would be adequate if a sufficient quantity of transitional housing was available.

Throughout the State, 29 transitional housing facilities provide housing for 464 people. The homeless task force for the Consolidated Plan and the Governor's Advisory Committee on the Homeless determined that insufficient transitional housing is a fundamental problem. Additional transitional housing facilities, especially for various homeless subpopulations, is considered to be the State's highest priority.

Public and Assisted Housing Needs

The State has fewer than 14,000 public housing units. However, the State does not anticipate losing any of these units to demolition, conversion to homeownership, prepayment, or voluntary termination of a federally assisted mortgage.

OHFA administers more than 7,000 Section 8 assistance units throughout the State. Of this total, 1,934 units were obtained by vouchers; 4,800 were obtained by certificates; 50 were obtained through homeless vouchers; and 1,100 were obtained through moderate rehabilitation. The State does not anticipate losing any of these units.

Fair Housing

Although the Oklahoma Human Rights Commission is the designated State agency for enforcement of fair housing regulations, ODOC and OHFA advocate fair housing for all residents, especially low- and moderate-income persons.

ODOC will complete an initial analysis of impediments to fair housing by February 6, 1996. During the next year, ODOC and the Oklahoma Association of Community Action Agencies will cosponsor a grant application for the U.S. Department of Housing and Urban Development (HUD) Fair Housing Initiatives Program. If approved, grant funds will be directed to the following areas:

• Informing disabled persons, support organizations, service providers, housing providers, and the general public about the rights of disabled persons as explained in the Fair Housing Act.
• Providing information on the location or availability of accessible housing or on the modification of nonaccessible housing.
• Helping housing providers to comply with Housing Act obligations to provide reasonable accommodations for persons with disabilities.
• Developing fair housing and affirmative marketing instructional material for an education program designed for housing industry groups.
• Developing national, regional, or local campaigns regarding fair housing.
• Developing materials and providing technical assistance to support compliance with housing adaptability and accessibility guidelines as contained in the 1988 Fair Housing Amendments Act.

Lead-Based Paint

Oklahoma's lead-based paint problem is serious. An estimated 937,629 homes were built before 1979, and 72 percent of them contain lead-based paint. This housing is scattered throughout the State and is occupied by both renters and homeowners. To create an effective system of hazard reduction and abatement services, State agencies need to better coordinate their activities. Anticipated actions include:

• Complying with Federal lead-based paint requirements for those who receive funds from the Community Development Block Grant (CDBG) program and the HOME program.
• Certifying workers and contractors who perform abatement and hazard reduction procedures.
• Exploring the creation of a permanent, low-interest, revolving loan program that would serve residents who do not qualify for grants and cannot afford the cost of lead-based paint abatement or hazard reduction.

Other Issues

Persons with special needs -- including the elderly, frail elderly, the disabled, substance abusers, and persons with HIV/AIDS -- need appropriate housing. Current programs that address housing issues for these populations are at capacity and have substantial waiting lists, threatening a significant number of individuals with homelessness.

Oklahoma's Department of Mental Health and Substance Abuse Services (DMHSAS) contracts 12 community mental health centers or private contractors to provide about 192 transitional housing beds. However, participation in these programs is for limited time periods, and discharged clients must obtain whatever permanent housing they can afford. DMHSAS also contracts 29 residential care homes to provide 1,200 residents with room, board, and socialization services.

In the last fiscal year, DMHSAS identified 1,515 homeless persons who were admitted to the three State hospitals and 21 community mental health centers. Meeting the housing needs of this population would reduce costs at both State and Federal levels, reducing dependence on State hospitals and community mental health centers.

Seven facilities for persons with chronic mental illness provide shelter space to 103 individuals. Although all shelters offer some degree of case management, the predominant service needs are better case management and more intensive support services. About 3,000 spaces are needed to sufficiently house homeless persons with chronic mental illness.

The Oklahoma State Department of Health has determined that there are 1,577 persons with HIV and 910 persons with AIDS. The National Commission on AIDS estimates that between one-third and one-half of all persons with AIDS are either homeless or threatened with homelessness because of their illness, insufficient income, or insufficient support networks. Three facilities provide space to 32 individuals with HIV/AIDS, and an estimated 480 additional spaces are needed to sufficiently serve those persons who need housing immediately.

Another 12 facilities serve 475 chemically dependent persons. Existing facilities have waiting lists and need an estimated 6,000 additional spaces.

Community Development Needs

Oklahoma's community development problems include insufficient infrastructure facilities and insufficient economic development financing to create and maintain jobs for low- and moderate-income persons. Without long-term investment in infrastructure facilities and the stimulation of economic opportunities, the State cannot meet the basic needs of its citizens.

To assess these needs, the State surveyed 1,183 local jurisdictions and received responses from 57 percent of them. Survey respondents reported that county roads and city streets were the worst aspect of the State's transportation system. At the time of the survey, Oklahoma ranked second in the Nation for having the highest number of structurally deficient bridges.

Survey participants also indicated that storm sewer systems were inadequate in nearly 70 percent of the communities. The projected cost to upgrade those systems exceeded $1.1 billion. The water distribution system suffered from widespread deficiencies. More than 30 percent of the rural municipal water systems reported that their water supplies were vulnerable to agricultural and petroleum contamination, while 42 percent of the municipally operated solid waste systems projected that their disposal capacity would be exhausted within the next 5 years. The creation of new disposal facilities was cited as one of the most difficult problems facing Oklahoma towns and cities.

Another of the State's economic development deficiencies is insufficient financing for small businesses and microbusinesses. Small rural businesses often seek additional capital from inexperienced local lenders or outside markets that charge higher interest rates. In response, the State should actively offer alternative financing mechanisms that enable local communities to assist small businesses and microbusinesses.

Housing Priorities

Oklahoma's housing priorities include:

• Maintaining and improving the quality of housing. The State's 5-year goal is to rehabilitate 795 single-family housing units. Some of the strategies include: gathering and analyzing data on the quality of the housing stock, enacting and enforcing more effective building codes, reemphasizing quality in manufactured housing, and exploring energy-efficiency improvements.
• Expanding the capacity of local governments and housing organizations to develop, manage, and maintain affordable housing. Some of the strategies include: providing these organizations with training and technical assistance to develop the skills needed to initiate housing projects; notifying local governments, community groups, and housing developers about the availability of funds; and working with the Community Housing Development Organization (CHDO) to develop projects in both nonparticipating jurisdictions and CHDO-eligible jurisdictions.
• Linking housing and supportive services. Some of the strategies include: developing a demonstration project to examine the needs and benefits of support services in a multifamily housing community; providing housing counseling and consumer education that will teach low-income persons to create a budget, manage credit, and care for a household; and allowing the housing task force to manage and coordinate the Consolidated Plan, examine problems, and develop solutions for delivering housing and supportive services.
• Improving rental housing opportunities. Some of the strategies include: allocating HOME and State funds for rental housing to CHDOs, providing technical assistance for rental projects, offering an alternative for tenant assistance, and encouraging HUD to reserve a portion of new certificates and vouchers for housing authorities in rural and nonentitled areas.
• Minimizing regulatory barriers to affordable housing. Some of the strategies include: improving the regulation of land development, helping developers to meet environmental regulations, improving administration of prevailing wage requirements, and examining local property tax policies.

Non-Housing Community Development Priorities

Local decisionmakers are responsible for initiating community development projects within their communities. However, most small communities do not have the capacity to initiate or implement well-defined plans for community development. To help focus on the most pressing community development needs, the State should actively provide the technical assistance needed to assess community infrastructure, build capacity, and develop strategic plans.

The Oklahoma Department of Commerce will further develop its statewide Capital Improvement Plan (CIP) database, which was initiated in 1993. The goals of the CIP include: assisting in the diversification of the State's economy; increasing employment; maximizing the use of Federal, State, and local funds; enhancing capital investment in the economy; and improving economic opportunities.

The State will provide economic development funding for infrastructure improvements and also will provide funding for a program that facilitates economic development through assistance to microbusinesses and through microlending. This program will provide local governments with letters of credit to establish local revolving loan funds.

Anti-Poverty Strategy

Oklahoma is committed to allocating resources that will increase self-sufficiency for its citizens. The State Department of Human Services and the Department of Commerce are primarily responsible for administering programs that promote self-sufficiency. A number of CAAs provide statewide services while helping people to secure and maintain meaningful employment, training, and work experience. They also help people obtain adequate education, capitalize on available income, obtain and maintain adequate housing, and obtain emergency assistance through loans or grants.

Housing and Community Development Resources

In addition to Federal sources, Oklahoma can access a number of State, local, and private funds. The State's major focus is to provide affordable housing opportunities to low- and moderate-income residents. Some of the programs designed to accomplish this goal include: mortgage revenue bonds, which finance single-family and multifamily housing with funds generated from the sale of tax-exempt bonds; mortgage credit certificates, which offer Federal tax incentives to promote homeownership; and low-income housing tax credits, which offer investment incentives to owners and developers who produce low-income rental housing.

Throughout Oklahoma more than 400 social service agencies provide: housing services, food, clothing, transportation, education, job training, child care, alcohol and drug treatment, health care, and emergency shelter. Furthermore, nearly every church offers local programs that assist with housing or address other family needs.

Coordination of Strategic Plan

Affordable programs for the State are administered primarily by ODOC, which operates the HOME program, and OHFA, which coordinates the Section 8 Rental Assistance Program. Many other public and private agencies play pivotal roles in the State's housing programs.

The State's homeless issues are addressed primarily by the Governor's Advisory Committee on the Homeless and the Oklahoma Homeless Network. Although these groups do not have regulatory powers, they advise State agencies and nonprofit organizations that administer individual programs. OHFA employs the State Homeless Coordinator and administers the HOPWA program.

Description of Key Projects

ODOC is the State agency that administers the HOME program. ODOC will distribute HOME funds to eligible entities in accordance with the approved Consolidated Plan, using competitive funding set-asides and formula allocations.

ODOC will allocate $132,000 to the city of Norman. These funds will enable Norman to become a participating jurisdiction. ODOC will set aside $908,500 (10 percent) of its total HOME allocation for program administration. The State also will set aside $454,250 to cover CHDO operating expenses associated with CHDO-funded activities.

A maximum of $400,000 in funds will be available exclusively for homebuyer assistance through ODOC-designated recipients. ODOC will allocate $1.5 million to 20 CAAs for weatherization activities.

More than $3.1 million in HOME funds will be allocated to the CHDO set-aside, and $2.1 million will be distributed as established in the Fiscal Year 1994-1995 2-year pilot program.

ODOC is requesting proposals for use of $935,025 in ESG program funds. During 1995 the ESG program will offer maximum grants of $35,000 per application. Applicants proposing transitional housing activities are eligible to apply for an additional $15,000.

Ms. Denise Heath
Mr. Vaughn Clark, Coordinator
State of Oklahoma Consolidated Plan
Oklahoma Department of Commerce
(405) 841-9370