Luzerne County is the lead entity in a consortium consisting of the Cities of Hazleton, Nanticoke, Pittston and Wilkes-Barre. The primary objective of Cranston-Gonzalez National Affordable Housing Act of 1990 is the development of affordable, decent housing in safe and livable neighborhoods and to provide for the development of a single planning document to serve as a tool in addressing a County's housing needs, particularly for the benefit of its low-income families.
For the purposes of obtaining funding under HUD's HOME Investment Partnerships Program, the Luzerne County consortium was formed, and its consolidated plan includes strategies and funding for housing and non-housing programs funded through HUD's Community Development Block Grant and the Emergency Shelter Grant (ESG) Programs. The CDBG funding strategies are for its participating members.
The County's One-Year Action Plan is supported by $5,872,000 in CDBG funds, $1,561,600 in program income, $211,000 in ESG funds and $1,817,000 in HOME funds.
The County's new emphasis on citizen participation encourages those citizens that community development and housing programs are meant to assist to become involved in the process. The Consolidated Plan, with a single-time frame, allows citizens to understand the big picture in their community and to work with community leaders on activities that will benefit their own neighborhoods.
Specifically, the County provides for full public access to program
information and considers all citizens comments whether they are directly sent
to the County in writing or stated at formal or informal meetings. Upon written
requests, individuals and groups are provided with a copy of the Consolidated
Plan, annual grantee performance reports and other documents of citizen
interest. Notices of public meetings are published countywide in newspapers of
general circulation prior to the time of the scheduled meetings. The County
also provides technical assistance to groups and representatives of low-income
persons to help them in the development of their community development and
housing proposals.
Except for Hazleton City, each of the remaining three participating consortium cities submitted its own community profile. According to the 1990 Census data, the City of Nanticoke's population is 12,267 persons with only 1% of that number representing Black, Hispanic and Asian. Its median income is estimated at $21,967.
The City of Pittston's population is 9,323 persons, representing a 6% decrease from its 1980 population of 9,930. The age of Pittson's housing is one of the most significant factors affecting its housing stock, with 78.4% of its housing build prior to 1939 as compared to the State percentage of 44.8% Over the last ten years, the only major addition to Pittson's housing stock has been the construction of 120-unit elderly high-rise structure on North Main Street.
The City of Wilkes-Barre cites housing as its specific area of need. Within this City, there is a severe lack of homeownership opportunity for low-income residents, as well as a lack of decent rental housing, with many of the rental units failing to meet even basic housing codes. In Fiscal Year 1995, the City plans to assist 828 units through rental subsidies and the rehabilitation of both rental and homeowner properties. It will also increase homeownship opportunities by making 57 units available to low income families.
The County indices present the following overall picture of the consortium.
Ninety-eight percent of all persons residing in Luzerne County are white and
income levels per census tract vary considerably. The County's average per
capita income is $12,002, while the highest number of persons reporting income
below poverty levels occurred in the Cities of Wilkes-Barre and Hazleton.
The County's poorest families, including the elderly, pay a disproportionate percentage of limited income for housing costs, and with 20% or 64,705 of the County's population over the age of 65, this is a grave concern. The County's upsurge in the shortage of affordable housing is largely attributed to a sharp increase in the number of poor families and a substantial reduction in the number of low rent units. This reduction has resulted in rent increases. Between 1978 and 1985 alone, the number of County poor households rose 25%.
County rents are high relative to income. Traditionally, it is the cost burdened who live in substandard housing. The County states that there is a great need to provide assistance to these families. The average monthly cost of rent for a two bedroom apartment is $528 representing and housing costs 110.2% of the national average. Add to this, the 130.6% of the national average for utility costs and the problems of low income families are clear. There is a great need to provide housing assistance to these families.
Fifteen percent of County households are poor. Of that percentage, 46% occupy substandard units with conditions, such as holes in the floor, cracks in the walls, exposed wiring and peeling paint. A large majority of County low-income households living in substandard conditions also pay large proportions of their incomes for the inadequate housing they occupy.
Luzerne County has 135,984 year-round housing units and a vacancy rate of 3%. The County states that it needs an additional 2,638 units or a 39% increase to achieve a healthy housing market. Even though there is a need for additional housing at every level, new construction has focused on the high end of the market. Currently, the County experiences a severe shortage of housing at the lowest price range of $15,000 to $30,000 and at the moderate range of $50,000 to $80,000.
From 1989 through 1990, the County experienced an increase in the per-unit rehabilitation cost to correct housing code violations of owner occupied residential structures. That increase amounted to an $8,500 average per-unit cost, resulting in far fewer owner occupied housing being rehabilitated. The trend of increased rehabilitation costs is expected to continue.
An estimated 43% of County households have incomes under $20,000. Of these households, 33% have incomes less than $15,000. Despite the need for low income housing, County builders have not meet this need because there are no incentives for doing so; consequently, these builders continue to meet the market trends solely by producing upper-end housing.
The County reports that there are not enough properties to satisfy demand. Many buyers have incomes available to buy homes priced between $50,000 to $100,000, but are unable to find housing within this range. Consequently, such buyers often settle for housing at an even lower end of the price range. This compounds the overall housing problem because these buyers are purchasing properties that other buyers with more marginal incomes could afford. The high demand for County housing has resulted in driving up the prices both in the sales and rental markets and those on the margin suffer most. It is clear that many of the County's low and moderate-income wage earners are most in need of some form of financial assistance in purchasing a home.
County elderly renters are predominantly low income, with 73% having incomes below the poverty line. The elderly are required to wait an average of four months before public housing is available to them and an average of eleven months for assistance through the Section 8 Voucher/ Certificate Program. The County's large families are also in need of affordable housing. The lack of decent housing for these families started when landlords converted larger single homes into duplexes. The effects of this trend have been devastating for large families requiring 3 and 4 bedroom apartments or homes.
The vast majority of all households have some type of housing problem, but those problems are particularly severe for very low income households who experience a 30% to 50% cost burden. A cost burden is defined as a household paying in excess of 30% of its income on housing costs and a severe housing cost burden is defined as a household paying more than 50% of its income on housing costs.
The Luzerne County Housing Authority's preferences for rent assistance include families whose housing costs exceed 50% of their income; those living in inadequate housing; displaced families or otherwise homeless and families of military personnel. The only additional local preference is that of County residency. The total number of applicants on the Authority's Waiting list is 1,500 households. This is more than the total number of households presently receiving assistance through the Housing Authority, resulting in a lengthy wait of eight months to one year for public housing or Section 8 assistance.
As of November 1994, the Authority operated a total of 1,352 project based units with a vacancy status of 42 units, 12 of which were being modernized, 10 were awaiting lead based paint abatement and 20 were in the process of being rented. During that same period, the Authority managed 908 Section 8 vouchers and had a waiting period of approximately eighteen months.
The County estimates that 2,658 homeless persons will be assisted by various County programs over the next year. An estimated 2,346 will be sheltered whether through the emergency shelters or through temporary placements in motels, Children and Youth or Bridge host families. Luzerne's homeless categories have increased to include the mainstream person or family who, because of a traumatic or catastrophic event, now lack a place to call home.
The County has identified those factors that cause homelessness within its community as a severe shortage of affordable rental housing; long waiting list/period for assisted housing, and the lack of adequate financing for supportive services, such as mental health outreach workers. The County, also, cites the need to establish an Emergency Shelter Facility to accommodate all its homeless, particularly single parent and two parent families; the need to provide transitional housing and services, including case management, job training, and the need to increase permanent housing opportunities for those homeless who have successfully completed the transitional housing program.
Many factors contribute to Luzerne's high housing costs, such as tightened requirements for FHA financing and down payments; increases in the cost of points; high local taxes; settlement costs that are tied to ownership financing; local housing codes, and flood plain requirements. The County also acknowledges citizen resistance to certain types of affordable housing projects, such as low-income housing. The County points to the long delays, multiple levels of review and other State/Federal requirements that localities are subjected to in the construction of housing as major obstacles in the timely production of affordable housing.
The County has certified that it will affirmatively further fair housing and aggressively comply with Anti-Discrimination requirements.
Under its owner-occupied home rehabilitation grant programs, Luzerne County distributes the Notice on "Lead-Based Paint A Threat to Your Children" to every applicant, who is also provided with the name and address of the contact person to learn more about lead paint hazards. Under the County's rental housing program, all units are tested for lead-based paint. The County's Office of Community Development includes the required abatement procedures which are outlined in that Office's work write-up which are part of the contract documents. Additionally, the Lead-Based Paint Notice is sent to all tenants.
The community development needs of the consortium's participating cities are
basically focused on the same areas of public facility improvements to streets,
parks and recreational centers. The participants also expressed the need to
carry out activities that would expand economic development, particularly in
their Central Business Districts. For example, the City of Pittston plans to
undertake activities that address blight removal in its business district and to
increase downtown public parking.
The County's overall priority is to link its housing efforts to economic opportunity for its low-income County residents. Specifically, the County's priorities are to ensure that all its residents have access to decent shelter; to avoid homelessness; to increase the supply of decent/affordable housing and job opportunities for low-income persons, and to help make County neighborhoods safe and livable.
To meet its severe shortage of affordable housing, the County cites as its priority categories, the provision of affordable housing opportunities for first time low/moderate income home buyers and for low/moderate income renters; the expansion of necessary housing services for its special needs population, and its continued support of ongoing rehabilitation and home improvement programs. Specifically, housing opportunities will be expanded through County programs such as CDBG, Homestart and Family Self-Sufficiency HOME, Section 8 Existing and Public Housing Rehabilitation Programs.
In linking housing opportunities to its effort of promoting citizen self-sufficiency, Luzerne County establishes as a priority the establishment of programs that enable families to achieve economic independence. These programs connect public housing and housing assistance to supportive services such as child care, job training, substance abuse treatment and counseling and remedial education. Further, the County also cites as a high priority the improvement of neighborhood, park and recreational facilities, as well as improvements to streets and sewer systems. Other high priorities cited are expansion of public services for youth and the rehabilitation of commercial properties and industrial improvements as top priorities.
According to the 1990 Census, the County's per capita income was $12,002, which was 14.7% below the State's per capita income of $14,068. The median household income for the County is $23,600, which is 25.9% below the state's median household income of $29,069. Luzerne's efforts to combat its high poverty level include its continued coordination with the Commission on Economic Opportunity in undertaking activities geared toward helping the County's disadvantaged residents. The Commission focuses on research, planning, program development and direct services on overcoming and lessening adverse economic effects on the low-income County residents.
The County receives support from a wide variety of HUD programs, such as the HOME Investment Partnership, Lead-Based Paint Abatement grant, Section 8 certificates and vouchers, Public Housing Comprehensive Grants and Emergency Shelter Grants. The County, also, receives assistance under a number of State and local programs.
Through its Office of Community Development, the County works closely with
public and private agencies to address its housing and community development
needs. Implementation of the County's housing and public improvement strategy
requires the combined efforts of many different agencies, organizations,
individuals, businesses and municipal governing bodies.
The County outlines the proposed use of approximately $9,461,000 in CDBG, HOME, ESG and program income. The following are examples of the activities that will be undertaken with these funds.
$ 74,000 Acquisition of Outreach Center
$ 20,000 Purchase of Water Tanker Truck
$2,009,000 Street Improvements
$ 37,962 Flood Drain Improvements
$ 259,038 Sewer Improvements
$ 68,000 Housing Counseling
$ 30,000 Youth Counseling
$ 65,000 Employment Training
$ 725,000 Housing Rehabilitation Loans/Grants
$1,561,600 Economic Development Revolving Loans
Countywide
The County's Office of Community Development, the City of Pittston's Office of Community Development, City of Nanticoke's Department of Community Development, City of Hazleton's Office of Community Development and the City of Wilkes-Barre's Bureau of Community Development, Housing and Building Inspection.
Under this action plan, the County will expand its housing stock by an estimated 142 units through such activities as the provision of rehabilitation loans and grants to both low income homeowners and investors of rental properties, acquisition, rental assistance, Community Housing Development Organization write-downs of housing construction costs.
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; in addition, a table provides information about the project(s).
John J. Matusek, Director
Luzerne County Office of Community Development
54 West Union Street
Wilkes-Barre, PA 18711
Phone: (717) 824-7214
Fax: (717) 829-2910
