HUD's Consolidated Plan regulations require local governments to identify and describe housing and community development needs and priorities and to establish a comprehensive 5-year strategy for addressing these needs using Federal and other resources. The Consolidated Plan replaces the previously required Comprehensive Housing Affordability Strategy (CHAS), combining six separate planning and application submissions into a single document. For the first year of the plan, the Borough of State College is requesting $800,000 in Community Development Block Grant (CDBG) funds. This money will be used to finance the 19 community development projects planned for the 1995-96 program year.
Participation of its residents in State College's Consolidated Plan began with the public hearings in 1993 during the process of developing the previously required CHAS plan for fiscal years 1994-98. The Consolidated Plan process built upon the prior year's CHAS hearings and plan, with an October 5, 1994, public hearing during a CDBG Citizens' Advisory Committee (CAC) meeting. Public comments from that session are included in the 5-year Consolidated Plan. Performance of programs included in the Consolidated Plan will be reviewed with State College residents during a summer 1995 CAC meeting.
Pennsylvania State University's main campus is the institutional and economic force most significant in shaping the Borough of State College. The State College campus is now the hub of a 19-branch statewide system. The University is the main employer in the State College metropolitan area, which coincides with Centre County. Labor market distribution for June 1993 shows that 35 percent of the workforce (20,900 workers) are employed in the government sector. The majority of government positions are for professional and related services in education, mostly at Penn State. In both the retail and service sectors, a high percentage of the jobs are filled by part-time employees, who are mostly students.
The total population of State College is 38,923. According to the 1990 census, 17,706 of the residents are Penn State students living off campus. The trend to off-campus living and its impact on the local housing market began in 1968 when the University stopped building dormitories on campus despite a rapidly rising enrollment. A high percentage of students want to live near the campus and the central business district. Consequently, the residential development of downtown State College in recent years has focused primarily on student housing at relatively high densities. The total population of the metropolitan area is 124,786.
The largest minority in the borough are the 2,815 Asian and Pacific Islanders, who outnumber the 1,302 blacks, 763 Hispanics, and 55 Native American minority residents. Based upon an analysis of this population, most are students at Penn State.
Median annual household income for the Borough of State College in 1990 was $34,300. CDBG housing assistance and community development improvements are intended for very low- and low-income households, those with incomes of zero to 80 percent of the area median.
A complication in defining the needs of State College households by income level is that a large percentage of the community's low-income residents are unmarried students living off campus and thus ineligible for Federal housing assistance.
The unique housing market characteristics of this college town contribute to a lack of housing opportunities for very low-, low-, and moderate-income households. In the 1980s the State College area's real estate market responded to increasing enrollment at Penn State with new highrise apartments and the conversion of older homes into apartments and rooming houses. Nonetheless, the last 25 years have seen a 25-percent drop in the number of families living in the borough.
The most prevalent housing problem in State College is affordability. Rental assistance (to lower the cost burden on low- to medium-income households) and help for first-time homebuyers are needed. The age and condition of some housing suggests a need for programs to rehabilitate both single-family housing for lower income homeowners and rental units to serve lower income renters. Modifications to rental units would also create more handicapped-accessible housing.
Rent costs in State College rank among the highest in Pennsylvania, as measured by HUD's proposed fair market rent schedules. In May 1993 the borough ranked second highest in the State for rents on efficiency units, third in rents on two- and three-bedroom units, and fourth for one- and four-bedroom units. Student demand for off-campus housing also drives up the price for other types of quarters.
In 1990 the average sale price for a unit of single-family or condominium residential property in the Centre region (State College and its environs) was $107,579. In the Borough of State College, condominium transactions made the average $101,521. The Centre region's average transaction was 59 percent higher than in the next highest region in the county, Penns Valley, where the average sale price was $67,712.
The large number of students living in the borough skews the very low-income population. Median family income (MFI) is $34,300. In State College 42 percent of the households are considered very low-income (with 0 to 50 percent of MFI) and 17 percent are other low-income (51 to 80 percent of MFI). Only 7 percent of the borough's households are considered moderate-income (81 to 95 percent of MFI), and 34 percent above moderate (95 percent or more of MFI).
With so many very low- and low-income households, there is no one area of low-income concentration. A low-income concentration is a tract in which more than 50 percent low-income residents are low-income. Areas of such concentration in State College are all areas dominated by student housing.
The greatest need is for affordable housing for both renters and homeowners. Of the borough's 8,322 renters, fully 68 percent have housing problems. For State College's 2,620 owners, 13 percent have housing problems. The problems can be physical defects of the housing, overcrowding, or a housing "cost burden."
A cost-burdened household is one that spends over 30 percent of its gross income on housing costs (including utilities); a severely cost-burdened household spends over 50 percent of its income for housing costs.
Of unrelated very low-income renter households, 94 percent are cost burdened and 80 percent severely cost burdened. The majority of such households are unmarried students, ineligible for housing assistance.
Among households of related low-income renters, 68 percent are cost burdened, living in unaffordable housing. About 30 percent are severely cost burdened, paying over 50 percent of their income for housing.
A total of 512 persons were served in Centre County's three emergency homeless shelters during the past fiscal year. Centre House is a 15-bed shelter for adults and families. Women's Resource Center has a capacity of 8 to 10 and serves victims of domestic violence. Stormbreak is a six-bed shelter for runaway and homeless youth. Though not a shelter, Interfaith Mission provides emergency assistance for one or two nights in a motel if shelters are full or when the person's behavior is inappropriate for a group shelter environment.
The major need for the homeless is access to affordable permanent housing. State College and its surrounding townships do not have enough affordable housing to meet the needs of their low-income families. Most affordable housing is outside the borough and the Centre region and far from employment opportunities. For homeless families, there is a need for appropriate accommodations with adequate privacy because of the extended time families spend in a shelter. For women victims of domestic violence, the greatest need is affordable day care--the cost burden of day care is so significant it keeps women on welfare. Another important need is for educational opportunities within the community to train women in occupations that will provide sufficient income to cover housing, food, and child day care expenses. Other service needs for homeless families include: access to affordable medical and dental care; counseling for substance abuse, addiction, and mental health concerns; and transportation assistance.
There is no public housing in State College. Elsewhere in the county, the Centre County Housing Authority operates a 20-unit public housing project, Beaver Farm, which opened 2 years ago and has a waiting list of 24 families.
There are two assisted housing projects located in State College. Bellaire Court is an 18-unit elderly project financed by bond issue. Addison Court is a 89-unit project for elderly and non-elderly persons with disabilities, which was constructed using a combination of Tax Credit financing, CDBG funds, and private dollars. Mount Nittany Residence, located just beyond its boundaries, is a 150-unit HUD 202/8 project. They have a total of 257 units; 240 are for elderly, and 17 are for non-elderly persons with disabilities.
The Section 8 rental assistance program operated by the Centre County Housing Authority administers a total of 302 Section 8 certificates and vouchers. Of these, 98 were for individuals or families with a State College mailing address. There were 464 households on the housing authority's Section 8 waiting list. Of these, 120 have State College mailing addresses.
The main barriers to affordable housing in State College are related to the growth of Pennsylvania State University and the housing demand created by students seeking off-campus living quarters. A large portion of the housing stock is occupied by students, and the potential for high profit margins remains attractive to real estate investors.
There are no neighborhoods identifiable as blighted or in decline that can be targeted to meet the need for affordable housing. The older housing stock is investment property absorbed by the low-income student population. The inflated rent structure of the borough limits the ability of many low-income households to utilize Section 8 certificates or vouchers in a central location accessible to public transportation, jobs, and services. Possibilities for new development are limited because only 22.5 acres of land remain for multifamily housing development, and much of this land is close to the university and thus even more expensive than other, less desirable sites in the borough.
Affordability is also the single greatest impediment to fair housing choice. State College does not have in place any court orders or HUD-imposed sanctions that affect assisted housing or fair housing remedies. In keeping with the borough's 1992 Fair Housing Analysis, State College is working to develop affordable housing. In conjunction with such development, the borough will develop an affirmative marketing plan.
Inspection-based data on the extent of lead-based paint (LBP) hazards in housing is not available. For estimation purposes, the borough is using HUD-supplied data that suggests that 90 percent of housing built before 1940 will contain LBP. For units built between 1940 and 1959, 80 percent will have lead, and for those constructed between 1960 and 1979, 62 percent. Matching housing age and estimated incidence of LBP produces an estimate of 3,420 low-income rental units and 183 low-income owner-occupied homes with potential lead paint hazards.
Since much of this housing is occupied by students without children and by older residents, and because the borough's housing stock is in generally good condition, the risk to small children is considered less than the incidence of LBP.
In addition to the problems facing many low-income households, the elderly may need special supportive living services: light housecleaning, transportation, and meal preparation or home-delivered meals. For frail elderly persons over age 75, the need for support services becomes more intensive: heavy housecleaning, bathing and dressing assistance, even home-health care and protective services.
Persons with mental health or mental retardation problems, those with physical disabilities, those with AIDS, individuals with alcohol or drug addictions, and families needing help in becoming self-sufficient all need a variety of support services.
Community development objectives in the strategic plan are not described in the Consolidated Plan. They are based instead on projects outlined in the State College Borough Capital Improvements Plan for 1995-99. The estimated cost of these projects would be $18,131,900 over the 5 years of the plan.
Major areas of work are to include:
The Borough of State College has placed a high priority on expanding and preserving affordable homeownership and rental housing opportunities for its lower income residents.
The borough will explore the possibility of assisting an interested developer in building new homes affordable to low- and moderate-income persons. Affordability would be achieved through the approval of reformed development standards contained in the Affordable Housing Option currently under consideration. State College is also working to help lower income homebuyers overcome the high cost barriers in the local housing market through a first-time homebuyer program developed in cooperation with two private mortgage lenders. This program will be implemented in early 1995 and seeks to assist 12 households within its first 2 years of operation. Finally, the borough will work to interest local employers in assisting their employees in purchasing homes, thereby fostering both stable neighborhoods and a stable workforce.
High market rents, driven by demand for off-campus student housing, have created an urgent need for affordable rental housing for low-income families. However, the community's ability to develop such housing has been limited by the absence of a local nonprofit that is designated as a Community Housing Development Organization (CHDO). The borough is currently working with Temporary Housing, Inc., to identify technical assistance to help the local nonprofit sector develop a CHDO that would then be eligible for priority consideration for State and Federal housing grants.
Special needs housing for the physically disabled is also a high priority. The borough's CDBG program budget includes funds for retrofitting eligible homes to make them accessible to persons with disabilities. To date, only one unit has been retrofitted. However, to expand participation in the program, the borough will cooperate with the North Central Center for Independent Living to develop a centralized clearinghouse for disabled persons seeking accessible housing. In addition, the borough is seeking funding to compile a computerized inventory of accessible housing in Centre County.
Nonhousing Community Development Priorities:
State College Borough's strategy begins with taking into account factors over which the borough has control. County and State government agencies such as the County Board of Assistance, Departments of Housing and Community Development, Human Services Planning, Probation Services, Transportation, and the Office of Aging, together with nonprofit groups, administer most of the programs which provide cash assistance and services to low-income households.
The borough's anti-poverty role is to provide CDBG grant funds to nonprofit organizations working in this field, as well as to implement programs that will help make housing costs more affordable for households with incomes below the poverty line.
Resources to carry out the 5-year plan include funds from the borough's general revenues, CDBG funding used to leverage other agencies' programs, State Department of Transportation moneys, and user fees for municipal services.
During 1995, the Borough of State College proposes to use its CDBG allocation of $800,000, together with funds allocated in past years, to fund 22 community development, public services, economic development, and planning activities.
State College intends to use 1995 funding to support a nonprofit in development of a hospice for persons with AIDS or other terminal illnesses. A first step would be to acquire a site, which the plan specifies must be within the borough. Alternatively, the plan calls for 20 units of supportive Section 811 housing for persons who are mentally ill or have a physical or developmental disability.
The borough will also allocate CDBG public service funding to five agencies that assist the homeless and at-risk populations. For example, these funds will be used to help provide overnight and weekend staffing of the Women's Resource Center shelter and staffing for the job and permanent housing search programs of Temporary Housing, Inc. Keystone Legal Services will receive $18,000 for costs of attorneys assigned to a self-advocacy project for shelter residents at Centre House and the Centre County Women's Resource Center.
Public facilities spending will include $405,000 for the Waupelani Drive street reconstruction project, which will encompass extensive drainage improvements, pavement upgrades, pedestrian ramps, and safety improvements. In addition, $85,000 is earmarked for park improvements to comply with Americans with Disabilities Act requirements, including accessible water fountains, paths, and restrooms.
For economic development, $50,000 is set aside as seed money for a downtown business incubator. Potential uses include covering costs of seminars or technical assistance, providing matching funds for acquisition of incubator space, or assisting a local development corporation.
The borough's CDBG funding plan designates $17,820 for various planning functions. These include neighborhood plans, transportation plans, and required environmental reviews for two projects involving construction work. Noteworthy among planning activities is $1,367 intended for the preparation of a model employer-assisted housing program, which will encourage area organizations and businesses to help their workers purchase homes. This is a possible approach to providing housing assistance in this difficult market.
The State College Office of Planning and Community Development will serve as lead agency for the CDBG projects and funding contributions included in the 1995 action plan.
Two (2) low-income families will benefit this year from participation in the First-Time Homebuyer program, which was implemented in January of 1995. Forty-four (44) households, below 60% of median, obtained affordable housing at Addison Court so far in 1995. (NOTE: the 44 at Addison Court is not the result of a 1995 action; however, they are the number who benefited from a new project this year.) Scheduled CDBG allocations for public and human services will directly benefit an estimated 663 individuals from lower income households.
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 projects within another of the four neighborhoods indicated in MAP 6.
MAP 9 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).
