CITIZEN'S SUMMARY

The Municipality of Arecibo has experienced major changes in population and consequent changes in community development needs over the past ten years. Urban migration to the San Juan Metropolitan area as well as into the town of Arecibo itself from the surrounding rural areas has substantially affected the balance of housing and community development requirements. In addition, a climbing unemployment rate, particularly among the young, has altered the demographics of the districts within the Municipality. The population of Arecibo has increased substantially over the past several decades and from 1980 to 1990 increased over eight percent to 919,385 persons.

Action Plan

This summary contains a 1-year action plan for specific proposed projects that will use HUD funds from Community Planning and Development programs including CDBG, HOME, and ESG. These program funds will allow the community to expand the supply of housing for very low-, low-, and moderate-income persons. They will increase the availability of social services, community facilities, and provide economic development opportunities and improved environmental quality for low and moderate income communities within the Municipality.

Citizen's Participation

The Consolidated Plan for the Municipality of Arecibo incorporates most elements of the previously developed Comprehensive Housing Affordability Strategy (CHAS). The CHAS was the subject of many meetings and public hearings and thus a base for public opinion of the Consolidated Plan already existed. These meeting, which were held at least twice a year, will continue but under the auspices of the Consolidated Plan.

The divorce rate in Puerto Rico has climbed to almost 75% and this has resulted in a dramatic increase in single parent homes. The average age of the population has increased slightly but is still under 25 years. The breakdown of the family unit makes this particularly significant.

The number of persons living in rental accommodation has increased substantially over the last ten years. Drug use and related crime has led to a disintegration of some neighborhoods and a consequent deterioration of available affordable housing.

In the previous decade the number of persons receiving support from the Nutritional Assistance Program has increased from 48% to 55%. The unemployment rate within the municipality has risen from 17.2% in 1980 to 18.2% in 1992, however, the under 25 unemployment rate has risen to almost 65%.

These changes over the past decade point to a complete reorganization of the family structure, urban migration of the working age population and disintegration of the neighborhoods through the rapid increase in drug-related crime. In addition, the increasing unemployment linked to a declining local business environment has reduced what little income the Municipality received from its only real source, the Business Volume Tax (Patente), These trends must be reversed if Arecibo is to provide safe and healthy residential neighborhoods for its citizens.

HOUSING AND COMMUNITY
DEVELOPMENT STRATEGY

Housing and Community Development Objectives and Priorities

It is clear that these changes require new directions in planning for Arecibo if it is to approach the next century with confidence. The Municipality believes that this new commitment and purpose in the development of housing and community can be stated through the following objectives and priorities summarized as follows:

Objective

Facilitate the production and preservation of housing, encourage the development of opportunities in the business and commercial sectors and instill a sense of community amongst the citizens by efficiently using public funding and effectively encouraging private funding to:

• Create and maintain stable neighborhoods;
• Retain and expand the tax base (PATENTE);
• Promote economic opportunities through community empowerment; and,
• Retain and create job and business opportunities for the benefit of Municipality of Arecibo residents.

The goals of the Municipality that relate to this development Program are as follows-

Priority:

To assist in the creation and stabilization of viable neighborhoods,

To finance housing and community development opportunities which expand and retain the tax base.

To create job and business opportunities for Arecibo residents.

To promote opportunities for community and economic development through empowerment of Arecibo residents.

The specific housing and community development programs and proposals will be evaluated for consistency with these goals and mission, and related funding decisions and adjustments in program direction will be made accordingly. The Municipality's responsibility is to facilitate the availability of adequate, affordable housing and economic opportunities to meet the needs of current and future residents. Federal funding requires that activities be focused on assisting low and moderate income persons and thus this will continue to be the focus of housing and community development activities in the Municipality.

However, Arecibo is committed to encourage a range of housing and economic opportunities. In housing, particular priorities are the promotion of home ownership and adequate accommodation and the provision of housing for members of the community with special needs such as senior citizens and individuals with disabilities. In economic development, attention must be focused on retention of the town's employment base and expanding opportunities for Job and income creating business ventures. Sufficient well-paying jobs are essential to provide the income necessary to obtain and keep decent and affordable housing, providing the base for balanced and stable neighborhoods which strengthen the tax base and foster more viable communities. On an overall basis, the town's housing and community development programs must coordinate and target public and private resources in areas of opportunity to achieve maximum impact in stabilizing neighborhoods.

Priority Initiatives

Several priority initiatives are proposed as part of the Municipality's five year strategy to facilitate the development of economically healthy communities and sound neighborhoods with decent, safe, and affordable housing. These initiatives include:

• Homeownership Housing Initiatives
• Neighborhood Housing Preservation and Rental Housing Initiatives
• Community Development and Support Services Initiatives
• Homeless and Special Needs Population Housing Initiatives

A. Homeownership Housing Initiatives

The Municipality proposes a strategy to expand homeownership. Homeownership lends stability to the neighborhoods and encourages families to remain in integrated units. Over the past twenty years the number of owner occupied units has increased substantially. Much of this increase can be attributed to the success of Municipality-led efforts to assist renters in becoming owners.

The Municipality's various ownership efforts will focus on the following:

1. Targeting ownership assistance as part of neighborhood improvement and stabilization activities. This includes encouraging ownership opportunities for those who are relocated and also in encouraging ownership where the result will be a more stable neighborhood.
2. Improving the effectiveness of existing ownership programs by increasing private sector participation and leveraging public funds with private resources.
3. Exploring all existing programs, and creating new ones if necessary, to repair vacant existing housing whether just vacant, derelict through neglect or just unfinished.
4. Encouraging occupants of subsidized rental housing to become homeowners. Existing tenants of public or other assisted housing should move beyond public assistance as a way of life to self-sufficiency and homeownership.

FY 1996 RESOURCES FOR HOME PURCHASE

1. HOME PROGRAM:

Home Purchase Assistance Program $200,000

Community Housing Development Organizations $ 80,700

TOTAL $280,700

B. Neighborhood Housing Preservation and Rental Housing Initiatives

The Municipality proposes a strategy to preserve its housing stock in an overall effort to maintain its neighborhoods in a healthy and viable condition. This is particularly important in the case of rental housing where more rapid deterioration occurs.

The focus of the Municipality's neighborhood housing preservation efforts will be the following

1. Target neighborhood improvement efforts to achieve an overall visual impact on neighborhood conditions.
2. Emphasize rehabilitation programs for privately owned housing which maximizes use of public funds by leveraging private sources. Secondary market financing will be encouraged.
3. Encourage additional ownership housing in areas where rental units dominate. This will bring more stability and viability to the neighborhoods.
4. Expedite renovation of public housing, including the sale and renovation of vacant scattered site public housing units.
5. Continue the expansion of tenant assistance to low income households as financial resources allow through the federal section 8 existing housing program.

FY 1996 RESOURCES FOR NEIGHBORHOOD HOUSING PRESERVATION

1. CDBG PROGRAM:

Community Cooperative Development Program $200,000

La Puntilla Neighborhood Rehabilitation Program $500,000

2. HOME PROGRAM

Homeowner Rehabilitation $203,500

TOTAL $953,500

C. Community Development and Support Service Initiatives

The Municipality proposes a strategy to create job and business opportunities for area residents, as part of its effort to create and maintain healthy and viable neighborhoods. Creating better paying jobs, or creating jobs at all, has the benefit of providing a more secure neighborhood that is healthier and better able to maintain itself and better able to sustain better housing.

The Municipality's community development efforts will focus on:

1. Stimulating the creation of small businesses to serve the town residents and the surrounding areas.
2. Developing areas that are industrial sites presently derelict in order to stimulate new business growth. Puerto Rico Distillers is a good example of this initiative.
3. Targeting public assisted housing residents and other low income families, including the homeless, for job training and other economic self-sufficiency initiatives.

FY 1996 RESOURCES FOR COMMUNITY DEVELOPMENT AND SUPPORT SERVICE INITIATIVES (CDBG)

Town Center Development (Teatro Oliver) $475,000

Public Services Program 626,400

Total $1,101,400

D. Homeless and Special Needs Population Housing Initiatives

The Municipality proposes a strategy to address the needs of its dependent including the homeless and other special needs populations such as alcohol and drug abusers. These initiatives focus on the production of transitional and permanent housing specifically designed for these groups. The efforts will concentrate on the following:

1. Provision of transitional housing for persons with special needs such as substance abuse, HIV infections and other health problems.
2. Support to develop permanent housing for homeless and other special needs populations that will integrate them into stable and healthy neighborhoods.

FY 1996 RESOURCES FOR HOMELESS AND SPECIAL NEED POPULATION HOUSING INITIATIVES (ESG)

San Felipe Project $139,000

Hogar Vida y Esperanza Project $25,000

TOTAL $164,000

CITIZEN PARTICIPATION

The Consolidated Plan updates housing and community development needs and priorities and provides action plans for the use of federal funds in FY 1996. Initial public hearing were held on January 24 and 26,1995 and participation documented. These public hearing were general in nature but were used as a basis for the CHAS plan and the Consolidated Plan. The draft Consolidated Plan was prepared for a public hearing held on Wednesday, April 12, 1995 at 7:30 PM on the second floor of the Municipality of Arecibo. There was assistance available for any handicapped persons located on the first floor. It should be noted that the plan was prepared in English to meet the requirements of the federal government but persons were available in the public hearings to provide explanations in Spanish where required.

The public hearing held on April 12, 1995 were widely publicized locally and several people requested information. However, no-one appeared for the hearing itself, thus the results of the previous hearings, under CHAS, has been incorporated into this plan. The results of these previous hearing, the verbal presentation and those submitted in writing are on file in the Municipal Development Office.

BUDGET SUMMARIES FOR FY 1996

The following are the budgets for the federal entitlement programs contained in this Consolidated Plan.

CDBG Program

1. La Puntilla Development (Rehabilitation Program) $500,000
2. Community Cooperatives Development (Home Preservation) 250,000
3. Town Center Development (Community Development) 475,000
4. Public Service (Community Development) 626,400
5. Debt Service (Previous Projects) 1,621,688
6. Administration 702,912

Total $4,176,000

HOME Program

1. Homebuyer Program (Home Purchase) $ 200,000
2. Home Purchase (CHDO) $80,700
3. Home Owners Rehabilitation (Home Preservation) $ 203,500
4. Administration $ 53,800

Total $ 538,000

ESG Program

1. San Felipe Project $ 139,000
2. Hogar Vida y Esperanza Project $ 825,000

Total $ 164,000

The Municipal Administration of Arecibo anticipated the use of its funds taking a loan under Section 108 which is being use for the following activities :

1) Rehabilitation Paseo De Diego $ 4,000,000

2) Rehabilitation Recreational facilities $ 2,000,000

3) Reconstruction of Teatro Oliver $ 1,000,000

4) Acquisitions of Recreational Facilities $ 500,000

5) Reconstruction of Public Facilities $ 2,000,000

6) Properties Acquisitions $ 75,000

These activities are in accordance with the goals, objectives and strategies defined for the community.

Maps

MAP 2 depicts points of interest and low-moderate income areas.

MAP 3 depicts points of interest, low-moderate income areas, and unemployment levels.