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



Consolidated Plan Contact

CITIZEN'S SUMMARY

The Municipality of Caguas lies in a valley 22 miles southeast of San Juan, encircled by ranges of mountains responsible for its alluring verdure. It is known as the city of the "Criollos". Its original meaning is the name by which the earliest residents of the region were known. Is not until 1775 that the community becomes officially the Town of Caguas in honor of the Taino chieftain, Caguax.

The community needs continue to evolve and that is why the Municipality of Caguas' 1995 Consolidated Plan constitutes a strategic vision for housing and community development. The following is a summary of that plan:

Action Plan

The Consolidated Plan includes an Action Plan for the use of the 1996 funds under three (3) different HUD formula grants, for a total of $6,118,000, including $5,136,000 under the Community Development Block Grant Program (CDBG); $198,000 under the Emergency Shelter Grant Program, and $784,000 under the HOME Program. The Action Plan also includes the proposed use of program income generated by CDBG activities from previous years, totalling $335,569.

Citizen Participation

The elements of the Plan were developed with active citizen participation, including individual consultation with some twenty (20) different agencies and nonprofit organizations; and two (2) public hearings, the first of which took place in December 1, 1994, to gather input on needs from citizens, nonprofits and other organizations. The Consolidated Plan was published for public review in El Vocero, a general circulation newspaper on April 13, 1995. A Citizen's Summary in Spanish was made available to interested persons, by the municipal administration.



COMMUNITY PROFILE

The Municipality of Caguas is located at the Central-East Region of the island, about twenty- five(25) miles south of the city of San Juan. Because of its location, closeness to San Juan, and good transportation network, Caguas has grown into an industrial, commercial, services and manufacturing center.

During the last thirty (30) years Caguas doubled its population to 133,447 inhabitants in 1990; which is projected to increase at a 10.05% rate by the year 2000.

According to the 1990 Census data, 52 % of the Caguas population fell below proverty level. Of the 40,104 total households in the Municipality 82.5% had annual incomes under $25,000 (58.1% under $12,500); which is below the HUD -adjusted Median Family Income for Caguas of $26,900.



HOUSING AND COMMUNITY
DEVELOPMENT NEEDS

Conditions

Caguas is ranked fifth in the order of fast growing metropolitan areasamong the mayor cities of PR. This growth is being challenged by a 15.1 % unemployment rate for 1994 and a slow developing infrastructure. Over 30 percent of employment is in the service area. In housing, of a total of 2,867 housing units, only 52 percent were suitable for rehabilitation.

Housing Needs

In the Municipality of Caguas, there is a high proportion of our low, very low and moderate income households that have not satisfied their housing needs because they either live in overcrowding conditions, in substandards units or have a very heavy cost burden.

Cost burden above 30% of income affects 9,670 (5,407 owners and 4,263 renters) very low, low and moderate income households.

There are 292 active AIDS cases reported in the jurisdiction. There is an urgent need to expedite housing application in different housing assistance programs.

Among the most needy groups that have been identified are elderly renters and owners in the very low income groups..

The Municipalality of Caguas estimates that a total of 2,309 families are in need of housing of which 701 are already in the waiting list.

Housing Market Conditions

A steady climb in population presents a low to moderate-income housing demand that varies from a modest 11.9 percent to as high as 16.3 percent for units in the range of $44,264-$59,799. The market for new housing is responding to the medium and high income families which have moved from the San Juan Metropolitan area.

Affordable Housing Needs

The demand for affordable housing is defined by the percentage of units, 41.7% or 2,704 units, which fall within the price range of $44,264 or less and well within the definition of affordable housing. This housing demand contrasts with the approximately 20,000 very low, low and moderate income households in Caguas (37 percent renters and 63% homeowners) that have housing problems ranging from overcrowded conditions, substandard units to very heavy cost burdens.

Homeless Needs

The estimated of homeless persons in Caguas is between 664 to 1,242.

The main factors that contribute to homelessness are the inability of the government to satisfy low income population housing needs; drug and alcohol abuse, and mental illness; abuse and neglect of children and adolescents; domestic violence; adolescent pregnancy and; a high prevalence of HIV/AIDS. Low income and unemployment are common factors to almost all subgroups.

There is a high mobility of homeless persons towards the Municipality of Caguas, since the municipality is a center for main governmental health and social services in the region.

The most urgent needs for this group is the development of an information system, strengthening of coordination of services and emergency shelter for women and family fleeing from domestic violence, dropouts and runaway children and adolescents and, for unsheltered adults (mainly males), job training and placement housing and transitional supporting services, and permanent housing for the rehabilitated homeless. We need to satisfy immediate needs of the homeless population and maximize the development of the homeless potential for independent life.

Public and Assisted Housing Needs

Among the most needy groups are the elderly households, first time home buyers, small families who tend to double-up with relatives, and AIDS-affected persons, of which there are some 292 active cases recorded.

Barriers to Affordable Housing

The actual housing regulations do influence the final costs of affordable housing. For example, as the requirements now stand, these divide into four groups the units with a price ranging from $42,000 to $52,175. These are basic units with 788 square feet of living space, segregated into 250 square meters lots. In Caguas, the housing demand in the sixty plus range can be as high as 58 percent. Thus, this puts a damper on affordable housing development projects, unless attractive incentive packages can be offered to investors and developers. Although, the demand for housing is mostly concentrated within the affordable housing price range, 81 percent of new construction is fixed on a housing market with prices which exceed the $76,000 tab. Other barriers that affect supply of affordable housing are:

  1. high cost of land to developers

  2. high cost of construction materials

  3. infrastructure limitations (especially water and sewer facilities)

  4. very limited tax incentives

  5. slow permit process

  6. uncertainty among developers as to implementation of Municipal Autonomy Law of (Law No. 81, 1991, as amended) with regard to property, franchise and construction taxes, and

  7. internal migration of higher income households to Caguas which attracts attention of developers to meet the housing needs of this market.

One of the main barriers that affect demand for affordable housing is the negative credit history of most of the low and very low income householders that apply for assistance, which disqualifies them for assuming a mortgage loan.

Fair-Housing

The City proposes to comply with the Municipality's Fair Housing Ordinance and Affirmative Marketing procedures and analyze impediments or obstacles to fair housing.

Lead-Based Paint

The Plan includes actions to detect and reduce lead-based paint hazards and prevent childhood lead poisoning. It is estimated that around 23,900 or 74% of caguas housing stock contains lead-based paint.

Other Issues

There is an increase on drug dependency, school desertion, teenagers' suicides, and high crime incidence in the Municipality, with the consequent increase in the need for assisted housing, safety, health, and economic aid programs.

Community Development Needs

There is a need for a wide variety of neighborhood facilities such as day care centers for children and the elderlies, and human services aimed at improving the quality of life of low/moderate income residents; recreational facilities, infrastructure redevelopment, economic development, and Central Business District revitalization.

Coordination

The Municipality of Caguas established communication and informal coordination with public agencies, (municipal and central government), other municipalities, private agencies (nonprofit and for profit) for the development of the consolidated Plan. These entities were consulted mainly in relation to services being provided, socio-economic and demographic data and gaps in the provision of services. The main agencies that were consulted were the Department of Health, the Puerto Rico Planning Board, the Department of Social Services, Administration of Mental Health and Addiction Services; Homeless Coalition, MJ Consulting, private agency that administers public housing units in Caguas. Coordination work with other agencies and citizens organizations took place mainly by telephone, written and personal communication, and participation in public hearing.

This communication efforts led to the provision of services to the homeless through two nonprofit institutions, Hogar Los Peregrinos and Casa San Gerardo, Inc; participation of the Municipality of Caguas in the study of the homeless population that will be conducted by the Homeless Coalition; proposed development of a CHDO by Fundación Socio Educativa de Caguas, enhancement of the state health services to adolescents and other public service activities to be performed by the Department of Citizen Affairs.



HOUSING AND COMMUNITY
DEVELOPMENT STRATEGY

Vision for Change

Promote the quality of life, particularly for very low income and low income persons, by assisting the communities in the development of suitable living environments, by providing safe and livable neighborhoods, revitalizing deteriorated areas, preserving properties of special historic architectural or aesthetic value, and strengthening partnerships among all levels of government and the private sector to provide decent housing.

Housing and Community Development Objectives and Priorities

Discussed in housing priorities and non-housing communities development priorities.

Housing Priorities

Among the goals proposed are the following: increase the housing supply for low/moderate income first-time homebuyers; attract the rental homeowners to the HOME Program; rehabilitate owner-occupied housing units; and assist families in obtaining homeownership titles.

Housing goals related to homeless persons will address: technical assistance to a certified CHDO in the development of rental housing for the elderlies and homeless; economic and technical assistance to other nonprofits for their certification as CHDO's; and assistance to homeless providers for housing, essential services, and training programs.

Non-Housing Community Development Priorities

1. Economic Development and Infrastructure

Water and street improvements and parking facilities are proposed, which are basic for economic development. Also proposed is the offer of technical skills/training for the unemployed under the JTPA Program; financial assistance for technical and vocational schools; and the development of microenterprises in low-income communities.

2. Revitalization of the Central Business District

The CBD revitalization is proposed through the development of community-based relationships among the private/public institutions at the CBD - civic, religious, educational - to promote economic development and marketing, minimize deterioration, carry out the restoration and rehabilitation of historical structures, and promote cultural activities. In addition, the City is scheduling a 24-hour police force in the area to prevent crime.

Anti-Poverty Strategy

Among the priorities of the Municipality of Caguas is to develop goals and programs to reduce the number of households with income below the poverty level. For this reason the administration intends to continue supporting existing programs which are suitable in affordable housing such as: grants and loans for rehabilitation of housing, development of land for segregation of lots and the financing for the construction of housing for very low and low income families as well as the distribution of title deeds. Also it is pursuing assistance for homeless, prevention of suicide in adolescent, counseling and therapy for families in crisis, shelter for unwed adolescent mothers and for patient with HIV/AIDS.

Housing and Community Development Resources

The resources available to the Municipality of Caguas for addressing housing and community development needs come from federal, state and local sources. Housing needs are mainly satisfied through the Section 8 Program; CDBG funds (which provide for minimal rehabilitation, community revitalization, land acquisition and infrastructure); HOME funds (for the development of CHDO, assistance to first time homebuyers, homeowners rehabilitation of units in the Central Business District (CBD)). State funds provide for the administration and maintenance of public housing in Caguas.

Homeless needs are addressed through Emergency Shelter Grant (E.S.G.) funds and CDBG funds; Community development needs are addressed by means of CDBG funds, Job Training Partnership Act, Health and Human Services; local funds and state funds, (such as government loan, Public Law #2 and other funds obtained through Resolution (RC)) and other local funds from investments and miscellaneous revenues.

Coordination of Strategic Plan

The Municipality of Caguas is responsible for the Consolidated Plan Activities, but various private and public entities are involved in the administration and implementation of plan components.

The Municipal Department of Housing is mainly responsible for Housing Programs: HOME and Minimal Rehabilitation (CDBG). This Department partners with private entities in the implementation of HOME program.

Community Development Programs area mainly the responsibility of several municipal departments, Housing, Sports and Recreation, Culture, Citizens, Affairs, Police and Economic Development.

The Homeless Coalition (nonprofit entity) will receive CDBG funds for a study of the homeless population.

The State Department of Health will expand its services to adolescents with CDBG funds.

Hogar Los Peregrinos and Casa San Gerardo Inc. (nonprofit entities) will provide services to the homeless in Caguas with ESG funds.

The Municipal government has noted gaps in the coordination process and has included as Consolidated Plan Strategies the coordination with public agencies for development of infrastructure, the coordination with other agencies for developing mechanisms to increase stability for low and moderate income families; and the establishment of formal coordination mechanisms among institutions that serve the homeless population to strengthen the continuum of care strategy. Monitoring standards and procedures have been developed to improve performance and proper management of federal funds according to 24 CFR 570, Circular OMB-A-110, OMB A-128, 24 CFR 85.42, OMB A-187, OMB-122.



ONE-YEAR ACTION PLAN

Description of Key Projects

The Action Plan lays out the proposed uses of the $6.4 m from the 1995 allocations for the three (3) formula grants CDBG, ESG, and HOME - and from "program income" generated from previously funded CDBG activities. Some 46 activities are listed in the Plan.

Locations

Almost 44 percent of the key projects included in our listing of proposed projects is planned to assist housing. Most of these funds address the need to gap the housing demand for affordable housing, especially for fist-time homebuyers. Three very low-income areas located around the Central Business District were allocated funds for housing rehabilitation and preservation.

Lead Agencies

Throughout the preparation of the Consolidated Plan the works were divided in different phases with the lead agencies as follows: the Planning and Community Development Office was in charge of citizen participation, planning and urban project design; the Municipal Department of Public Works led the project development phase; the Municipal Housing Agency was in charge of the area of housing; and the Department of Economic Development coordinated the area of employment and economic development.

Housing Goals

Funds have been allocated from the HOME program to provide grants for moderate rehabilitation. This will be a direct homeowner-ship assistance. Emergency shelter funds are also being directed for facility repairs to add structural soundness and safety to two homeless shelters. CDBG funds will go into acquisition of vacant property for land development into segregated lots in order to increase housing choices for low to moderate income house totals. First time homebuyers will have the opportunity to qualify as such by providing loan and grants to 50 low and very low income households.

Project IDProject Title
1Park, Recreational Facilities - Vistas del Turabo
2Park & Recreational Facilities - La Granja
3Park & Recreational Facilities - Villa del Rey (IV Sec.)
4Park and Recreational Facilities - Villa Blanca
5Park & Recreational Facilities - Borinquen Pradera
6Park & Recreational Facilities - Villas de Castro
7Removal of Architectural Barriers
8Non-Residential Historic Preservation - Ruíz Belvis St.
9Sidewalks - Villa Esperanza
10 Program Administration
11 Street Improvement - Georgetti St. with Padial St.
12Street Improvement - Campio Alonso st with Muñoz Grillo St.
13Acquisition of Real Property - Bunker & Brooklyn community
14Acquisition of Georgetti St.
15 Acquisition of Real Property - Padial St.
16 Acquisition of Real Property - Campio Alonso St.
17Public Services
18 Loan Guarantee for Economic Development
20 Park & Recreational Facilities - Pta. Community
21Brooklyn Community Revitalization
22Batista Community Revitalization
23Santo Domningo Community Revitalization
24Machin Community Revitalization
25Program Administration
26Street Improvement - Borinquen ward
27Street Improvement - Cañabon ward
28Street Improvement - Bairoa ward
29Street Improvement - Beatriz ward
30Street Improvement - Cañaboncito ward
31Street Improvement - San Antonio ward
32Street Improvement - San Salvador ward
33Street Improvement - Turabo ward
34Street Improvement - Tomas de Castro (I & II) ward
35Community Housing Development Organization (CHDO)
36 Rehabilitation of Single Families Residential - mínima
37First - Time Homebuyer - Grant for Extremely Low Income House
38First - Time Homebuyer - Grant
39Homeowners Rehabilitation
40 Planning
41 Essential Services for the Homeless - Casa San Gerardo & Hogar Los Peregrinos
42Operational Expenses - Casa San Gerardo & Hogar Los Peregrinos
43Rehabilitation of Shelter Facilities
44Administration of ESG Program
45Planning & Capacity Building
46Street Improvement - Santo Domingo Communities

Maps

MAP 1 depicts points of interest in the jurisdiction.

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

MAP 3 depicts unemployment levels.

TABLE (without associated map) provides information about the project(s).


To comment on Gadsden's Consolidated Plan, please contact:

Eng. Ricardo Echevarria
Director
Office of Planning and Community Development
(809) 744-9290


Return to Puerto Rico's Consolidated Plans.