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



CITIZEN'S SUMMARY

The municipality of Carolina, one of the 78 municipalities of the Commonwealth of Puerto Rico, is located in the northeastern coastal zone of the Island. A city near San Juan, Carolina is the Puerto Rico's fourth largest municipality. It is bordered to the north by the Atlantic Ocean and to the south by the municipalities of San Juan, Trujillo Alto, Loiza, Canovanas, and Juncos. The municipality covers 46 square miles and is divided into 13 wards, or barrios. Carolina is also home to the Commonwealth's main airport facility, the Luis Munoz Marin International Airport, which handles 8.2 million passengers and more than 400 million pounds of freight per year.

Action Plan

For Fiscal Year 1995-1996, the municipality requests a total of $5.7 million in Community Development Block Grant (CDBG) programs funds (to be supplemented with an additional $2.6 million in program income), $1.1 million in HOME Investment Partnership (HOME) program funds, and $217,000 in Emergency Shelter Grant (ESG) program funds (to be supplemented with an additional $217,000 in local funds). The total Federal funding requested is $7 million.

Citizen Participation

Two public hearings were held at city hall, one on February 21, 1995, and another on March 28, 1995. Public notice of the hearings were advertised in the El Vocero newspaper on January 23, 1995. Invitations to attend these hearings were issued to several organizations, including: the Westfal Management Corporation (which serves as the primary public housing private agent administrator in the Carolina jurisdiction), homeless center officials, members of the Carolina business community, and various recreation and community organizations, such as ARREVICA, Servicios de Viviendas Vecinales de Carolina, Inc., and Carolina Balom.

Copies of the draft Consolidated Plan were available in numerous public locations and distributed to lead community-based organizations. An announcement soliciting public revisions and comments was published in El Vocero on April 13, 1995. The final plan included many of the suggestions generated through this citizen participation process.

MAP 1 depicts points of interest in the jurisdiction.


COMMUNITY PROFILE

In 1990 the population of Carolina was 177,806, which corresponds to a population density of about 3,925 persons per square mile. The municipality has experienced steady population growth since 1950 and has change dramatically from a minor urban town to a major residential, industrial, and commercial area.

The Luis Munoz Marin International Airport and several large hotels, including the El San Juan and the Sand's Hotel and Casino, promote Carolina's tourism. Also, a public beach and other recreation opportunities attract tourists from across the island.

The airport, proximity to the Port of San Juan, and an adequate labor force establish Carolina as a main manufacturing center. The area is one of the major pharmaceutical and industrial activity centers in Puerto Rico. Carolina also has a large residential area, numerous commercial facilities, regional educational facilities, such as the University of Puerto Rico, and institutional facilities, such as the Carolina Regional Hospital.

The municipality's per capita income of $5,524 is 32 percent higher than the island per capita of $4,177. At the time of the 1990 census, 66 percent of the municipality's residents were low- and moderate-income. Six census tracts had high concentrations of low-income households, while approximately 42 percent of the population had incomes below the poverty level. The unemployment rate was 14.7 percent.

A total of 54,269 households reside in Carolina. Of these, 15,209 households (28 percent) are extremely low-income, earning 0-30 percent of the area's median family income (MFI). Another 9,877 households (18 percent) are very low-income, earning 31-50 percent of MFI. About 11,473 households (21 percent) are low-income, earning 51-80 percent of MFI, and only 3,886 households (7 percent) are middle-income, earning 81-95 percent of MFI.

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.



HOUSING AND COMMUNITY DEVELOPMENT NEEDS

Conditions

Although Carolina's population increased by 7 percent between 1980 and 1990, the urban center population declined by approximately 9 percent. During that same period, Carolina's overall housing inventory increased by 17 percent, but in the urban center, it declined by nearly 10 percent.

The urban center is characterized as a distressed area, with 63 percent of its residents living below the poverty level. Currently, only 46 percent of the residents in this area participate in the labor force, reflecting a 5-percent decrease from the previous decade. Furthermore, 22 percent of the urban center's population is over age 65.

Housing Needs

Carolina has an estimated housing assistance need of 29,149 households, representing 54 percent of all households. Overcrowding is prevalent among extremely low-income households. Overall, an estimated 708 households experience overcrowding. Also, an estimated 13 percent of all units occupied by needy households have physical defects and require rehabilitation.

Housing Market Conditions

In 1990 the housing inventory consisted of 61,903 units. The owner-occupied housing stock consisted of approximately 39,939 units, with 32,293 of these units having three or more bedrooms. About 3 percent of owner-occupied units need rehabilitation.

Among recent home construction, 75 percent of all units are priced at $90,000 or more, creating an oversupply of high-priced homes. Furthermore, the annual deficit for homes costing under $60,000 is 1,882 units.

Nearly 29 percent of the housing stock consists of rental units. The current median rental rate for an adequate unit is $222 per month. About 8 percent of rental units need rehabilitation. An estimated 12.6 percent of owner-occupied units are vacant, while 3 percent of all rental units are vacant.

Affordable Housing Needs

Among renters about 38 percent (5,790 households) experience cost burdens, paying more than 30 percent of their gross income for housing expenses, while almost 20 percent pay more than 50 percent. Among owners 24 percent (9,374 households) experience cost burdens, paying more than 30 percent for housing, while only 11 percent pay more than 50 percent.

Of small homeowner families (non-elderly), 11,819 households need housing assistance. Of renters 5,809 small families and 2,147 large families need housing assistance.

An estimated 35 percent of Carolina households require some form of public subsidy to maintain their homes. Additional assistance for renters, homeowners, and prospective owners is needed. Because most families prefer to become homeowners, the environment favors programs that help renter families to save money for downpayments.

Homeless Needs

Homelessness is a growing problem because of socio-economic problems and the needs of special populations, such as substance abusers, the elderly, and the mentally ill. An estimated 1,170 persons need homeless services.

To assist the homeless or those threatened with homelessness, Carolina has established a Center for Emergency Service to the Homeless. As of September 1994, the Center served 205 persons. In the near future, the center will expand its operations to a 24-hour basis and will provide transitional housing for persons in need. Additionally, the municipality is seeking to establish agreements with agencies who will identify and serve families threatened with homelessness.

Public and Assisted Housing Needs

The Commonwealth Department of Housing administers one of the three largest public housing assistance programs in the Commonwealth system. Carolina public housing is composed of 2,659 units and 15 communities. A total of 2,521 families (4.4 percent of all families in the municipality) are public housing residents. In general, pubic housing is in fair to good condition, with most communities requiring maintenance and a few requiring more extensive repair or rehabilitation.

A primary public housing goal is the creation of viable Resident Management Corporations that will empower public housing residents. The Commonwealth Department of Housing is currently soliciting bids for a new public housing administrator who will strive to empower public housing residents. Other measures to improve the quality of life for public housing residents include economic development programs, security service, and drug elimination programs.

Lead-Based Paint

Lead-based paint is a problem in five public housing communities in Carolina, affecting approximately 81 units (9.6 percent). The majority of these units are located in Catañito Gardens.

The municipality is coordinating with the Commonwealth Department of Health to obtain reliable and accurate data about affected units and to establish an action plan that will address the condition.

Other Issues

The high incidence of intravenous drug use in Puerto Rico has resulted in growing numbers of persons with HIV/AIDS. Currently, the office of AIDS surveillance has documented 838 cases of AIDS. The Municipal Department of the Section 8 Housing office reports that 68 families who have an HIV-infected family member appear on the waiting list for public housing.

The municipality identifies an increasing need for supportive housing for persons with HIV/AIDS as well as supportive housing for the elderly and persons with disabilities.

Community Development Needs

Carolina has been working to strengthen the economic, social, and urban environments as well as the general conditions throughout the municipality. Carolina closely collaborated with the community to prepare a socio-economic strategic plan, the Strategic Plan for the Economic and Urban Rearrangement of Carolina (Spanish acronym PEDERUC), and to finish a general plan known as the Land Use Plan (Plan Territorial).

The second volume of the Land Use Plan, the Action Program (Programa de Acción), proposes various actions and strategies to achieve the goals and objectives of the main plan. In addition, a Plan for Permanent Improvements formulates those strategies into specific projects.




HOUSING AND COMMUNITY DEVELOPMENT STRATEGY

Vision for Change

The focus of Carolina's Consolidated Plan lies in economic development, a well-trained and educated labor force, and jobs. Carolina's vision involves allocating public resources to benefit low- and moderate-income areas, revitalizing sectors that contain high concentrations of low-income persons, attracting new economic activity, and creating new training opportunities to build its labor force. The future of Carolina is also driven by the PEDERUC, which serves as the official public policy guiding all efforts promoted or sponsored by the city government.

Housing Priorities

Carolina has placed emphasis on seven housing projects to develop and preserve 360 units of affordable housing for low- and moderate-income households. Four projects are located in the urban center. The housing strategy supports preserving the urban center housing stock, reducing the number of substandard units, and increasing new housing development and homeownership opportunities. This policy is also expected to support the commercial and service potential of the downtown area.

The priorities include the construction and development of a demonstration community, known as the Barrazas Multipurpose Center, and the rehabilitation of the Diamantino Project, which will provide 103 and 34 condominium units for low- and moderate-income households respectively.

Priority needs for the homeless are the 24-hour operation of the Carolina Center for Emergency Services to the Homeless and the expansion of the center's services to include transitional housing and a homeless prevention program.

Nonhousing Community Development Priorities

The municipality's nonhousing community development priorities focus on economic development and public facility improvements. Funded projects include:

Antipoverty Strategy

Carolina is targeting its HOME resources to the needs of low- and very low-income families by providing homeownership opportunities. The municipality has proposed that new affordable housing units, consisting mostly of two- and three-bedroom units, be developed. First priority for these units will be given to families who receive Section 8 assistance. Second priority will be given to families who appear on the Section 8 waiting list. The intention of this strategy is to convert assisted renters into homeowners. Special outreach will focus on the following priority groups:

Housing and Community Development Resources

In addition to the Federal funding described in the Consolidated Plan, the municipality will commit program income and local funding to its housing and community development projects.

Coordination of Strategic Plan

In 1993 the municipality implemented an important administrative reorganization and strategic planning process, which was one of the results the PEDERUC development. Some of the key elements of the PEDERUC include: establishing the Municipal Department of Housing as a separate government unit and creation of a Housing Committee attached to such Department creating the Urban Management Area, which reorganizes all municipal planning functions; and creating a new Office of Community Affairs, which supports citizen participation and organization of Resident Associations.

The Department of Community Development is predominantly responsible for implementing and overseeing the Consolidated Plan, while closely coordinating with the Department of Housing, Urban Management Area, Department of Public Works, and other municipal agencies.

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) depicted in MAP 9.



ONE-YEAR ACTION PLAN

Description of Key Projects

During the first year of the Consolidated Plan, Carolina will use $5.7 million in CDBG funds (to be supplemented with an additional $2.6 million in program income), $1.2 million in HOME funds, and $217,000 in ESG funds.

There is an additional public investment programmed with non-Federal assistance. The majority are nonhousing projects such as improvements to city hall, police stations, pet control centers, recreational facilities, streets, and infrastructure. Nonhousing improvements focus mainly on the urban center.

Nearly 1.2 million in CDBG funds have been dedicated to meet the loan guarantees that support several housing and nonhousing urban center projects, including: rehabilitation of the old city hall, construction of parking and commercial facilities, and construction of two multi-use buildings. An additional $561,029 in loan guarantees will support several other urban center projects, including: the construction of the Carolina Small Business Mall, acquisition of lots to support an open space recreational plaza, and acquisition of 10 properties in San Ciprian Sector for the development of a new housing community.

Other CDBG-funded nonhousing projects include: construction of a bridge in the San Anton community ($500,000), public facility improvements (such as streets, parking areas, and recreational facilities) at the Barrio Colo Community ($900,000), and infrastructure improvements (such as street, sidewalk, gutter, and curb installations) at various low- and moderate-income residential locations ($3 million). The primary entity implementing these activities is the Department of Community Development.

The municipality's housing projects focus on homeownership opportunities for low-income families earning less than 50 percent of MFI. Key projects include: the Estancias del Gigante project, which will develop 103 housing units for owners ($862,500); direct homeownership assistance for 55 housing units in the Buenaventura Community development ($410,000); and acquisition and rehabilitation of 15 housing units, located within the urban center, through the Neighborhood Housing Services Housing Development Corporation ($172,500).

Key projects to assist the homeless include services to homeless families, homeless prevention services, and operating expenditures ($434,000). The primary entity for implementing homeless services is the Center of Comprehensive Services to Homeless Citizens.


To comment on Carolina's Consolidated Plan, please contact Mr. Jorge Allende, Area Coordinator, at 809-762-8686.
Return to Puerto Rico's Consolidated Plans.