Its 1995 Consolidated Plan describes the strategies that would be carried out to establish and maintain a suitable living environment, and expand economic opportunities for every citizen, particularly for very-low and low income persons.
The Consolidated Plan also includes an action plan constituting an application for funds under two different HUD formula programs for a total of 2.2 million: Community Development Block program (CDBG) and the Emergency Shelter Grant program (ESG). These funds will support the activities to be funded for the 1995 program year.
A Task force established by the Municipality's Federal Program Office (FPO)
staff developed the strategies with participation from state and local
agencies, private nonprofit organizations, community leaders, and concerned
citizens. Hearings for the two major programs were conducted simultaneously
and a summary of the Consolidated Plan was published for public review on
January 5, 1995. Copies of the Plan were available for public review at
various locations. A public hearing on the plan was held on January 10, 1995.
The City of Cayey is located in the central-eastern part of the island, approximately 20 miles south of San Juan, Capital of Puerto Rico. It is bounded as follows: north by the city of Cidra, northeast by the City of Caguas, south by the cities of Guayama and Salinas and west by the City of Aibonito. It is part of the Consolidated Metropolitan Statistical Area of Caguas. The 1990 population estimates amounted to 46,553 inhabitants. This reflects a net increase of 5,454 persons since 1980. It has a population density of 895 persons per square mile and is divided in 22 wards.
The 1990 Census estimated 13,742 households in the City of which 9,266 (67.4%) of these were owners and 4,476 (32.6%) were renters. Based on 1990 Census data, only 12,494 ( 26.8) percent of the City's population resided in the rural or non-metropolitan area, although the rural area represents 95% of the territorial extension of the municipality.
Median family income in 1990 was estimated at $9,491 and income per capita
$3,456. Also 1990 Census figures showed that 60.5 percent of the population or
28,155 persons, were under poverty income guidelines.
Historically, Cayey's main economic activity was agriculture (tobacco and sugar), but this has changed dramatically to a manufacturing and services economy. Thirty-three percent of all persons employed in Cayey work in the manufacturing sector and 26 percent in the services industry. The construction of better roads and highways made possible a rapid transformation into these areas. Still unemployment rates exceed the 20 percent mark.
Due to the incidence of low-income families that are cost burdened or severely cost burdened, there is a great need for rental assistance, especially for large related households.
According to 1990 Census data 6,291 (46%) of all Cayey households are extremely low income, earning between 0 and 30 percent of the median income. Of the 6,291 over 2,202 (35%) are paying more than the 30 percent HUD standard for affordable housing, and 1,510 (24%), are paying more than half toward housing. However, most of the extremely low income households with cost burdens of 30 percent or more are renter households.
If we compare the 1994 HUD Fair Market Rents, (FMRs), with the estimated family income necessary to afford these rents without a rental subsidy we find that it is virtually impossible for some low income families to access decent, safe and sanitary housing units. The FMRs for 2-BR and 3-BR units including utilities is $390.00 and $488.00 respectively. To be affordable, at 30% of income toward rent, households income should be $14,000 for the 2-BR unit and $16,320 for the 3-BR unit. If we compare these figures with the HUD adjusted Median Family Income we conclude that very-low income families are out of the private rental market in Cayey.
There is an increasing need for funds to enable homeowners to improve and/or rehabilitate their homes, by providing for more rooms to alleviate overcrowding, and to improve plumbing facilities.
In 1990 the housing stock for the City of Cayey consisted of 15,385 units of which 13,742 were occupied and 1,643 were vacant. Of the occupied units 9,266 were owner occupied and 4,476 was renter occupied.
Of the total vacant units only 284 units were available either for rent (197 units) or sale (87). This circumstance is responsible for the very low vacancy rate for renters; 4.22 percent and .93 percent for owners. From 1980 to 1990 the estimated housing stock for the City is as Follows:
| 1980 | 1990 | ||
|---|---|---|---|
| Total Housing Units | 11,991 | 15,385 | |
| Vacant Units | 1,284 | 1,643 |
An impediment to the construction of affordable housing relates to the inability of developers to obtain adequate financing for this development. The lack of suitable Rural Economic Community Development financing formerly FmHA and the nonexistence of other financial market in the rural areas, serve as an obstacle to the development of housing in the City rural areas.
Compared with current income the cost of housing is high. The lack of developed land, the high costs of construction and the lack of adequate financing are the main causes.
There is a need for developing small units for renter households, and larger units for homebuyers. The need for moderately priced housing for renter families who want to become homeowners is substantial. For the elderly and frail elderly who reside in large units there is a need to develop housing in multifamily complexes with the appropriate services.
On March 20, 1990, the Census Bureau for the first time conducted a special count of persons in pre- identified emergency shelters and open locations in the streets or other places not intended for habitation, (S-Night Count). Although we expected to have more accurate data on this population, this has not been the case. The Census count listed 5 homeless persons as visible in the streets and none in emergency shelters. However, this information is incorrect. Municipal personnel had been able to identify about 20 persons who are homeless living in the streets of the City, in such places as the market square, alleys, bridges and abandoned homes. They also observed that the homeless street population in the City is composed of single, male individuals, ranging from 30 to 50 years of age. Many of them are in this bad situation because of substance abuse, drugs and/or alcohol, and need mental health treatment. At present there are very limited services directed to this specific population.
Most of the services are available through mainstream programs or homeless providers established at regional levels. Isolated mentally ill and substance abuse individuals, represent a major threat of becoming homeless. Most of the nonprofit-profit organizations and public agencies that provide services for the poor, expressed that 32 percent of the population served has severe mental illness, 57 percent have some type of substance abuse problem, and 2 percent have both severe mental illness and some kind of substance abuse problem.
There is a growing sector of women who are victims of domestic violence, and possible homeless candidates. Police records in Cayey show an increase in domestic violence offenses from 6 in 1993 to 18 in the first 9 months of 1994. In the majority of these incidents, one of the family members has to abandon the home, and this member is usually the woman. Many of these women seek shelter with other family members or friends.
Cayey has 1,466 housing unit t s subsidized under State, local and Federal Programs. These units represent 9.5 percent of the 1990 existing housing, stock. Other subsidized units include 433 units under the Commonwealth and the City Section 8 Program. Also an elderly complex of 50 units developed under Section 202 of the Housing Act of 1959, Supportive Housing for the Elderly Program, sponsored by Altrusas, a nonprofit Corporation, and 46 multi-family units in Los Robles Apartments. None of the existing units are expected to be lost from the assisted housing inventory.
There are seven public housing projects in Cayey, which are managed by M. J. Consulting Inc., a private corporation. Of these projects three are targeted for restoration / modernization to improve overall condition of the units and to meet Section 504 requirements. The Puerto Rico Public Housing Administration (PRPHA), is responsible for the administration and management of these projects.
There are nearly 300 persons in the Section 8 waiting list.
Services providers for special needs populations indicated the following needs, in addition to affordable housing:
The city will continue to pursue the objective of becoming an Autonomous Municipality under the Autonomous Municipalities Act. In this capacity, the City will control development within its boundaries and the construction permit process. A plan for the orderly use of land and other resources has been initiated. This document titled "Plan de Ordenamiento Territorial del Municipio de Cayey" is a prerequisite for obtaining regulatory authority in the housing development process. This plan will also help to identify and address restrictive zoning regulations and environmental sensitive areas that also impede housing development.
Among the actions proposed in fair housing are the initiatives to promote affirmative marketing and to monitor compliance with fair housing policies in government subsidized or operated affordable housing.
The City of Cayey has not previously carried out LBP assessment of housing (public or private). However, the Commonwealth Housing Department has done so in six (6) of the seven (7) public housing projects in Cayey.
The information demonstrates that there is a need to develop an educational program, in coordination with the Puerto Rico Housing Department, (PRHD) for the purposes of informing the public of the hazard of lead poisoning and the provision of referrals for medical services. In designing such a program the City will seek assistance from the LBP Hazard Reduction Office of the Puerto Rico Public Housing Authority (PRPHA).
Funds will be requested to the Commonwealth to realize a risk assessment survey to all private dwellings participating in the Section 8 program, and to identify those units constructed before 1978, which are occupied by families with children under seven years of age and/or pregnant women. However, it is estimated that because the majority of the houses are made of concrete, level of LBP in these structures will be less than in wooden and corrugated metal houses.
Cayey is becoming the new metropolis within the Caguas Metropolitan Area. The growth rate of the population in the 1980 - 90 period, exceeded that of many established metropolitan areas. This population increase was decisive in designating the City as an entitlement jurisdiction under the CDBG program. Before that, community development activities were financed by funds accessed through competitive programs and by allocations made to the City under the Commonwealth SBGP program. The lack of secure, considerable funding precluded the initiations of large scale community projects. Many wards in the City lack the appropriate public facilities, (community centers, parks and recreational facilities), and infrastructure, (water and waste water systems, roads and sidewalks), necessary to support a suitable living environment and economic development opportunities for low income persons.
The main obstacle to develop the facilities and infrastructure necessary to foster a suitable living environment is the lack of sufficient resources to address all the needs. Estimated dollar amounts for community development needs are approximately 67 million in the five - year period. The estimated annual investment is 10.6 millions, therefore there is a project deficit of 14 million, which must be funded from unanticipated funding sources. Also this is considering that community needs will remain static, assumption that we know is not true.
The steady flow and considerable amount of CDBG funds, as well as the
prospect of accessing 108 loan guarantees, give the City the opportunity to
address several large scale community development needs simultaneously
The Municipality of Cayey's housing problems are based on family income. According to the 1990 Census data 67.7 percent of all Cayey households are low - income and 16.3 percent are moderate - income, therefore housing priorities and objectives are guided towards providing affordable housing to the same.
Community development objections are to revitalize residential and commercial areas, remove blight in the Central business district, provide public parking facilities that will allow the business owners that are located in the central zone of the town to compete with the Shopping Centers that are being established in the city's environs, and to provide economic development opportunities for low and moderate - income citizens.
The short - term housing priorities are:
The priorities established to expand economic opportunities for low income person are:Short Term:
- provide CDBG funds for infrastructure improvements, public facilities, and park and recreational facilities.
- provide funding for the establishment of community policy facilities and personnel.
- provide funding for neighborhood projects and activities that promote community responsibility and dedication.
Long Term:
- increase the access and availability to quality, public and private facilities and services.
- improve the safety and livability of neighborhoods.
- promote the revitalization of deteriorating or deteriorated neighborhoods
- stimulate community involvement to detect blighting influence, health hazards, and deterioration of community facilities.
Short term:
- establish economic development thresholds in terms of jobs to be created, temporary and permanent, with the use of CDBG funds.
- provide the necessary infrastructure to accommodate the private-sector business expansions that retain and creates jobs.
- pledge future CDBG funds to guarantee loans that promote infrastructure and economic development projects.
Long term:
- the creation and retention of jobs for low income persons, especially for those persons living in the affected areas by the funded activities.
- empowerment and self-sufficiency opportunities for low income persons.
- attract and leverage private sector funds in support of economic development projects.
Although each social service agency and nonprofit organization serving the poor in Cayey is individually doing its share to combat poverty, an anti-poverty policy has not yet been developed and the process has not been formally evaluated and implemented. There is no formal group that includes all the organizations/agencies dealing with this population that is essential for the development of this kind of strategy. To begin this process, the City proposes to establish a Task Force to design strategies and programs, in coordination with community leaders, for-profit and nonprofit organizations, and local and Commonwealth government agencies.
This Task Force will be responsible to conduct an assessment of the policies and programs (Commonwealth, local, nonprofit, for - profit), that assist in reducing the number of households with incomes below the poverty guidelines, by:
Coordination and integration of housing programs with other available federal, state and local social service programs targeted to low-income households will be established to enhance the effectiveness of housing programs as an anti-poverty strategy.
The resources that the City expects to have available to carry out the five-year strategy are either entitlement or discretionary funding, private investment, and loans repayments from closed-out projects. These include stable resources, such as ESGP and CDBG funds, UDAG loan repayments and other funds from competitive programs such as HOPE I and HOPE III, HOPWA, Neighborhood Development Supportive Housing for the Elderly (Section 202), Supportive Housing for Persons with Disabilities and McKinney Act Programs, and others for which the City and/or nonprofit intend to apply. Local financial institutions will be encouraged to provide funds for housing and community development activities through the enforcement of the Community Reinvestment Act of 1977, as amended.
Coordination and integration of housing programs with other available
federal, state and local social service programs targeted to low-income
households will be established to enhance the effectiveness of those programs in
addressing needs in a comprehensive manner. Follow up on the establishment of
the two proposed task force groups, (Anti-Poverty Task Force and the Strategic
Planning Task Force), will be crucial at this formation stage. The task force
groups will meet regularly to discuss common service delivery problems and
intended solutions. This will help in enhancing coordination between the
housing delivery sector and the governmental welfare and support service system.
The action plan lays out the proposed uses of the 2.2 M. from the Community Development Block Grant Program (CDBG) and the Emergency Shelter Grants Program (ESG).
Most of the projects that will be funded with the 1995 program year are concentrated in the most needed neighborhoods
Cayey's housing goals for the first year include expanding the tenant-based rental subsidy opportunities, the provision of grants to owner-occupants, households for the rehabilitation and improvement of their housing and the elimination of substandard conditions, increasing the supply of decent, affordable housing units for renter and owners earning up to 80 percent of median income, through the rehabilitation of existing units or the construction of new ones, and the provision of lots with the necessary infrastructure to promote homeownership.
MAP 2 depicts points of interest and low-moderate income areas.
MAP 3 depicts points of interest, low-moderate income areas, and unemployment levels.
MAP 4 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).
MAP 5 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded project(s) from a street level vantage point.
Mr. Ramon Figueroa Cortes
Federal Programs Director
Municipality of Cayey
(809) 738-0630
