Providence is the State capital and the largest city in Rhode Island. It is located at the northern end of Narragansett Bay, which opens into the Atlantic Ocean. In 1636 Roger Williams established a settlement on land he bought from the Narragansett Indians. The British government granted the colony a royal charter in 1663. However, Rhode Island became the first colony to declare its independence from Britain in 1776 because of resentment toward British interference in its seagoing trade. A flourishing textile industry in the area attracted waves of immigrants in the 1800s. Although the textile industry declined after World War II, Providence continues to produce a wide array of manufactured goods, including metal and machine tools, silverware, and rubber goods. Jewelry manufacturing is the city's leading industry; Providence is known as the costume jewelry capital of the Nation.

Action Plan

In its Consolidated Plan, Providence describes a 5-year strategy for addressing its housing and community development needs using Federal and other resources. For the first year of the plan, the city is requesting a total of $10 million in Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), and Emergency Shelter Grant (ESG) funds. This money will be used to finance 102 housing, community development, and service activities planned for Fiscal Year 1995.

Providence is the major commercial and retail center of a region that includes southeastern Massachusetts. The city is a major regional port of entry for tankers carrying petroleum products for distribution in southern New England.

Brown University, one of the oldest colleges in the Nation, is located in Providence. Other colleges in the city are Rhode Island College, the Rhode Island School of Design, and Providence College. The east side contains many well-preserved buildings from the pre-Revolutionary period. The city's industrial area is north of the harbor and west of the downtown business district.

Providence grew in importance as a manufacturing center throughout the 1800s. A booming textile industry drew large numbers of immigrants from Italy, Portugal, and Spain. The city's population grew dramatically and peaked at about 175,000 in 1900 but declined after World War II as residents migrated to new homes in suburban areas south of the city. As of January 1994, Providence's estimated population was 153,700.

Providence is the core city in the Providence metropolitan area. As is common with older centers of newer metropolitan areas, Providence's residents are less prosperous than their suburban neighbors. In 1993 the median household income was $23,772, significantly lower than that of other Rhode Island cities.

Median family income (MFI) for the metropolitan area is $39,320. Of the 58,905 households in Providence, 59 percent have annual incomes of 80 percent or less of MFI. Analysis of census data indicates the following levels of low- and moderate-income households:

• Very low-income (0-50 percent of MFI) -- 40 percent, 23,344 households.
• Low-income (51-80 percent of MFI) -- 20 percent, 11,471 households.
• Moderate-income (81-95 percent of MFI) -- 7 percent, 4,373 households.

The city has a significant minority population that includes Hispanics, African Americans, Asian Americans, and African immigrants.

Conditions

Rehabilitation of the city's existing housing stock offers the most direct and efficient way of meeting the housing needs of all residents, including homeownership opportunities for low-income families. The majority of the city's housing stock was built before 1950, and much of it is in need of repair. Available land is limited and costly, but a significant portion of the abandoned housing stock could be reclaimed and made suitable for habitation.

Housing Needs

Providence's housing needs fall into three broad categories:

• Rehabilitating the old housing stock for both renters and owners.
• Providing homeownership opportunities by rehabilitating older units and building new units on vacant lots in older neighborhoods.
• Meeting the crisis needs of the homeless and the growing special housing needs of disabled individuals and their families.

Market Conditions

The housing stock of Providence consists of 66,794 year-round units, according to the 1990 census. Of the 58,905 occupied units, 37,547 are renter-occupied, and 21,358 are owner-occupied.

The housing stock is almost completely two- and three-story homes of wood-frame construction. Most of the 630 properties targeted for rehabilitation have been temporarily abandoned by owners who are unable or unwilling to invest in repairs. While waiting for buyers, owners often relinquish the property for tax sales.

The 1990 average rent for a two-bedroom unit in Providence was $573 a month.

Most of the buildable residential land in the city consists of vacant lots where houses have been demolished in the past 10 to 15 years. A 23-acre tract of land once held 750 rental units that were demolished as part of a slum clearance project. Many of the scattered vacant lots are surrounded by existing housing and are zoned exclusively for residential use.

Affordable Housing Needs

A large proportion of lower income households are cost-burdened (those households that pay more than 30 percent of their income for housing). Some are severely cost-burdened (those households that pay more than 50 percent of their income for housing).

Homeless Needs

Providence has developed fairly accurate estimates of the homeless population based upon data collected by the Rhode Island Emergency Food Board. The data show that 1,908 clients are annually given emergency shelter by participating providers.

Statistics from 1990, 1991, and 1992 indicate that homelessness in Rhode Island continues to be concentrated primarily in Providence. The Travelers Aid Society of Rhode Island reports that 85 percent of its homeless clients were from Providence in 1992.

The 1990 census counted a total of 1,758 sheltered homeless persons in Providence in its 1-night count. Based on this figure and other information, it is estimated that there are about 2,185 homeless persons in the city -- 1,758 sheltered and 427 unsheltered. Of the sheltered homeless, there are an estimated 716 persons in 290 families with children, 223 youths (age 17 or younger), and 1,246 adults not in families.

Subpopulations of the homeless with special needs are as follows:

• 197 (9 percent) -- severe mental illness only.
• 393 (18 percent) -- alcohol/other drug abuse only.
• 44 (2 percent) -- severe mental illness and alcohol/other drug abuse.
• 350 (16 percent) -- victims of domestic violence.
• 328 (15 percent) -- HIV/AIDS.

Public and Assisted Housing Needs

The Providence Housing Authority (PHA) is in the first year of a 3-year Comprehensive Grant Program to completely overhaul all of the family projects in its system. The program will also modernize and upgrade the authority's housing units for elderly persons, adapt the system to conform to Section 504 requirements, and remove lead-based paint hazards from the authority's housing units. The $3.9 million funding for the first year is provided by the U.S. Department of Housing and Urban Development (HUD) and is not reflected in the city's CDBG budget.

Barriers to Affordable Housing

The greatest barrier to affordable housing for Providence's lower income population is a lack of money to pay for housing. While affordable new units may become available through efforts in the Consolidated Plan, current rents will not be affected by any increases in the supply of housing. Many of the rental units in good condition have fixed debt-service costs, often due to speculative investments or recent improvements. Despite current vacancies, owners have not lowered rents.

Fair Housing

Providence has allocated funds to the Providence Human Relations Commission for fair housing initiatives and the continuation of the Equal Housing Opportunity Program (EHOP). EHOP personnel and the Affirmative Action Officer of the city's Department of Planning and Development also serve on the Fair Housing Task Force.

Lead-Based Paint

Use of lead-based paint was banned for residential use in 1979. Since most of the city's housing was built before 1950, there is a high likelihood that many units contain lead-based paint.

Other Issues

Housing and supportive needs exist for the elderly, mentally disabled, mentally ill, physically disabled, substance abusers, and victims of domestic violence. Each group has similar needs when it comes to affordable and accessible housing, but the mix of appropriate supportive services required for each group is different.

Housing Priorities

Providence's housing priorities for the next 5 years include:

• Rehabilitation of existing structures. This includes: renovations of vacant and abandoned buildings to provide two- and three-bedroom apartments for small families, home repair assistance for elderly homeowners, rehabilitation to produce transitional housing for homeless families and persons with special needs, and reuse of old hotels as single-room occupancy housing.
• Rental assistance for low-income renters. This includes: more Section 8 rental subsidies, more Section 8 certificates for project-based use, and a special allocation for Section 8 certificates for transitional housing for the homeless. The city also plans to apply for increased funding from the State's Rental Assistance Program, Federal Section 8 assistance for public housing, and a self-sufficiency program for extremely low-income families in job training and employment activities.
• Homebuyers' assistance. City officials will work with public and private sources of mortgage loans to provide the necessary financing assistance for low- and moderate-income homebuyers. The city plans to use bond proceeds, tax credits, and creative financing to construct and market affordable housing to eligible lower income residents.
• In-fill construction. New affordable housing can be built on vacant land in residential neighborhoods in the inner city.
• Acquisition of property for development. The city plans to "bank" land for relatively short periods of time to prevent speculators from driving up prices prior to development. The city would also condemn, through eminent domain if necessary, sites for housing development needs.

Anti-Poverty Strategy

Over 18 percent of the city's population live in poverty; statewide, 11 percent of households live below the poverty level. Providence has many ways to reduce poverty and ameliorate its effects on low-income families and individuals. The overall economic recession in New England has taken its toll on the job market. In Rhode Island the unemployment rate is about 9 percent, considerably lower than the Providence unemployment rate of about 20 percent.

The city employs the following antipoverty strategies:

• Continuing to provide low-cost housing and assistance to homebuyers. Providence has also applied for 1,600 additional units of Section 8 rental assistance, which is the approximate number of families on a waiting list for subsidized housing.
• Using antipoverty funds from the Community Services Administration of the Federal Department of Health and Human Services to assist poverty-level households.
• Participating in a consortium with a neighboring city in the Job Training Partnership Act program. Providence also uses State job training programs and the State Workforce 2000 training program, in conjunction with private industry.
• Providing CDBG funds to many social service and community agencies that offer services to poor residents. These agencies, supported in part by the city, provide food, emergency shelter, clothing, and furniture to low-income families in need.

Housing and Community Development Resources

The resources to carry out the 5-year plan include $10 million in CDBG, HOME, and ESG funds to be received in 1995. Providence anticipates that similar levels of HUD support for community development and housing activities will be available during the remaining 4 years of the plan. The city also plans to use assistance from Federal, State, and other sources.

Coordination of the Strategic Plan

The Department of Planning and Development will serve as the lead agency for the coordination and implementation of the Consolidated Plan. It will monitor the use and impact of Federal resources for housing. The city has a contract with the Providence Plan Housing Corporation (PPHC) for implementing the HOME Program. The Department of Planning and Development will perform the following functions:

• Internal monitoring of its use of CDBG and HOME funds.
• External monitoring of the PPHC's use of CDBG, HOME, and other funds.
• External monitoring of the use of funds by other providers.

Description of Key Projects

For the program year 1995-1996, Providence plans to use $10.8 million in CDBG, HOME, ESG, and program income funds for 102 activities to address specific housing, community development, and human service needs.

Under the auspices of the HOME Program, planned housing activities are:

• $200,000 for construction of new housing.
• $1 million for rehabilitation of residential housing.
• $550,000 for acquisition of property for homebuyers' programs.

• $206,750 for four new construction projects.
• $537,579 for 11 rehabilitation activities, some by local groups.
• $116,000 for rehabilitation of two historic residential properties.

For the homeless, activities include:

• $280,000 from an ESG for operating costs of the city's multiservice center, the Interim House Shelter, and eight other nonprofit service providers.
• $75,000 in CDBG funds for physical improvements of homeless facilities.

For community development projects, CDBG funding is allocated for:

• $427,500 to acquire eight properties for future use.
• $120,000 for improvements to three parks or recreation facilities.
• $571,150 for repairs and improvements to 17 public-use facilities.
• $216,000 for repairs to two nonresidential historic properties.
• $45,000 to build one health center and improve another.
• $985,000 for physical improvements in six neighborhoods.

For economic development, $1.6 million is allotted for five items; $625,000 is added to a revolving development loan pool; and $720,000 is earmarked for scheduled repayments on a Section 108 economic development loan.

For public and human services, $1.5 million is allocated for 36 activities. Most is funding to assist nonprofit service providers. Sample activities and funding include:

• $10,000 for a neighborhood YMCA youth and swimming program.
• $125,713 to a community center for youth intake and day-care services.
• $50,000 to the Urban League for a senior citizens program.
• $40,647 for a youth tutorial program.
• $18,476 for case management for elderly persons.
• $5,000 for afterschool day care transportation services.
• $18,000 to the International Center to provide immigration services.
• $16,000 for a youth program for the Hmong community.

Locations

Physical improvement to facilities will take place in areas of the city eligible for CDBG funds. Other activities that are provided on the basis of household or individual need will operate throughout the city.

Housing Goals

Housing activities included in this year's Action Plan are expected to result in 281 new or rehabilitated housing units.

Maps

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).