Jackson, Tennessee, is the county seat of Madison County, with a population of approximately 49,000. Located in western Tennessee, the city is about 75 miles to the northeast of Memphis, and 115 miles west-southwest of Nashville. Jackson is the commercial center of a large agricultural region, and the site of Jackson State Community College, Lambuth College, Lane College, and Union University. The Casey Jones Railroad Museum is a local attraction.

Action Plan

In its Consolidated Plan, the city of Jackson describes its housing and community development needs and priorities, and a 5-year strategy for addressing these needs. For the first year of the plan, Jackson is requesting $816,000 in Federal Community Development Block Grant (CDBG) funds, and $500,000 in HOME Investment Partnership Program (HOME) funding. This money will be used to finance the 18 housing, community development, and service activities, with emphasis on housing.

Citizen Participation

Citizen participation for the Consolidated Plan began in the spring of 1994 prior to local approval of Jackson's Enterprise Community Strategic Plan.

For 1995, a public hearing was held on February 23 to identify housing and community development needs. This hearing was advertised in two community newspapers, and notices were mailed to 42 nonprofit agencies. Proposed 1995 CDBG and HOME allocations were presented at a March city council meeting.

To review a draft proposal of the Consolidated Plan, another public hearing was held on April 14, followed by a 30-day public comment period. Copies of the draft plan were made available at the public library and a summary was published in a local newspaper.

Jackson's population declined from 49,434 in 1980, to 48,949 in 1990. During the same period, the population of Madison County rose by 6 percent to 80,000. A significant trend in Jackson over these 10 years is that the white population decreased by 10 percent, while the African American population increased by 17 percent.

The increase in Jackson's African American population did not occur in predominantly African American neighborhoods. The number of people in East Jackson declined by 28 percent between 1980 and 1990. Middle-income families that could afford better housing left East Jackson for other sections of the city. Whites migrated to the county where most new housing was being constructed. The result was an increased concentration of very low- and low-income African American households in East Jackson, where the population in 1990 was 88 percent African American.

Median family income (MFI) for Jackson is $26,426. In comparison, MFI for the area is $29,273, and $35,939 for the Nation.

Of the 19,213 households in Jackson, just under 47 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 to 30 percent MFI)--18 percent, 3,504 households.
• Low-income (31 to 50 percent MFI)--11 percent, 2,154 households.
• Moderate-income (51 to 80 percent MFI)--17 percent, 3,308 households.
• Middle-income (81 to 95 percent MFI)--8 percent, 1,537 households.

Despite migration from within the city to Madison County, whites remain the largest segment of Jackson's population. African Americans are the largest minority group. Racial or ethnic minorities tallied by the 1990 census include:

• White (non-Hispanic)--28,824 or 58.9 percent.
• Black (non-Hispanic)--19,614 or 40.1 percent.
• Hispanic (of any race)--257 (0.5 percent).
• Asian or Pacific Islander--206 (0.4 percent).
• Native American--37 (0.02 percent).

Conditions

Jackson is a small city surrounded by agricultural land, experiencing no growth in terms of absolute population. There are no growth controls or impact fees in place, and the city does not have a comprehensive plan. Residential development occurs strictly according to market conditions.

Housing Needs

There is a great need for affordable rental housing, particularly for large families. There also is a need for homeownership assistance to help lower-income families buy an existing home.

Housing Market Conditions

The housing stock of Jackson totaled 20,739 units, according to the 1990 census. There were 19,206 occupied units, 8,468 by renters and 10,738 by owners. Of the 1,533 vacant units, 912 were for rent and 229 for sale.

Jackson's rental housing market is presently tight. The supply of affordable housing does not meet the demand. Rents are rising and property managers do not mind losing tenants who can't afford the increases. Citywide rental rates are now typically:

• One bedroom, $275-$350.
• Two bedrooms, $350-$450.
• Three bedrooms, $450-$600.

The range of rents in East Jackson are somewhat lower, with two-bedroom units renting for $275 to $325, and three-bedrooms for $350 to $400 a month. Applicable fair market rents are $376 for a two-bedroom unit, and $470 for a three-bedroom.

About 12 percent of all rental units (1,016) and 5 percent of owner-occupied units (537) are substandard, not meeting the city's housing code or the Section 8 Housing Quality Standards of the U.S. Department of Housing and Urban Development (HUD). An estimated 80 percent or more of the city's substandard dwellings are considered suitable for rehabilitation.

Affordable Housing Needs

A large proportion of lower-income households are cost-burdened, paying more than 30 percent of their gross income for their housing, including utilities. Some are severely cost-burdened, paying more than 50 percent of their income for housing expenses.

Of Jackson's 3,504 very low-income (0-30 percent MFI) renter households, 70 percent are cost-burdened and 47 percent severely cost-burdened. Of 2,154 low-income (31-50 percent MFI) renter households, 58 percent are cost-burdened, with 19 percent severely cost-burdened.

Homeless Needs

The 1990 census counted 52 homeless persons in Jackson. This included 27 persons in 9 families with children, 4 youths (17 years of age or younger), and 21 adults (18 or older) who are not in families. All were served by emergency shelters or transitional housing.

Subpopulations of the homeless with special needs are as follows:

• 5 (9.6 percent)--Severe mental illness only.
• 23 (42.2 percent)--Alcohol/other drug abuse only.
• 5 (9.6 percent)--Severe mental illness and alcohol/other drug abuse.
• 5 (9.6 percent)--Domestic violence.

Each year it becomes more apparent in Jackson that there is a rising need for supportive housing for the homeless. Economic factors are the leading causes of homelessness.

Public and Assisted Housing Needs

The Jackson Housing Authority owns and manages 1,027 public housing units, and administers a Section 8 rental assistance program with 671 certificates and vouchers. As of the date of the Consolidated Plan, 38 public housing units were vacant. There were no unused vouchers, and 200 applicants on the Section 8 waiting list.

There are 815 other publicly assisted housing units in Jackson. These include Section 202 housing for the elderly, units with Section 8 project-based assistance, and those with other types of assistance such as below-market-interest-rate mortgages.

Barriers to Affordable Housing

A review of pertinent regulations and ordinances found the following potential barriers to affordability:

• Historic overlay zoning areas typically contain larger older houses built near the turn of the century or earlier. These often need extensive repairs, but could be converted into three- or four-unit apartment buildings. Rehabilitation, however, requires approval of an Historical Review Board, and could result in added rehabilitation costs passed along as higher rents.
• Development costs for the curbs, gutters, and sidewalks--required on developed lots under 100 feet wide--add to the cost of newly constructed affordable homes.
• Jackson's Utility Department's water and sewer tap fees will add about $500 to development costs on a typical 50-foot inner-city lot.

Lead-Based Paint

Lead screening records by the Jackson-Madison County Health Department from 1992 through 1994 show 1,917 houses screened for lead-based paint. Of these, 348 had lead levels that could be hazardous. Extending this to the housing stock in East Jackson (the Enterprise Community), where lead-based paint hazards are more likely, it is estimated that 868 homes contain hazardous levels.

Other Issues

There are also housing and supportive needs for the elderly, mentally disabled, mentally ill, physically disabled, substance abusers, and victims of domestic violence. In general the needs of each group are similar for affordable and accessible housing, differing somewhat in the mix of appropriate supportive services.

According to Jackson's 1994 Comprehensive Housing Affordability Strategy (CHAS) there are an estimated 662 nonhomeless individuals in need of supportive housing. They include:

• Elderly--37 persons.
• Persons with disabilities--502.
• Persons with substance abuse problems--57.
• Persons with HIV/AIDS--66.

Community Development Needs

Jackson's needs are similar to those of other older cities with an aging infrastructure, and neighborhoods with concentrations of lower-income households. There is a need to upgrade or reconstruct many parts of the infrastructure, and to provide social and public service assistance to the city's lower-income families.

Infrastructure needs include street and sidewalk improvements in East Jackson. In the same Enterprise Community area, there is a need for a health facility and a youth center. Human services needs include:

• Decreasing number of high school dropouts.
• Increasing number of adults with high school-equivalency educations.
• Addressing domestic violence and juvenile delinquency.
• Addressing drug use in public housing.
• Developing alternative sentencing and corrections options.

An economic development strategy is also required for the Enterprise Community. More aggressive collection of tax payments on delinquent properties is needed to force owners to develop or sell vacant lots or substandard properties.

Housing and Community Development Objectives and Priorities

Housing objectives identified in the plan are to:

• Rehabilitate the existing housing stock.
• Replace units unsuitable for rehabilitation.
• Strengthen enforcement of the housing code.
• Increase number of Section 8 certificates or vouchers in use.
• Increase household income.
• Prevent homelessness.
• Create more transitional housing with links to shelters.
• Provide essential services to homeless families.
• Develop homeownership programs.

Jackson's community development objectives were taken directly from the Enterprise Community Strategic Plan. All are for East Jackson and include:

• Significantly improving physical plant of East Jackson.
• Developing a comprehensive health facility in the community.
• Addressing domestic violence, juvenile delinquency, and drug use.
• Providing an accessible youth center in the community.
• Developing a community economic development strategy.
• Promoting minority business development.
• Nurturing new jobs through small businesses.

Housing Priorities

For housing the highest priorities include:

• Assisting cost-burdened lower-income households.
• Rehabilitating substandard lower-income housing.
• Outreach to families at risk of becoming homeless.
• Create more transitional and permanent housing.
• Create shelters for persons with special needs.

Nonhousing Community Development Priorities

Top nonhousing priorities include building a youth center and a health facility, and improving streets and sidewalks in the East Jackson/Enterprise Community area. The 5-year strategic plan also gives priority to meeting the needs for youth programs, substance abuse services, job training, health services, and for economic development efforts.

Antipoverty Strategy

The strategic plan is effectively an antipoverty strategy. It is geared towards improving the lives and living conditions of citizens within Jackson's concentration of poverty, the area designated an Enterprise Community.

Housing and Community Development Resources

Resources available to the city of Jackson to implement the strategic plan include projected CDBG funding of $4,080,000 over the 5-year period, plus HUD HOME funds. A variety of other Federal and State programs will be used. State sources include pass-through Emergency Shelter Grant funds provided to a certified local human resource development council ($103,163 in 1995) for homelessness activities.

Nonprofit organizations serving Jackson's lower-income households are essential to the implementation of Jackson's 5-year plan. These organizations include: East Jackson Economic Commission, West Tennessee Legal Services, Area Relief Ministries, Salvation Army, Regional Inter-Faith Association, Habitat for Humanity, Helping Hands, West Tennessee Behavioral Center, and the Affordable Housing Community Development Corporation.

Private lending institutions--Volunteer Bank, First Tennessee Bank, and Union Planters--have mortgage and home improvement loan programs specifically for low- and moderate-income families.

Coordination of Strategic Plan

Jackson's Community Development Office will coordinate the implementation of the Consolidated Plan. Persons from the Community Development Office are on the boards of various nonprofit entities, serve on bank committees to review Community Reinvestment Act achievements, and work with the Chamber of Commerce on mutual projects.

Description of Key Projects

For the program year 1995-1996, Jackson plans to use $1,411,000 in CDBG, HOME, Emergency Shelter Grant, and program income funds for 18 activities to address specific housing, community development, and human services needs.

Emphasis is on housing, with $712,000 in CDBG and HOME funds allocated to housing related projects, including:

• $283,000 for rehabilitation of owner-occupied housing units. CDBG funds of $190,000 are combined with $93,000 in State matching funds.
• $355,000 for rehabilitation of owner-occupied housing in the targeted Whitehall School area. Money is from HOME funds.
• $35,000 for an emergency repairs loan fund for low-income homeowners.
• $75,000 from HOME funds as a set-aside for an eligible nonprofit community housing development organization.
• $18,000 to assist the nonprofit Affordable Housing Community Development Corporation.
• $19,000 to the Southwest Human Resource Agency for its homeless assistance program.

Other planned housing activities in the Consolidated Plan but not using CDBG or HOME funds include:

• Grants to three nonprofit organizations serving the homeless from a $103,163 emergency shelter set-aside from the Department of Human Services.
• A no-interest loan program for 50 percent of cost of rehabilitating or constructing affordable rental housing, funded with $250,000 from the Tennessee Housing Development Agency.

Allocations for community development include:

• $300,000 for 2,000 linear feet of street and sidewalk improvements.
• $125,000 to build a new youth recreational center.
• $20,000 for up-front costs (design, survey) for new health clinic.
• $60,000 for a loan program for small businesses in lower-income areas.

For public services, planned activities include:

• $19,000 to West Tennessee Legal Services for housing information and referral services (including eviction, foreclosure, and fair housing work), and homeless prevention programs.
• A job training center, in two public housing units in Parkview Courts, under a Jobworks grant of $81,938.

Housing Goals

Housing activities included in this year's Action Plan are expected to result in 85 new or rehabilitated housing units. It is projected that other planned activities will benefit 247 households, and 3,500 persons (including 500 youths).

Locations

Activities included in the Action Plan are concentrated in the Enterprise Community (East Jackson).

Maps

MAP 1 depicts points of interest in the jurisdiction.

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).

Randall Nelson, Director
Community Development Department
111 North Church Street
Jackson, Tennessee 38301
Phone: 901-425-8304
Fax: 901-425-8228