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



Consolidated Plan Contact

CITIZEN'S SUMMARY

Johnson City is a small city and is one of the three cities that make up the Tri-Cities area in Upper East Tennessee. Johnson City is located near Knoxville and the Smoky Mountains. The City has a diverse economy which include medical and industrial facilities, East Tennessee State University, and the Mountain Home Veterans Administration Medical Center.

Action Plan

The Johnson City Consolidated Plan presents a strategic vision for housing and community development in the Johnson City area. It includes a One-Year Action Plan for spending approximately $663,000 of Community Development Block Grant (CDBG) funds in 1995. These funds will primarily be spent on housing, handicapped accessibility, and public services.

Citizen Participation

Specific responsibility for compiling the Consolidated Plan was assigned to the office of Community Development, Department of Community and Economic Development, city of Johnson City. The Office of Community Development coordinated a series of workshops with constituent agencies to solicit input for the Plan. There were a total of sixty-five participants in the planning process including representatives of construction, financial services, health care industry, higher education, government, low-to-moderate income residents, religious institutions, and a variety of community-based and non-profit organizations.



COMMUNITY PROFILE

According to the 1990 population and housing data, Johnson City had a resident base of 49,780 which constitutes 19,577 households. The estimated 1995 population reveals the City has a resident base of 52,500 which constitutes 21,875 households. Due to this growth, both land costs and housing prices have been on a steady increase. Current housing units are estimated at 21,214 with 19,638 units occupied. Approximately 11,124 units or 57 percent are owner occupied, while 8,514 units, or 43 percent, are renter occupied.



HOUSING AND COMMUNITY
DEVELOPMENT NEEDS

Conditions

The housing availability for single family units in Johnson City is adequate with an average vacancy rate of about 10 percent. However, the vacancy rate and availability for single family units for low and moderate income households currently stands at approximately 3 percent. On the rental side, the City is in a critical situation. Lack of building activity of unsubsidized rental units plus an almost total lack of subsidized rental units produced during the last few years have created a situation of extremely low vacancy rates and rising rental rates. The vast majority of rental units available are large single family homes for rent or condominium units in the upper price ranges.

Housing Needs

Based upon the information available in the 1990 Special HUD Census Tables, it has been determined that there is a significant housing need among extremely low, very low, low, and moderate income households. These tables show that there are currently 19,577 households. Of these 8,204 are renter households and 11,373 are owner households. Of the renter households some 2,035, or 37 percent, are currently experiencing housing problems.Analysis of the housing market indicates the greatest areas of need for existing residents are single-family units in more affordable price ranges ($60,000 - $150,000) and considerably greater development of rental units. On the homeownership side, there is a total of 1,478, or 13 percent, of households with housing problems. Of these, 508 are elderly households and 1,006 are small and large families. In renter households, cost burden represents a substantial part of the need in each category with severe cost burden accounting for 37 percent of the need among elderly renter households, 35 percent among small families, and 27 percent among large families. Overcrowding represents approximately 40 percent of the need among small and large families, while substandard conditions account for approximately 15 percent of the need in renter households.Severe cost burden accounted for approximately 60 percent of the need for elderly homeowners with substandard conditions present in 15 percent of the households. For families, substandard conditions were again at about 15 percent and severe cost burden at 55 to 60 percent.The City does not see any major disproportionate need trends for any particular race or ethnic group over the next five years. However, the fact that better needs information is becoming available for special populations such as the chronically mentally ill, the developmentally disabled, and persons with HIV/AIDS, may cause an adjustment to the City's priorities.

Housing Market Conditions

There is a shortage of affordable two bedroom apartments and a severe shortage of three bedroom apartments. Many lower income households are living in overcrowded conditions due to the lack of adequately sized apartment units which they can afford.There are 627 very low income owner households and of these 62 percent, or 388, have housing problems. There are 880 low income owner households, with 287 of these having housing problems.

Affordable Housing Needs

Housing needs in the community based on projected population growth show a need of some 3,361 total units, with an estimated need of 1,961 single-family owner units and an estimated need of 1,445 rental units. Based on the current low and moderate income percentage of the population, this would need to include 922 single family units and 679 multi-family units to take care of expected increases in the resident population.Homeownership for first time homebuyers has become a priority for the City's Community Development Program. The need for affordable housing in fact is so acute that in 1990, the City initiated its Affordable New Homes Program using a combination of CDBG, THDA, and private lenders funds. This program targets very low, low and moderate income households and seeks through partnerships with builders, local lenders, and other support agencies to develop single family homes at affordable prices.For renters, the greatest need is for rehabilitation of existing units and to develop small unit rental developments on infill sites close to needed services such as medical and transportation.

Homeless Needs

The City has identified the following as its homeless needs: The need for transitional housing facilities for men, women, and families; more permanent housing particularly for single male homeless persons; the need for an alternative shelter facility to serve those who do not want to be in a regular shelter; the need for a detoxification treatment facility; an expanded medical clinic facility; case management services, particularly job opportunities; better prevention programs, particularly involving families with children; more comprehensive mental health services; a Safe Haven/Day Shelter facility; more comprehensive drug/alcohol counseling and treatment; more community awareness programs; more directed legal services, particularly in the areas of housing and benefit discrimination; pre-eviction and prevention counseling; and, more permanent supportive housing.

Public and Assisted Housing Needs

There is a total of 755 public housing units under the management of the Johnson City Housing Authority (JCHA). The waiting list of qualified applicants is maintained by JCHA and contains 257 households and 51 individuals seeking residence. The public housing authority currently has 28 requests for housing assistance from large families and 51 requests for assistance to single occupants. JCHA uses a system of applying Federal preferences, giving preference for assistance to those persons who were involuntarily displaced, those who currently reside in substandard housing, those who are currently spending more than 50 percent of their income for rent and utilities, and those who are victims of domestic violence. Approximately 10 percent of the applicants meet one or more of the Federal preferences for admission to rental assistance programs. The JCHA uses no local preferences for its housing program, the sole criterion being the applicant's position on the waiting list and availability of a vacant unit.In addition, there is a total of 1,043 Section 8 units with a waiting list of 580 households. Also, there are 17 unused tenant based certificates for the Section 8 program. There are currently no vacant units in the Section 8 program.There are 114 units of Section 202 housing. These were all new construction. In addition, there are 261 units in three separate projects developed under the HUD 236 program. Currently, there are no vacant Section 202 units and only one HUD 236 program unit is vacant.

Barriers to Affordable Housing

The primary barriers to affordable homes include (1) high cost mortgage financing beyond the incomes of very low and low income households, and, (2) low supply of affordable single-family and multi-family housing units.The City will make efforts to facilitate the development of a comprehensive financing package to provide low cost mortgage financing and low downpayment and closing cost assistance for very low and low income residents, in cooperation with local financial institutions.In addition, the City will hold discussions with both for-profit and non-profit builders/developers to determine how best to increase the supply of new single-family and multi-family units at an affordable cost.

Fair Housing

The City has completed a study on the Impediments to Fair Housing and a draft copy has been sent to HUD. A copy is also located in the Office of Community Development.

Lead-Based Paint

After detailed consultation with the local building department, the estimated number of housing units built in the City prior to 1980 is 16,622. All housing units built prior to 1978 are considered to potentially contain excessive levels of lead paint.The City has recently been able to identify instances of lead based paint poisoning. Four residences were found to contain lead based paint. Through work with the local housing authority and the local health department, the City has begun a process of information dissemination to housing authority residents and the general public using HUD and Department of Health and Human Services information concerning the hazards of lead based paint. The City has also established a policy in the rehabilitation program to carefully inspect paint in the structure and to require replacement paint in specifications in cases where older flaking paint is found.

Other Issues

Several policies and regulations dealing with housing development standards are currently in force throughout the City and several of these can and do affect the cost of both single-family and multi-family housing. The City will take a closer look at these policies and regulation in order to get a better picture of how they can and do affect the development of affordable housing in the community.

Community Development Needs

The Community Development Office encourage developers to build on an infill basis; that is to make use of vacant lots in established neighborhoods. Developers are encouraged to construct small unit multi-family infill developments on tracts of land properly zoned. Measures may be taken to provide incentives for ownership of low to moderate housing by offering utility connection assistance as well as writedowns on mortgages.

Coordination

The Community Development Program of Johnson City intends to use the Housing and Community Development Citizens Advisory Committee as its chief structure for the coordination of its resources with various agencies, departments, and organizations. The City encourages and participates in meetings between public and assisted housing providers and health and service agencies. Johnson City is still in the process of setting up a local housing and community development resources board which would include representation from all of these groups. This board would be a group which would gather information, discuss needs, and recommend policy to the City staff and governing board concerning housing and community development issues.



HOUSING AND COMMUNITY
DEVELOPMENT STRATEGY

Vision for Change

Through the Consolidated Plan, the City hopes to bring about a predictable and progressive process that will lead to a highly productive program of housing and community development solutions to meet the needs of very low, low and moderate income households.

Housing and Community Development Objectives and Priorities

The Consolidated Plan identified four distinct focus areas to provide actions, projects, and programs to respond to the housing and community development needs that were identified in the Plan. These areas are:

  1. Housing
  2. Community/Economic Development
  3. Homeless
  4. Community Support Services
The actions, projects, and programs which will be initiated to respond to these areas have been broken down into specific goals and objectives.

Housing Priorities

As stated above, the number one priority in Johnson City is housing. The City hopes to develop a network of lenders, builders/developers, non-profits, local businesses, and local governmental agencies to allow for the development of specific programs and projects to meet rental and homeownership housing needs, and to coordinate this network with funding entities so that realistic programs and projects can be planned and implemented in a timely and effective manner. Also, the City plans to put a priority on citizen participation by very low, low, and moderate income persons through the Community Housing and Economic Development Advisory Board and to encourage the development of local Neighborhood Citizen Advisory Committees, particularly in community development target neighborhoods.

Non-Housing Community Development Priorities

The other three priorities established - community and economic development, - homeless, and - community support services - fall into this category of non-housing community development priorities. The objectives for these priorities are essentially the same as identified for housing. In addition, the City has added another requirement for grass roots participation by organizations and citizens who have a vested interest in greater economic and community development opportunity and growth in the community, particularly job- generating opportunities.

Anti-Poverty Strategy

All of the City's programs and policies related to reducing the number of households living below the poverty line are focused in the Community Development Program. These goals, programs, and policies are identified in the Consolidated Plan document. This document identifies not only the goals, programs, and policies, but also discusses the resources available for funding.Primarily, the City's Community Development Program seeks to provide direct benefits to qualified beneficiaries to provide upgraded housing and needed support services to very low, low, and moderate income households. On the service side, this also includes the provision of skills for persons seeking better employment opportunities and desiring other life skills training to lift them to a higher quality of life. The City has recently restructured its Community Development Program in an effort to be able to more clearly focus on and respond to the needs of its citizens who are economically disadvantaged.

Housing and Community Development Resources

The city of Johnson City receives federal funds from the U.S. Department of Housing and Urban Development (HUD), with the CDBG; Emergency Shelter Grant program funds from the Tennessee Department of Human Services (federal funds passed through the State); HOME Grant funds (federal funds passed through the State); and State funds from the Tennessee Housing Development Agency H.O.U.S.E. grant program.

Coordination of Strategic Plan

The coordination by which the Consolidated Plan will be implemented is through a partnership forged between private industry, non-profit organizations, and public institutions. The oversight responsibility for the Plan is with the Office of Community Development. This will be accomplished in partnership with low and moderate income residents, representatives of the construction and financial services industry, and a variety of non-profit and community based organizations, as well as the Johnson City Housing Authority, Tennessee Housing Development Agency, and HUD.



ONE-YEAR ACTION PLAN

Description of Key Projects

The key projects stated in the Consolidated Plan for this fiscal year include: housing rehabilitation; a homeownership program; public facilities and improvements; economic development; public services; and, code enforcement.

Locations

Projects undertaken in the Community Development Program are located within the boundaries of Johnson City. A significant portion of these projects are conducted in existing CDBG target areas. However, several projects, such as Homeownership and Residential Rehabilitation Programs, are conducted city-wide.

Lead Agencies

Specific responsibility for compiling the Consolidated Plan was assigned to the Office of Community Development, Department of Community and Economic Development, city of Johnson City. The Office of Community Development coordinated a series of workshops with constituent agencies to solicit input for the Plan. There was a total of sixty-five participants in the planning process, including representatives of the construction industry, financial services, health care industry, higher education, government, low-to-moderate income residents, religious institutions, and a variety of community-based and non-profit organizations.

Housing Goals

Highlights of Johnson City's housing goals for the first year include increasing the supply of affordable housing through rehabilitation and new construction providing rental assistance, placing public housing residents in self-sufficiency programs, increasing - housing choice for very low, low, and moderate income persons, preventing homelessness, and assisting the homeless by providing transitional and permanent housing.

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.


To comment on Johnson City's Consolidated Plan, please contact:

Mr. Steve Baldwin
Director, Community Development
City of Johnson City
917 E. Watauga Avenue
Johnson City, TN 37601

Phone: (423) 928-9493


Return to Tennessee's Consolidated Plans.