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

Consolidated Plan Contact

GENERAL OVERVIEW

The primary goal of Memphis' Consolidated Plan is to foster the development of viable urban neighborhoods which include decent housing for everyone, a suitable living environment and expanded economic opportunities, especially for low- and moderate-income citizens. Five major groups of activities address this goal:
Low- and moderate-income housing
Community and social services
Assistance for the homeless
Neighborhood and community development
Economic development.

The Consolidated Plan combines into a single submission Federal grant applications for the Community Development Block Grant (CDBG), the HOME and the Emergency Shelter Grant (ESG) Programs. In addition, the plan contains a citizen participation plan, market analysis, and a housing and community development needs assessment. It presents a three-year strategy with projected use of Federal, State and local housing resources for July 1, 1995 - June 30, 1998, and a one-year action plan for July 1, 1995 - June 30, 1996. The action plan identifies specific projects and programs proposed for implementation in using funds (FY96 according to the City's year and FY95 according to the funding year) from the U. S. Department of Housing and Urban Development (HUD). For the remaining narratives of this summary, the Federal fiscal year of 1995 (FY95) will be used.

The combined CDBG, HOME and ESG funding for FY95 from HUD is expected to total $17,104,000. The one-year action plan identifies new projects which the Division of Housing and Community Development (HCD) proposes to implement using these funds as well as an estimated $2,400,000 in CDBG program income to be received during FY95. The three-year strategy describes how current and future year funds will be used to address housing and community needs through projects that will be or are currently being implemented. It identifies how these and other anticipated Federal, State and local resources will be allocated, and how HCD will coordinate with other agencies in project implementation.

CITIZEN PARTICIPATION

The Consolidated Plan was developed within the framework of a Citizen Participation Plan which included consultation with social service and housing agencies. This planning process included three public hearings and meetings with twelve constituency groups representing the homeless, persons with AIDS, the elderly, the physically handicapped, children and youth, agencies addressing lead-based paint concerns, mental heath/retardation and alcohol and drug agencies, Memphis Housing Authority and residents, neighborhoods, economic development/job creation agencies, nonprofit community development corporations, and fair housing groups. HCD staff also conducted a survey of the constituency group members to identify needs and the short and long term strategies to address the needs in each constituency group area.

About 100 active participants were involved in the public hearings and constituency group meetings held during the first four months of 1995, and approximately 200 surveys were returned to HCD. The draft proposed Consolidated Plan was available for public review and comment from April 10 to May 10, 1995. The proposed plan was approved by City Council on May 2, 1995, and was submitted to HUD for review and approval on May 16, 1995. Substantial amendments to the plan in the future will likewise require public notification, a comment period, and HUD approval.

MARKET ANALYSIS

The market analysis section of the Consolidated Plan (Section I) provides a description of general demographic and housing characteristics including population, income, employment, housing stock conditions, affordability, supply and demand.

Population and Income

During the 1980s Memphis experienced considerable out-migration from poor inner-city census tracts. This left concentrations of substandard vacant housing primarily occupied by low-income persons in the inner-city. (See Map of Low and Moderate Income Concentrations). During this decade, the population of the City decreased by 6% and for the first time in its history, the majority of the population was black. The average household size declined from an average 3.23 persons per household in 1970, to 2.59 persons per household in 1990. Married couple households declined from 80 percent to 61 percent of all households in the same period. The total number of households in 1990 was 229,829.

The median household income in Memphis in 1990 for a family of four was $22,674, compared to a median household income in Shelby County of $27,132. According to the 1990 Census, 31 percent of the households in the City were very low-income (that is, earned 50 percent or less of median income). Of these, 69 percent were black households. The number of people below the- poverty level in Memphis increased between 1970 and 1990 from 20.5 percent to 22.3 percent of the population. Of the elderly, 21 percent, and of children under 18 years old, 34 percent were below the poverty level. Children were the single largest age group in poverty.

Description of the Housing Stocks

The total number of housing units in Memphis increased by about 2 percent between 1970 and 1990 to 248,573 units; a total of 18,774 or 7.5 percent of all units were vacant. Single family units comprised about 64 percent and multifamily units 35 percent of all units, with the remainder being mobile homes. This roughly approximates the percentage of owner - versus renter-occupied units, which was 59 percent owner and 41 percent renter-occupied. The vacancy rate was 2.1 percent for owner-occupied units and 9.5 percent for renter units. The figure for vacant rental units was about three times higher than the State average. As might be expected, more low-income households were renters than other households: 72 percent of low-income households were renters compared to 28 percent of other households.

Memphis Housing Authority (MHA) manages the largest inventory of affordable rental housing in the City. Public housing units total about 7,000, most of which are in pre-1950 housing developments concentrated in the inner-city. MHA also subsidizes 3,300 private market rental units through the Section 8 program. In April, 1995, there were 1,400 people on MHA's public housing waiting list, and over 3,000 on the Section 8 waiting list, indicating a significant demand for affordable, standard rental housing.

HUD, HCD and Tennessee Housing Development Agency (THDA) also have inventories of affordable units assisted by tax credits, subsidies, loans or grants. The total estimated number of units in the City assisted by these entities is around 20,000. However, as many as 10 percent of these units may currently be substandard, vacant or no longer exist.

Housing for the Homeless and for Persons with Special Needs

Housing for the homeless includes both transitional and emergency shelter. Emergency shelter facilities include an estimated 484 beds, 200 of which are reserved for men. Most of these facilities are located in the downtown and inner city. There is a reported need for more beds for women and children. There are 675 transitional units/beds (which can be occupied for 60 days or more) in the City, but approximately 400 of these are located in alcohol and drug treatment facilities.

The problem of shortages in housing for persons with special needs was frequently stated by social service agencies throughout the constituency group process. Almost all assisted housing in the city has a long waiting list, and the fact that most of the homeless have some form of disability supports the view that the disabled suffer disproportionately from housing needs and are less able to compete for limited affordable housing in the market. There are an estimated 400 housing units in Memphis specifically reserved for a population of 10,000 mentally ill persons. Only 10-15 percent of these units are known to be assisted with Federal or other subsidies. The population of persons with AIDS is reported to be about 750, but there are no housing units set aside for them in Memphis and there are very limited supportive services for them.

Barriers to Affordable Housing

The market analysis also looks at barriers to affordable housing, including zoning, building codes, tax structure and public policies. Two examples of such barriers are property taxes and development restrictions. Property taxes in Memphis are twice those in Shelby County. This places an additional burden on low-income families in Memphis since more live in the City than in the county. Obstacles to developing high-density single-family low-income housing have also been encountered by nonprofit developers in the inner-city, thereby, increasing the cost of housing.

Homeless Needs

A homeless count conducted by the University of Memphis for HCD on March 27, 1995, identified 1,328 homeless persons within the City. This included 283 persons in homeless families and 44 homeless youths under the age of 18 who were not with families. Local service providers for the homeless and mentally ill estimate that 45-70 percent of the homeless are mentally ill. A large percentage, possibly as high as 65 percent of homeless people, are alcohol or drug addicts. Ten to twenty percent are believed to be victims of domestic violence, and 20 percent are estimated to have AIDS.

Homeless needs identified through the constituency group process and by local service providers included the need for:

Supportive Service and Other Community Needs

The Consolidated Plan describes needs for supportive services identified by constituency group representatives for persons with HIV/AIDS, the mentally ill, mentally disabled, elderly, children and youth, the handicapped and others. These groups indicated the following needs:

AIDS is a growing problem in Memphis, and many of those affected experience serious financial and housing problems as well as homelessness. At-home care with supportive services, transportation, support groups, assistance with child care, and community education and awareness were identified as five critical needs for this area.

The Fair Housing constituency group and a recent study of fair housing commissioned by HCD identified two major problems: a lack of information regarding available housing; and obtaining legal assistance for housing discrimination or other legal problems. Lack of access to decent housing due to low incomes and lower rates of lending to blacks than whites are also problems. Lack of handicapped accessible facilities was found to be a problem in private rental housing.

The Memphis Housing Authority (MHA) constituency group surveys identified the primary need for public housing to be physical improvements. Other needs included more and better services for MHA tenants (child care, transportation, job training, health care, etc.), and the need to provide a safer environment in public housing

Lead Based Paint

Lead based paint is another area of need in terms of housing. An estimated 116,208 housing units in Memphis contain lead based paint. This represents 46 percent of the housing units in the City, and affects primarily low- and very low-income households, most of whom live in older housing units in the inner-city. Of these households, roughly 60 percent are owner-occupied and 40 percent are renter households. Testing by the Memphis and Shelby County Health Department in South Memphis neighborhoods in 1994 found high lead levels in 15 percent of all children. Some of the needs for lead hazard reduction identified by the lead-based paint constituency group included:

NEEDS ASSESSMENT

The needs section (Section II) of the Consolidated Plan examines five major areas of needs: general needs for housing; supportive services; various categories of people who have needs; homeless needs; and lead-based paint hazard needs.

Some important conclusions contained in the Consolidated Plan with regards to housing needs areas follows:

THREE-YEAR STRATEGY

The three-year strategy (Section III) of the Consolidated Plan describes how the resources that are or will be available in the city of Memphis will be used to address the goals and objectives identified for meeting hlopment needs.

Resources

The Consolidated Plan describes Federal, State, local, private for-profit and nonprofit resources available in Memphis. Of particular significance to the Consolidated Plan are the three HUD formula grants for which the plan serves as the application: CDBG, HOME, and ESG programs.

Other Federal resources available in the next three years in the community will be the $7,450,000 remaining in the Peabody Place UDAG (Urban Development Action Grant); $3.5 million HCD is receiving over two years from HUD's Lead-Based Paint Hazard Reduction Program; $3 million United Way of the Greater Mid-South will receive over three years from HUD's Homeownership and Opportunity for People Everywhere (HOPE) 3 program; $3 million for the Enterprise Community designation; HOPWA (Housing Opportunities for Persons with AIDS) funds through the state of Tennessee, to be applied for by nonprofits (last year Memphis received $299,000, applied for and administered by Midtown Mental Health Center and Friends for Life HIV Resources); public housing authority modernization funds; Federal tax credit programs; and other sources of funds the Federal government may offer through entitlement or competition to assist affordable housing and community development needs.

The Tennessee Housing Development Agency (THDA) is the primary State agency that provides housing funds to local governments and nonprofits. Next year the City will receive $895,000 from THDA. THDA has also given grants of $250,000 each to Neighborhood Housing Opportunities (for new construction) and United Way (for housing rehabilitation).

The city of Memphis has budgeted $5.5 million in City funds for HCD in FY95. Other local and nonprofit resources are the Foundation for Homeownership, private developers, nonprofit housing developers including Habitat for Humanity, Shelby County Interfaith and several Community Housing Development Organizations (CHDOs). Several foundations, which have supported housing activities in Memphis, are the Community Foundation of Greater Memphis, the Plough Foundation, the Pew Foundation, the Mott Foundation, and the Ford Foundation.

Goals and Objectives

These Federal, State, local, private, and nonprofit resources will be used to address the goals in five broad program areas: Housing, Community and Public Services, Homelessness, Neighborhood and Community Development, and Economic Development.

ONE-YEAR ACTION PLAN

Fiscal year 1995 for HCD will begin July 1, 1995, and end June 30, 1996. The text of the Consolidated Plan mentions projects and activities which are ongoing and may be funded with prior year funds. The projects in the Listing of Proposed Projects table are only those on which HCD plans to spend FY95 Federal entitlement funds received from HUD.

Again, several other projects are ongoing with other sources of funds (State, local or prior year Federal) so the projects shown on the Listing of Proposed Projects and summarized below are only the projects expected to be funded with FY95 Federal entitlement funds. Projects and funding levels can and do change during the course of the year, so these projects are to be considered proposed only and the monetary figures should be taken as estimates rather than as literal projections.

In FY95 HCD expects to receive the following federal entitlement income: 

SOURCE OF INCOME                        FUNDS EXPECTED TO
                                        BE RECEIVED


CDBG Entitlement Grant                  $ 12,061,000.00

Program Income (From Sale of
Property, Loan Repayments, etc.)           2,400,000.00

HOME Entitlement Grant                     4,562,000.00

Emergency Shelter Grant (ESG) Program        481,000.00
Entitlement


TOTAL FEDERAL ENTITLEMENT INCOME        $ 19,504,000.00


The Listing of Proposed Projects details each individual project to be funded with FY95 funds. To give an overview of the budget for FY95 Federal entitlement funds, HCD's proposed expenditures can be grouped by the following broad categories: Housing Rehabilitation, Acquisition, Relocation, and New Housing Construction, Clearance and Demolition, Downpayment Assistance, Public Facilities and Services, Public Improvements/Infrastructure, Economic Development,and Administration/Planning.

Housing Rehabilitation

More than $6 million is budgeted for rehabilitating single-family housing owned by low- and moderate-income people. An estimated 492 housing units will receive assistance through the Single-Family Homeowner and Minor Home Repair programs. Funds will also be made available to Community Development Organizations (CHDOS) to acquire, build or rehabilitate housing (#26), and HCD will begin a stepped-up lead-based paint abatement program (#33). Other costs associated with housing rehabilitation as well as other programs (i.e. salaries, benefits and other staff costs) are shown in several program delivery categories in the Listing of Proposed Projects.

CATEGORY: HOUSING REHABILITATION 

PROJECT                                 FUNDS                 HOUSING
NUMBER    PROJECT NAME                  BUDGETED              UNITS


24        Single Family Homeowner       $3,859,859.00         192
          Rehabilitation
     
25        Minor Home Repair             $  300,000.00         300

26        CHDO Project Set-Aside        $   684,300.00        unknown
          of HOME entitlement)

33        Lead-Based Paint Grant Match      175,000.00        9

27,28,29,
30,31,32  Program Delivery                1,693,323.00        NA

      
          TOTAL                          $6,712,482.00        501

Acquisition, Relocation, New Housing Construction

About 23.1 percent or $4,500,205 of the HUD funds HCD will receive in FY95 will be used for Acquisition, Relocation and New Housing Construction. Most of these funds will be spent by the Replacement Housing Program to demolish and build replacements for single-family houses that are owned and occupied by low- and moderate-income people and cannot be rehabilitated. Ninety-one (91) single-family houses are expected to be built under this program next year (projects #21 and 22). Other funds will be spent to mow and maintain vacant lots HCD owns (#2 and 3), to help families displaced by HCD projects relocate to new housing (#21), and to acquire vacant land on Edith Avenue for redevelopment (#3 1).

Clearance and Demolition

HCD has budgeted $400,000 for demolition activities. Part ($100,000) of this is for the Abandoned Structures Program, which demolishes unsalvageable, vacant buildings and is expected to demolish 50 houses with these funds (#7). The other $300,000 will be spent by the Replacement Housing Program (#8), to demolish owner-occupied houses that cannot be rehabilitated. This program is expected to demolish and replace 91 houses next year. Funds for relocating displaced persons and for building the new replacement houses have been budgeted under projects #21 and 22.

CATEGORY: CLEARANCE & DEMOLITION 

PROJECT                                 FUNDS               BUILDINGS TO
NUMBER    PROJECT NAME                  BUDGETED            BE DEMOLISHED


7         Abandoned Structures Program  $100,000.00         50
8         Replacement Demolition         3OO,OO0.00         91


          TOTAL                         $400,000.00         141

Downpayment Assistance

HCD has budgeted $103,459 to pay costs for staff helping first-time homebuyers access the Downpayment Assistance program offered by HCD through local banks (#23). More than $2,000,000 is budgeted for downpayment assistance citywide and in targeted areas and more than 600 first-time homebuyers are expected to be assisted in FY95. The $2,000,000 will come from City funds rather than federal funds and so is not shown in the Listing of Proposed Projects.

CATEGORY: DOWN PAYMENT ASSISTANCE

PROJECT #           PROJECT NAME                   FUNDS          
                                                   BUDGETED


23             Downpayment Assistance Program
               Delivery (staff)                    $103,459.00


               TOTAL                               $103,459.00

Public Facilities and Services:

For public facilities and services HCD has budgeted $2,907,107. HUD also places a cap on this category of 15 percent of CDBG funds, and HCD will meet or be under that cap. This category includes several types of projects which generally benefit low-income children and youth, the elderly, physically disabled, the homeless, and other special needs groups.

The public facilities/services category includes the lump sum of $700,000 for Community Service Grants (#14), which will be distributed in the summer or fall of 1995 to nonprofits to carry out projects. Over the last few years recipients of grants under this program have included diverse agencies and projects like construction of MIFA's Estival Place, Sarah Brown YWCA Day Care, Orange Mound Personal Care Home for the elderly, operating funds for the Sickle Cell Council and Friends for Life HIV Resources, and a job placement program for persons with disabilities. Specific projects that get funded with these FY95 funds will be identified in an amended Consolidated Plan later and will be shown on following year Grantee Performance Reports and/or Consolidated Reports.

The public facilities/services category also includes HCD's entire $481,000 ESG program allocation for FY95 (# 18), which will be distributed later in 1995 to nonprofit agencies to carry out activities to benefit homeless persons. Last year's ESG allocation of $358,000 was awarded to 12 nonprofits including Aloysius Home, Case Management, Inc., the Salvation Army, Memphis Furniture Bank, Alpha-Omega Faith Homes (veterans services), Downtown Memphis Ministry, Memphis Day Shelter, Family Services, Midtown Mental Health Center, MIFA, SMACC (Students, Mothers and Concerned Citizens) and the YWCA Wife Abuse Shelters. Specific projects that get ESG funds will also be identified in an amended Consolidated Plan later and will be shown on following year Grantee Performance Reports and/or Consolidated Reports.

CATEGORY: PUBLIC FACILITIES AND SERVICES 

PROJECT                                                       PERSONS (p) OR HOUSEHOLDS (h)
NUMBER    PROJECT NAME                 FUNDS BUDGETED         TO BE SERVED


 6       Thermal Emergency Shelter     $  25,000.00           500
11       Title XX Program Match          142,000.00           180
12       Urban Gardening Program          41,000.00           unknown [13 Perishable]            Food Program                      75,000.00            unknown
14       Community Service Grants        700,000.00           unknown
15       Mayor's Business Internship     300,000.00           400
16       Summer Enrichment Sports        120,000.00           1,500
17       Memphis Furniture Bank           20,000.00           300(h)
18       Emergency Shelter Grant         481,000.00           unknown
         Program allocation (ESG)
19       Better Jobs Strategy            250,000.00           unknown
9        Program Delivery -              436,831.00           NA
         Compliance Dept.
10       Program Delivery - Social       316,276.00           NA
         Services


         TOTAL                       $ 2,907,107.00           2,580(p) 300(h)

Public Improvements

HCD has budgeted $1,115,327 of FY95 funds for public improvements in low- and moderate -income neighborhoods. This includes the $1,000,000 budgeted for the Shelby County Interfaith Nehemiah housing project to be built in southwest Memphis (#5). The $1,000,000 will be used to build streets, sidewalks, utilities and other public infrastructure. The category includes $115,327 for program delivery (#4); these are costs for staff administering these funds and other public improvements projects in low-income neighborhoods carried over from previous years in Neighborhood Strategy Areas.

CATEGORY: PUBLIC IMPROVEMENTS/INFRASTRUCTURE 

PROJECT                                 
NUMBER    PROJECT NAME                                 FUNDS BUDGETED


5         Shelby County Interfaith Nehemiah Housing    $ 1,000,000.00
          Project
4         Program Delivery (staff)                         115,327.00


          TOTAL                                        $ 1,115,327,00

Economic and Business Developments

HCD has budgeted $402,226 in CDBG funds for Economic Development activities. These funds will pay costs for staff helping small business owners prepare their applications for business loans (#34). A small business loan pool has been formed with City funds which is not shown on the Listing of Proposed Projects because it only shows Federal FY95 funds. HCD will also fund staff for a one-stop business assistance center offerING businesses a variety of services (#35).

CATEGORY: ECONOMIC DEVELOPMENT 

PROJECT                                      FUNDS BUDGETED
NUMBER    PROJECT NAME        


  34      E.D. Technical Assistance          $ 155,189.00 
  35      Program Delivery -
          Business Development                 247,03.700


          TOTAL                              $ 402,226.00

Administration/Planning

HCD has budgeted $3,363,194 for Administration and Planning. HUD places a 20 percent cap on administrative and planning spending for the CDBG program and a 10 percent cap on administrative spending on the HOME program. HCD must meet or be under both caps. The Administration and Planning category includes some HCD staff salaries and costs (projects #37 and 41). It also includes operating funds for the Coalition for the Homeless (#38), for CHDOs (5 percent of HOME entitlement funds), fair housing activities (#40) and the Neighborhood Small Grants Program (#39).

CATEGORY: ADMINISTRATION/PLANNING 

PROJECT                                                FUNDS BUDGETED
NUMBER    PROJECT NAME             


38        Coalition for the Homeless                   $   80,000.00

42        Community Housing Development                   228,100.00
          Organizations (CHDOS) operating expenses

40        Fair Housing Dept.                              195,048.00

36        Miscellaneous Acquisition Costs                  30,000.00

39        Neighborhood Small Grants Program                50,000.00

37        Program Administration - CDBG                 2,323,846.00

41        Program Administration - HOME                   456,200.00


          TOTAL                                     $   3,363,194,00

CONCLUSION

In conclusion, the Consolidated Plan presents a coordinated approach to addressing Memphis' housing and community development needs. It is the first to be developed by the city of Memphis under the new guidelines established by HUD. One purpose of this document has been to describe in an integrated fashion, the economic, physical and social needs and resources of our City, so that we can better determine how to utilize our resources to help individuals, families and neighborhoods live together and thrive. Ultimately, the Consolidated Plan should give the city of Memphis, its partners, providers and citizens the opportunity to create a vision for community development, individual self-sufficiency and hope for everyone.

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, and proposed HUD funded projects. A table is included to provide details on these projects.

To comment on Memphis' Consolidated Plan, please contact Robert Lipscomb, Director Memphis Division of Housing and Community Development.
701 North Main Street
Memphis, TN 38107-2311
(901) 576-7301 FAX (901) 576-7444
Return to Tennessee's Consolidated Plans