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


Consolidated Plan Contact

CITIZEN'S SUMMARY

The City of Conroe is located approximately 40 miles north of Houston, Texas, and is the county seat of Montgomery County. Conroe was incorporated in 1885. The primary economic base for the Conroe area was timber, lumber, and limited agriculture until oil was discovered in 1932. The Conroe oil field is the 10th largest to have been discovered in the continental U.S. The field currently produces natural gas and should continue to do so into the 21st century.

Action Plan

The City of Conroe's Consolidated Plan presents a strategic vision for housing and community development in this progressively growing community. It includes a one-year action plan for spending approximately $556,000 of Community Development Block Grant (CDBG) funds. These funds will primarily be spent on housing, public infrastructure, and public services activities.

Citizen Participation

The consolidated planning and submission process was coordinated under the direction of the City Administrator and the county s community development grant consultant, Governmental Service Agency, Inc. The Consolidated Plan for Conroe was developed with input from many agencies, departments, social service organizations and community residents. In addition, two public hearings were held by the city on June 14 and August 8, 1995. Notices of these public hearings were published in the Conroe Courier, the local newspaper. Notices of both public hearings were also posted at the Conroe City Hall, the Conroe Parks and Recreation Building, and at the Oscar Johnson Jr. Community Center. Notice of the availability of the Consolidated Plan was published in the local newspaper and public comments were accepted for 30 days. The Consolidated Plan was adopted by the City Council on August 10, 1995.

COMMUNITY PROFILE

According to the 1990 Census, the City of Conroe had a population of 27,610. This represented an increase of 53 percent over its 1980 population. The racial breakdown of the city's population is white (68.45 percent); Hispanic (17.17 percent); black (13.21 percent); American Indian, Eskimo, Aleut (0.19 percent); Asian and Pacific Islander (0.90 percent); and other (0.08 percent). The 1990 Census found that the median family income in the city was $27,245 and the median household income was $23,634. The Census also found that 53 percent of the households in Conroe had incomes below the poverty level.

This is the second year the city has been designated as an entitlement community and eligible to receive CDBG funds from the U.S. Department of Housing and Urban Development (HUD).

HOUSING AND COMMUNITY DEVELOPMENT NEEDS

Conditions

Conroe has experienced significant growth for several decades as the entire Houston Metropolitan Statistical Area has. From 1980 to 1990 the population increased by 53 percent. Houston-Galveston Area Council projects the city to have a population of 45,000 by the year 2000, which represents a projected increase of 63 percent over its 1990 population.

Housing Needs

As Conroe continues to experience significant growth in its population, the need for new housing will also increase. Based on the projected population growth, Conroe will need an additional 3,244 housing units to accommodate its projected population growth between 1985-2000. This demand for housing will increase the cost of housing which will have a ripple down effect to even the lowest levels of housing. When housing is in demand both the cost of acquisition and rental costs escalate. This will have an adverse impact on the supply of affordable housing in Conroe.

Two critical housing needs are identified in the Consolidated Plan: (1) increasing the affordability of housing; and (2) rehabilitating the existing housing stock. To address affordable housing needs, more affordable housing needs to be constructed, rental assistance for low- and moderate-income persons needs to be provided, and funds are needed for low- and moderate-income persons to maintain and repair their homes. Another high priority need is to provide housing for special need population groups such as the homeless, persons with HIV/AIDS, mentally/physically handicapped, and the elderly. Of the low- and moderate-income households (persons with incomes less than the median area income), large families, minority and elderly households have the greatest need for housing assistance.

Housing Market Conditions

In 1990, Conroe had 11,500 housing units of which 10,016 were occupied. Of the occupied units, 46.9 percent were owner-occupied and 53.1 percent were renter-occupied. The number of rental housing units is significantly higher than many other communities in the area. Approximately one-third of the total housing units in Conroe are two or multifamily units. There were 1,484 vacant houses representing a vacancy rate of 12.9percent. Of the 1,484 vacant housing units, 925 were for rent and 156 for sale. The rental vacancy rate was 13.6 percent and the homeowner vacancy rate was 2.8 percent.

According to the 1990 Census, approximately 37.8 percent of the housing units were constructed prior to 1970 and 2.6 percent were built in 1939 or earlier. It is believed that many of these older homes are deteriorated. The last housing conditions survey conducted in May 1980 found that 8.6 percent of the occupied housing units needed to be rehabilitated or replaced. According to the city's Comprehensive Housing Assistance Strategy (CHAS) prepared in 1994, there were 1,185 substandard units in Conroe, of which 555 were owner-occupied and 630 were rental units.

Affordable Housing Needs

Most of the housing built since 1990 is above the price range of lower-income households. The average median value of owner-occupied homes in 1990 was $59,600. According to the Multiple Listing Service, the current average selling price of homes in Conroe is approximately $80,000. Also according to the Montgomery County Appraisal District, the average home valuation is between $80,000-$100,000. According to the 1990 Census, the median monthly gross rent was $679 for owner-occupied homes with a mortgage and the median gross rent was $369 per month. The average monthly rents in 1995 range from $450-$500 per month. With the projected population increasing by 31.5 percent during the next five years, the demand for housing will drive up the costs of purchasing a home as well as renting. The hardest hit will be low- and moderate-income families, minorities, the elderly and first-time homebuyers.

Homeless Needs

The homeless population is growing throughout the country and is a concern in Conroe due to its proximity with Houston and the State prison in Huntsville, and the continued release of mentally ill persons into society by State hospitals. During the first 6 months of 1995, the Salvation Army provided temporary lodging for 1,987 persons. This translates into an average of 11 homeless persons per night. The Salvation Army can accommodate up to 16 men, 14 women, and has two family rooms containing 6 beds each to house families. The only other agency which provides housing for the homeless is the Fairway Home, which is operated by the Montgomery County Youth Services. The Fairway Home opened in 1984 and has 16 beds which are used for homeless and abandoned adolescents between the ages of 16 through 20. The Fairway housed 33 adolescents in 1994 and currently has a waiting list of 19 adolescents. The Society of St. Vincent dePaul of the Sacred Heart Catholic Church and the Montgomery County Emergency Assistance, Inc., a private, nonprofit agency, provides rental assistance and other services to the homeless when funding is available. Statistics are not currently available on the racial breakdown of the homeless population.

Public and Assisted Housing Needs

There are no public housing units located within the city. However, the Montgomery County Housing Authority administers 150 Section 8 certificates issued for rental assistance of which 95 percent are located in Conroe. Also, another 356 apartment units are assisted Section 8 set-aside units. There are also 72 units in Conroe for the elderly under HUD's Section 202 program. The assisted housing falls far short of what is needed. There are over 400 individuals and families on the Section 8 waiting list, 249 on waiting lists for publicly assisted apartments, and 60 elderly persons on the waiting lists for the Section 202 units.

Barriers to Affordable Housing

The City of Conroe has not adopted any zoning regulations but has adopted a subdivision ordinance which regulates platting and establishes development standards. The subdivision ordinance calls for a minimum lot size of 5,000 square feet and does not require any minimum dwelling sizes. This does not appear to pose any barrier to affordable housing. The city does not charge any impact fee for residential development. The city has adopted construction codes and permit fees. These fees appear to reasonable.

One barrier to affordable housing is the lack of financing resources for construction and mortgages. Also, Farmer's Home Administration loans are not available in the city. There is also a lack of interest by builders and developers to construct lower priced housing. Also, the city does not grant any residential or elderly homestead tax exemptions.

Fair Housing

There is a need to develop a plan to encourage to adoption fair housing policies and to setup administrative procedures to handle discrimination complaints.

Lead-Based Paint

The number of housing units in the city with lead based paint hazards is unknown. However, it does not appear to be a significant problem. Last year, only 42 cases of elevated blood lead levels were reported to the Texas Department of Health.

Community Development Needs

The city has numerous infrastructure and community development problems. The age and condition of the city's utility systems and roads, the lack of adequate drainage, and the lack of public facilities have been identified as major needs. Some of the other community development needs include eliminating gaps in the social services delivery system for at-risk youth and children, the elderly, physically/developmentally handicapped and mentally retarded, recovering alcoholics and drug abusers, and low-income individuals. Other needs include a public transportation system; affordable child care; early educational and development programs; job and vocational training; increased employment opportunities for the unemployed, low-income, and handicapped persons; improved case management for all special need population groups; and increased emergency assistance services.

HOUSING AND COMMUNITY DEVELOPMENT STRATEGY

Housing and Community Development Objectives and Priorities

The greatest concern facing the city is its ability to meet the needs of its growing population. By the year 2000, the city is expected to grow approximately 63 percent over its 1990 Census population. This growth will place burdens on every segment of the city. The current housing market, already a seller's market, will continue to escalate as the demand for housing increases. This will have a detrimental affect on the low- and moderate-income population as their housing costs will also continue to rise. The current infrastructure systems in many areas is inadequate to serve current needs--much less provide for future needs. Social service organizations are already experiencing severe funding shortages and in response are having to cut back on services. Yet, the need for social services continues to escalate as more persons become homeless, as baby boomers become senior citizens, and the employed become unemployed.

Housing objectives focus on the supply and availability of affordable housing for low- and moderate-income persons and the other special need population groups. The city intends to properly plan for the best strategy to utilize its limited CDBG resources and to identify ways to leverage these funds with other housing programs and by working with nonprofit organizations and the private sector. The community development objectives are to revitalize residential and commercial areas by upgrading public infrastructure systems and to eliminate blighting influences. Targeted areas will include those areas within the city that have high concentrations of low- and moderate-income persons. The city also intends to work with existing social service organizations to improve and to address gaps in the delivery of social services to the needy. Some of these objectives include increasing the supply of transitional and supportive housing for special need population groups, e.g., the homeless, handicapped, mentally retarded, recovering alcoholics and drug abusers, elderly, etc., establishing a continuum of care and case management, and provide job training and educations programs.

Housing Priorities

It was evident from the housing information collected as part of the consolidated planning process that affordable housing and more housing assistance is needed in the city. This was particularly evident from the waiting lists being maintained. Also, as housing continues to age, more houses will continue to deteriorate and eventually may be lost from the existing housing stock. These homes typically are more affordable and are likely to be occupied by low- and moderate-income persons. The city recognizes the need to increase the supply of affordable housing for low- and moderate-income persons and to revitalize residential areas which have become blighted.

The city will continue to leverage the CDBG funds for housing activities such as accessing the HOME Investment Partnership program and working with nonprofit housing organizations, such as Habitat for Humanity, to assist it in this effort. The city also recognizes that housing problems exist in special need population groups and will work with social service agencies to provide supportive permanent and transitional housing for these groups. These special need population groups include the homeless, the elderly, the physically and mentally handicapped, persons with HIV/AIDS, recovering alcoholics and drug abusers, etc. Supportive services will be strongly encouraged in order to establish a continuum of care for these individuals.

Nonhousing Community Development Priorities

The city has a great need to address public facilities and infrastructure needs. The highest priority public infrastructure needs include water, sanitary sewer, drainage, and road and street needs. Other needs include public service programs and services which benefit the special need population groups. Also needed is more affordable child care, neighborhood, park and recreational, and health care facilities. Job training and educational programs are also a priority.

Anti-Poverty Strategy

Coordination and communication are the key elements of the city's strategy to fight poverty. To combat poverty, it will require the efforts of government, housing and social service providers, and the private sector. The city recognizes the need to support existing and new anti-poverty programs aimed at reducing and eliminating poverty. Investing in infrastructure improvements and public facilities is considered an integral part of this effort. Job training and affordable child care for working families and single parents are necessities. A public transportation network is also needed to move families from their home and place of work and to access medical services and other public services such as Texas Employment Commission (TEXAS EMPLOYMENT COMMISSION (TEC)), job training, programs, child care, etc. The city will also encourage economic development programs and services which enhance job opportunities for city residents, particularly low-income persons.

Housing and Community Development Resources

There are several resources available to assist the city in addressing housing and community development needs. Although the city intends to use CDBG funding to address housing and community development needs, it will also attempt to leverage these funds with other State and federal resources such as the HOME Investment Partnership program. The city also desires that nonprofit organizations take a more proactive role in meeting community needs. For this purpose, the city has allocated CDBG funds to enhance social service programs. The private sector will be encouraged to work with the city and nonprofit organizations to help provide employment and job training opportunities for low-income persons, the unemployed, at-risk youth, the homeless, the handicapped, and the retarded. Private lending institutions will be encouraged to work with housing providers and nonprofit organizations in order to provide financing for affordable housing programs and initiatives.

Coordination of Strategic Plan

The City of Conroe will be responsible for the Consolidated Plan activities, but a variety of nonprofit organizations will also be involved in administering components of the plan. For example, several nonprofit organizations will administer and/or implement public service programs selected by the city which will enhance housing and social services.

The city feels that this Consolidated Plan is the beginning of an opportunity to develop a network of government agencies, nonprofit organizations and the private sector. This network can focus on addressing gaps in the delivery of services and can undertake public infrastructure projects and housing programs which will help combat blight and encourage neighborhood revitalization. The city will create an advisory board which will assist the City Council in prioritizing its many needs and to make recommendations regarding the use of CDBG funds. The advisory board will be composed of city officials, representatives from housing and social service organizations, and citizens.

ONE-YEAR ACTION PLAN

Description of Key Projects

The City of Conroe's one-year action plan outlines the proposed use of approximately $556,000 in CDBG funds. The funds will be spent on the following activities:

Locations

Most of the activities are located in areas of the city where most of the participating jurisdictions are located and where the highest concentrations of low-income residents reside.

Housing Goals

The housing goals for the city is to assist at least five families each year in the rehabilitation and/or acquisition of their home. The city will also continue to submit an application each year under the HOME Investment Partnership program in order to leverage CDBG funds.

Maps

MAP 1 shows points of interest in the City of Conroe.

MAP 2 shows points of interest with low- and moderate-income areas shaded.

MAP 3 shows areas of minority concentration with low- and moderate-income areas outlined.

MAP 4 shows unemployment data (1990) by block group, with low- and moderate-income areas outlined.

MAP 5 shows selected CDBG projects to be funded during its 1995 program year, with unemployment data shaded by block group and low- and moderate-income areas outlined.

For additional information, contact Craig Lonon, City Manager of Conroe, at (409) 539-4431.
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