Houston is located in SE Texas and is approximately three hundred and forty eight miles from Mexico. Compared to other major U.S. cities, Houston's housing supply is generally regarded as abundant, diverse, newer and more affordable. An important City objective is to ensure an adequate housing supply for all its citizens, including low-income families, the homeless, elderly and the disabled and when needed supportive services. The City will also continue to promote economic development. The City continues its concerted effort to leverage private and nonfederal funds in its use of CDBG and HOME funds for affordable housing projects.
The City's plan for investment of funds is to support housing, public improvements and infrastructure, and economic development activities. It cites its available Community Development Block Grant (CDBG) funding for 1995 as $37.5 million and program income as $1.5 million. In addition, the City will use federal funds received under the Home Investment Partnerships (HOME), Housing Opportunities for Persons with AIDS (HOPWA) and Emergency Shelter Grants Programs in support of its plan. The City was also designated an Enhanced Enterprise Community and received $25 million in federal funds.
The City held two public hearings on its Consolidated Plan which focused on the plan's development and on the final draft of the plan. Throughout the process, the public was encouraged to submit comments during the needs assessment period, the public hearings and the City's 30-day review and comment period. In addition, all meetings of the City's Advisory Task Force and the ensuing subcommittees were open to the public.
The City assembled the Task Force, consisting of public and private sector representatives, to assist in assessing community needs, establish priorities and develop strategies. Task Force subcommittees were asked to examine certain issues and concerns, including those of citizens, neighborhood groups and nonprofits and businesses, and to report their findings to City. The subcommittees also suggested ways of enhancing the delivery of affordable housing and services to the City's low and moderate income populations.
Houston's population is 1.6 million people, with 18% foreign born and 30% born outside of the State of Texas. The 1990 Census Data shows that the median household income and the median family income in Houston was $26,262 and $30,248, respectively. While 51% of households had incomes in a middle range of $15,000 to $49,999, almost 28% had incomes below $15,000. Most racial/ethnic groups were in the middle income range; however, the percentages of Black and Hispanic households with incomes below $15,000 were greater than the percentage for White households.
Approximately, 45% of Houston's housing market is owner-occupied and the remaining 55% is renter-occupied. Of the total number of homeowners, 60% are White, 14% Hispanic, 23% Black and 3% Asian. Of the total number of renter households, 44% are White, 24% Hispanic, 27% Black and 4% Asian.
Conditions
Population shifts, influenced by economic fluctuations in the 1970s had a tremendous impact on the availability of affordable housing. The boom stimulated demand for housing and the City's housing supply increased. However, with the economic downturn and loss of jobs in the l980s, large segments of the population left the city in search of employment.
The housing glut not only led to lower housing costs, but facilitated the transition of housing from a more affluent population to those of lesser income. The negative effects of this transition led to disinvestment in the inner-city, abandonment and ultimately the demolition of 15,754 housing units between l980 through 1990. Most of the city's growth is a result of housing construction outside the inner-city neighborhoods.
Aside from the City's view that the need for affordable housing continues to increase, Houston also documents the need for affordable day care, youth activities to combat juvenile delinquency and the need to support and sustain public improvement activities throughout City neighborhoods, particularly those in the inner-city areas. The City of Houston has 457 neighborhoods, many of which are in need of community facilities, such as fire stations, libraries, parks and multi-service centers.
Since 1991, Houston's economy has been flat to slightly negative with the result that many Houston residents continue to suffer economic hardship. According to 1990 Census data, one in every ten city residents was unemployed, and one in five lived in poverty. Houston was recently designated as a Federal Enhanced Enterprise Community, receiving $3 million in Social Service Block Grant funds and $22 million in HUD Economic Development Initiative funding. The City plans to leverage this $25 million with private investment in its distressed, inner-city neighborhoods.
In 1990, the City's total number of housing units was 726,938. There is a need to address housing deficiencies and overcrowding. Approximately 15% of the City's occupied housing units have moderate or severe physical deficiencies. Over half of the units with physical deficiencies are occupied by minorities. Of the 72,299 units considered to be overcrowded, 16,778 are owner-occupied and 55,521 are renter-occupied. This condition is most severe for low income Hispanic households.
Housing cost burden is defined as a household paying more than 30% of their income for housing and severe cost burden is defined as a household paying 50% or more of its income on housing. The City's lower income households spent a larger percentage of their income for housing with cost burdens consuming from 30% to 50% or more of their income. The cost of housing has had the most impact on households with incomes less than $10,000.
Of the City's total of 726,938 housing units, 15.1% were vacant. Given the limited job growth in the area, even the modest number of new construction units may lower occupancies and limit rent increases over a twelve month period. First-time homeowners and move-up buyers dominate the current single family housing market, resulting in 35,886 new home sales in 1994 almost even with 1993 levels. The median home sales price is $79,500 representing a slight decrease of 2% from 1993.
Refinancing and rehabilitation of existing projects continues to be the dominate activity in the apartment market. The market conditions for apartment housing have remained stagnant over the last few years. Absorption was modest and rental increases slowed to 3% in 1994.
In 1990, approximately 17% of all Houston families and 21% of all Houston individuals lived in poverty, which represents an increase of a 10% and 13% respectively over the 1980 data.
A look at affordable housing in Houston shows that 79% of households with mortgages and 65% of all households spent less than 30% of their income on housing, the benchmark for affordability. However, for a large group of low-income residents, housing is definitely less affordable and is particularly a problem for low income minorities and persons 65 and older. The problem is even more severe for 54% of large family renters who pay over 50% of their income for housing.
In 1995, Houston's Coalition for the Homeless conducted a survey of literally homeless persons residing in emergency shelters and motels and reported a head count of 2,332, representing a 22% increase over the 1994 figure. Houston's homeless population is not a homogeneous group; rather, it consists of families, the chronically homeless with special needs, the elderly, runaway youth and battered women. Thus, the homeless needs, rehabilitation demands and appropriate support services vary widely among each segment of the homeless population.
Families are the highest recipients of assistance from governmental groups and service providers. Since this group has the lowest participation in illicit activities and drug abuse, its rehabilitation demands mainly consist of the need for counseling to deal with the causes of their homelessness and with the challenge of taking care of their children. Families transitional stage requirements include temporary and low cost housing and vocational training skills.
According to the Coalition for the Homeless of Houston/Harris County, the chronically homeless with special needs were older males who have been homeless for an average of 3 years, have a general apathy toward employment and have no expectations of becoming self-sufficient. During a twelve month period, the Coalition received 700 telephone calls, 112 of them were for assistance programs. Of the 112, over 50% were for rental assistance, 16% for utility assistance and 19% for food and 13% for other related assistance.
Other City groups requiring special assistance are the elderly, particularly the frail elderly. There are at least 56,120 elderly persons over age sixty-five with functional limitations, who are in need of supportive housing with a planned service component. The proportion of older people with functional limitations is higher among women than men, and higher still among Blacks than Whites and Hispanics.
As of 1994, the cumulative AIDS/HIV caseload was approximately 11,500, a 12% increase in nine months. Monthly increases in Houston's caseload, both averaged between 1.2% for children under 5 years and 3% for teenagers.
The Housing Authority for the City of Houston owns, operates and maintains 15 developments and 366 scattered site homes throughout the City, representing a total inventory of 4,443 units. The current waiting list for low rent public housing is 9,512. As of January 1995, 1,040 public housing units were vacant, 978 of them await the implementation of HUD's Urban Revitalization Demonstration (URD) Program. Houston's URD award is $36 million. Through its URD program, the Housing Authority proposes to maintain 150 existing units, and construct new units on site and in surrounding neighborhoods. The 828 units scheduled to be demolished will be replaced on a one-to-one basis.
Approximately 50% of the Authority's total housing stock was constructed in the 1930's and 40's. In order to preserve these units, there is a need for constant maintenance and regular renovation of these units.
Because of single digit interest rates, a first-time homebuyer can now purchase affordable housing and in many cases mortgage payments are comparable to rental rates. However, for many prospective first-time homeowners, downpayments can be an obstacle. To overcome some obstacles to housing affordability, the City's Homebuyers Assistance Program commits resources to assist low and moderate income persons with downpayment and closing cost assistance.
Beyond the issue of homeownership, new construction and renovation of apartments have become more difficult. Credit is tight for apartment construction and renovation, making project funding extremely competitive. Lending institutions are requiring as much as 40% in cash equity for apartment financing and up-front costs can pose a financial hardship on a potential developer or property owner. In response to these circumstances, the City provides gap financing to owners and developers for acquisition and rehabilitation of multi- family properties for low and moderate income occupancy. Other barriers, which are of particular concern, are building codes, tax policies affecting land use controls, fees and charges, growth limits and policies that affect the return on residential investment.
The City's Office of Fair Housing (FHO) was re-established in 1989 to implement the Fair Housing Amendment Act of 1988. It is responsible for monitoring and reporting discriminatory housing patterns and practices to the Regional HUD office. The FHO assists Houston residents discriminated against in rental and housing purchase situation. In 1994, FHO assisted over 800 complainants, and in the first quarter of 1995, it assisted 300 complainants.
In Fiscal Year 1993, the City received funding from the Centers for Disease Control and Prevention (CDC) for a lead-based paint screening project for children between the ages of 6 months to 6 years. Approximately 20,000 children have been screened. Of that number, approximately 10% had blood-lead levels equal to or above the CDC action level. This project will be renewed for five years.
It is believed that the majority of lead poisonings are caused by lead-based paint contamination. The number of apartments with lead hazard was 15% of the total sample of 359 units inspected in 1994. This result points to the need to continue testing for lead contamination in low and moderate income housing units.
The City needs to sustain the economic growth of the Houston economy, particularly by capitalizing on its position as an international business community. In the international development field, Houston needs to provide workforce education and improve job skills, and provide more job opportunities for its minority population.
Houston documents the need to improve and expand its public neighborhood facilities and undertake more public and infrastructure activities. Juvenile Delinquency has become a critical issue in Houston and there needs to be projects and services that address this issue. The City also cites the need for a greater emphasis on historic preservation, child care and elderly services.
The City utilizes a diverse network of public and private institutions that cooperate to provide housing and supportive services to low and moderate-income citizens. In addition, the City coordinates its housing and community development efforts with 21 different federal, state and local agencies as well as with nonprofit organizations.
The City's first priority is to provide housing and supportive services to its low income population, including renters and homeowners. Its strategy is to meet the human service needs of its housing clients, particularly its homeless, and to provide human services in support of its housing assistance. The City's other two priorities are public improvements/infrastructures in neighborhoods designated under its Neighborhoods To Standard Program and economic development focusing on its Enhanced Enterprise Community.
City plans to use its CDBG, HOME and remaining Rental Rehabilitation Program funds to leverage private and non-federal funds for affordable housing rental projects, specifically through rental assistance, acquisition and rehabilitation of rental properties. The City will market its programs in a manner that stresses the importance of private sector involvement. Only qualified rental projects which maximize private sector participation will be selected.
Houston's housing priorities include the acquisition, rehabilitation and new construction of housing units for its elderly low-income residents. Such housing will be linked to the provision of supportive services through such programs as Section 202 Supportive Housing for the Elderly and HOPE for Elderly Independence. Again, the City will select those projects that demonstrate an effective use of Federal funds and represent the best effort at leveraging private and nonfederal resources.
The City's endeavors in the area of homeownership include the rehabilitation of owner- occupied housing units. It plans to use CDBG and HOME funds and to leverage private sector resources for this activity and will work with programs provided by private nonprofit organizations to rehabilitate existing properties. Through acquisition, rehabilitation and construction of housing units, Houston will also assist the first-time low income homebuyer. The City will also make available to these first-time home purchasers direct homebuyers assistance, such as mortgage assistance, downpayment and closing cost assistance and financial counseling.
Houston's housing priorities also include the homeless and non-homeless with special needs. The City will continue to provide housing to its homeless population in the form of transitional, emergency and permanent housing, as well as provide a wide range of human service activities.
The City's priority is to undertake public improvements and infrastructure in low-income eligible neighborhoods where at least fifty-one of the residents are of moderate, low or extremely low income. Activities to be undertaken are street overlays, construction, renovation and acquisition of neighborhood facilities, and maintenance and upgrading of equipment at city-owned parks. The second City priority is to promote economic development, particularly in its Enhanced Enterprise Community (EEC) area. EEC efforts include housing, economic and human development activities.
Other high priority projects the City will undertake are:
The City has three major resources through which to reduce the level of poverty, increase job opportunities and upgrade the quality of housing while revitalizing low and moderate income neighborhoods. The first resource is CDBG which for 30% of the City's current year funds is devoted to housing improvement activities. The second program is HOME which will be utilized to expand the level of homeownership for low income individuals through a combination of housing rehabilitation and new construction. The third resource is the City's General Funds which will be used to help support the Neighborhoods To Standard Program. This program is the vehicle for community revitalization in targeted neighborhoods.
In addition to the CDBG, HOME, HOPWA, ESG and EEC funds, the City will commit funds received from any of the 23 other federal housing programs. Moreover, the City has a substantial number of State, local and private resources it will use in carrying out its plan.
For FY 1995, Houston received $37.5 million in CDBG funds, $10,165,000 in HOME funds; $4,678,000 in HOPWA funds, and $1,274,000 in ESG funds. These funds will be used on a wide range of housing and community development activities, including the following examples:
Projects have been designated as serving 41 citywide community development areas or anyone of the 42 neighborhoods targeted under the Neighborhoods To Standard Program.
The City's Department of Housing and Community Development (DHCD) is the lead agency. DHCD will work in cooperation with the City's Housing Authority, Departments of Planning and Development, Public Works and Engineering, METRO, Community-based Organizations, and citizens in implementing the City of Houston's Consolidated Plan.
The City will provide 1,429 units of affordable housing consisting of 275 rehabilitated or replaced units; 240 single family units planned for repair through the City's Emergency HOME program; 195 families designated for relocation assistance; 61 households will receive direct homeownership assistance; 450 rental units slated for rehabilitation at a cost of $8,000 per unit and the construction of 208 single-family homes. The City will also undertake the development of group housing facilities for the homeless and the construction of single-room occupancy dwellings for persons with HIV/AIDs.
The following maps are provided for each of Montgomery County, Fort Bend County, and Harris County. They comprise the areas covered by the City of Houston's Consolidated Plan.
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.
Marvalette C. Fentress
PH: (713) 865-4263.