The City of McAllen is located in the Rio Grande Valley of South Texas, only minutes from Mexico. It offers the excitement of cosmopolitan living while surrounded by the rich heritage of old Mexican tradition. It is one of the two fastest growing metro markets in the State and it is the fastest growing area in the Rio Grande Valley.
The City of McAllen Consolidated Plan presents a strategic vision for housing and community development. It includes a One-Year Action Plan for spending approximately $3,435,000 million of Community Development Block Grant (CDBG), Emergency Shelter Grant (ESG), Investment Partnerships (HOME) funds and program income in 1995. These funds will primarily be spent on housing and neighborhood livability activities.
The process of creating this document included public meetings, meetings
with nonprofit and for-profit groups and individuals that wanted to discuss
community needs. In obtaining direct input from the public, several initiatives
were taken. A questionnaire in the form of an application for funding was
provided to all agencies. The purpose of the questionnaire was to obtain
information on community needs. The Community Development Council, an advisory
committee appointed by the City Commission conducted three public hearings at
locations convenient to residents for the purpose of making it easy to
participate in the process of identifying needs. The draft copy of the CPS was
made available to the public for comment for a period of 30 days, beginning June
8, 1995 and ending July 7, 1995. To encourage citizen participation, the City
published a notice June 8, 1995 regarding the comment period and announced the
availability of the draft document at the City Commission meeting May 31, 1995.
In the late 1980's and early 1990's the City of McAllen made bold advances in economic development amidst unprecedented growth in retail trade and industrial development. Located in the Rio Grande Valley of South Texas, only minutes from Mexico, McAllen is the center of a 250 mile retail market area containing more than ten million people.
McAllen has a commission-manager form of government in which the mayor and four commissioners, all of whom are elected at-large, serve as the legislative body. These officials are elected for staggered four year terms.
The 1990 population for the City of McAllen according to the U.S. Census was 84,021. The population characteristics are as follows: the Hispanic population represents 77%, the White population 22% and the remaining minorities (Black, Asian, Indian, etc) represents less than 1% of the population.
The 1995 median family income for these persons is $22,000.
Once an economy dependent on agriculture and retail trade, McAllen has diversified its economy through an aggressive and successful industrial development and tourism program. The Rio Grande Valley has the dubious notoriety of having chronic high unemployment and extremely large numbers of families living in poverty. The close proximity to Mexico brings a constant stream of trade from which the Valley benefits; yet, it also brings a constant stream of immigrants from Central and South America. This problem is compounded by the low educational attainment and minimal work skills possessed by this segment of our population.
Market trends indicate that there is a housing shortage. This need is based on the numerical difference between the number of families or persons in need of housing and the number of homes available. Only about thirty percent of the families having incomes below 90 percent of the median income can, with federal assistance afford a single family detached home.
Market trends indicate that there is a housing shortage. This need is based on the numerical difference between the number of families or persons in need of housing and number of homes available. Only about thirty percent of the families having incomes below 90 percent of the median income can, with federal assistance, afford a single family detached home. The remaining seventy percent of families must strive to obtain housing from the traditional public housing and rent assistance programs. In the implementation of housing assistance programs, care must be taken to include support services. These services must be explained in common terms, the additional financial responsibilities require by home-ownership must also be included.
Extremely low, very low and low income households earn below 50 percent of the median family income. Households in this category are more likely to be headed by an elderly person on a fixed income, or a single parent. Also, these families are more likely to include persons with disabilities.
Although homeownership is a goal of most families, it has become increasingly difficult for a family living on a minimum wage income to achieve homeownership. The major problem is that low income families have jobs which are seasonal or short term and they are unable to make long term commitments. A majority of households 70% cannot afford a monthly payment for housing without any type of housing assistance, therefore, homeownership will remain outside the means of these families.
There is no accurate count of the number or characteristics (i.e. race, ethnicity, special needs) of homeless in McAllen. The homeless both sheltered and unsheltered, are in need of permanent, affordable and decent housing, and may need other supplemental services such as food, subsidized child care, housing search assistance and employment training. Additional regional shelter and transitional housing with support services may be necessary to meet the expected growing numbers of homeless families and individuals.
The McAllen Housing Authority owns and operates 199 units, these units are located in two projects including 150 units at the Retama Village and 40 units in Vine Terrace. In addition, the McHA provides 665 Section 8 Certificates and 209 Vouchers. McHA continuously repairs and remodels the units to keep them in standard condition and does not anticipate any losses to the public housing inventory for any reason.
Between May 1994 and May of 1995, records indicate that a total of 1,133 applicants for housing assistance were submitted. It is anticipated that a greater number of applications would be submitted if additional units or vouchers were available.
Service providers for special needs populations indicated the following needs, in addition to affordable housing:
Persons with mental, physical, or developmental disabilities need accessible housing, homeownership opportunities, and assisted living alternatives such as group homes or shared housing.
Persons with AIDS need temporary and emergency housing, nursing home care, assistance with activities of daily living, counseling, case management, and transportation.
The housing constraints that affect affordable housing in McAllen are primarily economic. Rising costs within the construction industry, the cost and availability of financing and the high demand for developed land have combined to constrain housing production, particularly for low and moderate-income person. The net result is significantly higher costs for housing in a period when incomes are not rising.
McAllen adheres to its City Fair Housing Ordinance, as well as to all applicable Federal FHEO laws and guidelines. There are no current court orders, consent decrees, or HUD-imposed sanctions that affect the provision of fair housing remedies.
McAllen has 9,794 owner units and 6,270 rental units built before 1980. Not all housing build before 1979 contain lead paint. According to the McAllen Health Department, here have been no cases related to exposure to lead paint in the last three years.
Currently, all federal assisted housing projects specifically include a provision against the use of lead based paints. Also, in housing rehabilitation projects of units constructed prior to 1973, there is a requirement for testing of chewable surfaces and surfaces that are cracking, scaling, peeling, chipping or that are loose.
The City of McAllen has been experiencing economic growth. This new growth requires skilled labor, this is the reason that the City purchased a 40 acre site, constructed a building and create a branch of Texas State Technical Institute. The same campus is now South Texas Community College. Its purpose is to provide the skilled training need for local residents to obtain the jobs being created by the economic growth that is occurring. Ninety-two percent of the student body qualifies and is receiving some kind of federal assistance. Therefore it is the low-income person that are attending STCC and they are graduating into new and better jobs. This project is jointly funded by EDA and HUD It is one of those projects that keeps increasing in value to the community.
The City of McAllen, as lead jurisdiction for the CPS process, has strived
to increase the strength, scope and effectiveness of the network partnerships
developed as a result of this process. Working closely with the Housing
Authority, serve providers, employers, lenders and the lower income populations,
the City has served as a resource for community-based initiatives.
Low vacancy rates also suggest the need for construction of affordable owner-occupied homes and rental properties. However, new construction in McAllen is expensive. Housing priorities and strategies will be to provide affordable housing. Community development objects are to provide economic development opportunities for low- and moderate-income citizens.
Priorities for affordable housing include increasing the supply of affordable housing and reducing housing cost burdens for low-income households, improving the living environments of lower income residents, assisting public housing residents to become fore self-sufficient, increasing housing choice for low-income and minority residents, and addressing the unique needs of large families, the elderly, and persons with disabilities.
Priorities for non-housing community development is to expand economic opportunity principally for low and moderate income persons. The primary means of accomplishing this objects would be to extend and strengthen partnership among all levels of government and the private sector.
The City of McAllen's Community Development Block Grant program is instrumental in implementing the Anti-Poverty Plan. CDBG funds will be used for a variety of activities, including improving City infrastructure and to rehabilitate affordable housing for lower-income households. Additionally, these funds will be used for economic development that creates community-based businesses and assist businesses that provide services needed by low and moderate-income residents. The thrust of the McAllen Anti-Poverty Plan is the creation of long- term full-time jobs.
The primary Federal resources include CDBG, HOME, Section 8, public housing, Emergency Shelter Grants, and Economic Development Grants. Private programs include local lending institutions', affordable housing programs and a wide range of nonprofit initiatives.
The City of McAllen is responsible for implementation of the Consolidated Plan activities, but a variety of public and private organizations are involved in carrying out plan components.
Although there is a well developed network of government agencies,
nonprofits, and private organizations to carry out the plan there are also gaps
in the delivery of services. Coordination of services for the non-homeless
special needs populations need strengthening. Furthermore, efforts to eliminate
barriers to homeownership will also require increased attention.
The City of McAllen One-Year Action Plan outlines the proposed use of approximately $3,435,000 million in CDBG, HOME, and Emergency Shelter Grants funds, in addition to program income. These funds will be spent on an array of activities, including:
The majority of the projects in the One-Year Plan are dedicated to targeted low-income residential areas. Funds allocated to these areas are spent mostly on public improvements as approved by the City Commission. In addition, significant HOME funds are allocated to a nonprofit organization and a nonprofit Community Housing Development Corporation (CHDO).
The City of McAllen through its housing providers plan to assist approximately 50 families through rehabilitation and new construction.
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 neighborhood streets and proposed HUD funded projects; in addition, a table depicts information about the project(s).
MAP 6 depicts neighborhood streets and proposed HUD funded projects. Additional information about the project(s) are depicted in the table accompanying MAP 5.
