The Commonwealth's Community Development Block Grant (CDBG) Program awards funds on a competitive basis. This program was supported by a $24,017,000. allocation in FY95. Housing program allocations were $11,524,000 in HOME , $1,439 in Emergency Shelter Grant (ESG) and $1,149,000 in Housing Opportunities for Persons With AIDS (HOPWA) funds.
For FY95, The Department of Housing and Community Development implemented a Regional Consortia Initiative (RCI) in fourteen geographic regions of the Commonwealth. RCI provides a wide range of resources to advance a comprehensive approach to affordable housing and homeownership opportunities, economic development and community revitalization. The program focuses on expanding citizen involvement at the local level by strengthening and building partnerships through an inclusion of a broad range of participants, such as low-income families, market players, nonprofits and public entities. The Commonwealth's goal is to provide more local control over project selection and allocation of resources to generate a more sensitive response to local needs and issues. The RCI concept is limited to the distribution and administration of the Commonwealth's HOME funds.
The State's policy is to promote the revitalization of Virginia's inner cities and rural communities and is based on the principle of self-reliance and self-sufficiency, as well as individual and family responsibility. The RCI provides the foundation of support for this revitalization effort through its four primary objectives.
These objectives involve the creating of regional consortia; the forging of new partnerships among the various market forces, nonprofit groups and public entities to expand housing and economic opportunities; the shifting of administration of the Community Housing Development Organization (CHDO) Loan Fund Programs from the state to the regional level and the soliciting of RCI involvement in helping to accomplish the State's key priority initiatives.
From a non-housing community development perspective, the State has
conducted public hearings and convened focus groups to gain citizen and
interest-group input on identifying needs, developing strategic planning and
establishing a priority setting process.
Approximately 6.2 million people reside in Virginia's 95 counties and 41 cities. This represents a 15.7% increase in population since the 1980 census. Whites account for 79% of the population, blacks for 17% and Hispanic/Asians for 2%.
Virginia is a State that includes distinct rural, urban, suburban and small metropolitan areas. The disparity in incomes between these areas and between different geographical regions in the state is a result of growth patterns, where primarily wealthier people are attracted to suburban communities. This growth has changed much of the rural environment to residential, commercial and industrial usage.
Responsibility for implementing and enforcing public policies in the area of housing is shared by State and local governments. In some regulatory areas, the State has granted local governments extensive discretionary powers. While in others, the State has developed uniform regulations specifically to reduce economic drag associated with duplication and overlapping or non-uniform regulatory systems.
Aid to local governments represented nearly one-half ($5.4 billion in 1991) of the State's general fund appropriations for schools, libraries, infrastructure, corrections, health care and administrative funds.
Virginia is a large State consisting of distinct rural, urban and smaller metropolitan areas. Older urban areas (central cities) typically have the greatest problems with concentrated levels of poverty, disinvestment and middle class flight. Lower income levels in central cities (the median income in central cities in 1989 was 73.6% of the earned in adjacent suburbs) means that local governments have fewer resources to assist their increasingly poor and disadvantaged populations. Rural areas face difficulties related to transportation, infrastructure, jobs, substandard housing and isolated poverty conditions.
Population growth and preservation of environmental quality are the key issues affecting all of these areas, especially urban areas. Virginia's population has increased by nearly 16% since 1980, with the greatest percentage change occurring in urban areas (20.4%) and the lowest in rural areas, which grew by less than 1%. A significant number of localities lost population across the decade.
Major industries in Virginia include manufacturing, exports, high
technology, location of corporate headquarters, employment by the federal
government, travel/tourism, agriculture and fisheries. In the past, Virginia
had experienced economic recession and slowdowns to a lesser degree than the
nation as a whole. In part, this was due to the State's diverse economy.
However, the recent downsizing trend in defense spending has taken its toll on
the State's economy.
In its Consolidated Plan, the State of Virginia identifies as its 1994-1997 housing agenda, six priorities which address the needs of low and very low-income renters, of the homeless and persons who are in need of supportive services. The plan's priorities also address the need to expand homeownership opportunities, particularly for first-time homebuyers and the capacity of State housing providers to forge new partnerships among housing advocates.
Ninety-two percent of Virginia's 2.5 million housing units are occupied with 66% of them occupied by homeowners and 34% by renters. Two percent of all units lack plumbing and 14% are over fifty years old.
In 1990, the statewide ownership rate was 66.3%, slightly up the 1980 figure of 65.6%. Although individual demographics and economic variables have had both positive and negative effects on the homeownership rate, by and large, the combination of these variables has created a positive impact.
The State's mission statement reflects Virginia's commitment to promote revitalization of its inner cities and rural communities and is based on core principles that include private property ownership. In meeting the housing needs of its cities and rural communities, the State has assigned its Department of Housing and Community Development with the role of advancing market-oriented initiatives that expand homeownership. The State's priority initiatives of housing and community development programs build upon and help to fulfill established housing goals that help its citizens achieve the dream of homeownership and stimulate affordable housing through regulatory barrier removal.
According to a survey conducted by the Virginia Coalition for Homeless, 53,624 persons were sheltered in Virginia in the last calendar year. Of this number, 45% were in families, 55% were single adults and 27% were children under the age of seventeen.
The primary reason for homelessness was low wages/benefits. Of the homeless in low waged jobs, 35% were working full time and 13% were working part time when entering a shelter. Other reasons for homelessness were eviction, unemployment, family violence and substance abuse.
One of the State's priorities is to provide safe and sanitary emergency shelter to meet immediate housing needs, to provide transitional housing for long-term support and to provide permanent housing options, such as single-room occupancy (SRO) facilities and rental assistance. Other State needs include the provision of supportive services, the promotion of homeless prevention activities and the coordination of services and programs for homeless persons.
There is a need to expand rental housing opportunities for low-income people by increasing the stock of affordable and decent rental housing and by promoting activities that result in economic self-sufficiency among tenants. The State also needs to expand permanent housing opportunities, such as SRO units, and to expand the housing available for populations requiring some level of supportive services. To help meet these needs, the State, through its Virginia Housing Development Agency (VHDA), provides Section 8 Certificates and Vouchers. The VHDA also maintains direct administrative relationships with over 70 local jurisdictions and Public Housing Authorities throughout the State. The VHDA also implements the Virginia Housing Fund, bond financing and other housing programs through private mortgage lenders.
Additionally, the State will take three actions to strengthen its role public housing resident initiatives. It will study the establishment of Individual Development Accounts, study the development of tenant management groups and explore methods for mortgage financing targeted to tenants of public housing.
In meeting its strategy to identify and reduce legislative and regulatory barriers to affordable housing, the State will implement key findings of the Secretary's Task Force on Regulatory Barriers and will continue to revise provisions of the enabling statues to ensure that unnecessary burdens do not impede the development of affordable housing. The State will also continue its objective of encouraging its localities to adopt inclusionary zoning provisions.
Moreover, the State will take the following specific steps to address regulatory barriers:
Moreover, the State will also meet with banks and nonprofits to promote the Community Reinvestment Act and ameliorate barriers to affordable housing financing.
Among the State's planned actions for meeting its strategy to implement programs to increase tenant self-sufficiency, is to encourage multifamily developments that have an affirmative marketing strategy. The State will also advance its plan to promote additional minority contractor participation in its programs and to facilitate implementation of the Fair Housing Act and the Americans with Disabilities Act, specifically by providing or facilitating the dissemination of information to providers in the public and private sectors and encouraging accessibility in all funding programs.
With its $5.4 million HUD Lead Based Paint Hazard reduction Grant, the State will undertake a Lead Safe Demonstration Project that will enable the State to develop and implement a state licensing and certification program; establish cost effective lead hazard reduction measures; review/revise its Statewide Building Code, and incorporate abatement strategies in its rehabilitation programs.
The State has adopted five objectives that guide the investment of its CDBG funds. The objectives are deigned to assist local governments in:
The method of distribution uses a point system to rank projects by composite fiscal stress and project impact. Proposals are separated according to the five objectives noted above and are rated against the other proposals within the respective category. A ranking of all projects results in the assignment of CDBG funds.
Increasingly, the State's Department of Housing and Community Development is emphasizing the use of CDBG funds to support economic development and job creation. New economic development project types are under design and will be implemented in 1996, subject to the citizen review process. By implementing these new project types, local units of government will be provided with greater flexibility to use CDBG funds to meet the needs of locating and expanding business and industry.
One of the priorities identified in the State's plan is to enhance coordination by developing partnerships at the State, local community and regional levels in order to better facilitate the coordinated use of resources and shared accountability.
The State distributes its federal funds through a network of providers and project sponsors, which include units of local government, nonprofits and for-profit housing providers and works with over 60 governments and public housing authorities in the administration of its Housing Partnership Program. Local providers are active in the Multifamily Loan Fund
Program and nonprofit housing providers are active in virtually all of the State's housing programs.
The State administers its federal and state funded housing programs through a network of nonprofit organizations and local governments. Through the use of the RCI, the State is endeavoring to bring the decision-making and allocation of these programs closer to the people and to allow the programs to better serve the needs of all Virginians for safe, modern and affordable housing opportunities.
Virginia's banks are involved in the implementation of the Community Reinvestment Act, which furthers the use of private resources in the development of affordable housing and the revitalization of neighborhoods.
The only resources which Virginia allocates on a formal geographic basis within its State are the federal Low Income Housing Tax Credit, the State Rent Reduction Tax Credit Program and the State Check-Off for Housing Programs.
Under the Low Income Housing Tax Credit and the State Rent Reduction Tax
Credit Program, the State established urban, rural and suburban pools that
tracks with those areas identified by HUD in the development of median income
levels. Funding set-asides within each of these areas were allocated to
projects located within the areas.
The State's mission statement describes as its goals the advancement of market-oriented initiatives in expanding homeownership, entrepreneurship and other asset development opportunities; the encouragement of grassroots leadership; the leveraging of private sector resources in the delivery of housing services; the removal of regulatory barriers to affordable housing, and the empowerment of individuals, families and communities.
Virginia has identified six housing priorities, as well as community development objectives, which are included in its Final Statement for the CDBG Program. Next year, both the State's housing priorities and community objectives will be included its Consolidated Plan.
The State has set out a number of specific actions that it will take in meeting its housing priorities. In the area of homelessness the State actions include:
In the area of homeownership opportunities for low income people and preserving the existing housing stock, State actions include:
The State's annual plan addresses housing priorities. The few community development priorities and related actions discussed in the plan are exclusively tied to housing actions. For example, one of the State's strategies is to support and develop innovative programs to provide adequate infrastructure with a related action to continue to coordinate Community Development Block Grant Indoor Plumbing/Rehabilitation, and Virginia Water Project resources.
The State will reduce the number of poverty-level families in Virginia through the implementation of a broad, market-oriented empowerment agenda. Using the Governor's "Opportunity Virginia" strategic plan for jobs, the State works to promote job creation and community and economic development in the inner-city and in poor rural areas. Among the key initiatives of this effort are the Virginia Enterprise Zone Program which offers tax incentives for businesses to hire and invest in distressed communities. Recent State legislation expanded this $9 million initiative by doubling the number of State Enterprise Zones.
Another State action is the Virginia Enterprise Initiative, which leverages private sector support for 15 community-based micro-enterprise programs. These programs provide access to capital and business skills to aspiring low-income entrepreneurs. The Virginia Family Saving Initiative allows and encourages low-to-moderate-income residents to set- aside money tax-free for targeted use like homeownership and education.
The State expects approximately $40.3 million to be available for use in 1995. This amount represents a combination of federal, state and non-public funds. Approximately $14 million of the federal share would represent HOME, Emergency Shelter Grants and Housing Opportunities for Persons with AIDS funds.
The State's Department of Housing and Community Development will work with a
variety of State agencies, prominent among them is Virginia Housing Development
Authority and regional entities such as the planning district commissions. At
the local level, the State works with nonprofit housing agencies, public housing
authorities, units of local government and for-profit providers.
The State expects approximately $40.3 million to be available for use in 1995. The following are projects planned by the State:
The above projects will be undertaken on a State-wide basis
The State's Department of Housing and Community Development; nonprofit organizations and local governments.