The Consolidated Plan for the state of Washington creates the opportunity for strategic planning and citizen participation to take place in a comprehensive context; it allows local governments, community organizations, developers, and citizens to address the larger picture in which the programs operate and it offers the state a better chance to shape the various programs into effective, coordinated strategies.
The Consolidated Plan for the state of Washington addresses the difficult task of finding approaches to housing that will use our limited resources effectively to help more Washington residents find safe, decent, and affordable housing, and to improve and maintain the economic and physical environment to enhance the quality of life for low- income residents. It includes a one-year Action Plan for spending $15,954,000 in Community Development Block Grant (CDBG), $8,933,000 in HOME Investment Partnership Program, and $941,000 in Emergency Shelter Grant Program. The Consolidated Plan is administered by the state's Department of Community, Trade and Economic Development (CTED).
To provide the public with opportunities to learn about the Consolidated Plan and to comment on strategies for uses of funds for housing and community development, CTED staff held public hearings during the week of September 26-30, 1994, in Olympia, Wenatchee, and Spokane. Notifications of the hearings were provided to community organizations, businesses, local jurisdictions, and individuals, as well as advertisements placed in a number of newspapers of general circulation. Strategies for the use of funds were also developed through two regional workshops conducted by the state's Affordable Housing Advisory Board in consultation with various stakeholder groups. Written comments were solicited from all interested parties during a 30 day comment period.
Population: The state of Washington's 1990 population was 4,866,692 representing an 18 percent increase during the decade of the 1980s. Further population growth of 15 percent is projected to occur during the 1990s. The bulk of the population lives in the Seattle- Tacoma metropolitan area, in King, Pierce, and Snohomish Counties, which together have nearly 2.7 million residents, 52 percent of the state's total. Other major urban centers include Spokane, the commercial hub for the east side of the state; Vancouver, across the Columbia River from Portland, Oregon; Yakima, in central Washington; the Tri-Cities of Richland, Kennewick, and Pasco in the southeast region; Olympia, at the south end of Puget Sound; Bremerton, in west Puget Sound's Kitsap County; and Bellingham, in the northwest region. The urban and urbanizing areas are home to 76 percent of Washington's people.
Racial and Ethnic Minorities: Washington is predominately Anglo-American, with nearly 89 percent of the state's popoulation listed as White in the 1990 Census. While the state is home to large communities of African American, Hispanic, Asian, and Native American people, none of these groups has as much as 5 percent of the population. People of Hispanic origin are the largest and fastest growing ethnic group in Washington; 4.88 percent of the total population. Their largest concentrations are in the agricultural regions of central and southest Washington where two counties, Adams and Franklin, now have populations that are over one-third Hispanic. Native Americans comprise less than two percent of the state's population and are geographically concentrated in tribal lands along the northern part of the state, the Olympic peninsula, and in three south central counties. The highest proportions of Asians and African American live in the urban centers of the Puget Sound area.
Areas of Low-Income Concentration: The median family income state-wide is $40,500. Household earning below 51 percent of the median income represent 21 percent of all households state-wide. Fourteen of the 39 counties have high concentrations of low- income households (at least 25 percent of the total county population). All but two of these counties, Grays Harbor and Pacific, are in eastern Washington.
In the early 90's, the national recession appeared to be catching up to Washington with job losses in the aerospace, manufacturing and the timber industries. New Job creation in other economic sectors has more than offset these reductions, however, much of the employment growth has been in the retail and service sectors with lower wages than the manufacturing jobs that have been lost. This has resulted in only modest, nominal income growth for many Washingtonians.
Long-term prospects for employment and incomes are reasonably favorable for the next decade or two. With its export orientation and high technology industrial concentration, the Northwest's economy is well positioned to capitalize on the continued expansion of the Pacific Rim trade and the advent of the information age. However, real income growth is not likely to rebound significantly until after the turn of the century.
There are an estimated 259,390 renter households and 166,527 homeowners in need of housing assistance across the state of Washington. It is estimated that if the rate of homeownership had not declined during the 1980s, there would be an additional 58,000 homeowners in the state today. Instead, these households are remaining in rental housing resulting in increased demand for rental units and increased pressure on low-income households who compete for rental housing stock.
The long-term outlook for housing markets in Washington can be characterized as one of ongoing demand pressures as the Pacific Northwest continues to attract a high rate of immigration. Washington's population grew at an average annual rate of 2.4 percent between 1990 and 1994 bringing Washinton's total population to over 5.3 million people. Nearly two-thirds of this population growth was the result of net immigration from outside the state.
Housing markets have grown tighter in many parts of the state and low- and moderate- income families are having an increasingly difficult time affording rent and mortgage payments. There have been dramatic differences in the supply response by region, with markedly greater multifamily growth in the western urban areas and very strong growth in the manufactured housing markets in the rural and eastern regions of Washington.
Over 100,000 of the low-income renter households in need are earning less than 30 percent of the median income, and they represent 76 percent of all the renter households in this income group. The incidence rate of need for renter households in the 31 to 50 percent of median income category was 73 percent. As household income increases above 50 percent of median income, need decreases. For those earning between 51 and 80 percent of median income, less than 50 percent have need of housing assistance.
The lower the income, the less ability a household has to compete in the private housing market. In all of Washington's counties, households earning 50 percent of median income or less, cannot currently afford HUD's established Fair Market Rents.
The number of first-time homebuyers peaked in 1990 and then fell by 30 percent in 1991. Families earning between 51 and 80 percent of median income will likely not become owners of single family homes without assistance. Moderate income families who have historically been homeowners are finding it harder to purchase their first home. The homeownership dilemma is most severe in parts of the state where pressure from retirees and other new residents has driven the price of housing well above the amounts local families can afford to pay.
According to the one-night Census count in 1990, there were 4,862 people who were homeless in Washington state. Data gathered by a network of shelter providers in the state reported that over the course of a year, a total of 53,911 people in 33,601 households were homeless in 1994. This is 2 percent of all households in the state of Washington.
There were 8,721 families staying in shelters. Of these families, 59 percent were single moms with children, 29 percent two-parents with children, 7 percent couples with no children and 5 percent single dads with children. Homeless individuals (not in families) totaled 24,880. Demand countinues to exceed available resources. Across the state, homeless people were turned away from shelter services, 122,382.
In 1994 there were 94 shelter facilities in the state, approximately 74 percent of the total state-funded programs are located in the western and more urban parts of the state.
There are currently 43,175 public housing units managed by Washington's public housing authorities. The number of households on the state's PHAs' waiting lists far exceed the supply of available units. Between 1989 and 1992, the number of households on these waiting lists nearly doubled (from 27,000 to over 50,000) while only 4,500 units were added to the public housing stock.
There were 2,400 persons reported living with AIDS in Washington state as of April 1994 and approximately 800 currently need subsidized housing. Support networks and services for people with AIDS are clustered in the urban core areas, particularly in Seattle.
The state of Washington's peak total migrant and seasonal farmworker population is estimated at 563,000 workers. The demand created by this population generates a need of 58,000 additional housing units ranging from shared-space dormitory type housing to conventional three-bedroom apartment units.
Based on the application of national rates of incidence, there were approximately 73,500 frail elderly in the state in need of supportive housing in 1990. Assisted living programs which provide the elderly with separate housing units, coupled with chore services and nursing support, will be an increasingly important form of housing for seniors.
It is estimated that 38,700 people in Washington state are severely mentally ill. In 1990, there were a total of 13,015 unduplicated clients in the state's Department of Social and Health Services residential programs for the chronically mentally ill. The stock of low- income housing, where many mentally ill people live, continues to decline due to demolition of these units and rising rents. Rent subsidies are still needed.
In 1989, it was estimated there were approximately 280,000 people over age 20 in the state with major disabling conditions. Of this population, it is estimated that one quarter, or 70,000, were in need of housing assistance plus social services. Physically and developmentally disabled persons need an array of appropriate, affordable, and supportive housing provided in the least restrictive setting as possible.
Based on national rates of incidence applied to Washington's 1989 population, there were about 238,000 people with substance abuse problems. Approximately 10 percent of this population, or 23,800 people, are thought to be in need of housing and services. The population of alcohol and substance abusers is diverse; there is often overlap with other special needs such as mental illness and homelessness. Residential programs needed for this group include a continuum of care ranging from in-patient treatment to permanent drug- free housing for those in recovery.
The state recognizes that it shares responsibility with the federal and local governments for shaping a regulatory climate that encourages housing while maintaining needed health, safety, environmental, and consumer protections. The costs, benefits, and tradeoffs of various regulations must be weighed carefully so they promote the affordability and availability of housing. In addition, the administration of regulations must be done in a way that minimizes costs and delays.
For this reason, Governor Lowry has charged a task force with designing a plan to eliminate burdensome government regulations without jeopardizing the environment. Housing is only one area which will receive attention; the task force's work includes an analysis of project approval, permitting and appeals processes, as well as interagency coordination.
Relevant areas in which the state has in recent years initiated studies, and policy and legislative reform, include comprehensive planning and growth controls, zoning ordinances, subdivision standards, fees and charges, approval and permitting systems, and building codes.
The state's actions to promote fair housing include the following:
Aaccording to the 1990 Census, approximately 36.8 percent (747,915) of all housing units in Washington State were constructed prior to 1960 and, therefore, are likely to contain lead-based paint. Approximately 64 percent of the households living in pre-1960 units are low or very low-income households.
Washington State currently does not have a reliable estimate of the number of children affected by lead poisoning. The Environmental Defense Fund estimates that in Washington, 40,893 children between the ages of 6 months and 5 years have elevated blood lead levels (EBL), using the Center for Disease Control's definition of EBL as 15 micrograms/deciliter or highter, however, the Dept. of Health believes this estimate is high.
As of May 15, 1993, all blood lead tests performed on state residents are required to be reported to the DOH; however, information provided is frequently incomplete and follow-up is difficult. The DOH, under a grant from the Environmental Protection Agency, is currently working to enhance the blood lead registry and follow-up procedures. This reporting system will be of primary importance in providing data on the extent and nature of lead poisoning in Washington.
The state's non-housing community development needs and objectives were identified using a combination of statewide reports and surveys and local sources of information. The needs identified affect more than one local government and involve activities typically funded by the state under the Washington State Small Cities CDBG Program. They fall into the following categories:
In the 1993 Washington Housing Policy Act, the Department of Community, Trade and Economic Development (CTED) was named the principal state agency responsible for coordinating federal and state resources and activities in housing except for Washington State Housing Finance Commission programs. CTED also has the responsibility to staff the Affordable Housing Advisory Board (AHAB) established in the Housing Policy Act. Coordination within CTED is done between the Housing Services Area and the Local Development Assistance Services Area.
The state's housing delivery system includes CTED and other state agencies, the Housing Finance Commission, local governments, housing authorities, private lenders and developers, and non-profit organizations. Efforts to improve communication and coordination between all entities is ongoing and has been encouraged through the Consolidated Plan process in identifying priorities and strategies.
The priority areas were developed as a result of the public process and activities will focus on the most critical needs within each priority area with a major emphasis on households below 50 percent of median income. However, consideration will also be given to the provision of housing along the enitre continuum so that some progress is made in all areas of need.
The non-housing community development priority needs and objectives have been developed in accordance with the eligible activity areas which the Washington State Small Cities CDBG Program has identified in the project areas of Public Services, Public Facilities, Economic Development, Community Facilities, and Other. All objectives identified have been developed in accordance with the following goals: a) to provide for decent housing for low-income persons; b) to provide for a suitable living environment; and c) to expand economic opportunities to low-income persons.
The strategy includes coordination and integration of housing programs with other programs targeted to low-income households, such as economic development. The strategy to combat the effects of poverty on vulnerable households will emphasize service-enriched housing for people with special needs, the funding of housing programs that incorporate a family self-sufficiency type model, and the goal to provide for a greater continuum of housing alternatives for homeless people.
The existing statewide economic development programs are an integral part of the state's anti-poverty strategy. These programs focus assistance on timber communities and diversification of defense-dependent communities where local economies have been hard hit by changes in these industries.
The state makes available with the Consolidated Plan a Housing Resource Guide which includes descriptions of 54 programs of the following federal and state agencies: Farmer's Home Administration; U.S. Dept. of HUD; Bureau of Indian Affairs; Washington State Housing Finance Commission; and Washington State Department of Community, Trade and Economic Development (CTED). CTED anticipates that at least $50 million will be available during each of the ensuing Biennia (1995-97, 1997-99) from the Capital Budget for a variety of low-income housing activities.
Local government resources include use of general funds, block grants, bonds, levies, and partnerships with private sources.
Other partners in the affordable housing delivery system include many private developers, private corporations and non-profit organizations. Lending institutions in the state have organized the WCRA, a non-profit consortium, to finance affordable housing with member bank pledges of $75 million to provide conventional financing for projects eligible for tax credits and other subsidy programs. The Housing Finance Commission is then cooperating in the development of a secondary market program for WCRA loans to allow the funds to revolve.
The state of Washington one-year action plan describes methods of funding distribution for housing and community development in each of the formula grant programs as listed below.
Community Development Block Grant (CDBG), $15,954,000: Funds will be distributed to units of general local government on a competitive basis for the following programs to primarily benefit low- and moderate-income persons.
HOME Investment Partnership Program, $8,993,000: Funds are distributed on a competitive basis to non-profit organizations, local governments, and PHAs. Program components include Minor Home Repair for low-income homeowners; Tenant-Based Rental Assistance; and, new construction, rehabilitation, and acquisition of rental housing and homeowner units.
Emergency Shelter Grant Program, $941,000: Funds are distributed on a competitive basis to non-profit organizations, local governments, and PHAs for emergency shelter renovation and operations, essential services, and homeless prevention activities.
The CDBG funds are distributed for projects throughout the state in non-entitlement cities and counties, cities with less than 50,000 and counties with less than 200,000 population. The economic development loan funds, however, are targeted so that at least 80 percent of the funds go to distressed and timber-impacted areas. The HOME program has a priority for distribution to jurisdictions which do not have a direct entitlement to HOME or CDBG funds. ESG funds are distributed to jurisdictions which do not have a direct ESG entitlement.
The programs under the Consolidated Plan are administered by the state Department of Community, Trade and Economic Development within the Local Development Assistance Service Area, and the Housing Services Area.