Tacoma, in Washington's Puget Sound area, is approximately 30 miles south of Seattle. The region was settled by Native Americans and first explored by Europeans in 1792. Settlers began arriving in 1864, in what is now known as Old Town or Old Tacoma. In 1868 a lumber mill was established, and in 1873 Tacoma became the terminus for the Northern Pacific Railroad. Today, Tacoma has a population of 176,664. The greater Tacoma economic base includes nearly 700 manufacturing firms and non-manufacturing activities. Manufacturing includes forest products, food processing, primary and fabricated metals, transportation equipment, and printing and publishing. The military, education and government employ a significant percentage of the residents.

Action Plan

To carry out the first year of this 5-year Consolidated Plan, Tacoma will use approximately $3.3 million in Community Development Block Grant (CDBG) funding, $1.3 million from the HOME Investment Partnership Program (HOME), and a $116,000 Emergency Shelter Grant (ESG) for more than 70 activities. These activities will develop affordable housing units, rehabilitate substandard homes, improve public facilities, repair streets and sidewalks, and make housing and public facilities accessible to disabled persons, provide business support services, and provide public services.

Citizen Participation

To broaden public participation in development of this Consolidated Plan, Tacoma gave public notice of two needs-assessment meetings in November 1994, of requests for funding proposals in February 1995, and of availability of the draft plan for public comment in March-April 1995. Proposals were reviewed and recommended by a citizens advisory committee. The draft plan was reviewed by several citizens advisory committees then mailed to organizations throughout the community. The city council held a public hearing on the plan on April 18, 1995.

During preparation the city consulted with various public and private agencies providing housing, health, and social services. Presentations were made to both the Tacoma-Pierce County Housing Council and the Tacoma-Pierce County Coalition for the Homeless. To formulate its strategies on reducing lead-based paint hazards, Tacoma worked actively with the Tacoma-Pierce County Health Department.

Tacoma's growth has resulted from a wide variety of economic, social, and physical variables, such as: its topography; the availability of water and power; the abundance of timber and other resources; and the development of streets, roadways, and rail transportation. However, early adopted city plans bore little relationship to the area's topography, affecting both the pattern of its initial development and present and future land uses.

Over the past 20 years, Tacoma's economic base has been shifting from manufacturing to a more diverse economy based on services, government, education, transportation, international trade, and tourism. Two key employment centers are the downtown central business district and the Port Industrial Area. In recent years the commitment of both public and private investments has continued to revitalize the downtown area, and the Port Industrial Area has expanded its international trade and industrial development through capital improvements, environmental cleanup efforts, and utilization of vacant land.

The area's largest employer is the military, which includes: the Fort Lewis Army Post, McChord Air Force Base, Bremerton Naval Shipyard, and Madigan Army Medical Center. Educational institutions are also significant employers; Tacoma contains two private 4-year colleges, the University of Puget Sound and Pacific Lutheran University and a branch campus of the University of Washington.

Tacoma's population grew very slowly between 1950 and 1980, but during the 1980s it increased by more than 11 percent. Significant growth is expected to continue over the next 20 years. The city's growth in recent years has been located near the city limits, including Northeast Tacoma, the West End, and South Tacoma. Slow growth or loss generally occurred in older, inner-city neighborhoods.

The 1980s also saw large increases in the population under age 10 and over age 64. Those under 10 made up 16 percent of the population in 1990, while those 65 and older were almost 14 percent. The greatest increase was in the 35 to 44 year old age group which increased from 10 to 14 percent of the population from 1980 to 1990.

The minority population grew substantially in the 1980s, when the Hispanic and nonwhite populations grew from 23,203 (15 percent) to 41,628 (24 percent). Although minorities are distributed throughout Tacoma, the central and eastern areas of the city have slightly higher concentrations of minority households.

In 1990 there were 69,939 households in Tacoma. Median household income was $25,333, compared to $30,412 for all of Pierce County and $34,975 for the Puget Sound region. This difference was partly due to the high number of low-income unrelated individuals (especially the elderly) living in Tacoma, as well as the lower cost of housing there. Census data show the following numbers at defined low- and moderate-income levels as related to median family income (MFI) in the area:

• Extremely low (0-30 percent of MFI) -- 12,030 households (17 percent).
• Very low (31-50 percent of MFI) -- 9,097 households (13 percent).
• Low (51-80 percent of MFI) -- 12,422 (18 percent).
• Moderate (81-95 percent of MFI) -- 5,526 (8 percent).

Sixteen census tracts have been identified as having low-income concentration. Most are in or adjacent to commercial or industrial areas.

Housing Needs

Tacoma had 69,939 housing units in 1990, an increase of 10 percent over 1980. Rental units made up 47 percent of the housing units, while 53 percent were owner occupied. Tacoma had an overall vacancy rate of 6.9 percent; 1.9 percent of units for sale were vacant as were 7.3 percent of rental units. It is estimated that 7.8 percent of rental households and 2.3 percent of owner households are overcrowded.

The city's housing stock is aging; 99 percent of its units were constructed before 1980 and 52 percent before 1950. Nevertheless, for its age the housing in Tacoma is in good condition. A 1991 survey of more than 48,000 housing units found that 89 percent were considered preservable or conservable, 11 percent needed rehabilitation, and less than 1 percent needed severe rehabilitation or demolition.

Housing Market Conditions

Over the past two decades, construction of multifamily housing has increased significantly in many neighborhoods and/or along arterial streets that separate neighborhoods. Rising land prices, higher construction costs, and the scarcity of large undeveloped tracts of land have hindered the construction of single-family homes. At the same time, the population has seen an increase in elderly persons and younger unmarried adults, many of whom are likely to be renters. Higher housing costs, coupled with these demographic changes, have encouraged developers to build other types of housing, such as apartments, townhouses, or condominiums.

In 1990 the average selling price for single-family homes was $97,167 in the North End and West End (a 27-percent increase since 1984) and $50,772 in South Tacoma (a 35 percent decrease). In the central area, prices stayed about the same. The median monthly contract rent for Tacoma was $350.

Affordable Housing Needs

Tacoma has a shortage of quality, affordable housing options for its renter population. Of the 31,512 renter households, almost half (48 percent) have housing problems related to one or more of the following: excess cost burden, substandard housing conditions, or overcrowding. Analysis of lower income rental households shows:

• 8,137 households have incomes below 30 percent of MFI. Sixty percent pay more than 50 percent of their income for housing, and 75 percent pay more than 30 percent. Elderly households make up 2,131 of these households.
• 5,913 households have incomes between 31-50 percent of MFI. About 23 percent of these households pay more than 50 percent of their income for housing, and 74 percent pay more than 30 percent.
• 6,739 households have incomes between 51-80 percent of MFI. Only 3 percent pay more than 50 percent for housing, but 37 percent pay more than 30 percent.

Although there are fewer very low- and low-income households among the 38,240 owners in Tacoma, 11,677 have incomes below 80 percent of MFI. Very low-income owners who are not elderly have excess cost burdens about as often as renters at that income level.

The rate of overcrowding has increased from 2.7 percent in 1980 to 5 percent in 1990.

Homeless Needs

The Tacoma-Pierce County Coalition for the Homeless conducted a 24-hour count of homeless persons in January 1995. A total of 200 volunteers canvassed the county and completed survey forms for homeless families and individuals. The survey counted a total of 1,684 homeless persons, 980 of whom were in Tacoma. The survey found the following characteristics:

• 53 percent were Caucasian, 27 percent African American, 7 percent Hispanic, and 13 percent were other race or ethnicity.
• 73 percent of the households were single individuals, while 27 percent of the households were part of families.
• The average period of homelessness was 19 months, and the average age of homeless persons was 35.
• 48 percent of the homeless had physical or mental disabilities and/or substance abuse problems.
• 1 percent of the homeless were youth under the age of 17 without families.

The Tacoma-Pierce County Coalition for the Homeless meets on a monthly basis. More than 20 organizations attend regularly. The coalition is working with representatives from the Social Security Administration to help develop a user-friendly system for homeless persons to access Social Security.

Tacoma has more than 20 emergency, transitional and special needs housing projects. Shelters specialize in housing for single men or women, families, youth, domestic violence victims, mentally ill and other special needs populations. Facilities that provide support services to the homeless include:

• The Drop-In Center. This facility is operated by the Nativity House and serves 150 to 200 individuals per day through its soup kitchen and day shelter.
• The Emergency Services Center. Operated by the Tacoma Rescue Mission, this facility provides overnight shelter for homeless men, as well as meals to lower income women and families.
• The Hospitality Kitchen. This soup kitchen provides 25,000 meals a month to homeless persons and also serves as a day center with socializing activities for the homeless.
• The Martin Luther King Ecumenical Center. This organization operates a countywide motel voucher program with priority given to the medically frail, mentally disabled, and disadvantaged youth. The program serves more than 300 persons per year. Two-thirds of program participants are homeless families with young children.

Public and Assisted Housing Needs

The Tacoma Housing Authority (THA) administers 1,459 units of low-rent public housing and 24 units of other public housing in 10 complexes and scattered sites. Seven complexes are for the elderly and two have both elderly and families.

In April 1995 THA moved its administrative offices to make room for THA's Family Economic Empowerment Center, which is to be a one-stop center for education, training, and supportive services to help residents become economically self-sufficient.

THA has established a 5-year modernization program to upgrade older units and maintain quality public housing.

THA also is involved in the administration of rental assistance for 2,054 Section 8 certificates and vouchers.

As of March 1995, Tacoma had a waiting list of 873 households for public housing and 1,877 households for Section 8 rental assistance.

Barriers to Affordable Housing

Currently, 85 percent of Tacoma's land is owned or occupied for commercial or residential usage, leaving less than 15 percent of its land for future development. Because of this decreasing supply and limited annexation opportunities, future growth within Tacoma will focus on reuse of existing land as well as in-fill development. Among barriers to the development of more affordable housing, the following are two of the factors listed by Tacoma:

• Vacant in-fill lots. Vacant lots are both an impediment and an opportunity for more housing. While the city encourages their development in older neighborhoods, many lots have not been marketable because they are less than the legal 5,000 square feet. In 1994 Tacoma passed an ordinance that allows development on these smaller lots under certain conditions.
• Property values. Lower property values in some older residential areas can be major impediments to rehabilitation or homeownership. Often, lower income, first-time homebuyers cannot secure financing to purchase or rehabilitate homes in older neighborhoods because lenders are reluctant to invest in older, lower income neighborhoods.

Fair Housing

Tacoma's Human Rights Department is actively facilitating its fair housing policies. Activities include: enforcement of fair housing laws, conducting fair housing educational conferences, and providing landlord-tenant counseling and mediation services.

Lead-Based Paint

Because of the age of the housing stock, it is estimated that 49,600 units (85 percent of the city's housing stock) have potential lead-based paint hazards. Housing units with the most critical abatement needs are older, substandard units occupied by low- and moderate- income families with children less than 7 years old.

Abatement procedures for the 1,000 highest priority units would cost $7 to $10 million dollars. Tacoma does not have the resources to adequately remediate all of its housing units with lead-based paint but will continue to inspect homes for lead-based paint hazards and seek funding sources for abatement.

Other Issues

The Puyallup Indian Tribe manages 23 homes that the tribe purchased from the U.S. Department of Housing and Urban Development (HUD) through the Mutual Help Homeownership Program. The Puyallup Nation Housing Authority (PNHA) oversees the program and will construct an additional 25 homes for tribal families within the next year. The PNHA also leases 27 subsidized housing units and plans to pursue Section 8 rental assistance funds as well as funding to buy and convert an unused building into a community center under the HUD family investment centers program.

A variety of persons have been noted who have special needs: the generally disabled, the severely mentally ill, the physically and developmentally disabled, substance abusers, persons fleeing domestic violence, persons with HIV/AIDS, the frail elderly, female heads of households, and veterans. Most need some sort of supportive housing or services.

Community Development Needs

Because Tacoma is an older community, its streets, utilities, and other basic infrastructure have been in place for many years and need repairs, particularly in the Eastside, South End, and South Tacoma neighborhoods. Other community development needs that rate as high priorities include child-care centers, parks/recreational facilities, employment training, crime awareness programs, tenant/landlord counseling, removal of accessibility barriers, and historic preservation.

Vision

Tacoma's community vision focuses on its long-term growth and development concept. It is planning for future populations with a vision for preserving and enhancing the qualities that make Tacoma an enjoyable place to live: livable neighborhoods, clean air and water, public parks and open space, and efficient transportation, as well as economic prosperity and employment opportunities. Growth will be concentrated in centers to protect existing neighborhoods and create attractive environments.

Housing and Community Development Objectives and Priorities

Over the 5 years of the Consolidated Plan, the city will focus on housing and community projects that improve both the affordability of housing and the overall quality of life for Tacoma's residents. The focus of housing and community development resources will be projects and programs that:

• Support facilities and services directed to assist the homeless and persons with special needs.
• Rehabilitate the existing housing stock and maintain the existing supply of subsidized housing.
• Pursue low-cost housing alternatives, such as manufactured housing, in order to facilitate the development of more affordable housing.
• Support the construction or rehabilitation of community facilities.
• Support projects to revitalize neighborhood business districts that can create employment opportunities for lower income persons.

Housing Priorities

Housing improvement activities will focus on households that are cost burdened and housing units considered substandard. Tacoma lists six ongoing key housing priorities:

• Providing rental assistance to cost-burdened renter households. There are 6,839 households in this category.
• Replacing substandard rental units by constructing new units or rehabilitating existing units.
• Building affordable rental units to alleviate overcrowded housing conditions.
• Providing emergency repairs and tax relief to cost-burdened homeowners.
• Rehabilitating substandard owner-occupied housing to benefit an estimated 504 Tacoma households.
• Building additional housing units for sale or rehabilitating older units in order to alleviate overcrowding in owner-occupied units.

Non-housing Community Development Priorities

Tacoma has adopted strategies to address the economic needs of the community over the next 5 years. Major components of the strategy and their costs include:

• Commercial and industrial rehabilitation. Property rehabilitation and environmental cleanup will cost $9 million over the next 5 years.
• Microbusinesses. $500,000 is necessary over the next 5 years to fund startup loans for small businesses.
• Technical assistance. Management, marketing, and promotional training to small business owners will cost about $700,000 over the next 5 years.

Antipoverty Strategy

Currently 28,632 persons, nearly 17 percent of Tacoma's population, live below the poverty level. The city will support programs and projects that assist very low-income families out of poverty through education programs, the creation of living-wage jobs, and the provision of necessary social services. Specific activities include: self-sufficiency programs, emergency and transitional shelters, job training programs, and programs that assist senior citizens living on fixed incomes.

Housing and Community Development Resources

In addition to a wide variety of HUD programs, State programs will be used to address the housing and community development needs of Tacoma, including: the Shelter Assistance Program, the Single-Family Homeownership Program, the Housing Assistance Program, and Special Valuation Property Tax Credits.

Coordination of the Strategic Plan

In 1991 Tacoma reorganized a number of departments. Housing and human services functions were consolidated under the Community and Human Development Division of the newly formed Planning and Development Services Department to allow greater coordination of programs.

To enhance the delivery of public services, the city will continue to maximize coordination efforts among city agencies, nonprofit organizations, and other private and public resources. Because the level of Federal support for housing and community development has been reduced, local and State governments will have to expend more resources and increasingly utilize assistance from nonprofit organizations.

Description of Key Projects

During the first year, the city will spend approximately $4 million in CDBG funds, $1.6 million in HOME funds, and $489,000 in ESG funds to fund approximately 70 projects located throughout the city. Key projects include:

• $150,000 to provide at least 60 housing units with emergency home repairs, including sewer, roofing, and electrical repairs.
• $364,000 for low-interest loans to low- and moderate-income homeowners to rehabilitate their homes.
• $397,000 to acquire and rehabilitate 13 housing units for use as permanent rentals for low-income persons.
• $100,000 to provide downpayment assistance to low-income, first-time homebuyers.
• $270,000 to develop 15 affordable housing units for low-income homeowners in the Hilltop neighborhood.
• $224,000 for the acquisition and rehabilitation of housing for persons with HIV/AIDS.
• $160,000 in loan repayments for a Business Revolving Loan Fund for loans to small businesses to rehabilitate their facilities and/or create employment opportunities for lower income persons.
• $613,000 for housing or crime prevention services such as $58,000 for the Mission Services Center to assist in providing meals, services, and shelter to homeless persons.
• $452,000 for tenant-based rental assistance to approximately 85 low-income households on public housing waiting lists.
• $60,000 for the replacement of hazardous sidewalks throughout the city.

Locations

During the upcoming year, the Hilltop and Eastside neighborhoods will continue to be targeted for housing, infrastructure, and public facility improvements. The city will particularly emphasize the rehabilitation and creation of additional housing in the Hilltop neighborhood.

Maps

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, unemployment levels, and proposed HUD funded projects.

MAP 6 is a map, sectioned by neighborhood, which depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects.

MAP 7 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects within one of the four neighborhoods indicated in MAP 6.

MAP 8 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects within another of the four neighborhoods indicated in MAP 6.

MAP 9 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded project(s) from a street level vantage point; in addition, a table provides information about the project(s).