The city of Madison is the capital of Wisconsin, the county seat of Dane County, and the headquarters for the State university system. Madison's economy is diverse and benefits from the area's healthy agricultural and high technology sectors. Major employers include Ray-O-Vac, Oscar Mayer, CUNA, and American Family Insurance. The city also serves as the region's shopping and cultural center. Located on an isthmus with parts of three lakes in its boundaries, the city is located about 75 miles west of Milwaukee. More than 196,000 people live in Madison.
In its Consolidated Plan, Madison describes its housing and community development needs and priorities and it presents a 5-year strategy to address these needs using Federal funds and other resources. In the plan's first year, Madison is requesting $2.6 million in funding from the Community Development Block Grant (CDBG), $1.1 million in funding from HOME Investment Partnership Program (HOME), $999,000 in funding from Housing Opportunities for Persons with AIDS (HOPWA), and a $250,000 Emergency Shelter Grant (ESG). This money will be used to finance more than three dozen housing, community development, and service activities.
Madison's planning for the Consolidated Plan began with the development housing policy goals for the Comprehensive Housing Affordability Strategy (CHAS). The CDBG Commission (a group of citizens and alderpersons) held several meetings to set community-development-related goals and make preliminary recommendations for 1995 CDBG and HOME funds. The Common Council held public hearings in November in the City-County Building, on the city budget, which incorporated the Commission's and the Mayor's funding recommendations for CDBG, ESG, HOME, and other community development-related funds.
Following the publication of the HUD consolidated plan guidelines in August
1994, the city assigned the lead responsibility for to the Department of
Planning and Development, with the policy oversight to be provided by the CDBG
Commission. This team has solicited comments on the process, the needs, goals,
and priorities from over 450 persons, including interviews with Council members,
questionnaires to each community group or major funder associated with community
development or affordable housing activity, and to every neighborhood or
resident association. The CDBG Commission held a public hearing on the draft
document on October 25, 1994, in the Madison Municipal Building, after due
public notice in the Capital Times. The results of the initial surveys
and hearings have been incorporated into this summary; the results of the other
surveys are still being compiled, and will be incorporated into amendments to
the plan anticipated in 1995.
Madison's population grew by 11.8 percent between 1980 and 1990, according to census figures. This increase is expected to continue through 2000. The number of households between 1980 and 1990 increased by 14.1 percent, from 66,451 to 77,361.
The city's population is growing older and the average household size is decreasing. These trends are expected to continue into the next century. In 1990 12 percent of Madison's population was 60 years old or older, with the median age at 29.2.
Madison also is becoming a more ethnically diverse city. Racial/ethnic subpopulations, as classified in the 1990 census, include:
Asian American/Pacific Islanders showed the largest percentage of population increase (132 percent) between 1980 and 1990. The African-American population increased 75 percent, Hispanics showed a 58 percent increase, and Native Americans showed a 53 percent increase.
Median family income (MFI) for Madison is $40,799. This is comparable to the Madison metropolitan area's MFI of $41,528. The national MFI is $35,939.
Almost half (46 percent) of households in Madison have annual incomes of 80 percent or less of MFI. Census data shows the following levels of low- and moderate-income households:
Madison's poverty rate of 6.6 percent is lower than the national average.
Determining the number of families living in poverty using census figures is
difficult because many of those households that are considered below the poverty
level are full-time college students. Families below the poverty level are
scattered throughout the city.
It is estimated that Madison's population will grow to 209,523 by 2000. Assuming that the growth rate of households is equal to the rate of population growth, Madison will need to add more than 5,000 housing units between 1995 and 1999.
In 1994 there were 80,047 year-round housing units. Of those, 77,361 were occupied. Slightly more than half of the occupied units (51 percent) were renter-occupied, while 44 percent were owner-occupied. Of the 2,656 vacant units, 1,508 were for rent and 336 were for sale.
The overall vacancy rate in 1990 was 5.5 percent. While a few apartment complexes have vacancy rates as high as 50 percent, the overall housing market in Madison is extremely tight. Quality, safe, and affordable housing is scarce.
A key change in Madison's housing market is the increasing value of property. The percentage of owner-occupied units under $50,000 dropped from 31 to 9 percent between 1980 and 1990. Meanwhile, owner-occupied units valued over $100,000 increased from 7 to 22 percent during the same period.
HUD's fair market rent (FMR), the indicator used in determining Section 8 rental subsidies, indicates average monthly rent levels in a particular housing market. FMRs for Madison are:
One of the major causes of the affordable housing shortage in Madison is the student population. While there are about 29,000 students at the University of Wisconsin at Madison, there is on-campus housing for only 7,975 students. The relatively greater purchasing power of students living off-campus and seeking housing in older neighborhoods puts them in direct competition for those apartments sought by lower income families with children.
Of Madison's 11,251 very low-income (0-30 percent of MFI) households, 83 percent pay more than 30 percent of their income for housing, which is considered cost-burdened; and 70 percent pay more than 50 percent of income for housing, which is considered severely cost-burdened. Of the 9,324 low-income households in the 31-50 percent of MFI bracket, 76 percent are considered cost-burdened, and 26 percent are considered severely cost-burdened. Renters, especially large families, are more likely to have housing problems than owners.
It is estimated that on any given night in Madison there are 260 homeless persons. The short-term shelter system of emergency and transitional housing provides over 170,000 shelter nights per year. In 1993 the primary reasons for seeking emergency shelter were:
The number of homeless persons has increased by 31 percent over the last 5 years, with the largest increase among homeless families. In 1988, 474 families were homeless, compared to 994 families in 1993.
The emergency shelters have beds to serve about 149 women and families and 93 men. There are also 162 beds used for transitional housing for single men or women. Of these transitional beds, 116 have been targeted for individuals with mental illness or alcohol/drug problems.
In addition to shelter, the homeless have other needs, including employment assistance and counseling for psychological problems and alcohol/drug abuse. Families need longer-term housing and support programs to help them find and make the transition to permanent housing.
The Madison Community Development Authority (CDA) manages 766 housing units, including 34 units that are considered scattered-site housing. As of October 1, 1993, 94 percent of the units were occupied. The Madison CDA's Section 8 rental assistance program handles 734 certificates and vouchers. There are 2,700 families on a waiting list for some type of housing assistance.
In 1992 the city formed a team to assess local codes, ordinances, and processes that may be inhibiting the development or renovation of affordable housing. This team has not yet made its conclusions.
The city also is taking steps to improve the quality of public housing. In 1993 the city changed its ordinances to permit the use of broader criteria in screening out drug dealers and others who may pose a threat to tenants in affordable housing developments.
Features of the Section 8 program that limit housing choices for lower income households have already been identified. These include:
A 1992 study in Madison that found a need for higher fair market rents was confirmed by HUD when it adopted the recommendations. Higher rent levels were implemented during 1993 and the impact of this increase is being monitored.
There are higher proportions of lower income households and racial minorities in six of Madison's census tracts. The city has taken specific policy and programmatic steps since 1981 to address this concentration of poverty by instituting broader-based housing assistance measures. These measures include:
As many as 17,680 rental units and 3,386 owner-occupied units may contain lead-based paint.
The elderly, mentally disabled, mentally ill, physically disabled, substance abusers, and victims of domestic violence also have specific housing needs that must be addressed.
The city will continue to take a major role in developing social service and recreational facilities, such as neighborhood and community centers. The city also will remain actively involved in planning and promoting youth and senior programs. Expansion and development of businesses in lower income neighborhoods and the creation of jobs for lower income residents are the most important economic development needs.
This plan accords only a medium priority to transportation and crime
awareness because there are other government jurisdictions that handle these
issues. Similarly, the city expects the county will continue to play a major
funding and policy role in the provision of handicapped services, substance
abuse treatment and child care.
In 1994 Madison officially adopted a set of strategic goals and strategies. The goals are:
Madison has identified 6 priority goals in its 5-year strategic plan.
Madison's housing objectives during the next 5 years include:
Economic development objectives for the 5-year plan are to create 500 jobs with expanded basic-sector businesses and 500 jobs in neighborhood-serving businesses, and to assist in developing 25 micro-enterprises.
For community services, the 5-year objectives are to:
The strategy calls for helping 7 targeted low- and moderate-income neighborhoods with their plans and helping implement 14 neighborhood projects.
To promote housing and service access and choice, the city has set a goal of assisting 10,000 people over the next 5 years.
To reduce poverty in Madison, the city will promote the accessibility of employment, education, health care, and family support services to lower income families. The objective will be to help them develop greater family independence. Three major activities to achieve this goal will be:
Madison's 5-year Consolidated Plan is predicated upon the availability of an estimated $39.7 million in program resource funds over the 1995-1999 term of the plan. An annual average of $7.9 million will be needed for fulfillment of this Consolidated Plan, including $4.1 million in CDBG and program income, $250,000 in ESG money for the homeless, $1.6 million in HOME funding, $400,000 from HOPWA, and $825,000 from other Federal programs. Also included in the annual estimated resources are $300,000 from Wisconsin's Department of Housing and $450,000 from city revenues and other sources.
Madison's Department of Planning and Development, working with other city government agencies, will serve as the lead agency in recording, monitoring, and evaluating of the city's progress in achieving the plan's goals. The CDBG Commission will be responsible for reviewing and evaluating the plan's policy components.
A subcommittee of the Planning and Development Consolidated Staff Team will
oversee a consistency review process for applications to HUD and will provide
ongoing guidance for Madison's community development programs.
For the program year 1995-1996, Madison plans to use $7.6 million in CDBG, HOME, ESG, HOPWA, and program income funds for 37 activities to address specific housing, community development, and human services needs.
Allocations for housing from CDBG funds of $626,610 include:
From Madison's HOME grant, $990,000 is allocated to seven housing efforts, including two rehabilitation programs, three acquisition and rehabilitation for resale programs, and a new construction/substantial rehabilitation effort.
Program income of $495,000, representing interest and loan repayments, also will be added to the capital pool of five housing repair or rehabilitation revolving loan programs.
For economic development, $1.1 million in program income from the Madison Development Corporation small-business loan program and the Common Wealth equity investment fund is authorized for reuse in these programs. Another $348,748 in fresh CDBG funding also is allocated. Projects will include:
The $421,900 budgeted for community service activities includes:
To help revitalize selected neighborhoods, $205,200 is reserved to fund priority projects identified (and shared equally) by two neighborhood-based resident steering committees.
Funds for "access and choice" activities include $27,000 to two groups providing housing counseling and information and $15,000 for a community voice mail pilot project to help those without phones improve their access to housing and services.
Madison will work closely with the Madison AIDS Support Network and other community groups to effectively use the city's $999,000 3-year HOPWA grant. Funds will be used for housing assistance, counseling, and other services related to providing affordable housing for residents with AIDS.
Activities funded under the Consolidated Plan will take place throughout the city, but with an emphasis on locations within targeted lower income neighborhoods.
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).
