The city of Milwaukee is located directly on Lake Michigan in southeastern Wisconsin. The city's culturally diverse population represents about 45 percent of the metropolitan area's 1.4 million people.

Action Plan

To implement its Consolidated Plan during the first year, the city expects to receive $23 million in Community Development Block Grant (CDBG) funds, $21.5 million in CDBG Section 108 funds, $9 million in HOME Investment Partnership Program (HOME) funds, and $584,000 in Emergency Shelter Grant (ESG) funds. These resources will be allocated to housing activities, public and nonprofit services, and economic development.

Citizen Participation

Between September and November 1994, 11 public hearings were conducted to discuss the city's Consolidated Plan and related Federal grants. These hearings were held at city hall, the Clinton Rose Senior Center, and South Division High School. In August 1994 the city held meetings with nonprofit organizations to obtain their input on community needs.

In 1990 Milwaukee had a population of 628,202 persons. Of this total whites constituted 63 percent; African Americans, 30 percent; Asian Americans, almost 2 percent; and Native Americans, almost 1 percent.

The city's typical family has changed during the past 30 years. The number of children living in single-parent homes has increased by 300 percent. The average household size decreased, falling to 2.54 persons in 1990 from 3.13 in 1960. Between 1980 and 1990, the largest growing age groups were persons under age 9, persons age 25 to 44, and those over age 75.

In 1990 the median family income (MFI) for the Milwaukee area was $39,004. Of the 240,782 city households in 1990, over 34 percent were very low-income (0-50 percent of MFI); 20 percent were low-income (51-80 percent of MFI); and 9 percent were moderate- income (81-95 percent of MFI). Female-headed households have experienced the greatest increases in poverty during the past 20 years. Very low-income households are concentrated in the north, west, and southside neighborhoods.

Conditions

During the past 15 years, the metropolitan area experienced a net loss of nearly 43,000 manufacturing jobs, with city residents losing 60 percent of those jobs. However, economic growth has been steady for both the State and the Milwaukee area. Most new jobs are being created in the service sector, and these jobs are located outside the city and Milwaukee County. The city's recent unemployment rate for African Americans was the second highest rate in the Nation.

Market Conditions

In 1990 there were 254,204 housing units in Milwaukee, and about 5 percent were vacant. Efficiency and one-bedroom apartments have the highest vacancy rate (9 percent). Renters occupy about 48 percent of the occupied housing units. Nearly half of all occupied units were built before 1940, and 11 percent were considered substandard in 1990.

Between 1984 and 1993 the average assessed value of a single-family home remained relatively stable. In 1994 the average assessed value of a single family home was $59,894. In 1990 the average contract rent was $342 per month.

Affordable Housing Needs

Of 131,568 renters in 1990, 63,834 were very low-income, and 72 percent of these renters paid more than 30 percent of their gross income for housing expenses. Small families in the very low-income category were severely affected by rental costs, with 76 percent paying more than half of their income for housing. In 1990 there was a shortage of 21,377 housing units for households earning less than 30 percent of MFI.

Homeless Needs

Homelessness in Milwaukee has remained high during the 1990s because of high levels of unemployment and underemployment, insufficient affordable housing, and decreased care alternatives for persons with mental illness. During 1992 the Emergency Shelter Hotline received 4,244 calls, representing 12,823 people looking for emergency shelter. Of this figure 63 percent were single women with children, versus 42 percent in 1985. Furthermore, 43 percent of the callers cited evictions as the main reason for homelessness, and one-fourth were seeking shelter to escape domestic violence. In 1990 the 5 major providers of unspecialized emergency shelter served 7,000 persons with 404 beds, while turning away another 6,000 persons. Most of these shelters also reported that the average length of stay increased during 1990.

Public and Assisted Housing Needs

The Housing Authority of the City of Milwaukee (HACM) owns and operates 4,748 units of public housing and 12 units of Section 8 housing. About half of the public housing units are reserved for families, while the other half are reserved for the elderly. These units are generally in good condition, and HACM is currently using two Federal grants to complete modernization work. In 1994 HACM planned to replace 118 units at Hillside Terrace with 39 Section 8 certificates and 79 scattered sites. There are 1,222 elderly and 7,995 family households on the public housing waiting list, and the greatest demand among families is for two- and three-bedroom units.

In addition to operating public housing, HACM also administers the Section 8 certificate and voucher programs, which serve 1,062 elderly or disabled households and 3,667 family households. There are 437 elderly and 6,586 family households on the waiting list for rental assistance.

A total of 2,713 other HUD-assisted units are available in the city. Furthermore, HACM operates 968 housing units for veterans, and these units are not federally funded. There are 842 persons on the waiting list for veterans' housing.

Barriers to Affordable Housing

In 1992 a State Task Force on Regulatory Barriers to Affordable Housing, appointed by the governor, focused on State regulations. After four public hearings, the following concerns were identified:

• Preservation and recycling of the housing stock were becoming less frequent because government regulations were inflating the cost of maintaining current housing.

• A number of regulations encouraged the construction of larger, more expensive housing.

• Federal and State regulations were inflexible and unresponsive to local conditions.

• Some public decisionmakers had little interest in affordable housing.

The task force recommended that the State consider the impact of regulations on affordable housing when introducing new laws or rules, create a central access point for housing information, and introduce enabling legislation that would serve as a guideline for coordinating a local impact fee.

Fair Housing

A housing segregation index study reported that the Milwaukee metropolitan area was the Nation's most racially segregated residential area. Data from the 1991 Home Mortgage Disclosure Act reported that Milwaukee's mortgage denial rate for African Americans was significantly higher than the rate for whites. In fact, the denial rate for African Americans of all incomes was higher than the rate for low-income whites. Furthermore, financial institutions underserve certain primarily African-American neighborhoods, versus white neighborhoods of comparable size. A pattern of home insurance discrimination also exists in the city, and several recent lawsuits against major insurance companies have set precedents on the applicability of Fair Housing Laws to the insurance industry.

Lead-Based Paint

The 1990 Community Housing Affordability Strategy (CHAS) Databook reported that 183,670 households resided in housing units that contained lead-based paint and that 44 percent of those units were built before 1940. Much of the older housing stock, which poses the greatest risk of lead-based paint contamination, is occupied by persons earning less than 80 percent of MFI. Data from Milwaukee's Childhood Lead Poisoning Prevention Program have identified several cases of lead poisoning in housing units that were built before 1940.

The city is promoting a citywide approach that integrates lead-hazard inspection and federally funded housing rehabilitation projects. Work crews will be required to become State-certified lead abatement contractors before participating in these projects.

Other Issues

More than one-fifth of Milwaukee's households are headed by an elderly person, and over half of these households earn less than 80 percent of MFI. Elderly homeowners need assistance with maintenance, daily living activities, and accessibility, while elderly renters need assistance with rent and utility payments.

The Wisconsin Division of Health has projected that, by 1995, 16,372 persons in the Milwaukee area will have been infected with HIV. Based on the current level of services available and the demand for those services, persons with HIV/AIDS will need an estimated 195 one- or two-bedroom units, 338 studio units, and 150 units with accessibility modifications for persons with disabilities.

In 1992, 20,534 persons with chronic mental illness were treated in county support facilities. Recently, the waiting list for the Community Support Programs contained several hundred persons who needed appropriate housing.

Community Development Needs

Non-housing community problems include: the transition from manufacturing to low-paying service sector jobs, unemployment, increasing school suspension and dropout rates, teen pregnancy, substance abuse, violence against youth, violence perpetrated by youth, and environmental hazards.

Coordination

The plan reflects collaborations and coordinated activities that have occurred in Milwaukee in recent years under CHAS and the Empowerment Zone/Enterprise Community application. The Consolidated Plan was sent to other local governments in the Milwaukee area to solicit their feedback.

Housing Priorities

Homeownership high priorities include:

• Developing and maintaining homeownership throughout the city.

• Providing homeownership opportunities through new construction to attract and maintain moderate- and middle-income families.

• Helping very low-income families to obtain homeownership.

Rental housing high priorities include:

• Expanding efforts to help public housing and Section 8 residents to move into private market non-subsidized housing.

• Supporting the development and maintenance of affordable rental units, especially for large families.

• Providing better training, advocacy, and mediation services for landlords and tenants.

• Increasing the number of rental-assisted housing units and expanding their geographic distribution throughout the metropolitan area.

Homelessness high priorities include:

• Expanding supportive housing resources for persons with physical and mental disabilities, including alcohol and drug abusers, the frail elderly, and persons with HIV/AIDS.

• Maintaining and improving the availability of emergency shelter and transitional housing services available for homeless families and individuals.

Non-Housing Community Development Priorities

High priorities for creating safe, well-maintained neighborhoods include:

• Continuing planned aggressive efforts to eliminate blight.

• Supporting active citizen participation in monitoring problem properties and in organizing efforts to improve the quality of life.

• Integrating crime prevention into city services and capital improvements.

• Expanding aggressive efforts to combat lead hazards by collaborating with existing housing programs.

• Expanding efforts to eliminate graffiti on public and private property.

High priorities for coordinating public and private resources include:

• Coordinating housing and neighborhood development efforts with other human service and economic development initiatives.

• Expanding access to new resources for neighborhood development.

• Working with Milwaukee Public Schools to strengthen neighborhood schools.

High priorities for generating economic and community development include:

• Increasing the number of Special Impact Area (SIA) residents employed at jobs that pay enough to support a family.

• Making all reasonable efforts to link economic development and civic investments to recruiting, training, and placement of SIA residents and businesses.

• Enhancing technical assistance to new businesses.

Anti-Poverty Strategy

The city's anti-poverty strategy is the foundation of the Consolidated Plan. The strategy focuses on the revitalization of neighborhoods and the elimination of poverty by:

• Creating jobs through aggressive economic development activities.

• Supporting employment initiatives by promoting and implementing programs that support low-income persons who pursue and secure employment.

• Revitalizing neighborhoods by allocating resources that make a clear and measurable impact.

• Eliminating barriers to employment by cooperating with community stakeholders, such as educational institutions and transportation providers.

• Creating homeownership opportunities for all residents.

Better coordination of public and private resources will be needed to effectively implement these strategies.

Housing and Community Development Resources

In addition to CDBG, HOME, and ESG funds, the city will also have access to other Federal resources, such as: Section 8, Comprehensive Grant Program for public housing modernization, Shelter Plus Care, YouthBuild, HOPE 3, Weed and Seed, Title I Public Works, and School to Work. Community resources include the United Way, the Milwaukee Private Industry Council, and the Bader Foundation. State and local resources include the Community Housing Preservation Corporation Tax Credit Revolving Loan Fund, the Emergency Energy Assistance Program, and the Milwaukee County Home Repair Program.

Coordination of Strategic Plan

The Community Block Grant Administration is responsible for administering and monitoring the city's CDBG, HOME, and ESG programs. Many programs in the Consolidated Plan require the cooperation or joint administration of several city departments, such as the Police Department, HACM, the Small Business Administration, and the Department of Labor, Health, and Human Services. Many activities will be implemented by non-city organizations.

Description of Key Projects

During the first year of the Consolidated Plan, funds will be allocated to numerous projects, including:

• $1 million for a Micro Loan Guarantee Program to benefit 80 businesses and $1 million for a Small Business Investment Fund to offer loans for the creation or expansion of 25 small businesses.

• $2 million for a Housing Rehabilitation Revolving Loan Fund to assist 200 households.

• $5 million to prepare two public sites for Head Start and an alternative education program.

• $1.3 million for the HACM Housing Initiative, which will provide affordable rental housing to 130 low- and moderate-income households.

• $240,000 for the Commando Handicap Accessibility Program to remove architectural barriers, to construct wheelchair ramps, and to make other home modifications for 84 households.

• $230,000 to provide educational and recreational programming for 1,600 youth living in or near the Hillside and Lapham Park housing communities.

• $217,000 to provide temporary shelter and supportive services to 400 households that have children and are experiencing a crisis.

Locations

In general, Consolidated Plan funds will be concentrated in central Milwaukee, but many programs have been targeted to certain populations or neighborhoods. Specific areas targeted for community development or housing activities include: the 30th and Concordia Targeted Investment Neighborhood, the 9th and Washington Targeted Investment Neighborhood, the Second and North Avenue Targeted Investment Neighborhood, the Lisbon and North Avenue Targeted Investment Neighborhood, Merrill Park, and Metcalf Park.

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; in addition: a table provides information about the project(s).

MAP 6 depicts neighborhood streets, points of interest, unemployment levels, and proposed HUD funded projects, as described in the table under MAP 5.

MAP 7 depicts neighborhood streets, points of interest, unemployment levels, and proposed HUD funded projects, as described in the table under MAP 5.

MAP 8 depicts neighborhood streets, points of interest, unemployment levels, and proposed HUD funded projects, as described in the table under MAP 5.