Action Plan

West Virginia's Consolidated Plan presents a strategic vision for housing and community development on a statewide basis. It includes a One-Year Action Plan for spending approximately $33 million of Community Development Block Grant (CDBG), HOME Investment Partnership Program, Emergency Shelter Grant (ESG) and HOPWA funds, along with funds from the Appalachian Regional Commission (ARC) in 1995. These funds will primarily be spent on housing, infrastructure and public facilities, and community and economic development activities.

Citizen Participation

Citizen participation/local official consultation occurred at two stages in the planning process:

1. The Steering Committee conducted 6 public meetings around the state in the needs assessment phase to solicit local input on priority housing and community development needs and barriers. These meetings were held in Charleston, Beckley, Flatwoods, Fairmont, Wheeling and Martinsburg. In an effort to broaden participation by low income and minority populations, a copy of the meeting notice was direct-mailed to state and local organizations representative of these groups.
2. The executive summary of the proposed Consolidated Development Plan was circulated to all mayors, county commissions, and community action agencies for 30 day review and comment. The mayors and county commissions also received a copy of the full FY 95 Small Cities Block Grant Program Design. A complete copy of the Consolidated Development Plan was also placed in all county main public libraries and Regional Planning and Development Council offices, and a public notice of its availability for review and comment was published in all local newspapers.
3. Legal advertisements were placed and two public hearings were held to solicit local elected official and citizen input on the plan and consolidated program design in Charleston and Morgantown.

West Virginia's population growth rate during the first half of the twentieth century was similar to the U.S. rate, with each more than doubling in population. Since 1950, however, the national growth rate has increased significantly while West Virginia's has declined. Major contributing factors include the mechanization of coal mining and the replacement of steam locomotives with diesels, the oil embargo and energy crisis in the 1970s, and the national recession in the early 1980s. From 1990 to 1993, the state population increased by 1.5%, but lagged far behind the national growth rate of 3.7%.

Conditions

Between 1980 and 1990, West Virginia lost 8% of its population, with the largest losses occurring in the southern part of the state due to the shutdown and mechanization of the coal mines. When the unemployment rate hit 18% in 1983, many young adults and families left the state in search of employment. In addition to the southern coalfields, the areas with the heaviest population losses included the Northern Panhandle and adjacent areas, a few north-central counties, and the two most populated counties, Cabell and Kanawha. The state's population is aging rapidly, with population losses occurring in all age groups under 34, and increases in the 35-44, 65-74, and 75 and older age groups. Racial minorities constituted 3.8 percent of the state's population in 1990. Blacks constituted the largest proportion of this (83 percent), followed by Asian and Pacific Islanders (11 percent). Minority populations are heavily concentrated in the southern half of the state.

West Virginia's household and per capita incomes did not keep pace with the nation's income growth during the 1980s. The state had the highest poverty rate in the country in 1990. In 1979, the state's median household income was 86 percent of the nation's; by 1989, it had fallen to 69 percent. In 1979, there was a 19 percent gap between the state's per capita income and the nation's, but the difference increased to 37 percent by 1989. The U.S. poverty rate increased from slightly over 12 percent of the nation's total population in 1979 to only 13 percent by 1989, but the state's poverty rate increased from 15 to 20 percent during the same period. The areas with the highest poverty rates were the central interior region of the state and the southwestern coalfields.

Between 1980 and 1993, West Virginia's economy mirrored the nation's, recording decreases in manufacturing and mining jobs, and increases in the number of service and retail jobs. Recovery has not occurred to the same degree, however, and the state still has a large residual unemployment and large numbers have dropped out of the work force. Between 1980 and 1993, the state's unemployment averaged 11.6% while the national average was 7.1%. The 1993 rate was 10.8%, compared to the national average of 6.8%.

Housing Needs

Analysis of housing market trends in West Virginia points to the following major conclusions:

• There is significant need for programs serving first-time homebuyers. These needs have previously been addressed through mortgage reserve bonds (MRBs) sold by the state's housing finance agency. Given the recent congressional permanent extension of the MRBs, the ability to continue below-market interest rate financing for first-time homebuyers is assured. To further support first-time homebuyers, the state housing finance agency has also provided down payment assistance from agency funds. This assistance overcame one of the more significant impediments to first-time homebuyer ability by providing additional funds as a secondary loan to defray rising equity requirements and acquisition charges.
• The housing needs of the elderly will increase substantially in West Virginia. By the year 2000, persons 75 and older will represent 50 percent of all people over the age of sixty with the 85 and older group growing from 25,451 to 48.000 people.
• Specific needs of the elderly include:
• additional supportive or specialized housing;
• rehabilitation of substandard housing occupied by elderly renters and owners;

Affordable Housing Needs

The Consolidated Plan examines the number of households with housing problems from the 1990 Census. Four important findings were noted as follows:

• The 1994 CHAS estimates that over 153,685 households in West Virginia, or about 22% (1 in 5) had housing problems. Of this total, 132,729 households (86 percent) were low income households, defined as 80 percent or less of HUD-Adjusted Median Family Income (HAMFI), and were thus eligible for HUD housing assistance. Forty-four percent of all low income households had housing problems.
• Not surprisingly, housing problems get worse as income levels decrease.
• Among low income owner households, the highest incidence of housing problems occurs in large related family households (56 percent experience housing problems), followed by small related families at 41 percent, and elderly households at 26 percent. In absolute numbers, however, small families comprise the largest block of need (26,965 households), followed closely by elderly households (23,539 households) and large families (8,067 households). Elderly Hispanic and other Hispanic owner households experience a disproportionate incidence of housing problems.
• A similar pattern may be observed with respect to low income renter households, with large families again having the highest incidence of housing problems (70 percent), followed by small families at 58 percent, and elderly households at 49 percent. Small family households, however, comprise the largest number of renter households with problems (27,362), followed by elderly households (13,980) and large families (6,690). Large family Hispanic and elderly Hispanic renter households experience a disproportionate incidence of housing problems.

Five Year Projections

With the exception of the two subareas discussed below, the state does not expect significant changes in its housing needs of current or expected-to-reside residents over the five-year period covered by the CHAS. These two subareas are expected to experience substantial growth during the 5-year planning period, while the remainder of the state is expected to experience minimal population change.

• The Eastern Panhandle region of Berkeley, Jefferson and Morgan Counties is the fastest growing region of the state due to spillover from the suburban Washington, DC area. It should be noted that Berkeley and Jefferson Counties were designated part of the Washington, DC Primary Metropolitan Statistical Area (PMSA) in 1991.
• The northernmost sixty (60) miles of 1-79 in the state is experiencing growth pressures from expansion of West Virginia University and associated medical facilities (Monongalia County), the NASA facility (Marion County), and the FBI Criminal Identification Center.

Homeless Needs

An updated estimate of homeless populations and subpopulations was prepared by the WV Office of Economic Opportunity via a survey of persons served by the various shelters throughout the state during FYs 93 and 94. The survey indicated that there were 10,735 total homeless persons in West Virginia during the reporting period. West Virginia's homeless population included 6,854 (64 percent) adults 18 years and older; 2,216 (20 percent) families with children; and 1,725 (16 percent) single persons under 18. The great majority of homeless persons served (97 percent) were housed in emergency shelters. Reception/day centers provided services to 1,567 persons, and 43 persons were housed in transitional housing. Survey data indicates that approximately 78 percent of the homeless population are white, 19 percent are black, 1 percent are Hispanic and Asian, respectively, and less than 1 percent are Native American.

Public and Assisted Housing Needs

The State's Public Housing Authorities offer services to individuals and families including rehabilitation and construction of residential housing (multi-family) and self sufficiency programs. Seventy-six public housing projects exist in the state with a total of 6,876 units. The state does not own or operate any public housing. The state also has no responsibilities related to the monitoring of activities of the coalition of Public Housing Authorities across the state and, therefore, is not qualified, and is not required by HUD, to address the revitalization needs of public housing in the state. However, based on visits by HUD field representatives to public housing sites across the state and contact with managers and residents, the state believes much of the public housing is in need of substantial rehabilitation and modernization due to the age of structures and lack of adequate building maintenance.

Barriers to Affordable Housing

Generally, the state identifies only two major obstacles to addressing housing-related needs: lack of sufficient funds and insufficient capacity to deliver housing programs. At current federal, state, and private funding levels, there is not enough money to address the documented housing needs across the state. This is a problem that realistically may never be overcome and can be assisted only by the actions of Congress and the evolution of a more viable state economy. The lack of program capacity can be overcome with time. Non-profit housing organizations and other housing-related entities are increasing daily their ability to provide assistance to low-income families and individuals. Contrary to popular opinion, excessive regulation is not creating or adding to the housing problem, but rather the lack of effective, meaningful regulation is a large factor in continuing to prolong the state's problem of substandard housing conditions.

Lead-Based Paint

The state estimates that of the 465,167 housing units built prior to 1960, 72,987 are in some disrepair and may have old, cracking and/or peeling paint contributing to a lead poisoning hazard. Of the approximately 134,449 children under six years of age in West Virginia, 31.7 percent live below the poverty line. Based on a study conducted by the Bureau of Public Health, Office of Maternal and Child Health (OMCH), the percentage of elevated lead blood levels found among those children living below the poverty line suggests that 21,512 children under six years of age have an elevated lead blood level.

Other Issues

In the State of West Virginia, at the end of 1993, there were 648 reported cases of AIDS. The West Virginia Department of Health and Human Resources estimates that as of this date the number has risen to 674 reported cases. It is well known that the privacy laws respecting the public's right to keep personal illness undisclosed is masking many more HIV and AIDS cases heretofore not reported. It is not without possibility that the estimated number given could be less than half of the true cases involved within the state. Survey results suggest there are approximately 186 HIV/AIDS infected persons who are homeless and therefore in need of housing assistance.

Special population needs include supportive housing needs of the elderly and frail elderly, mentally ill, physically and developmentally disabled, and persons with alcohol and/or drug addiction. The 1994 CHAS estimates that 109,162 such persons are in need of housing assistance. These estimates are based on service information contained in several state agency plans. The challenge for policy formulators and developers of supportive housing in the nineties will be to create a living environment which allows "special needs" residents the opportunity to be socially and physically active for as long as possible.

Community Development Needs

• Economic Development;
• Infrastructure;
• Public Facilities and Services;
• Community/Neighborhood Revitalization.

Coordination

There are over 142 local economic development organizations in West Virginia. Despite the abundance of business/industry service organizations in the state, many local development organizations are underfunded, lack professional staff, or need professional training. Many organizations could benefit by pooling their meager resources into larger, more efficient regional development organizations. A need for better coordination and sharing of information among organizations, particularly through computer networking, is very apparent. Rather than simply creating new development organizations, there is a need to expand the service capabilities of existing ones. Some agencies also need to do a better job of marketing their services.

Vision for Change

The State of West Virginia's Consolidated Development Plan provides a comprehensive strategy framework for addressing state housing, community, and economic development needs. The development strategy is framed around the following three broad national goals espoused by HUD:

1. Expanding economic opportunities;
2. Providing decent, affordable housing;
3. Providing a suitable living environment.

The strategy framework consists of the following elements:

• Goals, objectives and implementing actions/programs to be undertaken cooperatively by state and local agencies, and private sector organizations to address identified needs;
• A comprehensive strategy for funding recommended actions/programs which identifies priorities for use of HUD and ARC funds, along with other public and private sector resources which may be utilized/leveraged to accomplish stated objectives;
• A strategy for institutional coordination in implementation of the plan.

Housing Priorities

The state's priorities for housing assistance are based on the extensive analyses in the 1994 CHAS plus input from citizens, local officials and interest groups at the 6 consolidated plan public meetings.

Objective 1:	expand home ownership opportunities in the State;
Objective 2:	improve the quality of existing owner-occupied housing in the State;
Objective 3:	increase the supply of affordable rental housing units in the State;
Objective 4:	provide a continuum of care to homeless persons and low income HIV/AIDS victims designed to meet their basic physical needs, provide a safe, supportive, dignified living environment, and assist them to achieve maximum independence;
Objective 5:	meet the housing needs of persons with disabilities;
Objective 6:	reduce the hazard of lead-based paint poisoning in housing in West Virginia.

Non-Housing Community Development Priorities

Objective 1:	expand financial assistance and management support services for business formation, retention and expansion;
Objective 2:	increase the availability and readiness of viable sites for business and industry;
Objective 3:	improve the general business climate and effectively market the state of West Virginia as a location for business;
Objective 4:	develop a world-class workforce that is well-educated and appropriately trained for the job market;
Objective 5:	coordinate and strengthen local economic development efforts;
Objective 6:	increase the availability of health care in underserved areas and increase the awareness and use of health care by high risk population groups in the state;
Objective 7:	maximize library and recreation services for all West Virginians regardless of geographic location or socio-economic level;
Objective 8:	prevent and reduce poverty among the state's population;
Objective 9:	make targeted transportation improvements designed to stimulate the economic development of the state and its regions;
Objective 10:	assist communities to plan and develop adequate water, sewer, and solid waste disposal facilities to support economic growth and a healthful living environment;
Objective 11:	assure a safe, secure living environment for all West Virginians;
Objective 12:	promote the physical and economic revitalization of West Virginia's communities, neighborhoods, and downtowns;
Objective 13:	increase the capacity of local communities to plan and manage their own affairs.

Anti-Poverty Strategy

Poverty is a major issue in West Virginia. The state will never close the substantial economic gap that exists with the rest of the country until it upgrades the condition of its poorest people. Major conclusions regarding anti-poverty needs are summarized below.

• A total of 345,093 West Virginians or 19.7 percent of the state's population (1 in every 5 persons) had incomes below the poverty level in 1990, compared to 13.1 percent for the United States; 25.9 percent of all related children under 18 (1 in every 4) lived in poverty, compared to 17.9 percent nationally; 16.7 percent of all persons 65 and over were impoverished, compared to 12.8 percent nationally. Moreover, poverty is on the rise. Recent estimates by the U.S. Department of Commerce placed the state's poverty rate at 22.2 percent in 1993, ranking 3rd nationally.
• It is generally acknowledged that traditional approaches to combating poverty have essentially failed to address the core causes of poverty, and a paradigm shift is needed in state and federal antipoverty efforts -- one that moves from "maintenance" toward "self-sufficiency" as the goal. This will require better coordination and use of existing resources to this end; welfare reform to curb abuses in the system, encouraging families to stay together, and providing incentives to work; provision of stronger incentives to business to train and employ low income and disadvantaged persons, and stronger emphasis on assistance to families with children in terms of child health and nutrition needs, day care, transportation, and education/job training/employment assistance. The system must also continue to serve the basic health, housing, and nutritional needs of persons for whom self-sufficiency is not an option -- particularly low income elderly and disabled persons.

Housing and Community Development Resources

Within the State of West Virginia, 24 Federal, 23 State, 5 local match programs and a myriad of private efforts currently provide services to the communities around the state. The primary Federal resources from HUD include CDBG, Section 108, HOME, Section 8, public housing, Emergency Shelter Grants, Shelter Plus Care, Enterprise Community and EDI funds and the Supportive Housing program. The ARC provides a number of grant programs and other types of assistance to communities throughout the state. Local resources include Redevelopment and Housing Authority programs and the Mortgage Tax Credit Certificate Program. Private programs include local lending institutions' affordable housing programs and a wide range of nonprofit initiatives.

Coordination of Strategic Plan

The consolidated planning process is administered and coordinated by a steering committee comprised of the principal state agencies responsible for administering HUD and ARC grant programs as well as state fair housing laws.

Description of Key Projects

The purpose of the Consolidated Action Plan is to describe the state's method for distributing funds to local governments to carry out activities, or the activities to be undertaken by the state, using funds that are expected to be received under formula allocations and other HUD assistance received during program year 1995.

CDBG Program

The WVDO anticipates receiving $21,859,000 in CDBG Small Cities funds for FY 95, to be allocated to non-entitlement units of (general local government as follows:

State Administration	$537,180
Technical Assistance (State)	218,590
Letters of Intent to Fund from FY 1995	5,000,000
Community First (EZ/EC) Program	5,000,000
Community Development Program:	11,103,230
(New Water and Sewer Projects)	10,000,000
(Available for Other Projects)	1,103,230
Grand Total	$21,859,000

The above distribution reflects the state's intent to give emphasis in funding to the following types of activities:

• job creation or retention activities with emphasis on public infrastructure projects that support economic development projects and/or the provision of industrial sites and buildings;
• public infrastructure development projects with emphasis given to water and sewer projects that meet local health or environmental needs;
• comprehensive or single purpose community development projects with emphasis towards neighborhood and or downtown revitalization planning and development projects. Projects in support of the West Virginia Main Street Program will be given additional value;
• Support for implementation of eligible, high priority projects identified in EZ/EC strategic plans.

Grants awarded under the Letters of Intent category constitute the second year of a 2-year funding commitment and are non-competitive. The Community First Program category constitutes a commitment to assist non-entitlement Enterprise Zone/Enterprise Community applicants, and is likewise non-competitive. Funding under the Community Development Program (new water and wastewater, and other projects), however, is competitive.

HOME Program

The West Virginia Housing Development Fund anticipates receiving $8,702,000 in HOME funds to be allocated as follows:

Administration (10%)	$870,200
CHDO (15%)	1,305,300
HOMErent (Multifamily)	1,000,000
HOMErepair/NewHOME (single family)	5,526,500
Grand Total	$8,702,000

The state has elected to focus its HOME Program resources on two areas of identified need: repair of substandard owner-occupied homes (HOMErepair) and new home ownership opportunities (NewHOME). The state will use a portion of its HOME allocation (HOMErent) to fund 2 multifamily rental projects previously committed in principal. Finally, the state will set aside 15 percent of its HOME allocation for Community Housing Development Organization (CHDO) projects, as required by law. CHDOs will not be limited to the single-family focus for their projects. Geographically, funds will be available statewide consistent with the existing network of public and private nonprofit and for-profit originators. Any residual funds from prior allocations, program income, and the FY 95 allocation (if received) will be initially committed to funding the existing approved applications for owner-occupied rehabilitation. The balance will be allocated to approved originators for use under the FY 95 HOME program guidelines.

ESG Program

Emergency Shelter Grant Program (ESGP)	$972,000
Supportive Housing Program (SHP)	1,000,000
Grand Total	$1,972,000

The state will make ESGP funds available to local governments by competition. The localities will then subgrant the funds to the local shelters and community action agencies. ESGP grants are contracted in two year increments, and are subject to annual review by the State. In FY 1995, OEO estimates that of the $972,000 available, approximately $243,OOO of these funds will be spent on rehabilitation and repair of new or existing shelters, $619,500 will be required for maintenance, operations, and equipment budgets throughout the West Virginia Homeless Shelter Program (WVHSP), and the remaining S109,500 will be divided into Essential Services and Homeless Prevention grants.

OEO intends to use Supportive Housing Program funds to implement two transitional housing programs now in the planning stage. SHP funds will assist local government agencies in establishing these housing units, and assist in allowing homeless families to move from local shelters into their own supportive apartments. Future maintenance, operations, and equipment funds will be channeled from the ESGP to assist in the annual budgeting of these units.

HOPWA Program

WVOEO anticipates distributing $408,717 in HOPWA funds for FY 95. OEO intends to contract with Covenant House of Charleston, West Virginia, as project sponsor, to provide housing and support services to HIV/AIDS victims at two sites -- Covenant House in Charleston, and a yet unnamed site located in Morgantown. A third site will be located either in Martinsburg or Parkersburg depending upon the cost of the land involved in the location.

Lead Agencies

• West Virginia Development Office;
• West Virginia Housing Development Fund;
• West Virginia Office of Economic Opportunity;
• West Virginia Human Rights Commission.

Housing Goals

• Construct and/or acquire and rehabilitate 150 single family housing units in FY 95 for occupancy by low income, first time homebuyers, giving priority to those who are currently residing in subsidized rental units.
• Provide home ownership counseling to families/individuals eligible for assistance under the State's home ownership programs.
• Provide for rehabilitation of 60 owner-occupied housing units in disrepair in FY 95, with emphasis on the elderly, large families with children, and those marginally sheltered rural homeless households in the very low-income group.
• Increase home rehabilitation funding options for families/individuals in West Virginia.
• Assist existing rental subsidy tenants in becoming first-time homeowners, thereby freeing up rental subsidies for families/individuals in need of such assistance.
• Increase the stock of decent, affordable rental housing through construction and/or selective rehabilitation of 22 rental units in FY 95, with special emphasis on areas where extreme shortages of both subsidized and market rate rental units exist.
• Continue to support the existing statewide network of emergency shelters for homeless persons and victims of domestic violence, and add an additional 3 homeless shelters and 3 domestic violence shelters in rural, underserved locations by the end of the 5 year planning period.
• Implement a transitional housing program in at least 3 counties totaling 100 units by the end of the 5 year planning period.
• Provide scattered-site residential housing and related support services to low income HIV/AIDS victims in at least three counties serving at least 100 persons per year.