Loading...
HomeMy WebLinkAboutR-1999-142 2000 Consolidated Annual Performance and Evaluation Report (CAPER); Office of Neighborhood Development ServicesRESOLUTION NO. R-99- 142 A RESOLUTION approving and adopting a One Year Action Plan for 2000 and a Consolidated Plan for years 2000 - 2004 regarding use of Community Development Block Grant funds and HOME funds and authorizing the City Manager to submit said Plans to the Untied States Department of Housing and Urban Development. WHEREAS, the City of Yakima receives Community Development Block Grant (CDBG) funds and HOME funds from the United States Department of Housing and Urban Development ("HUD"); and WHEREAS, as required by HUD regulations, the City of Yakima is required to adopt a five year Consolidated Plan for use of said CDBG and HOME funds during 2000 - 2004; and WHEREAS, as required by HUD regulations, the City of Yakima is also required to adopt a One Year Action Plan for use of said CDBG and HOME funds during 2000; and WHEREAS, said Consolidated Plan and One Year Action Plan describe housing and community development objectives and activities that may be funded with CDBG and HOME funds: and WHEREAS, the attached Consolidated Plan and One Year Action Plan have been developed after extensive research, public input (including a thirty (30) day public comment period), and discussion with various other public agencies; and WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to approve and adopt the attached One Year Action Plan for 2000 and attached Consolidated Plan for 2000 — 2004 regarding use of CDBG and HOME funds, and authorize submission of said Plans to HUD, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The attached and incorporated Consolidated Plan for 2000 — 2004 and One Year Action Plan for 2000 regarding use of Community Development Block Grant and HOME funds are hereby approved and adopted. Further, the City Manager is hereby authorized and directed to submit said Plans and corresponding application documents with the United States Department of Housing and Urban Development for approval. The City Manager is hereby designated as the official representative of the City to act in connection with the 2000 - 2004 Consolidated Plan and the One Year Action Plan for 2000. Furthermore, the City Manager is hereby authorized to execute all contracts, deeds, notes, mortgages, and other documents required to carry out eligible programs funded through the One Year Action Plan for 2000. ADOPTED BY THE CITY COUNCIL this 16th day of November, 1999. ATTEST: City Clerk John fuccinelli, Mayor CITY OF YAKIMA, WASHINGTON GpNgOLIDATED ANNUAL PERFORMAycip 2000 q% EVALUATION REPOO DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT Mary Place, Mayor Richard A. Zais, City Manager William R. Cook, CED Director William Cobabe, ONDS Manager March 15, 2001 CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT FY 2000 TABLE OF CONTENTS I. INTRODUCTION 3 II. SUMMARY OF RESOURCES AND ACCOMPLISHMENTS 7 A. HOUSING ACTIVITIES B. NON -HOUSING COMMUNITY DEVELOPMENT ACTIVITIES C. PROGRAM HIGHLIGHTS AND LEVERAGING ACCOMPLISHMENTS III. COMMUNITY DEVELOPMENT BLOCK GRANT- 9 A. HOUSING 1. SENIOR & DISABLED PERSONS HOME REPAIR PROGRAM 2. PAINT PROGAM 3. GRAFFITI ABATEMENT PROJECT AND ALLEY CLEAN UP PROGRAM. 3. SINGLE FAMILY REHABILITATION 4. DEBT SERVICE PAYMENT FUND 5. RELOCATION B. ECONOMIC DEVELOPMENT C. INFRASTRUCTURE D. SIDEWALK PROGRAM E. COMMUNITY SERVICE PROGRAM F. HOUSING COUNSELING G. PUBLIC FACILITIES IV. HOME PROGRAM 13 A. SINGLE FAMILY HOUSING REHABILITATION B. HOMEOWNERSHIP, NEW CONSTRUCTION C. DOWN PAYMENT ASSISTANCE PROGRAM D. ACQUISITION/RESTORATION E. LOT ACQUISITION F. COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) G. FINANCIAL MATCH REQUIREMENT H. AFFORDABLE HOUSING I. NON-FEDERAL HOUSING EXPENDITURES V. FAIR HOUSING REPORT ----- -16 A. IMPEDIMENTS TO FAIR HOUSING CHOICE B. MINORITY OUTREACH C. AFFIRMATIVE MARKETING VI. CONTINUUM OF CARE - VII. SELF EVALUATION ------ VIII. EXHIBITS-------------------. 2 18 19 -21 CITY OF YAKIMA Consolidated Annual Performance and Evaluation Report (CAPER) FY 2000 This document combines the required annual reports for the Federal programs for which Office of Neighborhood Development Services (ONDS) is responsible within the City of Yakima — Community Development Block Grant (CDBG) and HOME Investments Partnerships. I. Introduction The purpose of the Community Development Block Grant Program is to assist in developing viable urban communities by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons of low and moderate income. The program has a number of objectives, including: • Improve public facilities. • Expand economic opportunities. • Provide decent housing. • Provide needed public services. • Leverage CDBG funds with other public and private resources. There is a requirement that at least 70% of CDBG funds be spent on projects benefiting low/moderate income persons (i.e., persons at or below 80% of area median income.) All CDBG funded activities must comply with more than 20 Federal statutes. (See attached. exhibits.) The City of Yakima has been participating in the CDBG program as an entitlement community since 1976. In 1975 the Office of Neighborhood Development Services of the City of Yakima, WA was created. The following are activities and services that this department has participated in with much success and progress: 3 • Provide assistance to approximately 1,8671ow/moderate income families. Approximately one third of these families had incomes less than 50% of the median income for our area, and one half were of minority groups. • Invested over $44,221,667 in our community from federal, state, and local funding sources; including $21,921,000 from Community Development Block Grant (CDBG) • With CDBG and HOME funds, assisted 339 homebuyers with the purchase of their first home. Assisted 193 low/moderate income families in the rehabilitation of their single-family home. • Using $1,906,194 of HOPE 3 Program funds, assisted other first time homebuyers within the city. As a result of these, and other efforts, the City of Yakima was presented with the All American City Award in 1994. • Provided $1,082,469 in assistance contracts to area non-profit organizations. • Participated in the Emergency Shelter Grant program to assist homeless persons. • Reinvested over $4.8 million of program income, earned as a result of the above itemized activities, in additional assistance to area residents. • More than 24 area social service activities were funded for a total investment of $2.2 million. • In excess of $2.5 million dollars in total funds has been expended on CDBG infrastructure projects including street lighting, curb and gutter, recycling, park improvements, community gardens, canal improvements, neighborhood clean up, diversion dams, irrigation lines. • A combined water and sewer project for the Fruitvale area has been started. Funding is anticipated this Spring, with ONDS providing match funds for a State of Washington loan. 4 The HOME program also has several objectives: Provide decent affordable housing. Expand the capacity of nonprofit housing providers. Strengthen the ability of state & local government to provide affordable housing. Leverage private sector participation. Recently, in order to increase the effectiveness of entitlement programs, HUD has begun requiring an annual report known as the Consolidated Annual Performance and Evaluation Report (CAPER). This report is a summary of the performance and accomplishments of the City of Yakima CDBG program for the 2000 funding year. The report includes an evaluation of the use of resources including CDBG and HOME Investment Partnerships received by the City. The CAPER combines several previous annual reports into a single document, and includes the use of maps, charts and graphs to more effectively communicate accomplishments. The CAPER includes a narrative and a financial report section. The narrative statements must address the following areas: assessment of 3 to 5 year goals affirmatively furthering fair housing affordable housing continuum of care for the homeless other actions indicated in the grantees strategic and action plans leveraging resources citizen comments self evaluation Additional statements must identify: The relationship of the use of CDBG funds to priorities, needs, goals and objectives identified in the Consolidated Plan. Nature and reasons for any changes in program objectives. Efforts of the grantee to carry out activities described in its Action Plan. Activities involving acquisition, relocation, and displacement. Activities generating program income. Rehabilitation activities. Regarding the HOME program statements must identify Dollars for different programs Match funds Minority Business Enterprises and Women Business Enterprises contracts 5 (A business that is both owned and controlled by minorities or women and in which no less than 51 percent minority/women ownership of the business and the minority/women ownership must control the management and daily operations of the business.) Programs identified in the 2000 Action Plan were: 1. Single Family Housing Programs 2. Infrastructure upgrades and improvements 3. Sidewalks 4. Enhancement of community service programs 5. Paint and Graffiti 6. Provision of additional safe, clean, and decent affordable housing 7. Public Facilities 8. Economic development activities 9. Housing Counseling 10. Senior Repairs During 2000 the City of Yakima effectively utilized its Community Development Block Grant (CDBG) and HOME funds to undertake a variety of programs, projects and activities designed to address housing and community development needs in Yakima as identified in the Consolidated Plan. All FY 2000 CDBG and HOME activities met one or more of these goals. The accomplishments of the City of Yakima in FY 2000 were consistent with the Consolidated Plan 2000 Action Plan high-priority community development and housing objectives. In this report, the accomplishments of City of Yakima's CDBG and HOME programs will be presented in a variety of ways, including project descriptions, maps and tables of data. 6 II SUMMARY OF RESOURCES ANI) ACCOMPLISHMENTS For FY 2000 the City of Yakima received the following funds from HUD: • Community Development Block Grant (CDBG) $1,009,000 • HOME Investment Partnerships Program (HOME) $ 545,000 The city also had the following funds available to complete programs and projects in FY 2000: • Prior years' CDBG carry forward $ 211,349 • Program income - from revolving loan funds (CDBG) and uncommitted funds $ 186,442 • Prior years' HOME carry forward $ 549,362 • Program Income — from revolving loan funds (HOME) and uncommitted funds $ 98,343 TOTAL $1,045,496 The overall goal of the City's consolidated plan for community development, housing, homeless, and special needs are to principally serve very low, low, and moderate income persons included the following: • Provide decent housing • Create a suitable living environment • Expand economic opportunities The City used federal, state and local resources to advance these goals. Of these funds, the City of Yakima expended $1,061305.06 of CDBG and $837,963.01 of HOME funds on various housing and non -housing community development programs, projects and activities in FY 2000. The various programs and activities described below meet, in whole, or in part the spirit of these strategic goals. In the area of affirmatively furthering fair housing, the city has one of the only housing counseling programs east of the Cascades. Our record of assisting persons from minority groups and those with very low incomes demonstrates the success of our efforts in this area. 7 A. HOUSING ACTIVITIES Housing initiatives included all programs, projects and activities assisted though the HOME programs and CDBG funded housing programs. Housing related expenditures were the following: ACTIVITY Single Family Rehabilitation Down Payment Assistance Acquisition/Restoration Lot Acquisition Community Housing Development Organizations Homeownership - New Construction Paint Program and Graffiti Abatement Project Single Family Rehabilitation Debt Service Payment Senior/Disabled Home Repair Housing Counseling Relocation Assistance Operations TOTAL For a description of these projects, please see page 9. EXPENDITURE (HOME) $ 81,207 (HOME) $ 271,275 (HOME) $ 137,228 (HOME) $ -0- (HOME) $ 121,439 (HOME) $ 226,814 (CDBG) $ 10,257 (CDBG) $ 27,996 (CDBG) $ 205,000 (CDBG) $ 75,709 (CDBG) $ 11,017 (CDBG) $ -0- (CDBG) $ 676,627 $1,844.569 B. NON -HOUSING COMMUNITY DEVELOPMENT ACTIVITIES Non -housing community development initiatives included CDBG funded Public Facilities $80,531, Infrastructure Program $19,245, Sidewalk Program $75,885, Community Service Program $95,895, and Economic Development Program $32,500. The Infrastructure, and Sidewalk Programs were undertaken and implemented directly by the City of Yakima Office of Neighborhood Development Services. Community Service and Economic Development Programs were undertaken and implemented in partnership with subrecipient organizations. The subrecipient provided the service and ONDS provided oversight and technical assistance. C. PROGRAM HIGHLIGHTS AND LEVERAGING ACCOMPLISHMENTS Habitat for Humanity developed single-family homes and Clean House Association provided 16 housing units from a variety of funding sources. In FY 2000, local banks loans leveraged over 5.4 million dollars with city and federal funds for housing projects. 8 The City of Yakima actively leveraged funds from a variety of public and private sources for its housing and non -housing community development activities. Private partners in this effort included: • US Bank • Yakima Federal Savings & Loan Association • Bank of America • Pioneer Bank • Pacific One • Continental Savings Bank • Central Valley Bank • Banner Bank III. COMMUNITY DEVELOPMENT BLOCK GRANT The following are specific accomplishments under CDBG programs or projects in City of Yakima for FY 2000. The projects are identified in the 2000 action plan of the consolidated plan and in previous section II. No changes were made to either the Consolidated Plan or Action Plan A. HOUSING: 1. Senior and Disabled Person Home Repair Program This program provided $75,709 of funds for materials and direct costs for repair to owner/occupied, low-income senior and disabled persons in the City of Yakima. Staff from the Office of Neighborhood Development Services completed repairs and contracted out specialized work. In 2000, $80,000 of budgeted funds were expended for operations and materials to repair 24 regular senior homes, and completion of 8 emergency repairs. 2. Paint Program In FY 2000 a separate Single Family/Elderly Paint Program was initiated. In prior years this program was included with the Elderly/Disabled Repair Program. The Paint Program has grown considerably and now has its own fund line. During the FY 2000 11 single-family elderly applicant homes were painted using volunteer labor. The total volunteer hours for 2000 were 4647 hours. These hours are used as HOME Program Match in the amount of $46,470 match credit. In FY 2000 $36,526 was budgeted for the Paint Program and $11,069 was expended in FY 2000 with the balance of $25,457 being encumbered for FY 2001 activities. 9 3. Graffiti Abatement Project and Alley Clean Up Program An all to obvious issue in Yakima is graffiti. Early in the year a group began meeting to develop a campaign to overcome the problem. This resulted in the Mayor, Mary Place, declaring April to be "Paint Out Graffiti Month." It was decided that volunteers would gather each Saturday morning in April, and then go out into the community with paint, brushes, and rollers. The response was wonderful. Graffiti was eliminated for a time in a large area of the city. Over 100 volunteers turned out each Saturday. Total value of donated time, paint, and other material, exceeded $30,000! Also in 2000, ONDS participated in a 3 division City Partnership. In coordination with City Code Administration and City Refuse division, we contracted with the County Jail for a detainee crew to work at removing garbage and other debris from Target Area alleys. During Summer and Fall of the year crews removed 58.36 tons of garbage, 208 tires, 42 appliances, and an additional 2.37 tons of appliances, The program was so successful, it will be repeated in 2001. Total cost from CDBG dollars was $1,551. 4. Single Family Rehabilitation This program budgeted $90,000 of CDBG to assist low and moderate income families to rehabilitate their primary residence in the City of Yakima target area neighborhoods. Two homes were rehabilitated. One three bedroom home for a Hispanic family with a disabled child and a four bedroom home for an African American single mom with 5 children at. An additional house is currently under construction with projected completion in early 2001. In 2000, $27,996 CDBG (and private funds) were expended, for oversight, coordination and rehabilitation for 2 single-family homes, the balance of $62,004 being encumbered into FY 2001. 4. Debt Service Payment Fund This is the repayment of principal and interest on bonds issued in 1991, 1992, and 1993, used to assist in the acquisition of homes for low/moderate income first time homebuyers. In 2000, $205,000 was expended on this program. 10 5. Temporary Relocation Assistance This Program provided $-0- of financial assistance for temporary relocation of low and moderate -income families displaced during the rehabilitation of their home. B. ECONOMIC DEVELOPMENT This program budgeted $145,200 of CDBG funding to promote economic development program activities to address the need for sustainable employment opportunities. The City of Yakima developed a minority and women owned business -lending initiative. The lending initiative is a program created to support the expansion and startup of minority and women owned businesses that are certified by the Washington State Office of Minority and Women's Business Enterprises. Washington Association of Minority Entrepreneurs (WAME) located at 24 South 3rd Avenue, is the subrecipient organization administrating the loan program. In 2000 this organization formally changed its name to Rural Community Development Association (RCDA). One loan was closed in 2000, for a total of $25,000. In 2000, $7,500 was expended through this program for administration and operations. Through.,a combined effort of the City, New Vision, and others, a successful effort was made to attract a technical support center to downtown. This new business will ultimately hire as many as 450 persons, with an annual local payroll of $9 million dollars. In 2000 $140,000 was set aside for Client Logic and will be carried forward to 2001. It is expected to be disbursed in 2001. C. INFRASTRUCTURE PROGRAM This program budgeted $103,490 for assistance to low and moderate -income families in the City of Yakima to improve street signage, crosswalks, and new side sewer and water line connections. In 2000, 10 single family residences installed side sewer lines and connected to the new sewer main, in the target area neighborhood. A total of $19,245 was expended in 2000. The balance of $84,245 being encumbered in FY2001. $75,000 each year for 3 years is obligated for infrastructure assistance on Fruitvale projects. 11 D. SIDEWALK PROGRAM This program budgeted $143,046 funds to construct and improve sidewalks in target area neighborhoods. A sidewalk project on South 7th Street was completed in the amount of $16,508. New sidewalk of 350 lineal feet was installed improving pedestrian traffic for the neighborhood. Currently, installation of 820 lineal feet of new sidewalk on the intersection of North 4 Street and East "I" Street is underway to be completed in early 2001. In 2000, $53,318 was expended for City of Yakima 9th Street and B Street Project. In 2000, $75,885 including operations was expended on this program, with the balance of $67,161 to be encumbered into FY 2001. E. COMMUNITY SERVICE PROGRAM This program budgeted $201,753 to provide funds to existing, or new organizations to create or expand programs focused on target area youth including, but not limited to, day care, school to work programs, recreational opportunities, reading and other academic tutoring. A study of local youth was conducted. The intent was to redesign our applications and programs to better serve area youth. Funds were carried forward pending completion of this process in 2001. Five community service projects were awarded in 2000. 1. Best SELF, a Yakima County program aimed at summer education for children, presented in a fun and recreational format was provided in part with HUD funding through ONDS. This valuable program does much to help families. $18,969. 2. The Youth Financial Fitness Program is part of the ONDS leadership development Plan. It targets at risk mature youth who are juniors or seniors in high school or college freshmen and are enrolled full time in school. It provides 25 hours of business management training designed to help equip these youths for the job market. This program is provided by Rural Community Development Association (RCDA), formally known as WAME. A women and minority owned/operated business. $25,308. 3. The YWCA Cell Phone Program provides cell phones to battered women to summon help in case of an emergency. ONDS was instrumental in directing funding for this valuable, potentially life saving, program. $9,000. 4. The Discovery YMCA program offers transportation from the Southeast Community Center in the heart of the target area to the Yakima YMCA. It 12 provides neighborhood youth with access to the benefits of this downtown facility. $20,000. 5. The Yakima County Substance Abuse Coalition and the City of Yakima Parks and Recreation Division have the unique opportunity to partner with the Yakima School District to provide a transitional after school program at Garfield Elementary School. Recognizing the critical importance of quality after school programs in the lives of children, their families and our community. $50,000. F. HOUSING COUNSELING AND REFERRALS This program budgeted $18,287 for staff and materials to counsel and refer persons to appropriate entities on home buying, housing discrimination and landlord/ tenant rights and responsibilities and other grant funded programs. In 2000, more than 20,000 telephone calls, walk-in clients, and other inquires, were received. G. PUBLIC FACILITIES Playground equipment was purchased for Cherry Park located at North 4th Avenue and Cherry Avenue. The Fire District #13 Station located at 1216 East Race Street, was rehabilitated for youth training through the Skill Center Fire Fighter Program (YVCC). The building is also open to the surrounding residents for neighborhood meetings. In 2000, $78,800 was budgeted for this program and of this $66,800 was spent and $12,000 will be used in 2001 to provide security lighting to target area parks. IV HOME PROGRAM In FY 2000, the City of Yakima had a total HOME budget of $1,178,888, of which it expended $934,483. The following are specific accomplishments under HOME programs or projects in City of Yakima for FY 2000. The projects are identified in the 2000 Action Plan of the consolidated plan and in Section II. A. Single Family Housing Rehabilitation This program budgeted $82,000 for financial assistance for the rehabilitation of homes owned by low and moderate -income families. Four families were assisted in 2000, and $81,207 of budgeted funds were expended. The homes completed are located at 2703 Willow Street, 1304 McKinley Avenue, and 104 South 10th Street. $25,000 was used to assist in the reconstruction for the home at 909 E Spruce in partnership with Habitat for Humanity, (referred to as the "Blitz 13 House") that was built by volunteers, in 10 days, at the Fairgrounds during the 2000 Central Washington State Fair. B. HOMEOWNERSHIP, NEW CONSTRUCTION This program provided $110,500 in FY 2000 for assistance to low and moderate -income first-time homebuyers to purchase newly constructed single-family homes constructed through a contractor set-aside program. Projects are selected by a competitive RFP process including a community design review. A total of $226,814 was expended for assistance to homeownership projects, using current and prior year funds. In 2000, two single family houses were constructed and completed at 730 and 732 N 14th Avenue in a partnership with Silverado Construction. In a partnership with United Builders of Washington Inc. 7 new homes were built on South 10th Street. $95,500 was budgeted for infrastructure in that area for these homes for utility, road, curb and cutter, to assist the projects progress. ONDS participated by allocating up to $30,000 subsidies for the low/moderate income families purchasing this home. C. DOWN PAYMENT ASSISTANCE PROGRAM This program provided $284,000 for financial assistance of up to $4,000 for down payment and closing costs associated with first time homebuyers in the City of Yakima target areas. Families assisted through this program are low and moderate income. In 2000, 71 first time homebuyers were assisted and $271,275 was expended using current and prior year grant funds. D. ACQUISITION/RESTORATION This program provided funds of $150,000 for the Acquisition and Restoration of 3 homes. In the FY 2000 3 acquisitions were made in the amount of $137,228. Acquisition of 906 Fenton and 708 S 7th Street was completed in 2000 with rehabilitation to be completed in 2001. The purchase of 312 N 7th Street was with HOME dollars and rehabilition with CDBG dollars. 14 E. LOT ACQUISTION This program budgeted $50,000 for lot acquisition. In the FY 2000 there were no lots purchased. F. COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS (CHDO) Under program guidelines, CHDO'S are entitled to 15% of the jurisdiction's allocated federal HOME monies. HOME program funds may be used for housing development, sponsored and/or owned by the CHDO. Eligible activities include predevelopment costs and the acquisition, rehabilitation and new construction of rental housing, homeownership and renter assistance: In FY 2000 CHDO's have been allocated $100,000, 18% of the HOME Entitlement. FY 2000 CHDO activities were as follows: 1. In 2000, $75,000 was spent to assist Clean House Association in purchasing the Lamplighter, a 16 -unit long-term housing facility for the chemically dependent. 2. Habitat for Humanity was awarded $50,000 for lot acquisition, none of which has been spent yet. Three lots are projected to be purchased in 2001 with these funds. 3. $50,000 has been set-aside for Triumph Treatment Services, a 2000 CHDO, to assist in building a 16 unit facility for chemical dependant tenants, in 2001. EPIC was awarded $50,000 to assist in the infrastructure for this 16 -unit project. These funds are prior year funds. G. FINANCIAL MATCH REQUIREMENT A premise of the National Affordable Housing Act, which authorized the HOME Program, is that providing affordable housing to low-income persons is the responsibility of all levels of government. Therefore, matching contributions are required as the state and local governments stake in the HOME program. The HOME Program identifies the City of Yakima as a location with a high level of persons living in poverty. Our match, therefore, is an amount equal to no less than 12 1/2 percent of the total HOME funds drawn down for project costs. This represents a 50% reduction in the usual match requirement. In FY 2000, City of Yakima expended $89,547 in match credit for projects in progress and completed during the program year. Sources for the credit include 15 volunteers, state, highway, donated material, HOPE 3 program income, labor and material donated through non -profits such as Habitat For Humanity, and prior year match credit carry forward. H. AFFORDABLE HOUSING The City of Yakima, Office of Neighborhood Development Services (ONDS), in partnership United Builders of Washington, Inc., built 7 new homes, and provided assistance to low to moderate income families to purchase newly constructed single family homes. In FY 2000, $251,814 was expended on these projects. Habitat for Humanity built 4 new construction homes for low-income families through the ONDS lot acquisition assistance, and in partnership with Silverado Construction Inc, completed 2 new homes in the Fruitvale area. I. NON-FEDERAL EXPENDITURES With HOPE 3 Program income 1220 S 7th Street, 606 S 10th Street, and 806 S. Naches Avenue, were rehabilitated, and we are in the process of completing 909 S Naches Avenue. Two lots were purchased at 506 Fair Avenue and 1214 Fair Avenue. In addition to the purchase of 211 S 4th Street (4-plex), $17,000 was provided as a rehab loan to Chestnut Manor Association. ONDS spent $21,032, of non-federal funds, on Southeast Yakima Community Center for building maintenance. V. FAIR HOUSING REPORT Housing is one of humankind's most basic needs. Fair housing is defined as equitable and fair housing opportunities to all persons regardless of their race, creed, color, family origin, religious preference or family status. The need to ensure fair housing choice for all is a major priority of Federal law and programs. A. IMPEDIMENTS TO FAIR HOUSING CHOICE Impediments to fair housing are defined as barriers or obstructions that interfere with or slow the progress of obtaining housing. The consolidated plan identified potential impediments to fair housing that were of concern to community residents. Residents expressed concerns that a persons right to fair housing be protected. While no specific instances of discrimination or other unfair practices were identified, some areas of potential concern were: • Non -Compliance with the Americans with Disability Act Community residents have expressed the desire that all area persons have knowledge of the Americans with Disability Act (ADA) to ensure 16 compliance. ONDS assists in both education and compliance whenever possible. • Red Lining Homeownership Opportunities In some parts of the country in years past, lenders engaged in the practice of not making mortgage loans in neighborhoods they perceived as high risk. This was known as Red Lining and is now illegal. We are not aware of any instances of this practice in the city of Yakima. Office of Neighborhood Development Services (ONDS) provides gap financing to leverage loans in potential at -risk areas. ONDS maintains the Federal Mortgage Disclosure information that details mortgage loans by all lending institutions. These records demonstrate the desire of local lenders to make affordable housing loans throughout the city. The Down Payment Assistance Program does a great deal to facilitate home ownership in the low -moderate income areas of the city. • Selective Mortgage and Lending Criteria The Office of Neighborhood Development Services has developed the cooperation of local lenders to aggressively evaluate loan underwriting criteria to make it more flexible. This has resulted in waiving fees that would otherwise increase down payment requirements. Local lenders assist in planning projects, evaluating loan packages, and providing financing. There is excellent lender support in Yakima for affordable housing. • Unfair Tenancy Screening This community concern has the greatest potential to be found in specific types of housing for those with very low income, persons with disabilities, seniors, or those recovering from substance abuse. There may be a lack of proper affordable rental units. If there were low vacancy rates (which there is not at this time) for available units in these categories, it could allow owners to be more selective in filling vacancies. If we received a complaint of unfair screening, the family would be referred to the State Human Rights Commission and the Federal Fair Housing and Equal Employment Opportunity Office for remedy. • Educational Awareness and Consumer Rights The lack of educational awareness and consumer rights on housing issues is an impediment to fair housing. Two offices that provide education and make referrals to assist community residents are the Office of Neighborhood Development Services and Northwest Justice Project. Both agencies provide both oral and written information to the community. This information is distributed locally and received from the State Attorney General's Office. 17 B. MINORITY OUTREACH Outreach efforts, specifically targeting minority and disadvantaged populations were conducted during FY 2000 through the use of advertisement in local printed media, the Yakima Herald -Republic, neighborhood meetings, and brochures. This year we also advertised in local Hispanic radio and television. Program brochures and flyers were translated into Spanish and widely distributed. As a result, the following minority families were assisted 3 senior/disabled persons; 3 single family owner -occupied; 57 down payment assistance; and 8 first-time homeowners. C. AFFIRMATIVE MARKETING The City of Yakima is committed to attracting targeted segments of the population, "individuals who normally might not apply" for or be aware of available funds, through the use of commercial media, informational flyers, and personal interviews with property owners, renters, and homeless to explain the programs. In 2000 an extensive marketing campaign was undertaken to ensure applicants were readily available upon the completion of 7 new construction homes on South 10th Street by United Builders of Washington, Inc. Display adds were placed for 3 alternating weeks in the Yakima Herald Republic and the VIVA Spanish newspaper. Public Service Announcements were aired on the local CBS affiliate, KIMA and the local Spanish station Hispana/Vision. Radio talk shows were conducted throughout the summer on KDNA Spanish radio station. This resulted in an awakening of the community about our programs and our office. To the extent that waiting lists have now been implemented for every single one of our programs. The City of Yakima developed and marketed a minority and women owned business -lending initiative. The lending initiative is a loan program created to support the expansion and startup of minority and women owned businesses though the Office of Neighborhood Development Services (ONDS) Economic Development Program. ONDS advertised in FY 2000 in the Yakima Herald -Republic and the Spanish newspaper, VIVA to recruit qualified general building contractors. As a result, 3 contracts were awarded to minority contractors. VI CONTINUUM OF CARE The City of Yakima recognizes the need to provide expanded services for its homeless population, as part of its consolidated plan. The Yakima County Coalition for the Homeless (YCCH) has a continuum of care program called the "Supportive Housing Program". YCCH Supportive Housing Programs are linked to the community network of service delivery and housing. The continuum of care in Yakima is not housed under a single roof. Instead it is spread throughout the community delivery system itself. The city has always stressed the development of housing to match the existing network of services that are available, and along with YCCH and other non profit agencies, has been identifying gaps and addressing the need of the homeless. In FY 2000 YCCH continued to hold continuum of care quarterly planning meetings for individuals and organizations concerned about housing and services for homeless and very low-income people in the Yakima valley. ONDS provided a consultant to assist two applicants with their continuum of care funding application. The funding was awarded to Triumph Treatment Services for case management services. VIL SELF EVALUATION In FY 2000, the City of Yakima effectively used federal, state, and local resources to further overall goals with respect to community and economic development, housing, homeless and special needs to principally serve very low, low, and moderate income persons. As indicated in the consolidated plan, these goals were to provide decent housing, create a suitable living environment, and expand economic opportunities. Yakima has been successful in achieving its goals for the year. During FY 2000, the City of Yakima expended $1,178,888 of CDBG and $934,483 of HOME funds on various housing and non -housing community development programs, projects and activities. The city expended $109,203 on Single Family Rehabilitation, $75,709 on Senior/Disabled Home Repair, $10,257 on Paint Program and Graffiti Abatement Program, $205,000 on Dept Service, and $11,017 on Housing Counseling, $271,275 on Down Payment Assistance, and $121,439 on Community Housing Development organizations, $137,228 on Acquisition/Restoration, and $226,814 on Homeownership New Construction. Non- housing community development initiatives included CDBG funded Infrastructure Program $19,245, Sidewalk Program $75,885, Community Service Program $95,895, and Public Facilities Program $80,531, Economic Development Program, $32,500, Program Operations $676,627. The City of Yakima ONDS and partner organizations accomplished many of our goals for the past year and are pleased with what has been achieved. However, City of Yakima realizes there is a lot of work to be done in the years to come. The City of Yakima has new affordable housing programs and projects being developed that we will complete in the next fiscal year, and we will continue to pursue acquisition, renovation and or redevelopment projects to benefit low and moderate income persons. 19 The City of Yakima continues to expand its infrastructure into low and moderate -income neighborhoods to serve the most needy. ONDS is committed to a lead role in this effort. Economic development has been identified by the Council as top priority. The City of Yakima needs to continue to create a positive atmosphere that welcomes new businesses, and works toward job creation and opportunities for low -moderate income residents. The City expects to continue its minority and woman owned business -lending initiative that assists smaller businesses as they struggle to survive in a tough and competitive business climate. Clearly, the City of Yakima faces major challenges and opportunities as we seek to improve the quality of life of its residents. We are convinced, however, that many of the resources needed to address these needs are in place or readily available. Our task is to assist in organizing a unified response by public, private, non-profit, community and religious groups and others. Such partnerships will help ensure a continued quality of life for all Yakima citizens. 20 PA• 4111111, [-Malt RI= O❑131FII m_Uiiiu z.�"Tr- i 1-111 LAXC ASPEN umuill min no P'hu',"I','uu"_ �'I�IIIIIIIIII IIL": F 1*tU iuili ■IIIIUF'UI.0 ■11111■ Jinn, r l 11 S riot11REF. �111_.1x111,1�111111E�1■ i11 11111111 I1EF111211 II �'1111141i11 II , 11111111110 1861 .i i111f11:_ 1 morn SPp.1N ��R cR6SK M RD AHDWUM RD t R rr 1011111EII pinomei dpa 1111 • 2000 Down Payment Assistance 71 Closed Loans Lakes / Reservoirs Railroad Line Closed Loans Scale - lm = 3000ft 0 1500 3000 Created: March 28, 2001 I-11ir 1111 1.�10\\ .I1 l�� al.'�11.. Illl♦11 e111J 7:11?1111111. 1 11--11. ;*t=� 1 IR!I!III s City of Yakima ONDS Projects For Year 2000 'JAB. sir 19, FF. PT minima wiet Li al 5 rill El Imo 11=� ■: !::I1n11=•� grog 4'111 11111111 1� ;�II� -..�+L ;m :11111. rat n I�=1 L '1111111N =11 111111111 ■ •�• �I 1F 111 - IIIIIIIIIII •I. . —III', 11111111= :: IIP9. I1.I.I.IIIII == L_ irg1' 111111 Iy1Ilw11111 -11':1 `.. I■ •1IV fIIIII�II11111111L■ i 11 ur um uu 11!!1 I _�1 IIIIIIC IIIIIIIIIII ) ,uiui '1■ 111111I1 r� II 1111: X111"!� � 4111 .iir IM��" ._'11111! 7r 11'1""'■"'I. °"" .IIIWI'�®IIi.IIII IIIIII`==�■,1%,.Ill�ul T=11..1_LIIII .11a �isll® Lakes / Reservoirs Railroad Lure City Limits CDBG 111,1W11 I,.■I .11s1n1 Imnlm EMIm 1_ ■ ■ r .. . '..1111111111101" .1 II 111111 11111 11111 11111 E1 ` O !! r non noon 1 1, -�� � ■. illlllll. Nom. 11111111 mmml� -�I\ � 1''•'7'111111111 1111111111 11111N •�� ,� • _--E•nr11 11I1 m11111m!( v. w �_ .Lr.IIi1811�5l. f 1=_ ==111.1 I nulla �! � .1111111.`�I 7: Il ui, :CV'S° �@, 1111 p. _ IIIP-.Ona Oml Ildlmimm�u �: tt�� 11= Ai = n.. 111: ■1 1111111 II74 IIIIIl1= O.III� 1111 1111:111111. Om) ( 111\71 1111111111'. 1"5.1111111:111111111111111.1 11111111. III.1111� 1111111 111 1111111111 11111 ing IImm.1111nam. ,iiiiiirr• mannnnnllm111111.1 un111._ -am- 1.11111-- a:►I !' .A alj - .11 EvOi C►4Pp91 • Single Family Rehabilitation HOME Single Family Rehabilitation • Homeownership - New construction • Acquisition/ Restoration Non -Federal Expenditures 1A • w • • *g,•■ $l. Scale - lin = 2500ft 0 1250 2500 Created: March 21, 2001 300000 250000 200000 150000 100000 50000 0 ONDS Expenditures 2000 ❑ Single Family Rehab ® Senior Disabled Home Repair ❑ Paint and Graffiti ❑ Housing counseling ■ Down Payment Assistance ❑ CHDOs ® Acquisition/Restoration ❑ Homeownershio/New Constr. ■ Infrastructure ® Sidewalks ❑ Community Service programs ❑ Public Facilities ® Economic Development BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No.: 0 For Meeting of: November 16, 1999 ITEM TITLE: 2000-2004 Consolidated Plan SUBMITTED BY: William Cook, Director of Community and Economic Development CONTACT PERSON: William Cobabe, Neighborhood Development Services, Manager (575-6101) SUMMARY EXPLANATION: The City of Yakima Office of Neighborhood Development Services, a division of the Department of Community and Economic Development is submitting a 2000-2004 Consolidated Plan to the United States Department of Housing and Urban Development. The proposed Consolidated Plan consists of the following three parts: Consolidated Report, which includes statistical data on community needs; the Five Year Strategy Plan; and the 2000 Action Plan. The 2000 Action Plan includes the proposed activities and expenditures for the City of Yakima Community Development Block Grant and HOME funds. The proposed Consolidated Plan recommends that efforts for the coming five years be focused on the four following areas: Housing, Infrastructure, Youth Programs and other Community Services, and Leadership Development. These proposed efforts would be implemented with the use of the Community Development Block Grant (CDBG) and HOME funds. The activities have been identified through extensive research, public input, and discussion with various other agencies. The draft plan was advertised for a thirty -day public comment period from October 12, 1999 through November 12, 1999. The comments and concerns submitted to the Office of Neighborhood Development Services during the thirty -day review will be included in the final draft. Public comment was heard during the April 20, 1999 public hearing conducted at City Council Chambers, October 20, 1999 public meeting at Yakima Senior Center, October 27, 1999 public meeting at Washington Middle School, and will be received again during the November 16, 1999 City Council Meeting. Approval of the resolution will permit submission of this application to the United States Department of Housing and Urban Development. In addition to approval of the 2000-2004 Consolidated Plan, approval of this resolution expressly delegates authority to the City Manger to execute all the transactional documents associated with carrying out eligible programs included in the plan. Resolution X Ordinance Contract Other Specify Funding Source: CDBG and HO APPROVAL FOR SUBMITTAL: /4. ity M.nager STAFF RECOMMENDATION: Approve 2000-2004 Consolidated Plan BOARD RECOMMENDATION: COUNCIL ACTION: Council reviewed the proposed 2000 Budget. The resolution was adopted. RESOLUTION NO. R-99-142 Yakima City Council John Puccinelli, Mayor Mary Place, Assistant Mayor Clarence C. Barnett Henry C. Beauchamp, Jr. Lynn K Buchanan John Klingele Bernard J. Sims Department of Community & Economic Development William R. Cook, Director City Manager Richard A. Zais Office of Neighborhood Development Services William Cobabe, Block Grant Manager City of Yakima, Washington CONSOLIDATED PLAN FY2000 — 2005 DRAFT Department of Community & Economic Development Office of Neighborhood Development Services Prepared By: Vaughn C. McBride, Community Development Specialist rroy LAOS - till 11111 MIMI N■■NN EMEC Ihi6Nlirra I�R.r �j,tr,1 NNI �NNI:i:111 MI MD II rIH ir =in trialial I Ea -m=r! E M t O ..1 `, . gr" +fld7NCG= .",\i44iisiliwan=nmigireta� ipsIzt-ia); rmiltarAL-rxzzugg icailnainimmaint 11111 �I��' 4j ACE HEIGHTS �I!ItII 1► IIIHuik\�o.. 11 • ■ ■I �m II` �'*"' iI 1 II!iuii rIrIrW11I:I''Illllnin�. �� � '�� 11 . „u'rnvinlii�. III IIIII II �,Ilf.'�' M1L 1�• •'uu' ,n II�� 11,111111- �1,i1. 1 il: � DTIII IuIflhIH'HhI I .� 1111Y1 1�,I1E1E1IE�111111L.� .��.. Si�IIIlY11111115 w TV= min -11* g-orratilir ori ;rait•wo X11,1:1.1 Nam IY'■1' �' 11ii1111111�111111.1 1111 11111f,1 E 111.11[ 1a 111 111 1111111111111111111 rrrriuu•Al1I�A. AI�11:1_ 'arm= ii iliu IlHplflhII ME 2 A CR££ef 1 Ffinumen. 1111f1ii �l1�� �l1 aibetarg CIOTarget Area Lakes / Reservoirs City Limits 1-1— Railroad Line 1990 Census Tracts Target Area Council Approved November 17, 1998 air /111$1 ••�,..l e Scale - lin = 3300ft M e e 0 1650 3300 Created: November 12, 1999 1 Executive Summary This Consolidated Plan for the City of Yakima for the years 2000 through 2004 is intended to be a guide for Community Development Block Grant programs, the HOME program, as well as other programs including homeless, IIOPWA, and others. It is the result of extensive research, public input, and discussion with the various other agencies that also work in these areas of interest. While every effort has been made to gather input from all interested parties, and to reach conclusions in harmony with the comments of others, it is by no means a perfect document. Because of this fact, included in the planning process is the opportunity to continue to update and correct, the plan throughout its lifespan. In compiling the plan there were a number of public meetings held to solicit input. Numerous additional one-on-one meetings were held with agencies and individuals. A survey of all non profits and other agencies was conducted. Over 14,000 surveys were mailed to homes in the Target Area. Over 1,500 surveys or 11% were returned, exceeding past efforts. Survey responses have guided the outcome of our planning effort. In addition to these efforts, there was a great deal of time spent compiling data on a variety of issues relevant to our programs. New data was tabulated on housing conditions and need. The need for services to the homeless was researched extensively. Demographic data from a variety of sources was gathered, and examined to determine the effect of a changing population on how our efforts will be focused over the next five years. We also examined past efforts for effectiveness, and the need for change to respond to our data and input efforts. We have concluded that what we have been doing for the past five years has been effective, and successful. However, we also identified some need for change. This is primarily the result of two external changes: our finding has been reduced, especially when adjusted for inflation, and our population is in the midst of some profound changes. City of Yakima, Washington Consolidated Plan 2000 - Draft 2 It is recommended that efforts for the coming five years will be focused on four areas. These are: Housing: Both new affordable housing (Homeownership) and rehabilitation of existing stock continue to be the primary focus of our efforts. Infrastructure: There are large blocks of recently annexed areas of the Target Area that are not served by water and/or sewer. This results in some unacceptable threats to the health of these areas, and these urgent needs must be addressed aggressively. Youth Programs and other Community Services: Many Target Area residents are in need of services. Where appropriate, we will work to promote programs that will help fill gaps in the service delivery system in our community. Leadership Development: This new item is being developed in response to one of our most urgent needs. There is a lack of participation in neighborhood affairs by area residents. Teaching and development programs will be instituted to provide area residents with the opportunity to acquire the knowledge and the necessary skills to actively participate in the on-going revitalization of their neighborhoods. What follows is the documentation to support these conclusions, and more specific program information. The specific strategies, as well as the one-year plan to implement these strategies were all designed to respond to the identified needs and goals of the residents of the Target Area in a positive, proactive manner. Most of all of these efforts will benefit greatly from an increased focus on forming partnerships throughout our community, in recognition of the idea best expressed in the thought `If we don't hang together we will all hang separately.' City of Yakima, Washington Consolidated Plan 2000 - Draft 3 Introduction When compared to the need, the amount of annual grant funding is relatively small. For example, the City of Yakima receives about $1.5 million a year in CDBG and HOME funding. This is clearly a lot of money, but it amounts to only about $50 for each resident of the Target Area. While no one advocates distributing the funds in this manner (it would not be legal) it illustrates the challenges we face: to use these dollars in the most effective manner possible. The most effective use of these limited funds in recent years has been through leveraging them with other money; bank loans, volunteer efforts; match dollars, public private partnerships, etc. Writing the five year Consolidated Plan provides an opportunity to assess where we have been, what our successes are, forecast what our coming needs are, and to attempt too use what we have learned from the past to help meet the coming challenges. Ultimately it is not about spending money. Rather it is an attempt to direct our efforts in such a way as to maximize program impact. Someone once observed that what is past is prologue. This is certainly true of Yakima: where we are today is very much the result of what has taken part in the past. To know why we are where we are, we need to start with an understanding of our past. Perhaps the greatest historical impact on the Target Area residents comes from the ties the area economy has always had, and continues to have, to local agriculture. Many residents came here to work in area orchards. Large nuinbers chose to stay in the area permanently when immigration laws were changed in the 1980s. Some of these have been able to find better jobs as a result of becoming permanent area residents. This has led to a large-scale change in the background of many of the seasonal workers. While formerly many of them were U. S. citizens who followed the crops from year to year as the seasons changed, these have settled into one place. A large percentage of the new agricultural workers tend to come from Mexico, and may bring minimal skills such as literacy or an understanding of American life. City of Yakima, Washington Consolidated Plan 2000 - Draft 4 Long-term area residents may find it difficult to understand the values and culture of our newest residents. These newcomers do not understand being involved in area government; they may not see the possibility of effecting change, either for themselves or for their peers. And to a large extent they may lack the skills to produce changes even if they have the concept of a better life. One of the worst consequences of poverty is that it can come to determine who you are. It is seen not as a condition, but as somehow part of your essence. A recent book referred to this when the author wrote, "The poor think their poverty will last forever... The worst thing about poverty is that you believe you can no more shed it than you can your personality or character, that you see your condition as a self defining' trait that ...you can never divest yourself of" (Wayne Johnston, The Colony of Unrequited Dreams). Our first task then, is to help people begin to see the dream of change, and to assist in providing them with the means to achieve their dreams for themselves, their families, and neighborhoods. This can best be accomplished through partnerships with other existing programs. The means to do more already exists: through coordinated efforts working toward common goals. We have analyzed, surveyed, and brainstormed to excess. What is needed now is action. City of Yakima, Washington Consolidated Plan 2000 - Draft 5 Managing The Process In the Spring of 1999, the City of Yakima Office of Neighborhood Development Services (ONDS) staff conducted a public hearing in city Council Chambers to receive public input regarding the `2000-2004 Consolidated Plan'. Major areas of discussion were 1) explanation of the Consolidated Plan, 2) review projected sources of revenue, 3) current programs; and to allow for public comment. (See attached hearing agenda) Mayor, John Puccinelli; City Manager, Dick Zais; ONDS Manager, Bill Cobabe; ONDS Operations Supervisor, Marvin Miller; and a dozen concerned citizens were in attendance. Citizen attendees made the following inquiries: • CDBG funds distribution and amount used to leverage other funding? • Other funding available to support economic development? • When are Plan amendments necessary? • Can a revolving loan fund be established using CDBG funds? • Ineligible CDBG uses? • Can a Community Service project be expanded the following year with additional CDBG funds? • Loan guidelines and interest rates? • Can the Senior & Disabled Persons Program be expanded? • Rehabilitation/Restoration Program operation? • Availability of monitoring reports of Community Service Program? The following concerns were voiced by those in attendance: • City should do an Acquisition/Restoration Program in Northeast neighborhood; • Encourage preservation of single-family housing stock and low-density in Northeast neighborhood; • Encourage historic preservation in Northeast, Central Business District, and Southeast areas; • Stop the practice of red -lining in older areas of the city; City of Yakima, Washington Consolidated Plan 2000 - Draft 6 • Additional transitional housing is needed for homeless single men and women, homeless women with children, and homeless families starting over; • Expansion of the Senior & Disabled Program; • Return of Home Occupation Program and Creating Solutions To Solve Problems Program; • Establish CDBG funded revolving loan program; • Amount of non -obligated federal dollars carried forward in 1999; • Encourage use of CDBG funds for minority training programs; • Increased coordination and cooperation between neighborhood groups on eligible projects; • Restructure ONDS contractors bidding system; • Street improvements along Fruitvale Boulevard; • Provide Target Area projects that create jobs; • Need stronger code enforcement; • Establish CDBG-funded mentor programs for children; • Create land hank for play areas; • Provide for historic preservation education; • Promote mixed -income neighborhoods, and housing developments. • Minority job and job training opportunities; and • Establish a community work -start program, and kid fund-raisers. The formal 30 -day review process was established from October 12, 1999 to November 12, 1999. Citizen comments and their community vision were solicited and summarized in the preparation of the Consolidated Strategy and Plan. Copies of the Plan were made available 10 all housing providers, members of the private sector, political representatives and community residents. City of Yakima, Washington Consolidated Plan 2000 - Draft 7 Notification of draft availability was published for public comment in the local newspaper. Copies were also available at the Yakima Regional Library, Yakima City Hall and ONDS. This review process was to encourage area housing providers, social service agencies, community residents and other interested parties to comment on the contents of the document. The final document was presented at a public meeting held in City Council Chambers for review and adoption on November 16, 1999. The following comments and opinions provided at the public meeting are summarized below: City of Yakima, Washington Consolidated Plan 2000 - Draft 8 Citizen Participation The City of Yakima encourages citizen participation emphasizing involvement of low- income residents, minorities, non-English speaking persons and persons with mobility, visual or hearing impairments. All public meetings and forums are held in public ,facilities accessible to persons with disabilities. Translators are provided for non- English speaking persons, as well as for those with hearing disabilities. Department of Community & Economic Development, and federal Community Development Block Grant (CDBG) funds are expended to benefit these persons so their involvement is of the utmost importance. In addition, comments and opinions were solicited from: * agency representatives * general public * business and political leaders Community residents attending public meetings are encouraged to notify and invite additional persons (family members, friends, congregations, co-workers, etc) to attend subsequent meetings. In addition, staff is willing to provide Consolidated Plan information to smaller resident groups in alternative settings upon request. Citizens were provided a 30 -day period for review and comment on the Consolidated Plan prior to the final Consolidated Plan submission. Citizen comments will be included in the summary. HUD's response to the Consolidated Plan submission will be shared with all persons and agencies that attended the public and agency meetings. It is the City of Yakima's goal to provide a timely, written response to complaints and grievances within 15 days of receipt. Prior to the submission of the Plan, citizens will be provided reasonable notice and have an opportunity to comment on any substantial change in the proposed use of fund s and/or plans. City of Yakima, Washington Consolidated Plan 2000 - Draft 9 The jurisdiction's plans and activities proposed by the City of Yakima are available at City Hall and the city's Office of Neighborhood Development Services for public access and review. Technical assistance will be available for development of funding proposals for community-based organizations that provide services to low-income households and persons under the Consolidated Plan's priority needs. r. City of Yakima, Washington Consolidated Plan 2000 - Draft 10 Housing & Community Development Needs For long-range planning purposes, the entire Urban Area should be considered when addressing demographic and housing needs for the City of Yakima. The Yakima Urban Area is a defined Urban Area, established in 1981 that identifies adjacent areas subject to annexation to the City, and also includes the incorporated City of Union Gap. The City of Yakima has experienced a steady 2% increase annually in population growth since 1990; reflecting a total population growth of 19% since the 1990 census count. Washington State's Office of Financial Management (OFM) annually updates U S. Census Bureau population and housing estimates based upon annexations and building permit activity for residential structures. An April 1, 1999 OFM inventory of the city's housing stock reflects a housing inventory of 27,906 housing units serving an estimated, population of 65,500 persons. 1990 Census data, and subsequent HUD data indicates a strong need for housing for families with annual household income below $35,000. Nearly two-thirds of all Yakima households earn less than $35, 000. City of Yakima, Washington Consolidated Plan 2000 - Draft Urban Area Population & Housing Population Housing Units Location 1990 1998 % Dill: 1990 1998 % Dirf. Yakima County 188,823 212,300 12.4 70,852 79,541 12.3 Unincorporated 88,214 93,313 5.8 32,438 34,285 5.4 Union Gap 3,120 5,350 71.5 1,347 2,214 64.4 City of Yakima 54,843 65,500 19.4 22,986 27,906 21.4 1990 Census data, and subsequent HUD data indicates a strong need for housing for families with annual household income below $35,000. Nearly two-thirds of all Yakima households earn less than $35, 000. City of Yakima, Washington Consolidated Plan 2000 - Draft 11 Income 1990 Census data reports a median family income of $27,723 for the City of Yakima. Median income is the mid point in the range of incomes in a jurisdiction; half of the households or families have incomes above the median, and half have incomes below it. Household income is a more realistic measure of income than family income, as it takes into consideration persons that may not be living in traditional families. In addition, household income tends to be lower than family income. 1990 Census reports a median income of $7,784 for non family households in Yakima. HUD annually provides an estimate of median family income for use in administering its grant programs. These incomes are calculated using data from the entire metropolitan area, which results in an estimated median income of Yakima higher than indicated by Census data. HUD also defines four income categories for income levels below the median, and calculates a maximum income level for each category by family size. HUD's 1998 maximum median income for a Yakima area family of four is $29,850. (See table below) 1998 Federal Median Income Guidelines Family Size 0 I 2 3 4 5 6 7 8 Over 100% $26,100 $29,800 $33,600 $37,300 $40,300 $43,300 $46,300 $49,200 80% $20,900 $23,850 $23,850 $29,850 $32,250 $34,640 $37,040 $39,360 60% $15,660 $17,880 $17,880 $22,380 $24,180 $25,980 $27,780 $29,520 50% $13,050 $14,900 $14,900 $18,650 $20,150 $21,650 $23,150 $24,600 City of Yakima, Washington Consolidated Plan 2000 - Draft 12 Housing The City of Yakima has experienced a 21% increase in residential units since the 1990 census estimate of 22,968 to a 1998 estimate of 27,906 housing units. The overall increase in the total number of residential units is a result of the addition of new housing starts and housing units acquired through annexation; less the number of residential units lost to demolition. 1990 Housing Inventory Estimate: 22,968 units New housing starts (1990-1998) 1,868 Housing acquired via annexation 3,289 (Less housing lost to demolition) (219) 1998 Housing Inventory Estimate: 27,906 units City of Yakima, Washington Consolidated Plan 2000 - Draft 13 Owner/Renter Occupied There is a clear difference in homeownership patterns east of 16th Avenue (the CDBG Target Area) when compared to areas west of 16th Avenue. This is also linked to the lower incomes in the corresponding areas. For this reason the city has tergeted the eastern portion of the city, and has focused on much of the block grant and HOME funds in this area. See 1997 Estimated Owner/Renter Chart on next page. City of Yakima, Washington Consolidated Plan 2000 - Draft • — s ��J ---'' L 1.LEY FRUITY,* I L__ City City of Yakima 1997 Estimated Owner/Renter \ \ 3000 \ 1953.5 11430.25 ® HU Owner Occupied (> HU Renter Occupied 1 7 --IMA SOUTH BROADWAY J • 15 CDBG Target Area Five census tract neighborhoods within the City of Yakima constitute the federal Community Development Block Grant Target Area. Local and federal legislative authorities have designated neighborhoods of the CDBG Target Area as eligible for federal and local assistance. The following census tract areas made up the city's CDBG Target Area through 1998: Central Business District (1) Northeast District (2) Milroy Park District (6) Providence's District (7) Southeast District (15) Target Area Income Levels Target area income levels are much less than family income levels elsewhere in the city. The disparity in family income levels range from 20% to 62% less than the citywide ' median for family income. 1989 per capita income within the Target Area was as low as $5,975 compared to $11,593 citywide. This is illustrated below. 1990 Census Bureau Estimated Income Levels, City of Yakima Citywide Family Per Capita Income Income (1989) $27,723 $11,593 Target Area $14,463 $ 6,373 Tract 1 $10,455 $5,975 Tract2 $13,607 $6,373 Tract 6 $16,953 $6,882 Tract 7 $22,041 $9,909 Tract 15 $14,463 $5,426 City of Yakima, Washington Consolidated Plan 2000 - Draft 16 The Target Area primarily encompasses the area of the city east of 16th Avenue. This area is eligible for federal assistance because it contains the largest number of older homes, blighted neighborhoods, the highest number of minorities, the highest percentage of households with poverty level incomes, and the highest percentage of housing stock in substandard condition and low re -sale value. An indication of the size of our challenge is reflected in the following chart that shows those persons with incomes less than 30% of the area median income. Some block groups have over 25% of their population with incomes less than the federal poverty level. f. City of Yakima, Washington Consolidated Plan 2000 - Draft 1 • --L City of Yakima Target Area Block Groups Water Area Streets Railroad Target Area Boundary Target Area Block Groups Population and Poverty /�� 3000 ( \ \ 1500 750 Population ' Income less than 30% AMI 0 .50 1 1.5 Miles IJ d _� � C� ri Lir. ui iL 18 New Construction & Demolition Activity New housing construction within CDBG Target Area neighborhoods accounted for 503 new housing units since 1990, reflecting 27% net increase in housing units built citywide. The bulk of these new units were 214 multi family units constructed in the Milroy Park District over the 1990-1998 period. In contrast, Target Area neighborhoods experienced the greatest number of housing units lost to demolition, accounting for 79% (173 of 219 units) of all housing units demolished citywide. Housing Cost Burden Homeownership is generally considered the American Dream. In addition, it is generally recognized that the community as a whole benefits from higher homeownership rates. With this in mind the city has allocated a large portion of CDBG and HOME program dollars towards promoting homeownership. In part, this is in recognition of the fact that homeownership is still possible for much of our population. The following chart indicates this trend in our target area. Average home sale prices have increased by 107 percent. During the same time period average wages rose by 154 percent. Thus, unlike many other areas, we do not see the rapid appreciation of home prices moving these homes forever beyond the reach of most our population. City of Yakima, Washington Consolidated Plan 2000 - Draft • • • 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 Yakima Target Area Housing Cost Burden 85000 41000 • 36800 0 • fi4463 1989 1999 --• Median Family Income Avg. Sale Price 20 Concentration of Minorities The CDBG Target Area contains the majority of minority and low-income families. This area primarily encompasses the neighborhoods east of 16" Avenue, and adjacent to the downtown core business district. The Southeast District is specified by HUD as a "Concentrated Minority Area" due to its concentration of the largest number of minority residents citywide, as defined by U.S. Census data and HUD eligibility guidelines. The concentration of minority and low-income families in the eastern portion of the city is partially a function of economics, housing availability, and locational preferences for many in -coming households. In some block group areas more than one-third of the population are from minority ethnic groups. The preponderance of these persons are Hispanic. Additionally, the Hispanic population is the fastest growing population group in our area. Yakima School District figures indicate that citywide 55% of the grade school population is Hispanic. The implications of these figures are huge. There will be an ongoing need to examine our commitment to serving an increasingly growing and youthful population. We will need to examine the implications of a large population that does not speak English. And there exists the real possibility that within the near future, the Hispanic population will in fact constitute a majority of Yakima residents. City of Yakima, Washington Consolidated Plan 2000 - Draft • T City of Yakima Target Area Water Area Railroad ,Target Area Boundary Streets Target Area Block Groups thnicity by Race and Population 1000 \ \ 500 ' 250 White (non-hisp.) Black (non-hisp.) C> A.I./Esk./AI.(non-hisp.) Asian/Pac.Is. (non-hisp.) fJ Hispanic 0 .60 1.2 1.8 Miles • 22 Homeless Continuum of Care The Yakima community's Continuum of Care System provides housing supportive services to the homeless in all areas of Yakima County. The Yakima County Continuum of Care Planning Group meets year-round in an effort to plan and coordinate the development of a strong continuum of service and housing needs for the area's homeless. The current Continuum of Care System is characterized by the presence of a broad range of active agencies providing services and housing. The system has a strong shelter component. However, the current system lacks a sufficient transitional housing and permanent housing to keep pace with the housing needs of the growing numbers of homeless and special needs populations. Transitional housing and permanent supportive housing options for the disabled are few. The needs for additional transitional housing and increased number of supportive housing facilities for the disabled are high priority goals; and challenges for our community. Over the past decade, Yakima has the lowest average per capita income in Washington, and the highest percent of residents living below poverty. Yakima's workforce, primarily engaged in agricultural and service employment, is among the lowest paid in the state. The increasing gap between housing availability and need, housing costs and ability to pay has spawned a homeless population exceeding the capacity of existing resources. Two projects have been developed to address major identified gaps in the housing and services care system. Triumph Treatment Services will acquire, rehabilitate and operate a permanent supportive housing facility for the disabled in Yakima. Essential supportive services to persons with serious mental illnesses and chronic substance abuse will be provided at the site. Yakima County Coalition fin. the Homeless through its Building Bridges Program will expand its case management services to provide more intensive services to residents of emergency and transitional housing throughout Yakima County. City of Yakima, Washington Consolidated Plan 2000 - Draft 23 Permanent housing for single disabled persons and transitional housing for families has been identified as the community's Continuum of Care Plan highest priorities. Chronic substance abusers, dually diagnosed, youth, veterans, victims of domestic violence are subpopulations of focus. A Continuum of Care analysis of area needs provides an assessment of housing needs for homeless and special needs populations in the Yakima urban area. (See attached chart). Homeless persons utilizing emergency shelter and transitional housing have identified assistance in locating and accessing community resources for child care, medical/dental care, and job training and placement as the services that prove the most helpful in assisting them to move from homelessness to permanent housing. A variety of emergency shelter programs serve homeless populations in Yakima. These include facility -based shelter for single adults and families operated by the Union Gospel Mission and Calvary Rescue Mission, and motel voucher programs operated in Yakima by Salvation Army and St. Vincent DePaul. Clean House Associates, Yakima, provides clean and sober housing and supportive services for drug and alcohol dependent adults in recovery. Current Resources include: * Outreach to all homeless populations, intake and assessment to identify needs and make connections to appropriate facilities and services. * Immediate short-term emergency shelter (<30 days) to provide a safe decent alternative to the streets: supplemental shelter for cold weather, emergencies, and extended shelter days (30-90 day shelter) with supportive services. City of Yakima, Washington Consolidated Plan 2000 - Draft 24 A variety of resources are available in the Yakima area to prevent homelessness. These include: short-term rental assistance to prevent eviction; first -month's rent, security deposit payments, credit report fees payment assistance; housing repair programs through municipal and county CDBG programs; assistance with utility payments; housing counseling and referrals; fair housing and landlord tenant information; and advocacy. • Many homeless persons and families make their first contact with an organization/agency that provides homeless shelter and services as a walk-in. Others make contact by phone. Staffs conduct intake interviews and evaluate client information for placement in ._ programs appropriate to the client's individual needs. All area shelter programs make referrals to other resources when they are unable to assist a homeless client through their program. City of Yakima, Washington Consolidated Plan 2000 - Draft 25 Yakima Urban Area Shelter Providers Shelter O 1 erator Homeless Po i illation Beds/Units Len; th o Sta Calvary Rescue Single Adult Males 58 beds 3 — 5 weeks Mission Families 22 Units 5 — 7 days Clean House Adults in recover 13 beds 30 — 90 d• s E.P.I.C. Youth >18 rs 12 CRC beds 3 7 di s O.I.C. sin:le & anvil motel voucher '3 — 5 da s St. Vincent DePaul single & family motel voucher 3- 5 days Salvation Arm sin_ le & anvil motel voucher 3 — 5 d. s Union Gospel Mission single men 22 beds 2 — 4 weeks Families 1 unit 5 —7 d. s YCCH Families motel voucher 3 — 5 days Persons w/ HIV/AIDS motel voucher 3 — 5 d. s YWCA Domestic violence victims 12 beds 2 — 4 weeks City of Yakima, Washington Consolidated Plan 2000 - Draft 26 Public Housing The Yakima Housing Authority (YHA) is a separate entity funded with state and HUD funds and provides housing assistance through owned/operated public housing, 514/516 Farmworker Housing and Section 8 Rent Subsidies. Residents are comprised offamilies, seniors and persons with disabilities, typically of very low and low-income. Over half of YHA households are headed by female, single parents with young children and have an annual income less than 50% of the area median family income, 38.5% are elderly/disabled households; these households cannot compete for housing opportunities with the rising private market rates. The U S. Department of Housing & Urban Development (HUD) annually establishes fair: market rent (FMR) levels in the Yakima area. These rent levels do not include subsidies, but do include utility costs and are sound indicators of private market rents. HUD sets FMRs to assure that a sufficient supply of rental housing is available to program participants. Thus, FMRs must be both high enough to permit a selection of units and neighborhoods and low enough to serve as many families as possible. Market rents in the Yakima area have reflected an average percentage increase of between 1.4% and 1.9% from 1996 to 1998. See chart below. ' kakinta Metropolilan Statistical Area 1996 1997 1998 MFI MFI MFI $32,800 $34,300 $36,800 Nbr. Bdrnts 1996 FMRs 1997 FMRs Percent Change 1998 FMRs Percent Change 1 2 3 4 $340 $418 $517 $694 $346 $426 $527 $707 1.8% 1.9% 1.9% 1.9% $351 $432 $535 $718 1.4% 1.4% 1.5% 1.4% Note: For more in-depth comparison of fair market rents for the Yakima MSA/Yakima County see attachment XX. City of Yakima, Washington Consolidated Plan 2000 - Draft 27 Yakima Housing Authority is the principle provider of low rent housing in the greater Yakima area. The Housing Authority owns and manages 150 low-income public housing units and 147 farm worker rental -housing units in the City of Yakima. In 1998, 16 units of YHA's public housing inventory were determined no longer suitable for families. Consequently, YHA is building 16 new units to replace the units lost. Currently, Yakima Housing Authority maintains a wailing list of persons, 255 single persons and 749 persons in families; including 43 elderly persons. YHA had 58 'move outs' in 1998 that accounts for 40% of Public Housing Tenants who moved out into the private sector. An average 20% of all families receiving assistance leave the program, no longer needing assistance. The Housing Authority provides rental assistance through the Section 8 Program. Under this program, YHA provides money to private sector landlords for a share of the rent charged to tenants. City of Yakima landlords have received an estimated $1.2 million in rent payments annually. Currently, YHA is providing 362 certificates/vouchers to City of Yakima very low income and low-income families Farm Worker Housing Families who derive at least $3, 055 per year from agricultural work occupy Farmworker units and are low-income families living in Yakima County. Eligible households earn no more than 30% of the area median income to qualify for housing. Agricultural worker families are a special needs population based on a number of characteristics. Unlike most working families, the primary source of employment for farm workers is seasonal in nature and highly susceptible to the forces of nature. Subsequently not only are there predictable periods of unemployment, but unpredictable times of employment. Bad crop years have devastating effects on the financial survival of families who work in agriculture. City of Yakima, Washington Consolidated Plan 2000 - Draft 28 In addition, the vast majority of families employed in low-wage agricultural jobs are Hispanic. A significant percentage has difficulty speaking and understanding English. Language, cultural and income barriers make efforts to become employed in other occupations, as well as learning about economic, health, educational, recreational and social services, in order to integrate into the community extremely difficult. Societal prejudices also contribute to this difficult situation. Yakima Housing Authority has 147 units of farm worker rental housing — the largest in Washington State. These units are located on 40 sites in the communities' of Granger, Toppenish, Yakima, Cowiche and Tieton. Additional low-income housing units are needed to serve the large low-income segment of the Yakima population. At present the Yakima Housing Authority is constructing an additional 26 units through the use of tax credits. The 147 existing units were developed in partnership with the Office of Rural Economic & Community Development, and the Yakima Valley communities. YHA currently provides 44 farm worker rental housing units in Yakima. Yakima Housing Authority utilizes the same tenant screening process as it does for its Public Housing units. Applicant eligibility and suitability undergo a screening process that includes landlord references for a four-year period, hone visits, a criminal records check, credit report and income verification. The average lengths of time residents are in tenancy is 3.5 years at which time they move on to private sector or become homeowners. CIAP (Comprehensive Improvement Assistance Program) The Yakima Housing Authority (YHA) has been awarded $7.1 million, Multi -Stage CIAP since 1991 to rehabilitate its Public Housing units. Each year of CIA? actively resulted in all funds being obligated and expended within the specified implementation schedule. The most outstanding emergency items were funded the first year and the remainder of the program scheduled over the next seven year (1992-1999). All grants have been completed on time with one extension granted for grounds work due to weather problems and one due to redirection of funds to development. Current PHMAP score for Modernization for PHA fiscal year 1998 is 100% and overall score 98.5% for the agency. City of Yakima, Washington Consolidated Plan 2000 - Draft 29 YHA's program was envisioned to address the physical deterioration of the buildings, as well as, introduce empowerment concepts and programs to residents, thereby institutionalizing programs that would serve as a springboard for residents to break the cycle of poverty. Many residents were utilized in YHA's workforce under the direction of skilled supervision provided by the Housing Authority's maintenance department. The Housing Authority from the U S. Department of Housing & Urban Development (HUD) has received the following CIAP grants. CIAP Grants Received, 1991-1999 1991 $1,460,300 1995 $450,000 1992 $1,157,900 1996 $981,625 1993 $1,200,000 1997 $480,000 1994 $1,000,000 1998 $376,000 Total: $7,105.825 Review of Yakima Housing Authority public housing statistics indicate the following public assistance recipient demographics: Total assisted housing units for the Yakima Urban Area during 1999 include 150 public housing units, 147 Yakima and Yakima County farm worker rental units, 362 City of Yakima Section 8 certificate/vouchers. City of Yakima, Washington Consolidated Plan 2000 - Draft 30 The number of assisted rental units is inadequate to meet existing housing needs of the very low, and low to moderate -income families in the Yakima area. YHA currently has a waiting list of 979 families housing assistance. Single Person Head of Households: 43.4% Elderly/Disabled Households: 38.5% Average Household Income: S11,744 , Income Sources Avg. Household Annual Income Employment DSHS SS/SSI L&I, Child Sppt, Unemployment, Pensions $11,744 56.2% 18.3% 17.9% 7.6% Source: Yakima Housing Authority, Public Housing Statistics, June 14, 1999 ''Avera ti :. `ale`Xerlts:Pe�rBcdroo»i`S�1 13drm Size.'. , Avg Rents 1 $133 2 $181 3 $247 4 $344 5 $310 Current Vacancy Rate: 8.3% (as of June 14, 1999) 1991 Avg. Vacancy Rate: 6.0% City of Yakima, Washington Consolidated Plan 2000 - Draft 31 Housing for Special Needs Population Housing for Special Needs The special needs population requires special, additional consideration in determining housing needs. In general, these populations have characteristics that the fair market housing industry has yet to adequately address. Housing for special needs populations are typically provided through a partnership of public/private/nonprofit organizations. The shortage of available housing affordable to low-income persons worsens for those of low income who have special needs, i.e. mental, physical disabilities. Creative alternative housing options such as cluster homes, single room occupancy units, granny - flats, etc. have not been significantly developed within the Yakima Urban Area Subpopulation/Special Needs Homeless Population Transitional housing alternatives and supportive services for special needs persons and homeless persons with special needs are also greatly needed in our community. Chronic substance abusers, dually diagnosed mental health persons, youth, veterans, victims of domestic violence are subpopulations of focus. Currently, Triumph Treatment Services, Care Bearers, Central Washington Comprehensive Mental Health, and Clean House Associates also provide transitional housing for homeless populations with special needs. Homeless persons who are unable or unprepared to move directly from emergency shelter to permanent housing are targeted for transitional housing. The following chart identifies transitional housing operators in Yakima for homeless persons and families with special needs. City of Yakima, Washington Consolidated Plan 2000 - Draft 32 Area Service Providers: Special Needs Homeless Population Yakima's Continuum of Care analysis identified a lack of supportive housing for persons with AIDS, single women without children, homeless youth and pregnant and parenting teens, and a need to increase and strengthen transitional housing programs for families with children and victims of domestic violence. Most subpopulations with special needs are reached either through targeted outreach or referral by specific special needs service providers who work with the population. Many homeless persons, however, initiate contact after hearing of a program by word-of- mouth. The following outlines how specific homeless populations are served: City of Yakima, Washington Consolidated Plan 2000 - Draft Program GTS•. Target Population _ .. I, Number Units Care Bearers Families with AIDS 2 units CWCMH Chronically mentally ill 12 units Clean House Associates Chemically dependent adults 18 units Riehl House Chemically dependent pregnant women 8, beds Triumph Treatment Services Chemically dependent women w/children 18 units Yakima Coalition for the Homeless Families w/children 19 units Area Service Providers: Special Needs Homeless Population Yakima's Continuum of Care analysis identified a lack of supportive housing for persons with AIDS, single women without children, homeless youth and pregnant and parenting teens, and a need to increase and strengthen transitional housing programs for families with children and victims of domestic violence. Most subpopulations with special needs are reached either through targeted outreach or referral by specific special needs service providers who work with the population. Many homeless persons, however, initiate contact after hearing of a program by word-of- mouth. The following outlines how specific homeless populations are served: City of Yakima, Washington Consolidated Plan 2000 - Draft 33 Veterans The Veteran's Administration has homeless veterans outreach staff at the Army's Firing Center in Yakima County, and the Veterans Service Center in Yakima. Homeless veterans outreach staff coordinate with other area veterans organizations and shelter programs, in particular the Union Gospel Mission, to ensure coordinated services to homeless veterans. Other veterans groups that provide outreach and assistance to homeless vets include Veterans of Foreign Wars, American Legion, and the Disabled American Veterans. Persons with Mental Illness Comprehensive Mental Health is the primary provider of mental health services in Yakima County. There is limited permanent supportive housing available for persons with disabilities in Yakima. Central Washington Comprehensive Mental Health operates several units of supportive housing for chronically mentally ill and dually diagnosed persons and families coming out of residential treatment for mental illness. Permanent supportive housing programs for disabled populations usually draw from the transitional and emergency providers that operate the permanent housing. Agency staffs coordinate with emergency housing providers to arrange temporary shelter when intake indicates that a mental health client is homeless or at risk of homelessness. Persons with Substance Abuse Triumph Treatment Services provides transitional housing for persons in recovery from chronic substance abuse. Program services include residential treatment program for community males, and transitional housing for homeless women with children in recovery and for pregnant women or women with infants overcoming addiction. Persons with HIV/AIDS Yakima County Health District employs bilingual outreach and education staff who oversee a street outreach program targeting adults who have problems with drug and alcohol abuse and are at risk for HIV/AIDS. Health District and New Hope Clinic caseworkers contact Yakima County Coalition for the Homeless staff to obtain emergency housing assistance for clients. City of Yakima, Washington Consolidated Plan 2000 - Draft 34 Victims of Domestic Violence The YWCA Family Crisis Program in Yakima operates a safe house domestic violence shelter. Emergency shelter providers throughout Yakima County will refer victims of domestic violence to the program if space is available. Persons with Developmental Disabilities Homeless persons with developmental disabilities are frequently part of another subpopulation , e.g., substance abusers, victims of domestic violence, HIV/AIDS. Most homeless shelters and transitional housing programs provide assistance for developmentally disabled individuals and families if they otherwise meet the program criteria. Special service requirements are coordinated between the homeless program provider and the provider of the special needs services. Physically Impaired Population Persons with physical disabilities often require special consideration in developing appropriate housing, depending upon the severity of the disability. The physically impaired also have limited income abilities that make affordable housing a critical issue. Physically impaired persons often require physical structural accommodations to make dwellings wheel chair accessible or to accommodate their physical disabilities. Many disabled also need special supportive services. Youth Homeless youth not living with families are most frequently referred to programs by service providers that work with that subpopulation, such as the Adolescent Pregnant and Parenting Program, the Yakima Coalition Against Drugs and Gangs, School District personnel, DSHS, juvenile justice officials and law enforcement. City of Yakima, Washington Consolidated Plan 2000 - Draft 35 Elderly Housing Needs 1990 Census data reported a Yakima County population of 32,025 persons 60 years or over, representing 17% of the Yakima Standard Metropolitan Statistical Area (SMSA) population. Of those persons 60 years or over residing within the Yakima SMSA, 14% had a 1989 income below the poverty level; 19% of those age 75 or over had incomes below the poverty level. Census data reports that 19% of the area's elderly have a mobility and/or self-care limitation, with elderly females comprising 65% of this special population group. Human service agencies project that the elderly population will continue to grow at a rate greater than the general population, as life spans lengthen and seniors move closer to ; locations where support services are available. Few housing alternatives are available to support the elderly and disabled persons with a limited income needing semi-independent housing. Their income and/or assets disqualify then for federal or state assistance due to program requirements. 1990 Census reported 78% of elderly persons in Yakima own their homes. This indicates there is a great need for additional resources for home rehabilitation and weatherization programs to assist the aging population to remain in their own homes. A 1998 U. S. Department of Housing & Urban Development (HUD) report on elderly low-income housing needs indicates that only 23 elderly low-income housing units were produced since 1990 of an estimated need of 1,234 housing units to address this special needs population. This level of production represents 1.86% of the need identified. City of Yakima, Washington Consolidated Plan 2000 - Draft 36 Elderly HUD -subsidized housing in Yakima include the following developments: 1i..►i.I,.�iriiiiwiava.1.6W 407r r r r rii►isi iwiiiwi1iiiiiii rill. wi dill... iwi iiiiiwiwiwi.►i.�i.Viii /....iiiie►i.•iri 1 i HUD Subsidized Elderly Housing t City of Yakima ,i 0.r riirwrri.Piifi.F�.►n1iwisii.►i. ,411%4 n►i<a / .... or ..►iwsis,1isiiriwiiwir/ /.V nriw�i.►,.wiiiiiiir wii.►iiJ1 0 0 0# Type Name Location 0 0 Type Subsidy $ 0 Units 0 Occupancy t t Nrsirrsrssisrrrrrriaisrsi r r r.si4rsisiwiwvw.rwisrw,ewinrw,wiescisiairiA0wrriwiriairrr//rrirrirw rww rs%w/sisi./ rrAr'avrriirArzriiA4 0 o $ Elderly o Section 8 i Glen Acres $ 15 N. 37t' Avenue $ 38 100% Project Based 0 0 o i Elderly Section 8 Willows $ 718 N. 6t Avenue $ 35 $ 100% ' ' • Project Based 0 o i Family $ Section 8 0 Meadows L 1010 S. 9`" Street y 40 100% Project Based a i o i Family Section 8 0 i 0 Yakima Gardens $ 1205 N. 2"d Street 30 100% Project Based 120 i Elderly i Low -Income i 0 Sun Tower 0 10 S. 6`f' Street 0 35 Elderly o Section 8 0 $e $ Elderly 0 Section 8 0 o Swan Manor i o 95 0 100% o Project Based o 0 0 10 S. 8''' Avenue i Elderly i Section 8 i o Swan Manor North o 0 45 0 100% o Project Based o i i $ $ Elderly o Section 8 f ,o Providence House o, 312 N. 4`" Street 47 0 100% o Project Based o i 0 0 0 Elderly 0 Section 8 0 o Naches House $ 314 N. Naches Avenue 0 60 0 100% o Project Based 0 i e i $ 0 Source: U. S. Department of Housing & Urban Development The Office of Aging and Long -Term Care (ALTC) is responsible for the planning, monitoring, coordinating, development, advocacy and administrative functions for elderly persons. This includes the development of a comprehensive and coordinated delivery system for elderly persons that include: *Information and assistance *Case management *Transportation services *Legal Assistance *Household and personal care assistance *Adult day care services City of Yakima, Washington Consolidated Plan 2000 - Draft 37 Lead -Based Paint Efforts to Eliminate Lead -Based Paint Hazards Lead-based paint procedures are applied to all federally funded housing construction, purchase and rehabilitation activities. There will be no usage of lead-based paint in any units constructed or rehabilitated with federal funds. Occupants of dwelling units that contain lead-based paint discovery areas are notified of the potential hazard. Dwelling units scheduled for rehabilitation through the use of federal funds, and identified to contain lead-based paint discovery areas are subject to lead-based paint removal or covering remedies as stipulated in the City's Office of Neighborhood Development Services lead-based paint policy. Lead-based paint hazards are more prevalent in structures constructed before 1940. Census data for Yakima estimates that 90 percent of all housing units built before 1940 contain hazardous lead-based paint. 1990 Census reported the following data concerning lead-based paint impacted housing in Yakima: 20% of the city's housing stock was built before 1940 55% of the city's pre -1940 housing are owner -occupied 45% are renter households; 18% of which are very low-income households Local health agencies are required by the state to report all identified cases of lead- based poisonings, particularly for children under 15 years of age. Children on Medicaid undergo lead screening as part of the Medicaid program. Local methods of lead-based paint abatement focus on the use of approved methods to cover areas where lead-based paint exists. Other areas of identified lead base poisoning have been isolated to the use of agricultural spray used in our area. City of Yakima, Washington Consolidated Plan 2000 - Draft 38 Market Inventory & Conditions Housing Inventory A Housing Inventory is a means of assessing the condition of a community's housing stock. The housing stock consists of all of the housing types within a location's boundaries. Assessing the quality of living structures can help indicate key issues, such as clustering of vacant or abandoned units, prevalence of housing problems and lack of adequate accommodations The city's year-round housing inventory is comprised of single-family (including mobile and manufactured homes), duplex, and multi -family structures. The multi family structure category includes triplex, fourplex and multi family structures offive units or more. A breakdown of residential dwellings, by type is as follows: OFM Estimated City of Yakima Housing Inventory as of 1 April, 1999 Housing Type No. Of Units % Total of Units Single -Family 19,370 69% Duplex 1,993 8% Multi -Family 6,543 23% Housing Conditions The definition of what constitutes a substandard housing unit resides with the local jurisdiction. The City's 1990 Field Survey of Structural Conditions is estimated to be 93% accurate in locating and documenting housing units when compared to Census data. Exterior structural conditions were evaluated and given one of four ratings: City of Yakima, Washington Consolidated Plan 2000 - Draft 39 Good — Structure in sound condition Average — Structure in need of minor repairs Below Average — Structure in need of major repairs Poor — Structure in dilapidated condition Overall, the 1990 Field Survey determined 83% of the housing stock in good condition, 9% in average condition and in need of some minor repair, 6% in below average condition and in need of major repair and 2% in poor condition • The 1990 Census provides some indicators of the condition of the City's housing stock and the `housing problems' that exist among the City's housing stock. Data variables analyzed include structural condition and age of housing units, the absence of complete plumbing or kitchen facilities, and overcrowding of units. The 1990 Census reports that 20% (4,594 units) of the 1990 housing stock were built prior to 1940. Many of these older residences suffer from deferred maintenance. Approximately 15% of the 1990 housing stock was determined as "substandard condition suitable for rehabilitation." Less than 3% of the city's housing stock has been determined "substandard unsuitable for repairs and rehabilitation." Housing Problems Census and HUD data reports 48% of all city rental households have "housing problems." Dwelling units that are in poorer physical condition are often less expensive to rent or buy, and more likely to be occupied by low and moderate -income households. Whether owner -occupied or renter -occupied, many of these units are occupied by persons with incomes below the area's median income. In 1990 over half of Yakima housing, constructed prior to 1940, was occupied by low-income families. City of Yakima, Washington Consolidated Plan 2000 - Draft 40 Overcrowding Overcrowding and its impact on people and neighborhoods have been identified as important concerns of the community. The percentage of overcrowded large -related renter households increases as the annual household income level diminishes. The incidence of overcrowding occur most in single-family rental units. Owner -occupied households are impacted less significantly by the incidence of overcrowding. The incidence of overcrowding and households living in substandard housing are more prevalent with the city's older neighborhoods. The growing practice of illegally converting single-family residences to multiple -tenancy uses is also a significant concern. Illegal conversions of this type promote overcrowding of areas zoned for less population density. Illegal conversions place a considerable strain on the provision of public services and erode neighborhood cohesion. New Construction/Demolition Activity The location and type of new residential construction influences the availability of housing in the area. Building permits issued for new construction of detached, single- family dwellings show the greatest activity occurring outside of the city's Target Area neighborhoods. In contrast, the greatest activity of mutli-family development has occurred within Target Area neighborhoods. Review of City building permit activity data for new housing construction and demolition of existing residential housing during the period 1990-1998 clearly indicates the following: Permits were issued for the construction of 1,668 new housing units and the demolition of 219 housing units citywide, accounting for a net increase in the city's housing stock of 1,449 new units. City of Yakima, Washington Consolidated Plan 2000 - Draft 41 The highest overall percentage change in housing inventory occurred in the following areas; accounting for 63% of the 1,449 newly constructed units added to the city's housing stock: Census Tract Neighborhood Area # New Units Pct. Increase 11 South Nob Hill District 262 19.5% 3 Fruitvale District 251 31.7% 6 Milroy Park District 221 11.5% A total of 318 building permits were issued for new single-family structures. Permits for new construction of single-family residential structures were highest in the following areas: Census Tract Neighborhood Area #New Units 11 South Nob Hill District 90 9 Wide Hollow District 40 4 Scenic District 37 Permits for new construction of duplex residences were highest in the neighborhoods south of Nob Hill Boulevard, accounting for 48% of the 446 total number of two-family housing units permitted. Census Tract Neighborhood Area #New Units 11 South Nob Hill District 118 12 Washington District 94 3 Fruitvale District 40 City of Yakima, Washington Consolidated Plan 2000 - Draft 42 A total of 204 permits were issued for mobile/manufactured home single-family units. The highest permit activity for the siting of mobile/manufactured home structures occurred in the following areas; accounting for 70% of all mobile/manufacture home units sited: Census Tract Neighborhood Area #New Units % Total 4 Scenic District 78 38% 3 Fruitvale District 40 20% 2 Northeast District 25 , 12% 15 Southeast District 23 * 11% A total of 219 dwelling units citywide were lost to demolition from 1990 to 1998. The loss of single-family units to demolition was highest in the Southeast and Providence Districts. The Southeast neighborhood area lost 44 single-family residences to demolition from 1990 to 1998, accounting for 20% of all demolition occurring since 1990 (see below). Census Tract Neighborhood Area #New Units Pct. Total 15 Southeast District 44 20% 7 Providence District 29 13% 6 Milroy Park District 16 7% 1 Central Business District 16 7% The Central Business District neighborhood (Census Tract 1) was the only area citywide to experience a net lost in the number of residential housing units during the period of 1990-1998; with the area housing stock losing 17 units overall. The business core area and adjacent neighborhoods north of the business core experienced the greatest loss of multi family structures. The demolition of multi family units within the business core residential area and adjacent Northeast District accounted for 44 of the total 52 units citywide that were lost w demolition. City of Yakima, Washington Consolidated Plan 2000 - Draft 43 Annexation Approximately 3,289 housing units have been added to the city's housing stock since 1990. The city has actively engaged in the annexation of adjacent unincorporated lands, in particular those outside of city boundaries, but within the urban area, receiving city public utilities and services. Residential Sales Multiple Listing Service Year -End Marketing Analysis data provides useful sales, locational, value, and bedroom size information concerning area sales of residential dwellings. Review of MLS listings for residential housing sales occurring from 1990 to 1998 for the Yakima urban area provides the following information. An average of 608 existing homes are being sold each year. Stated as a percentage, ,. approximately 2% of the city's housing is sold annually. The highest number of annual residential sales (708) occurred in 1990 with a total volume exceeding $40 million; however, in 1998 the sale of 680 generated $70.6 million in housing sales. The lowest annual total sales (506) occurred during 1991. Median sale price increased 95% from $44, 725 in 1990 to $87, 000 in 1998, reflecting a median sale price of $79,950 for the sale of existing residential dwellings for the 1990- 1998 period. Average sale price for 1990-1998 was approximately 4% lower than the average list price. See following table. City of Yakima, Washington Consolidated Plan 2000 - Draft 44 City of Yakima Residential Sales Activity, 1990-1998 Source. Multiple Listing Service data, 1990-1998, City of Yakima Note: Median sale price increased $42, 725 or 95% from 1990 to 1998. The sale of existing residential dwellings located within the city's CDBG Target Area from 1990 to 1998 generated $72,996,638 in sales revenue; representing 16% of total sales citywide. Residential sales (1,374) within the Target Area represented 25% of total residential sales citywide (5,472). Target Area neighborhoods experienced an increase in median sale price from $41,950 in 1990 to $85,000 in 1998. The 1998 median sale price of Target Area homes during the decade represent a 102.6% increase since 1990; eclipsing an increase of 95% citywide. City of Yakima, Washington Consolidated Plan 2000 - Draft s3f: Year of Sale _.F. Units Sold ,_ Dollar Volume :f , Median List Price t: " Median Sale Price %:Change in`Median Sale Price 1990 708 $ 40,164, 655 $45,750 $ 44,725 1991 506 $32,234,376 $45,950 $45,000 0.01 1992 589 $44,779,371 $59,950 $57,800 0.28 1993 453 $34,703,364 $69,950 $68,000' ,0.18 1994 687 $65,053,853 $79,950 $78,500 0.15 1995 649 $61,174,628 $79,950 $75,750 (0.04) 1996 586 $59,796,383 $87,000 $85,000 0.12 1997 614 $61,118,945 $84,500 $82,500 (0.03) 1998 680 $70,658,865 $89,950 $87,000 0.05 Totals 5,472 $469,658,865 $79,950 $75,750 0.95 Source. Multiple Listing Service data, 1990-1998, City of Yakima Note: Median sale price increased $42, 725 or 95% from 1990 to 1998. The sale of existing residential dwellings located within the city's CDBG Target Area from 1990 to 1998 generated $72,996,638 in sales revenue; representing 16% of total sales citywide. Residential sales (1,374) within the Target Area represented 25% of total residential sales citywide (5,472). Target Area neighborhoods experienced an increase in median sale price from $41,950 in 1990 to $85,000 in 1998. The 1998 median sale price of Target Area homes during the decade represent a 102.6% increase since 1990; eclipsing an increase of 95% citywide. City of Yakima, Washington Consolidated Plan 2000 - Draft 45 City of Yakima, CDBG Target Area Residential Sales Activity, 1990-1998 Source: Multiple Listing Service data, 1990-1998, City of Yakima Note: Median sale price increased $43,050 or 102% from 1990 to 1998. City of Yakima, Washington Consolidated Plan 2000 - Draft e,xi ,L:, b..`h. Yearn ' Sale ; X�kz"{'2:1L'�`.2�..�`.•yyf'S'..t Sold Dollar Volume piSTYr=164' 4 ednMediatt List Price j;N..*.:.<`., `{Sale Price k..1. edi ' Sale Price 1990 198 $ 6,435,120 $43,950 $ 41,950 1991 176 $6,244,797 $45,000 $44,950 0.07 1992 160 $7,309,039 $59,500 $55,500 0.23 1993 141 $7,290,377 $69,500 $68,000. .0.22 1994 160 $9,415,599 $75,000 $73,375 0.79 1995 138 $8,446,327 $59,999 $53,991 (0.26) 1996 148 $9,582,729 $82,500 $80,000 0.48 1997 117 $7,851,550 $81,950 $80,000 0.0 1998 136 $10,369,100 $87,500 $85,000 0.06 Totals 1,374 $72,996,638 $69,950 $85,000 102.6 Source: Multiple Listing Service data, 1990-1998, City of Yakima Note: Median sale price increased $43,050 or 102% from 1990 to 1998. City of Yakima, Washington Consolidated Plan 2000 - Draft 46 Barriers to Affordable Housing Impediments to the creation of affordable housing opportunities include high unemployment, costs of renovation/rehabilitation of many of the City's older residential structures, the shortage of public funds, and few incentives for private market construction of affordable units for the very low-income, low and moderate income populations. Housing Affordability. . U S. Census and HUD data sources indicate a strong need for housing for families with annual household income below $35, 000. Nearly two-thirds of all households in the city earn less than $35, 000 annually. Census data indicates 53% of the city's housing stock is owner -occupied with a median value of $56, 700 for owner -occupied housing. While housing costs have increased, there has not been a corresponding increase in wages. Housing affordability is a measure of income. 1990 Census data reports the median family income for City of Yakima at 75% of the statewide median of $36,795. 1990 Census data and 1994 HUD data reported 25 percent of all Yakima households as 'very low-income' households, households that earn less than 30 percent of the area median -income. Low-income households; households that earn between 51% and 80% of the area median income comprised 18% of all area households. Forty-five percent of 1990 area households were earning less than 80% of the area median income of $27,723. See Income Distribution Table below. City of Yakima, Washington Consolidated Plan 2000 - Draft. 47 Source: U. S. Department of Housing & Urban Development, CHAS Databook, Table 1, %'art 1, When considered in relation to housing affordability, income levels may be viewed in the context of housing cost burden. HUD defines cost burden as the extent to which gross housing costs, including utilities, exceed 30% of gross household income. Severe cost burden is the extent to which these costs exceed 50% of gross household income. Simply put, when housing costs, including utilities, exceed 30% of household income the housing is not affordable. Forty percent of all renter households and 12% of all owner households in Yakima were paying housing costs greater than 30% of their household income in 1990. See Table below. The following table indicates the estimated housing cost burden for Yakima area households by occupancy type (owner or renter), by household income, and percentage housing cost burden. City of Yakima, Washington Consolidated Plan 2000 - Draft Income Distribution of HousekokiS Ci o Yakima Total Households 21,628 Very Low Income I Low Income 'Moderate Income I 0-30% 1 31%-50% 1 81%-95% I 51%-80% I 4,001 I 18% I 3,258 I 2,590 I 1,420 15% I 12% I 7% I Source: U. S. Department of Housing & Urban Development, CHAS Databook, Table 1, %'art 1, When considered in relation to housing affordability, income levels may be viewed in the context of housing cost burden. HUD defines cost burden as the extent to which gross housing costs, including utilities, exceed 30% of gross household income. Severe cost burden is the extent to which these costs exceed 50% of gross household income. Simply put, when housing costs, including utilities, exceed 30% of household income the housing is not affordable. Forty percent of all renter households and 12% of all owner households in Yakima were paying housing costs greater than 30% of their household income in 1990. See Table below. The following table indicates the estimated housing cost burden for Yakima area households by occupancy type (owner or renter), by household income, and percentage housing cost burden. City of Yakima, Washington Consolidated Plan 2000 - Draft 48 , brotaink cott`Butdeil;r6 City of Yakima Renter Households Owner Households #HHs Pct. #HHs Pct. Total Total Total Households: , ' , 9,884 "46% 11,744 54% Income Group: ... . _ 0 — 30% Ain."' 2,468 , 25% 790 7% %with any housing problems 2,073 84% 514 65% %Cost Burden > 30% 1,999 81% 474 60% % Cost Burden > 50% 1,580 64% 324 41% 1,70 .17% 887 % with any housing problems 1,345 79% 390 44% % Cost Burden > 30% 1,209 71% 355 40% %Cost Burden > 50% 341 20% 106 12% 51 80% Wilt , ' ,i 2,104 21% 1,897 16% %with any housing problems 947 45% 493 26% %Cost Burden > 30% 694 33% 417 22% %Cost Burden > 50% 63 3% 57 3% 814-9SM' i*,:---" ,i., ' ; :' -, 704 ,'.' "-' 7% ' 716 % with any housing problems 92 13% 158 22% %Cost Burden > 30% 63 9% 107 15% % Cost Burden > 50% 7 1% 7 1% -- Source: U S. Department of Housing & Urban Development CHAS Databook, Table 5, Parts 5, 8, 1990 *MN - Median Family Income City of Yakima, Washington Consolidated Plan 2000 - Draft 49 Community Development (Priority Non -Housing Needs) The Constitution for the State of Washington has a clause that prohibits the lending of credit by a government entity, including units of local government. This clause has a dramatic and adverse impact on the ability of Washington State communities to attract and compete for new businesses. In most states, economic development efforts by state and local communities are assisted by their ability to provide incentives to prospective businesses. The Central Business District (CBD) is the single largest shopping district between Spokane and Seattle, and the dominant center for finance, professional services, governmental functions, conventions, social and cultural activities: The Central Business District is a significant source of tax revenues, and it is important to protect and enhance its economic viability. Infrastructure improvements within the city's Target Area neighborhoods are integral to any attempts to attract new investment and the implementation of effective revitalization 10 those areas. Building activity has typically occurred in areas where public services and infrastructure currently exist. Where adequate infrastructure does not exist, the need for public improvement grants to repair or replace substandard infrastructure is needed to retain and restore the infrastructure in older areas of the city. Consequently, the older areas of the city despite the significant level of need are constantly bypassed for newer, more recently developed areas. The result is the continued neglect and omission of infrastructure improvements within those areas that have the greatest need. Target Area residents desire a more equitable distribution of infrastructure upgrades and improvements activity so that they may receive equitable benefits with other parts of the city. Infrastructure improvements include re-evaluation and upgrades to the following: City of Yakima, Washington Consolidated Plan 2000 - Draft 50 *Roadways and existing traffic control system *Domestic water and irrigation lines *Sewer connections *Storm drain interceptors *Street lighting *Sidewalks, pedestrian walkways and bike paths City of Yakima, Washington Consolidated Plan 2000 - Draft 51 Housing & Community Development Strategic Plan Housing & Community Development Resources Agency partnerships and programs administered by the Office of Neighborhood Development Services (ONDS) will continue efforts to leverage additional federal, state, and private resources to use with federal funding. ONDS currently implement programs that address both housing needs and neighborhood conservation efforts. Current programs in place address the following housing and community development needs: First -Time Homebuyers Program: The First -Time Homebuyers Program provides assistance to low to moderate -income families to purchase property that ONDS has purchased and restored through the Acquisition/Restoration Program, or built through the Homeownership, New Construction program or obtained through repossession from foreclosure. Down Payment Assistance Program: The Down Payment Assistance Program provides a flat $4,000 towards down payment and closing costs. Single -Family Rehabilitation Program: The Single -Family Rehabilitation Program assists low to moderate -income homeowners to rehabilitate their homes so that it meets current local codes, and/or addresses housing needs to meet family size. Senior/Disabled Program: The Senior/Disabled Program assists low-income senior/disabled homeowners with health and safety-related home repairs that left unattended could potentially displace them. Paint Program: The Paint Program assists low-income senior/disabled homeowners re- paint their homes. City of Yakima, Washington Consolidated Plan 2000 - Draft 52 Lot Acquisition Program: HOME funds are used to purchase lots within the City of Yakima Target Area for future HOME projects. Community Service Program: The Community Service Program provides assistance to non-profit agencies, associations, and organizations for eligible programs or projects. Eligible activities allow for the use of grant funds for a wide range of public service activities including, but not limited to, employment services, crime prevention, childcare, substance abuse services, recreational services, and neighborhood improvement projects. Economic Development: The City of Yakima Office of Neighborhood Development Services invests Community Development Block Grant funds to promote, economic development program activities to address the need for sustainable employment opportunities. Public Facilities: The City of Yakima Office of Neighborhood Development Services provides Community Development Block Grant funds to assist City departments on eligible Target Area projects. Eligible projects for public facilities include, but are not limited to, acquisition, construction, reconstruction, rehabilitation, or installation of public facilities and improvements. Target Area Sidewalk Improvement Program: The City of Yakima Office of Neighborhood Development provides Community Development Block Grant funds to assist Target Area neighborhoods correct hazardous sidewalk conditions. Neighborhood Side Sewer & Waterline Program: The Neighborhood Side Sewer & Waterline Program provides assistance to City residents who desire to connect to City sewer and/or water. The City of Yakima Office of Neighborhood Development Services will provide a $1,000 loan for water and sewer connection with a deferred connection fee loan. Loan interest is zero percent. City of Yakima, Washington Consolidated Plan 2000 - Draft 53 Neighborhood Code Compliance Clean -Up Program: CDBG Program dollars are used to assist Target Area neighborhood correct Municipal Code violations that have resulted in the issuance of a citation from a City of Yakima Code Compliance Officer. ONDS will provide matching CDBG dollars to assist in the total cost of abatement of a violation up to a maximum of $500. Program Administration: The City of Yakima Community Development Block Grant (CDBG) Program will implement and operate projects using resources derived from federal, state and local entities. This includes elements for citizen participation and leadership through technical assistance to our partner agency groups. Fair Housing Fair housing is defined as equitable and fair housing opportunities to all persons regardless of their race, creed, color, family origin, religious preference or family status. It is the position of the City of Yakima Office of Neighborhood Development Services (ONDS) to offer housing opportunities to qualified members of the community on a fair and equitable basis. This is being accomplished through the use of alternative media coverage, "bilingual" newspapers and radio advertising. The city's close relationship with area housing and social service providers allows us to develop and maintain a strong referral process that has resulted in applications from persons who would not have otherwise submitted an application for services. ONDS has in place an appeal process for program applicants who feel an unfair decision has taken place. Most fair housing obstacles are being addressed through an identification and referral to FHEEO State and Federal governmental agencies for remedy. City of Yakima, Washington Consolidated Plan 2000 - Draft 54 Anti Poverty Strategy The City of Yakima shall, in cooperation and coordination with area social and housing service providers, private lenders, developers, pursue housing resources that provide rent and construction subsidies, promote a mixed concept in the development of housing units, and actively encourage and support the attraction of economic development activities to our community. These activities ideally shall be such as to alleviate current economic restraints which discourage developers from providing units affordable to the low to moderate income households, and result in lower family incomes that inhibit a disproportionate share of our community households from acquiring adequate rental housing or home ownership with extensive development or long-term rent subsidies. City of Yakima, Washington Consolidated Plan 2000 - Draft 55 Strategic Plan The Strategic Plan segment of the Consolidated Planning process is intended to act as a five year business plan which will guide the investment of CDBG and HOME dollars in our community. In each of seven components it does this by first defining a general mission statement. For the City of Yakima this mission can be summarized in the following manner: It is the purpose of the City of Yakima Office of Neighborhood Development Services to assist in developing a viable community by providing decent, affordable housing, a suitable living environment, and expanding economic opportunities, principally for persons of low and moderate inc»me. In general, the Strategic Plan must identify the following: 1. General priorities for allocating investments geographically within the City, and by priority of need. A portion of the City of Yakima has been designated by the City Council as a CDBG Target Area. Need has been analyzed, and a list of priorities compiled. From these priorities we have selected the following as the focus of our efforts during the coming five years: A. Housing—Construction, Rehabilitation, Homeownership B. Infrastructure — Utilities, Sidewalks, Roads C. Youth Programs, Public Facilities, and other Public Services — Youth Centers, services to special need population groups D. Economic Development — Job Creation and Retention, Technical Assistance to existing and expanding businesses E. Leadership Development — Actively seeking potential neighborhood leaders, and assisting in the provision of training programs to develop necessary skills. 2. Basis for Assigning Priorities. These priorities have been selected as the result of the intense process of gathering public input from elected officials, community action groups, other public agencies, and the general public. City of Yakima, Washington Consolidated Plan 2000 - Draft 56 3. Obstacles. There are a number of obstacles to providing these services to our community. These can be summarized in one word, MONEY. In any of the identified areas there is potential need that could spend more than our entire allocation for the year. We have attempted to find some balance in providing programs and services, but there is not enough money. 4. Allocation of Funds. Funds are made available for the identified priorities through the City Budget process, and in appropriate areas a grant application process. 5. Measurable Benchmarks. In each of the priority need areas benchmarks of activity have been identified to enable us to track our progress. They are identified in a form HUD provides for this purpose. The seven required components of the Strategic Plan are: Affordable Housing. The City has chosen to address the housing needs of low and moderate -income persons through homeownership and rehabilitation programs. The housing needs of very low income individuals are met through pr•ogr•ams operated by the Housing Authority and other area non profits. Funds invested in homeownership and rehabilitation programs will benefit the local housing market by assisting with down payment and closing costs. First-time homebuyers will have the opportunity through below market rate loans to purchase a home with affordable payments. Rehabilitation and new construction will provide neighborhood improvements as well as the economic benefit of funds spent in the local building construction economy. Homelessness. There are some outstanding organizations working to combat homelessness in Yakima. Taken together, they form a group that provides for a continuum of care for these persons. The object is to provide services that prove a homeless person (whatever the cause of his or her• homelessness) from living on the street to self-sufficiency in their own residence. The Office of Neighborhood Development Services has a history of successful participation in these efforts, for example, during 1999 we partnered with other organizations to produce two City of Yakima, Washington Consolidated Plan 2000 - Draft 57 applications for funding to combat homelessness. We have received word that the Veterans Administration project has been approved for funding, and we are still waiting for approval of our application for HUD funding of a substance abuse transitional housing project. Special Needs Housing. This category includes housing assistance for a number of groups, other than the homeless. Elderly, frail elderly, persons with disabilities, substance abusers, and persons with AIDS are served here. There are currently more than three separate senior housing projects in the planning stages in Yakima, and we will continue to assist in the planning and development of these. New public housing projects with facilities for those with disabilities have recently been completed by the housing authority. As additional need of this type is documented we will work with others to fill it. In our portion of the State of Washington the housing needs of those with AIDS are being met through a regional consortium. We will continue to support this effort. Non -Housing Community Development. This category includes efforts to provide support in creating economic development and a suitable living environment. Included are neighborhood revitalization efforts. It was with this objective in mind that our office was recently renamed Neighborhood Development Services. Our mission is larger than "housing", and focuses on a broad variety of needs, recognizing that many of our housing problems are derived from economic issues such as low wages. Therefore, we have and will continue to commit a significant portion of our resources to these efforts. Barriers to Affordable Housing. The greatest single barrier to housing affordability in our area is the poor pay so many of our residents earn. (Please see Northwest Job Gap Study attached) Yakima is in an interesting position with regard to housing. In the Seattle area it is not unusual to spend more for a residential lot than we do for a very nice house. We are currently able to build and sell a new home on its own lot for less than $100,000. We have many decent older homes that sell for less than $75,000. Our Planning Department is afkk to approve nein projects in a very reasonable time, as opposed to the several mart# wait currently being experienced in other areas. City of Yakima, Washington Consolidated Plan 2000 - Draft 58 Our rental agencies report a high vacancy rate that keeps our rents much lower than other areas of the state. Directly or indirectly, all these add up to a reasonably affordable housing market. The problem here is not the cost of housing; it is the other side of the same coin, low wages. With this in mind the City has historically chosen to concentrate its efforts on assistance with homeownership. Current interest rates produce monthly payments on modestly priced homes that are lower than equivalent rents in many cases. The challenge facing many area residents is the inability to save for down- payment and closing costs, so our most popular program is very effective. We will continue to provide down payment assistance grants and frst-time homebuyer assistance to the maximum extent possible with the funds we receive. Anti -Poverty Strategy. It would be difficult to overstate the impact that living in poverty has on individuals and society. The City of Yakima is firmly committed to combating poverty on all fronts. The chief weapon in this battle is economic development. This has been identified by our city council as our number one priority. We are actively engaged in fostering and pursuing new partnerships with both public and private organizations to create new employment opportunities and better utilize our limited resources to meet community needs. For example, the city is in the process of selling a portion of a municipal park as the site offuture expansion of the local community college, which will become a four-year institution. The city is also pursuing the opportunity to secure additional finds, both public and private, for development needs. Another challenge that is growing on the horizon is the welfare to work regulations passed by Congress. The limited lifetime welfare benefits now available to persons and families have already had an effect on our local economy; reduced benefits have reduced sales in local stores. This will continue to grow as more people reach the five-year limit for benefits. To combat this problems we will increase our job development efforts in order to provide more opportunities to those coming off welfare. City of Yakima, Washington Consolidated Plan 2000 - Draft 59 We have identified development of community-based leadership as a priority in allocating our resources. We anticipate that by doing so we will be able w more effectively marshal one of our greatest resources, our citizenry, in an increased effort to combat poverty on all fronts. Coordination with Other Organizations. A major key in winning our battle with poverty will be the partnerships we are able to mobilize. We do not have all the answers. We have limited resources. However, others have answers, skills, and funding sources not available to us. Coordination of all our efforts will continue to be a high priority as we work to duplicate the successes of this effort. We will continue to meet regularly with citizens, agencies, businesses, npn profits and other organizations to present a coordinated and united front in our efforts. As part of this plan we are required to compile a list of needed capital projects and community services, and estimate the five-year cost of these items. The estimated cost is approximately equal to 100 years of our entire CDBG and HOME funding, if nothing was taken out for operating costs. In one sense then, the exercise is meaningless, since there is no way to meet even a small fraction of the identified need within the next five years. However, it does serve to help us idents priorities. Having done this we have set targets for five-year goals, and made one-year plans for how we will invest our finds in order to have the greatest impact. City of Yakima, Washington Consolidated Plan 2000 - Draft 60 City of Yakima 2000 One -Year Action Plan Description of Activities to be Undertaken The City of Yakima will invest CDBG and HOME dollars according to the attached budget. Each of these activities was identified as a significant need in the planning process, and will result in efforts to adequately address the specified need. The following is a brief explanation of each of these programs. CDBG Programs Our Community Service Program projects are selected as the result of a Request for Proposals (RFPs) issued each year. Various area non-profit agencies are'invited to submit proposals for projects ranging from youth services to agency rental assistance. These applications are evaluated and selected by a community panel, subject to City Council approval. For the year 2000, we have allocated $50,000 for this program. Exact target groups and numbers to be served will be identified in the proposals when submitted. An area of concern for both citizens and city staff is the condition of local sidewalks. Many city sidewalks were constructed around the turn of the century (1900), and are due to be replaced. Others have been damaged by growing tree roots. Large areas have never had sidewalks. Our Sidewalk Program is designed to help meet these needs. We will select areas where a modest investment can have a significant impact, a high traffic block with no sidewalk, for example. Where trees have destroyed portions, we will replace those that are dangerous. This will permit u s to maximize the benefit from the $75,000 budgeted. The amount of sidewalk installed, and the number of beneficiaries will depend on the specific projects selected during the year. This selection will be coordinated through citizen and staff input. One of our most effective efforts has been our Paint Program. With the $25,000 provided last year we were able to paint more than 15 homes belonging to senior citizens or disabled individuals. This was done in coordination with Habitat for Humanity, who located volunteers who provided the labor for the program. Volunteers came from as far away as Pennsylvania, others from Minnesota. Our only expense is for the material, so the money serves a much greater number of people. Beneficiaries include the City of Yakima, Washington Consolidated Plan 2000 - Draft 61 the money serves a much greater number of people. Beneficiaries include the homeowners, the volunteers, and the neighborhood. We have noticed a significant number of surrounding homes being painted shortly after completion of our projects. It is as if neighbors are inspired by the improvement, and want their own hone to look as good. We expect to paint a similar number of homes in 2000. In addition, for the first time we have allocated $10,000 in this line to provide funds for an anti -graffiti program. This program is still being developed; funds will be used to combat graffiti. In the annual budget for this year, the Yakima City Council has identified Economic Development as a top priority. Due to the needs identified in this document and elsewhere, we believe that the solution to many local challenges is to develop more, and better paying jobs. While the specific projects to be assisted with the $145,200 allocated to this item have yet to be identified, the results will comply with HUD requirements for job creation or retention. In terms of getting good value for the funds invested, one of our most successful program is Housinji Counseling. Each year we provide assistance to thousands of clients, who either walk in or call in to our office. We give written information and referrals to various agencies working in the area of landlord/tenant problems, and fair housing issues. With only $15,961, we provide a valuable service. The role of assistance for Public Facilities is a fairly recent use of CDBG funds in Yakima. In the 2000 program year we will utilize the allocated $78,000 to provide park playground equipment, expand walkways, and rehabilitate a city -owned building for youth training and community use. These projects will provide infrastructure improvements in some of the most needy neighborhoods in the city. Especially in some of the most recently annexed portions of the city, there are large neighborhoods not currently served by all city utilities. We have chosen to assist in meeting these service needs through a partnership effort. Our part of this project is funded through our Infrastructure programs. In partnership with the city Engineering Department, as well as Water and Wastewater divisions, and the State trust fund. Additional funds will be provided by local residents within their ability to participate. Other funds may be used for individual connections, as described below. It is currently City of Yakima, Washington Consolidated Plan 2000 - Draft 62 planned to develop local improvement districts in the Fruitvale area that will serve up to 200 homes, and the needed water and sewer mains will be developed over the next four years. We have increased the 2000 budget for this effort to $95, 000. Each year we allocate some CDBG funds for Single Family Housing Rehabilitation. This year we have set aside $75,000 for this program. This will provide funds for at least three homes to be renovated Our most in -demand program provides for Elderly and Disabled Home Repairs. With the $80, 000 allocated we will make emergency and other repairs to the homes of over 30 older or disabled persons. These repairs enable the owners to remain in their own homes when otherwise they might be faced with moving to a nursing facility. Because of the nature of the repairs we do, at times it is necessary to assist with Relocation expenses associated with the repairs. At times people may need to stay briefly in another location while repairs are completed on their bathroom, for example. This year's budget includes $4,230 for these expenses. While it is not part of the CDBG program specifically, the proposed Section 108 Loan funds are included in this budget and action plan. If the application is approved, up to 5 million dollars will be available for the project. Repayment of the loan will come from the project itself, with the loan guaranteed by CDBG funds. Required and necessary Program Operations expenses add significantly to the budget. This year salaries and other expenses will total $419,593 dollars. Additional Administration costs for items not directly linked to program operations total $241,216 dollars. The Total CDBG Budget for the year 2000 is $6,315,000 dollars. City of Yakima, Washington Consolidated Plan 2000 - Draft 63 In addition to the CDBG program, the City of Yakima Office of Neighborhood Development Services also administers the HOME Investment Partnerships program. This program provides housing assistance for a variety of eligible projects. We anticipate receiving $536,000 in new funds for this program, and an additional estimated amount of program income (repayment of loans, etc.) in the amount of $112,000 dollars. The total budget for HOME projects for the year 2000 is an estimated $648,000 dollars. We are allowed to spend up to 10% of this on Administration; we have budgeted $59, 800 in this category. HOME funds will be spent on a variety of projects. The first 15% ($80,400) of all HOME dollars must be allocated for use by local low-income housing providers that have been designated as Community Housing Development Organizations (CHODOs). These organizations range from homeless providers to Habitat for Humanity. Each provides housing assistance to a segment of the local community. If the full 15% is not spent by CHDOs, the balance must be returned to HUD. The balance of HOME program funds ($507,800) will be spent on our Single -Family Home Programs. We have allocated up to $100,000 for Downpayment Assistance. This will provide as much as $4,000 to each of 25 families for part of the downpayment and closing costs associated with the purchase of their home. The First -Time Homebuyer program will spend up to $192,500 to assist as many as seven families to purchase a new or rehabilitated home. We will provide $150,000 for the purchase and rehabilitation (and resale) of three significant home in the Target Area. The final $65,300 of the HOME budget will be spent on Lot Acquisition; the purchase of several infill city lots for future development of affordable housing. City of Yakima, Washington Consolidated Plan 2000 - Draft OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES CDBG AND HOME PROGRAM— PROPOSED 2000 BUDGET PROJECTED EXPENDITURES 331 -FUND CDBG COMMUNITY SERVICE PROGRAM (Includes Youth Projects & Neighborhood Improvement Projects) SIDEWALK PROGRAM ( Target Area sidewalks) CDBG PAINT PROGRAM (SIF Paint Program and Graffiti Abatement Project) ECONOMIC DEVELOPMENT (Need for Substantial employment Opportunities) HOUSING COUNSELING -333 PUBLIC FACILITIES $50,000.00 $75,000.00 $35,000.00 $145,200.00 $15,961.00 $78,800.00 (Includes playground equip & security Lighting, Fire station Training facility) CDBG-INFRASTRUCTURE $95,000.00 (Includes City-wide sewer & water) CDBG SINGLE FAMILY $75,000.00 mer Occupied S1 F Rehab) 3ERLYIDISABLED PROGRAM $80,000.00 (32 Elderly/Disabled Regular and Emergency Rehab Projects) RELOCATION $4,230.00 DOWNTOWN MALL EXPANSION (108 Loan) $5,000,000.00 331 PROGRAM OPERATIONS $419,593.00 (Staff and Operating costs) ADMINISTRATION -339 $241,216.00 (Staff and Operating costs) TOTAL CDBG & 108 LOAN EXPENDITURES $6,315,000.00 HOME EXPENDITURES ADMINISTRATIVE COST $59,800.00 HOME CHDO $80,400.00 HOME SINGLE FAMILY PROGRAMS*** $507,800.00 TOTAL EXPENDITURES $6,963,000.00 .M skioplbuip.I 2000'pub-rol-bpt2 PROJECTED REVENUE CDBG ENTITLEMENT 2000 CDBG REVENUE SECTION 108 LOAN HOME ENTITLEMENT , HOME REVENUE *** Downpayment Assistance(25 families wl$4,000) *** First -Time Home Buyer(7 Families wlup to $30,000) *** Acquisition!Restoration(3 Houses at $50,000) *** Lot Acquisition $1,008,000.00 $307,000.00 $5,000,000.00 $536,000.00 $112,000.00 $6,963,000.00 $100,000.00 $192,500.00 $150,000.00 $65,300.00 JoUiaD RTH di STUDY' Idaho• Montana Oregon • Wash ngwn SEARCHING FOR WORK THAT PAYS NORTHWEST POLICY CENTER AND NORTHWEST FEDERATION OF COMMUNITY ORGANIZATIONS JANUARY 1999 ABOUT THE NORTHWEST JOB GAP STUDY The Northwest Job Gap Study is a joint project of the Northwest Policy Center at the University of Washington Graduate School of Public Affairs and the Northwest Federation of Community Organizations. The Northwest Policy Center is an applied policy research center that works with policy makers and practitioners to improve strategies for a vital Northwest economy, with an emphasis on the health and well-being of the region's people, communities, and environment. The Northwest Federation of Community Organizations is a regional federation of four statewide, community-based social and economic justice organizations: Montana People's Action, Idaho Citizen's Network, Oregon Action, and Washington Citizen Action. These organizations represent a broad based, grassroots constituency including disenfranchised and low -to -moderate income residents. They engage in community organizing and coalition building, and conduct issue campaigns at the state and community level. Guiding the Northwest Job Gap Study and its research and analysis, and education and outreach efforts are state steering committees made up of representatives of business, labor, government, and community groups. Funding for the Northwest Job Gap Study is provided in part by a grant from the Northwest Area Foundation. For more information contact: Northwest Federation of Community Organizations 100 South King Street, #240 Seattle, WA 98104 206/382-2082 (phone); 206/389-0049 (fax) nwfco@seanet.com http://www.seanet.com/nwfco/ Northwest Policy Center University of Washington Box 353060 Seattle, WA 98195-3060 206/543-7900 (phone); 206/616-5769 (fax) npcbox@u.washington.edu http://weber.u.washington.edu/—npcweb/ SEARCHING FOR WORK THAT PAYS: NORTHWEST JOB GAP STUDY EXECUTIVE SUMMARY 1 PURPOSE OF THE STUDY 7 WHAT IS A LIVING WAGE? 7'' ARE WE CREATING ENOUGH JOBS THAT PAY A LIVING WAGE? 10 CONCLUSION & NEXT STEPS 21 STATE FINDINGS 23 IDAHO 23 MONTANA 27 OREGON 31 WASHINGTON 35 TECHNICAL NOTES & RESOURCES 39 SEARCHING FOR WORK THAT PAYS: NORTHWEST JOB GAP STUDY EXECUTIVE SUMMARY The Northwest Job Gap Study explores the gap between the number of living wage jobs being created in the Northwest and the number of people needing living wag wa0 jobs. It also seeks to raise awareness and promote public dialogue about the job gap and policy options to address it. This first phase of the Northwest Job Gap Study—which covers the states of Idaho, Montana, Oregon, and Washington—aims to provide answers to the questions: What is living wage? And arc we creating enough jobs that pay a living wage? Findings are based on data from 1996, the most recent year for which data on job openings, wages, and employment arc available. WHAT IS A LIVING WAGE? A living wage is a wage that allows families to meet their basic needs without resorting to public assistance and provides them some ability to deal with emergencies and plan ahead. It is not a poverty wage. Living wages are calculated on the basis of family budgets for several household types. Family budgets include basic necessities, savings, and state, local and federal taxes. Living wages for a single adult range from $9.02 an hour or $18,760 a year in Montana to $10.25 an hour or $21,322 a year in Washington. This assumes full time work on a year round basis. For a single adult with two children, living wages range from $14.42 an hour or $29,995 a year in Idaho to $16.86 an hour or $35,079 a year in Washington. Differences in state living wage estimates arc largely attributable to differences in housing and child care costs. A comparison of living wages to state minimum wages shows that the minimum wage is about half of the living wage for a single adult and 30 percent of the living wage for a single adult with two children. The median wage in each state is slightly greater than the living wage for a single adult, which suggests that slightly more than half of the workers in each state earn the living wage for a single adult. For a single adult with two children, the median wage is about two thirds of the living wage. SEARCHING FOR WORK THAT PAYS: NORTHWEST JOB GAP STUDY EXECUTIVE SUMMARY The Northwest Job Gap Study explores the gap between the number of living wage jobs being created in the Northwest and the number of people needing living wage jobs. It also seeks to raise awareness and promote public dialogue about the job gap and policy options to address it. This first phase of the Northwest Job Gap Study—which covers the states of Idaho, Montana, Oregon, and Washington—aims to provide answers to the questions: What is a living wage? And are we creating enough jobs that pay a living wage? Findings are based on data from 1996, the most recent year for which data on job openings, wages, and employment are available. WHAT IS A LIVING WAGE? A living wage is a wage that allows families to meet their basic needs without resorting to public assistance and provides them some ability to deal with emergencies and plan ahead. It is not a poverty wage. Living wages are calculated on the basis of family budgets for several household types. Family budgets include basic necessities, savings, and state, local and federal taxes. Living wages for a single adult range from $9.02 an hour or $18,760 a year in Montana to $10.25 an hour or $21,322 a year in Washington. This assumes full time work on a year round basis. For a single adult with two children, living wages range from $14.42 an hour or $29,995 a year in Idaho to $16.86 an hour or $35,079 a year in Washington. Differences in state living wage estimates arc largely attributable to differences in housing and child care costs. A comparison of living wages to state minimum wages shows that the minimum wage is about half of the living wage for a single adult and 30 percent of the living wage for a single adult with two children. The median wage in each state is slightly greater than the living wage for a single adult, which suggests that slightly more than half of the workers in each state earn the living wage for a single adult. For a single adult with two children, the median wage is about two thirds of the living wage. ARE WE CREATING ENOUGH JOBS THAT PAY A LIVING WAGE? The Northwest economy is not creating enough living wage jobs for all those who need them, according to several indicators. These include the number of working age households compared to the number of jobs that pay a living wage, the percentage of jobs and job openings that pay less than a living wage, and the number of job seekers compared to the number of job openings that pay a living wage. A comparison of working age households to jobs that pay a living wage shows there were more working age households than living wage jobs in every Northwest state in 1996, as shown in the charts below. The shortfall between the number of working age households and WORKING AGE HOUSEHOLDS COMPARED TO JOBS THAT PAY A LIVING WAGE FOR A SINGLE ADULT WA OR ID 0 331,100 2.73,505 265,980 169,228 500,000 1,000,000 ® Number of Working Age Households ■ Number of Jobs that Pay a Living Wage for a Single Adult 1,500,000 2,000,000 WORKING AGE HOUSEHOLDS COMPARED TO JOBS THAT PAY A LIVING WAGE FOR A SINGLE ADULT WITH TWO CHILDREN WA OR ID MT 2 0 500,000 1,000,000 ® Number of Working Age Households ■ Number of Jobs that Pay a Living Wage for a Single Adult with Two Children 1,500,000 2,000,000 the number of jobs that pay a living wage for a single adult ranges from about 58,000 in Idaho to about 275,000 in Washington. For those jobs that pay a living wage for a single adult with two children, the shortfall ranges from about 200,000 in Montana to over 1 million in Washington. About 40 percent of all jobs in the Northwest pay less than a living wage for a single adult and about 75 percent pay less than a living wage for a single adult with two children. The job market that job seekers face is similarly limited. Of all job openings, 40 to 50 percent pay less than a living wage for a single adult and 70 to 80 percent pay less than a living wage for a single adult with two children, as shown in the chart below. It is important to note the distinction between jobs and job openings. Not all jobs come open during the course of a year. Job openings are of particular interest because they provide employment opportunities for people looking for work. The percentage of jobs and job openings that pay a living wage vary from state to state for a number of reasons, including the mix of industries and related occupations in a state, and the prevailing wage levels, which also vary from state to state. JOB OPENINGS THAT Do NOT PAY A LIVING WAGE 100% — 81% 77% Job openings that do not pay a living wage for a single adult with two children ®Job openings that do not pay a living wage for a single adult 72% MT ID 01 WA There are also more people looking for work than there are job openings that pay a living wage. As shown in the table and charts on the following page, for each job opening that pays at least the living wage for a single adult, there are on average four to six job seekers, depending on the state. For each job opening that pays at least the living wage for a single adult with two children, there are on average 10 to 17 job seekers. 3 Job Gap Ratios (Job Seekers per Job Opening) Idaho Montana Oregon Washington All Job Openings 2 to 1 3 to 1 3 to 1 3 to 1 Job Openings Paying a Living Wage Single adult 4 to 1 6 to 1 6 to 1 5 to 1 Single adult with two children 10 to 1 17 to 1 14 to 1 12 to 1 Job gap ratios are calculated by dividing the number of people who were looking for work at some point during 1996 by the number of job openings that year. The ratios indicate that, for example, there are four to six times as many job seekers as there are job openings JOB SEEKERS COMPARED TO JOB OPENINGS THAT PAY A LIVING WAGE FOR A SINGLE ADULT WA OR ID MT 357,243 SI Number of Job Seekers ■ Number of Job Openings that pay a living wage for a single adult I 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 JOB SEEKERS COMPARED TO JOB OPENINGS THAT PAY A LIVING WAGE FOR A SINGLE ADULT WITH TWO CHILDREN WA OR ID MT 357,243 II Number of Job Seekers IN Number of Job Openings that pay a living wage for a single adult with two children I I I I 1 I 1 1 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 4 that pay at least the living wage for a single adult, not necessarily that there are four to six people competing for each job of that type. The ratios do not take into account characteristics of job seekers such as their household size, their skills, or education and training. Despite strong growth in the regional economy and the creation of many new jobs over the last decade, the Northwest is not creating enough living wage jobs for all those who need them. Findings from the first phase of the Northwest Job Gap Study are intended to help guide and shape the efforts of business, labor, government, and the community—in terms of both policy and practice—around economic, workforce, and community development. Next phases of the Northwest Job Gap Study will focus on identifying which occupations and industries provide living wage job opportunities to people needing them; analyzing workforce demographics such as race/ethnicity, gender, and education and training levels in the context of living wage jobs; and identifying ways to promote living wage jobs and make sure people needing these jobs are able to get and keep them. Also, education and outreach will be conducted to raise awareness and promote public dialogue about the job gap. 5 SEARCHING FOR WORK THAT PAYS: NORTHWEST JOB GAP STUDY PURPOSE OF THE STUDY The Northwest Job Gap Study explores the gap between the number of living wage jobs being created in the Northwest and the number of people needing living wage jobs. It also seeks to raise awareness and promote public dialogue about the job gap and policy options to address it. The Northwest Job Gap Study—which covers the states of Idaho, Montana, Oregon, and Washington—aims to provide answers to the questions: • What is a living wage? • Are we creating enough jobs that pay a living wage? • Which occupations and industries provide living wage job opportunities for people needing them? • How can we promote living wage jobs and make sure people needing these jobs are able to get and keep them? This report examines the first two of these questions. Findings are based on data from 1996, the most recent year for which data on job openings, wages, and employment are available. WHAT IS A LIVING WAGE? A living wage is a wage that allows families to meet their basic needs without resorting to public assistance and provides them some ability to deal with emergencies and plan ahead. It is not a poverty wage. Living wages are calculated on the basis of family budgets for several household types. Family budgets include basic necessities such as food, housing and utilities, transportation, health care, child care, clothing and other personal items; savings; and state, local, and federal taxes. (Family budgets are presented in the State Findings section of this report. Detailed information on components of the family budgets can be found in the Technical Notes & Resources section.) State by state living wage estimates, as shown in the table below, are: • For a single adult, the living wage ranges from $9.02 an hour or $18,760 a year in Montana to $10.25 an hour or $21,322 a year in Washington. This assumes full time work on a year round basis. 7 • For a single adult with one child, the living wage ranges from $11.68 an hour or $24,302 a year in Idaho to $13.12 an hour or $27,288 a year in Washington. • For a single adult with two children, the living wage ranges from $14.42 an hour or $29,995 a year in Idaho to $16.86 an hour or $35,079 a year in Washington. • For two adults, one of whom is working, with two children, the living wage ranges from $12.29 an hour or $25,559 a year in Montana to $14.04 an hour or $29,197 a year in Oregon. • For two adults, both of whom are working, with two children, the living wage ranges from $16.36 an hour or $34,032 a year in Idaho to $18.45 an hour or $38,369 a year in Washington. This means that the combined wages of both working adults need to total this amount. Differences among state living wage estimates are largely attributable to differences in housing and child care costs. Living Wage Estimates Idaho Montana Oregon Washington Single adult $9.22 $9.02 $10.07 $10.25 Single adult with one child $11.68 $11.71 $13.08 $13.12 Single adult with two children $14.42 $14.80 $16.36 $16.86 Two adults (one working) with two children $12.51 $12.29 $14.04 $13.95 Two adults (both working) with two children $16.36* $16.58* $17.98* $18.45* * The combined wages of both working adults need to total this amount. One way of measuring the adequacy of incomes is to compare the living wage to minimum wages, average wages, and median wages. Minimum wages are about half of the living wage for a single adult and about 30 percent of the living wage for a single adult with two children, as shown in the chart below. MINIMUM HOURLY WAGE AS A PERCENT OF LIVING WAGE 100% — 80% — 60% — 40% — 20% — 0% 46% 53% 29% 32% 47% ■ Single adult ■ Single adult with two children 29% 48% 29% ID ($4.25) MT ($4 75) OR ($4.75) WA ($4.90) 8 State average annual wages are higher than the living wage for a single adult, ranging from 113 percent of the living wage in Montana to 135 percent in Washington, as shown in the chart below. However, State average wages are lower than the living wage for a single adult with two children, ranging from 69 percent in Montana to 82 percent in Washington. AVERAGE ANNUAL WAGE AS PERCENT OF LIVING WAGE 140% — 120% — 100% — AO% — 60% — 40% — 20% - - 0% 122 ▪ Single adult ■ Single adult with 2 children 135 129 II) ($23.362/yr) MT ($21, 144/yr) Ofl ($27,046/yr) WA ($28,87 I/yr) The median wage in each state is slightly greater than the living wage for a single adult, ranging from 104 percent in Montana to 114 percent in Washington, as shown in the chart below. This suggests that slightly more than half of the workers in each state earn the living wage for a single adult. The median wage in each state is about two thirds of the living wage for a single adult with two children. MEDIAN HOURLY WAGE AS A PERCENT OF LIVING WAGE 140% --- 120% — 106% 100% — 80% — 60% — 40% — 20% — 0% IN Single adult ti Single adult with two children 104 107 114% ID ($9.81) MT ($9.38) OR ($10.77) WA ($11.67) 9 ARE WE CREATING ENOUGH JOBS THAT PAY A LIVING WAGE? The Northwest economy is not creating enough living wage jobs for all those who need them, according to several indicators. These include the number of working age households compared to the number of jobs that pay a living wage, the percentage of jobs and job openings that pay less than a living wage, and the number of job seekers compared to the number of job openings that pay a living wage. A comparison of working age households to jobs that pay a living wage shows there were more working age households than living wage jobs in every Northwest state in 1996. Working age households are those with at least one adult between the ages of 18 and 64. The shortfall between the number of working age households and the number of jobs that pay a living wage for a single adult ranges from about 58,000 in Idaho to about 275,000 in Washington. For those jobs that pay a living wage for a single adult with two children, the shortfall ranges from about 200,000 in Montana to over 1 million in Washington. State by state figures, as shown in the charts below and on the following page, are: • In Idaho, there were about 330,000 working age households, but fewer than 275,000' jobs that could support a single adult and about 110,000 jobs that could support a single adult with two children. • In Montana, there were about 265,000 working age households, but fewer than 170,000 jobs that could support a single adult and fewer than 66,000 jobs that could support a single adult with two children. • In Oregon, there were more than 1 million working age households, but fewer than WORKING AGE HOUSEHOLDS COMPARED TO JOBS THAT PAY A LIVING WAGE FOR A SINGLE ADULT 331,100 273,505 265,980 169,228 { 0 500,000 1,000,000 ® Number of Working Age Households ■ Number of Jobs that Pay a Living Wage for a Single Adult 1,500,000 2,000,000 10 760,000 jobs that could support a single adult and only slightly more than 300,000 jobs that could support a single adult with two children. • In Washington, there were about 1.8 million working age households, but only about 1.5 million jobs that could support a single adult and about 610,000 jobs that could support a single adult with two children. WORKING AGE HOUSEHOLDS COMPARED TO JOBS THAT PAY A LIVING WAGE FOR A SINGLE ADULT WITH Two CHILDREN WA OR ID MT 0 500,000 1,000,000 ■ Number of Working Age Households ■ Number of Jobs that Pay a Living Wage for a Single Adult with Two Children 1,500,000 2,000,000 About 40 percent of all jobs in the Northwest pay less than a living wage for a single adult and about 75 percent pay less than a living wage for a single adult with two children. State by state figures are: • In Idaho, 42 percent of all jobs pay less than the $9.22 an hour living wage for a single adult and 75 percent pay less than the $14.42 an hour living wage for a single adult with two children. • In Montana, 45 percent of all jobs pay less than the $9.02 an hour living wage for a single adult and 73 percent pay less than the $14.80 an hour living wage for a single adult with two children. • In Oregon, 44 percent of all jobs pay less than the $10.07 an hour living wage for a single adult and 76 percent pay less than the $16.36 an hour living wage for a single adult with two children. • In Washington, 37 percent of all jobs pay less than the $10.25 an hour living wage for a single adult and 73 percent pay less than the $16.86 an hour living wage for a single adult with two children. 11 JOB OPENINGS THAT Do NOT PAY A LIVING WAGE 100% — 81 77% E lJob openings that do not pay a living wage for a single adult with two children ® Job openings that do not pay a living wage for a single adult 72% MT ID CA WA The job market that job seekers face is similarly limited. Of all job openings, 40 to 50 percent pay less than a living wage for a single adult and 70 to 80 percent pay less than a living wage for a single adult with two children, as shown in the chart above. It is important to note the distinction between jobs and job openings. Not all jobs come open during the course of a year. Job openings are of particular interest because they provide employment opportunities for people looking for work. State by state figures arc: • In Idaho, 45 percent of job openings pay less than the $9.22 an hour living wage for a single adult and 75 percent pay less than the $14.42 an hour living wage for a single adult with two children. • In Montana, 53 percent of job openings pay less than the $9.02 an hour living wage for a single adult and 81 percent pay less than the $14.80 an hour living wage for a single adult with two children. • In Oregon, 47 percent of job openings pay less than the $10.07 an hour living wage for a single adult and 77 percent pay less than the $16.36 an hour living wage for a single adult with two children. • In Washington, 41 percent of job openings pay less than the $10.25 an hour living wage for a single adult and 72 percent pay less than the $16.86 an hour living wage for a single adult with two children. Job openings data, coupled with median wage estimates for each occupation, provide a new and interesting way of looking at the distribution of wages. Neither average nor median wages, as previously discussed, portray the distribution of wages in the states very well. Job openings by wages are not arrayed in a classic "normal" distribution. The full wage distribution across all occupations, as shown in the chart below, has distinctive peaks and valleys. There is a cluster of occupations in each state at relatively low wage levels, and a wide range of higher wage occupations with fewer job openings. A better 12 measure of the performance of the labor market in terms of providing living wage jobs is the percent of job openings that pay a living wage. This measure is not affected by the shape of the wage distribution curve depicted in the chart; it would be an equally valid measure if the wage distribution were "normal" or had peaks and valleys. DI$N,IBUTIQN OF NORTHWEST JOB OPENINGS BY WAGE HATE 30,000 T 00 25,000 Q .CTS 20,000 CO O Ci 15,000 CD Ci Q Ln .0 N 10,000 O K3 175 ca 5,000 �iLc) �6g z 0 0 L N N -O 0 E z $5 $10 $15 Dollars per Hour $20 $25 *There are few job openings in the economy that pay more than $25 an hour. Due to lack of space they have not been included here. The percentage of jobs and job openings that pay a living wage vary from state to state for a number of reasons, including the mix of industries and related occupations in a state, and the prevailing wage levels, which also vary from state to state. The industry mix effect can be seen clearly in a comparison of Washington and Montana, two states with very different industry structures. The relatively high frequency occupations in Washington tend to be higher wage occupations than those found in Montana, and there is a clear association of these occupations with major industries that are important drivers of each state's economy. For example, due to the presence of Boeing and its subcontractors, Washington has a high frequency of certain transportation equipment industry occupations, including electrical installers and repairers with a median wage of $14.55 an hour and aeronautical engineers with a median wage of $30.61 an hour. Montana, on the other hand, has a larger mining industry as well as major railroad switching yards and maintenance facilities. Occupations in these two industries also show up with relatively high frequency, including dragline operators at a median wage of $10.88 an hour and railroad conductors and yardmasters at a median wage of $12.45 an hour. 13 CHANGING DISTRIBUTION OF JOBS IN IDAHO'S ECONOMY 50 — 45 — 40 — t 35 — 0 30— a) 25 — n' 20 — 15- 10- 5- 0 o Existing Jobs a Projected Job Openi Less than $8 $8-$11.99 $12415.99 $16-$19.99 $20 or more Dollars per Hour CHANGING DISTRIBUTION OF JOBS IN MONTANA'S ECONOMY 50 — 45 — 40 — c 35 a) 30— a) 25 — a. 20 — 15- 10- 5- 0 • Existing Jobs • Projected Job Openi 1 1 1 :: 1 1 Less than $8 $8-$11.99 $12-$15.99 $16-$19.99 $20 or more Dollars per Hour 14 CHANGING DISTRIBUTION OF JOBS IN OREGON'S ECONOMY 50 — 45 — 40 — c 35 a 30o — i5 25— a. 20 — 15— 10— 5— 0 1 1 i a Existing Jobs ■ Projected Job Open Less than $8 $8-$11.99 $12-$15.99 $16-$19.99 Dollars per Hour CHANGING DISTRIBUTION OF JOBS IN WASHINGTON'S ECONOMY 50- 45 40 — 35 — c 30 aa)i 25 — i5 20— a- 15- 10- 5- 0 Less than $8 $8-$11 99 $20 or more 1 • Existing Jobs • Projected Job Openi 1 1 $12-$15.99 $16-$19.99 $20 or more Dollars per Hour 1 15 Wages for any single occupation also vary across the Northwest states, for a variety of reasons, including its connection to key industries in the state and costs of living. Understanding the complexity of such wage variations may be helpful in efforts to reduce the job gap. Comparing jobs with job openings reveals that there are more lower paying jobs and job openings than higher paying ones, as shown in the charts on the previous pages. In all four states, there is a higher percentage of job openings paying less than $8 an hour than existing jobs paying less than $8 an hour. The difference is at least five percent in each state for the under $8 an hour category. There are smaller but consistent differences across all four states at the $8 — 19.99 an hour wage levels as well, with an equal or a lower percentage of job openings than existing jobs. At the $20 or more an hour wage level, there is a higher percentage of job openings than existing jobs in two states; in the other two, it is the opposite. These trends can be interpreted in at least two ways. If there are more low wage job openings than exist in the current job base, and at least in some states, more,high wage job openings than the current job base, then the labor market may be polarizing. In the future, there may be fewer living wage jobs in the middle of the income distribution, but more very low and very high wage jobs. Another interpretation is that workers enter the labor force in low wage jobs and then either move from one low wage job to another or move up to better jobs over time. Some may argue that this accounts for the disproportionate share of job' openings at the lowest level. While this is true to an extent, if one focuses the analysis exclusively on those job openings due to industry expansion, there is still growth at the lowest and highest wage levels. This pattern supports the "polarization" hypothesis with proportionately fewer jobs in the middle of the pay range where living wages can be found. Another indicator of the job gap is the number of job seekers compared to the number of job openings that pay a living wage. Overall, there are more people looking for work than there are job openings that pay a living wage, as shown in the charts and table on the following pages. Idaho has the smallest number of job seekers per job opening—an average of two job seekers for every job opening. The other states have an average of three job seekers for every job opening. However, not all job openings pay a living wage, even for a single adult. For each job opening that pays at least the living wage for a single adult, there are on average four to six job seekers, depending on the state. For each job opening that pays at least the living wage for a single adult with two children, there are 10 to 17 job seekers. The ratio of job seekers to job openings is higher for larger households because job seekers from smaller households can compete for the higher wage jobs, but fewer higher wage jobs are available. A job gap ratio of 4 to 1, for example, does not necessarily imply there are four people competing for each job opening at that wage level. It simply indicates that over the course of a year there were four times as many job seekers as there were living wage jobs at or above that wage level. Available data do not provide details on what sorts of jobs workers from households of different sizes actually pursue, so no precise conclusions can be reached about the applicant pool for jobs at different wage levels. The applicant pool also depends on the skills and education and training of job seekers, as well as other factors. Large ratios suggest greater competition among job seekers for available job openings. 16 JOB SEEKERS COMPARED TO JOB OPENINGS THAT PAY A LIVING WAGE FOR A SINGLE ADULT WA OR ID MT ® Number of Job Seekers IN Number of Job Openings that pay a living wage for a single adult 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 ' JOB SEEKERS COMPARED TO JOB OPENINGS THAT PAY A LIVING WAGE FOR A SINGLE ADULT WITH TWO CHILDREN WA OR ID MT ® Number of Job Seekers ■ Number of Job Openings that pay a living wage for a single adult with two children 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 State by state figures are: • In Idaho, for each job opening that pays at least the $9.22 an hour living wage for a single adult, there are four job seekers on average. For each job opening that pays at least the $14.42 an hour living wage for a single adult with two children, there are 10 job seekers on average. 17 • In Montana, for each job opening that pays at least the $9.02 an hour living wage for a single adult, there are six job seekers on average. For each job opening that pays at least the $14.80 an hour living wage for a single adult with two children, there are 17 job seekers on average. • In Oregon, for each job opening that pays at least the $10.07 an hour living wage for a single adult, there are six job seekers on average. For each job opening that pays at least the $16.36 an hour living wage for a single adult with two children, there are 14 job seekers on average. • In Washington, for each job opening that pays at least the $10.25 an hour living wage for a single adult, there arc five job seekers on average. For each job opening that pays at least the $16.86 an hour living wage for a single adult with two children, there are 12 job seekers on average. For those job openings that pay a living wage and require no more than some combination of a high school diploma, on -the -the -job training, work experience, and/or post -high school vocational training, the competition may be even stronger. In every state, slightly more than half of all job openings that pay a living wage for a single adult require that amount of education and training, as shown in the chart on the following page. For those job openings that pay a living wage for a single adult with two children, the proportion is less than a quarter. Job Gap Ratios (Job Seekers per Job Opening) Idaho Montana Oregon Washington All Job Openings 2 to 13 to 1 3 to 1 3 to 1 Job Openings Paying a Living Wage Single adult 4 to 1 6 to 1 6 to 1 5 to 1 Single adult with two children 10 to 1 17 to 1 14 to 1 12 to 1 Job gap ratios are calculated by dividing the number of people who were looking for work at some point during 1996 by the number of job openings that year. Job seekers include: • The unemployed—people who are not employed, but looking for work. Included are those who have been laid off, quit their jobs, arc entering the workforce for the first time, or are re-entering it. Not included are those who are unemployed due to temporary layoff or those looking only for part-time work. • Involuntary part-time workers—people who work less than full time, but want to work full time. • Discouraged workers and marginally attached workers—people who are not employed and not currently looking for work, but have looked for work within the past year. In the case of discouraged workers, they are not seeking work because they believe there are no jobs available or there are none for which they qualify. And in the case of marginally attached workers, it is because of personal or financial reasons. Not included are people who prefer part-time work. Job seekers equal between nine and 14 percent of employment in each of the states. The largest group of job seekers in all four states is the unemployed, accounting for about 60 percent of all job seekers, as shown in the table below. Marginally attached and discouraged workers account for seven to 11 percent of the job seekers, while involuntary part-time workers account for about 30 percent of the total. 18 LIVING WAGE JOB OPENINGS THAT REQUIRE NO MORE THA SOME VOCATIONAL TRAINING 100% — 80% — 60% -- 54% 40% — 20% — 0% ■ Job Openings that pay a living wage for a single adult ■ Job Openings that pay a living wage for a single adult with two children 61% 59% 22% 23% 53% 24% 16% ID MT OR WA Estimated Number of Job Seekers Idaho Montana Oregon Washington Number of Job Seekers 53,373 46,704 166,926 357,243 Job Seekers as a percent of total employment 9% 11% 10% 13% Job Seeker categories Unemployed 61% 58% 64% 59% Involuntary Part -Time 31% 31% 29% 30% Marginally Attached/ Discouraged 8% 11% 7% 11% It is important to note that the unemployment rate reflects only the unemployed and, therefore, misses about 40 percent of all job seekers. This suggests that there are many more job seekers for each living wage job opening than conventionally assuined. The job seeker figures used arc likely an underestimate of the actual number of job seekers. Ideally, the count of job seekers would capture everyone, working or not, who needs a living wage job. The figures understate the number of job seekers in that it does not count those who are working full time at less than a living wage job but want a living wage job, because data on this group do not exist. It overstates the number in that all the unemployed are counted, even though some may not be looking for a living wage job. Also, people who left the labor market and then re-entered the same occupation are counted among the job seekers, whereas those who moved directly from one job to another in the same occupation are not. However, assuming even a fraction of the people working at less than a living wage job for a single adult want a living wage job, the count is, on balance, an underestimate. 19 Job openings include: • Job openings due to growth—the result of new jobs being created by new or existing firms. • Job openings due to net replacement—the result of people retiring, entering school or the military, moving across state boundaries, changing occupations, or otherwise leaving the occupation in which they currently work. The proportion of job openings due to growth and net replacement vary from state to state. Proportionately more job openings result from growth in Idaho (53 percent) than in Montana (41 percent). Conversely, proportionately more job openings result from net replacement in Montana (59 percent) than in Idaho (47 percent). Oregon and Washington fall in between, with a 48/52 percentage split between growth and net replacement in Oregon and a 45/55 split in Washington. These differences are largely attributable to differences in workforce demographics and growth rates of new and existing firms. Job Openings Idaho Montana Oregon Washington ; Job Openings 25,335 17,000 61,796 120,765 Growth as percent of total 53% 41% 48% 45° Net replacement as percent of total 47% 59% 52% 55% The analysis does not include job openings that result from people changing employers but remaining in the same occupation, since these arc largely invisible to the average job seeker. Also not included, for similar reasons, are job openings for unpaid family workers and self-employment. Job openings are broken down by occupation, wages paid, and education and training required. Wage and education and training data were collected and analyzed for over 800 occupations. In determining which job openings paid a living wage, the state median wage for an occupation was used, where available; this means that half the people in the occupation earn less and half more than that amount. Not everyone will start at the median wage, but many should progress to that wage over time. (A more detailed description of the methodology can be found in the Technical Notes & Resources Section.) CONCLUSION & NEXT STEPS 20 This first phase of the Northwest Job Gap Study develops estimates of living wages needed to support families in the Northwest and documents the extent to which there is a gap between the number of living wage jobs being created and the number of people needing living wage jobs. Despite strong growth in the regional economy and the creation of many new jobs over the last decade, the Northwest is not creating enough living wage jobs for all those who need them, as indicated by the number of working age households compared to the number of jobs that pay a living wage, the percentage of jobs and job openings that pay Icss than a living wage, and the number of job seekers compared to the number of job openings that pay a living wage. Findings from the first phase of the Northwest Job Gap Study are intended to help guide and shape the efforts of business, labor, government, and the community—in terms of both policy and practice—around economic, workforce, and community development. Next phases of the Northwest Job Gap Study will focus on identifying which occupations and industries provide living wage job opportunities to people needing them; analyzing workforce demographics such as race/ethnicity, gender, and education and training levels in the context of living wage jobs; and identifying ways to promote living wage jobs and make sure people needing these jobs are able to get and keep them. Also, education and outreach will be conducted to raise awareness and promote public dialogue about the job gap. 21 WASHINGTON WASHINGTON KEY FINDINGS Key findings for Washington arc: • The living wage for a single adult is $10.25 an hour. This is based on what is needed to meet basic needs and provides some ability to deal with emergencies and plan ahead. The living wage for a single adult with two children is $16.86 an hour. • Forty one percent of all job openings pay less than the $10.25 an hour living wage for a single adult. Seventy two percent pay less than the $16,86 an hour living wage for a single adult with two children. • For each job opening that pays at least the $10.25 an hour living wage for a single adult, there are five job seekers on average. For each job opening that pays at least the $16.86 an hour living wage for a single adult with two children, there are 12 job seekers on average. WHAT IS A LIVING WAGE? Living wages for Washington, which reflect family budgets as shown on the following page, are: • For a single adult household, $21,322 a year or $10.25 an hour. • For a single adult with one child, $27,288 a year or $13.12 an hour. • For a single adult with two children, $35,079 a year or $16.86 an hour. • For two adults, one of whom is working, with two children, $29,023 a year or $13.95 an hour. • For two adults, both of whom are working, with two children, $38,369 a year or $18.45 an hour (which means that the combined wages of both working adults needs to total this amount). These are statewide averages. In some areas, costs are higher (particularly for housing and child care) and, as a result, living wages arc higher. In other areas, including most of the state's rural areas, costs and, therefore, living wages are lower. Living wages for higher cost and lower cost areas are: Higher Cost Areas Lower Cost Areas Single adult $10.43/hour $9.50/hour Single adult with one child $13.49/hour $12.16/hour Single adult with two children $17.59/hour $15.47/hour Two adults (one working) with two children $14.16/hour $12.89/hour Two adults (both working) with two children $19.17/hour $17.11/hour Washington's higher cost areas are King, Pierce, Snohomish, Spokane, Clark, Kitsap, Yakima, Thurston, Whatcom, Benton, and Franklin counties. 35 WASHINGTON FAMILY BUDGETS (IN 1996 DOLLARS eFood Housing & Utilities Household 1 Household 2 Household 3 Household 4 Household 5 141 263 331 462 462 488 615 615 615 615 (Transportation 372 321 364 333 390 r i Health Care 64 117 132 162 162 gChild Care 0 170 602 0 602 S3 Household, Clothing & Personal 230 284 312 340 352 Savings 144 178 195 212 220 CState, local & Federal Taxes 338 327 372 296 395 Gross Monthly Income Needed 1,777 2,274 2,923 2,419 3,197* Gross Annual Income Needed 21,322 27,288 35,079 29,023 38,369* Living Wage (at 2080 hrs/yr) $10.25 $13.12 $16.86 $13.95 $18.45* Household 1 is a single adult Household 2 is a single adult with a school-age child (age 6-8 yrs) Household 3 is a single adult with a toddler (12-24 months) and a school-age child (age 6-8 yrs) Household 4 is two adults (one of whom is working) with a toddler and a school-age child Household 5 is two adults (both of whom are working) with a toddler and a school-age child *Total amount earned by two working adults Washington's minimum wage is about 50 percent of the living wage for a single adult and about 30 percent of the living wage for a single adult with two children. The state's average annual wage ($28,871 in 1996) is 135 percent of the living wage for a single adult and 82 percent of the living wage for a single adult with two children. ARE WE CREATING ENOUGH JOBS THAT PAY A LIVING WAGE? There were about 1.8 million working age households in Washington in 1996, but only about 1.5 million jobs that could support a single adult and about 610,000 jobs that could support a single adult with two children. 36 Thirty seven percent of all jobs in the economy pay Less than the $10.25 an hour living wage for a single adult and 73 percent pay less than the $16.86 an hour living wage for a single adult with two children. Of all job openings, 41 percent pay less than the $10.25 an hour living wage for a single adult, as shown in the chart below. Seventy two percent pay less than the $16.86 an hour living wage for a single adult with two children. It is important to note the distinction between jobs and job openings. Not all jobs come open during a year. Job openings are of particular interest because they provide employment opportunities to people looking for work. WASHINGTON DISTRIBUTION OF JOB OPENINGS BY WAGE RATE a • L 65 -� v) 0) as 0- c 4/3- oc .0 oLC) SEAT O c • a) E N .0Z 14000 12000 - 10000 - 8000 - 6000 - 4000 2000 - 41% of job openings do not pay a living wage,for a single adult 72% of job openings do not pay a living wage for a single adult with two children 0 $5 $10.25 Dollars per Hour $16.86 $25* *There are few job openings in the economy that pay more than $25 an hour. Due to lack of space they have not been incl here. In addition, there are more people looking for work than there are job openings that pay a living wage. As shown in the table on the following page, job gap ratios, which compare job seekers to job openings, are: • For each job opening, regardless of pay, there are three job seekers on average. • For each job opening that pays at least the $10.25 an hour living wage for a single adult, there are five job seekers on average. • For each job opening that pays at least the $16.86 an hour living wage for a single adult with two children, there are 12 job seekers on average. For those job openings that pay a living wage and require at most some combination of a high school diploma, on-the-job training, work experience, and/or post -high school vocational training, the competition may be even stronger. Fifty three percent of all job openings that pay at least the $10.25 an hour living wage for a single adult require that amount of education and training. For those job openings that pay at least the $16.86 an hour living wage for a single adult with two children, the proportion is 24 percent. 37 ASHINGTON JOB GAP RATIO Household 1 Household 3 All Job $10.25 $16.86 Openings Seekers 357,243 357,243 357,243 Job Openings 68,382 30,606 120,765 Job Seekers per Job Opening 5 to 1 12 to 1 3 to 1 Percent of all Job Openings paying less than a living wage 41% 72% Job gap ratios are calculated by dividing the number of people who were looking for work at some point during 1996 by the number of job openings that year. Job seekers total 357,243, which equals about 13 percent of total employment in the state. Job seekers include the unemployed (about 59 percent of the total), involuntary part-time workers (30 percent), and discouraged and marginally attached workers (11 percent). ' Job openings total 120,765 and include job openings due to growth (about 45 percent of the total) and job openings due to net replacement (55 percent). As shown in the chart below, 68,382 of the 120,765 job openings pay at least the $10.25 an hour living wage for a single adult. And 36,139 of these job openings pay at least the $10.25 an hour living wage for a single adult and require at most some combination of a high school diploma, on-the-job training, work experience, and/or post -high school vocational training. FINDINGS FOR WASHINGTON Job Openings Paying a Living Wage r some post high school education or ti Job Openings Paying a Living Wage requiring some post high school education or training* All Openings Paying a Living Wage* Total Job Openings Total Job Seekers 0 *Living wage refers to a single adult household 50 100 150 200 250 300 Thousands of Job Openings and Job Seekers 350 400 1vL111L. Vul 01 icea111, Home NATIONAL LOW INCOME HOUSING COALITION/LIHIS l all 1 01 0 Search Out of Reach September 1999 Introduction Many people know that millions of households in the United States cannot afford to pay for decent housing. Far fewer people know the extent of the affordability problem in their own commnities. The National Low Income I lousing Coalition produces Out of Reach in an effort to provide this information to policy makers and advocates. Out of Reach contains income and rental housing cost data for the fifty states and District of Columbia by state, metropolitan area, and county or, in the case of New England, town. For each, it calculates the income that renter households need in order to afford rental housing and estimates how many of these households cannot afford to pay the Fair Market Rent (FMR), and what they would need to earn to pay the rent and keep their housing costs at 30 percent of their income, the generally accepted standard for affordability established by Congress and the Department of Housing and Urban Development. It also shows the amount a household can afford for housing (at 30% of income) at 30%, 50%, 80% and 100% of median income. "Phis facilitates assessment of how well HOME, Community Development Block Grant, tax credit and other affordable housing efforts are serving renter households with incomes below the family median for the area. Income data include HUD's current estimates of family area median income, NLIHC's estimates of renter median income, which are based on 1990 census data, and assistance under the Temporary Assistance for Needy Families (TANF) and Supplemental Security Income (SSI) programs. t The information is organized alphabetically by state. The state tables are preceded by a state summary table, tables showing the least affordable jurisdictions, and maps showing the housing wage, that is, what people need to earn in order to limit their housing costs to 30 percent of their incomes, and the number of hours per week one needs to work at the federal minimum wage of $5.15 an hour to afford the FMR for a two-bedroom unit. The housing wage is highlighted in every state table and contrasted to the federal minimum wage of $5.15 per hour as a percent of minimum wage. The state tables also calculate the number of hours of work per week at the minimum wage a household requires to afford the rent for each jurisdiction. Unlike past years, Out of Reach now includes data for nonmetropolitan counties, which considerably expands the scope of the report. As a standard for rent, Out of Reach employs the Fair Market Rent (FMR) used by HUD for the Section 8 Housing Assistance Payments Program. FMRs are gross rent estimates; they include shelter rent and the cost of utilities, except telephone. The level at which FMRs are set is expressed as a percentile point within the rent distribution of housing units in an area. The current definition is the gross rent paid by the 40th percentile of http://www.nlihc.org/oor99/introduction.htm 11/12/99 1vL11IL. Vut ul keztelt, 19')‘) 1clgl,LUl0 recent movers to standard housing (excluding new construction). To develop FMRs, HUD uses the 1990 Census; the Bureau of the Census' American Housing Survey, used to develop between -Census revisions for the largest metropolitan areas; and telephone surveys of individual FMR areas. While FMRs are frequently criticized because it is difficult to find housing at these rent levels in many communities, they are undoubtedly higher than rents paid by many low income households. The Appendix contains a more complete explanation of FMRs. Analysis Like a high stakes game of musical chairs, the number of poor renters remains the same and they must compete for a diminishing number of affordable places to live. A 1998 HUD report found that the number of very low income renter households with "worst case" housing needs has remained at an all time high of 5.3 million. Households with worst case needs are defined as renters who (1) do not receive federal housing assistance, (2) are very low income, that is, have incomes below 50 percent of the local 'area median, and (3) pay more than half of their income for housing or live in severely substandard housing. In addition, the report found that the stock of rental housing affordable to low income families is shrinking. Between 1993 and 1995 there was a loss of 900,000 rental units affordable to very low income families, a reduction of 9 percent. There was an even greater reduction — 16 percent — in the number of units affordable for extremely low income renters, that is, those with incomes below 30 percent of area median.2 This implies that very and extremely low income families are becoming homeless, are living in overcrowded conditions, are doubled up, are paying precariously high percentages of their incomes for housing, or are living in dilapidated housing. This is the backdrop against which Out of Reach must be examined. The report incorporates two measures of affordability, the estimated percent of renters who cannot afford FMR, and the housing wage. In 39 states, 40 percent or more of renters cannot afford the FMR for a two bedroom unit. In four states, Virginia (53%), New York (52%), Rhode Island (51 %) and Vermont (50%), it's 50 percent or more. In 315 of the nation's 399 metropolitan areas, 40 percent or more of renters cannot afford the FMR for a two bedroom unit. In 39 metro areas, it is 50 percent or more. In no state is the federal minimum wage as high as the statewide housing wage. In 29 states, the housing wage is more than twice the minimum wage. In three states, Hawaii ($17.01), New Jersey ($15.90), New York ($15.87), and in the District of Columbia ($15.77), the housing wage is more than three times the minimum wage. Similarly, in no metro area is the minimum wage as high as the corresponding housing wage. In half of the nation's metro areas, the housing wage is twice the minimum wage or more. In 30 of these areas, 50 percent or more of renters cannot afford the two bedroom FMR. In 25 metro areas, the housing wage is three times the minimum wage or more. In all 25, more than a third are unable to afford the two bedroom FMR. In five, more than half cannot afford the two bedroom FMR: Westchester County, NY (55%); Santa Barbara, CA (53%); Nassau -Suffolk, NY (53%); Dutchess County, NY (52%), and Monmouth -Ocean County, NJ (52%). San Francisco (49%), Boston (48%), and New York (48%) are close behind. http://www.nlihc.org/oor99/introduction.htm 11/12/99 1V1,111..tJ1t1Ul1llillL1, 1 1cig%....1v1v The nationwide median housing wage for states is $11.08 an hour, more than twice the federal minimum wage. A median of 43 percent of renters are unable to afford the two bedroom FMR. Nowhere in the United States — in no state, metropolitan area, county or New England town — is the minimum wage adequate to afford the two bedroom FMR. Moreover, there were only four of the 3,661 counties and New England towns analyzed in this report where a household with an income at 30% of area median could afford the FMR for a two-bedroom unit. In more than three quarters (76%), households with incomes of 50% of median could not afford the FMR for a two-bedroom unit. Because of the disparities in income between renter and owner households, nationally 45% of renter households have incomes below 30% of median and 68% have incomes below 50% of median. To summarize: • The number of poor, unassisted renters is at an all time high, and.the number of housing units available to them is decreasing. • The housing wage one must earn to afford a one or two bedroom unit anywhere in the country exceeds the minimum wage, often by a factor of two or more. • Low wage workers are faced with impossible demands on their ability to live in decent, affordable housing. The way to bridge the housing affordability gap is to raise incomes, lower housing costs, or both. Raising the minimum wage will raise incomes. This will also have the effect of raising wages for workers up the income scale and putting more workers at the level of the housing wage. Increasing the number of section 8 vouchers, an important income supplement, will also alleviate household income pressures and help people on fixed incomes, seasonal workers, and homeless people. Lowering housing costs includes expanding the number of units available to low income people, whether by subsidy or production of new units, and preserving assisted housing at risk of loss to the private market. Housing programs work, and stable housing allows people to live in stable communities. Methodology The methodology and 1990 Census data analysis on which the estimates are based was developed by Cushing N. Dolbeare. The analysis is based on FMRs established by HUD for fiscal year 1999. State average FMRs are weighted averages for all counties (including nonmetropolitan counties for the first time this year), based on number of renter households reported by the 1990 Census. State average area median incomes are derived in the same manner from HUD area median income estimates for FY 1998. Renter median income estimates are based on 1990 renter median income as percent of household median income. In other words, lacking better data, the report assumes that the relationship between renter and owner incomes has not changed since 1990. The study also estimates affordability based on the 30% -of -income standard used in federal housing subsidy programs. The standard is also a generally accepted measure of affordability. The estimates of the proportion of renter households unable to afford the FMR is based http://www.nlihc.org/oor99/introduction.htm 11/12/99 Hunt,. UUL ul keacll, 1 ` V9 lag 4 01 0 on the national income distribution of all renter households as reported by the 1995 American Housing Survey (AHS), the most recent information available. In other words, if the income needed to afford the FMR is 58% of renter median and 38% of all renter households had incomes below 58% of area median in 1995, then we assume that 38% of renter households in the state cannot afford the FMR. Again, this assumption is made because better data are unavailable. The calculations of wages needed and hours of work at the federal minimum wage needed to pay the FMR at 30% of income is fairly straightforward and is based on pay for a 40 - hour week for all 52 weeks of the year. However, many people earning hourly wages do not get paid vacations or sick leave, or may switch jobs and lose work time. Therefore, the wage levels cited are the lowest at which the FMR could be paid at 30% of income. Some Metropolitan Statistical Areas (MSAs) fall into more than one state. Data for these are only listed in the state in which the MSA's central city is located. Towns, rather than counties, have been used as the local jurisdictional unit for metro areas in New England states, because counties in these states often include portions of several MSAs. For these states a county is not listed if all of the towns within it also fall within an MSA and are listed separately, but is listed – rather than its towns — if it is a nonmetro county or if any portion of it is outside of an MSA. In the case of the later, only data for the nonmetro portion of the county is represented. The following New England towns have been omitted because the 1990 Census data for each was not available on the tabulation of population and housing data used for this research (STF3C on CD-ROM): • CT: Ashford, Chaplin, Harwinton, Lebanon, Old Saybrook, Roxbury, Thompson, Washington • MA: Adams, Berkley, Brewster, Chatham, Dighton, Eastham, Georgetown, Hadley, Hatfield, Holland, Mashpee, Norton, Oakham, Orleans, Sturbridge, Sunderland, Ware, West Brookfield, Williamsburg • ME: Casco, Limington, Milford, Turner, Wales • NH: Chester, Epping, Freinont, Greenville, Hampton Falls, Kensington, Mason, New Ipswich, Raymond, South Hampton, Weare • RI: Charlestown • VT: Fairfax, St. Albans, St. Albans city, Swanton. Sources and related information Fair Market Rent Data are final FY 1999 FMR levels from the HUD web site (http://www.huduser.org/datasets/fmr.html). Median income data are HUD estimates of median family income, also from the HUD web site (http://www huduser org/datasets/il/fmr99rev/rnedians2.html). Census baseline data is from the 1990 Census STF3C CD-ROM, for counties and New England towns and cities. Because no estimates of 1999 median renter incornes are available, the estimates are based on 1990 median renter incornes as percent of median family household income. Basic data for TANF calculations was taken from information prepared by the Center on http://www.nlihc.org/oor99/introduction.htm 11/12/99 1VLtlll Vul U1 iwaen, 1`JJJ 1 abl, Jul U Budget and Policy Priorities and Center for Law and Social Policy. In states where welfare benefits vary by region or for different categories of recipients, the cash assistance benefit shown in Out of Reach is the one that applies to the largest number of welfare recipients in the state. SSI information is from the Green Book. Approximately 37 percent of SSI recipients receive a state supplement. For those SSI recipients, other than those receiving a state supplement because they are living in some type of group living arrangement, the amount of state supplement ranges from $2 a month to $362 a month for an individual. At present, 25 states supplement the Federal standard for individuals living independently. Center for Law and Social Policy and Center on Budget and Policy Priorities, "Monthly Cash Assistance and Food Stamp benefits for a Single -Parent Family of Three with No Earnings, 1999," in State Policy Documentation Project. Washington, DC: Center for Law and Social Policy and Center on Budget and Policy Priorities (1999). . " House Committee on Ways and Means, Green Book, 1998: Background Material and Data on Programs Within the Jurisdiction of the Committee on Ways and Means, 105th Congress, 2d Session, Committee Print (May 19, 1998). Department of Commerce, Bureau of the Census, CD ROM STF3C. Washington, DC: Bureau of the Census (1996). Department of Housing and Urban Development and Department of Commerce, American Housing Survey for the United States in 1995. Washington, DC: GPO (1997). Also found at http://www.huduser.org/datasets/ahs.html. Department of Housing and Urban Development, Notice: "Estimated Median Family Incomes for Fiscal Year 1999" (January 27, 1999), found at http://www.huduser.org/datasets/il/fmr99rev/medians2.htinl. Department of Housing and Urban Development, "Fair Market Rents for the Section 8 Housing Assistance Payments Program — Fiscal Year 1999." 63 Fed. Reg. 52858 (October 1, 1998). Also found at http //www.huduser.org/datasets/fmr.html. Back to Out of Reach Table of Contents. Back to NLIHC Homepage. http://www.nlihc.org/oor99/introduction.htm 11/12/99 Lint.— 'OM Ul 1\edlll, 1%)) 1 ci 1. V 01 U National Low Income Housing Coalition (NLIHC) 1012 Fourteenth Street NW, Suite 610, Washington, D.C. 20005 202/662-1530; Fax 202/393-1973 Homepage: www.nlihc.org_ Current Memo to Members: www.nlihc.org/current.htm Page ©1999 National Low Income Housing Coalition Page constructed and maintained by Change Communications. http://www.nlihc.org/oor99/introduction.htm 11/12/99 1 V 1,1 l 11.. 'Jill 111 M;cll.l 1, 1 7 / Home NATIONAL LOW INCOME HOUSING COALITION/LIHIS 1 cl 1. 1 01 J Search Out of Reach September 1999 1 • In Yakima, WA, Fair Market Rent for a two-bedroom unit is $543. • An extremely low income household (earning 30% of the AMI of $37;700) can afford monthly rent of no more than $283. • A 3 -person household receiving the maximum TANF grant can afford monthly rent of no more than $164. • A minimum wage earner, earning $10,712 annually, can afford monthly rent of no more than $267.80. • Fair market rent for a one -bedroom unit is $438. • A household on SSI can afford monthly rent of no more than $154. A unit is considered affordable if it costs no more than 30% of the renter's income. • 49% of renters in Yakima, WA are unable to afford Fair Market Rent for a two-bedroom unit. • In Yakima, WA, a worker earning the Federal Minimum Wage ($5.15 per hour) has to work 81 hours per week in order to afford a two-bedroom unit at the area's Fair Market rent. • The Housing Wage in Yakima, WA is $10.44. This is the amount a worker would have to earn per hour in order to be able to work 40 hours per week and afford a two-bedroom unit at the area's Fair Market rent. This is 202% of the present Federal Minunum wage ($5.15 per hour). 1999 Family Income Location 1999 Estimated Median Family Income (HUD) Maximum Affordable Monthly Housing Cost by % of Family AMI Annual Monthly 30% 50% 80% 100% Yakima, WA $37,700 $3,142 $283 $471 $754 $943 http://www.nlihc. org/cgi-bin/data.pl?getmsa=on&msa=Yakima&state=WA 11/12/99 1vL11K.: Uul 01 Kcacii, 1999 1age L01 1999 Estimated Renter Household Income Location 1999 Estimated Renter Household Income (NLIHC) Maximum Affordable Monthly Housing Cost by % of Family AMI Annual Monthly 30% 50% 80% 100% Yakima, WA $21,864 $1,822 $164 $273 $437 $547 Affordability for TANF Single Parent Family of 3 with No Earnings Location 1999 State TANF Grant Maximum Affordable Housing Cost Per Month Monthly Annual Yakima, WA $546 $6,552 $164 Maximum SSI Benefits for Individuals Living Independently, January 1997 Location Maximum SSI Benefit Maximum Affordable Housing Cost Per Month Monthly Annual Yakima, WA $512 $6,144 $154 1999 Fair Market Rents by Number of Bedrooms Location Zero One Two Three Four Yakima, WA $356 $438 $543 $728 $760 Location Income Needed to Afford FMR Estimated Number of Renters Unable to Afford FMR Amount Percent of Family AMI Percent of Estimated Renter Median One Bedroom Two Bedroom One Bedroom Two Bedroom One Bedroom Two Bedroom One Bedroom Two Bedroom Yakima, WA $17,520 $21,720 47% 57% 80% 99% 41% 49% Location Housing Wage Work Hours/Week Necessary at Federal Minimum Wage to Afford Hourly Wage Needed to Afford (@ 4(I hrs./wk.) As % of Federal Minimum Wage ($5.15/hr.) One Bedroom FMR Two Bedroom FMR One Bedroom FMR Two Bedroom FMR One Bedroom FMR Two Bedroom FMR Yakima, WA $8.42 $10.44 164% 202% 65 81 • Maximum Affordable Housing Cost represents the generally accepted standard of spending not more than 30% of income on housing costs. • AMI = Area Median Income (HUD, 1999). • FMR = Fair Market Rent (HUD, 1999). http://www.nlihc.org/cgi-bin/data.pl?getmsa=on&msa=Yakima&state=WA 11/12/99 1vL111 JU1 01 1'Cat,11, 19/J 1agci013 • FOOTNOTES NOTE ON SSI DATA: Sum paid in King Pierce, Kitsap, Snohmish and Thurston Counties. Source: Green Book (See Sources). Receive Data You can view the raw data for this report in tab -delimited form as a web page: Or you can have the data automatically e-mailed to you: (Your email address �x1 g You can also download a formatted Microsoft Excel table with all data for Washington by using your right mouse button to click here. Back to Out of Reach Table of Contents. Back to NL1HC Homepage. National Low Income Housing Coalition (NLIHC) 1012 Fourteenth Street NW, Suite 610, Washington, D.C. 20005 202/662-1530; Fax 202/393-1973 Homepage: www.nlihc.org Current Memo to Members: www.nlihc.orgicurrent.htm Page ©1999 National Low Income Housing Coalition Page constructed and maintained by Change Communications. http://www.nlihc.org/cgi-bin/data.pl?getmsa=on&msa=yakima&state=WA 11/12/99 .01L1111.. 11'U1 U7 hUd& ll, 1 `l) 1 1 1 ULJ Home Search NATIONAL Low INCOME HOUSING COALITION/LIHIS Out of Reach September 1999 Appendix: Explanation of Fair Market Rent Excerpts from Federal Register Notice of Fiscal Year 1999 Fair Market Rents DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 24 CFR Part 888 [Docket No. FR -4362-F-021 Fair Market Rents for the Section 8 Housing Assistance Payments Program—Fiscal Year 1999 SUMMARY: Section 8(c)(1) of the United States Housing Act of 1937 requires the Secretary to publish FMRs annually to be effective on October 1 of each year. FMRs are used for the Section 8 Rental Certificate Program (including space rentals by owners of manufactured homes under that program); the Moderate Rehabilitation Single Room Occupancy program; housing assisted under the Loan Management and Property Disposition programs; payment standards for the Rental Voucher program; and any other programs whose regulations specify their use.... SUPPLEMENTARY INFORMATION: Section 8 of the United States Housing Act of 1937 (the Act) (42 U.S.C. 14371) authorizes housing assistance to aid lower income families in renting decent, safe, and sanitary housing. Assistance payments are limited by FMRs established by HUD for different areas. In general, the FMR for an area is the amount that would be needed to pay the gross rent (shelter rent plus utilities) of privately owned, decent, safe, and sanitary rental housing of a modest (non -luxury) nature with suitable amenities. Method Used to Develop FMRs FMR Standard FMRs are gross rent estimates; they include shelter rent and the cost of utilities, except telephone. HUD sets FMRs to assure that a sufficient supply of rental housing is available to program participants. To accomplish this objective, FMRs must be both high enough to permit a selection of units and neighborhoods and low enough to serve as many families as possible. The level at which FMRs are set is expressed as a percentile point within the rent distribution of standard quality rental housing units. The current definition used is the 40th percentile rent, the dollar amount below which 40 percent of standard quality rental housing units rent. The 40th percentile rent is drawn from the http://vvwvv.nlihc.org/oor99/appendix.htm 11/12/99 1vLllll.. vitt of Keael1, 1°)9•J 1age L01J distribution of rents of units which are occupied by recent movers (renter households who moved into their unit within the past 15 months). Newly built units less than two years old are excluded, and adjustments have been made to correct for the below market rents of public housing units included in the data base. Data Sources HUD used the most accurate and current data available to develop the FMR estimates. The sources of survey data used for the base -year estimates are: (1) The 1990 Census, which provides statistically reliable rent data for all FMR areas; (2) The Bureau of the Census' American Housing Surveys (AHSs), which are used to develop between -Census revisions for the largest metropolitan areas and which have accuracy comparable to the decennial Census; and (3) Random Digit Dialing (RDD) telephone surveys of individual FMR areas, which are based on a sampling procedure that uses computers to select statistically random samples of rental housing. The base -year FMRs are updated using trending FMR notice: Franklin County, KS Clinton County, 011 FMR Area Definition Changes This notice includes FMRs for one new metropolitan FMR area based on new metropolitan statistical area definitions made effective by OMB on June 30, 1998. It is the Missoula, Montana FMR area, which consists of Missoula County.... HUD Rental Housing Survey Guides HUD recommends the use of professionally -conducted RDD telephone surveys to test the accuracy of FMRs for areas where there is a sufficient number of Section 8 units to justify the survey cost of $10,000-$12,000. Areas with 500 or more program units usually meet this criterion, and areas with fewer units may meet it if local two-bedroom rents are thought to be significantly different than that proposed by HUD. In addition, HUD has developed a simplified version of the RDD survey methodology for smaller, nonmetropolitan HAs. This methodology is designed to be simple enough to be done by the HA itself, rather than by professional survey organizations, at a cost of about $5,000. HAs in nonmetropolitan areas may, in certain circumstances, do surveys of groups of counties. All grouped county surveys must be approved in advance by HUD. HAs are cautioned that the resulting FMRs will not be identical for the counties surveyed; each individual FMR area will have a separate FMR based on its relationship to the combined rent of the group of FMR areas. HAs that plan to use the RDD survey technique may obtain a copy of the appropriate survey guide by calling HUD USER on 1-800-245-2691. Larger HAs should request http://www.nlihc.org/oor99/appendbc.htm 11/12/99 1vi,1111.. um 01 lceacti, 19°P' 1 age i 01 3 National Low Income Housing Coalition (NLIHC) 1012 Fourteenth Street NW, Suite 610, Washington, U.C. 20005 202/662-1530; Fax 202/393-1973 Homepage: www.nlihc.org Current Memo to Members: www.nlihc.orgicurrent.htm Page 01999 National Low Income Housing Coalition Page constructed and maintained by Change Communications. http://www.nlihc.org/oor99/appendix.htm 11/12/99 1v1 1I1 ,. JUL 01 A\l,i.11,ll, 1 �Y7 1 abs 't u1 Dallas, TX Henderson County Flagstaff, AZ -UT Kane County, UT New Orleans, LA St. James Parish Washington, DC -MD -VA -WV Berkeley and Jefferson Counties in West Virginia; and Clarke, Culpeper, King George and Warren Counties in Virginia c. Nonmetropolitan Area FMRs—FMRs also are established for nonmetropolitan counties and for county equivalents in the United States, for nonmetropolitan parts of counties in the New England states and for FMR areas in Puerto Rico, the Virgin Islands and the Pacific Islands... . 2. Bedroom Size Adjustments Schedule B shows the FMRs for 0 -bedroom through 4 -bedroom units. The FMRs for unit sizes larger than 4 bedrooms are calculated by adding 15 percent to the 4 -bedroom FMR for each extra bedroom. For example, the FMR for a 5 -bedroom unit is 1.15 times' the 4 -bedroom FMR, and the FMR for a 6 -bedroom unit is 1.30 times the 4 bedroom FMR. FMRs for single -room -occupancy (SRO) units are 0.75 times the 0 bedroom FMR... 4. Arrangement of FMR Areas and Identification of Constituent Parts a. The FMR areas...are listed alphabetically by metropolitan FMR area and by nonmetropolitan county within each State.... b. The constituent counties (and New England towns and cities) included in each metropolitan FMR area are listed immediately following the listings of the FMR dollar amounts. All constituent parts of a metropolitan FMR area that are in more than one State can be identified by consulting the listings for each applicable State. c. Two nonmetropolitan counties are listed alphabetically on each line of the nonmetropolitan county listings. d. The New England towns and cities included in a nonmetropolitan part of a county are listed immediately following the county name. Back to Out of Reach Table of Contents. Back to NLIHC Homepage. http://www.nlihc.org/oor99/appendix.htm 11/12/99 1VLllll... JUU U1 11`.),/') 1 dbl. J U 1 J "Random Digit Dialing Surveys; A Guide to Assist Larger Housing Agencies in Preparing Fair Market Rent Comments." Smaller HAs should obtain "Rental Housing Surveys; A Guide to Assist Smaller Housing Agencies in Preparing Fair Market Rent Comments." These guides are also available on the Internet at http://www.huduser.org/ publications/ publicassist/assisted/fmrsurvey.html. HUD prefers, but does not mandate, the use of RDD telephone surveys, or the more traditional method described in the small HA survey guide. Other survey methodologies are acceptable as long as they provide statistically reliable, unbiased estimates of the 40th percentile gross rent. Survey samples should preferably be randomly drawn from a complete list of rental units for the FMR area. If this is not feasible, the selected sample must be drawn so as to be statistically representative of the entire rental housing stock of the FMR area. In particular, surveys must include units of all rent levels and be representative by structure type (including single-family, duplex and other small rental properties), age of housing unit, and geographic location. The decennial Census should be used as a starting point and means of verification for determining whether 'the sample is representative of the FMR area's rental housing stock. All survey results must be fully documented. The cost of an RDD survey may vary, depending on the characteristics of the telephone system used in the FMR area. RDDs (and simplified telephone surveys) of some non - metropolitan areas have been unusually expensive because of telephone system characteristics. An HA or contractor that cannot obtain the recommended number of sample responses after reasonable efforts should consult with HUD before abandoning its survey; in such situations HUD is prepared to relax normal sample size requirements.... 1. Geographic Coverage a. Metropolitan Areas—FMRs are housing market -wide rent estimates that are intended to provide housing opportunities throughout the geographic area in which rental housing units are in direct competition. The FMRs shown in Schedule B incorporate OMB's most current definitions of metropolitan areas, with the exceptions discussed in paragraph (b). HUD uses the 0M13 Metropolitan Statistical Area (MSA) and Primary Metropolitan Statistical Area (PMSA) definitions for FMR areas because they closely correspond to housing market area definitions. b. Exceptions to OMB Definitions—The exceptions are counties deleted from several large metropolitan areas whose revised OMB metropolitan area definitions were determined by HUD to be larger than the housing market areas. The FMRs for the following counties (shown by the metropolitan area) are calculated separately and are shown in Schedule B within their respective States under the "Metropolitan FMR Areas" listing: Metropolitan Area and Counties Deleted Chicago, IL DeKalb, Grundy and Kendall Counties Cincinnati -Hamilton, OH -KY -IN Brown County, Ohio; Gallatin, Grant and Pendleton Counties in Kentucky; and Ohio County, Indiana http://www.nlihc.org/oor99/appendix.htm 11/12/99