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State Consolidated Plan 2015-2019

This public hearing discusses the RI State Consolidated Plan, a five-year plan for funding allocation focusing on HUD's CPD programs. It includes a description of the plan development process, housing and homeless needs assessment, housing market analysis, and strategic plan.

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State Consolidated Plan 2015-2019

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  1. State Consolidated Plan 2015-2019 Public Hearing July 8th, 2015

  2. What is the Consolidated Plan • Application for ~$8.6 million annually in federal funds • Five year plan for funding allocation (2015 – 2019) • Focuses on programs administered by HUD’s Office of Community Planning and Development (CPD): • Community Development Block Grant Program* • HOME Investments Partnership Program* • Emergency Solutions Grant Program* • Housing Opportunities for Persons with AIDS

  3. What are these programs? CDBG: ~$5 million per year in funding for community development activities. Funds awarded to cities and towns. HOME: ~$3 million per year in funding for construction of affordable housing. Awards go to housing developers. ESG: ~$670k per year to fund shelter operations and rapid re-housing funds. Awards go to qualified service providers. HOPWA: ~$690k per year in housing assistance for persons with AIDS. Awards go to qualified service providers.

  4. Process • 2014-2015: Public Input, Coordinate with Stakeholders • Include input from public participation associated with the development of the state’s Economic Development and Housing Plans • Discuss needs and coordinated strategies with various housing, community development and homelessness stakeholders • July 2015: Public Hearing and Public Comments • Public hearing on findings, solicit input • Public comment period: July 9th to August 8th • August 2015: Edit and Finalize Consolidated Plan • Integrate feedback from hearing and comments, submit final draft to HUD by August 15th

  5. Contents of Consolidated Plan Executive Summary Description of Process used in Developing Plan Housing and Homeless Needs Assessment Housing Market Analysis Strategic Plan First Year Action Plan

  6. Consolidated Plan – Key Findings- Housing Needs Assessment - Housing Market Analysis

  7. Growing Housing Affordability Gap RI real median household incomes dropped 5% from 1999 to 2012*, while median monthly owner housing costs grew 32% and median gross rent grew 64%. Number of housing cost-burdened households in state grew 36.5% from 2000 to 2011, while total number of households was stagnant Cost burden disproportionately felt by lower income households

  8. Homelessness remains a challenge Over 4,000 persons experienced homelessness in 2013 Veterans experience high rates of homelessness due to co-occurring health problems, 179 Veterans were homeless in 2013. Over 1,000 children spent at least one night in a homeless shelter in 2013 23% (907) of all persons that utilized an individual or family shelter in 2013 had some kind of mental illness

  9. Needs of elderly households growing The population over the age of 65 is the fastest growing age cohort, and will make up 23% of the state's population by 2030 (currently 14%). Housing cost burden rate among elderly households rose from 34% in 2000 to 41% by 2011. One in three persons over the age of 65 has a disability, with one in five having either a self-care or independent living difficulty.

  10. Building permit activity in severe slump Last in the nation in new building permits for past four years, first few months of 2015 show little change Persons employed in the residential construction industry in RI decreased by 40% from 2007 to 2013, losing nearly 6,000 jobs Post-Recession avg. annual units permitted (900) is down 64% from Pre-Recession annual average (2,500)

  11. Foreclosure Crisis Lingers Rate of mortgages in state that are 90+ days delinquent is 2nd in the nation (3.11%) Average of ~130 completed foreclosures per month has held steady for the past two years Rate of loans with negative equity (CoreLogic) is at 15.7% as of Q1 2015, which is 5th highest in nation Distressed properties continue to hurt housing market

  12. Consolidated Plan – Strategy- Priority Needs - Goals - Resources - Outcomes

  13. Priority Needs / Goals / Resources / Outcomes • Priority needs are based on most pressing needs identified in needs assessment and market analysis as well as public input • Goals for the next five years… • Address priority needs • Are guided by public input and partner collaboration • Are restricted to the possible uses of funds per program guidelines • Resources described in Plan include all programs and funding sources used by state to achieve stated goals, not just CPD-program resources • Outcomes estimated using past program performance

  14. Priority Needs • Increased housing opportunities for low- to moderate-income households • Preserved affordability of current affordable housing stock • Rehabilitation of foreclosed homes and properties • An end to chronic homelessness • An end to Veteran homelessness • Substantially decreased homelessness overall • Permanent supportive housing • Housing that is fitted to the needs of its residents • Elimination of lead-based paint hazards in households with children under 6 years of age • Improvements to the state’s infrastructure that are crucial to housing development • Investments in public services and facilities • Removed barriers to fair and affordable housing

  15. Goals Develop and Preserve Affordable Housing Prevent and End Homelessness Improve Accessibility, Health, Safety and Energy Efficiency of State’s Housing Stock Provide Tenant-Based Rental Assistance Address the Negative Impacts of the Foreclosure Crisis Address Community Development Needs Affirmatively Further Fair Housing

  16. Expected Resources to Achieve Goals $43 million in CPD-program formula allocations (HOME, CDBG, ESG) $44 million in federal funds from competitive programs $129 million in other federal funding $25 million in state funding $18 million in private funding A total of $259 million for five-year period, expected amount available year one is $59 million

  17. Proposed Strategies and Outcomes Develop or preserve 3,000 affordable homes Serve 22,000 households through homelessness programs Address health and safety concerns in 1,800 homes Provide Tenant-Based Rental Assistance to 3,200 households Prevent 1,000 foreclosures through mediation conferences and housing counseling

  18. Other Strategies to Achieve Goals Continue to improve monitoring of sub-recipients Increase coordination among state agencies Advocate for more funds to help achieve housing, homelessness and community development goals Improve incentives to develop affordable housing

  19. Comments Draft Consolidated Plan will be available for review on July 9th, 2015 at www.rhodeislandhousing.org (Click Newsroom) Hard copies will be available at the following locations: Providence Public Library, Warwick Public Library, Cumberland Public Library, Westerly Public Library, Rhode Island Housing offices Questions or comments should be directed to: Amy Rainone Rhode Island Housing arainone@rhodeislandhousing.org 401-457-1256 Comments on the draft should include the page number(s) related to your comment. All comments must be received by August 8th, 2015

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