The Annual Action Plan Substantial Amendment - City of Pontiac

More documents

Recommendations

Info

AREAS OF GREATEST NEED This Section provides the summary needs data identifying the geographic areas of greatest need in Pontiac’s jurisdiction. Note: An NSP substantial amendment must include the needs of the entire jurisdiction(s) covered by the program; states must include the needs of communities receiving their own NSP allocation. To include the needs of an entitlement community, the State may either incorporate an entitlement jurisdiction’s consolidated plan and NSP needs by reference and hyperlink on the Internet, or state the needs for that jurisdiction in the State’s own plan. The lead entity for a joint program may likewise incorporate the consolidated plan and needs of other participating entitlement jurisdictions’ consolidated plans by reference and hyperlink or state the needs for each jurisdiction in the lead entity’s own plan. HUD has developed a foreclosure and abandonment risk score to assist grantees in targeting the areas of greatest need within their jurisdictions. As a Grantee, Pontiac Federal Programs sought the use of available data, in developing this section of the Substantial Amendment. Background Based on the 2000 Census Data, the City of Pontiac has over 63% households which qualify under 80% or below of Area Median Income. The City has consistently had a much higher rate of unemployment than surrounding communities and a lower housing value. In June 2010, the unemployment rate in the City was 29.5% and the housing values had declined by approximately 31% from the previous HUD review. In 2000, the median household income in Pontiac was $31,207 while the State of Michigan’s per capita income was $44,467 and Oakland County’s was $61,907. At $15,842, the per capita income is 48% of the per capita income of Oakland County. Using data from the Mortgage Bankers Association National Delinquency Survey as of June 2010, HUD has calculated the approximate number of foreclosure starts for all of 2009 and the first six months of 2010. In Pontiac, this number is estimated at 1,678 giving Pontiac a foreclosure rate of 21% based on HUD provided mortgage data. In reviewing the foreclosure and abandonment risk score, of which 1 is the lowest and 20 is the highest, there are ten (10) Block Groups in the City that have a risk score of 19. These are clustered on the north side of the City in Census Tracts 1410 and 1411 and one other Census Tract 1426 which is located on the west side of the City. The remaining 60 Block Groups in the City have a risk score of 20, the highest and these cover the entire community. In addition, over 50% of persons who have a mortgage have what is considered to be a high-cost, high-risk sub prime mortgage. This represents over 4,000 potential foreclosures due to the nature of these mortgages. In addition, there are over 2,400 vacant housing units currently in the City and these are also located throughout the City. 2
Target Area In focusing on the idea of stabilization, the target area for some of the NSP-funded activities would actually be different from those revitalization neighborhoods. Using the concept of stabilization, the City has identified the following target area for the expenditure of the NSP3 funding. Under the NSP 3 activity for the ACQUISITION-REHABILITATION-RESALE or RENTAL of tax foreclosed or foreclosed bank owned properties, the City has identified one target area for the purpose of focusing on the stabilization of blocks in the neighborhoods just east of Telegraph and south of Elizabeth Lake Road down to just west of Crystal Lake. The target area was also the focus of the NSP 1 program and is being targeted again because of the large number of foreclosures that continues to destabilize blocks in the Seminole Hills, Ottawa Hills, Indian Village and Washington Park neighborhoods. Currently there are eight (8) tax and bank foreclosed homes that will undergo renovations this spring. The rationale for selecting this area was to continue to concentrate in neighborhoods where homes are being renovated via NSP1 funds to, in combination, enhance the marketing of those properties and the thirteen (13) homes to be renovated with NSP3 funds by a developer yet to be selected. NSP 3 places emphasis on the marketability of the properties selected for rehabilitation. To stabilize neighborhoods there must be focused investments. A map to the target area is posted on the Pontiac Web Site for review. The Map was done via a “mapping tool” available on a HUD web site at www.huduser.org/portal/datasets/NSP.html. The southern and western boundaries of the target area do not follow a street pattern. That is why the Map was made available for review. The boundaries of the target area are as follows: Target Area Boundaries West Border: Johnson Avenue from Huron Street (M-59) in a line south to Telegraph. South Border: Includes Washington Park down to Telegraph just west of Crystal Lake. East Border: Telegraph north to Voorheis Rd., east along Voorheis Street back to Telegraph and north on Telegraph to Elizabeth Lake Rd. North Border: Elizabeth Lake Rd. from Telegraph to Murphy Street, south to M -59 (East Huron Street) east along M-59 to Johnson Avenue. NSP 3 Score & Area Demographics This area is in comprised of Census Tracts 1420 and 1426. The NSP 3 Score requires a minimum score of 17 which is the State minimum threshold score. The target area score is 19.14 and has a total of 2677 dwelling units. This means that the target area scores 3
Page 1: THE CITY OF PONTIAC NEIGHBORHOOD ST
Page 5 and 6: them into low end rental houses. Th
Page 7 and 8: had a huge impact on the City overa
Page 9 and 10: the Federal Programs Division would
Page 11 and 12: 1. Stabilize property values in the
Page 13 and 14: (2) Activity Type: NSP Activity (B)
Page 15 and 16: North Border: Elizabeth Lake Rd. fr
Page 17 and 18: Households with income equal to or
Page 19 and 20: 248-758-3780, Fax # 248-758-3775 E-
Page 21: (9) Projected Start Date: June 1, 2

The Annual Action Plan Substantial Amendment - City of Pontiac

Create successful ePaper yourself

Delete template?

Save as template?