to fair housing choice

Transcription

1 Analysis of Impediments to fair housing choice Submitted By: The Honorable John B. Callahan Mayor, Bethlehem City 10 East Church Street Bethlehem, PA 18018

2 BETHLEHEM CITY, PENNSYLVANIA ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING TABLE OF CONTENTS I. INTRODUCTION AND GENERAL SUMMARY OF THE ANALYSIS... 2 A. WHO CONDUCTED... 2 B. PARTICIPANTS... 7 C. METHODOLOGY USED... 7 D. HOW FUNDED... 8 E. CONCLUSIONS: IMPEDIMENTS FOUND AND ACTIONS TO ADDRESS IMPEDIMENTS... 8 Impediment I Lack of Education Regarding Fair Housing Laws...8 Impediment II Complaint Process...9 Impediment III Language Access for Limited English Proficient (LEP) Persons...9 Impediment IV Bias in Lending...10 Impediment V Lack of Decent Affordable Housing...10 Impediment VI Availability of Housing for the Disabled...11 II. BETHLEHEM CITY DEMOGRAPHIC BACKGROUND DATA A. DEMOGRAPHIC DATA...12 B. INCOME DATA...14 C. EMPLOYMENT DATA...15 D. HOUSING PROFILE...16 III. EVALUATION OF CURRENT FAIR HOUSING PROFILE A. EXISTENCE OF FAIR HOUSING COMPLAINTS...27 B. EXISTENCE OF FAIR HOUSING DISCRIMINATION SUITS...28 IV. IDENTIFICATION OF IMPEDIMENTS TO FAIR HOUSING CHOICE A. Public Sector...28 B. Private Sector...33 C. Public and Private Sector...34 D. Determination of Unlawful Segregation...36 V. SIGNATURE PAGE... 36

3 BETHLEHEM CITY, PENNSYLVANIA ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING I. INTRODUCTION AND GENERAL SUMMARY OF THE ANALYSIS A. WHO CONDUCTED This (AI) document is a revision to the original document prepared by the Department of Community & Economic Development and is designed to update Census and local data and to revisit issues previously identified as Impediments. The Housing and Community Development Act of 1974 and the National Affordable Housing Act, as amended, govern the administration of Community Development Block Grant and HOME funding and require participating jurisdictions to certify that they will affirmatively further fair housing. This means that the jurisdiction will conduct an analysis of impediments to fair housing choice; take appropriate actions to overcome the effects of impediments identified through that analysis; and maintain records reflecting the analysis and actions. The will receive an estimated $1,700, in CDBG funds and $560, in HOME funds in federal fiscal year The Department of Housing and Urban Development requires that an AI include: An analysis of demographic, income, housing and employment data An evaluation of the fair housing complaints filed in the jurisdiction A discussion of impediments: if any, in 1) the sale or rental of housing; 2) provision of brokerage services; 3) financing, 4) public policies; and 5) administrative policies for housing and community development activities that affect housing choice for minorities An assessment of current fair housing resources Conclusions and recommendations The AI utilizes publicly available data from a number of sources, including: Census and other demographic data Consolidated Plan and associated planning documents Fair housing complaint data will be maintained by the City s newly appointed Fair Housing Officer, in conjunction with Pennsylvania Department of Law and Public Safety's Division on Civil Rights and local Fair Housing Agencies (described herein) Fair housing testing complaint and education/outreach data maintained by the City s Fair Housing Officer, in conjunction with local Fair Housing Agencies Internet resources on fair housing In addition to the identification of impediments, jurisdictions are required to develop methods to address the issues that limit the ability of residents to rent or own housing, regardless of their inclusion in a protected class. September,

4 Fair housing choice is defined as the "ability of persons, regardless of race, color, religion, sex, national origin, familial status, or handicap, of similar income levels to have available to them the same housing choices." The Fair Housing Analysis encompasses the following six areas: 1. The sale or rental of dwellings (public or private); 2. The provision of housing brokerage services; 3. The provision of financing assistance for dwellings; 4. Public policies and actions affecting the approval of sites and other building requirements used in the approval process for the construction of publicly assisted housing; 5. The administrative policies concerning community development and housing activities, which affect opportunities for minority households to select housing inside or outside areas of minority concentration; and 6. Where there is a determination of unlawful segregation or other housing discrimination by a court or a finding of noncompliance by the U.S. Department of Housing and Urban Development (HUD) regarding assisted housing in a recipient's jurisdiction, an analysis of the actions which could be taken by the recipient to remedy the discriminatory condition, including actions involving the expenditure of funds made available under 24 CFR Part 570. As an entitlement community, Bethlehem City is charged with the responsibility of conducting its Community Development Block Grant (CDBG) Program, HOME Program, as well as other federal programs, in compliance with the Fair Housing Act. The responsibility is extended to non profit organizations that receive financial assistance from the Bethlehem City CDBG Program. The purpose of this for the is to evaluate the housing characteristics, to identify blatant or defacto impediments to fair housing choice, and to arrive at a strategy for expansion of fair housing opportunities throughout the City. With the acceptance of the, the community will have a baseline for progress against which implementation efforts will be judged. The legislative basis for HUD's review of fair housing practices in communities receiving federal funds is the Civil Rights Act of On the 20th anniversary of the passage of the legislation, an amendment to Title VIII of the Civil Rights Act was passed. The amendment, which is known as the Fair Housing Act of 1988, expanded the scope of coverage of the law to include, as protected classes, families with children and handicapped persons. Further, enforcement powers for HUD including a monetary penalty for discrimination were added. Title VIII of the Civil Rights Act of 1968 is otherwise known as the Fair Housing Act. It states that you cannot be discriminated against in any type of housing related transaction because of your Race, Gender, Religion, National Origin or Color. This Act was amended in 1988 to include Familial Status (i.e. the presence of children under the age of 18 in a family) and Handicap. The Pennsylvania Human Relations Commission enforces commonwealth laws that prohibit discrimination: the Pennsylvania Human Relations Act, or PHRA, which encompasses employment, housing, commercial property, education and public accommodations; and the Pennsylvania Fair Educational Opportunities Act, or PFEOA, which is specific to postsecondary educational institutions and September,

5 secondary and postsecondary vocational, secretarial, business and trade schools. In the State of Pennsylvania, the Human Relations Act also includes the protected class of Age (for those over 40). In this area, the Cities of Reading and Philadelphia also have local coverage and include other protected classes such as Marital Status, Sexual Preference and Source of Income. Per the PHRA, all single family homes are covered by the act when they are owned by private persons and a real estate broker is used, and all single family homes owned by corporations or partnerships regardless of whether a broker is used. All Multifamily dwellings are covered by the Act, including townhouse and condominium communities. There are two exceptions to this rule. The first is called the Mrs. Murphy s exemption. This exemption states that if the dwelling has four or less units and the owner lives in one of the units, it is exempt from the Fair Housing Act. The second is for qualified senior housing which is exempt only from the Familial Status provision of the act. To be a qualified senior community you must meet the following standards: either 100% of the community is 62 or older, or 80% of the households have at least one resident 55 or older. None of this housing is exempt from section 804(c) of the Act which states that you cannot make, print or publish a discriminatory statement. Any exempt housing that violates 804(c) has lost that exemption and can be held liable under the Act. Housing run by religious organizations and private clubs that limit occupancy solely to members, as long as the organization does not discriminate based on race, is also considered a valid exemption under the Act. Under the Fair Housing Act, it is against the law to: Refuse to rent or sell housing Refuse to negotiate for housing Make housing unavailable or deny that housing is available Set different terms, conditions or privileges for the sale or rental of housing Advertise in a discriminatory way Blockbust persuade owners to sell or rent by telling them that minority groups are moving into the neighborhood Deny or make different terms or conditions for a mortgage, home loan, home insurance, or other real estate related transaction Threaten, coerce or intimidate anyone exercising a fair housing right or assisting others in exercising those rights Under the law, a disability is defined as a physical or mental impairment that substantially limits one or more of a person's major life activities. This includes wheelchair users, those who are visually impaired, those limited by emotional problems, mental illness, or retardation, recovering alcoholics, recovering drug addicts, difficulties associated with aging, or those suffering from HIV/AIDS. It does not apply to the illegal use of, or addiction to illegal drugs. Accessible is defined in the Pennsylvania Human Relations Act as "being in compliance with the applicable standards set forth in" the Fair Housing Act, the Americans with Disabilities Act and the Universal Accessibility Act. Activities that might indicate discrimination in rental housing include: Misrepresenting the availability of housing September,

6 Steering or segregating housing (for example: the buildings in the complex are racially segregated; they have a policy that "children are only allowed in building C," or that "children are required to live on the first floor.") Requiring different terms or conditions for rental occupancy. The information told to you in person does not match the information told to you on the phone. The landlord takes an application from you and promises to call but never does. The sign says "vacancy," but the landlord says it was just rented. There is nothing available now, or there won't be when you need to move. The landlord imposes burdensome conditions for rental occupancy. The landlord keeps using various delaying tactics. The complex has overly restrictive occupancy standards and age limits (requiring less than 2 people in a bedroom or allowing no one under the age of 18 to live there). The landlord has rules about adults sharing a bedroom with a child or male and female children sharing a bedroom. The landlord claims the property is unsafe for children. The landlord will not allow guide or support animals. The landlord will not make a reasonable accommodation. The landlord will not allow you to make reasonable modifications to the premises. Activities that might indicate discrimination in real estate sales include: The agent refuses to show a property in a particular neighborhood or discourages you from considering that neighborhood because of the racial makeup of that neighborhood. The agent requires you to be pre qualified before discussing any properties with you, but you believe they don't require this of everyone. The agent gives you listings of properties in "select" neighborhoods that appear to be chosen because of their racial makeup (i.e. steering). The agent encourages or discourages sales or purchases in a particular neighborhood because of the changing racial makeup of that neighborhood (i.e. blockbusting). Different terms and conditions in townhouse, condominium, or manufactured housing communities regarding your children (for example, requiring an extra security deposit because you have children). Different terms and conditions in townhouse, condominium, or manufactured housing communities regarding special needs you have because of a disability. Activities that might indicate discrimination in home mortgage loans include: You believe you are qualified for a conventional mortgage but the agent insists that an FHA loan is better. The interest rate and points offered are much higher than current average. The agent will not count income from sources other than your employment. The mortgage company won't return your phone calls and it is difficult to get information about the status of your application. The mortgage company is very discouraging or gives negative comments about your ability to qualify even though you believe you are qualified. The mortgage company has a policy that eliminates your new home from a mortgage at that institution (for example: "We don't give loans under $50,000"). September,

7 Activities that might indicate discrimination when applying for homeowners insurance include: Policies by the insurance company that eliminate your house or apartment from being insured by that company. (For example: "We don't write policies in that neighborhood," "We don't write policies for older homes," "We don't write policies for properties worth less than $50,000," "Your property doesn't fit our profile," etc.) One insurance company's quote is significantly different from others. The insurer will only offer you a market rate policy and not a replacement cost policy. Activities that might indicate discrimination in reference to your property appraisal report include: The properties chosen to compare your property to are not in similar neighborhoods. The appraisal report has not taken into consideration positive economic changes in your neighborhood (for example: the presence of new construction or new investments planned for your neighborhood that might have the effect of increasing the value of your property). The appraisal report lists negative comments about your neighborhood that could be interpreted as having racial connotations. Other Types of Activities Covered Under Fair Housing Laws Advertising: Fair housing laws state that it is unlawful to "...make, print, publish, or cause to be made, printed, or published any notice, statement or advertisement, with respect to the sale or rental of a dwelling that indicates any preference, limitation, or discrimination based on one of the protected classes." Ads that say "no children," "adults only," "male preferred or female preferred" are examples of illegal ads. Harassment: It is unlawful to threaten or intimidate persons who have filed fair housing complaints or any individual who is supporting these persons in pursuit of their rights. Permissible activities under the Fair Housing Act stipulate that landlords, real estate professionals, and other housing providers may inquire about your income, perform a credit check and evaluate your credit worthiness, contact your previous and current landlords for references, and check if you have a criminal background. These standards are perfectly legal as long as they are applied to every applicant for housing. Under the Pennsylvania Human Relations Act, realtors, brokers or agents may not: Steer or otherwise direct a property seeker's attention to a particular neighborhood based on the race, color, religion, national origin, ancestry, sex, disability, age, familial status or use of a guide or support animal because of the blindness, deafness or physical disability of the user, or because the user is a handler or trainer of support or guide animals, of either the property seekers or persons already residing in that neighborhood. Volunteer information to or invite questions from property seekers concerning the race, color, religion, national origin, ancestry, sex, disability, age, familial status or use of a guide or support animal because of the blindness, deafness or physical disability of the user or because the user is a handler or trainer of support or guide animals of persons already residing in a neighborhood. Answer questions from or initiate a discussion with persons who are selling, renting or otherwise making housing or commercial property available concerning the race, color, religion, national origin, ancestry, sex, disability, age, familial status or use of a guide or support animal September,

8 because of the blindness, deafness or physical disability of the user or because the user is a handler or trainer of support or guide animals of prospective buyers, applicants or others seeking housing. Engage in certain practices which attempt to induce the sale, or discourage the purchase or lease of housing accommodations or commercial property by making direct or indirect reference to the present or future composition of the neighborhood in which the facility is located with respect to race, color, religion, sex, ancestry, national origin, disability, age, familial status or guide or support animal dependency. Engage in any course of action which could be construed as reluctant or delayed service having the effect of withholding or making unavailable housing accommodations or commercial property to persons because of their race, color, religion, national origin, ancestry, sex, disability, age, familial status or use of a guide or support animal. If your rights have been violated, please use one of the following methods to file your complaint: If you have a question about what happened to you, call the PA Human Relations Commission office serving your county. You may also file a complaint with the U.S. Department of Housing and Urban Development (HUD) by mail or phone: (800) within one year of the discriminatory incident. You may hire a private attorney and file an action in federal court within two years of the discriminatory incident. If you are able to prove that you have been a victim of discrimination you may be entitled to receive compensation for actual damages, including humiliation, pain and suffering, and other relief. In federal court you may also receive punitive damages. If you are successful, the person who discriminated against you must pay your attorney's fees. B. PARTICIPANTS The is a HUD CDBG entitlement City. The s Department of Community & Economic Development, is responsible for the preparation of the Analysis of Impediments to Fair Housing under the direction of the Bethlehem City Council. C. METHODOLOGY USED The preparation of the included a comprehensive review of the most recently available demographic data regarding population, housing, income, and employment. Additionally, the City reviewed and analyzed public polices affecting the siting of housing. The community also examined administrative policies concerning housing and community development, the financing and housing brokerage services and their administration in the community. Using the listed information, Bethlehem City was able to prepare actions to be completed that affirmatively further the provision of fair housing in the jurisdiction. This revised was undertaken, at the City s direction, by Triad Associates, Inc., a community planning and development consulting firm. September,

9 D. HOW FUNDED The funded the and the revisions to the document in 2010 with funds from its CDBG entitlement. E. CONCLUSIONS: IMPEDIMENTS FOUND AND ACTIONS TO ADDRESS IMPEDIMENTS Impediment I Lack of Education Regarding Fair Housing Laws As in many municipalities, there is an increased need for education, outreach, and referral regarding the Fair Housing Act and the Pennsylvania Human Relations Act. The Pennsylvania Human Relations Commission enforces commonwealth laws that prohibit discrimination: the Pennsylvania Human Relations Act, or PHRA, which encompasses employment, housing, commercial property, education and public accommodations; and the Pennsylvania Fair Educational Opportunities Act, or PFEOA, which is specific to postsecondary educational institutions and secondary and postsecondary vocational, secretarial, business and trade schools. Per the PHRA, all single family homes are covered by the act when they are owned by private persons and a real estate broker is used, and all single family homes owned by corporations or partnerships regardless of whether a broker is used. All Multifamily dwellings are covered by the Act, including townhouse and condominium communities. There are two exceptions to this rule. The first is called the Mrs. Murphy s exemption. This exemption states that if the dwelling has four or less units and the owner lives in one of the units, it is exempt from the Fair Housing Act. The second is for qualified senior housing which is exempt only from the Familial Status provision of the act. To be a qualified senior community you must meet the following standards: Either 100% of the community is 62 or older, or 80% of the households have at least one resident 55 or older. None of this housing is exempt from section 804(c) of the Act which states that you cannot make, print or publish a discriminatory statement. Any exempt housing that violates 804(c) has lost that exemption and can be held liable under the Act. Housing run by religious organizations and private clubs that limit occupancy solely to members, as long as the organization does not discriminate based on race, is also considered a valid exemption under the Act. Actions to Address Impediment I The City will continue to support education of the public with regard to fair housing and to assist the public with connection to agencies that help with fair housing problems. Information provided to the public needs to be presented in an accessible, readable format so that it is easy to understand. The information needs to be updated annually to ensure that it contains the most recent information. The information will be distributed. The City will assign a Fair Housing Officer within the Community Development Program. The City will contact the HUD Regional Office of Housing and Equal Employment, the local Urban League and the Pennsylvania Division of Civil Rights to arrange to work cooperatively in order to disseminate fair housing information, including information about the Pennsylvania Law Against Discrimination. The City will work to assist residents with special needs to ensure they have full access to housing and needed services. September,

10 Impediment II Complaint Process Some confusion exists concerning whom to turn to when a violation of fair housing law is alleged to occur, as well as how to access the State s fair housing complaint system. In addition, the process to file a fair housing complaint is viewed as complicated. There is a general fear of retaliation that may prevent complainants from filing a fair housing complaint. Actions to Address Impediment II The City will work to raise the visibility of Fair Housing and the Fair Housing Complaint Process, including increasing landlord and resident awareness and knowledge of Fair Housing. The City will implement a local fair housing counseling program including a referral service to appropriate State and federal enforcement agencies for enforcement of fair housing laws. The City s Fair Housing Officer will work with the regional fair housing agency and/or the Pennsylvania Human Relations Commission to plan and conduct presentations and distribute information about fair housing, through elementary schools, public libraries, affordable housing providers and community/recreation centers. This includes the Pennsylvania Human Relations Commission, as well as the local HUD approved Counseling Agencies. Impediment III Language Access for Limited English Proficient (LEP) Persons Over the past several years, the City has recognized the cultural diversity of Bethlehem residents and understands the need to address the language access needs of underserved, limited English proficient residents. For example, Hispanics are the fastest growing segment of Bethlehem s population. Residents of Hispanic origin grew by 40% during the 1990s. In 2000, Hispanics accounted for 18% of Bethlehem s population. Actions to Address Impediment III Executive Order (EO) 13166, signed on August 11, 2000, directs all federal agencies, including HUD, to work to ensure that programs receiving federal financial assistance provide meaningful access to LEP persons. Pursuant to EO 13166, the meaningful access requirement of the Title VI regulations and the four factor analysis set forth in the Department of Justice (DOJ) LEP Guidance apply to the programs and activities of federal agencies, including HUD. In addition, EO requires federal agencies to issue LEP Guidance to assist their federally assisted recipients in providing such meaningful access to their programs. This Guidance must be consistent with the DOJ Guidance. Each federal agency is required to specifically tailor the general standards established in DOJ's Guidance to its federally assisted recipients. On December 19, 2003, HUD published such proposed Guidance. As such, the City will consider the following: Development a Language Access Plan that identifies the Limited English speaking population in our community and ways in which language access will be provided. Provide appropriate language assistance. For example, translation of materials, staff training, interpreters, and coordination with other services/agencies for translation services. Affirmative Marketing Plan. When a rental housing or homeowner project containing five or more units is planned to be constructed, the City and/or its subrecipients will provide information to the community that attract eligible persons who are least likely to access September,

11 affordable housing opportunities. This may include low to moderate income individuals, minority residents, the LEP population, and residents of manufactured housing. With changing demographics in Bethlehem, there are challenges when marketing to the eligible populations that are Limited English Proficient (LEP). In areas where there is a significant LEP population, Bethlehem will strive to meet this need by: o Translating key marketing materials; o Working with the minority owned print media, radio and television stations; o Partnering with faith based and community organizations that serve newly arrived immigrants; o Promoting and offering marketing activities and educational sessions in Spanish at community outreach events, such as Homebuyer Fairs; and o Providing a stipend to bi lingual staff members who work directly with and provide assistance to the LEP population. Additional guidance on Limited English Proficiency guidance from HUD can be found at: faq.cfm. Impediment IV Bias in Lending The most common cause of denial is lack of credit history or poor credit history. More consumer education on credit and purchasing a home needs to be available. Action to Address Impediment IV Local credit and budget counseling is now available to residents of Bethlehem City through the Consumer Credit Counseling Service of Lehigh Valley, Lehigh Valley Credit Repair, Community Action Committee Of Lehigh Valley, Inc., El Shaddai Bethlehem Ministries and Eastern Mortgage Services, which are all HUD approved counseling agencies. The City will work with these and other agencies to ensure their services are marketed and accessible to the residents of the City. Impediment V Lack of Decent Affordable Housing Approximately 47.0% (13,026) of the City s households are at 80% or less of the Area Median Income, suggesting that the City has an inherent need for a significant amount of affordable housing. As the housing stock continues to age, unit rehab and replacement will continue to be in demand. Action to Address Impediment V To the extent that resources are available, the City will continue to maintain existing affordable housing through the residential rehab activities operated by the City. The City will also continue to support the creation of new affordable units through technical assistance and subsidies (compensatory benefits) to housing developers, both for profit and non profit, who are producing affordable and workforce housing within the City. Sources of funding for these activities include CDBG, HOME, the Pennsylvania Housing & Finance Agency (PHFA), the Federal Home Loan Bank (FHLB) and other private sources and subsidies. Incentivizing affordable housing production allows municipalities to provide a compensatory benefit to provide development incentives sufficient to generate a realistic opportunity and compensate for the September,

12 development of affordable housing units. Basic methods of providing affordable housing include inclusionary zoning, using Payments in Lieu (PIL), and density bonuses. To the extent feasible, the City will consider those projects receiving these municipally driven economic incentives in order to create a realistic opportunity for the production of affordable housing, including but not limited to, easing density and density related restrictions, easing non density related restrictions and /or providing direct or indirect fiscal subsidies. Additionally, the City also works with and supports the Bethlehem City Housing Authority in its efforts to expand its inventory of affordable units and will continue to do so. Impediment VI Availability of Housing for the Disabled The American Community Survey (U.S. Census) reported 7,711 disabled persons within Bethlehem City, representing 15.8% percent of the population, thus making it difficult to produce or retrofit accessible housing supply to meet the City s high demand. Persons with disabilities face other challenges that may make it more difficult to secure both affordable or market rate housing, such as lower credit scores, the need for service animals (which must be accommodated as a reasonable accommodation under the Fair Housing Act), the limited number of accessible units, and the reliance on Social Security or welfare benefits as a major income source. A record 10,552 fair housing discrimination complaints were filed Nation wide in fiscal year The report shows that a large portion of the complaints, 44 percent, were filed by persons with disabilities. Therefore, this impediment becomes even more significant for Bethlehem City and its disabled population. Action to Address Impediment V Bethlehem City will continue to utilize Federal funding via the Community Development Block Grant (CBDG) and/or HOME programs to ensure that developers and builders conform to the Uniform Federal Accessibility Standards (UFAS) that require that 5% of the units be accessible and 2% be accessible for persons with hearing or visual disabilities. The City will also continue to monitor the use of the Low Income Housing Tax Credit (LIHTC) program to monitor use of project development subsidies for the Special Needs Cycle set aside required in PHFA s Qualified Allocation Plan and the allocation of LIHTCs to sponsors who provide housing for persons with developmental disabilities for projects which have been recommended by the Office of Developmental Programs. Under Pennsylvania law, a disability is defined as a physical or mental impairment that substantially limits one or more of a person's major life activities. This includes wheelchair users, those who are visually impaired, those limited by emotional problems, mental illness, or retardation, recovering alcoholics, recovering drug addicts, difficulties associated with aging, or those suffering from HIV/AIDS. It does not apply to the illegal use of, or addiction to illegal drugs. Accessible is defined in the Pennsylvania Human Relations Act as "being in compliance with the applicable standards set forth in" the Fair Housing Act, the Americans with Disabilities Act and the Universal Accessibility Act. September,

13 The City will also work with local service providers that can assist with education and awareness of availability of housing for the disabled. These providers include but are not limited to the Association of Retarded Citizens (ARC), the Center for Independent Living (CIL) and the Northampton County Mental Health Housing Specialist. II. BETHLEHEM CITY DEMOGRAPHIC BACKGROUND DATA A. DEMOGRAPHIC DATA In this section of the, demographic and socio economic characteristics of the City are described to identify conditions and trends within the City. The demographic data will serve as a basis for determining needs and identifying impediments to fair housing choice. The statistical information in this section of the, unless noted, was derived from census reports published by the U.S. Bureau of the Census and the City s Five Year Consolidated Plan. The is located in the southwestern corner of Northampton County and the southeastern corner of Lehigh County and covers 19 square miles. It is bordered on the south and southeast by Hellertown and Lower Saucon Township, on the east and northeast by Freemansburg and Bethlehem Township, on the north and northeast by Hanover Township and Catasauqua and on the east and southeast by the City of Allentown and Fountain Hill. Its strategic location along Interstate 78 and Route 22 and its close proximity to Route 309 and Interstate 476 (the Northeast Extension of the Pennsylvania Turnpike) provide excellent access to the major markets in the northeastern United States. The City and the Lehigh Valley are diverse with well established urban industrial areas, residential suburban growth, productive agriculture, woodlands, wetlands, and marshes and traditional small villages. According to US Census information (2008 Population Estimates), the City s population is 72,241. The is experiencing a gradual population increase over its low point of the last 50 years of 70,419 in The City s greatest population figure was recorded in 1960 at 75,408. The US Census Year Estimates indicates the median age of the population to be 35 years and nearly 77.3% of the population is white. The largest minority populations are African American at 4.7%, Asian at 2.4% and others races or two or more races make up the remaining 15.6%. 21.3% of the population identifies itself as Hispanic. The median family income in Bethlehem is $60,243 and 8.2% of the families are considered in Poverty. The City includes an estimated 29,898 housing units with 27,984 occupied, an increase of 267 units or.9%, but a decrease in occupied units of 132 or.5% since the 2000 Census reported. The City has an occupancy rate of 93.6%. There are 2.32 persons per household. Renter occupied housing units account for 41.9%, while owners account for 58.1% of all dwellings. Over two thirds of the housing stock is single family dwelling units. The table below shows the racial composition of the City population. The table below shows the racial composition of the City population. The percentage of White persons is slightly above the national percentage and the percentages for Other Races, Two or more Races and Hispanic (any race) are any where from 50 to 100 percent above the national ratio. The percentages of African American and Asian September,

14 populations are significantly below the national percentage in the City. Racial Composition (Percentage) PA US White 77.30% 83.90% 74.10% African American 4.70% 10.40% 12.40% Native American 0.10% 0.10% 80.00% Asian 2.30% 2.30% 4.30% Pacific Islander 0.10% Other Race 12.20% % 6.20% Two or More Races 3.30% 12.00% 2.10% Hispanic (any race) 21.30% 4.30% 14.70% Source: US Census Bureau estimated figures Racial diversity is manifest in the following statistics: 40.6 percent of persons speak a language other than English at home, compared to 9 percent for Pennsylvania and 17.9 percent for the nation, but while 5.7 percent of the City population is foreign born, equaling the Commonwealth s percentage, this compares to 11.1 percent for the United States overall. The table below shows the age cohort of the City population. The is representative of the national figures for the age of its population, as the table below indicates. The working age cohort (20 to 64) is between that of PA and the US, while the percentage of elderly (65+) is lower but the extra elderly (75+) is higher than the national and state percentages. These statistics result in a slightly lower median age figure for the City as compared to both the PA and US figures. Age Cohort Bethlehem PA US Under % 5.90% 6.90% 5 to % 19.80% 20.70% 20 to % 59.10% 59.90% 65 to % 7.20% 6.40% 75 & over 9.20% 8.00% 6.10% Median Age (in years) 34.90% 39.50% 36.40% Source: US Census Bureau estimated figures The table below shows the educational attainment of the City population. The population of Bethlehem has a high ration of residents with an educational level above a high school degree as compared to the state or nation. This is most likely due to the presence of Lehigh University, Moravian College and Northampton Community College. Conversely, the percentage of those with less than a 9 th grade education and those without a high school diploma is also greater. If all of these categories are roughly at or above the state and national averages, it is natural that the percentage of those with a high school diploma is significantly below the other averages. If the percentage of those with high school diplomas is low because the higher educational attainment figures are high this is positive because it reflects a better educated population, but in the case of Bethlehem it is due to a set of both positive and negative factors. Bethlehem needs to reach out to those in the community without a high school diploma. It appears that the high influx of Hispanic households could be a contributing factor. The educational opportunities being offered at the new Fowler Family Southside Center of Northampton Community September,

15 College should improve these statistics. Educational Attainment (population 25 and older) Bethlehem PA US <9 th Grade 6.30% 4.10% 6.50% 9 th to 12 th Grade, no diploma 11.10% 9.50% 9.50% HS Graduate 30.60% 38.60% 30.00% Some College, no degree 17.10% 15.00% 19.60% Associate degree 7.10% 7.10% 7.40% Bachelor s degree 16.10% 15.80% 17.10% Grad. or Prof. degree 11.70% 9.70% 9.90% Source: US Census Bureau estimated figures The number of persons age 16 and over in the civilian workforce numbered 34,873 according to the census estimates. This represented 60.5 percent of the total City workforce, a figure that was more than two percentage point lower than the state (62.6%) and four points below the national ratio. B. INCOME DATA Income figures for the show that the City is somewhat average, having income levels higher that the state average and only slightly lower that the nation. In the case of households and individuals at or below the poverty level the percentage of City residents is significantly below both the state and nation. Economic Characteristics Bethlehem PA US Median household Income $47,913 $43,524 $50,007 Median Family Income $60,243 $53,754 $60,374 Per Capita Income $25,692 $23,301 $26,178 Percentage of Families below the Poverty Level 8.20% 10.10% 9.80% Percentage of Individuals below the Poverty Level 11.90% 14.90% 13.30% Source: US Census Bureau estimated figures The low and moderate income population block groups are distributed across the city, but are predominantly in the South side and the portions of the North side and West side neighborhoods designated within the City s Elm Street Plan. The table below depicts the City s low and moderateincome statistics by block group. September,

16 Census Tract Low and Moderate Income Statistics Block Groups Low/Mod Percentage Census Tract Block Groups Low/Mod Percentage 91 BG BG BG BG2 22 BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG BG1 29 BG2 23 BG2 41 BG BG BG BG1 56 BG2 37 BG BG BG BG BG BG BG BG1 48 BG BG BG BG3 62 BG BG BG5 34 BG BG BG BG BG BG BG BG BG1 63 BG BG BG BG BG BG BG BG C. EMPLOYMENT DATA In 2009, the Allentown Bethlehem Easton, PA NJ MSA had an annual unemployment rate of 8.8 percent, which was higher than the state average of 8.1 percent. The employment rate for the city of Allentown was even higher, at of 12.0 percent, for the same year. Note: While this report focuses on the Pennsylvania portion of the Allentown Bethlehem Easton, PA NJ MSA, the data in this section include Warren County, NJ. September,

17 Employment by Industry People Employed Percent Employed in this Industry Percent Employed in this Industry in Pennsylvania Accommodation and Food Services Industry Employment Administrative and Support and Waste Management Services Industries Employment Agriculture, Forestry, Fishing and Hunting Industry Employment Arts, Entertainment, and Recreation Industries Employment Educational Service Industry Employment 2,246 1, , % 4.49% 0.20% 1.55% 14.10% 5.66% 2.93% 1.34% 1.31% 8.79% Finance, Insurance, Real Estate and Rental and Leasing Industries Employment Health Care and Social Assistance Industry Employment 1,991 4, % 13.68% 6.60% 12.95% Information Industry Employment % 2.62% Manufacturing Industry Employment 5, % 16.22% Management of Companies and Enterprises Industry Employment Other Services Industry Employment 36 1, % 4.70% 0.07% 4.82% Professional, Scientific, and Technical Services Industry Employment Public Administration Employment 1, % 2.76% 5.49% 4.11% Retail Trade Industry Employment 3, % 12.08% Construction Industry Employment 1, % 6.06% Transportation and Warehousing, and Utilities Industries Employment Wholesale Trade Industry Employment 1, % 2.74% 5.36% 3.59% Similar to the State s trends, employment in the Health Care, Manufacturing and Retail Trade sectors are prominent. Unlike the State, employment is also prominent in the Education Service Industry. D. HOUSING PROFILE Housing statistics for the highlight the high degree of older housing throughout the City and the emphasis on owner occupied single family, duplex or row home residences. In Bethlehem 58.1 percent of housing units are owner occupied, compared to 67.3 percent for the nation and 71.7 percent for Pennsylvania. The table below demonstrates that the vast majority of housing in the City is single family detached or attached units 68.7 percent of all housing units are one unit structures. These statistics are characteristic of an urban community. September,

18 Units in Structure Bethlehem Owner / Renter Pennsylvania Owner / Renter United States Owner / Renter 58.1% / 41.9% 71.7% / 28.3% 67.3% / 32.7% Occupied units 16,248 11,736 3,484,072 1,374,437 75,072,666 36,536,963 Detached 61.50% 6.20% 74.20% 18.40% 81.40% 25.40% Attached 34.40% 24.80% 18.40% 7.80% 5.80% 5.70% 2 Apartments 2.40% 8.10% 1.10% 13.40% 1.40% 8.60% 3 or 4 Apartments 0.70% 17.00% 0.50% 12.70% 0.90% 11.30% 5 to 9 Apartments 0.10% 18.00% 0.30% 10.40% 0.80% 12.60% 10 or more Apartments 0.90% 25.60% 1.00% 24.30% 2.40% 31.30% Mobile homes or other types of housing 0.10% 4.60% 3.10% 7.20% 4.90% Source: US Census Bureau estimated figures Approximately, 84 percent of the City s housing was constructed before 1979, with 62.5 percent built prior to This is compared to Pennsylvania with 74.4 percent pre 1979 and 51.3 percent pre 1960 and national figures of 60.6 pre 1979 and 31.9 percent pre The has developed a strategic plan to address the key issues raised in the course of this analysis, and which met the HUD requirements for elements to be addresses by this plan. The three overarching goals, intended to benefit low and very low income persons are: 1. To provide decent housing; 2. To provide a suitable living environment; and 3. To expand economic opportunities. Several areas of specific need emerge from the preceding analyses and other resources and documentation. Each of these needs fits within the three goals noted above. These needs, translated into tangible objectives are: The provision of affordable housing to very low, low and moderate income households in order to prevent homelessness; The creation of affordable housing opportunities, by either rehabilitation of existing units or new construction, for both renters and owners, especially for the low income elderly; The reduction of problems with housing, focusing on very low, low income owners, and especially the elderly; Rental assistance to very low and low income households; The provision of quality public services to very low, low and moderate income residents; The provision of quality public facilities for the needs of very low, low and moderate income households; Infrastructure improvements throughout the City, in the very low, low to moderate income areas; Economic development initiatives in coordination with county and state programs; and The premise for establishing the priority for these goals and strategies is predicated upon the following criteria in descending order of importance: 1. Meeting the goals and objectives of HUD programs; September,

19 2. Meeting the specific needs of very low, low and moderate income persons; 3. Focus on very low, low and moderate income areas or neighborhoods; 4. Coordination and leveraging of resources; 5. Response to expressed needs; 6. Sustainability and/or long term impact of strategy; and 7. The ability to measure or demonstrate progress and success. The basis for allocating investments within the City is fully described below in the section on Priority Needs Analysis. All projects must meet the HUD criteria for selection including benefit to low and moderate income households in those census tracts or block groups that are identified as low/mod areas. The maps in Section 6 showing low/mod areas will be reviewed in making investment decisions. Investments are being allocated based on low and moderate income benefit and not purely geographically. All funding is being dedicated to low income target areas or clientele. Bethlehem has observed a number of significant obstacles to meeting underserved needs. include: These A strong housing market, significantly affected by the presence of college students and most recently the new casino, causing high rental costs; High land and construction costs; Low vacancy rates; High costs to rehab existing housing to affordable units; and Cost of permits and regulations. The following information was provided within the City s Consolidated Plan and presents a detailed breakdown of the housing assistance needs of low and moderate income households in the City of Bethlehem. Information about renter and owner needs is broken down to the needs of the very lowincome persons (<30% of Median Family Income [MFI]), low income persons (>30% to <50% MFI), moderate income persons (>50% to <80% MFI) and middle income persons (> 80% MFI). The HUD Housing Needs Table provides complete details by income level and tenure type. Low to moderate income areas (low/mod areas) are distributed throughout the City with most concentrations in the Southside and the neighborhood identified as the Elm Street area. The highest levels of low income occur in three block groups in South Bethlehem, three block groups in the eastern section of the City and one block group in the extreme northwest corner. These block groups in excess of 76% low/mod income. The areas previously mentioned in the Southside or Elm Street are over 51% low income. According to the 2000 CHAS data, the City had 27,521 total households, of which 16,042 (58.3%) were owners and 11,479 (41.7%) were renters. Very low and low income households, both renters and owners, total 13,026 households, which constitutes 47.3 percent of total households. Very low income households comprise 28.2 percent (7,762) of the total, and low income households (5,264) represent 19.1 percent. Thus, those households in the two lowest income groups represent almost half of all households in the City. Very low income renters (5,213) constitute 45.4 percent of the total number of renter households (11,479). When low income renter households (2,434) are added to this number, the percentage grows September,

20 to 66.6 percent of renters. Thus, the renter households in the lowest income ranges are two thirds of the total number of renter households. The table below shows the breakdown of the number of households by income level: All Households by Income <30% MFI 4, % 30 to 50% MFI 3, % 50 to 80% MFI 5, % >80% MFI 14, % TOTAL HH 27,521 The table below examines the owner and renter households by type. Households by Type and Tenure Renter Owner Total % of Total Units Elderly 2,557 5,710 8, % Small 3,945 7,223 11, % Large 741 1,238 1, % Other 4,236 1,871 6, % Total 11,479 16,042 27, % Over 70 percent of households are small or elderly. Small households are 40.6% of total households, while elderly households are another 30.0%. Small renter households represent 14.3 percent of all households, but small owners are the largest group among the various tenure types (26.2% of all households and 45.0% of owner households). This indicates a significant need for small units, as elderly households are typically one or two persons households. Elderly Owners is the second largest group, 20.7% of all households and 35.6% of owner households. In the income less than 30% of MFI range elderly renter and owner households comprise 37.3 percent of households in that income range. In the income >30 to <50% MFI range the elderly represent 47.2 percent of households, again the largest group in that range. The following table summarizes this overview by tenure type and notes the groups with the greatest number and greatest percentage of problems: September,

21 Total Households: 27,521 Renters 11,479 Greatest Number of HH Other 4,236 Group w/ highest % of Problems Large 54.9% Group w/ greatest # of Problems Small 1,578 Greatest Problem Cost Burden > 30% Owners 16,042 Greatest Number of HH Small 7,223 Group w/ highest % of Problems Other 33.6% Group w/ greatest # of Problems Elderly 1,256 Greatest Problem Cost Burden > 30% Households by Income The following tables analyze the composition of the four income levels in the CHAS data. Less than 30% of Median Family Income: 4,237 (15.4% of HH) Renters 3,287 Greatest Number of HH Other 1,054 Group w/ Highest % of Problems Small 75.7% Group w/ greatest # of Problems Small 778 Greatest Problem Cost Burden > 30% Owners 950 Greatest Number of HH Elderly 1,531 Group w/ Highest % of Problems Small 82.5% Group w/ greatest # of Problems Other 309 Greatest Problem Cost Burden > 30% Between 30% and 50% of Median Family Income: 3,525 (12.8% of HH) Renters 1,926 Greatest Number of HH Small 629 Group w/ Highest % of Problems Other 77.7% Group w/ greatest # of Problems Other 428 Greatest Problem Cost Burden > 30% Owners 1,599 Greatest Number of HH Elderly 1,112 Group w/ Highest % of Problems Large 100% Group w/ greatest # of Problems Elderly 436 Greatest Problem Cost Burden > 30% September,

22 Between 50% and 80% of Median Family Income: 5,264 (19.1% of HH) Renters 2,434 Greatest Number of HH Small 900 Group w/ Highest % of Problems Large 37.6% Group w/ greatest # of Problems Small 294 Greatest Problem Cost Burden > 30% Owners 2,830 Greatest Number of HH Other 2,830 Group w/ Highest % of Problems Large 65.6% Group w/ greatest # of Problems Other 871 Greatest Problem Cost Burden > 30% HOUSEHOLDS WITH MOBILITY AND SELF CARE LIMITATIONS Total HH with Housing Problems and Mobility/Self Care Limitations 4,691 HH 17.0% of total HH 42.5% of HH are VLI (<50% of MFI) An analysis of households with mobility and self care limitations reveals that 17.0 percent of the City s total households reported some type of mobility or self care limitation in the 2000 CHAS. Nearly half of these households (42.5%) have incomes <50 percent of MFI. The numbers of households at the lowest income level shows a greater percentage of renters vs. owners (1,419 renters vs. 563 owners). However, as income levels rise, the difference between the number of owners vs. renter households rises markedly and the total number of owner households with mobility problems is over 50% higher for owner households. The number of households (renter vs. owner) reporting problems keeps this same proportion. The table below shows the number of households by household type. Other households constitute the largest group, 52.7 percent of all households with mobility problems. The Extra Elderly represent 27.3 percent of total households with mobility problems with the Elderly representing the remaining 19.9 percent. Owner households constitute 76.9 percent of the Extra Elderly, 52.6 percent of the Elderly and 49.2 percent of Other Households with mobility problems. By Type of Household Renter Owner Total Extra Elderly ,283 Elderly Other 1,256 1,217 2,473 Total 2,197 2,494 4,691 Thus, while there are significant numbers of the elderly and extra elderly with housing problems, by far the greatest number of reported problems lies with the Other households with an equal number of Owners and Renters. September,

23 Note: Extra Elderly are those 75+; Elderly are those 62 to 74; all are 1 or 2 member Households The tables below examine the households with mobility problems by income level. RENTER HH < 30% >30% to <50% >50% to <80% >80% Total Extra Elderly Elderly Other ,256 Total Renter ,197 OWNER HH < 30% >30% to <50% >50% to <80% >80% Total Extra Elderly Elderly Other ,217 Total Owner ,270 2,494 GRAND TOTAL 1, ,054 1,655 4,691 Households with incomes >80% MFI are 35.3% of households with housing and mobility problems, followed by these at <30%MFI at 25.3%. Owner households represent the largest number of the households in the >80%MFI income range, with renters representing the largest number <30% MFI. The section of this Plan dealing with Non Homeless Special Needs Populations provide additional information about the needs, facilities, and services for the Developmentally Disabled, the Physically Disabled, the Elderly, and other Special Needs persons. Disproportionate Need The City s African American population is concentrated in all Census Tracts in South Bethlehem and three Tracts on the fringe areas of the Northside. The Hispanic/Latino population is concentrated throughout South and Central Bethlehem with five of the six Census Tracts in South Bethlehem having over 11.6% and the remaining Tract having over 6.6%. On the North side three of thirteen Census Tracts have a ratio above 11.6% and an additional four Tracts with over 6.6%. Disproportionate need is centered in South Bethlehem. African American households in the income <30% of MFI are 13.9 percent of the African American households in the City. This percentage is 1 ½ points lower than the overall <30% MFI percentage of In all 67 percent of African American households in this income range, report housing problems with 72.6 percent of all households reporting problems. Hispanic households in the income <30% of MFI are 33.5 percent of the Hispanic households in the City. This percentage is over double the overall <30% MFI percentage of In all 71.2 percent of Hispanic households in this income range, report housing problems with 72.6 percent of all households reporting problems. Overcrowding Overcrowding is defined as a household having more than 1.01 persons per room. September,

24 An analysis of the data on overcrowding throughout the City revealed that overall only 1.6 percent of households were living in overcrowded conditions. The data produced in the earlier analyses by types of households indicates also that overcrowding may only be a problem among the large households. Thus, overcrowding is not viewed as a concern in the. Substandard Housing The definition of substandard housing is a housing unit with one or more serious code violations. For the purposes of this analysis the City will also use the lack of complete plumbing or a complete kitchen as an indicator of substandard housing. The Census 3 Year Estimates reported that there were 130 housing units in the City that lacked complete plumbing and 208 units that lacked a complete kitchen. Assuming that these units do not overlap, there were 338 substandard units by this definition. This represents only 1.2 percent of the total housing units in the City. Substandard housing is thus not considered a concern. The preceding analysis identifies small and other renter households in the lowest income ranges as those with the greatest number of reported housing problems. At the lowest income levels paying more than 50 percent of income for housing is the major concern. However, as income levels rise the issue becomes that of paying more than 30 percent of income for housing. The households with mobility and self care limitations report housing problems among the lowest income in virtually all categories. There does not appear to be any instance of Disproportionate Need in the City. Neither overcrowding nor substandard housing is considered a concern in Bethlehem City. Median Sales Prices for Housing in Bethlehem City According to the Boxwood Means, Inc., a real estate research firm and value added reseller of residential and commercial data, median sales prices of existing single family homes within Bethlehem City increased between the first and second quarters of By the end of the third quarter, however, median sales prices had dropped substantially lower than 2008 price levels and had remained lower than prices in Northampton County. This pattern was characteristic of the single family market in both the region and the nation as a whole, and may have been attributed to the affects of the Federal homebuyer tax credit. Median Sales Prices of Existing Single Family Homes 2006 through 2009 Median Sale Price Bethlehem City Median Price $158,900 $155,000 $153,700 $146,000 Northampton County Median Price $179,000 $185,000 $185,000 $170,000 Source: Boxwood Means, Inc. The demand for housing in Eastern Pennsylvania has been consistently high for the last decade, driving September,

25 prices upward in the process. The median sale price for an existing home in Bethlehem City was $146,000 in 2009 according to the Boxwood Means, Inc. Like median sales prices, the actual number of home sales declined, as a result of the subprime mortgage lending crisis and the economic recession. Between Quarter and Quarter , the number of home sales in this area changed by 21.05%; the median sale price changed by 0.75%. Number of Home Sales 2006 through 2009 Number of Home Sales Bethlehem City Number of Sales 3, Northampton County Number of Sales 4,719 4,905 4,186 3,984 Source: Boxwood Means, Inc. Aggregate housing prices provide a measure with which to understand the behavior of housing prices and their influence on the economy. These amounts represent the total dollar volume of sales that occurred in an area. For all areas with complete coverage, Boxwood Means, Inc. sums the home sale price for each transaction made within the time period and reports the total amount per year. Aggregate Home Sales Amount 2006 through 2009 Aggregate Home Sale Amount Bethlehem City Aggregate Amount $660,515,265 $156,696,177 $160,213,705 $139,556,242 Northampton County Aggregate Amount $998,824,592 $1,017,537,952 $855,397,385 $747,627,252 Source: Boxwood Means, Inc. Residential Building Permits The U.S. Department of Housing and Urban Development reported that single family building permit authorizations in the Allentown Bethlehem Easton, PA NJ Core Base Statistical Area dropped from a high of 4,367 in 2003 to 1,648 in Multi family permit authorizations peaked in 2005 then dropped sharply in the following two years, with only 206 permits issued in 2006 and 115 issued during September,

26 Residential Building Permits Authorized, Allentown Bethlehem Easton, PA NJ Units Authorized By Building Permits by Core Base Statistical Areas (CBSA's) (Includes Permit Areas that only report once a year) Type Single Family 1,401 1,508 2,640 3,860 4,319 4,461 3,999 Multi Family Units Total 1,648 1,694 2,789 4,144 4,848 4,612 4,376 Source: SOCDS Data Base at: Rental Housing and Housing Affordability The table below shows the HUD fair market rent levels calculated for apartments of various sizes in the Bethlehem City (which is part of the Allentown Bethlehem Easton, PA NJ CBSA). Final FY 2010 FMRs By Unit Bedrooms Three Efficiency One Bedroom Two Bedroom Bedroom Four Bedroom Final FY 2010 FMR $596 $726 $859 $1,112 $1,176 Source: U.S. Department of Housing & Urban Development Based on this information, the table below provides annual and monthly wages that a single person household would have to earn in order to afford a two bedroom apartment priced at HUD FMR. Based on the 2010 median family income estimates, rental housing in these areas appears to be more affordable than in other real estate markets, with housing priced at Fair Market Rent levels affordable to families and households at or significantly below the median. As shown above, housing affordability would be a significant problem for families at the very low income level (fifty percent of area median), with incomes of $27,014 or less. Rental Housing Affordability Bethlehem City Fair Market Rent for 2 Bedroom Apartment $859 Income Needed to Afford 2 BR Apt at FMR Annual $34,360 Monthly $2,863 FY 2010 Median Family Income Estimate Area Median $54,028 HUD Income Limits Low Income/Family of Four (80% area median) $43,222 Very Low Income/Family of Four (50% area median) $27,014 Source: U.S. Department of Housing & Urban Development In today s especially restrictive mortgage market, many prospective homebuyers with incomes at or September,

27 below median would be likely to have difficulty qualifying for financing, especially for households with poor credit histories. However, assuming the availability of mortgage financing and assuming that buyers obtain mortgages for which debt service does not exceed thirty percent of income, the mortgage amounts and associated home purchase prices that would be available to buyers within the income ranges associated with 100 percent, 80 percent, and 50 percent of median family income as characterized above. According to the U.S. Census, 4,538 renters in this area were cost burdened (paying more than 30% of their income towards rent) in 2000 and 2,144 were severely cost burdened (paying more than 50% of their income towards rent). Of those renters that were cost burdened, 25.34% were over the age of 65. Additionally, 76.88% of cost burdened renters earned less than $20,000 in Cost Burdened Burdens by Age % of all cost burdened # renters City (Bethlehem) Less than 55 2, % 55 or older 1, % 65 or older 1, % 75 or older % County (Northampton) Less than 55 5, % 55 or older 3, % 65 or older 2, % 75 or older 1, % State (Pennsylvania) Less than , % 55 or older 169, % 65 or older 127, % 75 or older 78, % Cost Burdened Burdens by Annual Income % of all cost burdened # renters City (Bethlehem) Less than $20,000 3, % Less than $50,000 4, % Less than $75,000 4, % County (Northampton) Less than $20,000 6, % Less than $50,000 9, % Less than $75,000 9, % State (Pennsylvania) Less than $20, , % Less than $50, , % Less than $75, , % Disability Status A handicap is defined as a physical or mental impairment that substantially limits one or more life activities. Discrimination based on physical, mental, or emotional handicap, provided reasonable accommodation can be made is prohibited. Reasonable accommodation may include changes to address the needs of the disabled persons and may include adaptive structural changes as well as administrative changes, provided these changes can reasonably be made. It is difficult to accurately determine the size of the disabled population in a given area largely due to difficulty in defining what constitutes a disability. Census estimates traditionally define the handicapped population from a rather narrow perspective. The American Community Survey (U.S. Census) reported 7,711 disabled persons within Bethlehem City, representing 15.8% percent of the population. September,

28 DISABILITY STATUS OF THE CIVILIAN NONINSTITUTIONALIZED POPULATION Population 5 years and over 48,717 +/ 1, % (X) With a disability 7,711 +/ % +/ 1.4 Population 5 to 15 years 7,279 +/ % (X) With a disability 698 +/ % +/ 3.1 Population 16 to 64 years 35,033 +/ 1, % (X) With a disability 4,355 +/ % +/ 1.7 Population 65 years and over 6,405 +/ % (X) With a disability 2,658 +/ % +/ 4.0 Source: U.S. Census Bureau ACS III. Evaluation of Current Fair Housing Profile This section of the provides a review of the existence of fair housing complaints or compliance reviews where a charge of a finding of discrimination has been made. Additionally, this section of the will review the existence of any fair housing discrimination suits filed by the Department of Justice or private plaintiffs in addition to the identification of other fair housing concerns or problems. A. EXISTENCE OF FAIR HOUSING COMPLAINTS HUD s Office of Fair Housing and Equal Opportunity (FHEO) receive complaints by households regarding alleged violations of the Fair Housing Act. Five (5) complaints were filed in Bethlehem City. The table below identifies the basis for the complaint. Fair Housing Complaints in Northampton County, PA from 1/1/2004 to 9/7/2010 A computer printout listing the Fair Housing Act complaints filed from January 1, 2004 through September 7, 2010 in Northampton County, Pennsylvania, as provided below. It includes the total number of complaints filed in the state, the date the complaint was filed, the issues related to the complaint, the basis under which the complaint was filed, the closure type, and the date the complaint was closed. The printout will show if entered into the database, the city where the discrimination took place. September,

29 Hud Date Filed Issue Code Description Basis City How Closed Date Closed 382 Discrimination in terms/conditions/privileges 7/20/2004 relating to rental Disability Easton 382 Discrimination in terms/conditions/privileges relating to rental 510 Failure to make reasonable 3/4/2005 accommodation Disability Bethlehem 382 Discrimination in terms/conditions/privileges relating to rental 510 Failure to make reasonable 12/21/2005 accommodation Disability Bethlehem Complaint withdrawn by complainant after resolution 11/3/2004 Conciliation/settlement successful 8/23/2005 Conciliation/settlement successful 6/13/ Discriminatoryrefusal to rent and negotiate for rental 320 Discriminatoryadvertising, statementsand notices 380 Discriminatory terms,conditions, privileges, orservices and facilities 430 Otherwise deny ormake 11/5/2007 housing available Sex, Disability,Family Status Bath No cause determination 2/18/ Discrimination in terms/conditions/privileges 4/8/2008 relating to rental 310 Discriminatoryrefusal to rent Disability Walnutport 4/8/ Discriminatoryadvertising, statementsand notices Disability Walnutport 8/13/ Failure to make reasonable accommodation Disability East Bangor Conciliation/settlement successful 10/16/ /24/ Failure to make reasonable accommodation Disability Bethlehem Conciliation/settlement successful 3/3/ Discriminatory terms,conditions, privileges, 1/6/2009 orservices and facilities Race, Bethlehem No cause determination 5/26/2010 6/29/ Failure to make reasonable accommodation Disability Bethlehem B. EXISTENCE OF FAIR HOUSING DISCRIMINATION SUITS There are no Fair Housing discrimination suits that have been filed and/or pending in the City of Bethlehem. IV. Identification of Impediments to Fair Housing Choice This section of the will discuss the existing conditions within the that limit the choice of fair housing among owners and renters of similar income levels. This analysis is based upon the collected data describing the seven protected classes and the demographic assessment conducted for the City. Identification of the barriers to fair housing is accomplished by analyzing the following: A. Public sector actions; and B. Private sector actions. Both of these areas will be discussed in order to determine the existence of any impediments to fair housing in Bethlehem City. A. PUBLIC SECTOR An important element of the Fair Housing Analysis involves an examination of public policy in terms of its impact on housing choice. Public sector decision makers exert a profound effect on housing opportunities. Such policies as land use and zoning determine the kind of housing that can be found in a September,

30 community. Other policies such as the location of parks, schools, transportation routes, and services also effect the composition of housing. From a regulatory standpoint, local government measures to control land use such as zoning and subdivision define the range and density of housing resources that can be introduced to a community. Housing quality standards are enforced through the local building code and inspections procedures. From a budgetary standpoint, housing choice can be affected by the allocation of staff and financial resources to housing related programs and initiatives. The decline in federal funding opportunities for low income housing has shifted much of the challenge of affordable housing production to state, City, and local government decision makers. Finally, a community's sensitivity to housing issues is often determined by people in positions of public leadership. The perception of housing needs and the intensity of a community's commitment to housing related goals and objectives are often measured by board members, directorships and the extent to which these individuals relate within an organized framework of agencies, groups, and individuals involved in housing matters. The expansion of housing choice requires a team effort, and public leadership and commitment is a prerequisite to strategic action. The purpose of this section of the is to evaluate the public policies within Bethlehem City the potential for impediments due to the policies, and to determine opportunities for furthering the expansion of housing choice for the protected classes. Land Development Regulations and Development Standards Land use regulations that affect the protected classes by acting as impediments to fair housing include: Restrictive forms of land use that exclude any particular form of housing, particularly multifamily housing, or require inordinately large lot sizes that deter affordable housing development; Restrictive definitions of family that impede unrelated individuals from sharing a dwelling unit; and Placing administrative and siting constraints on group homes. Comprehensive zoning and subdivision regulations that are considerate of the protected classes should also provide for handicapped parking as a percentage of the total minimum parking requirements along with curb cuts with the handicapped parking. A zoning ordinance primarily regulates: a) the uses of land and buildings, and b) the densities of development. Different types of land uses and different densities are allowed in various zoning districts. A zoning ordinance also regulates: the distance buildings can be placed from streets and lot lines, the heights and sizes of signs, and the amount of parking that must be provided by new development. September,

31 Zoning is primarily intended to protect existing residential neighborhoods from incompatible development. However, it also can be used to avoid traffic problems, improve the appearance of new development, preserve historic buildings, and protect important natural features. The Pennsylvania Municipalities Planning Code ( MPC ) provides municipalities with the authority to regulate development. The MPC establishes limits on the ways zoning can be used and requires that certain procedures are followed. Intense and potentially controversial uses would typically need special exception approval. This results in a public meeting that allows public comment. The Zoning Hearing Board can carefully review the application to make sure that it meets City ordinances. Also, conditions can be placed upon any approval, such as conditions to protect public safety. However, a special exception use is still an allowed use. Therefore, under the law, it is difficult to reject a special exception use if the applicant proves they meet all of the specific requirements of the zoning ordinance. Generally, in such case, the application could only be rejected if an opponent or the City was able to prove that the application violated a general requirement of the Ordinance. For example, it might be possible to prove that a certain type of industrial use would generate a major public safety hazard. There also is a separate City Subdivision and Land Development Ordinance that mainly regulates engineering matters and establishes a process to approve new projects. In addition, certain areas of the City are regulated by historic district provisions, which are in separate ordinances. Zoning primarily regulates new development, expansions of uses and changes in uses. Generally, an existing use that was legal when it was first established can continue to operate regardless of zoning regulations. An existing use that would not be permitted under current zoning regulations is known as a nonconforming use. Generally, nonconforming uses can: a) be sold to a new operator, b) be expanded within certain limits, and c) be changed to a different nonconforming use, as long as the new use is not more intense than the old use. Likewise, in most cases, existing vacant lots that were legally established may be built upon even if they do not meet the minimum size requirements of a zoning ordinance. However, any building would still need to meet setback requirements, environmental regulations and sewage requirements. Major Goals and Objectives The following major goals and objectives provide direction for the Zoning Ordinance: Provide for compatibility between different types of development, particularly to protect residential areas from very intense business uses and nuisances. Seek to strengthen a sense of community and a community of neighborhoods. Protect historic buildings and maintain a pedestrian oriented streetscape of compatible mixed uses. Meet obligations under State law to provide opportunities for various land uses and a range of housing types. September,

32 Promote appropriate types of businesses in business zoning districts to attract employers and generate additional tax revenue, while avoiding the most intense business uses next to residential areas. The following is a listing of each zoning district located within the City that allows residential development. The existing zoning provides a variety of opportunities to a variety of mixed incomes and types of housing: RR Residential District R S Residential District R G Residential District R T Residential District C B Central Commercial District CG General Commercial District C L Limited Commercial District C S Shopping Center District CMU Commercial Mixed Use District IR R Industrial Redevelopment Residential Option District Currently, residential uses are only allowed within existing office buildings. The proposed zoning ordinance would allow residential uses in additional locations. There also is a proposal to allow a density bonus in this district and certain other locations if a percentage of the housing units are provided as workforce housing. Taxes Taxes impact housing affordability. While not an impediment to fair housing choice, real estate taxes can impact the choice that households make with regard to where to live. Pennsylvania is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more. Pennsylvania's localities collected $1, per capita in property taxes in fiscal year 2006, which is the latest year the Census Bureau published state by state property tax collections. At the state level, Pennsylvania collected $4.88 per capita during FY 2006, making its combined state/local property taxes $1,147.68, which ranks 20th highest nationally. The tax increases are also usually passed on to renters through rent increases. There is a need to reform tax policy in Pennsylvania to reduce impediments to housing choice. The communities often are populated by long time residents, many of whom are older and in need of services. While Bethlehem City is largely residential, there are some major commercial districts throughout the region and may provide some (but minor) tax relief to those municipalities with proportionally high property taxes. Estimated at 10.2% of income, Pennsylvania's state/local tax burden percentage ranks 11th highest nationally, above the national average of 9.7%. Pennsylvania taxpayers pay $4,463 per capita in state and local taxes. Public Financing For 36 years the has funded a community development program with HUD CDBG and has funded community development programs through HOME funds. Funds are used for a variety of September,

33 public services, planning, removal of architectural barriers, and improvements to public facilities and infrastructure that support housing and economic development throughout the City. The community development program has served to benefit primarily low income persons in agreement with the statutory requirements. The Department of Community & Economic Development has had the responsibility of administering both the Community Development Block Grant (CDBG) Program and the HOME Investment Partnership (HOME) Program. The s Consolidated Plan and represents a strategic vision for housing and community development. Included in the Five Year Plan are the City s goals, needs, strategies and projected resources to address those needs and specific projects. The general goals around which the Plan was written include: provision of decent, affordable housing provision of a suitable living environment expansion of economic opportunities increase homeownership among minorities end chronic homelessness Funds are also utilized to fulfill and services a variety of housing and community development needs, such as: 1. Housing Needs Retain existing housing stock rehabilitation assistance for owner occupied housing. Homebuyer s assistance down payment and closing cost assistance for low and moderateincome homebuyers. 2. Community Development Needs Public Facilities/Infrastructure Improvements leverage local funding for facilities for seniors, youth, local neighborhoods, parks and recreational facilities, street, water, sewer and drainage improvements. 3. Homeless and Special Needs Increase housing facilities and services continue to work with non profit developers to leverage other public and private funding to develop transitional housing and supportive housing services. Improve coordination and communications among housing and supportive services providers encourage the increase in communication and information sharing through the Northeast Continuum of Care agency and create a Lehigh and Northampton County Entitlement committee consisting of the Community Development Offices for both counties, and the Cities of Allentown, Bethlehem and Easton. 4. Public and Assisted Housing Needs Rental subsidies through Section 8 and family self sufficiency. Modernization of existing units. Continuation of self sufficiency programs for residents. September,

34 5. Economic Development Leverage private financing to encourage retention and attraction of business and industry to create employment opportunities for low and moderate income residents; continue to provide economic development programs for façade improvements and other financial incentives in the City s designated target areas. In addition, there are two primary means by which the Department of Community & Economic Development hopes to reduce the number of households with incomes below the poverty line; 1) educate and train individuals and 2) increase the number of employment opportunities through City economic development programs and the coordination of services with the Pennsylvania Workforce Investment Board s CareerLink Lehigh Valley and through the numerous organizations working through the Small Business Development Center of Lehigh University and its Lehigh Valley Financing website. B. Private Sector Real Estate Practices There are two local membership organizations for real estate brokers operating in or around the City of Bethlehem to which Realtors within the City belong. Both the Lehigh Valley Association of Realtors (LVAR) and the Pennsylvania Association of Realtors (Association) are open for membership to any persons regardless of race, color, national origin, sex, religion, handicap or familial status. Members of the LVAR and the Association are bound by the Code of Ethics of the National Association of Realtors. The Code of Ethics obligates members to maintain professional standards including affirmatively furthering fair housing. The Association enforces its Code of Ethics through a Disciplinary Commission consisting of members of the Association. The Association has an Affirmative Fair Housing Marketing Plan. The Association makes available to their members a listing contract and agreement of sale which contains the statement from the State Attorney General about obligations and rights in the area of fair housing under State and federal laws. The members are not required to use the listing contract and agreement of sale, but under State law, any listing contract and agreement of sale must include the statement. The Association has an Equal Opportunity/Fair Housing Committee. The Committee conducts seminars for the Association educating its members on the Fair Housing Act. Seminars have involved advertising and financing and the Committee has invited speakers from HUD and industry representatives to make presentations. Private Financing Because credit history is a major reason for denial of home mortgage applications in the City of Bethlehem it is expected that there may be opportunities for the banks to focus on the problem and work with applicants to address the on going concern of problems with credit history. The following are actions that lenders need to consider to assist with reduction of the denial of home mortgage applications based on credit history: September,

35 The lenders should share with the applicant the specific information on the credit report on which the denial was based. The lenders should give the applicant the opportunity to investigate questionable credit information prior to denial of a home mortgage application by the bank. The lenders should allow the applicants to offer alternative credit references in lieu of the standard traditional references. The lenders should take the unique credit practices of the various cultures into account when considering applications. The lenders should refer applicants for credit counseling or other readily available services in the community. According to 2008 HMDA data, 1,710 loans originated for the purposes of purchasing, refinancing and improving housing units at an aggregate amount of $239,926, Approximately, 643 (37.6%) loans originated for the purpose of purchasing a home; 830 (48.54%) loans originated for the purpose of refinancing a home; and 237 (13.86%) loans originated for home improvement. The median loan amount issued was approximately $125, In 2008, approximately 197 high cost loans originated within the City. A loan is considered high cost when there is a rate spread reported. The rate spread on a loan is the difference between the Annual Percentage Rate (APR) on the loan and the treasury security yield as of the date of the loan's origination. Rate spreads are only reported by financial institutions if the APR is three or more percentage points higher for a first lien loan, or five or more percentage points higher for a second lien loan. A rate spread of three or more suggests that a loan is of notably higher cost than a typical loan. Of the 197 loans originated, approximately 46 high costs loans (23.35%) were used for purchase (17 used for government insured purchase and 29 used for conventional purchase). Approximately, 109high cost loans (55.33%) were issued for refinancing and 42 high cost loans (21.32%) were used for home improvement. Of the total, nearly 78.68% of all high cost loans were originated to White applicants. C. Public and Private Sector Fair Housing Enforcement In addition to the Fair Housing Act, the Pennsylvania Human Relations Commission enforces commonwealth laws that prohibit discrimination: the Pennsylvania Human Relations Act, or PHRA, which encompasses employment, housing, commercial property, education and public accommodations; and the Pennsylvania Fair Educational Opportunities Act, or PFEOA, which is specific to postsecondary educational institutions and secondary and postsecondary vocational, secretarial, business and trade schools. In the State of Pennsylvania, the Human Relations Act also includes the protected class of Age (for those over 40). In this area, the Cities of Reading and Philadelphia also have local coverage and include other protected classes such as Marital Status, Sexual Preference and Source of Income. It is wise to determine if your state or locality has its own Human Relations Act that includes different protected classes. Per the PHRA, all single family homes are covered by the act when they are owned by private persons and a real estate broker is used, and all single family homes owned by corporations or partnerships regardless of whether a broker is used. As previously noted, all Multifamily dwellings are covered by the September,

36 Act, including townhouse and condominium communities. There are two exceptions to this rule. The first is called the Mrs. Murphy s exemption. This exemption states that if the dwelling has four or less units and the owner lives in one of the units, it is exempt from the Fair Housing Act. The second is for qualified senior housing which is exempt only from the Familial Status provision of the act. To be a qualified senior community you must meet the following standards: either 100% of the community is 62 or older, or 80% of the households have at least one resident 55 or older. None of this housing is exempt from section 804(c) of the Act which states that you cannot make, print or publish a discriminatory statement. Any exempt housing that violates 804(c) has lost that exemption and can be held liable under the Act. Housing run by religious organizations and private clubs that limit occupancy solely to members, as long as the organization does not discriminate based on race, is also considered a valid exemption under the Act. Informational Programs The will continue to invest in fair housing education and outreach. To ensure that fair housing is fully integrated into its housing, especially those most affected by housing discrimination, it is recommended that the City: Expand on going housing education programs for housing providers, consumers, and local government officials about fair housing laws, right, and responsibilities. These workshops should occur at varying times throughout the year and should specifically relate to persons with disabilities and families with children. Integrate fair housing educational programs into CDBG workshops so that housing education information related to protected classes, especially immigrants, families, persons with disabilities and people of color is disseminated. Raise awareness/ increase education programs on Federal Fair Housing Act and State Law Against Discrimination Ensure fair housing informational resources are made available to community partners to facilitate their ability to affirmatively further fair housing. Ensure that translated fair housing materials are available to immigrant groups. Increase fair housing information and links to fair housing laws/programs on the City s web site. Advocate with newspapers, real estate organizations, and housing providers to increase accessibility to fair housing internet resources on their web sites and to display fair housing information/resources in their offices. Increase educational efforts to homeless and transitional shelters to ensure compliance with fair housing laws. Work with Real Estate professionals to ensure that Fair Housing information is distributed to customers. Work with landlords to provide Fair Housing information to tenants as part of unit certification process. Place housing brochures and posters to public buildings, service agencies, libraries, and any other place where the public may find information on services To address this strategy the City intends to expand its relationships with the Fair Housing Council of Suburban Philadelphia ( September,

37 Visibility in Housing The City s website will provide information about the City s Consolidated Plan, One Year Action Plan and Fair Housing Analysis and Officer Appointment. This is just one tool in improving the City s ability to communicate key housing, community development and fair housing information. It is helpful that the City will establish a point person to take fair housing inquiries. The City must also raise its fair housing visibility through public outreach. The City and its local fair housing agency partners can conduct presentations and distribute information about fair housing, through elementary schools, public libraries, affordable housing providers and community/recreation centers. One suggestion is to develop a small brochure to be placed near public use computers in libraries, computer rooms in housing developments, and in churches, containing links to the City, and local fair housing agency websites. Another idea is to place advertisements/public service announcements in the real estate section of the newspaper, asking Have you faced discrimination in trying to find housing to rent or buy? along with the number to call to report potential discrimination. D. DETERMINATION OF UNLAWFUL SEGREGATION There has been no determination of unlawful segregation or other housing discrimination by a court or a finding of noncompliance by HUD under Title VI of the Civil Rights Act of 1964 or Section 504 of the Rehabilitation Act of 1973 in Bethlehem City. Additionally, the Secretary has not issued a charge under the Fair Housing Act regarding assisted housing in the. V. Signature Page By my signature I certify that the is in compliance with the intent and directives of the Community Development Block Grant program and HOME program regulations. The Honorable John B. Callahan Mayor, Bethlehem City, Pennsylvania Date September,

38 Analysis of Impediments to fair housing choice New Jersey Office 1301 W Forest Grove Rd, Vineland, NJ P F Pennsylvania Office 309 W Glenside Ave, Glenside PA P F Web