CITY OF THOMASVILLE NORTH CAROLINA ANALYSIS OF IMPEDIMENTS

Transcription

1 CITY OF THOMASVILLE NORTH CAROLINA ANALYSIS OF IMPEDIMENTS May, 2010 TECHNICAL ASSISTANCE PROVIDED BY BENCHMARK CMR INC.

2 City of Thomasville Analysis of Impediments INTRODUCTION... 3 Historical Overview of the Fair Housing Requirement... 3 Definition of Affirmatively Furthering Fair Housing... 3 Applicability... 4 Fair Housing Plan Responsibilities... 4 ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE... 5 Analysis of Impediments... 5 Income... 5 Informational Resources... 5 Housing Stock... 5 Family Makeup and Size... 5 Financial Institutions... 5 Disability... 6 Land Use Regulations... 6 School Placement... 6 CONCLUSIONS... 7 Amending the General Statutes & State Policy... 7 Zoning... 7 Fair Housing Education... 7 RECOMMENDATIONS... 8 DEMOGRAPHICS

3 CITY OF THOMASVILLE Fair Housing Plan INTRODUCTION Historical Overview of the Fair Housing Requirement This Fair Housing Plan is an element of the City of Thomasville Community Development Plan which is required of the City to participate in the Small Cities Community Development Block Grant (CDBG) program. The Department of Housing and Urban Development (HUD) is committed to eliminating racial and ethnic segregation and other discriminatory practices in housing. The fundamental goal of HUD's fair housing policy is to make housing choice a reality through fair housing planning. Provisions to affirmatively further fair housing (AFFH) are principal and long-standing components of HUD's housing and community development programs. These provisions are from Section 808 of the Fair Housing Act which requires the Secretary of HUD to administer the programs and activities relating to housing and urban development in a manner affirmatively to further the policies of the Act. The CDBG regulation also reflects the CDBG statutory requirement that the grantees certify that they will affirmatively further fair housing. HUD's Housing and Community Development Program regulations, handbooks, and notices interpret the statutory requirement in specific standards that State and Entitlement jurisdictions, and HUDassisted/insured housing providers must meet or actions they must take. Depending on the HUD housing or community development program, HUD interpretations include: Site and neighborhood standards, Affirmative fair housing marketing requirements, The Administrative Plan in the Section 8 Certificate and Housing Voucher Programs, Tenant selection and assignment criteria (including criteria relating to the operation of preferences), and Fair housing advertising. In its Community Development programs, HUD has strongly encouraged: (1) The adoption and enforcement of State and local fair housing laws, and (2) The reduction of separation by race, ethnicity or disability status. Through its CD programs, HUD's goal is to expand mobility and widen a person's freedom of choice. Definition of Affirmatively Furthering Fair Housing The extent of the AFFH obligation has never been defined statutorily. However, HUD defines it as

4 requiring a grantee to: (1) Conduct an analysis to identify impediments to fair housing choice within the jurisdiction; (2) Take appropriate actions to overcome the effects of any impediments identified through the analysis; (3) Maintain records reflecting the analysis and actions in this regard. HUD interprets those broad objectives to mean: Analyze and eliminate housing discrimination in the jurisdiction. Promote fair housing choice for all persons. Provide opportunities for racially and ethnically inclusive patterns of housing occupancy. Promote housing that is physically accessible to, and usable by, all persons, particularly person with disabilities. Foster compliance with the nondiscrimination provisions of the Fair Housing Act. Applicability Although the grantee's AFFH obligation arises in connection with the receipt of Federal funding, its AFFH obligation is not restricted to the design and operation of HUD-funded programs at the State or local level. The AFFH obligation extends to all housing and housing-related activities in the grantee's jurisdictional area. Fair Housing Plan Responsibilities The Consolidated Plan's certification to affirmatively further fair housing requires the City to undertake fair housing planning, which consists of the following: The Analysis of Impediments to Fair Housing Choice. Actions to overcome the effects of identified impediments. Maintain records to support the AFFH certification. 4

5 ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE Analysis of Impediments For the purposes of this analysis, review will be as set forth in the State of North Carolina Analysis of Impediments to Fair Housing Choice, : A Fair Housing Action Plan. In this manner the types of barriers that exist throughout the State can be identified and a basis can be established for a local fair housing plan on the assumption that the types of barriers or impediments identified may exist or can potentially exist locally. The review of the State's Key findings will be followed by a review of certain key local policy and administrative areas, both public and private, where impediments to housing choice have been identified in the State's Key Findings. Income According to the 2005 edition of Out of Reach, a publication of the National Low Income Housing Coalition, the fair market rent for a two-bedroom apartment in North Carolina is $631. In order to afford this level of rent and utilities without paying more than 30% of income on housing a household must earn $2,103 monthly or $25,241 annually. Assuming a 40-hour work week, 52 weeks per year, this level of income translates into a Housing Wage of $ In 2006, 13% of North Carolina residents where living in poverty. Informational Resources The perceived lack of information and the ability to access programs is an impediment to fair housing. Many possible applicants lack an understanding of the State Fair Housing Act and the reasonable accommodations mandated by both private and public entities. Housing Stock The lack of decent, affordable housing is an impediment to fair housing. Across the state, it has been found that there is a lack of available rental units, especially for large families and persons with disabilities. In areas where rental vacancy rates are very low or where few standard rental units exist, there are insufficient incentives for landlords to become involved in Section 8 certificates and vouchers. Family Makeup and Size Several interviewees commented that most housing complaints involving sex and/or familial status concerned single mothers with children. Low incomes reduce the housing options for female-headed households with children and discrimination further limits their housing choices. In addition, households with children may need larger units with 3-4 bedrooms and several of those interviewed noted an insufficient supply of affordable rental units of this size. Financial Institutions Because many banks sell their mortgages on the secondary market, their lending criteria must meet the underwriting criteria of the secondary market. These underwriting criteria often have a disparate impact on low-income and minority groups and some argue that these criteria are unnecessarily conservative. As one fair housing advocate stated, 'Underwriting criteria area based on risks that have not been quantitatively determined, the underwriting criteria] are based on perceptions not reality.' Because transaction costs are the same, many lending institutions prefer to lend for higher priced 1 Out of Reach 2005: North Carolina. National Low Income Housing Coalition, 5

6 homes thus increasing their profit margins. Many low and moderate-income households are not aware of what steps they could and should take to qualify for a mortgage. Home Mortgage Disclosure Act data suggest that blacks and Hispanics are denied single-family mortgages disproportionately more than whites. Disability Adaption/modification of an apartment by disabled persons may be perceived as an inconvenience by landlords and property managers. A funding shortfall exists for group homes serving the lower income AIDS population due to State policies of reimbursement to group homes under SSI and Medicaid. A lack of programs exists to help low-income homeowners afflicted with AIDS or other disabilities remain in their home and receive care. A lack of resources to obtain accessible housing or to remain in their current unit. Direct discrimination when renting or purchasing a home. Lower Medicaid than Medicare reimbursement rates for nursing homes. Lack of housing with appropriate accessibility features, including both access to buildings and interior accessibility to bathrooms, kitchens, cabinets, electrical switches, etc. Rental criteria which do not give sufficient weight to behavioral improvement due to treatment or recovery. Respondents commented that the physically disabled and mentally handicapped are hit hard by the intersection of income and disability. Discrimination by property managers coupled with few low-income housing alternatives hinder the less well-off disabled person when searching for a decent dwelling unit. Very low-income disabled persons sometimes receive housing subsidies in the form of Section 8 certificates (non project-based) or vouchers. Several respondents criticized the Section 8 certificate and voucher programs because they believe the fair market rent levels set by HUD are unrealistic and should be increased. Also, few dwelling units exist for Section 8 subsidy holders; it is important to note that landlords are not required to accept Section 8 renters. Lastly, available units often lack access to transportation lines and other services. Many local governments use spacing requirements and special use permits to discourage housing for persons with disabilities and homeless services facilities. Homeless shelters serve a disproportionate number of minorities and persons with disabilities. Land Use Regulations Local regulations that require large lot sizes or other amenities. These requirements serve to increase the cost of housing. Zoning ordinances and land use plans are used in many communities to oppose all affordable housing as thinly veiled discrimination against minority populations. Requirements for neighborhood approval, and in some cases a public hearing if government funds are used for a project, makes developing affordable housing, and particularly housing for persons with disabilities difficult. These requirements politicize the issue thus allowing people to apply pressure on elected officials to deny approval because of fear and prejudice. School Placement Where schools are located and how these decisions are made can affect fair housing choice. Siting of new schools can even impact where water and sewer lines are placed and this can adversely affect minority communities. School boards often do not coordinate their planning with the city or the county 6

7 CONCLUSIONS Three themes emerged as the primary impediments to fair housing choice in North Carolina: The absence of state enabling legislation that promotes the development of affordable housing; The role of zoning in facilitating affordable housing. More fair housing education is needed Amending the General Statutes & State Policy The state has solid and enforceable fair housing legislation. However, without legislation directing cities and counties to prepare plans to address fair and affordable housing, the current fair housing legislation is limited in its ability to address effectively the twin issues of fair and affordable housing in North Carolina. Two major housing studies authorized by the General Assembly and conducted approximately 20 years apart reached the same conclusions: the absence of state legislation requiring the development of comprehensive plans continues to hinder state-level efforts to achieve more widespread fair and affordable housing. 2 Zoning Exclusionary zoning is sometimes associated with discrimination in housing, while inclusionary zoning is looked upon as a weapon to force affordable housing on communities. Neither form of zoning is intended to be either discriminatory or coercive. Recognizing that local zoning ordinances have broad extraterritorial impact, some courts and policy makers sometimes determine that each community must provide its share of a region s affordable housing needs. This fair-share principle is often articulated as inclusionary zoning. It is, in effect, the converse of exclusionary zoning. Inclusionary zoning and its correlative, inclusionary housing are terms used to describe a wide variety of techniques local governments use to link the construction of low- and moderate-income affordable housing to the construction of housing for the marketplace. Under an inclusionary zoning program, affordable housing is constructed and integrated into more expensive housing developments, thereby becoming an integral part of the overall residential development of a community. Simply put, inclusionary zoning encourages or requires developers, as a condition of permit approval, to include some portion of affordable housing in new market-rate housing developments. The principal objectives of inclusionary zoning are to increase the supply of affordable housing in a community and to do so in a manner that fosters greater economic and racial integration. There are three types of inclusionary zoning programs: 1. Mandatory 2. Conditional 3. Voluntary Fair Housing Education A well thought out, and carefully planned program to enhance public awareness of fair housing the law, citizens rights and providers responsibilities would benefit the state s efforts to promote fair housing and increase affordable housing stock. 2 Brown-Graham, Anita R., Affordable Housing and North Carolina Local Governments, 2006, School of Government, University of North Carolina, Chapel Hill 7

8 RECOMMENDATIONS It is recommended that the City of Thomasville continue the following activities to affirmatively further fair housing choice: A. The City of Thomasville should continue its periodic advertisement, in a newspaper of general distribution, of a notice advising City residents of the City's commitment and who to contact should a complaint need to be investigated. B. The City should continue to disburse a Fair Housing Pamphlet which summarizes Title VIII requirements. These should be distributed annually to various agencies in the community involved in housing services. C. The City should continue to post fair housing information in its City Hall and its Community Development Office as a further effort to inform residents and housing providers of fair housing laws. D. The City should continue to be a receiving agency for fair housing complaints within its jurisdiction in conformance with the Fair Housing Resolution adopted by the Thomasville City Council. E. The City should periodically review programs and policies relating to fair housing of the major institutions in the City involved in fair housing choice issues. 8

9 DEMOGRAPHICS Race Characteristics of the City of Thomasville, 2000 White Black or African American American Indian & Alaskan Native Asian Native Hawaian & Other Pacific Islander Other race Two races Two races excluding other race & three or more races Total Population % White % Black or African American % American Indian & Alaskan Native % Asian % Native Hawaiian & Other Pacific Islander % Other race % Two races % Two races excluding other race & three or more races 315 1% 9

10 Income Characteristics of the City of Thomasville, 2008 Less than $10,000 $10,000 to $14,999 $15,000 to $24,999 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $149,999 $150,000 to $199,999 $200,000 or more Less than $10, % $10,000 to $14, % $15,000 to $24, % $25,000 to $34, % $35,000 to $49, % $50,000 to $74, % $75,000 to $99, % $100,000 to $149, % $150,000 to $199, % $200,000 or more 0.4% Median Income $37,101 10

11 Housing Characteristics for the City of Thomasville, 2000 Occupied Units Vacant Units Total Housing Units Occupied Units 9908 Vacant Units 1209 Owner Occupied Reter Occupied Owner Occupied 6241 Renter Occupied

12 No bedroom 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms 5 or more bedrooms Number of Bedrooms No bedroom 47 1 bedroom bedrooms bedrooms bedrooms or more bedrooms