| St. Louis Five Year Consolidated Plan Strategy | |||||
| Chapter 2 |
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Infrastructure | Public/Social Services | Public Facilities | Quality of Life | Conclusion 
The Community Development Administration is responsible for the production of housing funded through Community Development Block Grant and HOME programs, using a myriad of homeowner and renter programs. Involved in the process are a host of potential homeowners and renters, City planners, inspectors, administrators, sometimes not for profit foundations, for-profit developers as well as neighborhood or community based organizations. It requires all of their sustained efforts to produce housing that complies with public safety codes and design standards, is successful in the marketplace, meets the needs of the household who has chosen to occupy it, and ultimately strengthens the neighborhood and the City as a whole.
Of the 2,861 units produced, 2124 or 74% were rental, and 737, or 26% were for sale. In some areas funds were also spent on demolition which provided indirect support for housing renovation and new construction. The 2,861 units had an average per unit cost of $26,484 in Community Development funds, and an average per unit total cost of $87,012. Actual costs varied widely however. The CDA infusion ranged from about $5,000 per unit to $110,000, but over half of the developments received between $20,000 and $50,000 per unit. The total development costs ranged from about $10,000 per unit to $164,600 per unit. Over half of the total project costs were between $75,000 and $115,000 per unit. While the City can point with pride to these success stories, the reality of the housing picture in St. Louis remains grim. There is a significant shortage of affordable housing units to meet the needs of all citizens, especially low and moderate income residents. A large percentage of the City's housing units are substandard, although the City lacks any definitive data as to exactly how many. Public housing is being completely reformed in the City, with previous high rises demolished in favor of garden apartments and townhomes. In the process, the total number of units available for public housing residents has dropped, creating longer waiting lists and more low-income families searching for affordable housing. At the other end of the income scale, the City has few homes which compete effectively for homebuyers in the $100,000+ category. Consequently, the City is losing Baby Boomer families who are finding it easier to meet their housing needs in the suburbs. Finally, the numbers of citizens with specialized housing needs - those with disabilities, HIV/AIDS, even the homeless - are growing, placing a larger demand on the City to find adequate housing for them. How the City addresses these issues will form the basis for its housing strategy for the next five years. Each of these issues is discussed in more detail below. A SHORTAGE OF AFFORDABLE HOUSING UNITS The City's household profile adjusted for 1999 is as follows: Single person households 54,004 Family households headed by married couples 43,425 Family households headed by a single parent 34,119 Total family households 77,544 77,544 Households with unrelated individuals 6,923 Total Households 138,471 Demand for housing within the City of St. Louis is focused on one and two bedroom units, which constitute 75% of the total demand, or 104,930 units. The demand for three bedroom units is 16% of total demand. Demand for four and five plus bedroom units, based on family size, is 7% and 2%. These demand estimates do not take into account consumer preference or affordability. Hence, although there are a small but significant amount of households needing more than three bedrooms (9% of total), the bulk of demand for housing is for one and two bedroom units. Obviously, there are many one, two, and three person households living in units with three or four bedrooms, simply because they prefer them and can afford them. On the other hand, an analysis of the supply of housing units in the City shows that there are 181,335 dwelling units within the City, but that only about 138,471 are occupied. It should be emphasized that the vacant units are not the same as vacant structures; for example, a vacant four family flat would be counted as four vacant units. Nevertheless, the number of vacant housing units is substantial: almost one-fourth of the total dwelling unit inventory. These figures include hundreds of vacant units of public housing awaiting demolition or renovation. City records on the number of substandard units are inadequate. Therefore, certain assumptions must be made to ascertain the variance between the demand for particular housing types and the supply of those units. For example, if 90% of all units are assumed to be standard, then there is a shortage of 13,800 one- and four-bedroom units. If the assumption is that only 70% of all housing units are standard, then the shortage rises to 41,541 units. Equally important is the fact that the single family housing stock in the City of St. Louis is priced out of reach for most City families. Using the 1998 median housing value in the City of $60,507, a family would need to afford a monthly payment of between $521 and $544 to buy an average-priced house, assuming a 95% mortgage at 8% for 30 years, with $100 for escrow of taxes and insurance (not including mortgage insurance which would also surely be required). This equates to an annual household income of $20,871 to $21,760 per year. Yet, of the 138,471 households in the City of St. Louis, more than a third, or 33.9 percent, have incomes below $20,000 annually and could not meet these guidelines. Complicating this issue is the fact that much of the City's public housing is currently undergoing sweeping changes, with the net result being a decrease in the number of public housing units to approximately 4,500. Replacing these public housing units with other, affordable, low-income housing must be a priority for the City in the coming decade. Although it is difficult to determine the precise number of households who struggle with housing affordability, given the lack of comprehensive data, some general conclusions can be made about this issue. First is that the City needs to get a better handle on the conditions of all housing units, so it can better forecast the exact need in this area. Second, more programs to provide housing for low-income families will be needed to help the one-third of St. Louis families who fall below HUD guidelines for housing affordability. Third, the City needs to ensure that the poorest families - those living in public housing - are not abandoned as improvements are made to public housing complexes. Finally, the City needs to examine carefully whether its supply of housing can meet the size needs of families and what can be done to ensure that families have appropriate options for their housing dollars. ADDRESSING THE ISSUE OF SUBSTANDARD HOUSING It is impossible to quantify how much progress the City has made in addressing the problem of substandard housing because of a lack of comprehensive information about the structural condition of the City's housing stock. As a result, it is difficult to conclude whether or not the level of substandard buildings is greater today than it was in 1994. Slightly less than one third of St. Louis neighborhoods experience ten or fewer vacant buildings in their midst. About a fourth of the 79 neighborhoods contain between ten and fifty vacant buildings. Another third contain between 50 and 100 vacant structures. The remaining 26 percent of neighborhoods are substantially impacted by vacant buildings, with each containing from 100 to 475 such structures. In the case of demolitions, only six percent of neighborhoods in the City have not experienced the demolition of a residential structure in the last four to five years. Another third have undergone a loss of from 11 to 50 buildings. Over half of all St. Louis neighborhoods have lost from 50 to 200 buildings. Another 6 percent have lost from 200 to 446 structures. Almost 40% of St. Louis City neighborhoods have experienced 25 or less condemnations over the past four to five years. Another 13% have experienced between 26 and 100 condemnations. Nearly half of all neighborhoods have experienced more than 100 condemnations, upwards to over 600 condemned buildings. Combining the number of observed vacant buildings which require securing with the number of condemnations and demolitions yields a staggering amount of activity: over 23,000 interventions aimed at addressing the problem of deteriorating buildings and protecting the public health and welfare. Certainly building code enforcement efforts are an integral component of the City's overall housing strategy, and their importance will increase as buildings continue to age and resulting structural deficiencies continue to worsen. NEW HOUSING INITIATIVES The City of St. Louis has undertaken a number of programs and initiatives aimed at boosting home ownership while supporting current homeowners. Since 1996, these programs have resulted in 937 new homeowners in the City. Most of these programs are aimed at providing technical assistance or financial aid in the form of downpayments and closing costs to prospective buyers in designated neighborhoods. Participating groups have included the Urban League of Metropolitan St. Louis, Neighborhood Housing Services, the Catholic Commission, the Justine Petersen Housing Reinvestment Corporation, the St. Louis Reinvestment Corporation, and the HOPE III program, with funding for the last one ending in 1998. In 1998 the Community Development Administration reestablished the $2000 First Time Homebuyer program. As with several other programs, it underwrites closing costs and points, but is not income restricted or area restricted. These forgivable loans went to 127 households in 1998, with the amount to be expanded considerably by year's end in 1999. This program was highly praised by real estate salespersons who specialize in marketing City properties. Numerous other programs are available to assist low income households with the major responsibility of maintaining older City homes and preserving or improving the stability of entire neighborhoods. Since 1994, nearly 2,800 low- and moderate-income homeowners have received repairs at varying levels of intensity through seven different programs. The City also remains committed to ensuring that households at the lowest income thresholds find standard housing. Rental housing is often a port of entry for households at all income levels. Renting a loft, a flat, or an apartment in a new or rehabilitated unit is a way to become familiar with City life without making a long term commitment. Of course, a satisfactory rental experience is one of the best ways to encourage a more permanent home ownership commitment. Rental assistance programs range from the St. Louis Public Housing Authority with its inventory of public housing complexes and Section 8 program of vouchers and certificates to Missouri tax credits to help owners of older or historic homes with the cost of rehabilitation and repairs. The City of St. Louis, through developers and community based organizations, also supports development of rental housing and management of rental properties. PUBLIC HOUSING
Assuming these three initiatives are completed as planned, SLHA's total public housing stock will be reduced to about 4,500 units. The remaining housing stock is old and in fair to poor condition. Elderly projects in particular are plagued with high vacancies due to competition by newer housing for the elderly, the overall loss of elderly residents in the City in the last five years, and the presence of young disabled tenants, many of whom have mental disabilities, in the elderly public housing complexes. As a result of these high vacancies and management difficulties, the SLHA is undergoing a Section 202 Assessment of nine developments with over 2,700 units. They have retained a specialized consulting firm to carry out a detailed analysis of the prospects of increasing occupancy at these developments and the likelihood that repairs could be carried out in such a way as to be more cost effective than vouchers. The three largest troubled properties are Cochran Gardens, Blumeyer, and Clinton Peabody. The consulting team has recommended a demolition and improvement program that would cost about $150 million and could be carried out over a ten-year period. Further, the SLHA has changed its priorities for housing potential tenants which would re-orient the tenant mix, resulting in a greater percentage of households with some wage earning potential. Public housing that was once viewed as somewhat less desirable than an apartment on the open market is now several levels below what starter households would find acceptable as a place to live and raise a family. The lack of garbage disposals, dishwashers, and spacious rooms complicate housekeeping functions, especially in a single parent household. In several elderly units shower curtains constitute closet doors. It should not come as a surprise when elderly households find other alternatives. Public housing modernization programs will need to take into account the enhanced quality of life requirements of households at all income levels and budget and manage accordingly. New public housing developments need to be located in neighborhoods with access to transit and commercial activities. They need to be planned in concert with overall neighborhood development programs. As the public housing delivery system increasingly moves to household-based subsidies, management support will need to be redesigned accordingly, perhaps in coordination with community based organizations. Further, more attention should focus on the need for the region as a whole to shoulder a greater share of the burden in providing housing for low income families. OTHER LOW INCOME/MIXED INCOME HOUSING In addition to units supplied through public housing apartment complexes, low income households can also take advantage of affordable rental units sponsored through a variety of other programs. The largest is the Section 8 program vouchers and certificates. With Section 8, a household is required to pay only a third of their net income for rent, and the Federal Government pays the balance, based upon what they determine is a fair market rent for the unit selected. The trend in recent years has been to decentralize the concentration of low income populations, moving to household based certificates (and vouchers) as opposed to project based Section 8 sponsorship. The Section 8 program has several categories, including new construction, rehabilitation, substantial rehabilitation, low-moderate income, and elderly. Another major federal program is the Section 202 Elderly program, which has resulted in such developments as the Macler Shepperd Apartments in the Jeff Vander Lou area. Other federal housing programs with a presence in the City of St. Louis include the Section 221d(4), Section 223, 232, and 236. These units have been responsible for the construction or renovation of nearly 15,000 units since the mid 1970's. The Low Income Housing Tax Credit has also had a major role in supplying affordable rental housing to St. Louis households. The number of units authorized by year peaked in 1995 with 560 units authorized. Many of these units also require infusion of other public funds, such as CDBG, in order to make the projects feasible.
FAILING TO COMPETE IN THE FOR-SALE MARKET The lack of availability of affordable and desirable for-sale houses is also a problem for the City. During the first six months of 1999, the Multiple Listing Service of the Realtors Association of Greater St. Louis noted that 34% of the all single family homes sold in the region were priced between $50,000 and $99,999. Another 31.3 percent of sales were found in the $100,000 - $159,999 category. 24.1 percent were sold at prices $160,000 and over. Only 10.3 percent were sold for under $50,000. Comparing these statistics to August 1999 listings for the City of St. Louis shows that only 14% of all homes for sale in the City were priced above $100,000. Thus, there is a relative scarcity of City properties on the market for over $100,000 and especially in the $150,000 to $200,000 bracket. At present there are only 23 choices for a potential home buyer in the entire City of St. Louis if they are looking for a property in that price range. This situation, in and of itself, would not be troubling if sale prices and other indicators, such as days on market, were moving in the same direction as the rest of the region. The data, however, suggest this is not the case. A comparison of the City's average sale prices, list prices, and sale price/list price ratios to the region's shows that the average price of a home sold in the City of St. Louis in 1995 was $66,200, compared to an average for the region of $115,000. Thus the City's sale price was 58% of the region's. Moreover, over the last nine years, the City's average sale prices as a percentage of the region's have declined steadily, from 66% in 1990 to 52% for 1999. There are numerous reasons why St. Louis is not viewed by many a realistic location for choosing a single family home. Schools are cited frequently, along with perceptions of crime and neighborhood decline. Population trends have moved the "center of gravity" of the region westward. New employment opportunities are being developed even further west, into St. Charles, St. Peters, and O'Fallon, Missouri. For households with children and a full range of daily activities, the many cultural and recreational attractions in the City are simply not relevant in their daily lives and are reached easily enough when there is time to take in a particular attraction. Within the City, however, are large percentages of residents who are committed to staying in their neighborhoods and making them better. Specific areas have experienced substantial success which can be measured in terms of the MLS indicators. Rehabilitated homes in Soulard, portions of Shaw, and other neighborhoods benefit from short days on market and relatively minor list price reductions. In St. Louis Hills, sale price levels are relatively high considering the amount of square feet and lack of multiple baths. The attractiveness of the neighborhood is reflected by the short days on market in that quadrant compared to the rest of the City. Another area of promise is the condominium market, especially in the Central West End, Skinker DeBaliviere, and the Wydown-Skinker area. According to the MLS, the City of St. Louis constitutes a major portion of the condominium market in the region. For the year to date period of 1999, the average condominium sale price in the region was $103,000. In the west-central sub area of the City, where most of the condominiums are located, the average sale price is above the regional average at $126,200. Further, average days on market is 74 days in the west central area compared to 82 in the region. SPECIALIZED HOUSING NEEDS Through the St. Louis Community Information Network, information is publicized about the goals to ensure "self determination, independence, empowerment, integration, and inclusion of children and adults with disabilities in all aspects of our plan." The issue with respect to housing is that households which contain persons with disabilities have as many choices as possible in selecting a place to live. This has become increasingly possible as laws and ordinances enacted following the Americans With Disabilities Act are enforced. Now a portion of homes in new developments, or apartments, must have the option to be customized for persons with physical impairments. Persons with disabilities which prevent them from holding jobs can qualify for housing which is oriented to the disabled and/or elderly. In addition to public housing for the disabled, there are several rental programs which provide housing specialized for disabled households. Some units are developed under the Section 811 Program of the Department of Housing and Urban Development. However, it is the goal of most in the disabled community that housing that meets their needs be part of the mainstream housing market, dispersed throughout the community. It would be in everyone's best interest if housing were designed to accommodate a temporary or permanent disability, and minimize the disruption caused by the need to locate suitable living arrangements. This issue will grow in importance as the baby boom generation matures, and disabilities affect a significant percent of the population. Unfortunately there is not a good system in place to inventory and monitor households with disabled residents. Most numbers are assumptions based on nine-year-old census data which put the percentage of the disabled population at 11 percent. That would establish a level of disabled persons at about 37,000, given the City's 16 percent population decline. It is also important to note that a substantial percentage of the disabled population are elderly, and that the elderly population has declined at a percent greater than the overall population decline. In terms of numbers, a 1995 survey found that 956 units in 42 housing developments operated by the St. Louis Housing Authority were occupied by persons with disabilities. Currently, of the nearly 1,000 persons on the waiting list for public housing, 205 have identified themselves as having disabilities. For these households, appropriate housing follows health care as their most important need. Almost as important is on-going follow up with social services, therapy, medication, and other support. Without this assistance, individuals can end up back on the streets and part of the homeless population. They can also adversely affect other households nearby, as has occurred in the elderly public housing in the City. Currently managers of these properties devote a substantial amount of their time ensuring that residents are receiving medication and behaving responsibly. As with so many of these specialized needs, a whole package of services, housing, and intervention is required to achieve desirable results. Efforts need to be made to quantify those disabled individuals in need of medical care, housing, therapy or other support so that progress can be measured and determined. HOMELESSNESS The City of St. Louis, through its Homeless Services Division, provides funding for a variety of services. Working with the Housing Resource Center and the BJC ACCESS Project, as well as several other organizations, almost 8,000 persons were served in 1998. These persons received a total of 133,500 "units" of service.
In addition to families, it is estimated that 3,000 veterans in the St. Louis area are homeless and that an additional 5,000-6,000 veterans are at risk of becoming homeless. Complicating efforts to help is the problem that a significant portion of this population also has been diagnosed with mental illness and/or substance abuse. Further, it is estimated that there are between 1,500 and 2,000 adolescents and young adults in need of shelter on any given night. Violence at homeless shelters has become a growing problem, and, since a portion of the homeless also have HIV/AIDS, there is a risk that others could be infected. HOUSING SUMMARY Those responsible for planning the development of housing, and the City's ultimate policy makers must realize how the City's housing market relates to the rest of the region and to tackle a number of tough questions:
By addressing these issues directly and effectively, the City can create a competitive advantage for itself over other inner and outer ring suburbs with pre-1970 housing and confronting similar issues. What is needed is a commitment to bringing the issues of housing and neighborhood stability into focus by those making the decisions about allocation of scarce resources. There are many areas of promise and progress in all segments of the St. Louis housing market. Abundant effort and commitment of huge financial resources has produced progress in neighborhoods; house by house, block by block. Households and families searching for rental housing, affordable housing, condominiums; or households buying their first house or last house -- all have benefited directly or indirectly from the hard work put forth to date. The City of St. Louis has made hard choices before in allocating scarce resources. It has marshaled diverse interests and institutions in bringing about lasting improvements such as the Kiel Center and the America's Center. The same level of effort and leadership is needed to reinforce the work completed in the past and to ensure progress in the future. | |||||
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HOUSING
This combination of effort has resulted in the production or rehabilitation of 2,861 units of housing from 1994 through 1998. Funding from the Community Development Administration has approached $76 Million during this period. These funds have leveraged the investment of an additional $173.2 Million from a variety of public and private sources, for a total investment of nearly $249 Million for the five year period.
The last five years have witnessed substantial changes for public housing. Much progress is evident with several major developments:
Another measure of the homeless problem comes from the 1998 Annual Report on Homelessness developed by the Catholic Charities Housing Resource Center. They reported that about 51,300 household members received services via the Emergency Shelter Hotline, resulting from calls from some 3,383 families in the City of St. Louis. The relationship of these two measures - household members and families - suggest that many families who are homeless are not small and that they require multiple "units" or episodes of assistance.
