St. Louis Five Year Consolidated Plan Strategy
Chapter 3
Previous Section Table of Contents Next Section
Intro | Housing | Homeless | Special Pop. | Public Facil. | Infrastructure | Public Services
Anti-Crime | Youth | Seniors | Economy | Planning | Codes | Preservation | Energy

HOUSING NEEDS

St. Louis has some of the nation's most affordable housing. At the close of the twentieth century, the City of St. Louis is poised for a renaissance. The strong national economy, growing civic engagement through projects like the Peirce Report and St. Louis 2004, growing interest in attracting and retaining young people to the City through Metropolis St. Louis, and the opening of the doors of City government to outside assessment by FOCUS St. Louis, have helped increase confidence in the potential for City living. Introduction of Missouri state historic rehabilitation tax credits and creation of new Missouri state government incentive programs for designated distressed communities, including the City of St. Louis, are beginning to provide aid in revitalizing St. Louis neighborhoods.

Several new neighborhood organizations have been created since the 1994 Consolidated Plan was submitted. These organizations now collaborative more with one another, and most have become more active. The Sustainable Neighborhoods Initiative and planning initiatives within the Sustainable Neighborhoods target areas, ARCHS, the Garden District Plan and the Empowerment Zone all provide opportunities for targeted revitalization. CDBG and HOME funds remain important funding sources for neighborhood housing organizations, for daily operations and/or for housing development financing.

The housing market in much of the Central West End, Skinker-DeBaliviere, Soulard, Lafayette Square and Southwest St. Louis is quite strong, and the market in neighborhoods around Tower Grove Park is continually improving. Likewise the Washington Avenue Loft District in Downtown West has shown tremendous growth in the past two years. However, some neighborhoods have been substantially stabilized, and experienced increasing property values. . Other neighborhoods also show signs of success, albeit less visibly.

Yet challenges remain. Overall, the City of St. Louis continues to suffer, like many United States cities, from population loss and disinvestment in the housing stock. The population of most neighborhoods has continued to decline in the past five years. Likewise, many housing units have been lost.

Thus the City, other agencies, and neighborhood-based groups must work hard to increase the quality and variety of the housing stock. They must focus on providing adequate, affordable, market-rate housing in an economically and racially integrated, safe, and healthy environment. Obtaining adequate, affordable, and safe housing is a challenge for many City residents.

It is essential the City reinvest in its housing stock. The focus is both on rehabilitation of existing housing and on developing new homeownership opportunities on the vacant properties scattered throughout St. Louis. Rehabilitation often involves converting four-family flats into two-family flats or two-family flats into single-family flats. Fifty-five percent of the City's housing stock was built before 1940, and about 70 percent was built by 1950; as a result, City property owners experience high maintenance and repair costs. Some decide to abandon these properties. Because of disclosures about physical defects, lead-based paint, asbestos, and other problems - required by federal, state, and local regulations and expected by real estate agents and potential buyers - older houses are harder to sell.

The City should continue to assist low- and moderate-income homeowners, especially the elderly, with home maintenance and repair because they often have trouble getting access to home improvement loans due to poor credit or because banks are reluctant to make loans, despite the directives of the Community Reinvestment Act. Even some middle-class homeowners often have difficulty funding repairs to older houses; as a result, many move to newer houses that meet their needs and presumably have fewer repair needs. New housing construction in the City of St. Louis, although expanded in the past five years, is still very limited despite the many vacant properties available.

The strategy for new construction of housing should focus on developments with urban character, so that public transit, neighborhood schools and parks, and small retail stores can be maintained. New developments may involve the redevelopment of poorly designed, although not very old, public housing projects, or new owner-occupied units on vacant land. In either case, new residential developments should be designed to fit within the lot sizes traditional to the neighborhood, and use the existing alleys for service. The houses of the City that still remain from the nineteenth century are important reminders of the City's past.

Although modernization and some accommodation of the automobile are needed, new construction should mirror the development pattern of what is already there, even if the architecture does not. In designated historic districts, though, the new construction should also be similar in architecture to the existing housing.

However, the densities of the 1940s when the City of St. Louis had about 850,000 residents are not necessarily desirable, because the low- and moderate-income in such situations suffer from health and safety problems caused by overcrowding. Overcrowding and homelessness need to be alleviated, and both still exist for low- and moderate-income residents of the City of St. Louis. Overcrowding is particularly evident in immigrant households, and in southern City neighborhoods that are experiencing large influxes of immigrants, refugees, and African-American City residents moving from northern City neighborhoods.

Downtown St. Louis may accommodate some new City residents, but only a limited number. As retail, infrastructure, and cultural institutions are developed, some middle-class young couples, singles, and "empty nesters" are considering living downtown. Another challenge is to invest in neighborhoods immediately adjacent to downtown, where it is cheaper to acquire land for new housing developments, especially for homeownership. They must be effectively connected to downtown, but still be positioned as viable, individual neighborhoods.

Retaining current residents through home repair assistance and homebuyer assistance, and attracting new ones through construction of new and rehabilitated housing opportunities and through homebuyer assistance efforts, shall make up the bulk of the housing strategy for the next five years in the City of St. Louis. CDBG and HOME funds are very important components of this strategy.

St. Louis housing and neighborhood stabilization needs must be considered in terms of a continuum of need, especially for low- and moderate-income households. These needs include: living wage jobs that are conveniently located, adequate neighborhood schools, youth and senior citizen recreation facilities, crime prevention and control, perception of safety, social services, convenient access to retail shopping, frequent and convenient public transportation, standard code compliant housing stock, and affordability of rent, mortgage payments, energy costs, and maintenance/repair costs. Some of these issues can be addressed by City government, but others fall within the bailiwick of other government agencies and private business. Collaboration, therefore, is important.

Specific housing needs relevant to the Consolidated Plan fall into six categories:

Each topic is discussed in a separate section of this chapter.

HOMEOWNERSHIPTop of Page

The City of St. Louis has a relatively low rate of homeownership (about 42 percent). By providing more homeownership opportunities, however, more middle-income households may be attracted to the City, and low- and moderate-income households can be empowered to help stabilize their neighborhoods. Many studies have reported that a high level of homeownership helps stabilize communities. However, homeownership is not a panacea. Many of the elderly own houses too large for elderly needs or houses with serious repair needs. Meanwhile, large families live in units that are overcrowded. This occurs despite the large tracts of vacant land in the City of St. Louis. Stabilizing the overall housing market, assisting current homeowners through home repair programs, and promoting increased homeownership are all-important goals of the City of St. Louis.

Current Services

CDA and SLDC provide numerous services and programs specifically oriented to existing and potential homeowners.

Tax Abatement. Most new construction and substantial rehabilitation activity receives ten year property tax abatement, wherein the property is taxed only on the pre-improvement value of the land. These tax abatements are made possible through blighted areas designated by the Board of Aldermen and approved by the Land Clearance for Redevelopment Authority (LCRA), an agency that receives staff support through St. Louis Development Corporation (SLDC).

Residential Development Program. The Neighborhood Initiatives program is being developed to help target initiatives already underway. CDA Residential Development (and, until 1999, Operation Impact) assists Community Housing Development Organizations (CHDOs) and Community Based Development Organizations (CBDOs) in developing for-sale housing opportunities.

Developer Assistance. CDBG and HOME funding is made available for individuals and businesses in response to proposals to build or renovate for-sale housing. Target areas are identified. Currently, the CDA Executive Director is developing a Neighborhood Initiatives program to more specifically coordinate and target development activity in several neighborhoods.

Buyers' Assistance. Help for first-time homebuyers has grown in the past five years through the use of gaming tax revenues. Assistance is provided through CDA and other agencies to cover points and closing costs; to record initial interest payments; and to cover a portion of the down payment. Education and counseling for prospective homebuyers have also been part of these efforts.

Homeowners' Assistance. Loans, grants, and forgivable loans are provided for home repairs through several agencies. These are typically distributed on a ward-by-ward basis, with CDA as administrative agency for some areas, Neighborhood Housing Services of St. Louis, Inc. for some areas, and neighborhood organizations for some areas.

Marketing and Publicity. The non-profit City Living Foundation works closely with CDA, SLDC and neighborhood groups to market City home-buying opportunities. However, this is not funded by CDBG or HOME dollars; only by private funds and City general revenues.

Needs and Challenges

The City of St. Louis suffers when current residents with the capacity to move away do not believe their property values will stabilize or increase. When this happens, people leave. Although some people think of their houses only in terms of their use value, most middle-income and low- and moderate-income homeowners have most of their assets tied up in the value of the house. The house is the single largest investment, so when that investment appears jeopardized, they look for a safer location in which to invest. Typically, because of decades of negative press and bad perception about the City, and often because of negative personal experiences they associate with living in the City, these residents leave the City of St. Louis.

The City of St. Louis housing market is distinct from most others in the metropolitan area. The market is much smaller, because the housing stock, on average, is much older. This older housing stock appeals to many people because it has historical features that cannot be replicated. However, merely because a house is old does not mean it is inherently better than a new house (and vice versa). Construction techniques and materials have always varied in quality.

In the past ten years, and especially in the past five, disclosure requirements imposed on home sellers have increased. One particularly relevant in the City of St. Louis is the requirement for lead-paint disclosure on any house built before 1978. Since 90 percent of the houses in the City of St. Louis predate 1978, and most predate 1952, the year Missouri banned lead-based paint for indoor use, lead-based paint in or on St. Louis houses is almost universal. Many of the zipcodes in the City have very high concentrations of children diagnosed with lead poisoning. This problem needs to be addressed in owner-occupied and rental housing where children live. Asbestos, also, is widespread, although in most cases asbestos siding, floor tiles, or shingles do not need to be abated until they are scheduled for replacement. Asbestos is more problematic when it is found in insulation.

New homeownership opportunities are important. To this end, the City has supported and continues to support initiatives such as Habitat for Humanity and YouthBuild. In recent years, Habitat has been particularly active in Forest Park Southeast, Hamilton Heights, and The Greater Ville. Neighborhood-based non-profit groups, as well as the St. Louis Association of Community Organizations, have also been involved in residential development for homeownership.

SLACO's partnership with Vatterott Construction, called Affordable City Homes of St. Louis, has been the developer for the Buder Place development in The Gate District. Major ongoing for-sale housing developments include McCormack Baron's Westminster Place in the Central West End, the Maple Acres development in the West End, both Buder Place and Pyramid Construction's Eads Park developments in The Gate District, Judy Woolverton's Mullanphy Square development in St. Louis Place, and the redevelopment of the South Grand Sears parking lot into for-sale houses built by Pyramid Construction in Gravois Park.

Other large private housing developers are also becoming more interested in the City, just as Pyramid Construction, McCormack Baron, Affordable City Homes and smaller developers have been working in the City for many years. Many vacant parcels exist in the City limits that are in great locations for homeownership. However, land assembly, title clearance, and environmental abatement remain problematic.

In the past five years, the City and private entities have initiated and expanded numerous financial and technical assistance programs for first-time homebuyers in St. Louis. Home repair assistance programs also were an important function to maintain adequate owner-occupied housing stock. Now, the challenge is to continue expanding the level of standard housing stock in the City. One major component of this is implementing the lead-paint abatement strategy for existing housing units. Table III-B-1 is an attempt to summarize the burdens experienced by homeowners in the City of St. Louis.

[Table III-B-1, St. Louis Homeowner Burdens, Est. 1999]

Recommendations

Increase the variety of owner-occupied housing available in the City of St. Louis:

a) Implement the Neighborhood Initiatives.

    Improving the quality of rental housing in City neighborhoods through the Neighborhood Initiatives program of the CDA. The Neighborhood Initiatives program is designed to more specifically coordinate and target development activity-both public and private-within neighborhoods.

b) Consider reconfiguration of two-family and four-family flats.

    Creating larger units for modern homeowner amenities means some two-family buildings need to be made single-family, or four-family buildings converted to two units. Owner-occupants who choose to rent parts of their multi-unit buildings should not be discouraged from doing so, because the rent payment can be a significant income supplement for the owner-occupant. Indiscriminate demolition of vacant units should be avoided. Instead, the urban character of St. Louis's neighborhoods should be maintained, while recognizing that larger housing units are needed and that the population of the City of St. Louis has dropped by more than half in the past 50 years.

c) Consider conversion and attachment of some existing bungalows to provide larger housing units.

    While some city blocks have too many two-family and four-family buildings, others have more zero- and one-bedroom bungalows and shotgun houses than the current demand. As a result, most of these houses sell for less than their assessed value, often for less than the combined value of past improvements and the original purchase price, inflation-adjusted. One possible strategy is to create three- or four-bedroom units by purchasing bungalow properties and connecting two adjacent properties via a connecting hallway, constructed on a slab foundation. By minimizing redesign costs, these units could be rehabilitated and made available as affordable housing units for large families.

d) Encourage homeownership for low- and moderate-income people.

    Many City residents pay rent that is equivalent to the neighborhood's average mortgage payment. The City should encourage prospective homebuyers to purchase homes in the City. Owner-occupied housing contributes to the success and stability of mixed-income neighborhoods. In the past five years, the St. Louis Housing Authority implemented the Carr Square Conversion pilot homeownership project in the Carr Square Village complex north of downtown. Selling public housing units to low- and moderate-income households is one way to encourage these families to invest in themselves and their communities. However, concentrating low- and moderate-income housing in already heavily low- and moderate-income areas is not a wise strategy.

    Many studies show that 20 percent to 25 percent should be the maximum percentages of low-income population in a neighborhood. Affordable homes are not necessarily a good investment if they are surrounded by poorly maintained and vacant buildings, or by vacant lots. Maybe low- and moderate-income families should be encouraged to buy houses in middle-class and upper-class areas. Homeownership helps people feel connected to their communities, and provides a reason to stay in the neighborhood. A higher level of homeownership tends to increase property values overall. Of course, homeownership is not a panacea; living-wage jobs and good public schools also need to be provided to form a strong community.

e) Encourage local credit unions, pension funds, labor union funds, and foundations to provide support for buying City houses and City residential development.

    The St. Louis area has a strong network of non-profit groups whose members are stakeholders in the organization and in the community. These institutions should join the banks in increasing their support in lending for buying houses in City neighborhoods and for City housing construction and rehabilitation. While it is true that institutions are focused on securing a return on their investments, they can make significant revenues in City development. For example, the AFL-CIO pension fund was involved in the financing for the Chase Park Plaza redevelopment.

f) Consider supporting employer-based and faith-based home purchase forgivable loan programs.

    BJC Health Systems, Washington University, Unity Health System (Alexian Brothers Hospital), and Concordia Publishing House have all announced forgivable loan initiatives to aid their employees in buying houses near their respective institutions. Such programs, as well as the Missouri Housing Development Commission/CDA "Cops on the Block" program, should be supported and expanded to as many other large City employers as possible. Likewise, a recent partnership between the St. Margaret of Scotland Catholic Church and a suburban Catholic parish is focused on assisting members of the suburban parish in buying a home in the Shaw or McRee Town neighborhood.

    The City should support those types of initiatives as well. Consideration should also be given to establishing employer-based programs in conjunction with City support for industrial expansion and retail developments; consequently, both manufacturing and service-industry workers can live in neighborhoods within walking distance from their workplaces. In all cases, marketing forgivable loans must be more aggressive. Also, the City could provide matching funds for corporate investments programs, which ultimately benefit the companies and the City. By contrast, recent City programs using gaming revenues to provide City residents with homebuying assistance have not been as effectively leveraged as they could be.

g) Encourage more banks to participate in unconventional mortgage programs that help sell City homes.

    Particularly problematic is when service agencies participate with one bank exclusively for their clients' loans.

h) Consider developing streamlined financial incentive programs that do not require prospective homebuyers to participate in counseling sessions.

    Although many homebuyers and real estate agents want to take advantage of down payment and closing cost assistance programs, they are often prevented from doing so because they have not participated in homebuyer counseling sessions. Although these counseling sessions are needed for some homebuyers, others are familiar with the process and may not require counseling. Providing them a reasonable incentive to buy in the City of St. Louis is important to attracting new homebuyers.

i) Maximize use of the newly elevated limits for FHA loans.

    Now that, in 1998, Federal Housing Administration loan limits have been equalized for the whole St. Louis metropolitan area, limits should be used to encourage purchase of houses priced in the range between the old and new limits-$99,200 to $142,050. While many Metropolitan St. Louis residents, and particularly many City residents, cannot afford houses in that price range, it is still important to attract upper-middle-class homebuyers to the City of St. Louis.

j) Focus on rehabilitation of existing housing stock, especially by using Historic Rehabilitation Tax Credits and Rebuilding Communities Tax Credits.

    These recently created Missouri state programs may drive significant City neighborhood revitalization efforts. Where existing housing is available for rehabilitation, it should be targeted in lieu of new construction. As long as the existing structures are structurally sound, they should be rehabilitated to the extent practical. Other programs that could be used more extensively are the 203k loan through FHA, and the Fannie Mae "HomeStyle" program, both of which are purchase-rehabilitation loans. Using structures that have previously been developed, most of which could not be built today given available resources, is the wisest strategy for revitalization of the historic City of St. Louis. However, where there are substantial vacant properties available and interest in new construction, new construction development must fit into the character of the surrounding neighborhood.

k) Consider developing a home repair revolving loan fund.

    Currently, home repair programs available to City residents vary according to the agency administering the program or the ward of residence. Some are loans, some are forgivable loans, some are grants, and Home Services, Inc. provides direct repair services. Each of these programs is valuable itself. If these programs could be supplemented by a revolving loan fund then available home repair funds could be distributed to a larger number of homeowners overall. Maintenance of the existing housing stock is one of the City's most pressing needs. While a revolving loan fund would require some collection activities, organizations such as Neighborhood Housing Services already have some capacity for recovering on home repair loans.

l) Encourage collaboration among neighborhood groups.

    The network of neighborhood groups is a patchwork of different organizations that have different functions and different missions, with some operating in overlapping territories. If adjacent neighborhood groups collaborated, they could enhance their capacity and create more housing developments, while reducing administrative expenses. These groups need to participate in capacity-building classes and explore new fund-raising and donor-cultivation strategies. Also, the City needs to consider ways to encourage non-producing organizations and ways to reward hard-working groups.

m) Find ways to help build capacity of developers and repair companies.

    Although most developers and home-repair businesses are for-profit, there still are not enough to serve all the repair and rehabilitation needs of the City housing stock. For example, Ranken Technical College needs to consider teaching rehabilitation to its students, not just new construction techniques. Other training initiatives such as YouthBuild need to be explored and expanded when possible. Quality work is essential, because the ultimate result of shoddy repair work may be abandonment, or at least resources wasted needlessly. While it is always important to protect homeowners from fraudulent home repair firms, more reputable firms need to be established and supported to meet the needs of the aging housing stock.

n) Encourage projects to attract new residents and homeowners to the City of St. Louis, such as the marketing programs developed by Metropolis St. Louis and by neighborhood groups.

    Much of this effort focuses on attracting the middle-class, economic integration does benefit all residents. But if the City of St. Louis does not attract new residents, especially new young residents, it cannot survive. Too often, today's dominant patterns of city resident mobility are out-migration, moving from one neighborhood to another (primarily north to south), and moving from an older housing unit to a newer or renovated housing unit within the City. There is relatively little gain of residents from the suburbs or other cities. New residents are needed to sustain the City of St. Louis. Recent college and technical school graduates, who often qualify as low- and moderate-income, could be potential target groups for City home purchase incentive programs.

    Although CDBG funds cannot be used to market the City, other funds must be made available for marketing efforts. In this vein, the City Living Foundation's current problems with funding from the City need to be resolved. If the Foundation does not actually resolve its conflict-of-interest issues and establish a marketing program, other options must be considered.

o) Support ongoing planning initiatives.

    The City must support such initiatives as the Near Southside Redevelopment/ Darst-Webbe HOPE VI, St. Louis Enterprise Community, Greater St. Louis Regional Empowerment Zone (GSTLREZ), Downtown Now!-The Mayor's Downtown Development Action Plan; the Regional Housing and Community Development Alliance (RHCDA); Area Resources for Community and Human Services (ARCHS); the St. Louis 2004 Sustainable Neighborhoods Initiative; and neighborhood-based planning efforts.

p) Consider adopting the principles of Universal Design in for-sale housing.

    Universal Design is the design of architectural features to be usable for all people, including persons with disabilities. For example, Universal Design would suggest that wider than usual doors and step-free entry to the house be provided when practical. Another example is the use of door handles rather than doorknobs on all doors. These can be grabbed more easily not only by persons with disabilities, but by anyone. Universal Design also means houses need at least one bedroom and one bathroom to be on the ground floor when possible. The marginal cost of Universal Design improvements is typically small, especially in new construction and major rehabilitation.

q) Support community initiatives to use the Housing Equity Act.

    The Housing Equity Act, passed by the Missouri legislature in 1999, provides a housing sale price guarantee to homeowners in selected locations. Specified districts within the City of St. Louis are eligible, but voters must approve a special property tax assessment for the program to take effect. This could be a way to encourage residents to reside in the City because a homeowner usually considers the house a major investment rather than a consumable good.

Resources

Over the next five years, proposed investments of CDBG and HOME funds will be focused on building better neighborhoods and adequate homeownership opportunities. Recognizing the limitations imposed by budgetary cutbacks is important. Other funds, particularly support from local and national banks, credit unions, and employers, must supplement federal grant funds. City general revenue and revenue bond financing schemes should be considered so that more market-rate for-sale housing development can be facilitated in City neighborhoods. The Rebuilding Communities Tax Credit, the Historic Rehabilitation Tax Credit, and the Housing Equity Act, all provided through the State of Missouri, are important financial incentives to city residential redevelopment. The City of St. Louis can grow, and neighborhoods can be stabilized, through collaborative efforts.

RENTAL HOUSINGTop of Page

The City of St. Louis' rental housing market is generally weak, but has specific areas of need and specific sectors of strength. Large, affordable housing units are continually needed, but market-rate rents usually cannot support them. Overall, there is a large inventory of units in comparison to demand, but many of these are sub-standard or not affordable for most St. Louisans.

Current Services

The City of St. Louis is involved in many aspects of the rental market as described in the sections on Code Enforcement, Lead-Based Paint, Asbestos Removal, and Historic Preservation. This section focus on the direct support services provided by the Community Development Administration and other development agencies. These services include:

Developer Assistance. CDBG and HOME funding is made available for individuals and businesses in response to proposals to build or renovate affordable rental housing. Target areas are identified. Currently, the CDA Executive Director is developing a Neighborhood Initiatives program to more specifically coordinate and target development activity in several neighborhoods.

Tax Abatement. Most new construction and substantial rehabilitation activity receives ten year property tax abatement, wherein the property is taxed only on the pre-improvement value of the land. These tax abatements are made possible through blighted areas designated by the Board of Aldermen and approved by the Land Clearance for Redevelopment Authority (LCRA), an agency that receives staff support through St. Louis Development Corporation (SLDC).

Residential Development Program. The Neighborhood Initiatives program is being developed to help target initiatives already underway. CDA Residential Development (and, until 1999, Operation Impact) assists Community Housing Development Organizations (CHDOs) and Community Based Development Organizations (CBDOs) acquire and renovate rental properties. When sold to private developers, professional renovation and management are expected.

Financial Support. The St. Louis Equity Fund is a key entity that coordinates corporate investments to pool equity needed for Low-Income Housing Tax Credits. The Missouri Housing Development Commission (MHDC) also provides necessary funding. CDBG and HOME funding are matched by local dollars, including the foregone taxes resulting from tax abatement in a blighted area.

Landlord Support. Several Management Assistance Programs (MAPs) have grown significantly in the past five years. These organizations encourage landlords to maintain property, screen tenants, and manage their property in a professional manner. The Neighborhood Stabilization Team has an active landlord support problem component.

Direct Rental Assistance. Many St. Louisans need federal Section 8 rental support to cover the difference between the fair market rent of their housing and the amount they can afford to pay (30 percent of their income). Four different agencies administer this program: HUD provides support to selected tenants in project-based assisted housing developments; St. Louis Housing Authority and St. Louis County Housing Authority provide tenant-based vouchers and certificates and related services, such as inspection of Section 8 units; and the Missouri Housing Development Commission provides funds especially for families in homeless shelter facilities.

Needs and Challenges

The rental housing market in most of the City of St. Louis is weak. Many apartments do not generate sufficient rents for landlords to maintain and improve their properties adequately. Many buildings have not experienced ongoing necessary reinvestment and repair. There is definite need for three-plus bedroom units for low- and moderate-income families currently living in substandard or unaffordable (over 30 percent of income) housing units.

St. Louis has traditionally been a city of two-family and four-family houses, called flats. Flats dominate the housing stock in most neighborhoods east of Grand Boulevard. Further north and south, single-family houses increasingly dominate the neighborhoods' housing stock. Even southwest St. Louis neighborhoods such as South Hampton and St. Louis Hills have substantial numbers of multifamily dwellings. Larger, public housing developments are concentrated immediately north and south of Downtown St. Louis, and just north of Midtown St. Louis. The Central West End houses the metropolitan area's greatest concentration of middle- to upper-income apartments. Rental housing remains a substantial portion of the housing stock in the City of St. Louis. Table III-B-4 is an attempt to summarize the current rental housing burdens experienced by St. Louis residents.

[Table III-B-2, St. Louis Rental Housing Burdens, Est. 1999]

Since 1994 . . .

The past five years have seen the demolition of the large Laclede Town, Laclede Park/University Heights, and Operation Breakthrough West and East housing developments in Midtown, just south of Olive Street. These mostly low-rise 221(d)(3)-funded apartments built between 1961 and 1974 housed a diverse population in the late 1960s and early 1970s, but by their demolition had deteriorated severely. Now, Saint Louis University, Harris-Stowe State College, A.G. Edwards & Co., and Sigma-Aldrich Corporation are developing major expansions on the sites of these developments. No housing will be developed there; the final housing units that remained (large units in a high-rise structure at 60 North Ewing in Breakthrough East) were demolished in 1998.

Also in the past five years, the high-rise Vaughn public housing complex in the Carr Square neighborhood north of downtown St. Louis was demolished (with the exception of two buildings) and replaced with the mixed-income low-rise George L. Vaughn Residences at Murphy Park apartment and townhouse complex. This redevelopment began as the Vaughn Demonstration Project. About 55 percent of the units in Murphy Park, a McCormack Baron Corp.-managed development, are designated for low-income households.

Within the next five years, the two remaining high-rises at Vaughn may also be demolished, according to the St. Louis Housing Authority Comprehensive Grant Plan. In conjunction with the reconfiguration of the almost 50-year-old Carr Square Village public housing complex also undertaken in the past five years, and the recent remodeling of the 20-year-old O'Fallon Place mixed-income apartment complex, this redevelopment will help build a stronger Carr Square neighborhood. The Jefferson School Project, a McCormack Baron initiative to revitalize the neighborhood school, and COVAM (Carr Square, O'Fallon, Vaughn and Murphy Park), a social services coordination effort, also have been created in conjunction with these major rental housing investments in Carr Square.

The Next Five Years . . .

Also in Carr Square, future plans include some retail, for-sale housing and possible industrial development on the site of the former Pruitt-Igoe public housing complex west of Murphy Park, and new housing north of the Murphy Park area in the St. Louis Place neighborhood. These efforts of the past five years and their expansion over the next five years will enable maintenance of a stable, mixed-income community predominantly composed of renters in this key neighborhood within walking distance of almost 90,000 jobs in downtown St. Louis. Mercantile Bank (soon to be Firstar Bank Corp.) was a major lender in the development of Murphy Park and the renovation of O'Fallon Place.

The demolition of the Darst-Webbe high-rise public housing complex south of downtown began in 1999. Over the next five years, the HOPE VI funding for this redevelopment will transform this section of the near Southside. Both for-sale and rental housing, both affordable and market-rate, are planned as part of the Near Southside Redevelopment. This redevelopment will create synergy with the Comprehensive Grant revitalization of both the LaSalle Park Village apartments and the Clinton-Peabody Terrace apartments, the redevelopment of the former City Hospital No. 1 and Malcolm Bliss Mental Health Center complex, and the Bohemian Hill redevelopment, just south of Darst-Webbe.

The groundbreaking for the first new construction house in Bohemian Hill was held in 1998. Bohemian Hill is a project of Royse-Noero Architects and YouthBuild/Youth Education & Health in Soulard, with support from the Landmarks Association of Greater St. Louis. These redevelopment activities will reconnect the near Southside neighborhoods of Lafayette Square, LaSalle Park, and Soulard with each other and with the former Darst-Webbe area. This reconnection will effectively reestablish a neighborhood that existed as an organic whole before the construction of public housing in the 1940s and 1950s. However, the other disconnecting factor, the Interstate highways, will continue to separate these neighborhoods from the rest of the Southside.

Other projected redevelopment activity will occur in the Sustainable Neighborhoods Initiative target areas, 14 neighborhoods in five target areas. Forest Park Southeast, one of the Sustainable Neighborhoods, has already completed a neighborhood revitalization plan and is a designated Neighborhood Revitalization Strategy Area. Forest Park Southeast is also involved with the Washington University Medical Center Community Revitalization Program.

The Fifth Ward Comprehensive Neighborhood Plan process currently underway includes the Sustainable Neighborhoods Initiative target area of Old North St. Louis, St. Louis Place, Carr Square, and Columbus Square. Another plan is also underway in part of the Vandeventer and Covenant Blu-Grand Center Sustainable Neighborhood cluster, called the North Central Coalition plan. The other Sustainable Neighborhoods Initiative clusters in the City of St. Louis are Walnut Park West; Walnut Park East; Mark Twain; and Fox Park; McKinley Heights; Benton Park West; Gravois Park.

Within the Greater St. Louis Regional Empowerment Zone (GSTLREZ) neighborhoods and developable sites, activity will focus on creating jobs for residents. At least 35 percent of jobs supported by EZ bonds or EZ funds must employ EZ residents. These job creation initiatives may help improve the lives of many low- and moderate-income residents of the City of St. Louis, and may strengthen the market for housing in the GSTLREZ neighborhoods. The GSTLREZ includes most of the neighborhoods surrounding downtown St. Louis east of Grand Boulevard and north of I-44, as well as the City of Wellston, MO, and most of the City of East St. Louis, IL.

Downtown Now! - the Mayor's Downtown Development Action Plan - may also be a key development in the next five years. Several thousand new housing units are projected for downtown St. Louis (the CBD and Downtown West). Particular focus in the next five years may be on concentrated residential development in the Washington Avenue Loft District and Riverside North/Laclede's Landing. This development may include a mix of price ranges, and both for-sale condominiums and townhouses, as well as rental housing units. About 2,700 new housing units are planned for the downtown area, including more than 100 units already under construction or in initial design. Residents may always comprise only a small number of downtown St. Louis's users. It is expected that many of these units will be built in the next five years, thereby strengthening the downtown St. Louis housing market.

Neighborhood conservation and stabilization efforts in various City neighborhoods may also improve the condition of rental housing stock. For example, in the Shaw neighborhood, resident attorneys have banded together to represent neighbors in suing absentee landlords.

Recommendations

Increase the variety of rental housing available in the City of St. Louis:

a) Implement the Neighborhood Initiatives.

    Improving the quality of housing via CDA's Neighborhood Initiatives program is a priority. The Neighborhood Initiatives program is designed to coordinate and target development activity-both public and private-within neighborhoods.

b) Encourage expansion of integrated social service and housing programs.

    One key initiative of the Ecumenical Housing Production Corporation (EHPC), in conjunction with the St. Louis Equity Fund, is the Community Asset Management Corporation (CAMCO) created in 1998. This effort, which provides social services to residents of properties managed and/or owned by EHPC, should be emulated, and CAMCO should be encouraged to be more active within the City limits.

c) Consider developing three or more bedroom affordable rental housing units for large households.

    Three-bedroom units especially are needed to support large families who now often live in overcrowded conditions, are homeless or in danger of becoming homeless, or are in danger of losing their housing. Some are needed to replace the family units lost because of the demolition of the Laclede Town/Breakthrough, Vaughn and Darst-Webbe developments. Also, more public housing complexes-including Euclid Townhouses, Warwood, Mark Twain, Cochran Gardens and Blumeyer Village-may be demolished in part or in whole during the next five years. Since many of these public housing units may not be replaced by on-site affordable housing units, more scattered-site affordable housing for large families must be developed.

d) Support new construction rental housing development primarily in conjunction with major redevelopment areas.

    Because there is still an oversupply of rental housing units in the City of St. Louis, although not as pronounced as in 1994, new construction of market-rate units must be carefully considered in light of market conditions. Development of mixed-income public housing complexes, such as Murphy Park, Darst-Webbe HOPE VI, Cochran Gardens, and Blumeyer Village, may consume most of the resources targeted for new rental housing. Downtown St. Louis is also a possible target area for new construction rental housing, such as those proposed in Riverside North and on in-fill sites in Laclede's Landing and the Washington Avenue Loft District.

e) Consider supporting creation of a housing trust fund.

    Currently, the tenant advocacy group Housing Comes First is developing a plan for an affordable housing trust fund for the City of St. Louis. Many other cities around the country, as well as St. Louis County and the State of Missouri, have housing trust funds. These are funding pools from which non-profit developers can draw dollars to support or match other funds for affordable housing construction and renovation. The housing trust fund would be funded through an earmarked tax or user charge, such as a building permit fee or occupancy permit fee.

f) Consider supporting development of more SRO (Single Room Occupancy) buildings to prevent homelessness for one- and two- person households.

    Affordable Single Room Occupancy housing opportunities, mainly for single men and women, should be expanded so that there are alternatives to homelessness. Rents on these units (usually charged at weekly rates) must be made as affordable as possible, while maintaining minimum standards of adequate housing (i.e., each unit needs a separate toilet, but bathing and cooking facilities may be shared). SRO units are particularly important for single men, as sources of inexpensive housing like those available before public housing and urban renewal programs in the 1950s and 60s destroyed the rooming houses and residential hotels once common in the center city of St. Louis. Because of the access to entry-level job opportunities and public transit, such developments should be particularly concentrated in downtown and midtown St. Louis. The renovation of the Mark Twain Hotel, completed in 1998, is an example of improved SRO housing space downtown.

g) Focus on rehabilitation of existing housing stock.

    The architectural quality of the existing housing stock of the City of St. Louis is very difficult to replicate. Many units, however, are functionally obsolete. Where existing housing is available for rehabilitation, it should be targeted in lieu of new construction. If existing structures are structurally sound, they may be rehabilitated to the extent practical. This rehabilitation should include flexibility in the requirements for restoration of interior conditions in historic districts and at historic sites. Renters want modern conveniences, so although the fabric of the streetscape must be maintained intact, interior updates should be allowed under federal and state regulations. Using structures that have previously been developed, most of which could not be built today given available resources, is the wisest strategy for revitalization of the historic but geographically limited City of St. Louis.

h) Consider reconfiguration of multifamily buildings.

    Creating larger units for large families means some two-family buildings need to be made single-family, or four-family buildings converted to two units. This conversion provides adequate space for occupancy by large families. Owner-occupants who choose to rent out parts of their two or more unit buildings should not be discouraged from doing so. Indiscriminate demolition of vacant units should be avoided. Instead, the urban character of St. Louis's neighborhoods should be maintained, while recognizing that larger housing units are needed and that the population of the City of St. Louis has dropped by more than half in the past 50 years.

i) Give priority to the renovation of distressed rental properties on otherwise stable blocks.

    The Community Development Administration must work with Community Based Development Organizations (CBDOs), Community Housing Development Organizations (CHDOs), Management Assistance Programs (MAPs), and other groups to improve the condition of rental property suffering from poor management and poor maintenance, this including both Section-8 and non-Section 8 properties. Indeed, many of the most poorly maintained rental properties are not Section 8 eligible.

j) Improve management of and access to the Section 8 program.

    Section 8 provides necessary assistance to low- and moderate-income St. Louisans. Some owners of Section 8 properties, however, abuse the program and are not careful in screening tenants, which sometimes results in the Section 8 property being identified as a problem property. Improved training and overseeing of landlords is needed, as well as a large increase in voucher-qualified housing stock, since the waiting list is currently very long and likely to grow as existing public housing is demolished. Meanwhile, some owners of Section 8 project-based developments may consider opting out of the program if they believe they can make greater profits from market-rate rentals. This is a nationwide problem resulting from the unwillingness of Congress to authorize Section 8 contracts for more than one year at a time. Also, the Section 8 voucher and inspection programs of the St. Louis Housing Authority need major improvements (see Public Housing section).

k) Give special priority to renovation of two- to six-family buildings for owner occupancy or neighbor ownership.

    The maintenance record of absentee owners is a disgrace in many neighborhoods. When the owner of a rental property occupies one of the units, or lives within a couple blocks of the rental property, regular maintenance and reinvestment are much more likely to occur.

l) Encourage neighborhood efforts to address problems associated with neglected rental properties.

    In the Shaw neighborhood, local attorneys and neighborhood residents have joined together to bring lawsuits against owners of poorly maintained, albeit occupied, rental housing. This effort is made possible under the state's nuisance property law. The City needs to encourage these efforts. The Neighborhood Stabilization Team and the City Counselor's Office also devote time to enforcing the City's Public Nuisance Ordinance, which can precipitate the closing of troubled properties.

m) Encourage commercial redevelopments that include housing on the upper floors.

    The traditional urban development pattern of retail shops on commercial streets with apartments above, sometimes occupied by owners and employees of the stores below, is a great way to provide affordable housing convenient to public transportation. Existing neighborhood retailers may be encouraged to use the upper floors of existing corner store and commercial strip buildings as rental housing, if they are not currently living in those spaces. New retail developments receiving public funding may be encouraged to include rental housing units above the stores. The rent from the retail can at times subsidize the housing, and the rent from the housing can at times subsidize low-margin retail operations.

n) Expand landlord education and technical assistance programs.

    DeSales Community Housing Corporation and Tower Grove South Management Corporation are two important property management assistance agencies currently receiving CDA support. Forest Park Southeast has also begun such a program. These initiatives need to be expanded over the next five years to other neighborhoods with a significant number of medium-sized, privately owned rental properties. The City needs to actively work with existing landlord associations, such as the South St. Louis Landlord Association (loosely affiliated with Dutchtown South Community Corporation) and the Carondelet-Holly Hills Landlord Association.

o) Consider more consistent and stricter code enforcement and a citywide occupancy permit requirement.

    Some property owners complain that the Building Division inspectors are inconsistent in their enforcement of building codes. They claim that code enforcement is not systematic, and that sometimes the very people who are improving their properties get cited, while dangerous conditions resulting from deferred maintenance are ignored. Instead of establishing individual housing conservation districts, consider the benefits of introducing an ordinance that would create a citywide conservation district. By comparison, the City of University City is much more consistent and strict in enforcing its building codes.

p) Consider adopting the principles of Universal Design.

    Universal Design is the design of architectural features to be usable for all people, including persons with disabilities. For example, rather than installing grab bars in an apartment bathroom for a disabled tenant, then removing them after that tenant leaves, Universal Design would suggest that something like a grab bar be installed in all the apartments in that development, and be kept in place permanently. Another example is the use of door handles rather than doorknobs on all doors. These can be grabbed more easily not only by persons with disabilities, but by anyone. Universal Design also means rental units need at least one bedroom and one bathroom to be on the ground floor when possible. The marginal cost of Universal Design improvements is believed to be small, especially in new construction. However, its impact on the total cost of each project must be evaluated.

q) Explore special housing assistance programs to enable persons with mental disabilities to live in the community.

    Persons with mental disabilities need special attention to their housing needs. Some options need to be provided wherein services for City residents with mental disabilities are conveniently available on-site or in the neighborhood. Living in the greater community is very challenging but very important for persons with mental disabilities, especially those who also are addicted to drugs or alcohol. CDA and other City agencies need to work with constituent groups to provide appropriate housing opportunities to meet the needs of persons with mental disabilities and addictions.

r) Support ongoing planning initiatives.

    The City must support such initiatives as the Near Southside Redevelopment/Darst-Webbe HOPE VI, St. Louis Enterprise Community, Greater St. Louis Regional Empowerment Zone (GSTLREZ), Downtown Now!-The Mayor's Downtown Development Action Plan, the Regional Housing and Community Development Alliance (RHCDA), Area Resources for Community and Human Services (ARCHS), the St. Louis 2004 Sustainable Neighborhoods Initiative, and neighborhood-based planning efforts. Recognizing that every part of the City has distinct needs and opportunities, collaboration among adjacent neighborhoods and among historically competing groups in the same neighborhoods is needed in order to improve these communities.

Resources

Over the next five years, proposed investments of CDBG, HOME, and public housing revitalization funds will be focused on building better neighborhoods. Private dollars from both the for-profit and non-profit sectors are also needed. Particular focus should be on maximizing use of Low-Income Housing Tax Credits, and using the recently created Missouri Historic Rehabilitation Tax Credit. Also important are the commitments made public by many local banks in conjunction with the Sustainable Neighborhoods Initiative, and particularly the Community Reinvestment Act compliance needs of the newly merged mega-banks, Bank of America and Firstar Bank.

PUBLIC HOUSINGTop of Page

The St. Louis Housing Authority (SLHA) has many challenges and critics.

Current Services

The U.S. Department of Housing & Urban Development (HUD) primarily funds the St. Louis Housing Authority (SLHA). Funding also comes from federal entitlements, grants, and rental incomes. The seven-member board of commissioners (five members are appointed by the Mayor with Board of Alderman approval, and two are elected by the tenants) oversees the Authority and appoints the Executive Director. The SLHA owns and operates 43 public housing developments and administers several assisted housing programs including Section 8 rental vouchers, rental certificates, and moderate rehabilitation units.

The public housing inventory consists of 5,011 units in the 43 housing developments throughout the City of St. Louis. A total of 17 developments are reserved for elderly and persons with disabilities. Twenty-six (26) are for families. Currently 3,252 units are occupied, while 1,759 units are vacant. Some units are vacant due to rehabilitation and modernization efforts. The majority of the vacant habitable units are in elderly developments. The high number of vacancies is caused primarily by a decreasing elderly population and competition from other housing providers that provide more amenities and services for the elderly.

The vast majority of SLHA developments are located north of I-44, and the largest concentration of units are immediately north and south of downtown St. Louis, just north of Grand Center. In mid-1999, the SLHA began the process of privatizing management of all units. This includes units that are currently under private management, since those contracts are expiring. Clinton-Peabody and LaSalle Park Village have already been changed to new private management companies. All developments will be converted by early 2000.

As of October 1999, 32 developments with a total of 2,057 units were directly managed by the SLHA and 2,954 by other management companies. The following schedule details current management contracts:

[Table III-B-3, Schedule of Public Housing Units Under Management Contracts]

[Table III-B-4, Public Housing Tenant Characteristics]

In an era of Welfare Reform, it is critical for Resident Initiative programs to prepare residents for self-sufficiency by offering programs that provide residents with opportunities to acquire additional education, job training and skills, and career opportunities. Core components to any resident initiatives program are services, which reduce or eliminate drugs. The Department of Resident Initiatives focuses on three distinct groups of residents: families, youths, and elderly. With input from these groups, the Department of Resident Initiatives develops programs to meet the needs of residents and help them become self-sufficient.

The SLHA has also instituted measures to comply with Section 3 of the Housing and Urban Development Act of 1968. Section 3 promotes opportunities for job training, employment, and resident-owned businesses for low-income persons. In addition to providing jobs and job training opportunities for residents of public housing, SLHA also incorporated provisions of Section 3 within its solicitation documents. This requires contractors and their sub-contractors who conduct business with the SLHA to implement a Section 3 plan for hiring and training residents of public housing. The St. Louis Board of Commissioners has passed several resolutions supporting programs that accomplish resident initiative goals.

The Housing Authority works to fulfill resident initiative goals by leveraging social service resources and partnering with area agencies. This is accomplished through a competitive bid process. The overall goal of the Department of Resident Initiatives is to develop contracts with social service providers who have the expertise and resources to provide quality programs for public housing residents.

Job skills training programs in a variety of areas and industries will be offered to residents, including opportunities in construction, bank teller training, computer training, GED classes, drug counseling programs, home-ownership programs, youth entrepreneurship programs, gang intervention and prevention, and theater arts programs for young residents. College scholarships will also be offered as an integral part of the Resident Initiative Program. The Department of Resident Initiatives provides technical assistance to tenant associations, as well as financial assistance.

In order to broaden its funding base, the Department of Resident Initiatives will seek to become eligible for 501(c)(3) status. This status will allow the Department to apply for additional sources of funding from foundations and grants.

Needs and Challenges

The demand for safe, affordable housing is a continuing issue for the City of St. Louis. As of October 1999, there were 4,245 total households waiting for public housing or Section 8 units, as shown in Table 15-Housing Authority Waiting List. As of October 1999, 1,724 residents, approximately 41 percent of the total waiting list, needed two-bedroom units. Three-bedroom units are needed for 1,487 residents, approximately 35 percent of the total population. The remaining households need an efficiency unit or four plus bedrooms.

[Table III-B-5, Public Housing and Section 8 Waiting List Needs]

There are 3,252 households within Public Housing units and there are 5,011 units in the SLHA portfolio, leaving 1,759 units unoccupied. Most of these unoccupied units are either being redeveloped, rehabbed, or are slated for demolition. The Housing Authority is servicing an additional 3,600 households with Section 8 certificates and vouchers. These 3,600 households represent a population of 10,980. The population breakdown follows:

  Children between the ages of 0 and 17   5,874 
  Adults between the ages of 18 and 61    4,642
  Elderly persons 62 and older              464
  Total Section 8 Population             10,980

The St. Louis Housing Authority administers 786 Section 8 vouchers, of which 533 have been leased or issued; 4,241 Section 8 certificates, of which 2,801 have been leased or issued; and 424 moderate rehabilitation units, of which 266 have been leased or issued. Leased refers to a resident who has found a rental unit, and issued refers to a resident who has received the voucher but has not found a rental unit.

Table III-B-4 describes the household incomes by housing type for public housing tenants. The biggest segment of the total households, approximately 28 percent or 913 households, have an average income ranging from $6,000 to $6,999. There are 770 households in that income range that are in one-bedroom units, which accounts for about 46 percent of the total households living in one-bedroom units.

Compared to the same figures in Table III-B-5 from 1994, household incomes have increased. Work and training programs such as Section 3, which motivate service companies to use public housing tenants as employees have become standard requirements in Request for Proposals at the SLHA. These incentives should help maintain an upward trend in tenant income levels.

[Table III-B-6, HOUSEHOLD INCOME BY HOUSING TYPE]

Changes Since 1994

Public housing in St. Louis experienced both triumph and turmoil in the last five years. A new development in Murphy Park has been hailed as a national model for public housing. The demolition of the Darst-Webbe housing project finally began. The Cochran Gardens housing complex, wrought with maintenance problems, is slated for demolition.

Murphy Park. The development replaced the old Vaughn housing project, which had a long and troubled history. Built in the 1950s, Vaughn experienced maintenance problems in the 1970s,which forced the SLHA to relocate some families. Like the infamous Pruitt-Igoe development a few blocks away (demolished 1973-75), Vaughn was built with "skip-stop" elevators, set up to stop only at the 1st, 3rd, 7th and 10th floors. This resulted in great inconvenience and dangerous conditions in the stairwells and corridors of the large high-rise multi-family buildings. Public housing officials closed buildings in the 1970s after gangs set up house. Drug wars left 13 people dead at Vaughn in the summer of 1981. Before the demolition, residents complained of poor living conditions characterized by drug crimes and putrid odors.

The first phase of the Murphy Park town house and garden-style complex opened in June 1997. McCormack Baron was the developer of the project, which replaced the old Vaughn housing complex with lower-density, mixed-income housing. Phase II is currently under construction. When all three phases are complete, the cost of the project will be approximately $40 million, about half of the funding will come from HUD. The State of Missouri also contributed funds to supplement private financing.

The 14-acre site will have more than 400 housing unit, and is located near the intersection of Cass and 20th Streets. Roughly 55 percent of the units in the complex were set aside for low-income households who qualify for public housing. The rest of the units are occupied by more affluent households that pay market rates. All units have a burglar alarm system, a dishwasher, a washer and dryer, and a refrigerator. Residents must face tough screening procedures, including a credit check and a police-record check.

To make the Murphy Park development more attractive to middle income residents, McCormack Baron has taken the lead in renovating the nearby Jefferson Elementary School. More than $2 million in corporate funds were raised to install air conditioning and new computers for every classroom. Teachers were handpicked for the new facility, which is site-managed separately from the rest of the St. Louis Public School system.

The Murphy Park development was praised by national leaders. "The replacement of the Vaughn public housing development with new mixed-income housing is an important step in HUD's nationwide transformation of public housing in inner cities," said HUD Secretary Andrew Cuomo in 1997. In June 1999, Vice President Gore lauded developer Richard Baron at a family conference in Nashville, Tennessee.

Darst-Webbe. The revitalization plan was based on principles of "new urbanism," a philosophy that promotes pedestrian-friendly neighborhoods with services and community institutions within easy walking distance. The Darst-Webbe complex is located on two "super-block," areas surrounded by major arteries and isolated from surrounding communities. The plan called for breaking up these super-blocks, using a new street grid to weave the new mixed-use neighborhood into surrounding communities.

In March 1995, HUD awarded the SLHA $46.7 million under the HOPE VI program for the demolition of the Darst-Webbe housing project. Officials planned to use the money to replace existing high-rise structures with a low-rise mixed income development, similar to the successful Murphy Park development.

In August 1997, HUD announced that it would consider withdrawing the grant because of insufficient progress by the SLHA. HUD criticized the SLHA for failing to begin construction and for awarding contracts to subcontractors connected to public officials. HUD also expressed dissatisfaction with the SLHA's failure to deliver a neighborhood plan for the area surrounding the complex, including the old City Hospital No. 1-Malcolm Bliss site. HUD gave the SLHA 90 days to submit a new plan for the area.

Unable to complete a new plan in 90 days, the SLHA applied for two extensions. In January 1998, HUD officially notified SLHA commissioners that all extensions had been granted.

On April 15, 1998, the SLHA submitted a 600-page plan to HUD, prepared in collaboration with the St. Louis Development Corporation. The plan called for razing Darst-Webbe and portions of the neighboring Clinton-Peabody public housing complex, building a new development for the elderly, and tearing down part or all of City Hospital No. 1- Malcolm Bliss complex.

Under the plan, commercial space will be developed at the hospital site and other locations in the neighborhood. Six-hundred-and-thirty new housing units will be built in the neighborhood, of which 238 will be sold or rented at market rates, and 82 will be for moderate income. The remaining 230 units will be reserved for households that qualify for public housing. The City agreed to contribute $20 million to fund the demolition of the hospital complex and improvements throughout the area. The total development cost is estimated at $161 million.

The revitalization plan has been criticized by some tenant groups and by Housing Comes First, a nonprofit organization that represents tenant' interests. These groups believed that not enough units were reserved for low-income households. In March 1999, the Darst-Webbe Tenant Association and Housing Comes First filed a federal lawsuit, which claimed the plan was discriminatory and violated federal housing law. These advocates claimed that the plan would result in a net loss of 895 public housing units.

HUD approved the plan in July 1998, and the last residents of Darst-Webbe family and Webbe Elderly vacated the site by the end of 1998. In February 1999, demolition began at the site and has progressed throughout 1999.

Cochran Gardens and Blumeyer Village. The Omnibus Reconciliation Act of 1996, requires that "viability assessments" be performed on large housing developments which are at least 10 percent vacant. The law further requires that structures be removed within five years if the cost of renovating them exceeds the cost of housing vouchers. HUD contracted with Abt Associates, a Maryland consulting firm, to conduct the viability assessments. Cochran Gardens was built in 1952. In 1976, it became one of the first housing complexes in the nation to have tenant management. President Bush visited Cochran in 1991, praising the tenant management under the leadership of Bertha Gilkey.

Cochran Gardens residents had complained of dilapidated conditions in the complex. In September 1998, the chairman of the tenant association threatened a rent strike, citing broken elevators, inadequate lighting, and holes in walls. However, in 1998, the tenant management association at Cochran faced charges of fiscal improprieties. In January, SLHA Director Thomas Costello ordered managers at Cochran to pay back thousands of dollars in credit card purchases.

In June, the SLHA ended its management contract with the tenant association and laid-off 145 workers. Costello cited mishandling of Comprehensive Grant funds and problems with credit cards as reasons for the discontinuation of tenant management. He also contended that the development had failed to pay back nearly $900,000 to the SLHA for work on the complex. Police were called to maintain order at the public meeting held to discuss the change. The chairman of the tenant association claimed that he was tricked into signing an agreement ending tenant management.

In June 1999, Abt & Associates recommended the demolition of the Cochran Gardens high-rise buildings containing 523 apartments, since it could not pass the viability assessment. Over 25 percent of these units are currently unoccupied. The Cochran Tower elderly high-rise and Cochran Plaza townhouses passed the viability assessment and are not targeted for demolition.

In Blumeyer Village, Abt & Associates recommended demolition of the 317 family apartments. Currently all of these units are unoccupied. In addition, two buildings for the elderly containing 588 apartments are eventually to be demolished. The elderly buildings are more than 50 percent vacant today.

Management Issues. Throughout the last five years, the SLHA has been plagued with issues of mismanagement and fiscal impropriety. In June 1997, the local HUD office classified the SLHA as "troubled" based on a PHMAP score of 55. A score of 60 is considered to be a passing grade. HUD criticized the SLHA for taking an average of 426 days to fill vacancies, for the high vacancy rate, for lack of progress on modernization and for failure to collect rent from tenants. HUD placed the SLHA on probation.

Former Director Janice Washington said she was "perplexed" by HUD's assessment of SLHA performance. The SLHA appealed the probation ruling and challenged its troubled status. In August 1997, the U.S. Department of HUD denied the appeal by the SLHA.

In October 1997, HUD stripped the SLHA of its contract authority, citing SLHA improprieties in the awarding of contracts. In November 1997, Director Washington and two members of the SLHA Board of Directors resigned. In January 1998, Thomas Costello replaced Washington.

Costello headed the Authority in the 1970s after another tumultuous period. During that period, tenants participated in rent strikes formed primarily to protest conditions at Pruitt-Igoe.

In early 1998, HUD hired Quadel Consulting to perform a confirmatory review of SLHA's PHMAP score. The firm's report indicated that the score should be 38 rather than 55 for fiscal year 1996. The report criticized the SLHA for nepotism and political patronage, unqualified managers, bad contracting practices, inadequate computer systems, and maintenance problems. In March 1998, a review by HUD gave the SLHA a grade of 18 for the Fiscal Year ending in September 1997.

In February 1999, Mr. Costello announced that 50 SLHA workers would be terminated because of poor performance and a $1.7 million shortfall. By March, the SLHA had regained contract authority for small purchases. April saw the successful submission of a new plan for Darst-Webbe. By June, Costello had trimmed more than one-fifth of his staff and announced plans to further improve efficiency by privatizing some management functions in public housing.

In June 1999, Thomas Costello became part-time deputy director for privatization of property management, and Cheryl Lovell, director of redevelopment for the SLHA, became the new Executive Director. Ms. Lovell was formerly executive director of the East St. Louis Housing Authority, and made progress in changing that agency's previously troubled status.

The Next Five Years

In the next five years, some trends in public housing will bear watching. First, a consensus exists that high-rise complexes are passe. As a result, demolition will likely continue. HUD rules requiring the replacement of obsolete public housing units with vouchers will expedite this trend. However, it can be difficult for households eligible for housing vouchers to find landlords willing to accept Section 8.

The ability of low-income households to find landlords willing to accept vouchers will be a key issue. Congress could remedy this problem by reducing the regulations imposed on Section 8 landlords or by making Section 8 payments take the form of rent reimbursements paid directly to tenants, a move which would eliminate the need for landlords to opt for participation in the program. Second, the new philosophy of public housing holds that mixed-income communities are best.

The success of this strategy will hinge on many factors, including the ability of developers to attract middle-income households who are willing to live in close proximity to low-income households and the management of mixed-income developments. In addition, this strategy will face criticism from activists who argue that creating more homes for middle-income households will reserve too few homes for the most disadvantaged.

Within the next five years, the two remaining high-rises at Vaughn are scheduled for demolition, according to the SLHA Comprehensive Grant Plan, in conjunction with the reconfiguration of the adjacent Carr Square Village public housing complex and the recent reinvestment in the O'Fallon Place mixed-income apartment complex, also nearby. This redevelopment may help build a stronger Carr Square neighborhood.

Over the next five years, the HOPE VI funding for the Darst-Webbe near Southside redevelopment will transform this section of the near Southside. This will create synergy with the Comprehensive Grant revitalization of both the LaSalle Park Village apartments and the Clinton-Peabody apartments, the redevelopment of the former City Hospital No. 1 and Malcolm Bliss Mental Health Center complex, and the redevelopment just south of Darst-Webbe. This redevelopment activity will reconnect the near Southside neighborhoods of Lafayette Square, LaSalle Park, and Soulard with each other and with the former Darst-Webbe area.

Also, the June 1999 plan by Abt Associates calls for several other public housing developments to be demolished, some to be reconfigured, and others to be rehabilitated. Table 17 summarizes changes in the public housing stock anticipated in the next five-to-eight years. Cochran Gardens, Blumeyer Village, Warwood Townhouses, Warwood Elderly, Euclid Plaza and Townhouses, and Mark Twain are all developments slated for eventual demolition, as well as Vaughn and Darst-Webbe.

Recommendations

a) Implement the SLHA Comprehensive Grant strategic plan.

    Although the plan has many critics, this strategy is SLHA's preferred method for revitalizing of the deteriorating public housing stock in the City of St. Louis. Congressional requirements under Section 202 necessitate most of the demolition involved. Comprehensive Grant plan recommendations may be implemented as funding becomes available to provide maximum support for resident relocation and service needs, as well as accessible and adaptable housing units.

b) Contract out for most property management and unit inspection services.

    The SLHA intends to contract with private contractors based upon the most effective contract for the SLHA maintenance and management needs. Contract inspectors can be readily used to perform SLHA Section 8 and public housing unit pre-occupancy and annual inspections. A strategy that is proving effective is hiring residents as public housing inspectors.

c) Consider designating at least one remaining elderly building "elderly only."

    This management improvement is needed to retain elderly residents in SLHA elderly buildings where the overall vacancy rates are often very high. While disabled housing is certainly a pressing need, many elderly are uncomfortable living in close quarters with the young disabled. Locations such as Parkview and Kingsbury Terrace should be considered for designation as elderly only buildings.

d) Provide more three or more bedroom affordable housing units.

    Many public housing complexes, including Cochran Gardens and Blumeyer Village, may be demolished in part or in whole during the next five years. Since many of these public housing units may not be replaced by on-site affordable housing units, more scattered-site affordable housing for large families must be located. The ultimate goal is the dispersal of the low- and moderate-income population throughout the City, thereby facilitating better economic and racial integration of neighborhoods.

e) Provide more tenant-based rental vouchers and rental certificates.

    While project-based Section 8 and public housing are still needed for some groups, the objective of dispersal of the low-income population requires more vouchers and certificates be made available. The opposite side of the problem, though, is the lack of landlords willing to use the vouchers. Thus, the supply of voucher-eligible housing units also needs to be increased. This can be accomplished by aggressively marketing the program to landlords and addressing their concerns.

f) Embrace the principles of Section 504.

    Ensure that all public housing developments meet the requirements of Section 504, which will provide units for those with disabilities.

g) Coordinate City development efforts with public housing reconfiguration efforts.

    SLHA planned redevelopment of such sites as Blumeyer Village, Warwood, McMillan Manor, and Cochran Gardens may require coordination with neighborhood organizations, SLDC, CDA, and the Planning & Urban Design Agency to ensure compliance with neighborhood plans. Also, funding for concentrated public improvements may be necessary.

Resources

The era of concentrating the poor in high-rise public housing can end. Integration and diversity can be realized more fully. Public housing reconfiguration and mixing of the low- and moderate-income population throughout the City with middle-income people is important to creating a community where work and education are valuable. Over the next five years, proposed investments of CDBG and HOME funds and Comprehensive Grant public housing funds will be used to foster better neighborhoods in the vicinity of public housing development redesign and rehabilitation sites, and support public housing redesign as necessary. Hopefully, this may be supplemented by HOPE VI funds for the Carr Square site, the Vaughn/Murphy Park site, Cochran Gardens site, and the Blumeyer Village site.

LEAD PAINTTop of Page

Childhood lead poisoning (CLP) is a preventable condition that affects young children with potential serious long-term consequences. It is a direct result of the ingestion of particulate lead either as house dust, paint chips, or contaminated soil. The St. Louis City Health Department has operated a Childhood Lead Poisoning Program for over 25 years. The current program is multidivisional, involving the Public Health Laboratory, Environmental Health Section, Maternal Child and Family Health Program, and the Childhood Lead Poisoning Prevention Program.

[Table III-B-8, LEAD INSPECTIONS AND REMEDIATIONS, ST. LOUIS, 1994-1998]

Current Services

Mayor Clarence Harmon of St. Louis has made preventing lead poisoning a priority of his administration. During the National Lead Poisoning Prevention Week, the Mayor helped get the word out about the dangers of lead poisoning and about ways parents, property owners, and others can help protect St. Louis' children from the dangers of lead. Mayor Harmon has said the top priority of his plan is to prevent lead poisoning in children.

Mayor Harmon has set up a program of forgivable loans to pay for lead-safe repairs to homes. This program is Executive Order No. 30, which allocates $1 million of FY 2000 Community Development Block Grant (CDBG) funding to create a Special Lead Home Repair Fund under the protection of the Community Development Administration.

Also, the Mayor has added lead paint to the list of items inspectors will check when there is a change of ownership or occupancy in the two-thirds of the City covered by housing conservation districts. Later in the year, the Mayor plans to ask the Board of Alderman to extend the districts to include the entire St. Louis City area. Mayor Harmon's initiatives will greatly expand this city's ability to detect and remediate lead hazards and prevent lead poisoning in our children.

The St. Louis Board of Aldermen has already responded enthusiastically to the call for a St. Louis where children can grow up safe from lead poisoning. The Board has passed three bills that will help in that effort. Under a new law advanced by the mayor, building fees will increase $2 for each $1,000 of a project's cost, raising about $500,000 annually to pay for making repairs in homes with lead hazards. The other new laws will strengthen the existing lead law and also establish a special lead fund within the Health Department. The Health Department will then be able to place money raised through Medicaid reimbursements and donations into a special fund to pay for lead renovations and for providing temporary housing to families while homes are undergoing repairs.

Building Division inspectors are now also learning to do basic screening for potential lead hazards during their inspections. Building inspectors who suspect a lead hazard will then contact the Health Department for a formal inspection to determine the presence of a lead hazard.

The Childhood Lead Poisoning Program provides service to the community in the following areas:

    Case management: A full-time nurse and social worker coordinate care delivery with community physicians and the Medicaid Managed Care Plans. This case management includes tracking of children with elevated blood-lead levels, follow-up on the remediation of their homes, arranging hospitalization, temporary housing referrals, and family education. Full case management is provided to children not enrolled in a Medicaid Managed Care Plan.

    Clinical: Outpatient treatment and nutritional counseling is provided to children with a referral from their primary care practitioner. The Lead Program Physician further assists community providers with treatment consultation.

    Education: Education is provided to families by a full-time Public Health Educator, a Nurse Case Manager, four Community Health Workers, seven Lead Inspectors, and a subcontract with Catholic Community Services with funding from HUD. Presentations are given to community physicians and other groups, including Managed Care Organizations, child advocates, realtors, and lawyers.

    Epidemiology: A childhood lead poisoning surveillance system is maintained from which program evaluation and statistical reports are produced and shared with the community. In 1998, 24.8 percent of children tested were found to have elevated lead levels.

    Investigation: Seven full-time lead investigators perform residential inspections when a child is identified with an elevated blood lead level. A new pilot program begun in September 1999 seeks to expand investigations in Housing Conservation Districts disproportionately affected by childhood lead poisoning. In 1998, there were 1,227 initial inspections and 4,467 reinspections completed. Approximately 83 percent of the initial inspections identified lead hazards.

    Remediation: The Environmental Health Section staffs two remediation crews that perform repair work for income-qualified homeowners and those referred under the HUD grant. In 1998, 55 remediations were completed.

    Laboratory: The Public Health Laboratory (PHL) performs blood lead analyses for the Lead Program and community providers. In 1999, there were 16,160 blood lead tests performed by the PHL, representing nearly 84 percent of all lead tests reported to the Health Department.

    Outreach: Four Community Outreach Workers assist with case management, education, and tracking of lead poisoned children.

    Screening: Walk-in lead testing is available at the Health Department five days a week. Special screening events are conducted at community venues such as health fairs, day care centers, community centers, and local businesses. In 1998, 40 percent of all children under age 6 years and 50 percent of children ages 1 to 3 years were screened and reported to the St. Louis City Health Department. The following chart is based on all surveillance reports and United States census population estimates for ages 0 to 6.

[Table III-B-9, LEAD SCREENING RATES, ST. LOUIS CITY, 1993-1998]

The St. Louis Realtors Association currently follows all guidelines put forth by Title X of the Federal Government. Realtors must present to both the buyer and seller of a home forms disclosing information relating to the possible presence of lead-based paint or lead-based paint hazards. Also, a booklet entitled Protect Your Family from Lead in Your Home must be given to the buyer. This booklet is a product of the United States Consumer Product Safety Commission and the Environmental Protection Agency (EPA). Failure to use these forms and the booklet results in fines. In 1998, three cases of failure to use these materials resulted in fines of $46,000.

Needs and Challenges

Lead is an element with no nutritive value. Industrialization has resulted in widespread contamination of our environment. After entry, most lead finds its way into the bones of children. It can remain there for years, providing an internal reservoir for continued toxic effects. The focus of the Childhood Lead Poisoning Prevention Program is to prevent childhood exposure to lead. Present efforts, however, rely on screening children to determine if they are exposed to lead. Since 1993, there have been over 4,000 children who have had lead levels of 20 mcg/dl or more, twice the current level of concern.

Over 1,500 of these children continued to have a lead level greater than 20 mcg/dl for two to seven years. Primary prevention of CLP requires that residences, not children, be tested for lead. This approach also requires that sufficient funding be available to mediate hazardous residences. The challenge is to develop a systematic plan to repair or replace lead-contaminated housing with lead-safe, affordable residences. In addition to an estimated $1 billion in repair costs (100,000 units at $10,000 per unit), St. Louis needs to build the community capacity to perform certified remediations and the political courage to prioritize neighborhoods in accordance with documented need.

The St. Louis City Health Department has implemented several program changes and is planning to implement others in the future. The Environmental section has begun routine clearance testing after units have been remediated. Owners who do not meet EPA standards must do so prior to receiving a compliance certification. A plan to involve specific inspectors to perform screening inspections of rental property prior to children moving into the units would involve Section 8 and other rental units. Changes to the Housing Conservation District Ordinance have added visual surveys for potential lead hazards that now must be followed. While these changes will place a large burden on staff, they are necessary steps in the direction of primary prevention.

Secondary prevention, through identification of children exposed to lead, will remain a program component until sufficient lead-safe housing exists and CLP rates significantly decline. Finding young children at risk has been a challenge. Community education, as well as mass media messages, will alert the public to present risks should they reside in older housing. Also, another way to access children at risk began in 1999 with the screening of children at WIC centers. For secondary prevention to be effective, however, both timely remediation and temporary housing are needed.

Recommendations

a) Incorporate a lead-safe policy and protocol for all activities performed under this consolidated plan.

    All home repair programs should include lead assessments and remediations, with the goal of increasing the quantity and quality of lead-safe housing in St. Louis City.

b) Develop a renewable funding source to address lead-based paint in private and rental units in St. Louis.

    A combination of private business, local, and Federal governmental funds are needed to address the estimated 100,000-plus units containing lead-based paint in St. Louis City.

c) Strictly enforce Federal legislation designed to inform prospective residents (leasees and purchasers) of the hazards of lead-based paint so they can make informed housing decisions.

    Conduct seminars and workshops in St. Louis to educate renters, landlords, building inspectors, and all others in the housing market.

d) Complete the Health Department's Lead Strategic Planning process begun in June 1999 and enlist governmental and community support in its implementation.

    This City is devoting more effort to the elimination of lead paint than it has in prior years. The Lead Paint Strategic Plan has helped strengthen the City's commitment.

e) Increase the number of licensed inspectors, supervisors, and workers, as State law requires.

    In order to do so, it might be necessary to expand the outreach-licensing program. The City Health Department has pointed out that many needs have not been met because of the lack of resources. To deliver sufficient services to the community will require additional financial support.

Resources

The Health Department currently receives funding for its Lead Program from City revenue, the Centers for Disease Control and Prevention, and the U. S. Department of Housing and Urban Development. City revenue is the only guaranteed funding source and accounts for 43 percent of total funding.

The $1 million Mayor Harmon has set aside for the Special Lead Home Repair Fund will come from FY 2000 CDBG funds and continue annually. The St. Louis Community Development Agency will distribute these funds. In addition, a $2 per $1,000 fee will be added to each building permit. Money collected from this fee will also benefit the Special Lead Home Repair Fund and be under the auspices of the City Comptroller. This new fee is expected to produce $500,000 in additional funds.

FAIR HOUSINGTop of Page

Title VIII of the Civil Rights Act of 1964 makes it unlawful to discriminate against anyone in respect to the selling, renting, or financing of housing on the basis of race, color, religion, sex or national origin. The 1988 Fair Housing Amendments Act extended the protection to families with children and those who are disabled.

Current Services

In St. Louis there are four principal organizations that work to defeat housing discrimination. In turn, they rely on referrals and assistance from a large network of groups.

U. S. Department of Housing and Urban Development (HUD)-Fair Housing and Equal Opportunity Division. The Fair Housing and Equal Opportunity Division of HUD advocates and enforces fair housing legislation. The local or regional office typically refers complaints to Equal Housing Opportunity Council (EHOC) or Missouri State Commission of Human Rights (MSCHR) for an initial investigation. Based upon these findings, HUD conducts a follow-up investigation, and if mediation is unsuccessful, or uncalled for, it pursues resolution through the administrative law mechanism or the Federal courts. HUD may initiate its own investigations and legal actions. It is also committed to education and outreach.

Missouri State Commission on Human Rights. The MSCHR advocates and enforces state laws that oppose discrimination in employment, private accommodations, and housing. The Commission has the power to investigate discrimination complaints and to seek civil suits on behalf of its clients. Unlike HUD, state laws that are slightly different bind the Commission. For example, unlike HUD, the Commission cannot sue a landlord without a complaint.

Civil Rights Enforcement Agency. CREA is the City of St. Louis office concerned with promoting and enforcing the Civil Rights Act of 1964 and the Fair Housing Act of 1988. With a staff of 12, this office is concerned with education, outreach, mediation, and enforcement of the law with regard to employment, housing, public accommodations, and bias-motivated crimes. Principally because the City Ordinance (62710) does not make reference to discrimination on basis of gender, CREA has not been determined to be "substantially equivalent" by HUD.

The city ordinance, however, does speak to alleged discrimination for somewhat broader conditions than the state and federal laws. Marital status, sexual orientation, age, and legal source of income, as well as race, color, religion, disability, and familial status, are all declared illegal reasons for discrimination. CREA has signed agreement with the state that makes referrals to it. There is a performance-based agreement (e.g., $500 for each completed case) relating to EEOC cases.

Metropolitan St. Louis Equal Housing Opportunity Council. EHOC is a nonprofit organization that seeks to ensure equal access to housing for all people through education, counseling, investigation, and enforcement. The organization investigates complaints received directly, referred from HUD or the state, and initiates investigations on its own. More than 150 cases were investigated during 1998, two-thirds of which related to allege rental discrimination. Financial support comes from private donations, grants, and contracts with local governments, including the City of St. Louis and St. Louis County.

Beyond these four organizations, there are many others that engage in efforts to promote fair housing, either in general or on behalf of specific clients. They include the Saint Louis University Law School Housing Clinic, Legal Aid of Eastern Missouri, FOCUS St. Louis, NAACP, Paraquad, the Housing Resource Center, and more. Together, these are members of St. Louis Fair Housing Collaborative that meets several times each year.

Needs and Challenges

Fair housing in St. Louis, as with the rest of the nation, is a familiar story. Discrimination for many is still a reality. Some people still don't fully understand the law, especially aspects relating to familial status and the disabled. A "carrot and stick" approach is required to make ongoing progress.

There are a variety of specific issues. New immigrants, for example, encounter problems, in some cases having to do with the meeting of different cultures, and in some cases having to with the appearance of selective enforcement of ordinance requirements. Redlining by certain insurance and home mortgage institutions remains a concern, though the line between legitimate business policy and discriminatory policy can be difficult to determine. An anti-city bias is still a reality on the part of certain realtors and corporate relocation specialists. While this may be unfortunate, it is not illegal.

A special concern is that, in absence of "substantial equivalency" CREA is not able to investigate housing complaints by itself, instead referring them all to EHOC. One result of this situation is that the City can not qualify for fair housing financial support from HUD. Another special concern has to do with staff shortages at HUD, which result in frustratingly long time periods before specific complaints can get resolved.

Recommendations

a) Pursue "substantial equivalency" for the City of St. Louis.

    A way needs to be found to define, introduce, and pass an ordinance that preserves the city's policies while bringing the law into compliance with the Federal government. This equivalency will allow CREA to fulfill its responsibilities and to qualify for Federal support.

b) Continue educational and awareness programs.

    More needs to be done to reach both specific groups of people and citizens at large. Reduced rates by certain newspapers for fair housing ads are illustrative of what is necessary. Awareness should be encouraged by using many approaches: expanded community outreach, radio spots, the Internet, PSAs, billboards, and more.

c) Continue to support efforts to identify and refer affordable and accessible housing.

    The City of St. Louis, the City of Florissant, and St. Louis County have been supporting the development of an accessible clearinghouse that will inform citizens throughout the region about the location of appropriate housing for people with disabilities. Support is also provided for the Housing Resource Center, which makes referrals in actual or pending homeless situations. These efforts need to continue.

d) Promote and celebrate racial harmony.

    In the last few years, the city has inaugurated a Race Relations Day in order to celebrate the diversity and multiculturalism of St. Louis. Similarly, Mayor Harmon has initiated racial dialog groups as this city's contribution to the One America in the 21st Century initiative. Other initiatives include the Bridges Across Racial Polarization program, as supported by FOCUS St. Louis and World of Difference. Collectively, we need to do more to promote racial harmony across St. Louis.

e) Expand multilingual programs.

    Lack of sophistication, fear, language, cultural differences, and related factors all place recent immigrants at high risk of discrimination. All the organizations engaged in fair housing work need to do more to reach out to the various immigrant communities in St. Louis.

f) Expand "testing" as necessary.

    Testing is a key mechanism for identifying discriminatory behavior. It needs to be continued as one of the best means for creating a solid case when complaints have been alleged.

g) Confront anti-city/inner suburb steering.

    There is some reason to believe that anti-city attitudes, at least on the part of some, have to do with anti-black and anti-poor feelings. More needs to be done throughout the region to convince people that these thoughts are wrong.

h) Examine insurance and lending patterns.

    House insurance and mortgages are critical to revival of the city. Continuing efforts must be made to see that the insurance and financial industry are not only fair, but positive partners in the city's rebirth.

i) Improve analytical skills using Geographic Information System.

    Each of the groups that conducts fair housing analyses will benefit with the adoption of geographic information system skills that allow the results of their research to be clearly mapped. The City should continue to help them develop that capability.

j) Monitor and revise the Analysis of Impediments to Fair Housing.

    The City is currently engaged in carrying out the action plans called for in the Analysis of Impediments to Fair Housing, as prepared several years ago in conjunction with St. Louis County. During the next five years it will be important to revisit the report in order to determine the extent of progress and the need for an update to the analysis. This revisit would best happen after the results of the decennial census.

k) Monitor emergency shelters for accessibility.

    The disabled homeless suffer a particular hardship. Continuing efforts should be made to increase the ability of shelter staff and facilities to accommodate such individuals.

l) Explore ways to accelerate internal HUD processing.

    When a complaint drags on year after year without resolution, victims become even more frustrated and offenders don't realize that there are consequences to their wrongdoing. Ways should be explored to reduce the time necessary to process a complaint within HUD. This might be accomplished with more staff, more work contracted out, or faster procedures.

m) Continue the Fair Housing Collaborative.

    Those engaged in the pursuit of fair housing need to exchange information on both an informal and formal basis, which can be accomplished through routine breakfast or luncheon gatherings as well as an annual conference.

Resources

The City currently has small contracts with EHOC and Paraquad to help carry out its Impediment Analysis action plans. EHOC has been successful in putting together an annual budget of around $350,000, though most of it is dependent upon federal funds. Perhaps the greatest need is for funds within HUD that would help expedite the complaint resolution process.

TENANT - LANDLORD RELATIONSTop of Page

Disputes between tenants and landlords are a common phenomenon in a city with a high renter population. These disputes often arise out of a lack of accurate information regarding the roles and responsibilities in a landlord/tenant relationship. This lack of knowledge can lead to misunderstandings, evictions, and law suits. Due to the need for education and mediation, area counseling agencies play an integral role in improving tenant-landlord relationships.

Current Services

A mix of non-profit and government agencies provide counseling services. Among the participants in St. Louis are:

  • Neighborhood Stabilization Team (NST). The Neighborhood Stabilization Office addresses the need for improved tenant-landlord relations by providing information about standards, procedures, and expectations for landlords. The NST works actively with landlords and tenants throughout the City. Individual Neighborhood Stabilization Officers (NSOs) interact frequently with problem landlords and tenants, as well as work to strengthen and improve the skills of good rental property owners. NSO's have worked toward the formation of several landlord organizations, such as the South St. Louis Landlords' Association, Carondelet-Holly Hills Landlords' Association, and Southwest St. Louis Landlords' Association. These associations provide a forum to discuss and learn about the latest issues impacting rental property management.

    The main NST office has a Community Development Specialist, who develops programs and literature for landlords. Landlord packets are available to any landlord. These packets include sample leases, eviction procedure information, property maintenance checklists, information on lead-based paint laws, crime prevention booklets, tenant-landlord legal handbooks, public nuisance ordinance guidelines, and other pertinent information. The Community Development Specialist also organizes a yearly landlord conference held at St. Louis Community College-Forest Park. Expert speakers provide information on all aspects of rental property management and ownership. The NST also hosts sessions to acquaint tenants with their rights and responsibilities as tenants. Neighborhood Stabilization Officers drive through their respective assigned neighborhoods on a regular basis, noting problems with City service delivery and issues which diminish the quality of neighborhood life such as drug activity and nuisance behavior.

  • Public Nuisance Ordinance (No. 63836). This ordinance gives the appropriate City officials the authority to impose additional sanctions and penalties for repeated non-drug-related nuisance behavior related to residential or commercial property. Penalties imposed for non-compliance will be less than $300 and/or ninety (90) days in jail or not less than fifty (50) hours of community service. The NSO serves as record keeper and initial point of contact.
  • Drug Nuisance Ordinance (No. 62765). This ordinance specifies that if narcotics are found twice on the property within a period of three years, it can be deemed a public nuisance. Ultimately, a unit where criminal activity occurred or the entire building (single family dwelling can be boarded by the City of St. Louis and the use of the income from the unit or building is lost for a period of one year. The NSO serves as record keeper and the initial point of contact for a respective property owner who has received a first incident drug letter. They provide information such as tenant screening guidelines to prevent a second incident from occurring.

    A Problem Properties Coordinator with the NST works to alleviate property problems that surface through these two ordinances. This process may lead to public hearings and possible closure of the properties for up to one year. In addition, referrals are made to the Neighborhood Nuisance Property Prevention Program, which connects families engaging in continued disruptive behavior with social service providers.

  • Fair Housing and Equal Opportunity Division, HUD. This U.S. Department of Housing and Urban Development (HUD) agency advocates and enforces fair housing practices. Services include counseling tenants and landlords of their rights under the law and providing mediation and education services. The agency holds several seminars each year that address rental property issues.
  • Civil Rights Enforcement Agency (CREA). CREA, a City of St. Louis agency, advocates and enforces all state and federal civil rights legislation, including that which pertains to housing. Although the Agency deals with all types of housing issues, tenant-landlord complaints are the bulk of its caseload. Services include counseling, dispute mediation, and a referral service for tenants and landlords. The Agency handles numerous calls dealing with tenant-landlord issues. CREA acts as a mediator, and tries to resolve disputes between landlords and tenants. CREA will try to resolve the conflict so that it does not result in an eviction. In cases that cannot be resolved, the Agency will refer clients to legal agencies. Educating both parties of their rights and duties under the law, and in accordance with their rental contract, is another Agency service.
  • The American Civil Liberties Union of Eastern Missouri (ACLU-EM). The ACLU-EM provides legal services in cases involving free speech, equal protection, and fair practices under the law. The ACLU-EM asserts these rights through court action, when necessary. The ACLU-EM provides counseling and mediation services to tenants and landlords, and tries to resolve the problem out of court. Clients are also referred to other tenant-landlord counseling providers in cases where legal action is not necessary. Providing literature and seminars educating clients on the legal obligations of renters and landlords is another ACLU-EM function.
  • DeSales Community Housing Corporation. The DeSales Community Housing Cooperation is the operating agency for the first and still the largest Management Assistance Program (MAP) funded by the Community Development Administration. The program provides rental property owners in Fox Park, McKinley Heights, Benton Park West, and Tower Grove East with a property manager, free of charge. More than one hundred housing units are now served, particularly those occupied by low-income families. The program is designed to enhance living conditions for tenants. It requires participating landlords to make necessary repairs to obtain compliance with all property codes, provides forgivable loans for improvements and repairs, and performs follow-up visits to insure that the repairs are made.
  • Forest Park Southeast Housing Corporation. The Forest Park Southeast Housing Corporation, in collaboration with the Washington University Medical Center Community Revitalization Program, has also established a Management Assistance Program, serving the Forest Park Southeast neighborhood.
  • Tower Grove South Management Corporation. Tower Grove South Management Corporation is dedicated to providing management services for rental property in the Tower Grove South neighborhood. It is also an officially recognized Management Assistance Program. The program targets multi-family rental properties and offers one-time forgivable loans to assist owners in improving their properties. The TGSMC currently serves about 50 rental housing units.
  • Legal Services of Eastern Missouri. This organization provides legal assistance and advocacy to assists clients in obtaining government entitlements. It also provides free legal services in civil cases, such as housing, to income eligible clients. Tenant-landlord services of the Agency include counseling and mediation. The Agency tries to resolve conflicts between the parties involved. Seminars on legal responsibilities and rights are provided.
  • Metropolitan St. Louis Equal Housing Opportunity Council. EHOC is a non-profit organization that seeks to ensure equal access to housing for all people through education, counseling, investigation, and enforcement. The organization investigates complaints received directly, referred from HUD or the state, and initiates investigations on its own. More than 150 cases were investigated during 1998, two-thirds of which related to alleged rental discrimination. Financial support comes from private donations, grants and contracts with local governments including the City of St. Louis and St. Louis County.

Needs and Challenges

Education and law enforcement are necessary for dispute resolution in this arena. Often tenants and landlords do not fully understand their obligations or rights under the law or as outlined in their rental contracts. Many landlords do not know proper eviction procedures, or what housing code compliance entails. Sometimes landlords deliberately deceive tenants. Tenants do not know when they are breaching their contract by having too many occupants, or are being disruptive. Educational workshops are necessary to inform these groups.

Training sessions for landlords and programs, such as the Desales Community Housing Corporation Management Assistance and Repair Program and the Tower Grove South and Forest Park Southeast programs are designed to insure that landlords understand and fulfill their obligations to tenants. Tenant training sessions and placement services will help responsible tenants find housing with compatible landlords. This all leads to better relationships between renters, property owners, and the neighborhood at-large. Given the high proportion of rental property in City neighborhoods, both multi-family and single-family dwellings, it is very important these issues be resolved so these dwelling units remain habitable and marketable.

Recommendations

Tenant-landlord problems are due in large part to a lack of knowledge. Most tenants and landlords do no know their rights and duties under the law or as outlined in their leases. Although there are counseling agencies that provide tenant-landlord mediation, many of these agencies are busy with other duties. The most important recommendations for tenant-landlord counseling would address these issues.

a) Evaluate landlord education and technical assistance programs.

    The three existing Management Assistance Programs are important property management assistance efforts currently receiving CDA support. These initiatives need to be evaluated, and based upon the findings, expanded over the next five years to other neighborhoods with a significant number of medium-sized, privately owned rental properties. The City also must continue working closely with landlord associations. NSO's should spearhead the formation of new landlord associations in areas with large numbers of rental properties.

b) Increase the number of services that educate and assist tenants.

    Expanding counseling programs that are over subscribed will allow more tenants to understand their legal rights and duties as renters. Mediation and financial services provided by these agencies allow tenants to deal responsibly with landlords and fulfill their contractual obligations. The Community Information Network should be used to expand the amount of Internet based information related to tenant-landlord issues.

c) Encourage neighborhood efforts to address problems associated with neglected rental properties.

    In the Shaw neighborhood, local attorneys and neighborhood residents have joined together to bring lawsuits against owners of poorly maintained rental housing. This is made possible under the nuisance property law. The City needs to encourage these efforts. The City Counselor's Office should consider establishing a "Nuisance Property Division" or some other mechanism to represent City neighborhood residents who decide to file suit against absentee landlords.

d) Focus on mid-sized landlords.

    Large firms that own multiple properties generally have adequate resources and paid staff members to manage their properties. Meanwhile, an owner-occupant landlord usually can provide adequate services with a minimal amount of training, because the tenant and landlord have frequent opportunities for interaction. However, the bulk of the problems in tenant-landlord relations result from absentee landlords who own several "investment" properties and are trying to maintain them as a sideline to their regular occupations. These properties should be a special focus of landlord assistance efforts, since they are quite common throughout the City.

e) Develop programs for immigrant and refugee tenants.

    Language and cultural barriers can be problematic for tenants who are recent immigrants from foreign countries. For example, Bosnian immigrants' construction of smokehouses in the backyards of their homes has created conflict with existing zoning and building codes. Further, some immigrant households need to double up because of limited financial resources. There are certainly opportunities for unscrupulous landlords to defraud immigrant families. The City needs to work closely with the International Institute of Greater St. Louis and other immigrant and refugee relocation service agencies to ensure immigrants are able to express their own cultures while staying within the limits of local ordinances. The City must protect new St. Louisans from fraud.

f) Improve court sponsored mediation services.

    Having a defined mediation system in the courts may alleviate the frequency of tenant-landlord cases that go to court. Cases can be resolved without punitive action and court mandated eviction.

Resources

Tenant-landlord counseling agencies are funded by a number of sources. The Civil Rights Enforcement Agency has an annual budget of about $450,000; approximately 30 percent of its funding is allocated to tenant-landlord counseling and mediation. The DeSales Management Assistance and Repair Program receives about $90,000 per year in CDBG funding, and the Tower Grove South Management Program $140,000 per year. The Forest Park Southeast program is just getting underway, but receives a small portion of the Housing Corporation's $30,000 CDBG allocation. Several providers are CDBG funded; however, general revenue and private donations are prominent sources of funding as well, especially with regard to the Neighborhood Stabilization Team, Civil Rights Enforcement Agency, and the Metropolitan St. Louis Equal Housing Opportunity Council.

Previous Section Table of Contents Top of Page Next Section