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Executive Summary ES-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) 1. Introduction The City of Hot Springs has prepared the 2014-2018 Consolidated Plan as a requirement to receive Federal Housing & Urban Development (HUD) Community Development Block Grant (CDBG) program funds. It is a strategic plan addressing low- and moderate-income housing, community and economic development needs. The Consolidated Plan provides a five-year road map that explains how and why Federal funding for housing, community and economic development activities is expected to be used. What is the Consolidated Plan? The Consolidated Plan is a planning document that identifies the decent, affordable housing, community, and economic development short- and long-term needs, goals, priorities, and objectives. It also outlines strategies and timetables for achieving priorities and objectives. It is a requirement of the U.S. Department of Housing and Urban Development (HUD) and must be developed by entitlement communities in order to receive CDBG program funding. Consolidated Plan HOT SPRINGS 1 OMB Control No: 2506-0117 (exp. 07/31/2015) The Consolidated Plan asks each community to state how it plans to achieve local objectives in accordance with the statutory goals of all Federally-funded community development programs: to provide decent housing, a suitable living environment and to expand economic opportunities for low- and moderate-income individuals and families. The Consolidated Plan serves four (4) primary functions. First, it is a planning document for the community, built upon public participation and input. Second, it serves as the application for housing and community development funds through HUD formula grant programs, of which the City of Hot Springs is eligible to directly receive Community Development Block Grant (CDBG) program funds. Third, the Consolidated Plan defines local housing and community development priorities. Fourth, the Consolidated Plan is a five-year strategy that the City will follow each fiscal year to implement HUD programs locally. The Consolidated Plan describes the lead agency responsible for overseeing the development and implementation of the plan and agencies, groups and organizations that participate in the process. It also includes a summary of the citizen participation process, public comments, and efforts made to broaden public participation in preparing the plan. Purpose of the Consolidated Plan. The City of Hot Springs 2014-2018 Consolidated Plan identifies needs for housing, homelessness, community development and economic development. It also presents strategies to address those needs. This Consolidated Plan covers the period from January 2014 through December 2018. The Consolidated Plan is built through a comprehensive research, consultation and citizen participation process. The City Planning & Development Department is the lead agency for the Consolidated Plan. The Planning & Development Department is tasked with developing and carrying out the plan. The Planning & Development Department strives to deliver efficient, effective, and caring delivery of services to the community which is serves. How is the Consolidated Plan implemented? The City will produce five (5) Annual Action Plans under the City of Hot Springs Consolidated Plan between 2014-2018. Each Annual Action Plan describes how the City will implement projects and invest its CDBG funds during a given program year. 2. Summary of the objectives and outcomes identified in the Plan Needs Assessment Overview The City of Hot Springs has identified the following priorities for the 2014-2018 Consolidated Plan: 1. Create suitable living environments and promote decent, affordable housing initiatives 2. Encourage business / job growth through targeted infrastructure improvements 3. Provide assistance, support and resources to promote fair housing, expand neighborhood revitalization, encourage business/job growth, and strengthen Continuum of Care service efforts Consolidated Plan HOT SPRINGS 2 OMB Control No: 2506-0117 (exp. 07/31/2015) Priority 1: Create suitable living environments and promote decent, affordable housing initiatives An effort must be made to reverse blight trends in urban, aging, historic neighborhoods where population has declined, but affordable housing remains available, and safety, livability and accessibility can be improved for low- to moderate-income and special-needs residents. By decreasing blight through the reduction of unsightly property and development of empty lots, while improving public infrastructure such as sidewalks, parks, drainage and green space low- to moderate-income neighborhoods will be reinvigorated, livable and reinvested. City resources will be leveraged to minimize the CDBG funds needed to plan, assess, estimate, manage, implement and maintain projects. Private and public investments will be stimulated to further CDBG funding impacts. Priority 2: Encourage Business / Job Growth through targeted infrastructure improvements The U.S. Chamber of Commerce reports 86% of new jobs in the current economy are created by new or expanding small to medium sized businesses already present in the local community. The Greater Hot Springs Chamber of Commerce Strategic Economic Development Plan concludes that a serious risk to economic development is the continued deterioration of vacant, underutilized, historic, commercial structures in core, high traffic commercial corridors, which directly involve two (2) low- to moderate- income block groups (Downtown and Park Avenue), and an additional four (4) adjacent, mixed-use commercial/residential, arterial low- to moderate-income neighborhoods (Gateway, Whittington, greater Hobson and Albert Pike). The City of Hot Springs and State of Arkansas code requires adequate fire protection, municipal water and sewer capacity in order to obtain certificate of occupancy. These municipal infrastructure requirements to improve municipal water and sewer capacity to meet State and Local code present an undue cost burden on small and medium businesses already investing in existing building improvements and historic preservation. Priority 3: Provide assistance, support and resources to promote fair housing, expand neighborhood revitalization, encourage business/job growth, and strengthen Continuum of Care service efforts. To ensure the likelihood of success of CDBG funded fair housing, neighborhood revitalization and economic development infrastructure improvements, and strengthen services provided to the most at- risk by the Continuum of Care, City resources are committed to assisting in assessing needs, facilitating collaboration, inspiring leadership and planning skills, and providing support to develop shared visions, achievable plans, and coordination amongst agencies, groups and organizations. An Analysis of Impediments to Fair Housing Study is recommended in fiscal year 2014 to re-examine and address potential barriers to affordable housing and meet federal compliance regulations. 3. Evaluation of past performance The City of Hot Springs has received Community Development Block Grant funding for ten (10) years beginning in 2004. The original Consolidated Plan was written in 2003 planning fiscal years 2004-2009, and the most recent Consolidated Plan was written in 2009 planning fiscal years 2010-2014. The City Consolidated Plan HOT SPRINGS 3 OMB Control No: 2506-0117 (exp. 07/31/2015) Community Development program focused primarily on housing by helping low income homeowners maintain their properties, and on needed infrastructure improvements within its older low- to moderate-income neighborhoods. 2004-2013 Objective 1 - Rehabilitate existing housing stock to reduce the fallout of existing housing units from the housing inventory and impede continued deterioration of neighborhoods. This was accomplished by rehabilitating 7-12 single-family, owner-occupied, low- to moderate-income housing units per year mainly in the targeted areas of Park Avenue and Pleasant Street, and other Low to Moderate-Income neighborhoods. A total of 107 homes were brought up to City code, ADA accessibility standards and/or addressed urgent needs of health and safety enabling homeowners to remain in their homes. This program was furthered by providing home maintenance information, coordinating with volunteer organizations to provide additional home repairs as identified by City Neighborhood Services, and other support services through City of Hot Springs Staff. Minor and major repairs, up to $25,000 per qualifying home, included roofing, heating and air conditioning systems, plumbing, electrical, lead-based paint abasement, foundation repairs to stabilize the structure, replacement of doors, windows and siding to increase energy efficiency, and accessibility improvements. 2004-2013 Objective 2 - Expand neighborhood revitalization efforts through public service programs and organizations such as homebuyer education, homeownership counseling, etc. The City sponsored home buying, credit counseling and home ownership classes, free to the public, providing the knowledge necessary to acquire decent affordable homes. In addition, an Analysis to Impediments Fair Housing Study was completed in 2009 to understand areas for improvement to provide decent, affordable housing for all citizens. 2004-2013 Objective 3 - Provide and expand the affordable housing stock for low- to moderate-income families and individuals. The City supported five (5) Habitat for Humanity Villages Wheatley, Shaw, Randy Cox, Whittington, Highland