CHAPTER 3

HOUSING

 

3.1       Background

 

This is the third of nine chapters that comprise the City of Park Falls Comprehensive Plan. 

 

Attractive, decent housing is an asset to any community because it brings in families with children and indicates to industries that there is housing for a potential workforce.  Growth in essence is dependent upon the quality of housing stock in the community, including housing for all income levels.  Available housing units either attract and retain businesses or push them away.  This implies the important balance between economic development and housing.             

 

A.  Previous Studies

 

“Wisconsin State Consolidated Housing Plan”

 

The State of Wisconsin formed the 2005-2009 Consolidated Plan to obtain more federal funding opportunities through the United States Department of Housing and Urban Development (HUD).  On average the funds total $50 million dollars a year and are used to improve Wisconsin’s communities, especially housing needs.  The focus is providing options to very low to moderate-income people.  It serves as a prioritized guide that strives to better meet the present housing demands. 

There are six main parts that compose the Consolidated Plan:

 

      Part I:        Coordinating and Managing the Process

      Part II:       Citizen Participation

      Part III:     Housing and Community Development Needs

      Part IV:     Housing and Community Development Priorities

      Part V:      Action Plan—One Year Use of Funds

      Part VI:     Outcome Measurement System

 

Each part focuses on different aspects of the plan and partnerships are formed among numerous Wisconsin departments.  Public opinion was accounted for during roundtable discussion, emails and written mail when the Plan was formed.  Statistics about population figures, elderly and people affected with disabilities were reviewed to project housing needs.  In addition to these needs, community and economic development issues were addressed to find where assistance is needed most.  This collaborative effort has secured federal funds for Wisconsin’s communities and people.   

 

 

 

 

 

B.  Housing Issues

 

AFFORDABILITY

 

In 2000 in Park Falls 16.8% have household incomes less than $15,000 and 42% have household incomes less than $25,000.  According to Housing of Urban Development (HUD), 30% or less is the suggested value to be spent on housing needs.  With an income of $15,000 a year, 30% equates to $4,500.  If this money was used for rent alone, payments would be $375 a month, $22 below the median gross rent for Park Falls.  However, realistically housing needs would not be solely spent on rent but include utilities, updating and emergency finances.  With an income of $25,000, $7,500 or less is suggested for yearly housing costs.  This equates to a maximum of $625 a month used for housing needs—mortgage, heating/cooling, paint, remodeling, windows, doors and all other expenses associated with home owning.  The median value for an owner-occupied home is $61,300 and median mortgage payment is $774, which is $149 above the maximum figure suggested for use when earning $25,000 a year.  In addition, 42% of Park Falls residents are at or below this income level of $25,000.  Also more than 28% of residents spent 30% or more of their income on rent while 17.5% of homeowners spent 30% or more on mortgage.  This demonstrates the requirement for safe, decent housing in Park Falls that accommodates lower-income individuals and families.  Refer to Figures 23 and 24 for percentages of rent and owner costs in Park Falls as a percentage of household income in 1999.  Recall that no more than 30% of income is suggested for use on housing needs.      

        

                Figure 23

 

 

                Figure 24

 

The lack of affordable housing, especially housing that accommodates extremely low income households, is a prevalent issue throughout America.  According to the National Low Income Housing Coalition, a full-time worker in 2008 must earn $17.32, which is more than a dollar per hour increase since December 2006, to afford the national average Fair Market Rent (FRM) of $900 per month.  A two-bedroom unit increased 36% since 2000, a reason one-third of households continue to rent in the United States today.

 

There are large supply and demand gaps in numerous western states such as California and Nevada because of growing populations but “rising housing costs and a historically small stock of rental housing, Florida, the District of Columbia, New York, and New Jersey in the East and Wisconsin and Michigan in the Midwest also face an above average gap between supply and demand” (Pelletiere, 5).  A wage of $13.75 an hour is needed in Wisconsin to afford a two-bedroom unit, which ranks 24^th in the nation.  With a job being defined as working 40 hours a week for 52 weeks at minimum wage, 2.1 jobs are needed in Wisconsin to rent a FMR, two-bedroom unit.        

 

In Park Falls the Housing Authority Annual Report states that “the future for affordable housing for lower income families looks very bleak.” 

 

One solution for the enormous need of affordable, decent and safe housing in Park Falls is the Lincoln School Project.  The proposal is using Lincoln School (right), which has been vacant and unused for several years, as an apartment complex.  This $3-4 million project is expected to be accomplished in 2009 and create 25 construction jobs.  Another solution in the current City of Park Falls housing rehabilitation is the Community Development Block Grant for $650,000.  These funds are available to qualified residents of the City to improve their homes.  There are also a number of federal, state and local programs available to provide affordable housing units.  Refer to letter F in this section, Housing Programs. 

 

Another alternative is a Housing Trust Fund (HTF).  These funds from public revenue sources are established by cities, counties and states, usually by legislation or ordinance, to support affordable housing.  They allow cities to not rely heavily on outside contributions or interest from alternative funds.  There are more than 170 housing trust funds in America.  An advantage to these funds is their flexibility by being able to support a different concern after more affordable housing is made available.          

 

HOUSING AUTHORITY OF THE CITY OF PARK FALLS

 

The Housing Authority of the City of Park Falls was implemented in 1968 and has continued since.  There are currently five commissioners, each serving a five year term.  According to their May 1, 2008 annual report, they have continued services productively but “may fail to properly maintain the goals of our [their] mission statement” if changes do not take place.  Their mission is as follows:

 

Our aim is to ensure SAFE, DECENT, and AFFORDABLE housing within our jurisdiction, and also to encourage and, where possible, create opportunities for residents’ self-sufficiency and economic independence.  We will recognize the residents as our ultimate customer and our purpose for existence and we will promote equal housing opportunities for those protected by law.

 

In order to achieve this mission, we will endeavor to assure fiscal integrity by all program participants.  We will ethically and efficiently manage the assets and limited fiscal resources available to us in a prudent manner consistent with the objectives, goals, and policies of the Public Housing Program.  We will, to the best of our ability, seek problem-solving partnerships between agency staff, residents and local community and government leadership and further we will act as an advocate for reform as condition may require.

 

This mission statement and some local findings throughout this section are from the Housing Authority of the City of Park Falls Annual Report submitted by the Chairperson on May 1, 2008.

 

The Housing Authority for the City of Park Falls has a Tenant Assistance Program to support elderly and disabled citizens with housekeeping, “transportation, shopping, a toenail clinic and a blood pressure clinic monthly.”  One hired matron provides additional physical and domestic assistance for the elderly.  The Housing Authority’s goal is to allow others to live independently for as long as possible; however, resource and financial cutbacks from the state, county and HUD funding are jeopardizing the ongoing efforts of these services.     

Flambeau Heights is maintained and operated by the Housing Authority

 

Even with a struggling housing market, the Housing Authority remains optimistic about providing the best services they can for Park Falls.  Capital funds of $44,537 were granted in September and used for remodeling, flooring, appliances and, to be accomplished, seal coat and crack routing of a parking lot.  They provide elderly and family homes to those in need, although there is always a waiting list, and served twelve additional families last year. 

 

However, from these interactions the Housing Authority sees there is still a “dire need of family housing in this area,” especially ready-to-move-in homes for low-income people.  This past year they have seen an “imploding real estate market and an increasing mortgage crisis,” in addition to increased living costs and sky-rocketing gas prices.  People are falling into mortgage/real estate craters so funds are projected to assist with this bail out instead of providing more affordable housing.  The affordable housing funds have been shrinking while the budget increases.  Utilities increased and the water/sewer/refuse billings for miscellaneous sites were added to their expenses to assist homes for a total 2008 budget of $139,710.      

       

APPEARANCE AND MAINTENANCE      

           

The current low-income housing for elderly and families is very well maintained and attractive in appearance.  This is generally due to federal funding.  There are also noticeable abundances of “mill houses” built side-by-side from early paper and saw mill days.  However, older housing stock is becoming virtually non-saleable because of issues such as lead, asbestos and mold.  Because the Housing Authority housing is well maintained, the market demands the same of the Section 8 and Section 202 and 504 housing managed by private entities.  The problem is that federal funding is decreasing in substantial amounts every year and utility expenses increase.  A solution to this problem is to search for alternative funding sources, although the competition is tight, and maintain an optimistic and persistent attitude.  Agencies need to apply and administer programs (such as the home loan programs) to provide assistance to people.  The Park Falls Housing Authority cannot do this because they are too small of an agency.    

 

ELDERLY/RETIREE AND SUBSIDIZED/SPECIAL-NEEDS HOUSING NEEDS

 

There are currently four facilities in Park Falls serving the elderly/special-needs population:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                            Marple Manor

                                                                                                     Charles Hill Villa

 

While there are four facilities available in Park Falls, low-income family housing and single person housing are in need.  The general economy is forcing more and more seniors and disabled persons on fixed incomes to seek the services of low-income housing facilities.  The Park Falls Housing Authority receives an average of at least one call per day for families in crisis and in need of more immediate help than placement on a two year waiting list.  Non-elderly, low-income singles need homes also.  The current rental market makes it prohibitive for the single low-income person to afford housing, and many jobs in our area (especially for younger singles) are low-income.  In addition, some younger disabled singles are not served by the current housing availability.  Older, but not yet elderly, singles have problems finding affordable housing. 

 

Price County does offer 23 rental assistance vouchers for the County.  They are managed by NEWCAP in Oconto County.  The HUD voucher program is in crisis and the outlook for more vouchers is slim.  There is much real estate for sales but price are high and the stock is generally old and in need of renovations.  There is also a problem with landlords not wishing to partake in the voucher program because the units would not meet inspection standards.

 

In Wisconsin the Department of Health and Family Services projects people with physical disabilities will increase by 18,932 people in five years, 354,722 in 2005 to 373,654 in 2010.  Individuals with sensory disabilities are projected to grow by 8,477 people in those same five years.  To accommodate these disabilities, housing modifications are needed to allow these people to live independently.       

 

There are various solutions available to assist with the housing needs that are here in Park Falls.  One solution to low-income families and single person dwellings quickly would be a temporary crisis shelter or alternative until more permanent housing can be arranged.  The Low Income Tax Program and other financing programs are available to private developers to assist with renovations.  HUD has numerous programs available, see “Housing Programs” beginning on page 99.    

 

3.2       Inventory and Trends

 

A.  Existing Housing Stock

 

In 2000, Park Falls contained 1,302 total housing units compared to 1,308 units in 1990.  Six housing units were lost.  Price County had a 6.0 percent increase and the State of

Wisconsin a 13 percent increase during the decade.       

 

 

The majority of housing units in Park Falls were built prior to 1950.  There was a slight increase in constructed units in the 1970’s but was followed by decreases in the 1980’s and 1990’s.  Price County and Wisconsin increased during those two decades and have fewer older structures.  There were not as many structures constructed in the 1980’s, and Wisconsin saw a drastic drop in the 1940’s during World War II.  Overall, Park Falls has a significantly older housing stock than the county and state with 61 percent of structures built prior to 1960 compared to 44 percent in Price County and Wisconsin.