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91-13 @'.' .~ ~~.. ,. ~ ~ RESOLUTION NO. 91-13 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CLEARWATER, FLORIDA, DEFINING THE TERM "HOUSING RECONSTRUCTION AND CONSERVATION AREA" AS QUALIFIED FOR COMMUNITY DEVELOPMENT BLOCK GRANT ASSISTANCE UNDER SECTION 570.208 (b), 24 CFR, SPECIFYING THE CIIARACTERIS'rICS OF THE HOUSING RECONSTRUCTION AND CONSERVATION AREA WHICH DOCUMENT AND SUPPORT A FINDING CONSISTENT WITH THE DEFINITION INCLUDED IN cHAptrER 163.340 (8) (a) OF THE FLORIDA STATUTES, AND SETTING FORTH PROPOSED ACTIVITIES AND EXPENDITURES TO ALLEVIATE DE~ERIORATED CONDITIONS. WHEREAS, the City commission has reviewed the report' included as "ATTACHMENT A" to this resolution Which documents the conditions of residential structures and other buildings, located in the Housing Reconstruction and Conservation Area; and WHEREAS, the city commission finds that 67% of the residential structures and 64% of the total buildings in the area are in deteriorated or deteriorating condition; and WHEREAS, an estimated 75% of the housing in this area is over 30 years old, and '. . WHERE1\S, .. the an owner occupied housing units constitute estimated 50% of the housing units in the area; and , WHEREAS, the North Greenwood commercial Revitalization Plat. as prepa'red, by the Clearwater Neighborhood Housing Services has identified conditions of deterioration in the neighborhood commercial district on north GreenWood Avenue; now therefore BE IT RESOLVED BY THE CITY COMMISSION OF.THE CITY OF CLEARWATER, FLORIDA: Section 1. The 'definition of "conditions in this area" is hereby established consistent with Chapter 163.340 (8) (a), as further specified as an area within Which at least 25% of the buildings are in a state of deterioration. Section 2.' A survey of struct~ral conditions in 1989 and' 1990 determined that 64% of the buildings, and 67% of the housing units in the Housing Reconstruction and Conservation Area are in a state of deterioration. Section 3. Owner occupied homes are estimated from census reports to constitute fewer than 50% of the total housing units. Res9~.-lJ 1 9/,/3 " , , I ~ . e e " section 4. '1'hore are over 300 vacnnt parcels in this aroa zoned for residential daveloplncnt. Inspections havo indicated that vacant lots have frequent violations of the sanitation codes (regarding junk cars, overgrowth, trash dumping). H section 5. Based on census data, the current residents of the area had n median income approximately 55% of the areawide median. ' · section G. Based on census data, over 75% of the housing in the Housing Reconstruction and consorvat:ion Area was built before 1959. . ' Section 7. A plan to revitalize the North Greenwood commercial District was developed and adopted in 1988, the focus of which was to upgrade the appearance and function of this neighborhood commercial district. Major portions of this plan have ,not ~een implemented. " ~ction 8~ There is a need to address and alleviate the . conditions of deteriorated homes and buJ,ldings, increase areG income, provide for increased homeownership and enhance the functll!m and appearance of the neighborhood cOlnmercial dist;rict. Section 9. The Housing Reconstruction and conservation Area delineated in uAttachment All is designated for funding under the provisions of section 570.208 (b), 24,CFR, consistent with the, definitions established in Chapter 163.340 (8) (a) Flor~dn statutes. -Section 10. steps to improve housing conditions are . ',proposed to include use of Federal community Development Block Grant ftinds for housing, commercial district and other necessary i~provernents. Section 11. upon adopt,ion. 'This resolution shall take effect immediately PASSED AND ADOPTED this 20th day of- June~ 1991. .~ ~eY ~ Mayor-commissioner I ;. ~ttest,: , ". ',' , " '/ .: " ' , '" , , " .'.' .' :.. I '" " . 'Res91-13 2 .' \ . ~ l , ' " ~ ~ ~ " ATTACHMENT "A" To Resolution 91-13 obcUMENTATION OF STRUCTURAL CONDITIONS The Housing Recon~truction and Conservation Area is delineated on MAP 1 of this report. It generally encompasses the older section 'of the city of Clearwater known as North Greenwood. This district is predominately residential in land use, however, there is an industrial section located near the railroad tracks and a neighborhood commercial district on North Greenwood Avenue. Public facilities included in the area are Martin Luther King Center, Jack Russell stadium, Philip - Jones Field, a branch library, a' police sub-station, two schools, a wastewater treatment plant, and a public works facility. The neighborhood is well-established, with churches, a neighborhood association, and various civic groups. social services are in place with tutoring programs, a day care center, recreational programs, and athletic programs. Despite the strong community spirit evident in North Greenwood, physical conditions have continued to decline. In 1989, the Planning and Development Department compiled a Housina Issues PalJer which addressed physical, fiscal and regulat?ry conditions as they relate to improving housing conditions in North Greenwood. In 1988, the North Greenwood Commercial District General Development llim addressed physical and economic conditions of the neighborhood commercial district. Taken together, these reports present strong evidence that conditions of blight exist, and provide definitive activities to alleviate those conditions of blight. The following table illustrates the building conditions documented in July, 1989. TABLE 1 BUXLOING CONDITIONS/ALL PROPERTIES NORTH GREENWOOD 1989 Condition Total % Number ot Residential Structures Number ot N.9n- Residential structures Numerous major code violations One or more major code violations 11 38 2 27 76 4 55 21 reB91-13.att 1 revised 6-24-91 " " , , ....-~~ttw._~~,",'t'~~~~~~~~~:t'm\~tlIlI~~'\~K-:'~.........,ft:~'l\',~~:lv' J~ ',",.,,: ;.':'~I'~'l.:r;ij_;"~~!,' ,1J'.-'~Tl~f,"'~~P ~"''i~[('~><-4-!)j,~i'\ ",J:i. .,~. ,:4,1:::~ 1.;rr.1't\"1~~~1~' '~':~f.;':~X...1;vr'.0.'~~f.i"~'''''~~-1';''r~r.'.-~" .,I.,~ ;..'~?~y f~:<.,..~~~7r'~ ".;,,; 'r J' ,f",~;:: ;,~. '~'\:~:~''',<;'~':'~/~~'f;.~~> :~"..:..: .' ~- .' ~.' -;' ~.~::.:-::...::,.}'> ..~~".\. 5'";:':,1:. ~:t~t;: t: . .~>;"':\~ >'~:'F:~~~~\.:;'. :.~ ..::...) ~,' . > ..~!. ." ~'" . ~,' '. @ ~ Condition Number at Number ot Non- Total % Residential Residential Struct.ures St.r.uctures 847 76 923 55 249 104 353 21 285 26 311 18 1,463 238 1,701 100 Many minor code violations sound Vacant lot Total Parcels When vacan~ properties are excluded from the calculations, the following structural condition calculations are derived. TABLE 2 BUILDING CONDITIONS/DEVELOPED PARCELS 1989 condition Number at Number ot Non- Total % Residential Residential Structures structures Numerous major 27 11 38 3 code violations One or more major 55 21 76 5 code violations Many minor code 847 76 923 67 violations Sound 249 104 353 25 Total structures 1,178 212 1,390 100 structural conditions surveyed clearly indicate that both the majority of residences and the majority of total buildings suffer from structural deficiencies. This is not surprising when several other contributing factors are considered. ,. , 'In 1980, census figures state that 70% of the housing units were substandard. In 1989, the neighborhood as a whole contained 67% substandard residential structures. For two years (1988 'and 1989), demolition records were researched and they reveal demolition of 119 structures. This indicates that the cycle of deterioration has continued. Deteriorated structures which were demolished did not res91-13.att 2 revised 6-24-91 " ~ ~ ~ N: " o 500 1000FT r .' 1 > " . . . . .. INFILL HOUSING DEVELOPMENT AREA CITY OF CLEARWATER CDBG,pROGRAM ,. MAP 1 CENSUS TRACTS · J" { ~ ~ reduce the total of deteriorated structures, but other properties declined leaving the number of deteriorated properties relatively constant. Census Tract 262, comprises 842 of the total parcels surveyed (or 46% of the total number of parcels). The remainder of the subject area is comprised of portions of Census Tracts 261 and 263. Tracts 261 and 263 contain a much greater area than that included in the Infill Housing Development Area. Neighborhood conditions are presumed to be relatively constant throughout the area. Due to the difficulty in disaggregating census data for key housing find economic variables, it was presumed that the characteristics of Tract 262 prevail for the district as a whole. Census Tract 262 has a low proportion of owner occupancy, 41% versus. 65% Citywide. For the Infill Development District, it is presumed that 50% of the housing is owner-occupied. When a property is renter-occupied, property improvements and maintenance by the owner are often deferred due to the need of the property owner to see a "pay back" on the investment. Median rents in this neighborhood were estimated to be $220.00 per month, or 64% of the citywide median. Due to lower yields on investment, the tendency for landlords in this area will be to reduce maintenance and improvement expenses. Median income of residents was 55% of the citywide median in 1980. This reduced ability to pay prevents landlords from being able to increase rents to support property improvements, and further prevents families from being able to save sufficient down payments to become homeowners. Because of high renter occupancy, the existing programs which focus on rehabilitation of owner occupied structures are inadequate to address the deteriorated housing conditions in the area. Further contributing to substandard conditions is a high proportion of vacant lots. There are 326 vacant lots, 303 (or 92%) of which are vacant and residentially zoned. These lots frequently are overgrown and used as dumps for trash and old cars. In addition, these lots are an economic resource which is not currently creating any benefit to the community. Vacant lots are scattered throughout the neighborhood, as shown on MAP 2. These vacant parcels are a significant, underutilized resource. The following conditions have been identified as barriers to use (or re-use) of these parcels: 1. Absentee owners do not market properties. 2. Investment decisions on the part of owners often take a very passive approach. 3. Lack of financial capability of lot owners to undertake construction. 4. Bank underwriting criteria regarding appraisals, loan-to- res91-13.att 3 revised 6-24-91 __~._IL -- ~ ~ ~ ~ \. ~UN;jET I II il WU/N,I II II /lj , ....... ill '''\ W! I ~ I ~ ~, ~ / ~D J ~ - ".. Yqf~1 ~ J .~~.~ ~ ir;;. ~_ ] .. "~ (5 ~ rr. - 7J <J) ~~ r< ,~;-. - ='~ ' f f1$, .~... 1(\", ~ , lflQII II JAltJlc wi\-S"t '+.:.:. I ' . ,:!Jl If I~ '\'( +. iJDlffil - ,T1. -11,'0 @~ " +. :\J~'~ .' D~';~li-.=---fJ , I). 'D~ "~~.~ 9~ "@~23613"-(~' ,'- ~ ,', II /!r1- ~~~@ 1 w :18sJ I J .+.~- J~~M~ ~I@ I @, (9 ,V }.... fl6; aJ ~) , ,~ . ~ . .J~hJI@/ ..' ~ ~ ,,'2'@ G) =' , , .=:=fL Li:. \5f/' I ' ~ IODDI ~ - ~ L, r '-m~II~rcD' ~J i"" .'~~ #J!@~ @ @, ~ ,,~'0L n~/~ I @I@ , '.' -t.. I 'CID ~ m ~ (2) ~ , -~ . . @ [)~ @>//@::lZJ:'.,.JlJ'-U[JL\11 . .' ", IJ" b 'F=(V f= ~ti1~~; nnnn' n" r~i " ", ,~\ r si.'11 CD . ~ il @ <D ~ . . ~:-. -. ~r J JU = --.JI_, ...., ' ~/ IIUUU ! jllF== In ' ' --". tJ ' !,~~CLEVE ND ___.. _ .._..Inr.~ ~-,. ST.....r~~1J " ~ o 5001000FT !L-t---,..~ 1 r Ii: , , 'INF1LL HOUSING DEVELOPMENT AREA CITY OF CLEARWATER CpSG PROGRAM MAP 2 VACANT RESIDENTIAL LOTS @ NUMBER OF lOTS IN BLOCK .\ GD @ value ratios and debt/expense ratios exclude. many neighborhood residents. 5. Builders have increased the average size and amenities of the homes they offer, so no one is building a modest "starter" home as a custom product. 6. Residents are not educated as to how to undertake' a construction loan/build contract. 7. The person who owns the lot already has a house and is 'not interested in using it. Over 75% of the housing in the neighborhood was built before 1959. This lack of newer structures hinders the potential to increase owner-occupants in several ways. Banks are reluctant to lend money for a new home in the area for fear that it will be an "over- improvement for the neighborhood". If they are forced to foreclose, resale potential is reduced. However, when families do decide to take on homeownership, their options are'limited if they want to remain in the neighborhood, due to the scarcity of newer, sound structures. Most home buyers will need a mortgage and most banks are reluctant to finance the sale of a substandard house. Further, the cost and skill level needed to rehabilitate an older home make it a project few people are willing to tackle. Property values in the Intill Housing Program Area are low, and have shown a tendency to decline in recent years. Research of property tax records shows that the aggregate value for selected SUbdivisions was $14,694,600 in 1988 and $14,645,200 in 1989. These SUbdivisions comprise 499 properties; therefore, the average per property value was $29,358 in 1988 and $29,349 in 1989. Instituting new construction will increase the aggregate neighborhood value and also have a positive influence on the resale markets for both vacant lots and existing residences. The low aggregate neighborhood purchasing power was also reflected in the recommended strategies of the General DeVelopment Plan for the commercial district. This report was prepared in 1988 for Clearwater Neighborhood Housing Services under the direction of a task force. The' market analysis for the commercial district indicated that "future economic potential in North Greenwood is restricted when serving only the neighborhood trade area by the limited number of people, relatively low income per capita, lack of population growth, market dominance of competing stores, and the relatively large size required to establish many types of businesses. II The adopA;ed strategy seeks to provide a better neighborhood business base and expand goods and .services to areas outside the neighborhood. Physical improvements needed to support the economic revitalization program include street trees, sidewalks, parking, signage and facade improvements, and better maintenance. street trees and sidewalks are currently being installed; other improvements remain to be implemented. reIl91-13.11tt 4 revised 6-24-91 ,J ..' i> , > ";: . ~ " . I . ~. . ,@ 6) " jO Additional small business development needs which were identified are: 1. Loans to help businesses expand their product lines. 2. Loans to allow land consolidation due to small parcel sizes in the commercial area. 3. Loans for development of commercial property 4. Technical assistance for new businesses. 5. Loans and technical assistance to improve facades and signage. 6. Greater capitalization of the public economic loan program. Economic development and housing opportunities are linked in the North' Greenwood neighborhood. The recognition of this as the Infill Housing Development Area establishes a positive framework to support community success and alleviate conditions o~ blight. :\ : . ' . \ 'I ," " . ~ I .. . r..,91-13.'att 5 revi8ed 6-24-91 . ' ,