$70 Million Five-Year Plan Approved for Housing, Community Development in Idaho

BOISE - The Five-Year Strategic Plan for Housing and Community Development  has been approved for Idaho, the Idaho Housing and Finance Association announced today. This $70 million plan will provide a framework and strategy for acquiring, allocating and administering federal housing and community development funds through 2004.

This five-year plan is the result of a year-long process undertaken by IHFA and the Idaho Department of Commerce. It is the single document through which HUD funds are approved for non-entitlement areas—most of Idaho’s 44 counties. The plan addresses housing and community development needs, market conditions, demographics and strategies that empower local communities.

"The planning process is as valuable to us as the final document," says IHFA’s Julie Williams, vice president of Community Housing Services. "It gives us the opportunity to learn directly from local communities about their unique housing issues. We can then work together to create practical strategies that make best use of available resources."

The five-year plan is used to identify needs and allocate funding for Idaho communities. As required by HUD, it updates the original five-year plan in effect from 1995-1999 and serves as the application for Emergency Shelter Grants, Community Development Block Grants and the HOME program. Of the $70 million, IHFA will distribute $5 million and the IDOC $9 million annually for five years.

Last year, IHFA and IDOC conducted an extensive public participation process in 13 Idaho communities, followed by six months of public comment. Public forum attendees included state and local elected officials, government staff, housing industry professionals, community residents and special needs advocacy organizations. Using input collected from these forums, the agencies identified strategies to address the plan’s three basic goals:¹

• Provide decent housing for individuals and families. Examples include: increasing the supply of affordable rental housing for low- and very low-income Idahoans in areas of demonstrated need; preserving existing affordable rental housing; and promoting independent living options for Idaho’s special needs populations.
  
• Provide a suitable living environment through public facilities, neighborhood and community enhancement. For example, serving the needs of Idaho’s older citizens and special needs populations through the development of public facilities or serving the basic and immediate needs of Idahoans when public infrastructure fails due to a catastrophic event.

• Expand economic and employment opportunities in every Idaho community by increasing economic opportunities for low and moderate income Idahoans by assisting businesses’ expansion.

One of the most often identified needs during the planning process was assisted living facilities for seniors. As baby boomers reach retirement age, more resources will be required to bridge the gap between independent living and nursing home care. Idaho’s challenge is to address this and other critical housing needs during the coming decade.

During the 1990s, Idaho’s housing costs consistently outpaced household incomes by a factor of two to one. Statewide, the majority of jobs created fell into one of two wage categories: those paying $8 or less per hour, and those paying $20 or more per hour. This leaves many households supported by unskilled or semi-skilled wage earners with less than a living wage. On average, three out of 10 Idaho households cannot afford the average area rent without some form of rental assistance, and nearly two-thirds cannot afford the average-priced home in their area.

"Although Idaho’s economy has been booming as a result of record growth in the ’90s, one in four Idaho households are housing cost burdened, meaning they pay more than 30 percent of their monthly household income toward rent or mortgage payments," Williams continues. "Many working Idahoans slip farther behind every month. This stress weakens families and communities at a very basic level. IHFA’s goal is to find innovative ways to put decent and affordable housing within reach of more Idaho families."

Copies of The Five-Year Strategic Plan for Housing and Community Development and the 1999 Barriers to Housing Affordability in Idaho are now available on IHFA’s Web site at www.ihfa.org.