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This report covers the final year of the five-year period covered by
the city’s 2003 Consolidated Plan for Housing & Community Development. A
Public Hearing will be held before the Burlington City Council on
September 22, 2008, concerning this Report. Comments will be accepted at
the Public Hearing as well as online and at the Community & Economic
Development Office through September 26, 2008. We continue to solicit
the input of our citizens about the effective allocation and expenditure
of our Community Development Block Grant (CDBG) resources as well as on
housing and community development needs generally. As our community
examines ways to make the workings of local government more open and
participatory, the process of allocating CDBG funds stands out as a
shining example of citizen-driven decision-making.
Housing:
- The rental housing market continues to be too tight. A rental
vacancy rate between 3% and 5% is generally considered to be
“balanced.” When it falls below that level, a lack of supply leads
to spiraling rent increases, leaves people unable to find housing,
and limits economic growth. In 2003, the local rental vacancy rate
had almost reached 3% – but by June 2008, it had fallen back to 1%.
By comparison, the national rental vacancy rate was 10% in June 2008
and the Northeast regional rental vacancy rate was 7.4%.
- After dipping in 2006, median home sale prices in Burlington
rose again in 2007, reaching $256,000, and again through July 2008,
reaching $279,025. Median home prices in the city rose by 43% from
2003 to 2007.
- The number of foreclosure filings on residential properties in
Burlington doubled from 13 in 2003 to 26 in 2007. The rising trend
appears to be continuing, with 17 residential filings through May
2008. Measured as a percent of households, the foreclosure filing
rate in Burlington is much higher than that of the state as a whole,
but is much lower than the national average.
- The numbers of chronically and of unsheltered homeless in
Chittenden County are rising, as measured by the annual
“point-in-time” count done each winter. It’s not clear whether this
increase is attributable to an actual increase in numbers or to
better counting methods.
- The number of homeless families, on the other hand, is
decreasing according to both the point-in-time count and cumulative
year-end reports for funded programs. It’s not clear whether this is
a positive trend, reflecting the recent increase in the number of
transitional housing units available to families, or a negative one,
reflecting longer shelter stays due to the unavailability of housing
(and a consequent decrease in shelter beds available).
- Domestic violence is a major contributing factor to family
housing insecurity. Forty-three percent of the temporary housing
(motel) days paid for by the state during the last fiscal year were
related to domestic violence.
Economic:
- Despite dips in 2005 and 2006, the city has seen overall job
growth. From 2003 through 2007, total jobs grew by 4.3%, while
private sector jobs grew by 2.0%. (The largest growth in public
sector jobs were state government jobs located in the city.) The
city’s unemployment rate continues to run below state, regional and
national rates.
- The city’s downtown retail vacancy rate was healthy, running at
or below 6%, until June 2008, when it jumped to 8.1%. Some of the
recent vacancies are attributable to timing, some to rent levels and
some to national chain difficulties. Office vacancy rates, in
contrast, had tightened to 3.1% in June.
- The city continues to see annual increases in entertainment
(rooms, meals & alcohol) taxes, with growth of 18.2% over the last
five years. Gross receipts taxes (a measure of retail strength) grew
13.9% overall over the last five years, but fell by 8% from 2006 to
2007. However, the first quarter of 2008 saw a 5% increase over the
first quarter of 2007.
Community:
- After dropping (sometimes dramatically) for four years, the
number of incidents of violent crimes (homicide, rape, robbery and
aggravated assault), drug offenses, larceny and vandalism began
trending in the wrong direction from 2004 to 2006. (Vermont Crime
Report data for 2007 is
not yet available.)
- The self-reported use of alcohol and marijuana among Burlington
8th and 12th graders has dropped since the 1990’s, but is currently
trending in the wrong direction.
- The rate of substantiated child abuse continues to run over four
times higher in Burlington than in suburban Chittenden County areas.
This issue is one of three focus areas in the new Regional Early
Childhood Plan for Chittenden County.
- The percent of Burlington kindergarteners judged to be ready for
kindergarten across five domains by their teachers increased in 2007
after falling for three years. Most members of the Early Development
and Learning Partners – a group of early care and education program
directors and school district administrators – believe the
percentage of children ready for kindergarten locally will decline
in coming years due to factors which include an increasing
population of new Americans (including refugees) acclimating to U.S.
culture and language; the economic downturn preventing more families
from accessing early child care and education; and increasing
numbers of children diagnosed with autism. On the other hand, the
number of Burlington preschoolers enrolled in nationally accredited
early education programs continues to rise.
Housing
Affordable housing remains the city’s highest community development
priority. In the housing arena, we exceeded our goals over the last five
year in creating new owner units for those at the 80% of median income
level, for buyer assistance at all income levels, and for rental rehab
at all income levels. We did not meet our goals in creating new rental
units at all income levels, in creating new owner units at the lower
income levels, or at owner rehab at all levels. Declining CDBG funding
levels have particularly affected our ability to help homeowners
with small rehab projects, which are highly staff intensive. This
past year, CEDO was only able to make two homes accessible to
persons with disabilities, and no money was available for emergency
repairs. On the development side, creating new affordable rental
housing has been affected by funding cuts combined with a permit
process that often takes years to negotiate and is both very costly
and risky for developers. Dozens of private inclusionary housing
units remain stalled through lengthy appeal processes. And, the
demands for equity from the Low Income Housing Tax Credit far
outpace the level of credit available to Vermont.
The city was successful, however, in preserving the affordability of
366 rental units (including those at Northgate, Peterson Place,
Heineberg and the
Randall/Gable Apartments) whose subsidies expired during the last five
years or which were otherwise at risk of losing affordability. The Co-Housing project on East Avenue is complete, as is the
Northern Lights transitional housing on Cherry Street for women exiting corrections. New
affordable housing is under construction on King Street, as are new
transitional units for victims of domestic violence at Sophie’s Place,
adjacent to Franklin Square.
And, over 100 low- and moderate-income homebuyers got help purchasing a home over the last five years.
Over the last program year:
- The city obtained a $2.8 million Lead Hazard Reduction grant.
- With the help of CDBG and HOME dollars (together with the
Housing Trust Fund, inclusionary zoning, other resources and
technical assistance from the Community & Economic Development
Office), 68 new affordable housing units are currently under
construction or in the predevelopment phase.
- Forty housing units were rehabbed, with work ranging from new
paint to emergency repairs to major rehabilitation.
- Development and rehabilitation assisted by CEDO’s Housing
Division increased property tax revenue by nearly $150,000.
Economic Development
Economic development is the city’s second highest community
development priority. Programmatically, we have exceeded our goals on
job creation and retention; on business start-ups and expansions; on new
and renovated commercial space; and on increased property tax
collections.
This year:
- CDBG-funded economic development activities supported
the start-up of 39 new businesses, helped to retain/expand 49
businesses, and led to the creation of 370.5 permanent FTE jobs (plus
1,318 construction jobs) and the retention of 443 permanent FTE jobs.
- CDBG expenditures leveraged over $78 million in private and other public
investment and supported the development and/or renovation of 38,880 sq.
ft. of commercial space, with increased property tax revenues of
$370,604 and increased rooms and meals revenues of $133,288.
- CDBG
dollars helped to provide quality, affordable childcare for 126 children
from low- and moderate-income families, sustaining their ability to
work.
Downtown, infrastructure renovations on the Church Street Marketplace
will continue. The city continues to
work with Redstone Commercial and the Champlain Housing Trust on the
mixed-use redevelopment of the downtown BankNorth site (with a Section
108 commitment to the Champlain Housing Trust for the commercial portion
of its project) and on the redevelopment of the former Hunts Armory site on Main Street.
On the waterfront, the Lake and College Street redevelopment project
– supported with a $10 million Commercial Revitalization Deduction in
2003 – became home to Merrill Lynch offices. Seventh Generation,
headquartered in the building, is in the process of expanding into and
renovating 10,000 sq. ft. and has hired 28 new employees. The Wyndham
hotel became a Hilton Hotel and was completely renovated, at a cost of
$14 million.
In the South End, Dealer.com purchased the remainder of the former
Specialty Filaments building on Pine Street, adding 70 new hires and
four new workforce training programs. Burton Snowboard decided to keep
its world headquarters in the city and to purchase the structure next to
their existing building, keeping 360 jobs here with 275 new jobs
expected over the next five years. General Dynamics continues to
renovate their existing 160,000 sq. ft. facility located on Lakeside
Avenue.
Elsewhere, the Vermont Center for Emerging Technology at the
University of Vermont’s Trinity Campus had three tenants this year and
three graduations. Burlington Tech Center’s Aviation Tech training
program has received state support to lower the cost to participants (by
granting $4,000 per participant) as well as a commitment from the
legislature for $30,000 to begin planning an expanded program.
Social Services
The city spends the maximum allowable percent (15%) of its CDBG
resources on social services. CDBG dollars help social service agencies
provide for basic needs of city residents as well as fostering equal
access, health, public safety, and senior and youth services. Over the
past program year:
- Through the help of CDBG grants, over 5,300 people
(adults and children) were fed by anti-hunger programs; over 1,100
homeless people (including families with children and victims of
domestic violence) had a safe, warm place to sleep; and over 2,700
people kept their heat on.
- 575 youth participated in CDBG-funded
summertime and after-school recreational, academic and social enrichment
programs, and over 600 seniors received meals, health care, help with
public benefits, in-home assistance and/or participated in social
activities.
- Seventy-three percent of those served by CDBG-funded
social service programs were “extremely low” income – which for a family
of four in 2008 means an annual income of less than $21,200.
The CDBG program is supplemented by other anti-poverty initiatives.
The city again sponsored a Volunteer Income Tax Assistance site,
providing free help to low-income taxpayers in accessing the Earned
Income Tax Credit (the largest federal anti-poverty program), the Child
Tax Credit, homeowner and renter rebates, and other tax refund
opportunities. The city is also participating in a data collection
effort to more accurately assess local community conditions and needs
around debt, savings and financial security, and in biannual “Free
Credit Score Days.”
Public Facilities and Infrastructure
Finally, community facilities and public infrastructure also
benefited from CDBG dollars:
- CEDO managed the extensive public process to solicit feedback and
comment from residents about the future of the Moran Plant. After 65% of
Burlington voters approved a redevelopment proposal, CEDO began working
with other city departments and city partners on next steps, which
include legal agreements between the city and its partners, additional
architectural and engineering services, addressing city financing, and
fundraising campaigns by the Community Sailing Center and Green Mountain
Children’s Museum.
- Federally-funded street improvement projects moved
forward, with scoping complete and preliminary engineering underway for
Battery & College Street improvements and planning underway for
improvements to Church Street Marketplace sidestreets.
- The Lund Family Center's facility on Glen Road was renovated
and expanded with additional residential treatment space for
pregnant and parenting young women.
- Community
members have taken the initiative to improve their neighborhoods with
grassroots spending for improved parks, playgrounds, community gardens
and other public facilities.
Page last updated
March 29, 2010
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