9978-09 Appropriating $2,463,435 from Community Development (Fund 212), defraying expenses of CED

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St. Joseph County Housing Consortium Mishawaka The City of Mishawaka began focusing its efforts and resources on the Milburn Boulevard Neighborhood in 2009. This neighborhood is defined by the St. Joseph River on the north, Panama/Twelfth Street on the south, Ironwood Drive on the West and Union Street on the east. The Milburn Boulevard Neighborhood is one of the earliest neighborhoods established in the City, with some of the housing dating back to the late nineteenth century. This target area was selected for several reasons, one of which is the documented economic need in the area. This is a densely populated neighborhood that is largely residential with a mixture of owner-occupied houses and rental properties. It is comprised of all the block groups in St. Joseph County Census Tracts 101 and 102. Per the 2000 Census, Tracts 101 and 102 have a combined population of 8,685 residents. Per HUD guidelines, 4,945 (56.6%) are considered low-moderate income. Utilizing additional data from HUD, both census tracts have an Estimated Foreclosure Abandonment Risk score of "10," which is the highest score and indicates the greatest risk of abandonment. The United States Postal Service reports that Census Tracts 101 and 102 have residential vacancy rates of "8" and "10" respectively, which is higher than average for the City of Mishawaka. Vacant and abandoned structures are an increasing problem in this neighborhood. Another reason Community Development is focusing on the Milburn Boulevard Neighborhood is that other City departments are escalating their improvement efforts in the area. In 2005 the City's Department of Engineering employed consulting services to prepare a Master Plan of this section of the City. The study identified nine specific sewer improvement projects. Construction began in 2006 to address these needs, and is continuing. Updates to the entire area should be completed by 2015. In addition, in 2008 the City`s Code Enforcement Department began working in the Milburn Boulevard Neighborhood area. Each code officer is assigned specific streets within the Milburn area to monitor and address any issues that they observe. An additional officer, paid with CDBG funds, is assigned to an area of notable concern. The officers make daily efforts to address both public nuisance cases as well as substandard structures. They patrol their respective streets regularly and notified property owners or tenants of code violations where necessary. In 2008 code officers initiated 666 public nuisance type cases, and were able to close 637 (96%). They opened 97 cases on substandard structures and closed 65 (67%). The Code Enforcement Department will continue to focus on this neighborhood for several years. These improvement efforts by other City of Mishawaka departments in the target area allow Community Development to leverage its CDBG funds. Another public source of funding in the area is Tax Incremental Finance (TIF) funds. The City's Northwest TIF District overlaps portions of the Milburn Boulevard Neighborhood on its northern edge. According to State statute, TIF funds can be used to pay for such items as curbs and sidewalks, streets, and clearance of land in preparation for development. In addition, a portion of the City of Mishawaka's target area for the Neighborhood Stabilization Program (NSP) overlaps the Milburn Boulevard Neighborhood boundaries. It is estimated that in Program Year 2010 approximately $297,000 (50%) of Mishawaka's CDBG funds will be utilized in the Milburn Boulevard Neighborhood for efforts such as spot blight clearance and infrastructure improvements. It is anticipated that approximately 100% of the City's 2010 HOME Grant will be allocated toward building First-Time Homebuyer houses on the cleared lots in the Milburn Boulevard target area. 2010-2014 Housing and Community Development Plan 11