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Southeast Quality of Life <br />Strategic Neighborhood Action Plan <br />Income Decline <br />Economic conditions within the neighborhood further contribute to the problem <br />of disinvestment in the neighborhood. Median family income in the area is <br />approximately 64% that of the city; approximately $1 6,820 per year. The <br />income necessary to contribute to reinvestment by the residents is not being <br />generated. Further, the increases in the neighborhood in available rental <br />housing have several consequences associated with neighborhood <br />disinvestment. Renters tend to have lower incomes than those of homeowners. <br />Rental tenants and rental owners often have lower standards of building <br />maintenance and property upkeep. As properties deteriorate and property <br />values decline, banks are reluctant to finance mortgages for potential <br />homeowners. Further, as properties deteriorate, more successful households <br />will leave the neighborhood for quality housing elsewhere. <br />Unemployment <br />Employment conditions and resident income levels also significantly contribute <br />to existing conditions within the neighborhood. Since the early 1 960's, South <br />Bend has experienced a significant decrease in the number of major industrial <br />employers. The 1990 unemployment rate within the neighborhood was <br />approximately 1 5%. The declining economic base in the city is not the only <br />cause of the current unemployment condition. Many residents of the <br />neighborhood are lacking the skills necessary to compete for jobs, especially as <br />South Bend's economy shifts from an industrial/manufacturing base to service - <br />oriented employment. In 1990, 15% of the neighborhood population had less <br />than a ninth grade education; 27% attended high school, but did not receive a <br />degree; while only 32% received a high school degree. Unemployment or <br />under -employment leads to significantly reduced household income, further <br />reducing property maintenance and reinvestment in the neighborhood. <br />Aging Housing Stock <br />Disinvestment within the neighborhood is also attributable to aging housing <br />stock and infrastructure. As the quality of housing and infrastructure <br />deteriorates, the attractiveness of the neighborhood to potential new residents <br />31 <br />