ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, July 18, 1993                   TAG: 9307180079
SECTION: VIRGINIA                    PAGE: B-1   EDITION: METRO 
SOURCE: JOEL TURNER STAFF WRITER
DATELINE:                                 LENGTH: Medium


HOUSING OUTLOOK TROUBLING

Roanoke lost nearly 1,200 homeowners in the 1980s, a trend that has city officials worried.

The percentage of owner-occupied houses in the city's housing stock dropped from 55.7 percent to 52.3 percent, based on the 1990 census.

The shift in the proportion of owner-occupied housing was the equivalent of 1,195 households, according to Dan Pollock, the city's housing development coordinator.

But the net loss was only 542 because some new houses were built and some rental and vacant houses were converted to owner-occupied structures.

So what happened to the 1,200 owner-occupied houses?

They were either converted to rental property, razed or became vacant, Pollock said.

"That is a huge amount in 10 years. It is a cause for concern," he said. "The trend is troubling."

The city has several programs designed to increase home ownership, but the census figures indicate it may be losing the battle.

City officials want to increase home ownership because studies have shown that owners tend to keep their property in better condition than renters. They say neighborhoods often decline as the percentage of rental property increases.

Nearly 48 percent of the city's housing stock is now rental property or vacant.

Roanoke has 44,384 housing units, broken down this way: owner-occupied, 23,234; rental, 17,796; and vacant, 3,354.

In the past decade, the percentage of rental housing increased from 38.1 percent to 40.1 percent. And the vacancy rate is now 7.6 percent, up from 6.2 percent in 1980.

Housing planners are using 1990 census data to update the city's affordable-housing plan, which is required to remain eligible for federal community development and housing funds.

They held a public workshop this week to get citizens' views on housing conditions and the need for affordable housing.

Pollock said there is more bad news in the census statistics. The city has an aging housing stock, and many houses are owned by elderly or low-income people who can't afford to make needed repairs.

In terms of housing conditions, the city is losing ground because more houses are becoming dilapidated than are being rehabilitated, he said.

"The census data include some things that are a cause for concern," Pollock said.

Publicly assisted rehabilitation programs can't keep up with the decline in the housing stock unless there are substantial repairs financed with private funds, said Marie Pontius, the administrator for the city's grants-monitoring office.

City building inspectors have estimated that the city has 1,500 substandard housing units. This includes 1,100 suitable for rehabilitation and 400 for which repairs are not feasible. These should be demolished to stem their blighting influence on surrounding areas, officials said.

Pollock said the city generally has a good supply of affordable housing, but there is a shortage of larger rental units affordable for low-income families without public subsidies.

A large portion of the housing units with low rents are in bad condition, he said.

Census figures show an imbalance in housing values in the city. Only 10 percent of the owner-occupied houses are valued at more than $100,000. At the other end of the scale, 26 percent of the houses are valued below $40,000. The median value of houses in the city is $53,700.

The census also showed that about 85 percent of homeowners are paying less than 30 percent of their income for housing, which is considered to be a benchmark amount.

But renters don't fare as well because many have low incomes. About 20 percent of renters make less than $10,000 and pay more than 35 percent of their income for rent. This category is in greatest need of housing subsidies, he said.

The median monthly rent in the city is $336.

Rental rates remained stable, with small increases during the 1980s. The annual increase was less than 2 percent.

As a rule, the lower the household income, the greater the proportion that tends to be paid for housing expenses.

Pollock said the city needs to increase the proportion of owner-occupied housing and higher-priced house to provide a better balance for its varied population. The image and fabric of city largely are influenced by housing conditions, he said.



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