Housing issues a top concern for excellence award-winning cities.(National League of Cities)

As the economic crisis continues to play out in America's cities and towns, housing has become a major concern for citizens and municipal leaders alike. How can communities make sure that residents find homes and mortgages they can afford? How can cities and towns protect neighborhoods from the hazards that accompany high rates of foreclosure and abandoned buildings? And how can municipalities provide elderly and low-income residents with the support they need to stay in their homes?

Over the 20-year history of NLC's Awards for Municipal Excellence, NLC and its partner in the program, CH2M HILL, have honored numerous cities that have come up with innovative answers to these very questions. As NLC followed up with many of these cities about their award-winning programs, we saw proof of their lasting success in the fact that they continue to deliver benefits for residents even in a time of enormous turmoil for local economies and housing markets.

2006 Award Winner: Chicago--Troubled Buildings Initiative

When Chicago's Troubled Buildings Initiative was honored with an Award for Municipal Excellence in 2006, the city was well in reach of its goal to save 3,000 units of multi-family housing from deterioration and loss by the end of that year. Now it's three years later, and the initiative has saved 6,700 multi-family units--more than twice the original goal. Combined with a companion effort that has saved more than 750 single-family homes (and counting), the Troubled Buildings Initiative is yielding visible improvements in neighborhoods across the city.

"These units have gone from being a hazard and an eyesore to becoming affordable, quality homes that provide a good example as neighbors invest to improve their own properties," said Mark Roschen, who coordinates the initiative for the city.

The Troubled Buildings Initiative is based on the belief that preventing deterioration of housing is the city's first line of defense in the fight to preserve and restore neighborhoods. Before the launch of the initiative in 2003, Chicago's efforts to deal with the problem of troubled buildings were focused primarily on code enforcement, with little attention to making sure buildings could be fixed up and preserved for the long haul. There was also little consideration of how restored buildings can have a revitalizing effect on their surrounding communities.

"These troubled buildings often become magnets for drug dealing and crime, gang activity and other problems," said Roschen. "To the extent that we can turn these buildings into quality, affordable housing, then we're well on our way to building safer, more resilient neighborhoods."

According to Roschen, Chicago uses Community Development Block Grant (CDBG) funds to help defray the administrative costs of the program and to cover expenses that range from building operating costs to fees for court-appointed receivers. He attributes the continuing success of the program to a high level of cooperation and coordination across city government. In all, the program mobilizes the resources and expertise of eight city departments, including everything from police, law and housing to water, planning and sanitation.

Like other cities, Chicago has seen an increase in troubled buildings in recent years due to the recession. Roschen said the Troubled Buildings Initiative has proved an essential tool as the city has tried to keep a growing foreclosure rate from placing more and more neighborhoods at risk.

For more information, go to http://egov.cityofchicago.org.

1998 Award Winner: Gastonia, N.C.--Vance Street Project

In 1994, the city of Gastonia purchased 52 multifamily housing units and 30 single-family rental units in a neighborhood that was reeling from high rates of crime and violence. Seeking to revitalize the neighborhood and make it safer for residents, the city tore down most of the homes and built new ones to sell as affordable housing.

Today, according to Annie Thombs, the city's community development administrator, all of the new and rehabilitated homes, except perhaps two or three, are still owned by the families and individuals who bought them from the city in the 1990s. What's more, just two of the homes have gone into foreclosure as the economy and the housing market have taken a hit in the last couple of years.

"Compared to what's happening in other parts of the city, that's incredible," Thombs said of the low foreclosure rate in the Vance Street neighborhood. "And it's a real tribute to the fact that we've been very diligent about making sure these homeowners have homes and mortgages they can afford."

A hallmark of Gastonia's Vance Street Project, Thombs pointed out, is a rigorous homebuyer education and counseling program. As part of the program, the buyers (all first-time homeowners) received a minimum eight hours of education in everything from household budgeting to securing an affordable mortgage. The city worked with lenders to make sure buyers had access to quality loan products, and city counselors followed buyers through the entire home-buying process.

The city has four certified homeowner counselors on staff, according to Thombs, and each applicant received one-on-one counseling.

"The eight hours of homeowner education really doesn't come close to describing the level of support that these homeowners received," she said. "From the start, we knew that the only way we could be successful would be to make sure that every homeowner was getting the support they needed to make this work."

Thombs said the Vance Street Project was funded by a Section 108 loan from the U.S. Department of Housing and Urban Development, plus CDBG funds and other grants. With the sale of the homes, the city "basically broke even" on its contribution of infrastructure improvements (such as cul de sacs, repaved streets, new water and sewer service), Thombs said. As part of the project, 60 families who formerly lived in the dilapidated properties were relocated to quality affordable housing in locations throughout the city.

Thombs said the city-built housing development (called "Merritt on Floyd") is now part of a neighborhood characterized by manicured lawns and well-kept homes.

"This neighborhood experienced a 180-degree turn because of this project," She said, calling it "one of the most successful things this city has done."

For more information, go to www.cityofgastonia.com.

2007 Award Winner: Milwaukee--Lapham Park Venture

As the federal and state governments continue to investigate ways to hold down health care costs, they might want to look at what is happening in the bottom floor of a public housing development in Milwaukee. That's where more than 200 low-and moderate-income seniors who live in the Lapham Park high-rise have access to long-term health care services that would otherwise be available only in a nursing home setting.

The Lapham Park Venture was the first assisted-living facility within a public housing development in the nation--a distinction that earned it a 2007 Award for Municipal Excellence. According to Ken Barbeau, director of community programs and services with the City of Milwaukee, the project continues to provide a cost-effective alternative to nursing home care for Lapham Park residents in 2009.

"It's good for the city, good for the residents, and good for everyone involved," said Barbeau, noting that 75 percent of Lapham Park residents have all of their health care needs met at the in-house facility, which was designed to resemble a 1930s Milwaukee streetscape. In all, the Lapham Park Venture has reduced Medicaid nursing home costs by $1 million per year.

Created in 1991, the Lapham Park Venture is the product of public, private and nonprofit investments. Milwaukee's Housing Authority provides the building space, managed the renovations, and collaborates with program partners in the delivery of services to residents. With funding from the Medicare and Medicaid programs, a local nonprofit service agency, Community Care, provides community-based, long-term care services to residents who would otherwise qualify for nursing home care.

The Milwaukee County Department on Aging funds a meal program, transportation for residents and case management services, which are provided by SET Ministry, a local health and human service agency. Plus, all residents have access to on-site physician services provided by Columbia-St. Mary's, a local chain of hospitals, clinics and other health providers.

Barbeau said that Milwaukee is currently seeking federal stimulus dollars through the U.S. Department of Housing and Urban Development to improve accessibility and bring other improvements to the units at Lapham Park.

He added that the Lapham Park model of merging public housing and assisted living has been such a success that the city is expanding the idea to other developments. Later this year, for example, the city will be demolishing the 11-story Becher Court tower built in the 1960s as a residence for low-income seniors. It will be replaced by a six-story complex featuring a dining facility and kitchen, activity and community rooms, and 24-hour nursing and residential care to those who need it.

For more information, go to www.hacm.org/programs/lap ham_park_venture.htm.

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