CDBG FY11 CONSOLIDATED ANNUAL PERFORMANCE EVALUATION REPORTCONSOLIDATED ANNUAL PERFORMANCE
AND EVALUATION REPORT
CITY OF SALEM, MASSACHUSETTS
Fiscal Year 2011
July 1, 2010 to June 30, 2011
Kimberley Driscoll, Mayor
Lynn Goonin Duncan, AICP, DPCD Director
Jane A. Guy, Assistant Community Development Director
EXECUTIVE SUMMARY
Throughout the many years of the City of Salem’s Community Development Block Grant Program
(CDBG), significant improvements have been made to the City’s physical and social environment
for its low- and moderate-income residents. The CDBG program has made a strong impact in
Salem, as seen through the numerous homes rehabilitated, neighborhood facilities and infrastructure
improved, businesses strengthened, jobs created and families served through our public service
agencies.
During Fiscal Year 2011, we expended $1,453,154.17 in CDBG funds to assist our low- and
moderate-income residents. The focus of the program continued to target affordable housing
programs, neighborhood improvements, public service programs, and economic development
initiatives. In addition to CDBG funds, we expended $243,982 in HOME funds - including $5,169
in American Dream Downpayment Initiative (ADDI) funds, exhausting the remaining funds for
which Salem had contracted from a prior year with the North Shore HOME Consortium to use to
assist first time homebuyers.
The FY11 Consolidated Annual Performance and Evaluation Report (CAPER) provides an analysis
of the first fiscal year - July 1, 2010 through June 30, 2011 - of the City’s 5-Year Consolidated Plan
completed in 2010. This report is an opportunity to demonstrate our progress and report our
successes over the past fiscal year and to inform the community of how federal and local programs
are making a difference in the lives of low- and moderate-income residents throughout Salem.
Overview
Overall, we made notable progress during the past fiscal year. As this report indicates, we made a
significant advancement in meeting the goals and objectives stated in the 5-Year Consolidated Plan
and FY11 Action Plan. We also continued to meet HUD required funding and expenditure caps
and timeliness requirements.
We use various indicators to measure our success. In our housing programs, we continue to attract
first time homebuyers in neighborhoods throughout the city, improve housing conditions, help
renters move into decent, affordable housing and work toward increasing our affordable housing
stock. Our economic development programs continue to attract new businesses that create jobs in
our city and to improve existing businesses that retain jobs and enhance economic vibrancy. Public
service agencies continue to reach our low- to moderate-income residents with their valuable
programs that work toward family self-sufficiency. Finally, our neighborhood improvement projects
made visible changes to areas in the City of greatest need and helped all residents gain access to both
public and private services. Perhaps the greatest indicator of our success is illustrated in the positive
feedback we receive from those affected by our programs.
Organization of the Report
In this report, we included data to fulfill HUD requirements, as well as information that may be of
interest to our residents. The CAPER is broken up into four sections—Assessment of Goals and
Objectives, Supplementary Narratives, Funds Leveraged, and Citizen Participation Summary—in
order to provide residents with an overview of our accomplishments and allow readers to track our
progress throughout the fiscal year.
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Assessment of Goals and Objectives – Throughout this section we provide a summary of our
accomplishments over the past fiscal year, including a summary of our expenditures. It provides
an overview of each program area including an assessment of goals and how activities met the
objectives laid out in the Consolidated Plan.
Supplementary Narratives – As part of our reporting requirements for HUD, we must answer
certain questions regarding our program expenditures and activities. In this section, we provide
supplementary narratives that provide answers to these questions.
Funds Leveraged – Another measure of the success of our program is the funds we leverage with
our federal grants. This section includes a table outlining the funds leveraged from CDBG and
HOME.
Citizen Participation Summary – In this section, we outline how we solicit public comment on our
programs and list the comments heard, if any, during the Public Comment Period, along with
our response to those comments.
The Appendix includes maps, a Financial Summary and tables and spreadsheets to help illustrate
program expenditures and progress.
Contact Information
We are always open to feedback on our progress, as well as to answer questions regarding any of our
programs mentioned in this report. If you would like more information please contact the
Department of Planning and Community Development at 978-619-5685.
CAPER finalization date – September 28, 2011
TABLE OF CONTENTS
INTRODUCTION ..................................................................................................................................................1
Assessment of Goals and Objectives..............................................................................................................3
Affordable Housing Programs................................................................................................................4
Public Services.........................................................................................................................................14
Economic Development........................................................................................................................18
Neighborhood Improvements ..............................................................................................................21
Planning & Administration....................................................................................................................23
Other Actions..........................................................................................................................................24
Summary/Program Evaluation/Conclusions.....................................................................................28
Supplementary Narratives...............................................................................................................................30
Funds Leveraged..............................................................................................................................................33
Citizen Participation Summary ......................................................................................................................35
Appendix
Financial Summary
Progress of Consolidated Plan 5-Year Goals
IDIS Report PR23 Excerpts
Total CDBG Beneficiaries by Racial/Ethnic Category
CDBG Beneficiaries by Income Category
IDIS PR54
Maps
Section 3 Report
Cover photo: Salem Harborwalk along South River, July, 2010
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INTRODUCTION
The Consolidated Annual Performance and Evaluation Report (CAPER) is a summary of the annual
accomplishments produced by the City of Salem and its community partners, as the goals and
objectives of the 5-Year Consolidated Plan (Fiscal Years 2011-2015 (FY11-15)) were implemented.
The current 5-Year Consolidated Plan began on July 1, 2010. The FY11 CAPER provides an
analysis of the first fiscal year of the 5-Year Consolidated Plan — July 1, 2010 through June 30,
2011.
Program Goals
One of the overarching goals of the City of Salem is to provide a healthy, affordable and accessible
community for its residents to live and work and for its businesses to thrive. To accomplish this
goal, the City uses grants from the U.S. Department of Housing and Urban Development (HUD)—
Community Development Block Grant (CDBG) and Home Investment Partnership Program
(HOME)—which are administered through the Department of Planning and Community
Development (DPCD). The following describes each of the grants and their program objectives.
CDBG is a formula-based program designed to develop viable urban communities by
providing decent housing, a suitable living environment, and expanding economic
opportunities for persons of low- and moderate-income 1 .
HOME is a formula-based program for expanding and improving the supply of decent, safe
and affordable housing for low- and moderate-income persons.
These resources fund a wide range of projects designed to develop and maintain affordable housing,
improve neighborhood public facilities, provide economic opportunities, improve access to public
facilities for people with disabilities, provide critical public services, assist people who are homeless,
and prevent homelessness.
Importance of the Consolidated Plan, Annual Action Plan, and CAPER
In a streamlining effort initiated in the mid-1990s, HUD consolidated the various planning efforts
required by the National Affordable Housing Act of 1990 and the Housing and Community
Development Act of 1992. A Consolidated Plan for Housing and Community Development
(Consolidated Plan) must be prepared every five years in order to receive CDBG and HOME funds
from HUD. Prior to the start of each fiscal year within the five-year Consolidated Plan period, an
Annual Action Plan must also be prepared which lists the specific projects that will be undertaken
with CDBG and HOME funds during that year.
In addition to streamlining planning efforts, HUD also streamlined reporting requirements through
the development of the Consolidated Annual Performance and Evaluation Report (CAPER). The
CAPER must be prepared annually and must describe how CDBG and HOME program activities
address goals and objectives identified in the Consolidated Plan.
This approach to planning and reporting eliminates duplication in preparing separate applications
and reports that, in turn, require multiple planning, development and citizen participation meetings
throughout the year. More importantly, the Consolidated Plan, Annual Action Plan, and CAPER
provide a comprehensive analysis of community needs, identify goals, and lay out objectives that will
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1 Low- to moderate- income individuals equals less than 50 or 80 percent of the Boston area median income respectively.
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be undertaken to address those needs, as well as provide a mechanism for reporting
accomplishments.
The Consolidated Plan, Annual Action Plan, and the CAPER provide a means to evaluate each
community’s situation and determine the most effective ways to use funds received from HUD. The
Consolidated Plan establishes a vision for attaining a higher quality of life for low- and moderate-
income residents, the Annual Action Plan outlines specific activities that work toward accomplishing
that vision, and the CAPER measures the success in achieving that vision.
Fall, 2010 MediClerk Students
ASSESSMENT OF GOALS AND OBJECTIVES
During FY11, the DPCD continued to make significant progress toward meeting the goals and
objectives laid out in the 5-Year Consolidated Plan and FY11 Action Plan. The CDBG entitlement
funds from HUD for the fiscal year was $1,125,447 and program income received during the
program year was $151,366.03. Our HOME funding allocation was $208,768. We also used any
available carried over CDBG, HOME and ADDI funds from prior years.
CDBG Expenditures
In FY11, we expended a total of $1,453,154.17 in CDBG funds. Expenditures were divided into five
program areas — Affordable Housing, Neighborhood Improvements, Planning & Administration,
Public Services and Economic Development. In FY11, we met all timeliness requirements and
program expenditures were consistent with our 5-Year Consolidated Plan and FY11 Action Plan
goals. Furthermore, Public Service programs were at 15 percent, the maximum allowable for such
activities, and we did not exceed the 20 percent Administration spending cap. In the Financial
Summary tables found in each program area, “funding available” indicates the total CDBG funds
available during the fiscal year, including FY11 and prior year carried over funds+/- any adjustments
made during the year.
HOME Expenditures
In addition to CDBG funds, the DPCD also spent $243,982 in HOME funds to undertake
affordable housing activities (including $5,169 in ADDI funds). When added to the $510,971.21
spent in CDBG funds for affordable housing programs, the total amount spent for housing
programs is $754,953.21 – representing the highest level of funding for any of our funding
categories. The City of Salem is a member of the North Shore HOME Consortium and the specific
accomplishments of HOME activities are reported to HUD through the Consortium by the City of
Peabody. However, a summary of our activities are reported throughout this document.
Program Accomplishments
Overall, we were on target in meeting our Consolidated Plan goals and objectives. The
following sections provide a summary of accomplishments for each of our program areas and
evaluate our progress
based on the needs
outlined in the 5 Year
Consolidated Plan and
FY11 Action Plan. The
final section provides
an overall evaluation of
our programs. The
Financial Summary of
our expenditures found
in the Appendix
illustrates our
compliance with
program expenditure
caps as well as
expenditures by
category (see Figure 1).
FY10 CDBG, HOME/ADDI Expenditures by Category
Neighborhood
Improvements
19%
Affordable
Housing
47%
Economic
Development
10%
Public Services
11%
Planning &
Administration
13%
Fig. 1 FY11 Spending by Category,
as a Percentage of Total CDBG, HOME/ADDI Expenditures
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AFFORDABLE HOUSING PROGRAMS
Due to the high cost of housing in
Massachusetts and the high rate of
foreclosures, we continue to place
the creation and preservation of
affordable housing as the highest
priority of Salem’s CDBG and
HOME. The City of Salem has a
number of services that address
housing issues including
rehabilitating and maintaining
current housing stock, developing
new housing opportunities,
assisting families in acquiring
housing and enabling struggling
families to remain in their homes. Before and After of 155 Bridge Street with owner Charles Reardon.
In FY11, the City of Salem spent $754,953.21 in CDBG, HOME and ADDI funds on affordable
housing projects and programs. The project accomplishments attained with these funds during
FY11 are described in the following table.
Table 1: FY11 Housing Financial Summary
Project Project Description Funding Available 2 Status
First Time
Homebuyer
Program
Provides 0% interest deferred
payment loans to low- to
moderate-income families that
wish to purchase a home in the
City of Salem.
$48,775 HOME
$5,169 ADDI
$48,775 HOME funds spent
$5,169 ADDI funds spent
7 Salem families assisted
9 total units
Housing
Rehabilitation
Loan
Program
Provides a combination of
technical and financial assistance to
help Salem’s low- to moderate-
income homeowners and landlords
make much needed improvements
to their properties.
$488,803.95 CDBG
$54,350.00 HOME
(does not include
program income,
unprogrammed or
carried over funds)
$399,921.45 CDBG funds
spent
$54,350 HOME funds spent
17 units improved (15
owners)
3 additional units underway
(3 CDBG projects)
Rental
Assistance
Programs
Rental Downpayment Assistance
Program - funds are used to help
low- and extremely low-income
Salem residents move into decent,
affordable rental units. Programs
are administered through NSCAP,
HAWC and the Salvation Army.
$215,911.37 in open
HOME Contracts
$105,549.50 in HOME funds
spent
47 families assisted thru
Rental Downpayment
Program Assistance
2 “Funding available” indicates the total funds available during the fiscal year, including FY11 and prior year carried over funds+/-
any adjustments made during the year.
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Project Project Description Funding Available 3 Status
HAWC Tenant Based Rental Assistance $10,000.00
$10,000 added to existing
N. S. HOME Consortium
contract (accomplishments
to be reported by the
Consortium)
Housing
Program
Delivery
Costs associated with providing
rehabilitation programs &
inspectional services.
$121,384.76 CDBG
$20,138.50 HOME
$855 Get the Lead
Out Program
$111,049.76 in CDBG funds,
$20,138.50 in HOME and
$855 in GTLO funds for
housing program delivery
and inspectional services,
including lead inspection
Other Priority Housing Strategies
In addition to the projects listed above that were undertaken with CDBG and HOME program
funds, we also worked on the development of our other priority housing strategies listed in the
Consolidated Plan and the FY11 Action Plan. The following discusses the status of these projects
and the steps taken to achieve these strategies.
Producing New Housing Units
Salem consistently provides support toward the creation of new affordable housing units
through the conversion of old, abandoned or underutilized buildings and parcels into new
residential housing units. For example, the City has committed funding to develop affordable
housing units at the former St. Joseph’s Church site. The Planning Office for Urban Affairs
(POUA) is the developer. The proposed project includes the razing of the former church and
convent building, the renovation of the former rectory and school buildings and the
construction of a new four-story building on the site. The mixed-use development will include
76 dwelling units (51 in the new building, up to 25 in the renovated school and rectory), 4,400
s.f. of commercial space and a neighborhood community center. The 51 units in the new
building are the first phase of the development and consist of affordable rental units. The City
has committed $300,000 of CDBG/HOME funds towards the redevelopment project. In
addition, $1 Million in PWED funds have been allocated for traffic and infrastructure
improvements to the adjacent intersection, for which the City has allocated approximately
$185,000 in matching funds. These funds were leveraged by and will benefit the St. Joseph’s
Redevelopment. The development was recently awarded funding through DHCD’s One Stop
Funds Program, enabling the project to finally move forward. Other funding sources for the
project include funds from the North Shore HOME Consortium
An Affordable Housing Fund
In 2003, the City entered into a Memorandum of Agreement with a housing developer which
resulted in a $50,000 contribution in 2005 for affordable housing activities. The City Council
created an Affordable Housing Trust at the end of 2006 to create and preserve affordable
housing. The first meeting of the Trust took place in March, 2007, and the Trust continues to
meet as needed. The City continues to negotiate with developers on a case by case basis for
3 “Funding available” indicates the total funds available during the fiscal year, including FY11 and prior year carried over funds+/-
any adjustments made during the year.
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affordable units or a contribution to the Trust. The Trust has contributed $25,000 to Salem
Lafayette Development as predevelopment funding for the St. Joseph’s Church redevelopment,
as well as $24,175 to a local shelter for ADA and safety repairs.
Preserving Existing Affordable Units
Salem has five private subsidized rental housing developments – Salem Heights, Loring Towers,
Pequot Highlands, Princeton Crossing, and Fairweather Apartments. Each of these properties
was built with the requirement that they remain affordable for a minimum of 40 years (or until
the mortgage was paid). Recently, the affordability of two of these developments was in
jeopardy. The city took the following actions:
o In February 2003, the city reached an agreement that will keep Salem Heights’ 283
apartments rented at affordable rates for 100 years.
o The City negotiated with the owners and tenants of Loring Towers, a HUD 236 property
that the owner had proposed to convert to a Low Income Housing Tax Credit (LIHTC)
project. In June 2007, in order to protect the long-term affordability, as well as the
affordability for existing tenants, the Mayor signed a 121A Agreement and entered into a
Memorandum of Understanding that will ensure that 90 percent of the 250 units will be
reserved for families and individuals at or below 60 percent AMI. Furthermore, 10 percent
will be reserved for those at or below 30 percent AMI for a period of forty years.
In addition, the Preservation of Affordable Housing (POAH) purchased Fairweather
Apartments. This purchase will ensure the continued affordability of these 127 units.
Foreclosure Prevention
Located at www.salem.com/pages/salemma_dpcd/additionalresources/other, the city’s website
contains a list of links to various resources for foreclosure prevention and legal assistance.
Additional links are added as they become known. Housing staff are contacting and offering
assistance to families threatened with the possibility of foreclosure and are maintaining a tracking
list of all pre-foreclosure, foreclosure and bank-owned properties in the city. In addition, we are
mailing information on tenant’s rights regarding displacement to renters in buildings that are on
the foreclosure tracking list.
The City encourages first-time homebuyers to complete a certified homebuyer education course,
such as the one funded with CDBG funds through Community Teamwork, Inc. Furthermore,
the City continues to fund homeless prevention programs through Catholic Charities, Salvation
Army, NSCAP and Healing Abuse Working for Change (HAWC). These programs provide
emergency financial assistance to prevent eviction.
Eliminating Vacancies as a Result of Foreclosure
Foreclosure often results in families being displaced from their home. Foreclosures also result in
an increased demand for affordable rental units by both the former homeowner and by any
displaced tenants. In addition, foreclosure can result in vacant buildings, which can have a
deteriorating effect on neighborhoods.
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The following chart shows the number of Foreclosure Deeds (properties that became bank-
owned) in Salem for the past four complete calendar years4 .
YEAR 1-FAMILY CONDO ALL
2010 18 33 64
2009 19 25 62
2008 19 32 73
2007 18 25 55
The City continues to fund Rental Downpayment Assistance programs at Salvation Army,
NSCAP and HAWC to provide first/last month’s rent and security which can be used by
displaced families. The city monitors vacant, abandoned and problem properties through
collaborative efforts between the Health Inspector, Fire Chief, Building Inspector, City Solicitor
and Housing Coordinator and has mapped those properties in GIS. Abutters of bank-owned
properties are sent letters asking them to be observant and report problems.
The City’s First-Time Homebuyer Downpayment Assistance Loan Program is available to first-
time buyers who hope to take advantage of the lower price that they may get by purchasing a
foreclosed upon home. The City’s Housing Rehabilitation Loan Program is available to investors
who purchase foreclosed properties so that they can bring the property up to code and turn
them into affordable rental units.
An important part of the City’s recovery and revitalization efforts is helping to re-occupy and
repair foreclosed properties. From August, 2007 through June, 2011, the City helped a total of
fourteen homebuyers to purchase bank-owned properties, with approximately $134,000 in
downpayment assistance. In addition, the City has aided four homebuyers and investors who
have purchased foreclosed properties in making repairs through the Housing Rehabilitation
Loan Program. As part of the program, any renovated rental units are restricted to affordable
rents and must be occupied by low- to moderate-income households for a period of 15 years.
Improving Public Housing
The Salem Housing Authority continues to manage and maintain its 715 units of elderly, family,
and handicapped housing stock. Modernization work is progressing through funding of
applications made by the SHA to Massachusetts Department of Housing and Community
Development and to HUD. The following modernization work is underway or expected to
begin in FY11:
$225,000 elevator replacement at the Morency Manor elderly housing development;
$200,000 elevator replacement project at the Phillips House family handicapped housing
development;
$38,000 flashing repair project at the 27 Charter Street elderly housing development
$661,000 heating system upgrade project at the 197 public housing units at Garden
Terrace, 117 Congress Street, 26 Prince Street, 33 Park Street and Farrell Court family
housing developments as well as Leefort Terrace, Morency Manor and the Dalton
Building elderly housing; and,
$220,000 door replacement and related work at the Leefort Terrace elderly housing
development.
4 The Warren Group, “Foreclosure Stats”, www.thewarrengroup.com.
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Providing Expanded First Time Homebuyers Assistance
The City continues its goal to provide families with the opportunity to own their first home.
One of the most popular programs the City operates is the First-Time Homebuyer
Downpayment Assistance Loan Program (FTHB). In addition to basic downpayment assistance,
the program offers a $1,000 increase over the maximum loan amount for homeowners who
complete First-Time Homebuyer Counseling through a qualified training program.
In addition to administering the City’s First-Time Homebuyer Downpayment Assistance Loan
Program, DPCD staff provides assistance to coordinate other resources for down payment
assistance, such as Massachusetts Housing Partnership (MHP) SoftSecond Loan program and a
variety of homeownership programs offered by MassHousing, as well as supporting first-time
homebuyer education workshops provided by the Community Teamwork, Inc.
Providing Assistance to Renters
The city continues its commitment to assist families with Rental Downpayment Assistance (first
and last month’s rent and security deposit) in order to provide families with the funds necessary
to secure housing. The program is an important tool for helping families with the cost of
moving into a decent apartment.
Rehabilitation of Existing Housing
The majority of the housing stock in the city was built prior to 1949. While older homes are an
integral part of Salem's history and neighborhood fabric, they also require a great deal of
maintenance and may not meet current building codes. In response to this issue, the city
administers a Housing Rehabilitation Loan Program to provide low-interest loans to owners of
single and multi-family properties to address cost-prohibitive health and safety issues. Through
the rehabilitation of existing housing stock, more homeowners, as well as tenants residing in
rental units, can live in decent housing. The program is also available to investor-owners with
low- to moderate-income tenants, to address code compliance and health and safety issues and
to maintain affordable, quality rental properties and to discourage the conversion of affordable
rental units into market rate condominiums.
In addition, the City offers deleading assistance for homeowners through MassHousing’s Get the
Lead Out Program. This program can be combined with the City’s Housing Rehabilitation Loan
Program. As a Local Rehabilitation Agency (LRA) for the Get the Lead Out Program, the City
is responsible for intake of application information, technical assistance, working with the
applicant through the construction process and acting as the escrow agent for the loan funds.
Work Regionally to Increase the Supply of Housing
The housing market operates regionally and the impact of the market is not confined to city
boundaries. Salem has more affordable housing than many cities in the region. At 12.9 percent,
Salem has the second highest percentage of affordable housing of the 30 cities and towns in the
North Shore Home Consortium. However, multi-jurisdiction cooperation is needed to address
the region’s lack of affordable housing opportunities. No one city or town can, or should, bear
the responsibility of providing all of the region’s affordable units. Salem is committed to
working with its partners in the North Shore HOME Consortium and with the region’s mayors
to encourage the development of housing throughout the area in an effort to increase the supply
of housing for all.
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Affirmatively Furthering Fair Housing
The North Shore HOME Consortium, through Western Economic Services, LLC, updated the
Analysis of Impediments to Fair Housing Choice (AI) in 2007-2008, of which the complete AI is
included by reference. The AI covers all communities in the NS HOME consortium, including the
City of Salem. As part of the research process, the consultant reviewed available data from the U.S.
Census Bureau, HMDA data and discrimination complaint logs. Furthermore, the consultant
conducted public forums and phone interviews of interested parties including, but not limited to:
service providers, real estate professionals, property managers, lenders, local officials and staff.
Many of the organizations contacted for interviews are located in Salem and/or operate in the city.
The City of Salem’s Affordable Housing Trust Fund Board provided a letter, dated January 8, 2008,
commenting on the Draft AI. The final AI did not identify any specific actions for Salem to
undertake in order to overcome the effects of any impediments identified through that analysis. It
did recommend that the Consortium consider taking the following actions:
1. Assist in improving awareness of fair housing law
2. Assist in improving understanding of available fair housing services
3. Assist in improving fair housing delivery system
4. To counteract high denial rates, consider implementing first-time homebuyer training
program targeted at particular types of consumers
5. Incorporate more formalized elements of fair housing planning in Consolidated Plan
6. To aid in expanding awareness of inclusive land use policies, the Consortium might wish to
consider extending fair housing training to the area’s boards and commissions, as well as public
and elected officials
7. Assist in alerting involved agencies to the prospects of their involvement in institutional
barriers that detract from affirmatively furthering fair housing or acting in the public interest of
furthering education of fair housing and the fair housing system.
The City of Salem acknowledges its responsibility to consider and address its own unique
impediments to fair housing should the Consortium’s AI insufficiently address them. In general, the
City determined that the AI was thoroughly researched and inclusive of Salem’s fair housing
concerns. While the AI established findings and recommendations on a consortium-wide basis, the
consultant noted circumstances when a community’s statistics and demographics differed from the
others. For example, the racial and ethnic makeup of residents of the consortium cities differs from
that of the suburban communities. Following are findings pertinent to Salem:
Salem has high ethnic and minority concentrations in some neighborhoods.
Salem has a high proportion of lower-income households compared to other communities.
People living in Salem with disabilities are not concentrated in one area.
While mortgage denials are higher in some neighborhoods than others, Salem has
proportionately fewer residents who were denied mortgage loans than areas in other consortium
communities. (Note: While the trend holds, the number of sub-prime loans denied to Salem
residents was higher than loans from prime lenders.)
Salem has lower levels of homeownership than other consortium communities; this is
primarily due to the diversity of Salem’s housing stock.
The City has used the Consortium’s AI and its own experience to inform its approach to
affirmatively furthering fair housing. City staff are regularly informed about fair housing-related
issues and concerns through their interactions with the public and local organizations. While the
consultant identified various impediments to fair housing choice for the consortium as a whole, City
staff with their intimate knowledge and experience of the city’s dynamics and neighborhoods, and
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through information gathered for the city’s FY2005 and FY2011 Five Year Consolidated Plans, has
determined that the following selected impediments, excerpted from the AI, are relevant to Salem:
1. Lack of awareness of fair housing rights;
2. Lack of awareness and understanding of available fair housing services;
4. High home mortgage loan denial rates for selected minorities;
5. Unlawful discrimination appears to be occurring in rental markets, particularly as it relates to
disability, familial status, and race or national origin;
7. The high concentrations of minority and disabled populations tends to support the notion
that housing location policies are not as inclusive as may be desired in affirmatively furthering
fair housing;
8. Recent case history shows that local housing authorities within the Consortium award
preference to individuals on subsidized housing waiting lists based upon local residency. This
may be viewed as an impediment to fair housing choice for individuals not residing within each
of these local communities who may wish to move to another community; furthermore, this
practice may contribute to a lack of demographic diversity within the Consortium’s thirty
communities.
Note: Establishing local preferences, including preferences for people who reside and/or work in a community,
is a common practice of housing authorities and is not specific to the City of Salem or the NS HOME
Consortium communities. This practice is acceptable to HUD.
The City of Salem acknowledges that affirmatively furthering fair housing is not limited to
addressing issues of income and housing affordability and therefore, the City’s actions to
affirmatively further fair housing are not limited to promoting affordable housing. The City of Salem
has worked and continues to work to address the impediments identified above (1, 2, 4, 5 and 7), by
carrying out the following activities:
Local officials receive training so they understand the Fair Housing Law and can educate
others: In 2009, the City’s Assistant Community Development Director, the Housing
Coordinator and a board member of the City’s Affordable Housing Trust attended a Fair
Housing Training hosted by the North Shore Home Consortium and conducted by The Fair
Housing Center. Staff shared information received at the training with the remainder of the
AHTF board members. (These efforts work to address impediments 1 and 2.)
The City provides information to its residents, property owners and real estate professionals
regarding the fair housing law, including protected classes, individual rights and resources: In
January 2009, the DPCD created a separate page on the city’s website for Fair Housing and
Housing Discrimination. The page explains housing discrimination and fair housing laws and is
designed to assist consumers, real estate professionals and lenders. The page also lists resources
available to victims of discrimination. (These efforts work to address impediments 1 and 2.)
The City reaches out to potential victims of discrimination and persons who have limited
housing choice through its work with local housing and human service providers: The City of
Salem provides public service and housing assistance funding to agencies whose activities assist
specific populations with improving their quality of life. Provider assistance may include locating
appropriate and, if needed, accessible housing, as well as a range of human services. Providers
regularly interact with minority, disabled and low-income populations. These interactions
present opportunities for providers to understand their clients’ housing concerns and to assist
them in cases of discrimination. Therefore, it is critical that providers understand the fair
housing laws and available resources for addressing fair housing issues. To this end, the City’s
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community development staff provide technical assistance and guidance to local housing and
service providers.
In addition, the City directs its CDBG funding to programs that promote fair housing through
the provision of other services. For example, the City funds the Independent Living Center’s
Accessible Housing Education Services Program. Furthermore, the city requires all sub-
recipients to comply with the Fair Housing Act. (These efforts work to address impediments 1,
2, 4, 5 and 7.)
The City calls attention to local housing issues and encourages people, organizations and
agencies to work together to address them: In light of recent changes in lending practices and
increases in foreclosures, in April 2009, the City’s Affordable Housing Task Force sponsored a
Housing Summit to provide a forum for discussing the housing challenges facing Salem. Over
30 people attended the summit including: Affordable Housing Task Force board members, real
estate professionals, directors of local non-profits, regional planners and other housing
advocates. Recommendations from the meeting included that the AHTF work with the local
landlord association to increase awareness of fair housing laws, and specifically, discrimination
against families. In addition, it was recommended that the AHTF board work with
neighborhood associations and the public to further fair housing and advocate for universal
design standards for accessibility.
In addition, the City of Salem administers Salem HOPE, a networking group of social service
providers that meets quarterly at rotating public service agency locations. It is open to all social
service agency representatives serving Salem residents and is a forum to work toward filling gaps
in services and sharing insights and concerns. Members often discuss issues that have arisen
(including those relating to housing, employment and disabilities) and providers have the
opportunity to coordinate efforts. (These efforts work to address impediments 1, 2, 4, 5 and 7.)
The City takes advantage of opportunities to interact directly with the public to promote
awareness of fair housing laws and available resources that work toward the intent of fair
housing: The City’s housing staff regularly participate in homebuyer fairs held by lending
institutions and real estate professionals. At these fairs, the City provides information and
counseling to attendees regarding its first-time homebuyer, rehabilitation and deleading
programs. In addition, staff disseminate information regarding the fair housing law, including
protected classes, typical violations and resources available to victims of discrimination. This is
an opportunity for staff to talk one-on-one with residents who may be victims of discrimination
in lending and/or victims of steering. By speaking with people first-hand, staff are able to learn
about the fair housing climate in the city and identify fair housing issues. Most recently, staff
presented at in October, 2010 at a workshop held at the Senior Center by Tache Realty and
Union Trust Mortgage Company. (These efforts work to address impediments 1, 2, 4 and 7.)
The City creates partnerships with local organizations to educate minority and low-income
homebuyers about their rights under the fair housing law: The City provides financial assistance
to Community Teamwork, Inc., a nonprofit organization that conducts CHAPA-certified, first
time homebuyer educational courses. These courses are held primarily in the Point
Neighborhood, where Salem has its highest concentration of racial and ethnic minorities.
Among other things, courses inform participants about their rights when working with real
estate agents and lenders. The program covers fair housing issues and what to do if someone is a
victim of discrimination. In addition, the program covers the responsibilities of landlords under
12
fair housing laws. Most recently, Community Teamwork has conducted training sessions in
September 2009, June 2010 and in March, 2011. City housing staff gave presentations during a
class for two of these training sessions. (These efforts work to address impediments 1, 2 and 4.)
The City of Salem has also examined issues pertaining to fair housing directly through its
consolidated planning processes in 2005 and 2010. During this planning, the City held a series of
public meetings and interviews with neighborhood groups, service providers, business associations
and housing professionals. Participants were asked to comment on fair housing and discrimination
in the city. Perhaps surprisingly, these discussions did not point to any particularly unique
impediments to fair housing.
In addition, we have reviewed the following possible impediments and provide our perspective on
them as follows:
Whether subsidized and affordable housing is concentrated in minority areas - Salem has one of the
largest inventories of subsidized and affordable housing in the consortium. Salem’s subsidized
and affordable housing is located citywide, including in some of Salem’s areas of minority
concentration (see “Subsidized Housing Inventory” map located in Salem’s 2010 Consolidated
Plan). The City does not conclude that its subsidized and affordable housing is
disproportionately located in areas of minority concentration to a degree that presents an
impediment to fair housing choice.
Lending, mortgage availability, and foreclosure issues affecting minority homebuyers - Salem property
owners have been greatly affected by the downturn in the housing market and the prevalence of
foreclosures. Foreclosures have occurred citywide (see map “Mortgage Foreclosures” located in
Salem’s 2010 Consolidated Plan). It is clear from this map that as of January 2010, foreclosures
are not concentrated in areas of minority concentration. The NS HOME Consortium analyzed
the level of mortgage denial in each of its communities by block group. While denial rates were
higher in Salem’s minority block groups, they were within the overall average of all loan denials
in all consortium communities, and therefore we cannot conclude this to be an impediment at
this time.
Neighborhood objections and zoning restrictions limiting the availability of supportive housing for persons
with disabilities - As part of its 2010 Consolidated Planning process, Salem reviewed its zoning
bylaw to identify barriers to affordable housing. This review determined that as the city is
nearing build-out, it is essential to preserve existing affordable units and encourage high density
and affordable housing in appropriate areas. Salem has not experienced neighborhood objection
and zoning practices that limit development of supportive housing for persons with disabilities,
specifically.
Availability of accessible housing units for disabled persons - Salem is one of the region’s providers of
services for persons with disabilities and, as one of the region’s suppliers of subsidized housing
also is a provider of its affordable, accessible housing. While the consortium’s AI notes that
Salem does not have a disproportionate share of persons with disabilities living in the city, there
are concentrations in some neighborhoods. The City acknowledges the need to examine, on an
ongoing basis, whether accessible alternatives are sufficiently available to meet demand. In
addition, priority on the Salem’s Housing Rehabilitation Loan Program wait list is given to
persons who need home modifications to accommodate accessibility needs.
Issues affecting persons with limited English proficiency (LEP issues) - Given the ethnic diversity in
Salem, the City continually works to face the challenge of how to serve its non-English speaking
residents. In addition to language barriers, often there are cultural barriers that make it difficult
to reach out to people who may benefit from social services, may have housing issues, or may
experience discrimination. The City translates several of its public notices into Spanish. In
13
addition, service providers receiving CDBG funds must provide translated information in their
marketing materials into a language that best serves the needs of their clientele. Most providers
translate materials into Spanish, Portuguese or Russian. Furthermore, three DPCD employees
(including one of our two housing staff and our Economic Development Planner) are bilingual
(Spanish/English). This not only helps break language barriers, but also helps with cultural
barriers.
Willingness of landlords to rent to families with children - The consortium’s AI identifies
discrimination in rental housing as one of the impediments to fair housing in the region. Salem’s
housing stock is old and lead paint is prevalent. This presents a concern to landlords who may
otherwise rent units to families with children. One of the ways the City of Salem works to
address this is by operating a deleading assistance program that offers financial assistance to
property owners to remove lead paint from their properties.
The City acknowledges that given the ethnic and racial composition of its population, age of housing
stock and prevalence of renter housing, it must examine the potential for housing discrimination and
submit any known AI issues exclusive to Salem during the development of the next Consortium AI,
as well as the actions it is undertaking to address them. Salem will also continue to work with the
Consortium to identify and address fair housing issues and impediments both for the city and the
region. We will continue to monitor our programs and look for new ways to further fair housing.
Continuum of Care
During FY11, the city continued to support local agencies that provide direct assistance to homeless
families and individuals in Salem, such as Lifebridge (formerly the Salem Mission) and HAWC, and
to agencies that help households avoid homelessness. Agencies funded and their accomplishments
are provided in the Table 1 above, as well as in the Public Services Section of this report. It should
be noted that 156 persons avoided homelessness through city-funded Homeless Prevention and
Transitional Housing Programs (reported in Public Services). The city also continues to be a
member of the local Continuum of Care Alliance administered by the North Shore HOME
Consortium. An overview of the activities of the Alliance can be found in the CAPER submitted by
the North Shore HOME Consortium (through the City of Peabody).
Evaluation of Goals
This year, we did not meet our estimate to assist 16 households to purchase their first home. This
year, only 7 income-eligible families applied for First Time Homebuyer Loan funds, entered into
purchase and sale agreements and received primary mortgages.
The Housing Rehabilitation Loan Program continues to assist families in need and to exceed the
goals laid out in the Consolidated Plan. In FY11, we exceeded our Action Plan goal of rehabilitating
8 housing units, with 17 units completed and 3 more underway.
The Rental Downpayment Assistance Program, administered through local social service agencies to
provide grants to low- and extremely low-income Salem residents to help pay first and last month’s
rents and security deposits to enable them to obtain decent, affordable housing, has also been a
success. The FY11 Action Plan projected that up to 75 households would be assisted; 47 families
were assisted through contracts with North Shore Community Action Program, Inc., the Salvation
Army and HAWC.
Finally, we continue to place importance on the ongoing review and update of our program policies
and guidelines. All program materials are available on the city’s website.
14
PUBLIC SERVICES
The Consolidated Plan identified the need for
various social service programs that primarily benefit
Salem’s low- to moderate-income population and
those with special needs (such as physically or
mentally disabled, elderly or frail elderly, youth, non-
English speaking residents, persons living with
HIV/AIDS, substance abusers and homeless
persons and families). In FY11, our priority goals
were to continue to support a broad range of social
service programs that are consistent with the needs
and goals identified in the Consolidated Plan and the
FY11 Action Plan. Affordable, Accessible, Available Housing Education
Workshop at the Independent Living Center of the North
Shore and Cape Ann, Inc.
According to HUD regulations, we are allowed to
commit up to 15 percent of our CDBG allocation to public service activities. In FY11, as in past
years, our agencies expended just under that limit. These public service activities provide direct
benefit to our low- and moderate-income residents; therefore it is important to continue funding at
this level.
Public service projects funded during FY11 were selected using a Request for Proposals (RFP)
process. The Citizen Advisory Committee reviewed all applications received, using criteria that
included project eligibility and documented need for services. Recommendations on funding levels
were provided to the Mayor following this review.
In FY11, we were able to expend $204,547.49 on 38 open public service contracts, which, in turn,
assisted 11,895 people, including at least 944 children/youth and 378 seniors (see Table 2 for Active
Projects).
Table2: FY11 Public Services Financial Summary
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted Program Impact
Bentley Elementary School
After School Program $5,000.00,$4,784.78 88 youth
Provided after school activities including,
games, hip-hop, yoga, drama, basketball
and other social, educational and/or
athletic activities.
Salem Community Child Care
$10,000.00 $10,000.00 13 youth
Provided child care for 205 days which
also helped prepare the children for first
grade.
Haven From Hunger
Food Pantry $10,000.00 $10,000.00 490 persons Provided food to 231 families through
1072 visits to the food pantry.
North Shore CDC
Community English Program $5,000 $5,000.00 49 persons
Students completed three 12-week
Community English Program training
courses.
H.A.W.C.
Children’s Program $10,000.00 $10,000.00 63 persons
Provide 30 hours of parenting group, 26
hours of domestic violence education
group and 24 hours of self-sufficiency
group.
Community Teamwork, Inc.
First Time Homebuyer Training
Program
$1,050 $140.00
4
households/
persons
One certified training course, for which
all 4 participants received certificates.
15
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted Program Impact
Lifebridge
Medical Support Services $10,000.00 $5,465.98 244
Provided health assessments, including
respiratory, blood sugar assessments,
psyche/physical intake history, referral to
detox, referral to primary care physicians,
referral to hospital/emergency room, and
flu and TB shots.
Lifebridge
Outreach Street Advocate
$407.00
FY10:
$7,200.00
FY11
$5,140.61 75 persons
Funds to engage street homeless and
connect them with supportive services.
Of the 75, 40 received basic shelter
services (food, shower, laundry), 7 were
admitted to a detoxification facility, 2
secured a shelter bed, 18 were placed
under arrest or protective custody and 2
were admitted to a mental health facility
Salem Police Department
Bicycle and Walk/Ride Patrols
$395.08
FY09;
$12,000
FY10; $2,600
FY11
$4,584.54 3,918
persons
Calls for service in the Point
Neighborhood were up 4% from last
year. Drug offenses up 14%, drunk
individuals up 55%, disorderly conduct
up 15%, assaults up 8%, public drinking
down 17%, disturbances down 13%,
loitering down 100% and noise ordinance
violations remain unchanged.
Morgan Memorial Goodwill
Industries
Career Planning Program
$226.60
FY10;
$4,300.00
FY11
$3,809.80 6 disabled
youth
Provides 30 hours of classroom training.
4 students completed the program and
received a skills interest assessment, work
readiness assessment, money skills
assessment and individualized training
and employment plan. Students filled out
at least 1 job application, did on-line job
searching and mock interviewing. 3
students worked internships and all 4 will
participate in summer internships.
Salem Access Television
Youth in Action $5,000.00 $5,000.00 15 youth
To assist teens to complete minimum 26
hour training course. Youth received a
certificate of course completion and
completed a video that was broadcast on
SATV.
Cerebral Palsy Association
North Shore Infant & Toddler
Preschool Program
$5,000.00 $5,000.00 35 children
For children with physical and
developmental disabilities to attend
integrated developmental play groups
once per week. Of the 35 assisted, 16
remain at the agency (15 in the program
and 1 in day care), 7 went on to Salem
Public Schools, 5 went to local daycare
centers/preschools, 4 went to Headstart,
3 were referred to Early Intervention
programs in an area they moved to and 1
left to attend another EI program.
Salvation Army
Prescription Program
$1,647.14
FY10 $386.45 4 persons 5 prescriptions filled.
V.O.C.E.S.
Hispanic Education Program $5,000.00 $5,000.00 140 persons
Provided 187 classes in either Citizenship
Education or GED Preparation. This
year there were 88 new citizens and 4
persons got their GED in Spanish.
16
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted Program Impact
Independent Living Center
Accessible Housing Education
Services Program
$5,000.00 $5,000.00 60 disabled
persons
Provided two housing education forums,
10 universal housing application
assistance workshops, 9
placements/relocations into accessible
housing and prepare 34 subsidized
housing applications.
Catholic Charities
Little Lambs Program $2,500.00 $2,500.00 193 youth
Conducted 50 assessments and provide
diapers, wipes and other baby necessities.
Referrals were for GED/Education or
Employment Training (6), Child Care
(11), Health issues (6), and other -
housing, basic needs, counseling, etc.(34)
North Shore Community Action
Program
Salem Cyberspace Cyberyouth
$5,000.00 $5,000.00 34 youth
For assistance with high school students 3
hours per week, college freshmen 2 hours
per week and college sophomores 1 hour
per week. 12 high school juniors passed
onto 12th grade, 10 seniors completed
high school and 10 college freshmen and
11 college sophomores received passing
grades. High school seniors submitted 21
applications to college and 18 applications
for financial assistance and scholarships.
10 students took college entrance exams.
Salem Y.M.C.A.
Teen Initiative $5,000.00 $5,000.00 144 youth
Teens participated in one or more of the
following programs: homework, gym,
games, basketball, dinner, pool parties,
etc.
Catholic Charities
Homeless Prevention Program $10,000.00 $10,000.00 42 persons
17 families avoided homelessness. They
also assisted 81 persons with this program
with other non-CDBG funding. All
families received extensive information
and referral services and budget
counseling.
Boys & Girls Club
Gang Prevention (Athletics) $5,000.00 $5,000.00 171 Youth
For teens to participate in basketball,
floor hockey, weight-lifting, exercise, flag
football and other athletic competitions.
More than 1330 visits to the teen enter
were made during from October to June.
Boys & Girls Club
Gang Prevention (Mentoring) $5,000.00 $5,000.00 293 Youth
Provide mentoring through programs
such as Teen Cooking, Career Launch,
Teen Study, Keystone Club and Peabody
Essex Museum from October to June for
over 1680 visits.
Salem YMCA
School Age Child Care Program $10,000.00 $9,448.92 114 youth
Provided child care assistance which
included educational and enrichment
activities.
Salem Council on Aging
Project Lifesaver $2,295.00 $1,872.98 5 persons Purchase of electronic bracelets,
enrollment, and annual fee.
Salvation Army
Transitional Housing
$1,493.76
FY09; $7,500
FY10 for Fire
Victims
$7,115.75 13 persons
Assisted 8 families (7 fire victim families)
with transitional housing while waiting for
their apartment to be ready to move into.
H.A.W.C.
Homeless Prevention Program
$7,296.00
FY09 $6,708.75 7 persons 2 families avoided homelessness
17
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted Program Impact
Salem Council on Aging
Transportation Program $20,663.00 $14,357.43 378 seniors
Provide rides to the senior center (8708),
medical (4305), shopping (1762), events
& activities (985), hairdresser (263),
downtown (58) and other rides (166).
Family Self-Sufficiency Center
Teen Drop-In Center $6,500.00 $6,500.00 31 youth
2 days a week, 3 hours per day. All
participants received academic support
services (tutoring, ESL curriculum, small
group learning) mentoring, intensive final
exam prep and study skills instruction.
Family Self-Sufficiency Center
English Literacy Skills Project $3,500.00 $3,731.50 24 persons
For classes held July – December, 2010.
Program temporarily suspended due to
teacher staffing issues and will resume in
Fall, 2011.
NSCAP
Homeless Prevention Program $10,000.00 $10,000.00 62 persons
Assisted 26 families in the prevention of
homelessness through rental or utility
assistance. 8 families received assistance
to maintain utilities and 18 families
received assistance for rental arrearages.
Salvation Army
Homeless Prevention $10,000.00 $10,000.00 46 persons Assist 24 families with homelessness
prevention (rent and utility arrearages).
St. Joseph’s Harvest of Hope Food
Pantry $20,000.00 $20,000.00 5,125
persons
Assisted 1,989 families who made a total
of 15,537 visits to the pantry. In
addition, delivered to 120-160 disabled
elderly, disadvantaged individuals, ran a
park program for 50-100 children 5 days
a week during the summer and served
890 Thanksgiving meals.
Wellspring House
MediClerk Program $4,500 $4,500.00 9 persons
13 week training courses. Of the 9 total
students, 7 have been hired by North
Shore Medical Center, two in the
laboratory, 1 unit secretary in the Birth
Center and 1 unit secretary in the Mental
Health Center, one receptionist in the
Wound Clinic, 1 receptionist in the
Mental Health Center and 1 is in the
secretarial temp pool. Of the remaining
2, 1 works at Walgreens and the other
moved from the area.
TOTAL PERSONS ASSISTED 11,895 persons,
including at least 944 children/youth &378 seniors
Evaluation of Goals
As stated before, Public Service activities allow us to provide direct services to our low- and
moderate-income residents. Our FY11 Action Plan goal was to provide 24 new grants. We
exceeded this goal and agreements for 28 new grants. Through these new grants and other open
contracts, we assisted 11,895 persons. We are fortunate to have an excellent network of public
service providers that utilize our funds to best meet community needs, which is why continue to
spend up to the full HUD funding cap of 15 percent.
18
ECONOMIC DEVELOPMENT
The City of Salem is committed to continuing efforts to stimulate
our local economy and, as a result, has seen a surge of
redevelopment in the past few years. This new development has
lead to a revitalization of our business districts and to increases in
the number of businesses providing needed services to our
residents.
During FY 11, several new businesses opened in the Urban
Renewal Areas bringing new goods and services to the
neighborhood. While there continues to be solid private sector
investment, businesses are continuing to adjust to the economy, the
change in people’s purchasing habits, and increased competition.
Salem has not been immune from the economic crisis and the
resulting job losses. The Salem unemployment rate as of June 2011
is 7.4 percent.
Rockafellas Restaurant was assisted
with a loan for business expansion. Salem continues to focus on economic development in order to
bring new employers and new jobs to the city, while retaining jobs
by helping existing businesses improve their commercial infrastructure or expand their operations.
The increased development is bringing vitality to the downtown, providing goods and services
locally, and improving and stabilizing neighborhood business districts in the process. Improved
vitality in our neighborhood and downtown commercial districts also has the residual effect of
improving public safety.
The City of Salem is dedicated to economic development through efforts to revitalize the downtown
and neighborhood commercial districts, improve exterior building façades, and assist local business
owners. Our economic development funds are used to fund the Business Loan Program, Storefront
Improvement Program and Technical Assistance Programs.
Business Loan Program
The Business Loan Program is designed to encourage all types of entrepreneurs to locate in the City,
create jobs, and revitalize the area through rehabilitation to their buildings. There are three types of
loans:
Microenterprise Assistance – provides loans to low- to moderate-income entrepreneurs to assist
with their microenterprise business (5 or fewer full-time employees, including the owner);
Commercial Revitalization – provides loans to business owners in the downtown and eligible
neighborhood districts to assist with the exterior rehabilitation of their building and/or to
correct code violations; and
Special Economic Development – provides loans to business owners throughout the city in exchange
for job creation for low- and moderate-income people.
Storefront Improvement Program
The Storefront Improvement Program is designed to encourage private investment and
reinvestment by new and existing property/business owners in the eligible neighborhood and
downtown commercial districts. The program provides design assistance and offers a one-to-one
19
financial match for façade improvements of up to $5,000 per storefront and funding for
professional design assistance.
Technical Assistance Programs
Often small business owners need some degree of technical assistance to help them with managing
or growing their business. The needs of local entrepreneurs range from business planning, drawing
up financial statements, or navigating the city permitting process. The city works in collaboration
with several agencies to improve economic opportunity in Salem by providing technical assistance to
businesses.
Table 3: FY11 Economic Development Financial Summary
Program Description
CDBG
Funding
Available
Status
Storefront Improvement
Program
Provides design assistance and/or
matching funding up to $5,000 to
business owners wishing to improve
the exterior façade of their business.
$18,524.29
$7,005.29 CDBG spent
1 storefront improved
3 storefronts design
assistance
Business Loan Program
Provides three types of loans that
fund commercial rehabilitation, job
creation or retention and/or micro-
enterprise assistance to make our
commercial areas vibrant.
$84,000.00
$84,000.00 CDBG
spent
2 businesses assisted (of
which 1 is still
pending loan closing)
Salem Main
Streets
Program
Provides commercial district
revitalization through organization,
promotion, economic restructuring
and design.
$25,000.00
$25,000 CDBG spent
34 micro-enterprise
businesses assisted Business
Technical
Assistance Economic
Development
Program
Delivery
Costs associated with providing
Economic Development programs
and administration of the Salem
Redevelopment Authority.
$66,372.39 $61,897.39 CDBG
spent
Evaluation of Goals
In FY11, with our Small Business Financial Assistance Programs, we exceeded our Action Plan goal
to provide one loan by providing two business loans totaling $84,000.00 (one loan is pending loan
closing). These loans will be monitored in FY12 for job creation. In addition, we provided
assistance for the improvement of 1 storefront, and provided design assistance for three storefronts.
The Salem Main Streets Program provided technical assistance to 9 new and 25 existing micro-
enterprise businesses, exceeding our FY11 Action Plan goal of assisting 20 microenterprises. First
quarter events included Salem Ice Scream Bowl, Lower Lafayette Block Party, Salem Farmers'
Market 2010 season, Mayor's Night Out and Salem Literary Festival. Total volunteer hours were
408. Twelve (12) new businesses opened, 4 ribbon cuttings held. Second quarter accomplishments
included October information booth, Holiday Happenings brochure, wreaths, tree, Santa's arrival,
window contest and men’s shopping night, a Technical Assistance Workshop on how to do business
in a tough economy and the development of a new downtown shopping and dining guide. Total
volunteer hours were 563. Third quarter accomplishments included the Salem So Sweet Festival and
a technical assistance workshop on disability awareness for business. Total volunteer hours were
346. Fourth quarter accomplishments included Salem Health and Wellness Week, Salem Living
20
Green Fair, Jazzy Blues Brunch, Mass Poetry Festival, Salem Arts Festival, Out Night in Salem, and
a technical assistance workshop on green business. Total volunteer hours were 440.
The DPCD also provides technical assistance through our Economic Development Manager, who
administers the City’s financial assistance programs and provides administration to the Salem
Redevelopment Authority, which oversees the Urban Renewal Area. During FY11, there were
several small private sector renovation projects undertaken. The most significant redevelopment
project underway is the new Ruane Judicial Center which is scheduled for completion in the first
half of FY12.
During FY11, the DPCD continued to collaborate with the Enterprise Center at Salem State
University and the Small Business Development Center to provide technical assistance to
entrepreneurs with a focus on those located within low/mod areas and the Urban Renewal Areas.
The DPCD collaborated with the Salem Chamber of Commerce on several economic development
topics including downtown transportation, business recruitment, and a town/gown initiative with
Salem State University.
Lastly, because parking is a key resource for business growth and downtown vitality, during FY11
the DPCD worked with stakeholders and the City Council to develop and implement
recommendations from the comprehensive parking study. The City Council adopted ordinance
changes and policies in June 2011, and City staff will be implementing the changes during FY12.
In total, $177,902.68 was spent during the program period for economic development activities.
Table 4: Active Economic Development Loans in FY11
Type of Loan Project Amount of
Loan Total Jobs Created
Microenterprise
Assistance
Mud Puddle Toys (FY10 loan) $30,945 3 Part Time (2 FTE) jobs
created
Rockafellas $64,000 To be monitored in FY12 Special Economic
Development
Amazing Pizza (pending loan
closing) $20,000 To be monitored in FY12
Note: LMI is low- and moderate-income
21
NEIGHBORHOOD IMPROVEMENTS
The City of Salem is committed to undertaking the
infrastructure and public facility improvements we all
depend on to make our city the livable community that it
is. By continually investing in neighborhoods, Salem
aspires to be the best place it can be for people to live
and work.
Peabody Street Park
Due to the size and scope of these types of activities,
some require multi-year funding, as well as a few years to
plan, permit and complete the project. To that end,
some of our Neighborhood Improvement Projects are
still in the planning, permitting or bidding stages. The
following table outlines the current neighborhood
improvement projects and their status at the close of FY11. Neighborhood Improvement Projects
can only take place in those areas eligible for CDBG funding (see Appendix for map); therefore all
the projects listed are designated for these target neighborhoods.
Table 5: FY11 Neighborhood Improvement Financial Summary
Activity CDBG Funds
Available
CDBG Funds
Spent Status
Peabody Street Park $8,382.72 $8,382.72 Complete
Congress/Peabody/Ward Intersection $14.99 $14.99 Complete
City Hall Elevator $122,364.58 $121,806.77 Underway
South River Harbor Walk $79,257.10 $65,577.55 Underway
Bike Path Delineation in LMI Areas $37,850.00 $12,823.50 Underway
Palmer Cove Park Improvements $12,130.00 $3,380.00 Underway
Tree Planting Program $11,795.00 $1,145.00 Underway
Congress/Derby Pedestrian Lights $155,446.81 $22.89 Underway
Salem YMCA handicapped access
equipment $9,085.00 $0.00 Underway
Maryjane Lee Playground $1,300.00 $0.00 Underway
Street Improvements (i.e. sidewalks,
curbcuts, paving & crosswalks) $100,627.97 $71,304.43 Ongoing
Section 108 Loan Payments – South
Harbor Garage $42,806.75 $42,806.75 Ongoing
Harbor and Lafayette Streets Pedestrian
Improvements (PWED) $103,949.15 $3,949.15 Design
Lafayette Park Redesign $194,239.39 $1,926.04 Planning
Point Neighborhood History Sign $4,000.00 $0.00 Planning
Evaluation of Goals
During the program period, we continued to work on important neighborhood projects, and spent a
total of $333,139.79, including program delivery costs, toward meeting the goals in the FY11 Action
Plan and 5 year Consolidated Plan.
22
Although not meeting the FY11 Action Plan goal of 13, 8 trees were planted – 4 on Jefferson
Avenue and 4 on Harbor Street.
Sidewalk installation was undertaken on Federal Street, Francis Road, Butler Street, Grafton Street,
Linden Street, Derby Street, Roslyn Street, Summer Street, Margin Street, Winthrop Street, Essex
Street, Cedar Street, Hazel Street, Harbor Street, Perkins Street and Lafayette Street. Crosswalks
were completed at Church Street, Washington Street and Essex Street.
The City Hall Elevator installation was essentially completed this year. The remaining work is a
directory sign installation.
Peabody Street Park construction was completed. The grand opening of the park and the South
River Harborwalk was held in July, 2010. There is some additional work on the Harborwalk that
will be done in FY12.
New netting for the baseball field at Palmer Cove was installed during the program year.
The Bike Path delineation project is underway and will be completed in FY12.
The construction contract for the Derby/Congress Pedestrian Improvements was issued in
October, 2010, with work expected to be completed in Summer, 2011.
Several other projects are in the planning/design stages including Lafayette Street Improvements,
Point Neighborhood History Sign and the Lafayette Park redesign.
23
PLANNING & ADMINISTRATION
In the Consolidated Plan, our priority goals are to provide for
the administrative costs associated with the management of the
Salem Community Development Block Grant program and to
develop the planning resources and documents necessary to
undertake program activities.
During FY11, we completed a Master Plan for Winter Island, as
well as a Fair Housing Overview required by HUD. Underway
are three additional planning projects.
In FY11, we spent a total of $226,593 in Planning and
Administration for planning studies completed in the fiscal year
and administration expenses necessary to carry out our
programs. As stated previously, we were able to remain under
the administrative spending cap of 20 percent.
Table 7: FY11 Planning & Administration Financial Summary
Activity CDBG Funds
Available
CDBG Funds
Spent
Winter Island Master Plan $17,000.00 $17,000.00
5 Year Consolidated Plan Fair Housing Overview $2,500.00 $2,500.00
Survey & Planning Grant – Bridge Street Survey $10,000.00 $6,500.00
142 North Street National Register Nomination $2,000.00 0.00
Survey & Planning Grant – Salem Common Fence $7,500.00 0.00
General Administration - Salary $130,379.39 $130,379.39
General Administration - Benefits $60,157.77 $60,157.77
General Administration - Non-salary $10,055.84 $10,055.84
24
OTHER ACTIONS
Barriers to Affordable Housing
The Five Year Consolidated Plan outlines several barriers to housing affordability in Salem: a
shortage of land, the lack of regulatory tools to require or encourage affordable housing in new
developments, the lack of resources to preserve existing affordable units, an economy imbalanced by
lower-wage jobs, and local government’s dependence on the property tax to finance City services.
Like other communities, Salem is not in control of all of these barriers and as a result, its ability to
solve them is constrained by financial resources and legal requirements. However, through its efforts
to preserve and increase the supply of affordable housing through its Housing Rehabilitation Loan
Program, First-Time Homebuyer Downpayment Assistance Loan Program and Affordable
Development Programs the City is able to address some of these barriers. And although Salem is
above the threshold of 10 percent affordable housing, the City entertained and approved a friendly
Chapter 40B Comprehensive Permit for the redevelopment of the former St. Joseph's church site.
The existing zoning was a barrier to affordable housing. The City then rezoned the parcel to Central
Development District, allowing mixed use development, as well as increased density and height, thus
eliminating zoning as a barrier, paving the way for the upcoming development of new affordable
rental housing in the Point Neighborhood. In addition, the City Council, with the support of the
DPCD has approved the waiver of permitting fees for at least one affordable housing development
project.
Despite our efforts to help renters become homeowners, there has been a decline in the number of
participants in the First-Time Homebuyer Downpayment Assistance Loan Program. We attribute
this to the number of new homebuyers who, although eligible for our programs, are being denied
loans as a result of tighter standards instituted by lending institutions in response to recently passed
legislation. In addition, the recent foreclosure crisis has created new obstacles to developing and
purchasing affordable housing.
Lead-Based Paint Hazard Reduction
The Salem Board of Health disseminates information regarding the proper disclosure of lead
hazards upon selling or renting a housing unit and inspects rental units for lead paint hazards. In
Salem, a landlord is required to obtain a Certificate of Fitness inspection when an apartment
becomes vacant. Board of Health personnel conduct this inspection enforcing the State Sanitary
Code for Housing. When the information is sent to the landlord prior to this inspection, a letter
describing the Federal law is included, as is a copy of the Tenant Notification Form in English and
Spanish. Also, the Board of Health periodically sends notification of regulations regarding lead-
based paint to area realtors. In addition, Board of Health personnel are trained Lead Determinators.
Should the Board receive a call from a tenant who is concerned that there may be lead-based paint
in his/her apartment, potentially affecting their children under six years of age, the Board is able to
send out a Sanitarian to conduct a Lead Determination. If lead paint is detected, an order is sent to
the landlord requiring compliance with the State Lead Law. The Board ensures compliance with the
order. The State Lead Program is notified of the results of all Lead Determinations.
In cooperation with the State of Massachusetts and other municipal departments, the City of Salem,
through its DPCD, works to decrease the number of housing units containing lead-based paint
hazards. The City, through the DPCD, actively works to reduce lead-paint hazards in pre-1978
housing occupied by lower-income households through the City of Salem’s Housing Rehabilitation
Loan Program. Through the Salem Housing Rehabilitation Loan and Get the Lead Out Programs,
25
the City provides loan funds for qualified applicants for lead testing, hazard reduction and
abatement activities, and temporary relocation reimbursements. Lead-based paint hazard control
measures are consistent with the federal Title X requirements and State lead based paint regulations.
MassHousing’s Get the Lead Out Program is also available to homeowners with a lead poisoned
child.
Finally, all participants in the First-Time Homebuyer Downpayment Assistance Loan Program are
given a copy of the EPA brochure Protecting your Family from Lead in Your Home.
Anti-Poverty Strategy
This Anti-Poverty Strategy describes programs and policies the City is supporting in its efforts to
reduce the number of households living below the poverty level. Some public service agency
representatives state that Salem residents in poverty stay in poverty because they lack adequate skills
for better employment opportunities. As a result, they work multiple jobs to pay for housing,
utilities, transportation expenses, and childcare. Providing adequate job training and educational
opportunities will enable them to enter the workforce at a more competitive level.
Salem uses CDBG and other funds to pursue an anti-poverty strategy carried out by the City and a
variety of social service subrecipients. The City’s anti-poverty strategy is comprehensive and it
consists of four components: education, job training and employment resources, affordable housing
and social services. Each of these components are described at length in the recently completed 5-
Year Consolidated Plan.
Managing the Process and Institutional Structure
The DPCD administers the City of Salem’s Community Development Program as well as the
formula funding received by the North Shore HOME Consortium for which the City of Peabody is
the lead agency. Under the direction of the Director of Planning and Community Development, the
Assistant Community Development Director manages and monitors Salem’s community
development programs.
Salem’s housing programs are administered by the DPCD Housing Coordinator under the direction
of the Director of Planning and Community Development. In addition, local non-profit agencies,
CHDOs and CDCs administer certain housing activities. Many housing activities leverage funds
through private lender financing.
City departments undertake certain CDBG-funded activities, such as the tree planting program,
sidewalk replacement, park improvements, street paving and curbcut installation. These departments
may subcontract work under public bidding procedures and provide requests for reimbursement and
any required documentation (i.e. prevailing wage documentation) to the DPCD.
Each year the City of Salem issues a Request for Proposals to nonprofit organizations that offer
social service, housing or economic development programs. CDBG funds are awarded to
organizations that demonstrate programmatic needs and the capacity to administer the proposed
program. The city’s Assistant Community Development Director coordinates the management of
the public service and housing subcontracts and the Economic Development Planner coordinates
the management of the economic development subcontracts.
In general, DPCD staff carries out the remaining activities, including the hiring of consultants or
other private businesses through established municipal purchasing procedures.
26
The city’s auditing firm audits Salem’s CDBG program delivery system annually. In addition, HUD
staff conducts periodic reviews and monitorings. The City promptly implements recommendations
arising as a result of these reviews. The DPCD continuously works to improve upon its methods
and procedures for the administration of its programs.
Coordination with Other Organizations
Salem Housing Authority: Although, the city does not currently use its CDBG funds to assist the
Salem Housing Authority, the DPCD coordinates with the Salem Housing Authority to address the
housing needs of Salem’s lower-income residents. While developing its Consolidated Plan, the city
consulted with the SHA to determine the agency’s most pressing needs. In addition, SHA’s
Comprehensive Plan must take into account the findings of the Consolidated Plan and the City of
Salem must certify that the documents are consistent.
The Mayor appoints four of the five Salem Housing Authority (SHA) board members, one of whom
must be a public housing tenant and one of whom must be a member of organized labor. Proposed
development sites or demolition or disposition of existing public housing developments must follow
established regulatory procedures administered by the Building Department, Board of Appeal,
Planning Board, etc.
The Salem Housing Authority serves over 900 participants. The Authority receives over $9 million
in federal funding for its Section 8 Housing Choice Voucher Program and its Federal Public
Housing Program, as well as earns state subsidies. The Salem Housing Authority continues its
mission of preserving and maintaining its stock of decent, safe and sanitary public housing for the
residents of Salem.
Other Organizations: In addition to the SHA, the City of Salem works cooperatively with private
housing providers and private and governmental health, mental health, and service agencies and
other interested parties to implement its Consolidated Plan. To this end, the city administers Salem
H.O.P.E. (Human Organization Partnership Effort), a networking group of human service agencies
that serve Salem residents. It is a free forum for agencies to learn about the services being provided
by other agencies in order to fill in gaps, coordinate efforts and avoid the duplication of services. All
human service agency representatives are invited to attend the quarterly Steering Committee
breakfast meetings held at rotating agency locations. Through this program, agency representatives
are introduced to each other and exchange information, announcements and updates. The strength
in the delivery system of nonprofit services is in the networking, collaboration and coordination
among the agencies. DPCD is responsible for the organization and administration of this effort.
The city also works with nonprofit agencies to administer social service activities. Agencies are urged
to apply to the city for CDBG public services funding to undertake priority programs outlined in the
Consolidated Plan. Additionally, the City of Salem cooperates and coordinates with other public
agencies (and funding sources) to undertake specific activities. Examples include MHFA’s Get the
Lead Out Program and Mass Housing Partnership’s Soft Second Mortgage Program.
The City of Salem works with the City of Peabody, the lead community for the North Shore HOME
Consortium, to coordinate the implementation of its HOME-funded program. Salem also works
with local CHDOs and CDCs to carry out priority activities.
The City of Salem will continue its efforts to coordinate and communicate with other municipal
departments, local and regional agencies, and public and private housing organizations over the next
27
year. The DPCD will maintain responsibility for coordinating the Salem H.O.P.E. effort and will
communicate regularly with subcontracted agencies delivering social services and subrecipients of
federal funds. We will continue to work with the Salem Housing Authority (SHA), nonprofit
organizations, and housing developers to produce affordable housing in the City. The strength of
these relationships is beneficial in streamlining housing development and leveraging additional funds
for projects.
Monitoring
An overarching goal with all activities undertaken with CDBG and HOME funds is to ensure that
they meet our program objectives. The DPCD monitors all projects to ensure compliance with
applicable Federal, State and local regulations and program requirements.
As part of ongoing monitoring, public service subrecipients submit monthly reports that include
income, race and ethnic information on clients served and programmatic accomplishments. In
addition, public service subrecipients are monitored on-site each year (exceptions are noted in the
Monitoring Plan). Payments to public service agencies are made on a reimbursement basis to
ensure compliance with expenditure requirements. Agencies submitting reimbursement requests
must include proof of expenditure of funds, as well as documentation that the pre-determined
benchmark or goal was attained.
All First-Time Homebuyer Downpayment Assistance Loan Program properties and Housing
Rehabilitation Loan Program properties receive on-site inspections. Rehabilitation projects must
meet HQS and current housing codes. All tenant based rental assistance provided with HOME
funds requires an inspection with a HQS report. Monitoring of affordable housing loan activities
undertaken with CDBG or HOME funds for compliance with affordability requirements and/or
other programmatic requirements is discussed in full in the Monitoring Guide. Monitoring of
economic development activities undertaken with CDBG funds for compliance with Davis-Bacon
and job creation is discussed in full in the Monitoring Guide. There is also a Loan Management
Policy for dealing with delinquent or in default housing or economic development loans.
The DPCD also annually reviews its performance in meeting its goals and objectives set for in
the Consolidated Plan during the development of the annual CAPER. The Assistant Community
Development Director encourages timely submission of reimbursement requests by subrecipients
and reviews timeliness status weekly until the annual 1.5 draw ratio is met.
The complete Monitoring Guide is located in the 5 Year Consolidated Plan.
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SUMMARY/PROGRAM EVALUATION/CONCLUSIONS
Overall, we made significant progress toward meeting the goals of our 5-year Consolidated Plan and
FY11 Action Plan. We also continued to meet HUD required funding and expenditure caps and
timeliness requirements. The following is a summary of major activities accomplished in FY11:
7 families assisted to purchase their first home in Salem;
17 housing units were renovated, with an additional 3 units underway;
47 families received assistance with first/last month’s rent and/or security deposits;
31 social service programs assisted 11,895 persons, including at least 994 youth and at least
378 seniors;
1 commercial storefront improved;
3 commercial storefronts redesigned;
2 businesses provided economic development loans
Salem Main Streets Program highlights:
o Assisted 9 new and 25 existing micro-enterprises;
o Total volunteer hours were 1757;
o Salem Ice Scream Bowl;
o Lower Lafayette Block Party;
o Salem Farmers' Market 2010 season;
o Mayor's Night Out;
o Salem Literary Festival;
o October information booth;
o Holiday Happenings - brochure, wreaths, tree, Santa's arrival, window contest and
men’s shopping night;
o Technical Assistance Workshop on how to do business in a tough economy;
o Development of a new downtown shopping and dining guide;
o Salem So Sweet Festival;
o Technical assistance workshop on disability awareness for business;
o Salem Health and Wellness Week;
o Salem Living Green Fair;
o Jazzy Blues Brunch;
o Mass Poetry Festival;
o Salem Arts Festival;
o Out Night in Salem; and a
o Technical assistance workshop on green business.
Peabody Street Park – new playground completed;
Sidewalk installation undertaken on Federal Street, Francis Road, Butler Street, Grafton
Street, Linden Street, Derby Street, Roslyn Street, Summer Street, Margin Street, Winthrop
Street, Essex Street, Cedar Street, Hazel Street, Harbor Street, Perkins Street and Lafayette
Street;
Crosswalks were completed at Church Street, Washington Street and Essex Street;
City Hall Elevator and related handicapped access improvements was essentially completed
with a directory sign installation to be completed next year;
Grand opening for the South River Harborwalk held in July, 2010.
Palmer Cove Park baseball field netting installed:
8 trees planted in low-mod neighborhoods; and
Winter Island Master Plan completed.
29
In summary, we are proud of the accomplishments made in FY11. Several larger, multi-year
projects were completed or are near completion.
We encourage feedback from our citizens in order to improve our efforts to provide decent, safe
and sanitary housing, improved community facilities and infrastructure, needed human services and
expanded economic opportunities, that all work toward revitalizing our neighborhoods and
improving our living environment.
IDIS/CPMP Reporting
The City of Salem reconciles it's general ledger to IDIS monthly. All HUD required reporting is up
to date and complete.
The DPCD makes minimal use of HUD’s CPMP Tool, submitting with the Action Plan the Needs
and Projects tables only. The activities in Projects.xls are entered into IDIS and are included in the
Action Plan. These same activities are listed in the CAPER tables found on pages 4, 14 19, 21 and
23, including funds available and funds expended. These activities may include funding from one or
more plan years.
The Financial Summary Grantee Performance Report (Form #4949.3) or the PR26 in IDIS is
recreated in the CAPER in the Appendix.
30
SUPPLEMENTARY NARRATIVES
In this section, as part of our reporting requirements for HUD, we provide a supplementary
narrative that answers specific questions regarding our program expenditures and activities.
Use of CDBG Funds
In FY11, CDBG expenditures complied with the goals and objectives outlined in the FY11 Action
Plan and 5-Year Consolidated Plan. More detailed information on the use of these funds can be
found in the Assessment of Five Year Goals and Objectives section of this report.
Changes to Program Objectives
During the program period it may be beneficial to revise the Annual Action Plan in order to reflect
changes in priority needs and goals. There were no revisions undertaken for the FY11 Action Plan.
Each year, during the program period it may be necessary to adjust funds committed to specific
activities. This may include activities that require additional funds, activities that came under budget
and have extra funds or activities that are not longer necessary or feasible whose funds need
reprogramming. Often this is done within the same general category. Adjustments to FY11
funding (over $50,000) include:
Deductions:
City Hall Elevator & Handicapped Access $ 84,676.53
Increases:
Housing Rehabilitation Loan Program $ 84,067.50
Geographic Distribution and Location of Investments
Some programs and activities undertaken are available on a citywide basis to income eligible
households. Others are targeted to particular neighborhoods with concentrations of low- and
moderate-income households or to programs that benefit specific populations such as senior
citizens, disabled persons and minorities.
When prioritizing activities, the City pays special attention to those low- and moderate-income
neighborhoods where the greatest needs have been identified and whose public facilities and
infrastructure are in the worst condition. In accordance with CDBG regulations, specific activities,
such as street, sidewalk and playground improvements can only be undertaken in the low- to
moderate-income neighborhoods or the Urban Renewal Districts, with the exception of handicap
access improvements which can be undertaken city-wide.
Recognizing that needs are not solely located in distressed neighborhoods, we also offer programs
that may be accessed by people living outside these areas. For example, the Housing Rehabilitation
Loan Program, First Time Homebuyer Downpayment Assistance Program, and the Small Business
Loan Program are offered citywide to allow any low to moderate-income individual or household to
take advantage of their availability. A geographic distribution map is located in the Appendix.
Compliance with Planned Actions
In FY11, the City of Salem pursued all resources indicated in its FY11 Action Plan.
31
Compliance with National Objectives
All CDBG funds budgeted and spent were exclusively focused on furthering the three National
Objectives of the CDBG program. The City also fully complied with overall benefit certification.
Relocation
In FY11, no CDBG funds were spent on projects that required the permanent displacement and/or
relocation of people, businesses, or organizations from occupied property. The program does
provide temporary location assistance through the Housing Rehabilitation Loan Program, per the
DPCD’s current Relocation Policy.
Economic Development Activities
Economic development activities are discussed in the Assessment of Five-Year Goals and
Objectives, Economic Development section of this report.
Limited Clientele Activities
In FY11, the City of Salem funded several activities that served limited clienteles. For example,
funds were expended on 32 public service programs that primarily served low- and moderate-
income persons. Through the use of family-size/proof of income documentation, it was determined
that more than 51 percent of the people served by these projects met applicable criteria for low- or
moderate-income status. Those activities that were not Limited Clientele Activities were undertaken
in low- to moderate-income designated areas or in one of the designated Urban Renewal Areas.
Program Income
The Financial Summary section of this report documents total program income for the Salem
CDBG Program in FY11. The total program income was $151,366.03.
Rehabilitation Activities
The City of Salem sought to preserve affordable housing in the city by assisting low- and moderate-
income homeowners in rehabilitating their homes through the Housing Rehabilitation Loan
Program. The activities carried out during FY11 are described in the Assessment of Goals and
Objectives, Affordable Housing section of this report.
HUD Neighborhood Revitalization Strategies
Salem had no HUD approved Neighborhood Revitalization Strategies in place during FY11.
Performance Measurement
The DPCD uses several strategies for performance measurement and continues to review and
enhance its performance measurement system. Specifically, Salem has implemented a performance
measurement system in the following program areas:
Public Services - Public service contracts include performance measurement indicators. The annual
CAPERs outline the effectiveness of those measurements. Specifically, the City requires
subcontracted social service agencies to report on the impact of their programs as measured by the
performance indicators. Internally, a spreadsheet is maintained which tracks the receipt of monthly
reports and the status of on-site monitorings. Public service agencies are required to submit
reimbursement requests that are tied to pre-determined benchmarks or performance outcomes, as
well as proof of expenditure of funds.
32
Housing Programs - Housing rehabilitation program staff track each project in a formal system that
details project status and loan details. In addition, staff maintain a comprehensive written manual
detailing program procedures and policies. There is also a master loan spreadsheet that tracks all
loan details for the First-Time Homebuyer Downpayment Assistance Loan Program and the
Housing Rehabilitation Program, including period of affordability, discharge dates, rent restrictions
and monitorings. The City monitors HOME-funded rehabilitation projects with rental affordability
restrictions annually for the duration of the affordability period. Housing files contain statutory
checklists, as well as documentation on flood management, wetlands protection, and historic
resources, as applicable.
Economic Development – A quarterly report is provided to the City’s Finance Department on new
loans issued, loan status and loan discharges. Monitoring of job creation is determined by the time
period in the funding Agreement. Monitoring consists of verification that the goals for
low/moderate income jobs to be created and/or retained have been met. A standard monitoring
form is used. The Economic Development Planner follows the Loan Management Policy for review
of existing loans and process to address delinquent, default or uncollectable loans.
Additionally, the City ensures long-term compliance with program requirements, including minority
business outreach and comprehensive planning requirements, in several ways. In particular, the
DPCD has a Monitoring Plan in place that allows the City to track whether long-term goals are
being met, including minority business outreach. As detailed in the Managing the Process and
Institutional Structure section of this document, the City manages its programs to ensure
compliance with identified goals and federal, state and local regulations. The Environmental Review
Record contains statutory checklists, documentation on flood management, wetlands protection,
and prevailing wage documentation, as applicable.
HOME Program
As stated previously, the City of Salem is a member of the North Shore HOME Consortium. The
City of Peabody administers the Consortium and maintains all documentation regarding Salem’s
participation.
During FY11, the City of Salem spent $243,982 in HOME funds (including $5,169 ADDI funds).
Funds were used to help fund provide first time homebuyer downpayment assistance and to fund
the Rental Downpayment Assistance Programs administered by the North Shore Community
Action Program, HAWC and the Salvation Army. The accomplishments of these projects can be
found in the reports submitted by the City of Peabody on behalf of the Consortium.
In June, 2007, the Consortium voted to adopt the federal Energy Star Standards. The
implementation of this new policy for the use of HOME funds began on October 1, 2007. All new
HOME-assisted units are required to be certified as Energy Star compliant whenever either new
construction is involved or where the rehabilitation of an existing structure involves the gutting of
the structure to the bare walls.
FUNDS LEVERAGED
In order to maximize the benefits achieved by Salem’s community development programs and in
order to make projects feasible, CDBG and HOME funds often must be combined with other
funding sources. The following chart summarizes the amount of federal dollars spent during FY11
and the funds leveraged through these expenditures.
Table 8: FY11 Funds Leveraged
Program CDBG
Expenditures
HOME
Expenditures
Funds from Other
Sources
Housing Programs $510,971.21 $243,982 $2,137,220.26
Public Services $204,547.49 -$3,115,372.74
Economic Development $177,902.68 -$1,523,750.00
Neighborhood Improvements 5 $333,139.79 -$3,682,982.05
Planning & Administration $226,593.00 -$315,366.52
TOTAL FY11 $1,453,154.17 $243,982 $10,774,691.57
TOTAL FUNDS LEVERAGED PER HUD DOLLAR IN FY11: $6.35
Listed below is a summary of the funds leveraged and reported in the table above:
Housing
For the First Time Homebuyer Program (includes CDBG, HOME), homebuyers provided
$82,728.09 in matching funds as well as obtained $1,195,442.17 in financing from a primary
lender, which amounted to a total leveraged of $1,278,170.26
The rehabilitation program leveraged $834,875 in private funds and $24,175 in Affordable
Housing Trust funds
Economic Development:
The Salem Main Streets Program leveraged $34,900. Of this total, $23,750 was corporate
contributions for operations and $11,500 was for events and programs (e.g. Farmer’s Market,
Salem So Sweet Festival, Salem Arts Festival and Ice Cream Bowl)
This year’s Business Loan Program leveraged $1,469,000 in private funds and other financing
The Storefront Improvement Program leveraged $19,500 in private dollars
Neighborhood Improvements:
CDBG funds for the South River Harbor Park project are used as a match toward $1,336,000 in
design and construction grant funds from the State Seaport Advisory Council
5 Includes Section 108 loan payment as a CDBG expense.
33
34
The City Hall Handicapped Access project leveraged $305,977 in American Recovery and
Reinvestment Act funds (or CDBG-R)
The Peabody Street Park is leveraging $200,000 from the Environmental Protection Agency and
$474,000 in Urban Self Help grant funds
The Congress/Peabody/Ward intersection improvements leveraged $200,000 from the
Environmental Protection Agency
The Bike Path Delineation Project leveraged $17,005.05 in other grant funds
The Congress/Derby Intersection Improvements leveraged approximately $100,000 in City of
Salem Capital Improvement Funds for design costs and police details
The Harbor and Lafayette Streets Pedestrian Improvements leveraged $1,000,000 in MassDOT
Public Works Economic Development (PWED) grant funds
Street Improvements leveraged $50,000 in City of Salem Capital Improvement funds
Planning & Administration:
Planning and administration funds leveraged $249,508.39 in City funds and $65,858.13 in State
Seaport Advisory Council funds
The Winter Island Master Plan leveraged $28,000 in HUD Economic Development Initiative
(EDI) funds
The Bridge Street Survey leveraged $15,000 in Massachusetts Historical Commission Survey &
Planning Grant funds
Public Services:
Most of the public service agencies funded use CDBG funds as a portion of their overall activity
budgets. Based on leveraged funds reports provided by each agency at the end of the program
year, the amount leveraged is $3,115,372.74 in other federal, state or private funds
Note: Leveraged funds for multi-year projects may be repeated within more than one year’s
CAPERs. Above, leveraged funds are only included for projects of which CDBG funds were
expended during the fiscal year
35
CITIZEN PARTICIPATION SUMMARY
The goals and purpose of the Citizen Participation Plan is to encourage residents, agencies, and
other interested parties to participate in the development of our 5-Year Consolidated Plan and
Annual Action Plans and to comment on our accomplishments. The strength of our programs
comes from the high number of volunteers that inform our decisions.
The Citizen Participation Plan included in the 5-Year Consolidated Plan is the framework we used
to solicit public comment, as well as to provide guidance on our response to citizens’ comments on
our programs throughout the year.
Public Comment Period
Copies of the FY11 CAPER were made available to the public throughout the 15-day comment
period and every effort was made to solicit citizens’ comments including posting the availability of
the report in the Salem Evening News, the City of Salem Official Bulletin Board at City Hall and at
the City Hall Annex through the Clerk’s Office, Salem Public Library, Salem Housing Authority and
on the City’s website. Copies were available for review at the DPCD, Salem Public Library and
Salem Housing Authority and on the City’s website (a copy of which was available for download).
No public comments were received.
APPENDIX
Financial Summary
Progress of Consolidated Plan 5-Year Goals
IDIS Report PR23 Excerpts
Total CDBG Beneficiaries by Racial/Ethnic Category
CDBG Beneficiaries by Income Category
IDIS Report PR54 (Note that the Program Income does not reflect adjustments and therefore does
not accurately reflect the total available.)
Maps
Section 3 Reports
(These reports are not included in the digital PDF. Please contact the DPCD for copies)
CITY OF SALEM – FINANCIAL SUMMARY
FY11 Consolidated Annual Performance and Evaluation Report
1 Summary of CDBG Resources
2 FY10 End of Year Balance $ 814,345.09
3 FY11 CDBG Entitlement $ 1,245,477.00
4 Program Income, FY11 $ 151,366.03*
5 Total CDBG funds available for use in FY11 $ 2,211,188.12
6 Summary of CDBG Expenditures
7 Affordable Housing $ 510,971.21
8 Public Services $ 204,547.49
9 Neighborhood Improvements (not including CDBG-R) $ 290,333.04
10 Economic Development $ 177,902.68
11 Program Administration $ 226,593.00
12 Section 108 Repayment (in CAPER narratives under neighborhood improvements) $ 42,806.75
13 Total Expenditures $ 1,453,154.17
14 Year-End CDBG Resources
15 Total CDBG funds available for use in FY11 $ 2,211,188.12
16 Total Expenditures in FY11 $ 1,453,154.17
17 Unexpended Balance (CDBG Budget) $ 758,033.95
18 Low/Mod Credit
19 Total FY11 CDBG Expenditures $ 1,453,154.17
20 Total for Program Administration $ 226,593.00
21 Total for Section 108 Repayments $ 42,806.75
22 Total subject to Low/Mod Benefit Calculation $ 1,183,754.42
23 L/M Credit for multi-unit housing $ 209,589.95
24 L/M Credit for other activities $ 851,581.63
25 Percent of benefit to low/mod persons 89.64%
26 Public Services Cap Calculation
27 Net obligations for FY11 Public Services Activities $ 210,414.96
28 FY11 Entitlement + FY10 Program Income $ 1,402,820.81
29 Percent obligated PS Activities 14.999%
30 Planning and Program Administration Cap Calculation
31 FY10 Entitlement + FY10 Program Income $ 1,396,843.03
32 Net Obligations for Planning/Admin. Activities $ 237,593.00
33 Percent of funds expended 17.01%
FINANCIAL SUMMARY
34 HOME Summary
35 HOME Project Expenditures (including $5,169 in ADDI funds) $ 213,843.50
36 Salem HOME Administration (including FTHB fee/inspection reimbursements) $ 20,138.50
37 Total HOME Expenditures $ 233,982.00
*Note: Program income of -$7,947.73 entered into IDIS in FY11 was reported in the FY10 CAPER. Program
income of +$10,104.09 entered into IDIS in FY12 is being reported in this CAPER (FY11). Therefore the net
adjustment to compute total program income is +$2,156.36.
Category5 Year Goals5 Year ProposedYear 1 FY10/11Year 2 FY11/12Year 3 FY12/13Year 4 FY13/14Year 5 FY14/15TOTALExceeded or (remaining)Housing 20 Units New Construction (HOME)200 0(20)40 Units Housing Rehabilitation (CDGB/HOME)4017 17(23)80 Direct homeownership assistance (CDBG/HOME)807 7(73)375 Rental Housing subsidies (HOME)37547 47(328)20 Commercial building acquistion, construction, rehabilitation201 1(19)5 Direct Financial Assistance for For-Profits52 2(3)100 Micro-enterprise assistance10034 34(66)2 Public Facility and Improvements General (Peabody St. Park, City Hall Elevator)22 202 parks/playgrounds 20 0(2)65 Trees planted658 8(57)1 Senior Center10 0(1)12 Street/sidewalk improvements1219 197Public Services 50,000 persons assisted5000011895 11895(38105)Public Facilities & ImprovementsEconomic Development PROGRESS OF CONSOLIDATED PLAN 5-YEAR GOALSCDBG funds unless otherwise noted
MAPS
Low to Moderate Income Areas with Urban Renewal (SRA) boundaries and Ward boundaries. For a
digital version of the map go to http://salem.com/Pages/SalemMA_WebDocs/lma.pdf.
Geographic Distribution of Entitlement Funds Expended FY11
CITY OF S LEM, MA Report has been submi A
September 2
tted.
8, 2011
eport
nities for
Persons
Housing
lopment
Housing
portunity
9-0043
30/2010)
ON, M
w
Section 3 Summary R
Economic Opportu
Low and Very Low-Income
U.S. Department of
and Urban Deve
Office of Fair
and Equal Op
OMB Approval No.252
(exp. 11/
HUD Field Office : : BOST A
See Public Reporting Burden Statement belo
1.Recipient Na :
alem, MA
tate, zip)
Streeet
01970
umber:
C250029
, 45,477
122,425
erson:
. Guy
19-5685
4-0404
lem om
Month(s)
ar 2010
mitted:
/28/2011
- ame:
nt
me
City of S
Recipient Address: (street, city, s
120 Washington
Salem , Massachusetts
2. Grant N
B10M
3. Total Amount of Award: $ 1 2
Amount of All Contracts Awarded: $
4. Contact P
Jane A
5. Phone: 978-6
Fax: 978-74
E-Mail: jguy@sa .c
6. Length of Grant: 12
7. Reporting Period: Quarter 4 of Fiscal Ye
8. Date Re ort Subp
09
9. Program Code N
7-CDBG-Entitleme
Program Codes:
e Subsidy
elopment
peration
rnization
ssistance
ssistance
inistered
ment
tered
Programs
Programs
ory fields.)
ategory w of Total
Section 3
New Hi that are Sec.3 Residents e Hire r Trainees
tion 3 Employees
fe sionals 0 0 0.00 % 0.00 % 0
cia s 0 0 0.00 % 0.00 % 0
ical 0 0 0.00 % 0.00 % 0
Officials/Man ger 0 0 0.00 % 0.00 % 0
0 0 0.00 % 0.00 % 0
k d) 0 0 0.00 % 0.00 % 0 0 0 0.00 % 0.00 % 0
(unskille 0 0 0.00 % 0.00 % 0
ice Workers 0 0 0.00 % 0.00 % 0
Other (List) 0 0 0.00 % 0.00 % 0
Total 0 0 0
1 = Flexibl
2 = Section 202/811
3A = Public/Indian Housing Dev
3B = Public/Indian Housing O
3C = Public/Indian Housing Mode
4 = Homeless A
5 = HOME A
6 = HOME-State Adm
7 = CDBG-Entitle
8 = CDBG-State Adminis
9 = Other CD
10= Other Housing
Part I. Employment and Training (Columns B, C, and F are mandat
AJob C BNumber of CNumber of Ne Hires D% of Section 3 E%FNumber of
res w s Staff Hours foN
Se c
Pro s
Techni n
Office/Cler
s a
Sales
Craft Workers (s ille
Operatives (semiskilled)
Laborers d)
Serv
Part II. Contracts Awarded
ntracts:
e project
sinesses
usinesses
contracts
ntracts:
e project
sinesses
usinesses
tracts
f Efforts
ing. (Select yes to all that apply)
or project is located, or similar methods.
residents.
business concerns.
s located.
be below.
e
r
ires, they will be reported in FY12 (HUD FY11).
ct to Section 3.
vements
s were
ewed.
n file):
ation
at
ubcontract work.
eported on in FY12.
1. Construction Co
A. Total dollar amount of all construction contracts awarded on th
$ 122,425
B. Total dollar amount of construction contracts awarded to Section 3 bu
$ 0
C. Percentage of the total dollar amount that was awarded to Section 3 b
0.00 %
D. Total number of Section 3 businesses receiving construction
0
2. Non-Construction Co
A. Total dollar amount of all non-construction contracts awarded on th
$ 0
B. Total dollar amount of non-construction contracts awarded to Section 3 bu
$ 0
C. Percentage of the total dollar amount that was awarded to Section 3 b
0.00 %
D. Total number of Section 3 businesses receiving non-construction con
0
Part III. Summary o
Indicate the efforts made to direct the employment and other economic opportunities generated by HUD financial assistance for housing and
community development programs, to the greatest extent feasible, toward low- and very low-income persons, particularly those who are recipients of
government assistance for hous
No Recruited low-income residents through: local advertising media, signs prominently displayed at the project site, contacts with community
organizations and public or private agencies operating within the metropolitan area (or nonmetropolitan county) in which the Section 3 covered
program
No Participated in a HUD program or other program which promotes the training or employment of Section 3
No Participated in a HUD program or other program which promotes the award of contracts to business concerns which meet the definition of
Section 3
No Coordinated with Youthbuild Programs and administered in the metropolitan area in which the Section 3 covered project i
Yes Other; descri
For the $122,425 reported above, the City of Salem received a request for and issued a loan Agreement with
a non-profit agency for a portion of a housing rehabilitation activity as part of a much larger project. Th
agency had already hired their construction contractor (and its subcontractors) prior to our agreement fo
assistance, so we were unable to have the agency outreach to Section 3 businesses. However, we are
currently in contact with the non-profit agency to get written documentation on new hires from the
contractor/subcontractor, if any. If there were any new h
During our FY11 (HUD FY10), there were two City of Salem administered projects identified as being
subje
Derby/Congress Impro
A pre-construction meeting was held with the contractor in which Section 3 requirement
revi
Contractor efforts (copies o
o Placed subcontractor pricing request on firm’s website with Section 3 inform
o Sent email to Salem Housing Authority and Salem Chamber of Commerce requesting th
the subcontractor request for quotation to be placed on their jobs bulletin boards seeking
quotes for Section 3 s
Note: No funds were expended on this project during FY11 and the contractor has not yet
submitted his Section 3 reports. Therefore, it will be r
vements
tion 3
s
all bidders)
nt to:
notice
ystem
ulletin
gister
merce
ry
rs
d in FY12 and no funds were expended on this project during
FY11. Therefore, it will be reported on in FY12.
Other Efforts
Lafayette Street Traffic Impro
Legal and other notices indicated that the project was subject to the requirements of Sec
Sealed bid specifications included the Section 3 Clause and the Section 3 Certification for RFP
and Sealed Bids (mandatory to be signed by
Bid notices were se
o Salem News – Legal
o Commonwealth Procurement Access & Solicitation S
o Commonwealth of Massachusetts Goods & Services B
o Commonwealth of Massachusetts’ Central Re
o Salem Chamber of Com
o Directly to three M/WBE General Contractors from SOMWBA online Business Directo
List
o Directly to list of pre-qualified MassDOT contracto
o City of Salem website – Purchasing Department webpage
Note: This project was not awarde
bout best practices, City of Salem Department
ent Director and our Community Development
irector attended the NCDA Spring meeting including
t Community Development Director attended Other Federal Requirements Training and the
HOME Program – Part 2
ed as we
iness Affidavit.
City’s website, on the Purchasing Department
webpage at http://salem.com/Pages/SalemMA_Purchasing/section3.pdf
In an effort to fully understand the regulations and to learn a
of Planning & Community Development staff attended the following:
9/16/10 – The City’s Assistant Community Developm
Planner both attended the HUD sponsored Section 3 Program Training
3/22/11 – Assistant Community Development D
the break-out session entitled Section 3 – Peer to Peer Workshop
4/5/11 – Assistan
In November, 2010, the City of Salem created its Section 3 Plan, which continues to be amend
learn of new best practices. Also developed were new forms, including a Contractor Section 3 Reporting
Form, a Contractor/Subcontract Employment Report, a Resident Certification and a Bus
The City’s Section 3 Business Affidavit is located on the
f
me, as well as minority Salem residents. Public service agencies’ funded
programs are monitored on an annual basis to ensure that the policies are followed.
The Section 3 clause is and has always been included in CDBG contracts generated by the Department o
Planning & Community Development, regardless of contract amount. In addition, for more than 16 years,
social service agencies receiving CDBG public services funding have been required to provide copies of
their agency’s hiring and purchasing policies and these policies have been reviewed to ensure outreach
efforts are made to lower inco