CDBG FY12 ACTION PLANCITY OF SALEM
ONE-YEAR ACTION PLAN
FISCAL YEAR 2012
MAY 10, 2011
Kimberley Driscoll
Mayor
Lynn Goonin Duncan, AICP
Director of Planning & Community Development
Kathleen Winn
Deputy Director of Planning & Community Development
Jane A. Guy
Assistant Community Development Director
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY........................................................................................................................................I‐1
I.A. THE ACTION PLAN FOR COMMUNITY DEVELOPMENT .......................................................................................I‐1
I.B. DEVELOPING THE ACTION PLAN: CITIZEN PARTICIPATION & CONSULTATION ...............................................I‐2
I.C. RESOURCES FOR FISCAL YEAR 2012 ....................................................................................................................I‐3
I.D. OBJECTIVES AND OUTCOMES ...............................................................................................................................I‐4
I.E. EVALUATION OF PAST PERFORMANCE ...............................................................................................................I‐7
II. PROGRAM DESCRIPTIONS OF PROPOSED ACTIVITIES ................................................................... II‐1
II.A. AFFORDABLE HOUSING..........................................................................................................................II‐2
II.A‐1. Specific Housing Objectives....................................................................................................................II‐3
II.A‐2. Needs of Public Housing.........................................................................................................................II‐9
II.A‐3. Barriers to Affordable Housing ..............................................................................................................II‐9
II.A‐4. Homelessness and Homelessness Prevention ....................................................................................II‐10
II.A‐5. Fiscal Year 2012 Affordable Housing Activities.................................................................................II‐12
II.B. ECONOMIC DEVELOPMENT.................................................................................................................II‐14
II.B‐1. Strategies for Economic Development.................................................................................................II‐14
II.B‐2. Fiscal Year 2012 Economic Development Activities..........................................................................II‐16
II.C. NEIGHBORHOOD IMPROVEMENT......................................................................................................II‐18
II.C‐1. Strategies for Infrastructure and Public Facilities..............................................................................II‐18
II.C‐2. Fiscal Year 2012 Neighborhood Improvement Activities .................................................................II‐19
II.D. SOCIAL SERVICES (INCLUDING HOMELESS & NON‐HOMELESS SPECIAL NEEDS) ..............II‐20
II.D‐1. Strategies for Social Service Needs.......................................................................................................II‐20
II.D‐2. Fiscal Year 2012 Social Services Activities...........................................................................................II‐21
II.E. PLANNING & ADMINISTRATION.......................................................................................................II‐22
II.E‐1. Fiscal Year 2012 Planning & Administration Activities ....................................................................II‐22
II.F. FISCAL YEAR 2011 ACTION PLAN REVISIONS AND/OR ONGOING PROJECTS.........................II‐23
III. HUD REQUIRED NARRATIVES..................................................................................................................III‐1
III.A. GEOGRAPHIC DISTRIBUTION OF FUNDS ....................................................................................................... III‐1
III.B. MANAGING THE PROCESS AND INSTITUTIONAL STRUCTURE...................................................................... III‐1
III.C. COORDINATION WITH OTHER ORGANIZATIONS ......................................................................................... III‐2
III.D. CONSOLIDATED PLAN DEVELOPMENT PROCESS ......................................................................................... III‐3
III.E. CITIZEN PARTICIPATION – FY12 ACTION PLAN .......................................................................................... III‐3
III.F. AFFIRMATIVELY FURTHERING FAIR HOUSING ............................................................................................ III‐3
III.G. MONITORING ................................................................................................................................................ III‐8
III.H. LONG TERM COMPLIANCE AND PERFORMANCE MEASUREMENTS ............................................................. III‐9
III.I. LEAD‐BASED PAINT HAZARDS ................................................................................................................... III‐10
III.J. ANTI‐POVERTY STRATEGY .......................................................................................................................... III‐10
IV. APPENDIX
IV.A. APPLICATION: STANDARD FORM 424 & CERTIFICATIONS
IV.B. OVERVIEW OF CITIZENS PARTICIPATION
IV.C. MAPS
IV.D. SALEM CPMP NEEDS TABLES ‐ To be added to final plan
IV.E. NORTH SHORE HOME CONSORTIUM CPMP NEEDS TABLES
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I. EXECUTIVE SUMMARY
One of the most successful community development resources in America is the Community
Development Block Grant (CDBG) program from the U.S. Department of Housing and Urban
Development (HUD). Created in 1974, the CDBG program provides communities with a flexible
source of funds to be used to benefit low‐ and moderate‐income persons or to prevent or eliminate
slums and blight.
HUD Mission Statement
The CDBG Program provides annual grants to entitled cities and counties to develop viable urban
communities by providing:
Decent, Safe and Sanitary Housing
Suitable Living Environment
Expanded Economic Opportunities
Goals of HUD’s CDBG Program
HUD provides CDBG funds to entitlement community grantees to carry out a wide range of
community development activities. These activities are directed toward:
Revitalizing Neighborhoods
Economic Development
Providing improved community facilities and services
All activities carried out with CDBG funds must meet HUD’s national goals and objectives. The
City’s specific community and economic development, housing and social service activities funded
through the CDBG program are determined annually in the city’s Action Plan.
I.A. The Action Plan for Community Development
This Action Plan for Community Development for 2011‐2012 describes the projects that the City will
undertake in the next fiscal year with CDBG funds. It also briefly describes some of the other city
programs in the areas of housing, community and economic development that the City funds with
other resources.
This document is the City of Salem’s Action Plan for Community Development for Fiscal Year 2012
(FY12).1 The City circulates the Action Plan for Community Development in order to inform Salem
residents, leaders, businesses and organizations how Salem plans to use its CDBG funds and to
provide an opportunity for public comment.
Narrative sections are included throughout the plan in order to increase the public’s understanding
of the city’s community development objectives in an easy‐to‐read, yet comprehensive, format.
1This Action Plan covers activities for the period from July 1, 2011 to June 30, 2012, which is referred to in this document as
Fiscal Year 2012 or FY12.
I.B. Developing the Action Plan: Citizen Participation & Consultation
The City of Salem uses CDBG funds to support specific projects and initiatives that are needed by
Salem residents and that meet HUD’s national goals and objectives. Identifying the needs of the
community is an on‐going process. In spring, 2010, after months of public hearings and public
comment, the City adopted a Five Year Consolidated Plan, highlighting the community
development needs and goals for July 2010– June 2015. Each year, the City holds additional public
hearings and comment periods to review those goals and to make specific recommendations for
programs and initiatives to be undertaken in a given year. The result is the annual Action Plan,
designed to put into action the goals and strategies established in the Consolidated Plan.
For the FY12 Action Plan, citizen participation included two public hearings and a thirty day
comment period. In order to broaden public participation, outreach to participate includes legal
advertisements, postings at City Hall and City Hall Annex and on Salem Access Television, notices
sent to the Salem Public Library, Salem Council on Aging, Salem Housing Authority (SHA), all City
Councilors, members of the Citizens Advisory Committee and to various public service agencies and
neighborhood associations, as well as being placed on the city website. A complete Overview of
Citizens Participation is located in the Appendix and includes public hearing minutes.
It is important to note that the Action Plan is not a budget, but rather a planning tool that outlines the
priorities and activities that the City will undertake to address housing, community and economic
development needs. Proposed activities must meet HUD’s eligibility rules, and must be consistent
with the Consolidated Plan. The City identifies estimated costs for each proposed activity included in
this document. During the year, should the cost of the proposed activities change, these values can be
adjusted. In addition, the City can reallocate unused funds to assist new programs that may be
developed during the course of the year, or to supplement existing activities that require additional
funding.
I.B-1. Summary of Comments
The Draft Action Plan was made available for public comment from March 24, 2011 through April 22,
2011.
A public hearing regarding the Draft Action Plan was held on March 31, 2011. After a brief
presentation outlining the planning process and the proposed distribution of funds, the public was
invited to comment on the plan and ask any questions. Meeting minutes are found in the Appendix.
Written comments received included one letter with the following:
The writer was pleased with the expected installation of a Big Belly Solar Trash
Receptacle at the High Street Playground.
The writer was appreciative of the paving that occurred in his neighborhood in Fall, 2010.
He noted that additional streets and sidewalks in the neighborhood around Endicott
Street are in disrepair, that there are drainage issues to be resolved and that he requests
consideration for additional paving and repair. These comments have been forwarded to the
City Engineer, the Director of Public Services and the Mayor’s Office, where street improvements
in the worst condition are given first priority.
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The writer stated that double poles plague his neighborhood and hoped that the City
would focus energies to work with utilities companies to remove these poles. Although
not part of the CDBG program, City officials have been focused on this issue.
The writer stated that one if his Neighborhood Association’s highest priorities is for a
professional traffic study for his neighborhood. The Salem Police Department has indicated
that they would prefer to allocate funds to other areas that have speed problems, such as East
Collins Street, Webb Street and Franklin Street. Also, due to the 20% cap on Administrative and
Planning Activities and the City’s required funding match needed for a Massachusetts Historical
Commission Survey and Planning Grant project to be undertaken this year, there are no
additional study funds available.
I.C. Resources for Fiscal Year 2012
The City of Salem receives Community Development Block Grant (CDBG) funds from HUD to
benefit low‐ and moderate‐income persons or to prevent or eliminate slums or blight in Salem
through a variety of community development programs. CDBG is a formula‐based program
designed to develop viable urban communities by providing decent housing, a suitable living
environment, and expanded economic opportunities for persons of low‐ and moderate‐income.
In addition, Salem is a member of the North Shore HOME Consortium and receives an allocation of
Home Investment Partnership (HOME) funds from HUD. HOME funds are dedicated solely for
housing programs, and can be used to fund a wide range of activities that build, buy and/or
rehabilitate affordable housing for rent or home ownership. The City of Salem is one of thirty
member communities in the North Shore HOME Consortium. On behalf of the member communities,
the Consortium, through its lead community of Peabody, submits a Consolidated Plan for operating
the HOME program. The city will not use HOME funds to refinance any existing debt secured by
multifamily housing developments.
Along with HUD funds, our housing and economic loan programs generate program income, which
the City directs to existing or new programs as needed. Income is generated as loans are repaid or
recaptured from an assisted property or business. The City typically receives program income funds
each year and they help extend its ability to support CDBG‐eligible activities.
The total in Federal funding that Salem
expects to receive for FY12 includes
$1,042,096 in CDBG entitlement funds.
However, as of this date, we have not
received notification of the exact amount
of our formula funding. Should this
amount change, the City will issue a new
Application for Federal Funding.
Additional funds include an estimated
$181,248 in HOME funds and an
estimated $120,000 in program income.
In addition to these resources, many
activities leverage funding from other
sources to maximize the impact of the
ESTIMATED FY12 FUNDING
$1,042,096
$181,248
$120,000
CDBG HOME PROGRAM INCOME
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federal dollars the city receives. Sources may include, but are not limited to, homebuyer matching
funds and mortgages, Get The Lead Out funds, private donations, lender financing, Essex National
Heritage Commission matching grant funds, Urban Self‐Help funds, Environmental Protection
Agency funds, State Seaport Advisory Council, Massachusetts Historical Commission Low‐Income
Housing Tax Credits and other State or Federal programs.
Together, these resources fund a wide range of activities designed to develop and maintain
affordable housing, improve neighborhood public facilities, provide economic opportunities,
improve access for people with disabilities, provide critical public services, assist people who are
homeless, and prevent homelessness.
I.D. Objectives and Outcomes
In 2006, HUD devised a means to uniformly measure accomplishments funded through its housing
and community development programs. In doing so, HUD determined that activities should meet
one of three specific objectives and three outcomes. They are:
Objectives Outcomes
Suitable Living Environment Availability/Accessibility
Decent Housing Affordability
Creating Economic Opportunities Sustainability
The chart on the next page lists the activities proposed for FY12 and the objectives and outcomes they
meet.
Objectives
Activities must meet one of the following three objectives:
Suitable Living Environment ‐ In general, this objective relates to activities that benefit communities,
families, or individuals by addressing issues in their living environment.
Decent Housing ‐ Activities found under this objective cover the wide range of housing possible
under HOME or CDBG. This objective focuses on housing programs where the purpose of the
program is to meet individual family or community needs and not programs where housing is an
element of a larger effort. Such programs should be reported under Suitable Living Environment.
Creating Economic Opportunities ‐ This objective applies to economic development, commercial
revitalization, or job creation activities.
Outcomes
Activities must work to achieve one of three outcomes as follows:
Availability/Accessibility ‐ This outcome category applies to activities that make services,
infrastructure, public services, public facilities, housing, or shelter available or accessible to low‐ and
moderate‐income people, including persons with disabilities. In this category, accessibility does not
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refer only to physical barriers, but also to making the affordable basics of daily living available and
accessible to low and moderate income people where they live.
Affordability ‐ This outcome category applies to activities that provide affordability in a variety of
ways in the lives of low‐ and moderate‐income people. It can include the creation or maintenance of
affordable housing, basic infrastructure hook‐ups, or services such as transportation and day care.
Sustainability: Promoting Livable or Viable Communities ‐ This outcome applies to projects where
the activity or activities are aimed at improving communities or neighborhoods, helping to make
them livable or viable by providing benefit to persons of low‐ and moderate‐income or by removing
or eliminating slums or blighted areas.
Performance Indicators
Performance indicators are the measurements used to determine program impact. The chart below
identifies each activity’s applicable performance indicator and the estimated goal of housing units,
businesses or persons based on estimated funding.
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Category Source Objective Outcome # (Units, persons,
etc.)
Performance Indicators
Preservation of Existing Housing
Occupied by elderly
Brought to HQS
Brought lead safe
Made accessible
Homeownership Opportunities
First Time Homebuyer
Receiving Housing Counseling
Receiving Downpayment Assistance/Closing
Costs
Economic Development
Businesses assisted: New
Businesses assisted: Existing
Of Existing: Expansions
Of Existing: Relocations
DUNS number
Businesses assisted: New
Businesses assisted: Existing
Of Existing: Expansions
Of Existing: Relocations
DUNS number
Neighborhood Improvements
Splaine Park Infield & Irrigation CDBG Suitable Living
Environment
Sustainability 1 Pub. Fac. Receive a benefit that is no longer substandard
Mansell Park Skateboard Park Fence CDBG Suitable Living
Environment
Sustainability 1 Pub. Fac.With improved access to a facility or
infrastructure benefit
Social Service Activities
New access to service
Improved access to service
Not‐Applicable to Salemʹs Performance Measurement
South Harbor Garage Section 108 Loan
Repayment
CDBG
General Program Administration &
Rehabilitation Administration
CDBG/
HOME
Rental Assistance Programs HOME To be reported in IDIS by North Shore HOME Consortium
Affordable Housing Programs HOME
To be reported in IDIS by North Shore HOME Consortium
With improved access to a facility or
infrastructure benefit
Sustainability 1 Pub. Fac.
First Time Homebuyer Programs CDBG
Receive a benefit that is no longer substandardSustainability1 Pub. Fac.
Suitable Living
Environment
Decent Housing Affordability
9 Housing Units
7 Households
Housing Rehabilitation Loan Program CDGB Decent Housing Affordability
20 Businesses
1 Pub. Fac.Suitable Living
Environment
Sustainability
Creating
Economic
Opportunities
Availability/
Accessibility
With improved access to a facility or
infrastructure benefit
Business Technical Assistance CDBG
CDBG
Neighborhood Street & Sidewalk
Improvements
CDBG
Palmer Cove Park Improvements
Availability/
Accessibility
Lafayette Park Improvements CDBG
10,000 Persons
Small Business Finanancial Assistance
Programs
CDBG Creating
Economic
Opportunities
Affordability
1 Business
CDBG Suitable Living
Environment
Community Support Services Suitable Living
Environment
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I.E. Evaluation of Past Performance
During the many years of Salem’s CDBG Program, the City has made significant improvements 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.
The annual Consolidated Annual Performance and Evaluation Report (CAPER) provides an analysis
of the accomplishments and progress the City has made toward meeting the goals and objectives laid
out in its Five Year Consolidated Plan. The FY11 CAPER, for the current fiscal year, will be available
by September 30, 2011. The most recent CAPER, for FY10, evaluated the five fiscal year ‐ July 1, 2009
through June 30, 2010 ‐ of the prior 5‐Year Consolidated Plan. Eighty‐three percent of CDBG funds
spent in FY10 directly benefited low‐ to moderate‐income persons. This document is available at the
City of Salem Department of Planning and Community Development (DPCD), the Salem Public
Library and on the City’s website at www.salem.com. The chart below illustrates FY10 spending by
category, as a percentage of overall CDBG expenditures.
FY10 CDBG & HOME Expenditures by Category
Neighborhood
Improvements,
$656,959 , 34%
Affordable
Housing,
$684,466 , 35%
Economic
Development,
$165,076 , 8%
Public Services,
$190,326 , 10%
Planning &
Administration,
$255,503 , 13%
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II. PROGRAM DESCRIPTIONS OF PROPOSED ACTIVITIES
AFFORDABLE HOUSING, ECONOMIC DEVELOPMENT,
NEIGHBORHOOD IMPROVEMENT, PLANNING & ADMINISTRATION AND
SUPPORT FOR SOCIAL SERVICES
In the Five Year Consolidated Plan, Salem residents identified the community development needs
and goals for Fiscal Years 2011‐2015. The priority needs identified during that public process
included the need for affordable housing, economic development, neighborhood improvement and
support for social services. The City based its funding allocations on needs identified, proposed
activities and accomplishments to meet those needs and estimated funding needed to reach the goals
and accomplishment levels. The pie chart on this page illustrates the city’s proposed FY12 spending
by category, as a percentage of estimated CDBG and HOME funds. It is estimated that at least 70
percent of the FY12 CDBG funding and 100 percent of the HOME funding will be used for activities
that benefit persons of low‐ and moderate‐income. Total proposed expenditures based on current
estimates of funding to be available is $1,343,344.
FY12 PROPOSED EXPENDITURES (CDBG & HOME)
Neighborhood
Improvements,
$214,113 , 16%
Affordable
Housing, $579,910 ,
43%
Economic
Development,
$145,000 , 11%
Public Services,
$174,314 , 13%
Planning &
Administration,
$230,007 , 17%
This section describes the priority needs and identifies some of the strategies that the city will employ
to address them in the coming year. Included are a few of the housing and economic factors that
illustrate Salem’s need to continue to invest in housing and economic development and to support a
variety of programs to assist all of Salem’s low and moderate income neighborhoods. The narratives
describe the various programs and services that the city proposes to undertake in FY12. The
programs listed in the following sections are a combination of those managed by the city and by
community organizations.
Typically, the City identifies activities to be funded from a specific year’s resources, but for some
projects, such as multi‐year funding commitments or construction projects, the activity may be
completed in the following fiscal year or undertaken over several fiscal years. It is not uncommon for
the City to have projects that are ongoing from a previous fiscal year. Ongoing projects are not fully
described in this plan, but are listed on Page II‐23 for informational purposes.
Any obstacles and issues related to addressing underserved needs are discussed within each strategy
topic. Section II.A‐3 covers barriers to affordable housing.
II‐1
City of Salem FY 2012 Action Plan
II‐2
New homeowner Robert Monegro with
son Robert Monegro, Jr. and
granddaughter Katherine.
II.A. AFFORDABLE HOUSING
Salem, like many communities in Massachusetts, is struggling with
the impacts of a roller‐coaster real estate market, a foreclosure
crisis and a regional lack of affordable rental housing. These
conditions have resulted in more families at risk of homelessness.
As a result, we continue to place the creation and preservation of
affordable housing as the highest priority of Salem’s CDBG and
HOME programs.
Notable statistics about Salem’s population and housing stock
include:
Salem’s population is 46.7 percent low‐ to moderate‐
income persons.
Salem has old housing stock: fifty‐four percent of Salem’s
occupied housing units were built prior to 1940.
Twenty‐five percent of Salem homeowners are paying
thirty percent or more of their income in monthly housing
costs.
Almost twenty‐five percent of Salem renters pay fifty percent or more of their income in
monthly housing costs.2
Until the housing market began to falter nationally in 2006, single‐family sale prices in Salem had
been rising steadily since 2000 at an average annual rate of about 11 percent (not adjusted for
inflation), with a 4± percent turnover rate per year in the single‐family inventory. Similarly,
condominium prices increased 10 percent per year, on average, while 13 to 14 percent of the total
inventory cycled through the market. Since 2005, Salem has experienced a sharp drop in housing sale
prices. However, the rate of decline is consistent with that of other Eastern Massachusetts cities. In
2010, the average value of a single‐family home in Salem was $311,918: on par with neighboring
Peabody and lower than the average single‐family home value in most nearby communities.3
Despite the recent decrease in home purchase prices, homeownership is still unattainable for many
Salem families. Salem’s First‐Time Homebuyer Downpayment Assistance Loan Program has seen a
drop in the number of loan applications received. 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.
For renters, the lack of affordable rental housing region‐wide, partially due to foreclosures, continues
to heighten the demand on public housing and subsidy programs. The demand for subsidized
housing far exceeds the supply. People on waiting lists for units or vouchers must wait several years
before an opening is available.
2 U.S. Department of Commerce, Bureau of the Census, American Community Survey, 2006‐2008 Three‐Year
Estimates, Detailed Tables.
3 The Warren Group, Median Sale Prices and Total Sales: Salem, Massachusetts, user‐defined query at Town
Stats, www.thewarrengroup.com, and Massachusetts Department of Revenue (DOR), “Average Single‐Family
Tax Bill” and “Parcels by Use Class,” Municipal Data Bank, www.dls.state.ma.us/mdm.htm.
City of Salem FY 2012 Action Plan
II‐3
Foreclosure Crisis
Many homeowners who purchased homes in the booming housing market between 2002 and 2005
did so with an Adjustable Rate Mortgage. Since then, their mortgage rates have reset multiple times,
in some cases every six months. A homeowner who purchased a property in Salem in 2004 with a
very low interest rate and a monthly mortgage payment under $1,500, may now have a mortgage
interest rate between 9 percent and 11 percent with a monthly payment of over $4,000. Worse yet,
lenders required little down payment, so many homeowners financed over 90 percent of the purchase
price of the home. Now these owners are unable to refinance their homes to a lower rate, nor are they
able to sell their homes at a price that will cover their remaining mortgages due to declines in
property values. All of these factors ‐ increased mortgage rates, high loan to value ratios, and
decreased property values ‐ have resulted in a dramatic increase in foreclosures, not only in Salem,
but across the country.
In addition to those with adjustable rate mortgages, the foreclosure crisis affects owners with fixed‐
rate subprime mortgages.4 Many lenders approved owners for subprime mortgages with monthly
payments that were more than fifty percent of their household’s monthly income. Payments did not
include other housing costs like heat, electricity and taxes. Just a few years after purchasing their
homes, these households can no longer keep up with the high monthly housing costs. Some have
filed for bankruptcy and many are in danger of losing their homes to foreclosure.
Since 2006, mortgage foreclosures have been initiated against more than 300 properties in Salem, and
over one‐third are single‐family homes. Unlike other Essex County cities where multi‐family
foreclosures have been more common, in Salem the vast majority of foreclosures have involved
owner‐occupied single‐family homes, condominiums, and two‐family homes.5
More recently, the impetus for residential foreclosures is shifting away from subprime lending
toward the inability of families to pay for housing due to unemployment. As of December 2010, the
unemployment rate in Salem was 8.2 percent – slightly above the statewide unemployment rate of 8
percent, yet lower than Salem’s unemployment rate one year earlier (8.6 percent in November, 2009).6
II.A-1. Specific Housing Objectives
Salem is at the forefront of providing affordable housing for the North Shore area. Although
Massachusetts General Law Chapter 40B requires that 10 percent of the residential housing in every
city and town be affordable, 15.6 percent of the communities have actually met the challenge. Salem
is one of 55 communities to reach the 10 percent goal. In December 2010, MA Dept. of Housing &
Community Development calculated Salem’s Chapter 40B subsidized housing inventory at 13
percent, while the state average was just 9.7 percent. Of the 30 cities and towns in the North Shore
4 Subprime is a term that refers to the low credit rating of the homebuyer, not the terms of the loan.
5 Salem Department of Planning and Community Development, “Salem Master Foreclosure Tracking,”
(database) October 26, 2009; and The Warren Group, Distressed Properties, Salem, Massachusetts, 2007‐2009,
user‐defined query, Real Estate Records Search (database).
6 Massachusetts Department of Revenue, “Labor Force and Unemployment, 1990‐2010,” Municipal Data Bank.
City of Salem FY 2012 Action Plan
HOME Consortium, Salem has one of the highest percentages of affordable housing, second only to
Georgetown.
NS HOME Constortium Communities
Chapter 40B Subsidized Housing Inventory - December, 2010
Source: Mass Dept. of Housing & Community Development
0%2%4%6%8%10%12%14%
Boxford
West Newbury
Essex
Hamilton
Swam pscott
Rockport
Marblehead
Middleton
Rowley
Manchester
Topsfield
Merrimac
Gloucester
North Andover
Lynnfield
Amesbury
Ip swi ch
Newbury port
Salisbury
Haverhill
Wenham
Andover
Methuen
Wilmington
Danvers
Peabody
North Reading
Beverly
Salem
Georgetown
Salem administers several successful housing programs. The First‐Time Homebuyers Downpayment
Assistance Program provides assistance for the greatest hurdle that most families looking to purchase
their first home face—saving enough to make the required down payment. The Housing
Rehabilitation Loan Program works to rehabilitate housing to make it safe and sanitary. The city also
provides funding for homelessness prevention programs through partnerships with Catholic
Charities, North Shore Community Action Programs, Inc. (NSCAP), the Salvation Army and HAWC.
In addition, Salem is a member of the North Shore Housing Trust, a nonprofit corporation established
to undertake broad initiatives that will lead to the preservation and creation of housing that is
affordable to low‐ and moderate‐income families.
While the city has been able to accomplish a great deal, there is still more to do. The following is a
summary of Salem’s long‐term housing strategy to help address the pressing housing needs of its
residents. This strategy includes both new housing production and preserving the existing housing
stock for working families. The key components of the strategy include:
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City of Salem FY 2012 Action Plan
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, in FY06, the City committed to funding assistance on
a project at 20 Endicott St./7 High St. being undertaken by the Salem Mission (now known as
Lifebridge). It consisted of the acquisition of two buildings that together provide 22 units of
supportive housing to chronically homeless individuals and an additional unit for a low‐
income resident manager (the project secured over $2M in State and Federal funding).
Construction is complete and the units are now occupied.
The City has also committed funding to develop affordable housing units at the former St.
Joseph’s Church site. The Boston Archdiocese’s 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, 17 in the renovated school and 8 in the renovated rectory),
3,800 s.f. of commercial space and a 1,000 s.f. 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. 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
North Shore Community Development Coalition sponsors a number of programs that not
only develop affordable rental housing, but also increase affordable homeownership
opportunities. The City provided financial assistance toward the acquisition of a former
restaurant on Palmer Street for the construction of 15 affordable homeownership units. The
agency held their grand opening for the development in January 2008. However, due to the
poor for‐sale housing market, the units have been converted to affordable rental apartments.
Furthermore, funds for affordable housing are often set aside to provide resources for the
city, or a nonprofit partner, to take advantage of opportunities that arise to acquire available
abandoned, derelict properties and turn them back into decent, affordable homes. CDBG
funds helped Habitat for Humanity acquire 1 Harrison Avenue for redevelopment into two
affordable housing units that will be affordable for 30 years.
An Affordable Housing Fund
In 2003, the City entered into a Memorandum of Agreement with a housing developer that
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.
The City continues to negotiate with developers on a case‐by‐case basis for affordable units
or a contribution to the Trust. The Trust committed $25,000 to Salem Lafayette Development
as predevelopment funding for the St. Joseph’s Church redevelopment. The Trust also
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City of Salem FY 2012 Action Plan
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committed approximately $25,000 for the creation of several affordable housing units,
working with a local non‐profit agency.
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. The following chart shows the number of
Foreclosure Deeds (properties that became bank‐owned) in Salem for the past four complete
calendar years7 .
7 The Warren Group, “Foreclosure Stats”, www.thewarrengroup.com.
City of Salem FY 2012 Action Plan
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 and those about to be auctioned 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.
The Massachusetts Foreclosed Properties Initiative is a new statewide program managed by
Citizens’ Housing and Planning Association (CHAPA). CHAPA will serve as a foreclosed
properties “clearinghouse” by connecting banks that own foreclosed properties with
approved local organizations ‐ called “qualified purchasers” ‐ which will purchase the
properties and upgrade these homes for low‐ and moderate‐income families. The goal is to
get the properties back on the market and re‐occupied as affordable homes as soon as
possible. CHAPA has approved five non‐profit affordable housing developers as qualified
purchasers of foreclosed properties in Salem: Beverly Affordable Housing Coalition, Citizens
for Adequate Housing, Harborlight, North Shore Community Development Coalition, and
the Planning Office for Urban Affairs. The City is responsible for distributing the properties
from CHAPA’s database to one organization at a time and will draft a protocol for this
distribution based on the type and location of housing each organization is interested in
acquiring. The developer would be responsible for securing project funding.
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
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City of Salem FY 2012 Action Plan
$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.
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 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
This year, the City will continue its commitment to assist families with rental down payment
assistance (first and last month’s rent and security deposit) to provide families with the funds
necessary to secure affordable housing. The program is an important tool for helping families
with the costs of moving into a decent apartment.
Rehabilitation of Existing Housing
The majority of the housing stock in Salem was built prior to 1949. While older homes are an
integral part of Salemʹs 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. We have expanded the program 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 with a lead poisoned child
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, Salem 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.
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City of Salem FY 2012 Action Plan
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 13 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.
II.A-2. Needs of Public Housing
HUD has not identified the Salem Housing Authority as a “troubled” public housing agency. As
stated previously, the SHA continues to implement its modernization programs through separate
funding sources.
The City of Salem consulted with the Salem Housing Authority on public housing needs as part of
the consolidated planning process, including coordinating one of the public participation meetings
with the Resident Advisory Board (RAB). This meeting was held at one of the larger public housing
buildings and was well attended. In developing the plan, city staff considered the needs and
comments expressed by SHA and other residents, municipal departments and local agencies. In
addition to requiring a tenant to sit on the SHA board, the RAB encourages residents to be involved
in management.
All public notices and copies of the Consolidated Plan, annual Action Plans and annual CAPERs are
provided to the Salem Housing Authority to encourage public housing residents’ involvement.
II.A-3. 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 recently entertained and approved a
friendly Chapter 40B Comprehensive Permit for the redevelopment of the former St. Josephʹs church
site. The existing zoning was a barrier to affordable housing. This approval effectively waived certain
zoning requirements, including density, height and use. In addition, The City Council rezoned the
site to Central Business zoning, allowing a missed use component, thus paving the way for the
upcoming development of new affordable rental housing in the Point Neighborhood. In addition, the
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City of Salem FY 2012 Action Plan
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 (see discussion above) has created new obstacles
to developing and purchasing affordable housing.
II.A-4. Homelessness and Homelessness Prevention
In addition to being a regional leader in providing affordable housing, Salem is at the forefront of
providing services for those who are homeless or at risk of homelessness. Several agencies that serve
both Salem and the region are located in the city. Salem is home to the Lifebridge, a 34‐bed shelter for
men and women 18 years or older. Salem‐based HAWC is a regional agency offering emergency
shelter for battered women and their children. The Salvation Army provides short‐term emergency
housing at local hotels/motels.
DPCD works directly with the NSCAP to expand and enhance its existing programs that address the
housing crisis for homeless families and those at risk of homelessness. Since 2006, NSCAP has
assisted over 2,700 Salem residents with job training, legal advocacy, housing assistance (including
fuel assistance and homeless prevention) and language learning.
In recent years, NSCAP’s Housing Law Project provided brief legal service or direct legal
representation to hundreds of low‐income tenants. NSCAP works with clients to resolve housing
issues and have preserved or renegotiated tenancies for numerous clients. Based on this experience,
NSCAP concludes that a majority of clients are able to avoid homelessness with a modest amount of
legal advocacy and funds. However, in March 2010, NSCAP provided the following statistics:
63% of NSCAP’s clients who are Salem residents have incomes below the Federal Poverty
Level:
The typical hourly wage of a NSCAP client is $13.00 per hour; and
The price of heating oil has increased from $2.44/gal to over $3.59/gal (32% increase) in the
last year while the fuel assistance benefit has remained the same.
The continued relevance of these statistics, along with the escalating mortgage crisis, makes homeless
prevention a priority need.
II.A-4.1. Sources of Funds
The City of Salem relies on its federal funding to address homeless needs and conduct homeless
prevention activities. Each year, through the public services program, the City of Salem solicits
proposals from nonprofit organizations for housing and community services. Through this process,
the City funds various homeless programs including, but not limited to: rental down payment
assistance program, homeless prevention emergency assistance, outreach programs, and transitional
housing.
The North Shore HOME Consortium, of which the City is a member, also has received funds through
the McKinney‐Vento Homeless Assistance Act programs and the Consortium distributes these funds
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City of Salem FY 2012 Action Plan
directly to area organizations. In the past, the Lifebridge has been a subrecipient of these funds. The
Lifebridge also receives funding from the state, other nonprofit organizations and private
corporations.
II.A-4.2. Homelessness & Chronic Homelessness
Understanding that people who are homeless have individualized needs, the City of Salem works
with service providers that offer an array of services that address needs ranging from meal provision
to permanent housing. Some of the agencies the City funds that address homelessness include:
Salvation Army – provides short‐term emergency housing at local hotels/motels.
Lifebridge (formerly the Salem Mission) – Lifebridge provides meals and clothing, delivers
on‐site medical and mental health services and refers clients to services including housing,
health, public benefits, employment and training, veterans’ services, detoxification, substance
abuse and mental health assistance. Having recently moved to a new, larger facility, they are
working toward expanding and adding programs, such as computer training, to help
increase self‐sufficiency, with the goal of working toward eliminating the cause of
homelessness, rather than just addressing the symptoms of homelessness.
HAWC – a regional agency headquartered in Salem which offers emergency shelter for
battered women and their children and provides counseling, referrals, advocacy and day
care.
Haven From Hunger – provides meals, a food pantry and various job‐training programs.
St. Joseph’s Food Pantry – provides a food pantry for low and moderate income residents
and food distribution to elderly and disabled residents.
In FY06, the City committed to funding assistance on a project at 20 Endicott St./7 High St. being
undertaken by the Lifebridge as part of the Mission’s goal to end homelessness by helping homeless
individuals to achieve self‐sufficiency. It consisted of the acquisition of two buildings that together
would provide 22 units of supportive housing to chronically homeless individuals and an additional
unit for a low‐income resident manager (the project secured over $2 million in State and Federal
funding). Construction is complete and the units are occupied.
In addition, the City has a long‐established Downtown Outreach Program Steering Committee to
address homelessness in the downtown area. The Committee continues to meet three times yearly to
review the progress of the Downtown Outreach Worker (provided through Lifebridge) in connecting
homeless individuals with housing, detoxification and other human services. They also discuss issues
such as the availability of detoxification beds and long‐term planning efforts for homeless individuals
who refuse services due to mental health or alcohol/drug abuse problems. The Committee includes
representatives from the downtown business community, Lifebridge, and the Salem Police
Department, as well as other interested individuals.
The City of Salem also continues to support and administer Salem H.O.P.E. (Human Organization
Partnership Effort) a network of human service providers that meets quarterly at rotating social
service agency locations. Agency representatives meet, exchange information, announcements and
updates to enhance coordination of programs. They work to fill gaps in services, avoid duplication of
services, and coordinate efforts. DPCD administers this program and produces the Salem H.O.P.E.
digital newsletter quarterly.
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City of Salem FY 2012 Action Plan
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II.A-4.3. Homeless Pr v ntion
Homeless prevention activities sponsored by the city come in various forms. Catholic Charities,
HAWC, Salvation Army and NSCAP all provide a CDBG‐funded Homeless Prevention Program, to
provide emergency assistance to families at‐risk of homelessness through eviction. Food pantries,
such as CDBG‐funded programs at St. Joseph’s Food Pantry and Haven From Hunger, help subsidize
food costs for very‐low income families. Child care services (through Salem Community Child Care
and Salem YMCA) and prescription assistance (through the Salvation Army) help families financially
so that they afford other basic needs and avoid homelessness.
II.A-5. Fiscal Year 2012 Affordable Housing Activities
The City of Salem undertakes many strategies for families to live in decent, affordable housing. The
affordable housing activities and homelessness programs that will receive FY12 federal funding are
described below. All of the programs are either available citywide to households that meet HUD’s
income eligibility rules or are targeted to low‐ and moderate‐income neighborhoods.
First‐Time Homebuyer Downpayment Assistance Loan Program
The First‐Time Homebuyer Downpayment Assistance Loan Program provides 0 percent interest,
deferred‐payment loans to families that wish to purchase a home in the City of Salem. The loan is
deferred, as long as ownership of the property is not sold, transferred or refinanced. This
program provides renters with the opportunity to become homeowners, while potentially freeing
up a rental unit for another family.
Projected Accomplishments: 7 Households Assisted
Proposed Funding: $57,000 HOME
This activity will also use carried over funding from FY11.
Rental Assistance Programs
The Rental Downpayment Assistance Program, administered through local social service agencies,
provides assistance to low‐ and very low‐income Salem residents to help pay first and last
month’s rents and security deposits to enable them to obtain decent housing or to help
8 Rents are established by HUD annually.
Housing Rehabilitation Loan Program
The Housing Rehabilitation Loan Program provides technical and financial assistance to help
homeowners make needed improvements to their properties. The program’s primary objectives
are the elimination of lead paint, hazardous health and safety conditions, code violations, and
barriers to accessibility. The program rehabilitates owner‐occupied single and multi‐family
properties, which also creates and/or improves rental opportunities. As requested by residents to
address the issue of substandard rental housing, this program also addresses building code
violations and health and safety issues in investor‐owned properties with preference to locations
in low to moderate income neighborhoods. Upon completion of the rehabilitation, and for at
least 15 years thereafter, all rental units assisted with federal funding will be restricted to
affordable rents.8
Projected Accomplishments: 9 Housing Units Rehabbed
Proposed Funding: $282,347 CDBG; $67,185 HOME
City of Salem FY 2012 Action Plan
subsidized rents on a temporary basis for families escaping violence.
Projected Accomplishments: 39 households assisted
Proposed Funding: $50,000 HOME
Community Support Services (housing services, homeless and/or homeless prevention
programs)
This program provides grants to nonprofit agencies for social service programs that assist low‐
and moderate‐income Salem residents in need. Funded programs are selected through a
competitive Request for Proposal process. Included is the Homelessness Prevention Program that
provides emergency grants in order to eliminate rent or utility arrearages in order to prevent
families from being displaced, the Downtown Outreach Program which provides for a Street
Advocate to connect homeless persons to shelter and other needed services, and a First‐Time
Homebuyer education program, as well as an accessible housing services for those with
disabilities.
Agencies submitting proposals for FY12 funding include:
Catholic Charities
HAWC
NSCAP
Salvation Army
Lifebridge
Independent Living Center
Homeless Prevention Program
Homeless Prevention Program
Homeless Prevention Program
Homeless Prevention Program
Street Outreach
Housing Assistance Services
Community Teamwork, Inc. First‐Time Homebuyer Training
Projected Accomplishments: Grants for up to 7 social service agency programs.
Proposed Funding: See Community Support Services in the Social Services section
Rehabilitation Administration
Provides for the administration costs necessary to manage our rehabilitation programs, including
inspectional services, mortgage filings, salary, benefits and non‐salary expenses.
Proposed Funding: $116,315 CDBG; $9,062 HOME
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City of Salem FY 2012 Action Plan
II‐14
2010 new business ribbon cutting. Salem has a net
gain of more than 60 businesses in the last four years.
II.B. ECONOMIC DEVELOPMENT
According to the 2000 Census, Salem has 46.7 percent
low‐ and moderate‐income residents. Further, the
Massachusetts Department of Revenue reports that
Salem’s median household income in 2000 of $44,033
ranked 286 out of 351 cities and towns in the
Commonwealth.9 Salem has not been immune from
the current economic crisis and the resulting job
losses. As of January, 2011, the unemployment rate in
Salem was 8.9%, compared to 8.3% statewide.10 For
these reasons, the City of Salem is committed to
continuing efforts to stimulate economic development
in order to create jobs. DPCD works to bring new
employers to the city, while retaining jobs by helping
existing businesses improve their commercial infrastructure or expand their operations. The
improved vitality in our neighborhood and downtown commercial districts has the additional benefit
of providing goods and services locally and of stabilizing neighborhoods, as well as improving public
safety. In the coming fiscal year, the city will continue to redevelop commercial districts and work
aggressively to attract employers who provide good jobs at good wages for Salem residents.
II.B-1. Strategies for Economic Development
The following is a summary of Salem’s long‐term economic development strategy, which will help to
generate new tax revenues, to establish new businesses that provide residents with the products and
services they desire, to create new jobs, and to revitalize our commercial areas. The key components
of the strategy include:
Providing Additional Financing Opportunities for Businesses
Businesses often need additional assistance and more creative financing options than may be
offered by banks. Even the very best innovative new business idea often has difficulty filling
the “gap” between what they can invest and what banks will loan, versus the cost of the
project. Without capital, new equipment or storefront improvements, some of the best small
businesses can fail. The Salem Business Loan Program offers expanded financing
opportunities for local entrepreneurs, while creating jobs and revitalizing the city. The
program provides these 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)
9 Commonwealth of Massachusetts, Department of Revenue, Division of Local Services Municipal Databank,
“Wealth.xls,” www.mass.gov/dor.
10 Northshore Workforce Investment Board.
City of Salem FY 2012 Action Plan
Commercial Revitalization – provides loans to business owners in the downtown and
eligible neighborhood districts to assist with the exterior rehabilitation of their
business and/or to correct code violations
Special Economic Development – provides loans to business owners throughout the city in
exchange for job creation and/or job retention for low‐ and moderate‐income people.
Low‐interest loans for commercial, industrial or mixed‐use projects help create and retain
jobs while improving the appearance of neighborhoods and promoting economic growth.
The DPCD will continue to work with business owners to help finance a small project or to
assist with gap financing of larger projects.
Providing Technical Assistance for Small Businesses
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’s Economic Development Manager assists with new business location or existing
business relocation, walks new businesses through the permitting process, and coordinates
available loan programs. The city works in collaboration with several agencies to improve
economic opportunity in Salem by providing technical assistance to businesses. The Salem
Main Street Initiative, Salem Partnership, Salem Chamber of Commerce, Destination Salem,
SBA Small Business Development Center and Salem State University Assistance
Corporation’s Enterprise Center each work in cooperation with the city to support local
business, with some of the programs targeted toward low‐income, minority and female
entrepreneurs. In 2007, the City finalized an updated version of the Doing Business in Salem
Guide that is available on the City’s website.
Revitalizing the Downtown and Neighborhood Commercial Districts
Healthy vibrant downtown and neighborhood commercial districts are essential to Salem’s
overall economic health. The Storefront Improvement Program helps to improve the physical
appearance of districts by advocating for appropriate design and historic preservation. By
offering small business loans and grants toward new signage and façade improvements, the
City is helping to enhance our historic neighborhood business districts with financial
incentives to Salem business and property owners. Furthermore, the City has developed the
City of Salem Commercial Design Guidelines to help business and property owners with
appropriate design. Copies are free at the DPCD office or on the City’s website.
Attracting Major Employers
Salem has moved from a manufacturing and retail base into a diversified, knowledge‐based
economy. Nevertheless, no matter which industry sector is most prominent, the need still
exists for attracting employers who can provide jobs that give working families a chance to
earn a decent living.
In partnership with the state, Salem will continue to work to attract major employment
opportunities. The Economic Target Area Program, for example, is a special designation by
the Commonwealth that allows Salem to offer innovative tax programs and creative
financing options, including Tax Increment Financing, as an incentive for new or expanding
businesses. MassDevelopment, a state financing agency, also continues to be a significant
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City of Salem FY 2012 Action Plan
partner in Salem’s revitalization, providing much needed financing for manufacturing
businesses moving or expanding in Salem. The effort to attract new employers requires an
ongoing campaign to market and promote Salem as a great place to live and work.
Destination Salem is undertaking such a campaign.
Revitalizing Abandoned Industrial Parcels
In old cities, especially in the industrial northeast where very little wide‐open “greenfield”
space remains for new development, one component of economic revitalization is the reuse
of “brownfields.” Brownfields are abandoned or underutilized industrial parcels, often
contaminated, that blight a neighborhood and lie dormant on the tax rolls. Revitalizing these
sites ‐ for commercial reuse, new residential or mixed‐use development (residential and
neighborhood retail) ‐ can help restore a neighborhood and make the land productive again.
The City utilized funding received through the EPA for remediation grants to help with the
clean‐up of two sites in the Point Neighborhood. Returning these and other brownfields sites
to productive use will help improve the appearance of the neighborhoods and will help
foster economic development. Currently, the City, in coordination with the Metropolitan
Area Planning Council and the City of Peabody, is implementing a $1 million EPA
Brownfields Assessment Grant. This grant will provide funding to private property owners
to assess brownfields sites in order to plan for their redevelopment.
II.B-2. Fiscal Year 2012 Economic Development Activities
The City of Salem is dedicated to neighborhood economic development through efforts to revitalize
commercial districts, improve exterior building façades, and assist local business owners. The
following is a brief overview of the programs the city will fund in FY12. Program delivery costs for
loan administration may be included in the total economic development expenditures.
Small Business Financial Assistance Programs
The City provides financial assistance to local business owners through its Business Loan
Program and Storefront Improvement Program, which are operated out of a funding pool.
The Salem Business Loan Program works to expand financing opportunities for local entrepreneurs,
while creating jobs for low‐ and moderate‐income individuals and revitalizing the city’s urban
renewal area and income‐eligible neighborhoods. The program provides low‐interest loans to
qualified entrepreneurs to cover the gap between the amount of financing needed for an
economic development project and the amount that conventional lenders can finance. Funds are
available for acquisition, construction, or rehabilitation of real property and for financing related
to the purchase of equipment, fixtures, inventory, leasehold improvements and working capital.
Terms and conditions of the loans vary.
The Storefront Improvement Program – This 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 allows a one‐to‐one match for façade
improvements. The match from the city is up to $5,000 for each storefront.
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City of Salem FY 2012 Action Plan
Projected Accomplishments: 1 business loan
Proposed Funding: $60,000
Location: Citywide availability with projects selected on a rolling basis.
Note: This program will also use carried over funds from FY11 to undertake storefront
improvements
Business Technical Assistance
The City helps to coordinate and fund technical assistance services to local business owners. In
FY12, the City will continue to fund the Salem Main Streets Downtown Program. The goal of the
Program is to assist in the revitalization of downtown Salem as a vibrant year‐round retail, dining
and cultural destination through business recruitment, retention and promotion. Main Streets
works with entrepreneurs and business owners to secure needed resources and navigate approval
processes. Main Streets also works to improve the downtown business climate in support of
additional economic development. Technical assistance is also provided to new and existing
businesses by the City’s Economic Development Manager, who administers the City’s financial
assistance programs and provides administration to the Salem Redevelopment Authority, which
oversees the Urban Renewal Areas.
Projected Accomplishments: 20 microenterprise owners or potential owners assisted
Proposed Funding: $85,000
Location: Citywide with a preference for businesses located in income eligible neighborhoods
and urban renewal areas
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City of Salem FY 2012 Action Plan
II.C. NEIGHBORHOOD IMPROVEMENT
Residents depend on neighborhood infrastructure and
public facility improvements to make the city
the livable community that it is. By continually
investing in neighborhoods, Salem strives to be the best
place it can be for people to live and work. Park and
street improvements, handicap access and annual tree
planting are projects that can be the life of a
neighborhood. In FY12, the City will continue the
investment in various neighborhoods.
Lafayette Street Park is slated for improvements. II.C-1. Strategies for Infrastructure and Public
Facilities
Public Infrastructure and Traffic Improvements
In FY12, CDBG funds will continue to be used to undertake improvement projects in eligible
neighborhoods, such as street paving, new sidewalks, curbcuts/crosswalks, traffic
improvements and the removal of architectural barriers citywide. Recently, the City
completed the redesign of the Congress/Peabody/Ward intersection. Funded in previous
year, the proposed traffic and pedestrian improvements at the Derby/Congress intersection is
underway. Also underway, is the priority bike route, comprised of pavement markings and
signage for on‐road and off‐road bike lanes, including new designations in low/mod
neighborhoods.
Neighborhood Planning Initiatives
The City is committed to conducting neighborhood planning initiatives. In Summer, 2010, a
ribbon cutting was held for the new Salem Harborwalk and the new 15 Peabody Street Park,
located in the Point Neighborhood. The City has finalized a design for traffic, streetscape
and pedestrian safety improvements on Lafayette Street from the intersection at Harbor
Street to the intersection at Washington and Dow Streets. Lafayette Park, also in this
neighborhood, will be redesigned in coordination with the adjacent St. Joseph’s site
redevelopment.
In addition, the city continues to assess and clean‐up known contaminated sites and is
currently working with state and federal agencies on several parcels.
Public Facility Improvements
The city will continue to invest in efforts that strengthen its public facilities. Recently the
construction of a new elevator and related handicap access improvements were undertaken
at City Hall, as well as Old Town Hall fire safety upgrades and accessibility improvements at
the Witch House. In addition, the City was approved for a HUD Section 108 loan in order to
acquire a commercial condominium for the creation of a new senior center.
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City of Salem FY 2012 Action Plan
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II.C-2. Fiscal Year 2012 Neighborhood Improvement Activities
The City of Salem strives to create a truly livable community by continuing to invest in its
neighborhood infrastructure and public facilities. Due to the size and scope of these projects, some
require multi‐year funding; however, the proposed funding levels shown below are for this fiscal
year.
Neighborhood Street and Sidewalk Improvements
The City’s Street Improvement Program funds the repaving of streets, installation of curb
cuts/crosswalks, and the replacement of sidewalks in eligible neighborhoods.
Projected Accomplishments: Locations of street and sidewalk improvements is to be
determined.
Proposed Funding: $100,000
Splaine Park Infield & Irrigation
A new infield will be built by grading, re‐sodding and adding clay and an irrigation system will
be installed throughout the ballfield.
Projected Accomplishments: New infield & irrigation system
Proposed Funding: $19,500
Mansell Park Skateboard Park Fence
Installation of 8’ fence at the skateboard park with pedestrian/vehicle openings.
Projected Accomplishments: New fence installation
Proposed Funding: $15,000
Palmer Cove Park Improvements
Undertake improvements to this neighborhood park for athletic activities.
Projected Accomplishments: Various park improvements
Proposed Funding: $11,250 ‐ This activity may also use carried over funding from FY11.
Harbor/Lafayette/Dow/Washington Street Improvements
Undertake intersection, traffic, streetscape and pedestrian safety improvements.
Projected Accomplishments: Various infrastructure improvements
Proposed Funding: $10,000 – This project will also include carried over funds from FY11.
South Harbor Garage – Section 108 Loan Repayments
This provides for the annual payment of principal and interest for a HUD Section 108 Loan
obtained in 1994, which was used toward the acquisition of land and construction of the South
Harbor garage and retail storefront units.
Proposed Funding: $44,363
The Neighborhood Improvement category will also include $14,000 for program delivery costs.
City of Salem FY 2012 Action Plan
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Lifebridge volunteers serve meals three times per day.
II.D. SOCIAL SERVICES
(INCLUDING HOMELESS AND
NON-HOMELESS SPECIAL
NEEDS)
Along with housing services to help provide decent,
affordable housing and economic development activities
to help provide good jobs at good wages, individuals and
families may have additional needs that are specific to
their household. The Five Year Consolidated Plan
identified the need for various social service programs to
income population and those with special needs (i.e. physically or mentally disabled, elderly or frail
elderly, youth, non‐English speaking residents, persons living with HIV/AIDS, substance abuser
homeless persons and families). Each year, Salem sets aside funds for social service programs to
address these special needs.
primarily benefit Salem’s low‐ to moderate‐
s and
Through a Request for Proposals process, the city makes awards to nonprofit service organizations
that offer such services. Public services eligible for funding include, but are not limited to,
employment, crime prevention, child care, health, substance abuse, education, fair housing
counseling, energy conservation, recreation programs, food programs and services for senior citizens.
Target populations include, but are not limited to, persons with HIV/AIDS, abused children, battered
spouses, elderly and frail elderly, minorities, non‐English speaking residents, residents of public
assisted housing, persons who are mentally ill or mentally retarded, substance abusers, youth and
persons with disabilities. Funding proposals received are available for viewing at the DPCD.
II.D-1. Strategies for Social Service Needs
In Fiscal Year 2012, the City of Salem will continue its support of social service agencies that serve
Salem’s residents in need. The key components of the strategy include:
Provide Financial Assistance to Priority Social Service Programs
Through an annual competitive funding round, the City of Salem financially supports
nonprofit social service agency programs that provide needed services that help families
meet the cost of living, promote family self‐sufficiency, serve special populations or provide
crisis intervention assistance. In addition, along with the many programs that help directly
with housing and household expenses (see Affordable Housing), funds support several other
programs which indirectly assist with housing in many ways such as increased pay (i.e. job
training, ESL programs) and decreased monthly expenditures (i.e. child care, prescription,
food programs) so households can better afford rent or mortgages. Note: HUD regulations cap
the amount of funds used for social services at 15 percent of the total (current year entitlement plus
prior year program income x 15 percent).
Provide Administrative Assistance to Salem H.O.P.E.
Salem H.O.P.E. is a networking group of social service agencies that meet at rotating public
service agency locations. Open to all social service agency representatives that serve Salem
residents, it is a forum to work toward filling gaps in services and avoiding the duplication of
City of Salem FY 2012 Action Plan
II‐21
efforts. DPCD staff coordinates the quarterly meetings and distributes the digital quarterly
Salem H.O.P.E. newsletter.
II.D-2. Fiscal Year 2012 Social Services Activities
The City of Salem has established priority goals that support a broad range of social service programs
that are consistent with the needs and goals identified in the Five Year Consolidated Plan.
Community Support Services
This program provides grants to nonprofit agencies for social service programs that assist
homeless individuals and families, as well as low‐ and moderate‐income Salem residents in need.
Funded programs are selected through a competitive Request for Proposal process.
Agencies submitting proposals for FY12 funding to date include:
AGENCY PROGRAM
Bentley Elementary School After School Programs
Boys & Girls Club Gang Prevention through Mentoring
Boys & Girls Club Gang Prevention: Athletics
Catholic Charities Little Lambs Program
Cerebral Palsy Assoc. N. S. Infant & Toddler Program
Essex County Community Foundation F1rstJobs
Family Self‐Sufficiency Center, Inc. ESL Literacy
Family Self‐Sufficiency Center, Inc. Teen Age Drop In Center
Haven From Hunger Food Pantry Program
HAWC Emergency Shelter Childrenʹs Program
Lifebridge Medical Support Services
Morgan Memorial Goodwill Indust. Intensive Career Planning Program
NSCAP CyberYouth College Success Program
North Shore CDC Community English Program
North Shore CDC Housing Stability Program
Salem Community Child Care Kindergarten After School Child Care
Salem Council on Aging Elder & Handicapped Transportation Program
Salem Police Dept. Point Neighborhood Targeted Patrols
Salem YMCA School Age Child Care
Salem YMCA Teen Initiative
SATV Youth in Action
Friends of St. Josephʹs Food Pantry North Shore Moving Market
Friends of St. Josephʹs Food Pantry Harvest of Hope Food Pantry
VOCES Hispanic Education Program
Wellspring House MediClerk Job Training Program
Proposed Accomplishments: Grants for approximately 25 social service agency programs to
assist an estimated 10,000 persons.
Proposed Funding: $174,314 (will also fund Community Support Services described in the
Housing section)
City of Salem FY 2012 Action Plan
II.E. PLANNING & ADMINISTRATION
CDBG funds may be used to cover costs associated with
planning and general administration. In Fiscal Year 2012, the
City of Salem plans to use CDBG funds to provide the tools
needed to manage the CDBG program.
II.E-1. Fiscal Year 2012 Planning & Administration Activities
General Program Administration
This activity provides for the necessary general administration costs of the CDBG program
oversight and coordination. It also includes the development of plans and studies and the
provision of public information. General administration costs are capped at 20 percent of the
available CDBG funds.
The City has applied for a Survey and Planning Grant from Massachusetts Historical
Commission which, if awarded, will require a cash match.
Proposed Funding: $230,007 (salary, benefits, non‐salary expenses, studies)
The City will undertake a restoration plan
for the Salem common fence.
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City of Salem FY 2012 Action Plan
II.F. FISCAL YEAR 2011 ACTION PLAN REVISIONS AND/OR
ONGOING PROJECTS
Action Plan Revisions
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 are no revisions proposed for the FY11 Action Plan.
Ongoing Projects
In addition, while a number of activities take place entirely in one fiscal year, the City undertakes
projects of a larger size, scope or complexity as multi‐year projects. The chart below provides a list of
ongoing activities and those that will likely continue into FY12.
Project Description
Economic Development Programs
Programs include Business Loans, Neighborhood Storefront
Improvements. Business Technical Assistance and Salem Main
Street Initiative
Derby/Congress Traffic &
Pedestrian Improvements
Installation of signalization to enhance safety for pedestrian
and vehicular traffic.
Harbor/Lafayette/Dow/Washington
Improvements
Intersection, traffic, streetscape and pedestrian safety
improvements
Housing Programs
Included are First‐Time Homebuyers Downpayment
Assistance Program, Housing Rehabilitation Loan Program
and Affordable Housing Programs.
Lafayette Park Improvements Park improvements to be coordinated with the redevelopment
of the St. Joseph’s site.
St. Joseph’s Site Redevelopment Development of affordable housing.
Palmer Cove Park improvements Improvements to the basketball court and baseball field
Bike Path in LMI area Bike path delineation through striping and signage
Point Neighborhood History Sign Replacement and relocation of sign
Tree Planting Program Planting of new street trees in eligible areas
Senior Center Financing toward acquisition of a space for a new senior center
Winter Island Master Plan Study
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City of Salem FY 2012 Action Plan
III. HUD REQUIRED NARRATIVES
III.A. Geographic Distribution of Funds
Some of the activities the City of Salem plans to undertake in FY12 are available on a citywide basis.
However, the City typically targets activities to specific neighborhoods with concentrations of low‐
and moderate‐income households or to programs that benefit specific populations such as senior
citizens, disabled persons and minorities. The maps located in the appendices indicate that the areas
with the highest concentration of Hispanic, Black and Native American races are located within one
of Salem’s low‐ and moderate‐income areas, the Point Neighborhood, as well as depict areas with
concentrations of low‐ and moderate‐ income households and of Salem’s Urban Renewal Area.
According to the 2000 Census, areas of low to moderate income concentration are the Point
Neighborhood, the neighborhoods along Boston Street, the area bordered by Jackson and Wilson
Streets and Jefferson and Highland Avenues, South Salem between Lafayette and Canal Streets, the
neighborhood south and east of Broad and Summer Streets to Washington and Canal Streets, the
neighborhood bordered by Winter, Bridge, Arbella and Briggs and the portion of Essex Street in
Salem Neck. 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 regulation, the City can undertake specific activities, such as street,
sidewalk and playground improvements in the low‐ and moderate‐income neighborhoods or the
Urban Renewal Districts (Heritage Plaza East and West), with the exception of handicap access
improvements which the City can undertake anywhere. However, recognizing that needs are not
solely located in distressed neighborhoods, the City offers programs that may be accessed by people
living outside these areas. For example, the Housing Rehabilitation Loan Program, First‐Time
Homebuyer Downpayment Assistance Loan 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.
III.B. 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.
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City of Salem FY 2012 Action Plan
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.
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.
III.C. 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.
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City of Salem FY 2012 Action Plan
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 programs. 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
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.
III.D. Consolidated Plan Development Process
In 2009, the City of Salem hired a consultant, Community Opportunities Group, Inc., to complete the
Five Year Consolidated Plan (covering Fiscal Years 2011‐2015). In doing so, the consultant completed
an extensive consultation process with local agencies, department heads, neighborhood groups, and
key stakeholders. Daytime focus group sessions and interviews, as well as evening neighborhood
meetings were held to encourage participation. In addition, the city held a public hearing at the start
of the planning process and a second public hearing during the 30 day public comment period
following release of the draft plan. Summaries of each meeting are provided in the Appendix of the
Consolidated Plan, along with copies of written public comment.
III.E. Citizen Participation – FY12 Action Plan
The public participation component for the FY12 Action Plan began with a public hearing held on
Thursday, January 20, 2011 at 6 p.m. The hearing was sponsored by the DPCD and citizens were
invited to testify regarding priorities for housing, economic development and other community
development programs. The Draft Action Plan was made available and a thirty day comment period
commenced on March 24, 2011 with a second public hearing held on March 31. 2011. An Overview of
Citizen Participation is located in the Appendix and includes minutes of the public meetings.
III.F. Affirmatively Furthering Fair Housing
The North Shore HOME Consortium’s Analysis of Impediments to Fair Housing Choice (AI) was
completed in January, 2008 by Western Economic Services, LLC, and is included by reference. 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
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City of Salem FY 2012 Action Plan
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.
At HUD’s request, the City of Salem carefully reviewed the AI again in September, 2010. 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. In general, the City
determined that the AI was thoroughly researched and inclusive of Salem’s fair housing concerns. In
addition to the City’s review, the Affordable Housing Trust Board reviewed the draft AI and
submitted comments to the consortium. The NS HOME Consortium’s AI comprehensively addresses
the known impediments to fair housing in the consortium area, including the city of Salem.
While there are differences between the consortium communities, the AI points out these differences
and highlights issues of concerns to the cities, including Salem. The AI established findings and
recommendations on a consortium‐wide basis, but 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 AI identifies the following impediments to fair housing choice in the NS HOME Consortium
communities. While the consultant identified impediments for the consortium as a whole, City staff
with their intimate knowledge and experience of the city’s dynamics and neighborhoods, and
through information gathered for the city’s FY2005 and FY2011 Five Year Consolidated Plans,
determined that the following selected impediments, excerpted from the AI, were relevant to Salem:
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City of Salem FY 2012 Action Plan
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 from City of Salem: 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.
There were no new impediments identified during the public participation process in the
development of the FY12 Action Plan.
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
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City of Salem FY 2012 Action Plan
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
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. In FY09, staff presented
at four workshops and in FY10, staff presented at one workshop. (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‐
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City of Salem FY 2012 Action Plan
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 fair
housing laws. Most recently, Community Teamwork has conducted trainings in February, May
and September 2009, and in June 2010. Additional trainings are scheduled for FY11. (These
efforts work to address impediments 1, 2 and 4.)
As HUD noted, the Fair Federal Housing Act does not cover persons of low‐income as a protected
class. The City of Salem acknowledges that affirmatively furthering fair housing is not limited to
addressing issues of income and housing affordability. As detailed above, the City’s actions to
affirmatively further fair housing are not limited to promoting affordable housing.
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. City staff are
regularly informed about fair housing‐related issues and concerns through their interactions with the
public and local organizations. The City has used the Consortium’s AI and its own experience to
inform its approach to affirmatively furthering fair housing. Salem will continue to work with the
Consortium to identify and address fair housing issues and impediments both for the city and the
region.
Furthermore, the City of Salem has 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. However, 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.
We have reviewed the possible impediments listed in the Concern above and have provided our
perspective on them as follows:
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.
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
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City of Salem FY 2012 Action Plan
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.
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.
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, and
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 a need to examine whether
accessible alternatives are sufficiently available to meet demand.
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 addition, service providers receiving
CDBG funds must translate 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.
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.
III.G. Monitoring
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, which is located in Five Year Consolidated Plan).
Affordable housing and economic development projects undertaken with CDBG or HOME funds are
monitored annually for compliance with affordability requirements, job creation, and/or other
programmatic requirements. All First‐Time Homebuyer Downpayment Assistance Loan Program
properties and Housing Rehabilitation Loan Program properties receive on‐site inspections.
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City of Salem FY 2012 Action Plan
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.
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.
Payments to agencies are made on a reimbursement basis to ensure compliance with expenditure
requirements. 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.
III.H. Long Term Compliance and Performance Measurements
Salem has implemented a performance measurement system for 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.
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. A quarterly report is provided to the City’s Finance Department on new
loans issued, loan state and loan discharges. The Housing Coordinator follows the Loan Management
Policy for review of existing loans and process to address delinquent, default or uncollectable loans.
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
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City of Salem FY 2012 Action Plan
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.
III.I. Lead-based Paint Hazards
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, 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.
III.J. 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, affordable housing and social services.
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City of Salem FY 2012 Action Plan
III‐11
III.J-1. Education
The Salem School Department has been participating in a voluntary desegregation program since
1987 in an effort to give residents more choices about the school system they want their children to
attend. The City has used state funding to renovate and improve its educational facilities and provide
school‐age children with an environment conducive to learning. MCAS results from 2009 show 68
percent of 10th grade students are advanced or proficient in English and 61 percent are proficient in
Mathematics. The district has shown steady improvement in MCAS scores since 2005.11
Many of Salem’s schools focus on particular subjects. The school choice program is ideal for
educating children with specific skills that will enable them to obtain employment when they
graduate. For example, the Saltonstall School is a magnet school that focuses on science and
technology. It is equipped with 140 computers for its 400‐plus students. Like many of Salem’s
schools, the Saltonstall School provides transitional bilingual classes, which integrate English and
Spanish speaking students within the classroom. This approach helps Spanish speaking students to
become proficient in English. Encouraging youths to attend service‐oriented schools will provide the
future workforce with the skills necessary to find employment and reduce poverty. In addition, the
Horace Mann Laboratory School focuses not only on academics but also attempts to teach students
important social skills that will help them communicate in the working world. The school also
encourages community service by offering programs to its students within nursing homes and
helping needy families. Activities such as these help students at an early age see the importance of
working and encourage them to obtain jobs after they finish their education.
Salem’s Parent’s Information Center provides parents with information to help make educational
decisions for their children. It provides interpretation and written translation services, resources for
school information, and adult education programs. The center also provides school placement
services. The Information Center coordinates the City’s school choice program designed to improve
racial balance within the school systems. The City of Salem’s Title 1 Program provides programs such
as Computers for Beginners for parents of school‐age children. This type of program is designed to
help low‐income families who may not otherwise have access to computer training. The City’s
attention to its public schools is part of a larger strategy to help children succeed academically and in
the work place. An adequate school system is crucial to reducing poverty in future generations. The
Salem Public Schools support bilingual classroom settings and technology‐based training that will
enable those with lower incomes to improve their job opportunities.
In addition, there is a Head Start Program operating at the Carlton School on Skerry Street.
III.J-2. Job Training and Employment Resources
The North Shore Career Center helps potential employees to improve their skills and meet the needs
of the job market. The Career Center receives funding from federal, state and local resources to
provide free job placement, job training and job readiness. With the continued support of the City of
Salem, the Career Center continues to help economically disadvantaged populations receive specific
skills to obtain better paying jobs.
11 Commonwealth of Massachusetts, Department of Education, MCAS Test results for 10th grade students,
www.mass.gov/doe.
City of Salem FY 2012 Action Plan
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Salem is home to Training Resources of America (TRA) ‐ formerly Mass. Job Training, Inc. ‐ a private
non‐profit organization funded by various state and federal agencies. TRA offers programs such as
basic adult education, GED preparation and ESL classes. TRA also has programs to help young
parents receive an education that they might otherwise not be able to receive because they are
disadvantaged. The program offers a basic education and pre‐vocational skills training to help adults
obtain better employment and reduce dependence on public assistance. Job training and ESL classes
help to strengthen and diversify the City’s labor force by providing opportunities for lower‐income
people to advance in employment.
The City of Salem is the lead community for the North Shore Workforce Investment Board (WIB),
representing 19 surrounding communities. The DPCD has a seat on the Board and represents the
economic development sector on the North Shore. The WIB directs federal, state and local
employment and training funds so that job seekers can find training and employment, and businesses
can find employees that are skilled and ready to work. Through partnerships with schools, colleges,
training providers, public organizations and businesses, the WIB builds and supports a workforce
development system that serves all members of the North Shore community at any point where
work‐related services are needed.12 The WIB assists over 14,000 employers, schools and agencies,
adults, and youths each year with job screening services, labor needs programs, job training, career
training and other services. The WIB is also responsible for administering the F1rstJobs Summer
Employment initiative for North Shore Teens. F1rstJobs places North Shore youths in jobs that will
provide them with important job training and skills that will be useful in the future when applying
for employment. Other programs include Training for Employed Workers, Training for Displaced
Workers, School to Career, Welfare to Work and Workforce Investment Act.
Through its CDBG funds, the City of Salem supports a variety of job training and employment
assistance programs, such as the Wellspring House MediClerk Program, V.O.C.E.S. ESL and GED
preparation programs, Morgan Memorial’s Career Planning Program for high school students with
disabilities, NSCAP’s Salem Cyberspace Program and self‐sufficiency programs run by the Family
Self‐Sufficiency Center.
III.J-3. Affordable Housing
Through cooperative efforts with state, federal and local organizations, the City has taken a
comprehensive approach to preventing poverty. Providing adequate, affordable housing for Salem’s
low‐ and moderate‐income residents is critical to the success of any anti‐poverty strategy. High
housing costs and low‐wage jobs continue to hinder the efforts of some to climb out of poverty. City
agencies such as the Salem Housing Authority and the DPCD are committed to providing safe,
secure, suitable, and appropriate affordable housing opportunities to very‐low, and low‐ and
moderate‐income family, elderly, and disabled households. In addition, many housing providers and
social service agencies work together to combat poverty in Salem. The City’s established partnerships
with agencies such as the NSCAP, the North Shore HOME Consortium and the North Shore
Community Development Coalition increase its success at bringing services to lower‐income
residents and encouraging them to participate in revitalizing their community.
12 North Shore Workforce Investment Board, “Mission Statement,” <http://www.northshorewib.com/>.
City of Salem FY 2012 Action Plan
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The North Shore HOME Consortium’s goal is to expand the regional supply of affordable housing
through the acquisition, rehabilitation, and new construction of rental units, homeownership
assistance and housing rehabilitation, and housing options for special needs populations and the
homeless. The DPCD is one of thirty member communities receiving a formula allocation of HOME
funds. Salem is committed to distributing its HOME funds to programs that provide assistance to
those in need of affordable housing. Some examples of HOME assistance in Salem include funds for
Lifebridge, the City’s own Housing Rehabilitation Loan Program, the North Shore Community
Development Coalition (a CHDO) and rental down payment assistance programs provided by
NSCAP, Catholic Charities, Salvation Army and HAWC. In addition to funds allocated to individual
communities, the Consortium financially supports activities that contribute to affordable housing in
the region.
Salem provides significant funds to community housing development organizations (CHDOs),
specifically Salem Harbor CDC and NSCAP. CHDOs are focused on changing the social and
environmental factors that foster poverty and in motivating low‐income residents to take control of
their future and the future of their neighborhoods. Salem Harbor CDC works to increase the supply
of affordable housing through acquisition and rehabilitation projects. The CDC works closely with
public and private agencies to improve the quality of life for Salem’s low‐ and moderate‐income
residents.
NSCAP is an anti‐poverty agency providing services to Salem, Peabody, Beverly and Danvers. The
goal of NSCAP is to help low‐income people empower themselves as they move toward self‐
sufficiency, and to motivate the larger community to be more responsive to the needs of low‐income
people. This agency provides an array of services, such as assistance with home heating bills, ESOL
and citizenship classes, home care for senior citizens, weatherization, a housing assistance program,
and a transition to work program with job training, financial management services, scattered sites
shelter, and job‐readiness workshops, as well as immigration, housing and welfare advocacy. These
programs are designed to help the poor become self‐reliant and less dependent on public assistance.
III.J-4. Social Services
According to ACS 2006‐2008 Three‐Year Estimates, 1,224 female single parents have dependent
children under 18.13 The challenges facing this population are inadequate, affordable childcare
choices, a lack of jobs that provide “mother’s hours” and insufficient transportation opportunities.
The Massachusetts Office of Child Care Services, Region 3 office, is located in Salem. It provides
childcare referrals and financial assistance. The agency provides a way for lower‐income families to
obtain adequate daycare so they can obtain employment and improve their quality of life.
Through CDBG, the City of Salem funds approximately 30 non‐profit social service programs
annually. Through an annual competitive funding round, Salem financially supports programs that
provide services to help families meet the costs of living, promote family self‐sufficiency, serve
special populations and/or provide crisis intervention assistance, in essence, programs that work to
break the cycle of poverty. Along with the many programs that help directly with housing and
13 ACS 2006‐2008 Three‐Year Estimates, “S1101: Households and Families,” American Fact Finder,
http://factfinder.census.gov.
City of Salem FY 2012 Action Plan
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household expenses (see Housing Section), CDBG funds support several programs which indirectly
assist with housing in many ways such as increased pay (i.e. job training, ESL programs) and
decreased monthly expenditures (i.e. child care, food programs, prescription assistance) so
households can better afford rent or mortgages. A list of the social service programs submitted for
FY12 CDBG funds is located in Section II.D. There are also many non‐CDBG funded programs
available to Salem residents to help households overcome various obstacles to self‐sufficiency.
Salem H.O.P.E. is a networking group of social service agencies that meet at rotating public service
agency locations. Open to all social service agency representatives serving Salem residents, it is a
forum to work toward filling gaps in services and avoiding duplication of efforts. DPCD staff
coordinates the quarterly meetings and distributes the Salem H.O.P.E. digital newsletter quarterly.
IV. APPENDIX
Appendix A: Application: Standard Form 424 & Certifications
Appendix B: Overview of Citizens Participation
Appendix C: Maps
Appendix D: Salem CPMP Needs Tables
Appendix E: North Shore HOME Consortium CPMP Needs Tables
IV.A. Application: Standard Form 424 & Certifications
These are not included in the digital version, but are included in the hard copy.
IV.B. Overview of Citizens Participation
IV.B-1.1. Request for Public Services Funding Proposals
In January, 2011, the City of Salem published a legal ad in the Salem Evening News requesting
proposals for public services, housing and economic development funding. The City mailed
Requests for Proposals to all agencies that received or requested funding during the previous year.
Proposals were received on February 2, 2011. A list of agencies submitting proposals is included in
the FY12 Action Plan.
IV.B-1.2. Initial Public Hearing
On January 6, 2011, the City published an English/Spanish legal ad in the Salem Evening News and
an English/Spanish notice was posted at City Hall & City Hall Annex. Notices were provided to the
Salem Public Library, Salem Council on Aging and the Salem Housing Authority for posting. An
English/Spanish Community Bulletin Board request was posted with Salem Access Television.
Notices and a cover letter were provided to all City Councillors. A press release was sent to the
Salem Evening News and the Salem Gazette. The public hearing notice was also posted to the City’s
website and was mailed to various social service agencies and neighborhood associations, as well as
the Citizens Advisory Committee members.
The public hearing was held on January 20, 2011. A public participation guidebook was provided to
all attendees. A Spanish translator was present. Minutes of the meeting are included herein.
In addition, one letter from a Salem resident was received and the comments were considered during
the development of the plan. The writer summarized his comments during the January 20, 2011
meeting.
IV.B-2. Availability of the Draft Plans and Request for Public Comment
IV.B-2.1. Availability, Advertisement, Public Hearing & City Council
The City publicized the availability of the draft plan, the date/time of the public hearing and the
public comment period in several ways in order to obtain broad public comment. Information
regarding plan availability and the upcoming comment period and public hearing was provided to
those attending the Salem H.O.P.E. meeting of March 10, 2011. An English/Spanish Community
Bulletin Board request was provided to Salem Access Television. An English/Spanish legal ad was
published in the Salem News on March 17, 2011 indicating the availability of plans and providing
notice of the 30 day comment period & scheduled public hearing. English/Spanish notices were
posted at City Hall and City Hall Annex and on www.salem.com. Notices were provided to the
Salem Public Library, Salem Council on Aging and the Salem Housing Authority, and were mailed to
several social service agencies, neighborhood associations and Citizens Advisory Committee
members. The notices were also emailed to the Salem H.O.P.E. distribution list. A press release was
sent to the Salem News and the Salem Gazette.
Copies of the plans were provided to the Salem Housing Authority and Salem Public Library for
public viewing and copies were available at the Department of Planning & Community
Development. Copies of the plan were provided to the members of the Citizens Advisory Committee.
The plan was made available for download on www.salem.com.
The public comment period commenced on March 24, 2011 and ended on April 22, 2011. A public
hearing was held on March 31, 2011 at City Hall Annex. Copies of the Draft Plan were provided to
all attendees. A Spanish translator was present. Minutes of the meeting are included herein.
Copies of the Draft Plan were provided to the Salem City Council. The DPCD Director and the
Assistant Community Development Director met with the City Council Subcommittee on
Administration and Finance on April 28, 2011. The City Council approved the submission of the
Application for Federal Assistance at its April 28, 2011 meeting.
IV.B-3. Citizens Advisory Committee
The Citizens Advisory Committee (CAC) is a group of individuals appointed by the Mayor. The
CAC usually includes one or more of the following: representative(s) from low/mod neighborhoods,
a representative of a non‐profit agency, disabled person, elderly person, minority person,
representative of a Salem business, person on public assistance, and/or public employee (i.e. police
officer, teacher) and/or other interested Salem residents. The group reviews funding requests
received by nonprofit social services agencies and makes funding recommendations. The CAC is
also invited to review and comment on the draft Consolidated and Action Plans and to attend both of
the yearly public meetings. Current appointed members include minority residents, a person with
disabilities, senior citizens, a public housing resident, a police officer, a representative from a non‐
profit agency and representatives from various neighborhoods, including the Point Neighborhood
and the Boston Street Neighborhood.
IV.B-4. January 20, 2011 Public Hearing (6 attendees, 5 city staff)
The City of Salem held a public hearing regarding the development of the FY12 Action Plan for
Community and Economic Development for the period of July 1, 2011 to June 30, 2012. The public
hearing was held in the third floor conference room at the City Hall Annex, 120 Washington Street,
on Thursday, January 20, 2011 at 6:00pm. Present representing the City of Salem were Lynn Duncan,
Director of Planning & Community Development(DPCD), Jane Guy, Assistant Community
Development Director, Frank Taormina, Staff Planner, Jennifer Kolodziej, Housing Coordinator and
Naomi Francisco, Housing Assistant, who was available to provide Spanish translation. Public
Participation Guidebooks were available to all attendees in the audience.
Ms. Duncan welcomed those in attendance and introduced the members of the DPCD who were
present. She stated that she was here to listen to the comments and answer questions.
Ms. Guy stated that the purpose of this hearing is to get comments on what attendees feel Salem’s
housing, community and economic development needs are. She stated that every year the City
prepares and Action Plan to determine how we are going to spend the funding we received from the
federal government. She stated that we receive CDBG and HOME funds. She noted that the City is
required to do a 5‐year Consolidated Plan every five years, which was completed last year through
an extensive process. Every year in between we are required to do an Action Plan and we kick off the
process by having this meeting to get public comment. Then we will put together a draft plan and
have another public meeting along with a public comment period. The Action Plan outlines the
needs, how we are going to meet those needs and what programs we are going to have to meet our
goals. She noted that it is based on the 5 Year Consolidated Plan priorities, but added that there may
be new needs that have come up since last year. She stated that HUD has not provided communities
with the FY12 CDBG allocation amounts, so for now we are estimating level funding, which would
be $1,245,477 for CDBG and $208,768 for HOME. To utilize CDBG or HOME funds activities must be
considered eligible by HUD definitions and must primarily assist very low, low or moderate income
households or neighborhoods (as shown in the highlighted area on map), create jobs or improve the
urban renewal area (downtown area indicated on the map). She stated that the low/mod
neighborhoods are determined by the U.S. Census and that once the 2010 census figures are released,
we will probably have a new map. She noted that examples of programs the city has funded range
from housing programs, commercial loans, handicap access improvements, improvements to parks
and fire stations, tree planting, sidewalks, curbcuts, and street paving. We give funds to social
services for programs that prevent eviction, food pantries, prescription programs, youth activities,
senior transportation, child care, neighborhood police bike patrols and job training. Ms. Guy stated
that activities undertaken can be projects or programs that are managed directly by the City of Salem
or they can be projects or programs managed by other organizations.
Ms. Guy opened up the meeting for questions or comments.
Mary Margaret Moore, from the Independent Living Center, talked about the increasing population
of aging baby boomers who can no longer stay in their homes and think that living in a nursing home
is their only option and don’t know about home modifications and other supports to stay in the
community. Ms. Moore further expressed the need to do more targeting of the home modification
resources to some of the social service agencies so there is more education about access to programs
for people to stay and live independently. Ms. Moore introduced Jean Rockett, a new member of her
staff who mentioned is the contact person for the Options Program. This program educates seniors
statewide about the resources within their communities.
Jane Guy stated that during the Consolidated Planning process, the city held a focus group at the
Senior Center in order to try to reach out to the seniors for the City’s Housing Rehabilitation Loan
Program.
Ms. Rockett stated that the greatest population that they have difficulty finding housing for are those
from 30 through 50, who have had strokes or other difficulties, and are living in nursing homes. Ms.
Rockett stated that there’s much more support for those individuals in their 60’s because they can
reach out to the Housing Authorities and be provided with congregate and supportive housing.
However, there are a lot of individuals under 60 living longer in nursing homes because they cannot
find adequate housing. Ms. Rockett mentioned that there are those with mental health issues being
released from mental health facilities/crisis units into shelters who then become homeless because
they cannot live in the shelters due to the mental illness. She suggested that the Housing Authority
change its criteria so that more individuals can get into housing.
Ms. Moore suggested that when developing housing with HOME funds that there be a priority status
for housing for adults with significant disabilities so that there is an alternative to nursing home
living. She stated that adults with disabilities need priority access to housing to help keep people
from going into institutions.
Ellen Galligan, Catholic Charities, stated that persons with mental disabilities would also need the
services to go along with the housing.
Jeff Cox of the Greater Endicott Street Neighborhood Association stated that his neighborhood is in
Ward 3 and that 100 percent of the neighborhood is located within the low/moderate income area on
the map. He submitted a letter and addressed some of the points in the letter. Mr. Cox stated that
affordable housing is critical and the city should continue to advocate for it. He stated that one of his
concerns is landlords that are slumlords and charge significant rent while the tenants’ quality of life is
somewhat above squalor. He stated that there are many of these in his neighborhood. He stated that
the landlords don’t live in the neighborhoods, but live out of town. They take the rental income and
never put any money back. He stated that he felt there are regions of blight in the city because of
absentee landlords. Mr. Cox stated that traffic concerns remain the number one priority in his
neighborhood. He stated that Endicott Street is a speedway and requested that resources be used to
install permanent speed indicators. Mr. Cox felt that the traffic flow on the street is heavier than what
it was designed for. He also asked the city to conduct a comprehensive traffic pattern study within
his neighborhood. He added that he is aware that the police department had previously conducted
an informal study. Mr. Cox stated that he believed a traffic study was recently done for Mason Street.
Ms. Duncan stated that traffic studies often get done as part of a development review process and
that the one on Mason Street was done as part of the redevelopment of the Salem Suede property.
Ms. Duncan asked the result of the Salem Police Department informal study.
Mr. Cox replied that they said the report found there were no speed problems. He stated that a more
comprehensive, profession examination is needed, not just for Endicott Street, but for all the streets in
the neighborhood. He stated that they are very concerned about the Lifebridge area and with more
and more people there, there is more foot traffic and they are concerned that someone will get hit. He
stated that a comprehensive traffic pattern study would meet the quality of life needs for the
neighborhood and potentially save a life.
Mr. Cox introduced Marybeth from the Salem Community Art Center, and stated that a group of
people in the neighborhood are in the process of raising funds to purchase or lease part of the St.
Mary’s Church to create an indigenous art center. He stated that it will preserve an historic building
in the neighborhood, while allowing people to have self expression. He stated that he has grown
concerned with the excitement of the Old Town Hall development, and that it will push out local,
indigenous art festivals and art shows, because the demands of the Cry Innocent play and the
permanent Salem museum will take away a much needed affordable performance space that
currently exists. Mr. Cox stated that St. Mary’s Church is a prime development place and he believes
that the majority of the board members live in the low‐income neighborhood. He stated it is people
living in the low‐income neighborhood, who would be creating an opportunity for self expression.
The art center would add a non‐profit opportunity to improve the neighborhood and the city.
Mr. Cox stated that the Lifebridge campus has talked about expanding, that he is not necessary
against it, but wants to make sure that any monies provided for the development process involves a
full buy‐in from the neighborhood. Mr. Cox wants the city to take into consideration conducting
traffic studies to determine how additional units would effect foot traffic, etc.
Mr. Cox stated that he has a personal issue with the double utility poles throughout the city, and
which plague low‐income neighborhoods. He stated that they impact property values and quality of
life.
Mr. Cox commended the city for its recycling efforts and suggests the city install a solar trash
compactor at the High Street playground.
Mr. Cox thanked the city for paving streets in and around his neighborhood recently. Mr. Cox stated
that sidewalk repairs are equally as important, and recommends that the city have a measureable
goal in which low income neighborhoods can get their streets paved and sidewalks repaired,
particularly in his neighborhood, which has a high density of individuals on foot. He stated they
were also concerned about curb cuts for people with various disabilities. He encouraged funding for
that.
Mary Margaret Moore asked if St. Mary’s Church was a historical building.
Mr. Cox replied in the affirmative.
Ms. Moore asked if the art center would be renovated to be fully accessible.
Marybeth Bainbridge stated that they would want to make it accessible, and that currently the
accessibility is not ideal.
Ms. Moore offered that her agency will review their plans for free.
Teasie Riley Goggin commented regarding the city’s proposed utilization of the 108 loan to be repaid
out of the CDBG funding. She felt that the funds should remain with the needs of different agencies
and projects that we already have in place or are proposed out of necessity. She stated that she
believed a senior center should not be top priority right now during the current economic, stressful
times. Ms. Goggin stated that putting food in people’s mouths, shelter and health care are more
important. She stated that she felt if a senior center is needed, then it should be funded with capital
improvement funds.
Ellen Galligan from Catholic Charities stated that it is becoming more apparent that people who had
a decent income and were able to pay their rent didn’t have to ask for help before, but now they are
seeing an upsurge.
Ms. MacNeil stated that the number of people seeking fuel assistance has also increased.
Mr. Cox asked what programs the city is looking to fund.
Ms. Duncan noted that the City uses CDBG funds to assist social service agencies and that we do so
to the maximum 15% cap annually. She stated that there are ongoing housing rehabilitation
programs for homeowners and landlords, as well as providing first time homebuyer downpayment
assistance and economic development loans to small businesses that are creating jobs. There is also a
program for storefront improvements in the downtown. These are the programs that CDBG funds
each year. The city works with the Department of Public Services to do sidewalk and road
improvements, as well as tree planting in eligible neighborhoods. Ms. Duncan stated that there are
also more specific projects, such as the High Street Playground, the Salem Harbor Walk, the Peabody
Street Park and the City Hall Elevator which have been assisted with CDBG funds. The city is
currently working on a traffic signalization and streetscape improvement project on Lafayette Street
and the signalization project at Derby and Congress. She stated that there is an intent to use our loan
capacity to purchase a condominium senior center at the corner of Boston and Bridge, but it is
unlikely that proposed loan payments will be in this proposed FY12 Action Plan. She stated that the
city also typically identifies playground improvements.
Ms. Goggin stated that she thought it came out at a meeting for the St. Joseph’s project that Salem
does not have enough one room housing.
Ms. Galligan stated that comparatively, Salem has a large number of them, but the need is huge.
Ms. Moore was in agreement. She stated that the Independent Living Center offers a Housing Rights
workshop every year, which is posted on their website. They also have a workshop on how to find
affordable, available, accessible housing in Salem every year.
Mr. Cox stated that the City of Salem seems to have a very open process to talk about community
development and in a lot of other communities, he would not know where to start. He stated that
Salem does more than just a notice on some back bulletin board at city hall and he thinks it is very
helpful. He stated he appreciated the new email system that publicizes these meetings and makes
them more accessible. He stated he was delighted with the streets being paved this year and the
High Street Playground improvements, including the security camera. He stated that the trash cans
at High Street playground are always full because a lot of neighborhood organizations and schools
use it.
Ms. Guy stated that if we had more money, we could do more things. We have to take what we have
and prioritize and that is what this process is.
Ms. Duncan thanked the crowd and stated this was the reason for such meetings, to enable the
community to come together, voice their opinions and express community needs.
Mr. Cox stated that he felt that the Point Neighborhood area needs to be re‐imagined. He stated that
there is some discouragement by the real estate community to live in that neighborhood. He
suggested a public relations campaign. He noted it is right on the water and near the downtown, yet
has a negative image. He felt there should be an appropriate publicity campaign to really talk about
how wonderful the neighborhood is and its vitality. He stated that it has a playground and yacht
club.
Ms. Duncan stated the city worked with an organization called Walk Boston who joined a local
historian to create a Walk Salem Map; this organization focused on the Point Neighborhood because
it was built after the 1914 fire. Ms. Duncan stated the neighborhood is very consistent architecturally
and the goal was to connect this neighborhood with other parts of the city.
Ms. Galligan stated that the North Shore Community Development Coalition (NSCDC) takes an
active role in that neighborhood and that Lucy Corchado has been a significant advocate. She stated
that hopefully the CDC is back on track now.
Ms. Guy added that the neighborhood also lost Neighbor To Neighbor.
Ms. MacNeil stated that the CDC just hired an outreach coordinator.
Ms. Duncan stated that redevelopment of the St. Joseph’s site did get approved by the Planning
Board. She stated that it is a large vacant site that could become a wonderful benefit to the
neighborhood. She stated that originally it was proposed as a combination of market and rental
condominiums, but when the condo market died, it had to reinvent itself. The developer is currently
seeking state funding assistance for a new building with affordable rentals. The objective is to do
some market rate units in the future, perhaps in the rectory and/or school building. She stated that
in concert with the Lafayette Street traffic improvements, it could be a catalytic development for the
neighborhood.
Ms. Goggin asked Ms. Kolodziej the foreclosure status in Salem. Ms. Kolodziej stated the city has
approximately fifty foreclosures that are currently banked owned and have not been sold. She
estimated that one or two are from 2007, one from 2008 and the remainder, approximately 33, are
from 2010.
Ms. Duncan asked what Ms. Kolodziej saw in terms of trends.
Ms. Kolodziej responded that a lot of properties seem to be going to one bank and that they seem to
be selling quickly. The number of banks that own properties in Salem seems to be less. She stated
that the number of foreclosures seems to be about the same, not increasing at this time
Ms. Duncan stated that the city, through Ms. Kolodziej, has been tracking foreclosures, trying to
provide resources and meeting with people to try to make connections. We have resources up on the
website.
Mr. Cox stated that the real estate community needs re‐education. We need ways in which every
people are encouraged to live in all neighborhoods. We need to have conversations with the real
estate community that predominantly sells in this area. They are very quietly driving expectations of
what these neighborhoods are by how they are talked about.
Ms. MacNeil stated that they wanted to tie together youth, the CDC and the Point Neighborhood and
she hopes the city will continue to fund Salem Cyberspace as a good, safe place for kids to go and the
other neighborhood programs.
Mr. Cox stated that more summer and after school programs are needed for youth and are an
absolute priority. He agreed that the Cyberspace program is a phenomenal program.
Ms. Guy stated that the City supports several programs and that she has a list for anyone interested.
Ms. Duncan stated that it was great to hear support outside of the provider network.
Ms. Guy stated that the next step in the Action Plan process is to consider what has been talked about
and to prioritize the wish list because there are always more requests than there are funds. The city
will look at what needs we can address this year or possibly next year. The goal is to have the draft
plan ready for March 24th to start the comment period and have another public hearing on March 31st.
Ms. Duncan thanked everyone for attending and providing their comments.
IV.B-5. March 31, 2011 Public Hearing (6 attendees, 4 city staff)
The City of Salem held a public hearing regarding the Draft FY12 Action Plan for Community and
Economic Development for the period of July 1, 2011 to June 30, 2012. The public hearing was held in
the third floor conference room at the City Hall Annex, 120 Washington Street, on Thursday, March
31, 2011 at 6:00pm. Present representing the City of Salem were Jane Guy, Assistant Community
Development Director, Tom Daniel, Economic Development Manager, Jennifer Kolodziej, Housing
Coordinator and Naomi Francisco, Housing Assistant, who was available to provide Spanish
translation. Copies of the Draft FY12 Action Plan were available to all attendees in the audience.
Ms. Guy welcomed those in attendance and introduced the members of the DPCD who were present.
She stated that the City has released the Draft Action Plan and that the meeting is being held to
answer questions and receive public comments. The process began in January with an initial public
hearing. Following that, the plan was developed. Every five years, the City completes a 5‐year
Consolidated Plan based on needs, which follows an extensive process of public hearings and
stakeholder interviews. In between each five year plan, a one‐year Action Plan is developed which
outlines how we are going to address the needs and goals from the five year plan. Each year, we
include activities that work toward addressing those needs and goals. We begin with a public
hearing each year to see if there are any new needs and priorities. The plan covers the period of July
1, 2011 through June 20, 2012. She stated that this year the federal government has not yet
established the budget for CDBG and that HUD has recommended that we use 2008 numbers, which
is a 10% cut. We are basing our projects on a 10% cut, but at this time we do not know precisely how
much we will receive in our formula funding. She added that U.S. Census housing populations
numbers were recently released but that we have not gotten census income information as yet. We
do not know how the low to moderate income area map will change in the future. To utilize CDBG
and HOME funds, we must follow specific HUD rules. For example, an eligible project would be
replacing sidewalks, putting in a curbcut or repaving a street. An ineligible project would be to fill a
pothole. We can put in a new bench, but we cannot repair a bench. At least 70% of the funds must
serve low to moderate income persons. We can do that be performing projects in low to moderate
income neighborhoods as shown on the map, or by income qualifying individual households
throughout the city for programs such as the Housing Rehabilitation Loan Program. We can also
provide economic development assistance, where the business would need to qualify by being a
micro‐enterprise business or by creating or retaining jobs for low to moderate. We can also do
projects in the Urban Renewal Area (the downtown), but that is limited to the amount of money we
can spend each year. She stated that for this year, we have kept to the core programs such as the
Business Loan Program, the Main Streets Program, the First Time Homebuyer Loan Program, the
Housing Rehabilitation Loan Program, Rental Downpayment Assistance and grant funding for social
service agencies, such as programs to prevent eviction, food pantries, prescriptions, youth activities,
senior transportation, child care, Point Neighborhood bike patrols and job training, along with the
Neighborhood Infrastructure improvements such as tree planting, street resurfacing and park
improvements. Activities can be things that the City undertakes or those that we contract with other
agencies to undertake. She stated that we are currently in the comment period phase which will end
on April 22nd. Comment can be provided at this public meeting or in writing by April 22nd.
Teasie Riley Goggin stated that she did not feel CDBG funds should be spent on a Senior Center as a
loan. She stated that the Senior Center should be funded as a capital improvement project with city
funds. She commented that with the recent devastating fire on Washington Square, she became more
aware that the city does not have enough available one room housing. She noted some people frown
on rooming housings, but at times like that, it comes in very handy and is very necessary.
Jane Guy responded that the city did not receive any developer requests for one‐room housing for the
current action plan and that funding was not put in for senior center payments in this year’s plan.
She stated that she was not saying that the City won’t enter into a Section 108 loan, but noted that it is
not budgeted in the FY12 plan.
Jeff Cox, co‐chair of the Greater Endicott Street Association stated that his neighborhood, Ward
Three, is 100 percent in the low to moderate income area. He stated that he received an email from
Ms. Guy on March 24th, which stated that a Big Belly solar trash collector will be placed at the High
Street Playground and thanked the city for that. Mr. Cox expressed his concerns about a number of
sidewalks and streets in his neighborhood. He stated that there is standing water on some of the
streets. They have high pedestrian use due to the high density and they are concerned about the
sidewalks being in bad shape. Mr. Cox stated that he did not see anything funded in the plan for a
traffic study in his neighborhood. He stated the people in the neighborhood are concerned about
speeding in the high density neighborhood. He noted that the city put up a speed indicators and that
the neighborhood appreciated that but felt that having the indicator affected the speed traffic and
they felt a professional street survey like was done on Mason Street. He felt a speed indicator would
go a long way, but felt with Lifebridge building additional units, it will increase the density in the
neighborhood. He stated that Margin Street is very dangerous. They project there will be additional
traffic in the neighborhood because people will try not to park in Riley Plaza due to the city’s parking
proposal. They feel a professional traffic study would greatly improve the quality of life in the
neighborhood. He stated that he has seen cars as fast as 45 to 50 miles per hour, particularly at lower
Endicott Street near the Christopher Columbus Club. He encouraged a professional traffic study and
traffic calming measures.
Ms. Guy explained that with CDBG funds, the city is limited to certain percentages for certain types
of funding. She stated that for public service grants, we are limited to 15 percent of the current year’s
CDBG funding plus 15 percent of last years program income. She stated that for administration and
planning, there is a 20 percent cap on the city’s current year CDBG funding plus the current years’
program income. Therefore, there is a limited amount of funding that can be used for planning
studies each year. Ms. Guy explained that the city obtained a grant from the Massachusetts
Historical Commission for a project and the city is required to match the funding received. Therefore,
it will be the only study the city will be able to fund out of CDBG.
Mr. Cox inquired as what the Massachusetts Historical Commission grant will be used for .
Ms. Guy stated that it is for the Salem Common fence.
Mr. Cox stated that he felt Salem Common is a high income neighborhood. He stated that his is a low
income neighborhood and there is a lot of street traffic and kids playing out in the street all the time.
He stated that he uses the Salem Common and is excited about fixing the fence, but noted that he has
to advocate for his neighborhood. He stated that he hoped there were other city funds to use for the
fence and could use CDBG to support a traffic study for a neighborhood that is 100% in the low to
moderate income area. He stated that there are a lot of homeless people in the neighborhood and a
lot of mental health issues and there is plans to build a major building. Ms. Cox asked how the city
responds to the comments and suggestions received.
Ms. Guy stated that every comment is important and that they try to prioritize projects. She noted
that she still has comments for projects for prior years that they still try to address in projects. Ms.
Guy stated that for public safety projects, they talk to department heads to get their opinions on
projects. She noted that until they know how much funding the city will get, it is possible that they
may not be able to come up with matching funding for grants or even for staff. She stated that until
they receive word on the actual grant funding, she cannot finalize the plan to send into HUD. She
stated that the city received a Massachusetts Historical Commission Grant and the city has
committed to match approximately $7,500, which is not very much. She noted that it would not be
enough to fund a full traffic study and believed that the North River Corridor study was upwards of
$30,000.
Mr. Cox questioned where the funds for the North River Corridor traffic study came from.
Ms. Guy stated that she thought CDBG only funded part of it.
Ms. Goggin stated she believed that the North River Corridor traffic study was partly funded by the
development of the Stop & Shop Supermarket.
Ms. Guy stated that if the Lifebridge project proceeds and it goes through permitting, there may be
conditions put on it by the Planning Board, such as conducting a traffic study.
Mr. Cox mentioned that speed is one thing, but they are also concerned with whether the street
pattern is right. He stated that because of the coordination of Margin Street, people cut through
Endicott Street at high speed to get out of town. They question if the streets are appropriate, should
it be zoned different and should there be parking permits. He stated that it is great putting up a sign
indicator and would he would be extraordinarily happy to have that, but felt a comprehensive traffic
study is what is really needed.
Ms. Guy stated it is baby steps – the city got the playground done, some street paving and will install
the Big Belly.
Ms. Guy thanked the group and told them to feel free to send in written comments.
IV.C. Maps
The following maps are included in the hard copy of this report:
o Low to Moderate Income Areas with Urban Renewal (SRA) boundaries and Ward
boundaries. For a digital version of the map to go
http://salem.com/Pages/SalemMA_WebDocs/lma.pdf
o Areas of Racial & Ethnic Minority Concentration
o Persons in Poverty
IV.D. Salem CPMP Needs Tables
These tables are not included in the digital copy, but are included in the hard copy.
IV.E. North Shore Home Consortium CPMP Needs Tables
These tables are not included in the digital copy, but are included in the hard copy.