CDBG FY13 ACTION PLANCITY OF SALEM
ONE-YEAR ACTION PLAN
FISCAL YEAR 2013
MAY 10, 2012
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 2013 ....................................................................................................................I‐4
I.D. OBJECTIVES AND OUTCOMES ...............................................................................................................................I‐5
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‐8
II.A‐3. Barriers to Affordable Housing ..............................................................................................................II‐9
II.A‐4. Homelessness and Homelessness Prevention ......................................................................................II‐9
II.A‐5. Fiscal Year 2013 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 2013 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 2013 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 2013 Social Services Activities...........................................................................................II‐21
II.E. PLANNING & ADMINISTRATION.......................................................................................................II‐22
II.E‐1. Fiscal Year 2013 Planning & Administration Activities ....................................................................II‐22
II.F. FISCAL YEAR 2012 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 – FY13 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
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 2012‐2013 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 2013
(FY13).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, 2012 to June 30, 2013, which is referred to in this document as
Fiscal Year 2013 or FY13.
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 FY13 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 22, 2012 through April 20,
2012.
A public hearing regarding the Draft Action Plan was held on March 29, 2012 and included 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 included in the
Appendix.
Written comments received included one letter from the North Shore Community Development
Coalition with the following five points (Salem response in italics):
Both HOME & CDBG funds should be prioritized for CHDO‐certified organizations.
Through the development of the 5‐Year Consolidated Plan, priority needs and related objectives and
strategies were identified. The Action Plan outlines the programs and activities proposed each year to
meet the identified objectives and strategies. Funds are then assigned to each program and activity.
No specific type of sub‐recipient is given priority for funds ‐ rather the program or activity is given
priority, to which a CHDO could be the most appropriate organization to carry it out. In FY13, the
City of Salem has designated $50,000 in housing rehabilitation funds be put towards the North Shore
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CDC’s renovation of 77 affordable apartments. Please also note that by regulation, the North Shore
HOME Consortium has a 15%minimum funding requirement for CHDO’s.
HOME funds should be prioritized for the creation and/or preservation of affordable housing
units
The 5‐Year Consolidated Plan identified the following Housing Funding Priorities:
o Targeted rehabilitation and financial assistance to stabilize neighborhoods affected by high rates of
foreclosure;
o Rental assistance to very‐low‐ and low‐income individuals and families;
o Preservation of affordable housing;
o Homeless prevention, housing assistance and social services for extremely low‐income households
and families, including the homeless and special needs populations; and
o Continued assistance to homeowners via the First‐time Homebuyer Downpayment Assistance
Loan Program and the Housing Rehabilitation Loan Program.
The City of Salem, in its housing programs and activities, strives to meet all five of these funding
priorities.
HOME funds should be prioritized for the creation of rental housing units rather than
affordable homeownership opportunities
The City of Salem currently has $300,000 in HOME funds set aside for the creation of affordable
rental units at the St. Joseph’s Complex. $30,000 in Salem’s FY13 HOME funds have been set aside
for homeownership opportunities ($27,000 less than FY12) and Salem’s remaining FY13 funds have
been set aside for rental housing assistance and housing rehabilitation.
Both HOME & CDBG funds for service allocations should be prioritized for programs which
are targeted to specifically‐designated low‐income neighborhoods in Salem.
As a result of the citizen participation process during the 5‐Year Consolidated Plan and the new needs
identified since the plan was created in 2010, the FY13 Request for Proposals for public service
funding included the following funding priorities: Supplemental education programs for elementary
school aged children, housing, services for homeless individuals and families, neighborhood safety, food
distribution, child care, job training, transportation and anti‐poverty programs that directly help
reduce household financial burdens. While some programs are targeted to low/mod neighborhoods (i.e.
Point Neighborhood police patrols) or are housed in low/mod neighborhoods (i.e. Salem Community
Child Care, VOCES), some programs (i.e. food distribution, homeless prevention) are not easily
targeted to specific neighborhoods or some of the neediest populations don’t necessarily live in a
low/mod neighborhood (i.e. disabled persons, seniors, homeless). However, the City acknowledges that
low and very‐low income persons should receive priority and, whenever feasible, incorporates this
limitation in its funding agreements.
Both HOME & CDBG funds for projects and service allocations should be prioritized for
projects and services which benefit the most vulnerable populations, specifically the
maximum number of extremely‐low income and very‐low income families and individuals
rather than programs which primarily serve moderate income families and individuals.
During the last completed fiscal year (July 1, 2010‐ June 30, 2010), Salem’s CDBG beneficiaries were
32.8% Extremely Low Income, 65.81% Low Income, .96% Moderate Income and .42% Non‐Low and
Moderate Income.
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I.C. Resources for Fiscal Year 2013
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 FY13 includes
$903,833 in CDBG entitlement funds
(approximately 13 ¼% less than FY12).
Additional funds include an estimated
$102,250 in HOME funds (approximately
43½% less than FY12) 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 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,
Parkland Acquisitions and Renovations for Communities (PARC) funds, Environmental Protection
Agency funds, Public Works Economic Development (PWED) grant from MassDOT, State Seaport
Advisory Council, Massachusetts Historical Commission, National Park Service, Low‐Income
Housing Tax Credits and other State or Federal programs, as well as local Capital Improvement
Program funds.
Together, these resources fund a wide range of activities designed to develop and maintain
affordable housing, improve neighborhood public facilities, provide economic opportunities,
ESTIMATED FY13 FUNDING
$903,833
$102,250
$120,000
CDBG HOME PROGRAM INCOME
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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 FY13 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
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.
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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.
Category Source Objective Outcome # (Units, persons,
etc.)
Performance Indicators
Housing
Occupied by elderly
Brought to HQS
Brought lead safe
Made accessible
Occupied by elderly
Brought to HQS
Brought lead safe
Made accessible
Home Weatherization Program CDBG Decent Housing Sustainability 37 Households Received Energy Efficiency Improvements
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
Pedestrian Mall Improvements CDBG Suitable Living
Environment
Sustainability 1 Pub. Fac.With improved access to a facility or
infrastructure benefit
Teen Resource Center Expansion 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 &
HOME
Suitable Living
Environment
Decent Housing
Sustainability
Creating
Economic
Opportunities
Availability/
Accessibility
4 Housing Units
4 Households
Housing Rehabilitation Loan Program CDGB &
HOME
Decent Housing Affordability
Affordability
Salem Point Apartments Renovation CDBG Decent Housing
CDBG
Neighborhood Street & Sidewalk
Improvements
CDBG
Availability/
Accessibility
Lafayette Park Improvements CDBG
1 Pub. Fac.Suitable Living
Environment
With improved access to a facility or
infrastructure benefit
Business Technical Assistance CDBG
20 Businesses
Sustainability
77 Housing Units
10,000 Persons
Small Business Finanancial Assistance
Programs
CDBG Creating
Economic
Opportunities
Affordability
2 Businesses
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 FY12 CAPER, for the current fiscal year, will be available
by September 30, 2012. The most recent CAPER, for FY11, evaluated the first fiscal year ‐ July 1, 2010
through June 30, 2011 ‐ of the current 5‐Year Consolidated Plan. Low‐ to moderate‐income persons
were directly benefited by 89.64% of CDBG funds spent in FY11. 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 FY11 spending by
category, as a percentage of overall CDBG and HOME expenditures.
FY11 CDBG & HOME Expenditures by Category
Neighborhood
Improvements,
$252,140 , 16%
Affordable
Housing,
$749,784 , 46%
Economic
Development,
$177,903 , 11%
Public Services,
$204,547 , 13%
Planning &
Administration,
$226,593 , 14%
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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 FY13 spending
by category, as a percentage of estimated CDBG and HOME funds. It is estimated that at least 70
percent of the FY13 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 $1,126,083.
FY13 PROPOSED EXPENDITURES (CDBG & HOME)
Neighborhood
Improvements,
$269,407 , 24%
Affordable
Housing, $381,870 ,
34%
Economic
Development,
$115,000 , 10%
Public Services,
$154,040 , 14%
Planning &
Administration,
$205,766 , 18%
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 FY13. 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 2013 Action Plan
II‐2
The proposed St. Joseph’s Complex redevelopment which will create 51 units of new
affordable housing is expected to begin Spring, 2012.
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.
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 2013 Action Plan
II‐3
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.
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
monthly mortgage payment under $1,500, may now have 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 – putting their mortgage “underwater”. 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.
Between 2006 and 2009, mortgage foreclosures were initiated against more than 300 properties in
Salem, and over one‐third were 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. Fortunately, as of
December 2011, the unemployment rate in Salem was 6.5 percent, significantly lower than Salem’s
unemployment rate one year ago (8.1percent in December, 2010).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, 11.1 percent of the communities have actually met the challenge. Salem
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 Labor and Workforce Development
City of Salem FY 2013 Action Plan
is one of 39 communities to reach the 10 percent goal. In June, 2011, MA Dept. of Housing &
Community Development calculated Salem’s Chapter 40B subsidized housing inventory at 12.4
percent, while the state average was just 9.1 percent. Of the 30 cities and towns in the North Shore
HOME Consortium, Salem has the highest percentages of affordable housing.
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
Middleton
Swam pscott
Rockport
Marblehead
Rowley
Manchester
Topsfield
Merrimac
North Andover
Gloucester
Amesbury
Lynnfield
Ip swi ch
Newbury port
Salisbury
Haverhill
Wenham
Andover
Methuen
Danvers
Wilmington
Peabody
North Reading
Beverly
Georgetown
Salem
Salem administers several successful housing programs. The First‐Time Homebuyer 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
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City of Salem FY 2013 Action Plan
residents. This strategy includes both new housing production and preserving the existing housing
stock for working families. The key components of the strategy include:
Producing New Housing Units
Salem consistently provides support toward the creation of new affordable housing units
through the conversion of old, abandoned or underutilized buildings and parcels into new
residential housing units. For example, the City has committed funding to develop affordable
housing units at the former St. Joseph’s Church site. The Boston Archdiocese’s Planning
Office for Urban Affairs (POUA) is the developer. The first phase of the proposed project
includes the razing of the former church and convent buildings and the construction of a new
four‐story building on the site, The 51 units in the new building consist of affordable rental
units. The City has committed $300,000 of CDBG/HOME funds towards the redevelopment
project. The development was also awarded funding through DHCD’s One Stop Funds
Program, as well as funds from the North Shore HOME Consortium In addition, $1 Million
in PWED funds have been allocated for traffic and infrastructure improvements to the
adjacent intersection, which are currently underway. These funds were leveraged by and
will benefit the St. Joseph’s Redevelopment.
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
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.
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City of Salem FY 2013 Action Plan
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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 five complete
calendar years7 .
YEAR 1‐FAMILY CONDO ALL
2011 11 27 52
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
7 The Warren Group, “Foreclosure Stats”, www.thewarrengroup.com.
City of Salem FY 2013 Action Plan
Solicitor and Housing Coordinator and has mapped those properties in GIS. Abutters of
bank‐owned properties are sent letters asking them to be observant and report problems.
The City’s First‐Time Homebuyer Downpayment Assistance Loan Program is available to
first‐time buyers who hope to take advantage of the lower price that they may get by
purchasing a foreclosed upon home. The City’s Housing Rehabilitation Loan Program is
available to investors who purchase foreclosed properties so that they can bring the property
up to code and turn them into affordable rental units.
An important part of the City’s recovery and revitalization efforts is helping to re‐occupy and
repair foreclosed properties, which is accomplished through our First Time Homebuyer and
our Housing Rehabilitation Loan Programs. As part of the Housing Rehabilitation Loan
Program, any renovated rental units are restricted to affordable rents and must be occupied
by low‐ to moderate‐income households for a period of 15 years.
Improving Public Housing
The Salem Housing Authority owns and manages a portfolio of 715 units of decent, safe and
sanitary public housing for low income elderly, family, and handicapped residents which are
scattered across the City of Salem. Funding to preserve and maintain these properties is
provided by the Department of Housing and Community Development and the Department
of Housing and Urban Development. Capital improvement work is performed through
funding from the Commonwealth’s Department of Housing and Community Development
and the Department of Housing and Urban Development. The following modernization
work is currently underway or in design at the following SHA developments:
o $150,000 elevator replacement at the Morency Manor elderly housing;
o $38,000 flashing repair project at the 27 Charter Street elderly housing;
o $350,000 door replacement and related work at the Leefort Terrace elderly housing;
o $26,000 roof replacement and related work at the Phillips House handicapped family;
o $21,000 louver repair work at the Phillips House handicapped family housing;
o $50,000 exterior door replacement work at Bertram Terrace and Norton Terrace elderly
housing;
o $50,000 water infiltration work at the community room at Colonial Terrace elderly
housing;
o $800,000 window and door replacement work at Pioneer Terrace elderly housing
Providing Expanded First‐Time Homebuyers Assistance
The City continues its goal to provide families with the opportunity to own their first home
through 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.
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City of Salem FY 2013 Action Plan
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.
Work Regionally to Increase the Supply of Housing
The housing market operates regionally and the impact of the market is not confined to city
boundaries. Salem has more affordable housing than many cities in the region. At 12.4
percent, Salem has the 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
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City of Salem FY 2013 Action Plan
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
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
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City of Salem FY 2013 Action Plan
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 has provided brief legal service or direct legal
representation to hundreds of low‐income tenants. NSCAP works with clients to resolve housing
issues and has 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. Nevertheless, in March 2010, NSCAP provided the following statistics:
57% 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 $3.59/gal to $4.14/gal (15% increase) in the last
year while the fuel assistance benefit has decreased slightly.
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
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.
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City of Salem FY 2013 Action Plan
St. Joseph’s Food Pantry/North Shore Moving Market– provides food distribution to elderly
and disabled residents.
Eastgate Fellowship Church – provides a food pantry for low and moderate income 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.
II.A-4.3. Homeless Prevention
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 Eastgate Fellowship Church, 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.
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City of Salem FY 2013 Action Plan
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II.A-5. Fiscal Year 2013 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 FY13 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.
Home Weatherization Program
The “Salem EEKO Team” (EEKO = Energy Efficiency Knock‐out) home energy and water
conservation program is designed to educate owners/ renters and volunteers about conservation
measures, while actually implementing the simplest of those measures. The field visits consist of
diagnostic work, in the form of blower door testing, infrared scans, combustion safety testing,
and plug load testing, and remedial measures consisting of installation of CFL light bulbs, smart
power strips, programmable thermostats, weatherstripping, pipe insulation, low‐flow aerators/
showerheads, toilet tank banks, etc.
Projected Accomplishments: 37 Households Assisted
Proposed Funding: $15,000 CDBG
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: 4 Housing Units Rehabbed
Proposed Funding: $131,474 CDBG; $29,183 HOME
This activity may also use carried over funding from FY12.
Salem Point Apartments Renovation
The North Shore CDC maintains the Salem Point Apartments, a 77‐unit affordable rental housing
property. The units will undergo a major renovation at a cost of approximately $12.6 million,
which will begin in Spring, 2013.
Projected Accomplishments: 77 Housing Units Renovated
Proposed Funding: $50,000 CDBG
City of Salem FY 2013 Action Plan
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: 4 Households Assisted
Proposed Funding: $30,000 HOME
This activity may also use carried over funding from FY12.
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
subsidized rents on a temporary basis for families escaping violence.
Projected Accomplishments: 39 households assisted
Proposed Funding: $40,000 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. In recent years, it included Homelessness Prevention
Programs 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, a First‐Time
Homebuyer education program, as well as an accessible housing services for those with
disabilities.
Projected Accomplishments: See Community Support Services in the Social Services section
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: $83,146 CDBG; $3,047 HOME
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City of Salem FY 2013 Action Plan
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Ribbon cutting for the opening of Scrub
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. However,
there are some signs of improvement. For example, as of
December, 2011, the unemployment rate in Salem was 6.5% (down
from 8.9% the year before)10 While this data is encouraging, there
is considerable work to be done, and 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
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.
and
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 Massachusetts Department of Labor and Workforce Development
10 Northshore Workforce Investment Board
City of Salem FY 2013 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 2013 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 2013 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 FY13. 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 2013 Action Plan
Projected Accomplishments: 2 businesses
Proposed Funding: $30,000
Location: Citywide availability with eligible projects selected on a rolling basis.
This activity may also use carried over funds from FY12.
Business Technical Assistance
The City helps to coordinate and fund technical assistance services to local business owners. In
FY13, 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 Area.
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 area
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City of Salem FY 2013 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 FY13, the City will continue the
investment in various neighborhoods.
II.C-1. Strategies for Infrastructure and Public
Facilities On Point Teen Resource Center in the Point
Neighborhood. Photo courtesy of
www.wickedlocal.com Public Infrastructure and Traffic
Improvements
In FY13, 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 Derby/Congress intersection and a priority bike route in
low/mod neighborhoods. This year, the City will also look at improvements to the
pedestrian mall.
Neighborhood Planning Initiatives
The City is committed to conducting neighborhood planning initiatives. Traffic, streetscape
and pedestrian safety improvements on Lafayette Street from the intersection at Harbor
Street to the intersection at Washington and Dow Streets are currently underway. 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,. In FY13, CDBG funds will be used to build an addition on an existing City‐
owned building in the Point Neighborhood being used as a Teen Resource Center. The
addition will allow the program to expand, which would provide space for a 90‐day court
involved program for at risk youth, as well as creative space and space for neighborhood
events.
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City of Salem FY 2013 Action Plan
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II.C-2. Fiscal Year 2013 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: $50,000
Pedestrian Mall Improvements
Infrastructure improvements to enhance pedestrian circulation, safety and aesthetics.
Projected Accomplishments: Various infrastructure improvements
Proposed Funding: $50,000
Point Neighborhood Teen Resource Center
Construction of a 24’ x 24’ room to provide for expanded programs and events at this
neighborhood public facility.
Projected Accomplishments: New fence installation
Proposed Funding: $57,600
Lafayette Park Improvements
Installation of period light, benches and other improvements.
Projected Accomplishments: Various infrastructure improvements
Proposed Funding: $50,000 – This project will also include carried over funds from FY12.
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: $42,807
The Neighborhood Improvement category will also include $19,000 for program delivery costs.
City of Salem FY 2012 Action Plan
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 primarily benefit Salem’s low‐ to moderate‐
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
abusers and homeless persons and families). Each year, Salem
sets aside funds for social service programs to address these
special needs.
Joseph’s Storehouse,
courtesy of Facebook
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 2013, 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%).
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
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City of Salem FY 2012 Action Plan
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residents, it is a forum to work toward filling gaps in services and avoiding the duplication of
efforts. DPCD staff coordinates the quarterly meetings and distributes the digital quarterly
Salem H.O.P.E. newsletter.
II.D-2. Fiscal Year 2013 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.
Proposed Accomplishments: Grants for approximately 25 social service agency programs to
assist an estimated 10,000 persons.
Proposed Funding: $154,040 (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 2013, the City of Salem
plans to use CDBG funds to provide the tools needed to manage
the CDBG program.
The City has applied for grant funds to
upgrade and add new history panels in
our neighborhoods.
II.E-1. Fiscal Year 2013 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.
Proposed Funding: $205,766 (salary, benefits, non‐salary expenses, studies)
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City of Salem FY 2012 Action Plan
II.F. FISCAL YEAR 2012 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 FY12 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 FY13.
Project Description
Economic Development Programs
Programs include Business Loans, Neighborhood Storefront
Improvements. Business Technical Assistance and Salem Main
Street Initiative
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
Splaine Park Improvements
Rebuilding ballfield through grading, re‐sodding and adding
clay; installation of irrigation system to entire ball field;
restoration of basketball court and gazebo, replacement of
playground; enhancement of entrances, and installation of
community growing spaces using CDBG, City and PARC grant
funds.
Tree Planting Program Planting of new street trees in eligible areas
Senior Center Financing toward acquisition of a space for a new senior center
142 North Street National Register
Nomination Preparation and submission of nomination documents
Update of Historic Interpretive
Panels
Preparation of narratives and design of panels for several
neighborhoods
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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 FY13 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 (Authority), the DPCD coordinates with the Authority to address the
housing needs of Salem’s lower‐income residents. While developing its Consolidated Plan, the city
consulted with the Authority to determine the agency’s most pressing needs. In addition, Authority’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 Salem Housing Authority is governed by a Board comprised of five members. The Mayor of
Salem appoints four of the five board members and the fifth board member is appointed by the
Governor of the Commonwealth of Massachusetts. One member of the board is required to be a
resident of public housing and one member must be a member who represents organized labor.
The Authority serves over 1,000 participants through the Section 8 Housing Choice Voucher
Program. The Authority receives over $10 million in federal funding to administer this program.
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.
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 – FY13 Action Plan
The public participation component for the FY13 Action Plan began with a public hearing held on
Thursday, January 19, 2012 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 22, 2012 with a second public hearing to be held on March 29. 2012. 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:
1.) Lack of awareness of fair housing rights;
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City of Salem FY 2012 Action Plan
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
regularly interact with minority, disabled and low‐income populations. These interactions
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City of Salem FY 2012 Action Plan
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. Staff presented at four
workshops in FY09 and staff presented at one workshop in FY10, and in FY11. (These efforts
work to address impediments 1, 2, 4 and 7.)
The City creates partnerships with local organizations to educate minority and low‐income
homebuyers about their rights under the fair housing law: The City provides financial
assistance to Community Teamwork, Inc., a nonprofit organization that conducts CHAPA‐
certified, first time homebuyer educational courses. These courses are held primarily in the Point
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City of Salem FY 2012 Action Plan
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, in June 2010 and in March, 2011. Additional trainings are scheduled for
FY12. (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. In March, 2012, the City
added Google Translate to its website to allow users to automatically translate our web
pages into one of more than 50 languages. The programming information was also
forwarded to on agencies on the Salem HOPE distribution list and to the agencies who
receive public service funding.
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
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City of Salem FY 2012 Action Plan
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.
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
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City of Salem FY 2012 Action Plan
DPCD has a Monitoring Plan in place that allows the City to track whether long‐term goals are being
met, including minority business outreach. As detailed in the Managing the Process and Institutional
Structure section of this document, the City manages its programs to ensure compliance with
identified goals and federal, state and local regulations. The Environmental Review Record contains
statutory checklists, documentation on flood management, wetlands protection, and prevailing wage
documentation, as applicable.
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.
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City of Salem FY 2012 Action Plan
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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.
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.
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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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.
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 and NSCAP’s Salem Cyberspace Program.
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
12 North Shore Workforce Investment Board, “Mission Statement,” <http://www.northshorewib.com/>.
City of Salem FY 2012 Action Plan
III‐13
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.
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 North Shore 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. North Shore 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.
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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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
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.. 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. Initial Public Hearing
On January 5, 2012, 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 19, 2012. A public participation guidebook was provided to
all attendees. A Spanish translator was present. Minutes of the meeting are included herein.
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 8, 2012. 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 15, 2012 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 22, 2012 and ended on April 20, 2012. A public
hearing was held March 29, 2012 at City Hall Annex. Copies of the Draft Plan were provided to all
attendees. A Spanish translator will be present. Minutes of the meeting are included herein.
Copies of the Draft Plan were provided to the Salem City Council. The City Council approved
submission of the Application for Federal Assistance at its April 12, 2012 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 19, 2012 Public Hearing (9 attendees, 5 city staff)
The City of Salem held a public hearing regarding the development of the FY13 Action Plan for
Community and Economic Development for the period of July 1, 2012 to June 30, 2013. The public
hearing was held in the third floor conference room at the City Hall Annex, 120 Washington Street,
on Thursday, January 19, 2012 at 6:00pm. Present representing the City of Salem were Lynn Duncan,
Director of Planning and Community Development (DPCD), Jane Guy, Assistant Community
Development Director, Tom Daniel, Economic Development Manager, Frank Taormina, Staff
Planner, and Naomi Francisco, Acting Housing Coordinator, who was also 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 thanked the recognized the city councilors who were in attendance. She stated that the
Community Development Block Grant program provides assistance based on the needs of low and
moderate income residents. She noted that the CDBG program was hit with a thirteen percent
reduction of funds this year, which followed a 16% reduction from the previous year. She also stated
that the HOME program funding was hit with a 35% decrease.
Ms. Guy stated that the purpose of this hearing is to get public comments on Salem’s housing,
community and economic development needs. She noted that the City is required to do a
Consolidated Plan every five years, which the City completed in 2010 through an extensive process.
For each of the five years of the plan, the City is required to create an Action Plan which outlines how
the city will spend the funding received from the federal government. The process begins with this
meeting to get public comment. A draft plan is then produced and is followed by another public
hearing in March, along with a 30 day public comment period.
Ms. Guy stated that HUD has estimated that our FY13 CDBG allocation will be $905,916. This
represents a $136,180 cut from FY12 and a total two year cut of $201,521 or just over 27% for Salem.
She also noted that HOME funding has received even deeper cuts. Last year we received $181,248.
We are estimating a 35% cut from last year and have put our estimated funds at $118,125. 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, create jobs or improve the
urban renewal area. Examples of programs we have funded include the economic development loan
program to create or retain jobs, the housing rehabilitation loan program, or the first time homebuyer
program. Funds can also be allocated for studies to preserve historic buildings, handicap access
improvements, public facility improvements such as a restoration work on a firehouse or a
playground, and infrastructure improvements such as tree planting, sidewalk curb cuts and street
resurfacing. She stated that grant funds are also provided 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. She noted that some of the attendees at the hearing are
from Catholic Charities and the North Shore Community Development Center, which are examples
of such organizations.
Ms. Guy reviewed the changes in the 2010 Census. A map of eligible areas where funding could be
spent last year was presented, followed by a map that tentatively shows areas where funding can be
allocated this year. She noted that HUD has indicated it will change from using block groups to
census tracts for identifying low to moderate income areas. She also noted that HUD is not
confirming that this is a final version of the low to moderate income areas, and that the final version
will not be determined or available until the spring. What appears to be added from last year’s
eligible areas is a region in South Salem by the Forest River. What appears to have been removed are
sections along Szetela lane and by the Common, as well as a large section along Boston Street.
Ms. Guy opened up the meeting for questions or comments.
Teasie Riley Goggin inquired about the HUD loan for the acquisition of the Senior/Community Life
Center and wanted to know if an application had been submitted to utilize funds from CDBG in
order to pay back the loan.
Ms. Duncan stated that an application had been submitted and approved by HUD, but the agreement
has not been executed and funds are not proposed to be used this year. She stated that it was going to
be a combination of block grant dollars and private financing that would pay back the loan. She
stated that over a period of eight to ten years, this combination, along with the tax revenue generated,
would be sufficient to carry the entire debt. Ms. Duncan stated that the reason it’s not being added in
the Action Plan is because the project is not ready yet for acquisition.
Ms. Goggin asked if there was an extension or if it died on December 31st.
Ms. Duncan stated again that an extension would need to be requested but that we don’t have the
exact timing as yet for the senior center and that it is a fifteen month construction project, which has
yet to begin.
Councillor Robert McCarthy stated one of the police officers from the Community Impact Unit
reached out to him wanting to know if he could support funding for the Palmer Cove Building. He
stated that there are numerous teen programs being run, but he feels that they could do much more if
they had more space. They are looking for support to expand and enhance the youth facility because
the building is so crammed and they need space for more recreational use.
Ms. Guy said that she has actually already spoken with Captain Mark Losolfo and Harry Rocheville
and stated that they do plan on submitting an application.
Councillor McCarthy stated that he supports this. He noted that Park and Recreation approval would
be necessary, and he feels that the program has been doing really well for the children and they
would only benefit more if the program could be expanded. He said that he backs all the initiatives in
the current plan in regards to bike patrols and grants for increased police presence. He noted that,
through this program, we were able to fund another police officer on Thursday, Friday, and Saturday
nights which was also very helpful for areas such as the Point neighborhood and downtown.
Ms. Guy stated that by regulation, the city can only spend 15% on public service programs.
Unfortunately, every time our funds are cut, it cuts the amount we are able to give to these programs.
Kristin Anderson, of the North Shore Community Development Coalition, stated that they have put
in a request for space improvement for a job creation/ program through the CDBG economic loan
program. Working with the Community Impact Unit and the Salem Community Charter School, they
are now piloting a program focused on at risk youth, where they would learn leadership skills along
with soft construction and property management skills. Another goal of this program is to create a
community space. Through this, they would be creating jobs for the youth, and hiring specialized
laborers for electrical, mechanical, and plumbing work to help build out a program space that can be
used for this youth jobs program. She expressed continued support for ESL programs and suggested
that the priority be raised from medium to high in the next 5‐year Action Plan.
Peter Rogers, also of the North Shore Community Development Coalition, advocated for their
proposed major rehabilitation of eleven buildings in the Point neighborhood. These buildings serve
the low and extremely low income households. 90% of the tenants in these building have an AMI of
50% or less, and 60% of the tenants have an AMI of 30% or less, which he feels shows how much it
serves the low income community. He stated that a memo would be dropped off with letters of
support to promote funding for the project, as they go through their rehabilitation phases.
Ms. Goggin inquired about supporting more rooming houses here in the City. She stated that there is
a need to support young professionals and career starters as they are beginning to join the work
force.
Ms. Guy stated that if anyone has any further questions or comments they should feel free to do so at
any time during the process. She encouraged them to talk with their councilors as well.
Ms. Duncan thanked everyone for attending and providing their comments.
IV.B-5. March 29, 2012 Public Hearing (3 attendees, 4 city staff)
The City of Salem held a second public hearing regarding the development of the FY13 Action Plan
for Community and Economic Development for the period of July 1, 2012 to June 30, 2013. The public
hearing was held in the third floor conference room at the City Hall Annex, 120 Washington Street,
on Thursday, March 29, 2012 at 6:00pm. Present representing the City of Salem were Lynn Duncan,
Director of Planning and Community Development (DPCD), Jane Guy, Assistant Community
Development Director, Frank Taormina, Staff Planner, and Naomi Francisco, Housing Coordinator,
who was also available to provide Spanish translation. Copies of the Draft Action Plan 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 this is the second public hearing for fiscal year 13. She stated that the first
public hearing on January 19th was to discuss the needs and what groups and types of projects that
the public felt the City should be funding. She stated that the City needs to look at priorities now
since we took another 13% reduction and that we need to be very strategic on how we spend our
dollars. She noted that copies of the Draft Action Plan are available or it can be found online at the
City’s website.
Ms. Guy restated that the purpose of the first public meeting was to see if there were any new needs
or priorities to add to our five‐year consolidated plan which was last done in 2010. In 2010, a lot of
time was spent going over the different needs of the different groups throughout the city. She also
stated that each year there is an action plan which outlines how the City is going to spend each year’s
allocation of money for CDBG and HOME funding. She stated that process begins with a public
hearing to see if there are any new needs or priorities that have been identified since the Consolidate
Plan was completed. She stated that the FY12 Action Plan has been drafted. Ms. Guy noted that for
the period of July 1, 2012 through June 30, 2013, HUD has notified us that our formula allocation will
be $903,833, which is $2,000 less that what she thought is was going to be back in January. She stated
that it is the lowest amount of funding the City has had in the 23 years she has been with the City. It
is estimated that $120,000 will be generated in program income, and the North Shore Home
Consortium has estimated that Salem’s allocation will be $102,250, which is $16,000 less than what
she thought the City would be receiving. She further pointed out that this is the lowest amount of
funding Salem has received in over twenty years.
Ms. Guy then went on to describe this year’s draft action plan and proposed allocation of funds. She
stated the core programs that people have come to depend on have been included in the action plan,
such as the business loan program to create jobs, storefront improvements, rental down payment
assistance, the housing rehabilitation loan program, a small chunk it the first time homebuyer loan
program (reduced due to the decrease in applicants), and neighborhood infrastructure
improvements, such as replacement of sidewalks and street paving. She then noted that there have
been new programs added, such as a home‐weatherization program for small weatherization
improvements, assistance to the North Shore Community Development Coalition towards the
rehabilitation of their 77 units of affordable rental housing, funding for pedestrian mall
improvements and funding for the expansion of the teen resource center in the Point neighborhood.
Ms. Guy stated that we are now in the public comment phase of our action plan process and that we
will consider any comment made here or in writing until the comment period ends on April 20th. She
recognized Kathy Harper, who is on the Citizen’s Advisory Council, who was in the audience. She
then opened up the meeting for any questions or comments.
Teasie Riley Goggin of the Alliance of Salem Neighborhood Associations, inquired what the plan was
for the teen center and how long it was going to take.
Ms. Guy stated that they want to expand it for more programming, and the project calls for an
addition to the building. She stated that it is to not only have expanded programs that the police do
with kids there, but it would also serve as community space, which is something that the Point
Neighborhood has been asking for for many years.
Ms. Goggin stated that she felt it was wonderful and agreed they need more space.
Ms. Guy believes that as soon as HUD approves the Action Plan, the project will start, hopefully by
this summer.
Ms. Goggin asked if there is still a plan for a community room in the St. Joseph’s Redevelopment
Project.
Ms. Duncan responded that as far as she knew, it was still in the plans. She stated that the Teen
Resource Center would have expanded space for the Teen Program, as well as creative space and
space for neighborhood events. As far as she knew there would still be a community room in the St.
Joseph’s redevelopment, as well.
Ms. Harper asked if there was any CDBG money going into the senior center and what the schedule
is for the project.
Ms. Duncan stated that she does not have a specific schedule on the senior center because the City is
waiting to hear back from the developer. She stated that she did not know if they have the final
Chapter 91 License in hand. She added that this is why the City is not including any financial block
grant resources now for FY13.
Ms. Harper asked if money has been put aside for this project because she is aware that sometimes
long term projects get money put aside.
Ms. Guy stated that there was money put aside but it was then reprogrammed it. There is currently
no money set aside in CDBG.
Ms. Duncan stated that the City has gotten an approval for a Section 108 Loan which would have
required us to program the loan repayments every year. She stated that they did not close on the
loan because there is no specific timeframe.
Ms. Guy stated that by the time it finishes permitting and is ready to go, CDBG funding wouldn’t be
needed until later, so there is no reason to allocate the money now.
Ms. Goggin asked if the application went it.
Ms. Duncan explained that the application was approved, but the city did not enter into the
contractual agreement, because doing so would have meant they would need to bond within a
specific time period and the city was not prepared to do that. Therefore, because we did not enter
into that agreement, the repayment funds from CDBG have not been set aside.
Ms. Goggin stated that she was told that, at the present time, the developer has no tenants in mind
other than it serving as a senior center.
Ms. Duncan stated she did not know. She stated that at different times he has had people interested,
but doesn’t know if he has had anybody “sign on the dotted line.”
Jackie Giordano of the North Short Community Development Coalition stated that the North Shore
CDC presented its comments in writing a couple days ago and wanted to touch upon their points
again. She stated that she respected the City of Salem for what has been proposed. She stated that
they want to make sure that the HOME and CDBG funds are prioritized for CHDO certified
organizations. She stated that because the North Shore CDC is a CHDO organization, and they have
Salem Point members on our board of directors, held accountable. This way, the community really
gets to see what they are doing and they have a say. Ms. Giordano went on to say that the HOME
funds should be prioritized for the creation of affordable housing units, because this is a long term
benefit and serves the greatest number of low income families, instead of home ownership
opportunities. She stated that heir project includes 77 units, and felt it was a larger lasting impact to a
more vulnerable population. Lastly, Ms. Giordano stated that all the service allocations should be
prioritized to target specifically low income neighborhoods, mainly the Salem Point Neighborhood.
Ms. Duncan pointed out that the draft action plan does designate $50,000 in housing rehabilitation
money to be put towards renovation of the 77 units at Salem Point Apartments. So, there is significant
support for the CDC and for low income affordable housing. She adds that she is very happy to have
an active and vibrant CDC with whom to work on these projects, because she thinks they are very
grounded in the neighborhood.
Ms. Giordano agreed and stated the they truly enjoy the partnership with the City.
Ms. Goggin stated that she thinks it is wonderful for all the affordable housing as far as apartments,
but she knows individual housing brings self‐esteem and that it creates a new type of citizenry. She
stated that she applauded that idea here in Salem and encouraged the City to push that.
Ms. Duncan stated that there has been very little demand for the first time homebuyer program
because of the market and the credit writing standards. She stated that there is a much more limited
amount of funds and while we support the CDC, we will continue to operate our housing
rehabilitation program to help low income, to help seniors, and to help address emergencies such as
no heat and leaking roofs. She stated that it is one of the core programs.
Ms. Goggin stated that she thought it was wonderful. She stated that she knows we have NSCAP
and others, but that it is nice to know that the City has its own program.
Ms. Guy stated the Home Consortium formula funding to the cities has gone down, but that the
competitive pool funding is staying the same. They set aside $300,000 every year and that is not
changing this year. She explained that his pool often goes to CHDOs. She added that Salem has the
highest percentage of affordable housing of the thirty consortium communities, and she encouraged
the CDC to work with the Home Consortium, so that there can be affordable housing in every
community.
Ms. Giordano agreed and stated that this is why the CDC chooses to work in Beverly and also
prospects in other communities.
Ms. Goggin asked if Georgetown has the highest.
Ms. Guy said that they used to be, but they are not anymore. Salem is back on top. She said she
thinks it is because Georgetown’s percentage has dropped, and not because Salem has added.
Ms. Duncan stated that they might have dropped because they had a lot of new construction going
on in the first ten years of 2000. She also noted that even though Salem is over 10%, more affordable
housing is definitely needed.
Ms. Guy that in regards to social service funding contracts, whenever it is possible, the contacts say it
is for low and very low income people, and not moderate, because we want to try and focus on the
most needy.
Ms. Giordano stated that 60% of the Point Neighborhood qualifies as very low or low income.
Ms. Duncan noted that there is a lot of need.
IV.C. Maps
The following maps are included in the hard copy of this report:
o Low to Moderate Income Areas
o From 5 Year Consolidated Plan
o From HUD’s CPD Maps
o Urban Renewal (SRA) boundaries. For a digital version of the map to go
http://www.salem.com/Pages/SalemMA_BComm/forms/RenewalMap.jpg
o Areas of Racial & Ethnic Minority Concentration from 5 Year Consolidated Plan
o Poverty Rate from HUD’s CPD Maps
The 5 Year Consolidated Plan can be viewed at
http://salem.com/pages/salemma_dpcd/studiesreports/conplan2010.pdf
HUD’s CPD Maps is a recently released on‐line mapping application.
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.