CDBG FY13 CONSOLIDATED ANNUAL PERORMANCE EVALUATION REPORT
CONSOLIDATED ANNUAL PERFORMANCE
AND EVALUATION REPORT
CITY OF SALEM, MASSACHUSETTS
Fiscal Year 2013
July 1, 2012 to June 30, 2013
Kimberley Driscoll, Mayor
Lynn Goonin Duncan, AICP, DPCD Director
Jane A. Guy, Assistant Community Development Director
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EXECUTIVE SUMMARY
Throughout the many years of the City of Salem’s Community Development Block Grant Program
(CDBG), significant improvements have been made to the City’s physical and social environment
for its low- and moderate-income residents. The CDBG program has made a strong impact in
Salem, as seen through the numerous homes rehabilitated, neighborhood facilities and infrastructure
improved, businesses strengthened, jobs created and families served through our public service
agencies.
During Fiscal Year 2013, we expended $1,160,747.49 in CDBG funds to assist our low- and
moderate-income residents. The focus of the program continued to target affordable housing
programs, neighborhood improvements, public service programs, and economic development
initiatives. In addition to CDBG funds, we expended $183,852.57 in HOME funds.
The FY13 Consolidated Annual Performance and Evaluation Report (CAPER) provides an analysis
of the third fiscal year - July 1, 2012 through June 30, 2013 - of the City’s 5-Year Consolidated Plan
completed in 2010. This report is an opportunity to demonstrate our progress and report our
successes over the past fiscal year and to inform the community of how federal and local programs
are making a difference in the lives of low- and moderate-income residents throughout Salem.
Overview
Overall, we made notable progress during the past fiscal year. As this report indicates, we made a
significant advancement in meeting the goals and objectives stated in the 5 -Year Consolidated Plan
and FY13 Action Plan. We also continued to meet HUD required funding and expenditure caps
and timeliness requirements.
We use various indicators to measure our success. In our housing programs, we continue to assist
first time homebuyers in neighborhoods throughout the city, improve housing conditions, help
renters move into decent, affordable housing and work toward increasing our affordable housing
stock. Our economic development programs continue to attract new businesses that create jobs in
our city and to improve existing businesses that retain jobs and enhance economic vibrancy. Public
service agencies continue to reach our low- to moderate-income residents with their valuable
programs that work toward family self-sufficiency. Finally, our neighborhood improvement projects
made visible changes to areas in the City of greatest need and helped all residents gain access to both
public and private services. Perhaps the greatest indicator of our success is illustrated in the positive
feedback we receive from those affected by our programs.
Organization of the Report
In this report, we included data to fulfill HUD requirements, as well as information that may be of
interest to our residents. The CAPER is broken up into four sections—Assessment of Goals and
Objectives, Supplementary Narratives, Funds Leveraged, and Citizen Participation Summary—in
order to provide residents with an overview of our accomplishments and allow readers to track our
progress throughout the fiscal year.
Assessment of Goals and Objectives – Throughout this section we provide a summary of our
accomplishments over the past fiscal year, including a summary of our expenditures. It provides
an overview of each program area including an assessment of goals and how activi ties met the
objectives laid out in the Consolidated Plan.
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Supplementary Narratives – As part of our reporting requirements for HUD, we must answer
certain questions regarding our program expenditures and activities. In this section, we provide
supplementary narratives that provide answers to these questions.
Funds Leveraged – Another measure of the success of our program is the funds we leverage with
our federal grants. This section includes a table outlining the funds leveraged from CDBG and
HOME.
Citizen Participation Summary – In this section, we outline how we solicit public comment on our
programs and list the comments heard, if any, during the Public Comment Period, along with
our response to those comments.
The Appendix includes maps, a Financial Summary and tables and spreadsheets to help illustrate
program expenditures and progress.
Contact Information
We are always open to feedback on our progress, as well as to answer questions regarding any of our
programs mentioned in this report. If you would like more information please contact the
Department of Planning and Community Development at 978-619-5685.
CAPER finalization date – September 26, 2013
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INTRODUCTION .................................................................................................................................................. 1
Assessment of Goals and Objectives .............................................................................................................. 3
Affordable Housing Programs ................................................................................................................ 4
Public Services ......................................................................................................................................... 16
Economic Development ........................................................................................................................ 21
Neighborhood Improvements .............................................................................................................. 24
Planning & Administration .................................................................................................................... 26
Other Actions .......................................................................................................................................... 27
Summary/Program Evaluation/Conclusions ..................................................................................... 31
Supplementary Narratives ............................................................................................................................... 33
Funds Leveraged .............................................................................................................................................. 36
Citizen Participation Summary ...................................................................................................................... 38
Appendix
Financial Summary
Progress of Consolidated Plan 5-Year Goals
IDIS Report PR23 Excerpts
Total CDBG Beneficiaries by Racial/Ethnic Category
CDBG Beneficiaries by Income Category
IDIS PR54
Maps
Section 3 Report
Cover photo: Seniors utilizing the Salem Council on Aging Transporation Program
TABLE OF CONTENTS
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The Consolidated Annual Performance and Evaluation Report (CAPER) is a summary of the annual
accomplishments produced by the City of Salem and its community partners, as the goals and
objectives of the 5-Year Consolidated Plan (Fiscal Years 2011-2015 (FY11-15)) were implemented.
The current 5-Year Consolidated Plan began on July 1, 2010. The FY13 CAPER provides an
analysis of the third fiscal year of the 5-Year Consolidated Plan — July 1, 2012 through June 30,
2013.
Program Goals
One of the overarching goals of the City of Salem is to provide a healthy, affordable and accessible
community for its residents to live and work and for its businesses to thrive. To accomplish this
goal, the City uses grants from the U.S. Department of Housing and Urban Development (HUD)—
Community Development Block Grant (CDBG) and Home Investment Partnership Program
(HOME)—which are administered through the Department of Planning and Community
Development (DPCD). The following describes each of the grants and their program objectives.
CDBG is a formula-based program designed to develop viable urban communities by
providing decent housing, a suitable living environment, and expanding economic
opportunities for persons of low- and moderate-income1.
HOME is a formula-based program for expanding and improving the supply of decent, safe
and affordable housing for low- and moderate-income persons.
These resources fund a wide range of projects designed to develop and maintain affordable housing,
improve neighborhood public facilities, provide economic opportunities, improve access to public
facilities for people with disabilities, provide critical public services, assist people who are homeless,
and prevent homelessness.
Importance of the Consolidated Plan, Annual Action Plan, and CAPER
In a streamlining effort initiated in the mid-1990s, HUD consolidated the various planning efforts
required by the National Affordable Housing Act of 1990 and the Housing and Community
Development Act of 1992. A Consolidated Plan for Housing and Community Development
(Consolidated Plan) must be prepared every five years in order to receive CDBG and HOME funds
from HUD. Prior to the start of each fiscal year within the five-year Consolidated Plan period, an
Annual Action Plan must also be prepared which lists the specific projects that will be undertaken
with CDBG and HOME funds during that year.
In addition to streamlining planning efforts, HUD also streamlined reporting requirements through
the development of the Consolidated Annual Performance and Evaluation Report (CAPER). The
CAPER must be prepared annually and must describe how CDBG and HOME program activities
address goals and objectives identified in the Consolidated Plan.
This approach to planning and reporting eliminates duplication in preparing separate applications
and reports that, in turn, require multiple planning, development and citizen participa tion meetings
throughout the year. More importantly, the Consolidated Plan, Annual Action Plan, and CAPER
provide a comprehensive analysis of community needs, identify goals, and lay out objectives that will
1 Low- to moderate- income individuals equals less than 50 or 80 percent of the Boston area median income respectively.
INTRODUCTION
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be undertaken to address those needs, as well as provide a mechanism for reporting
accomplishments.
The Consolidated Plan, Annual Action Plan, and the CAPER provide a means to evaluate each
community’s situation and determine the most effective ways to use funds received from HUD. The
Consolidated Plan establishes a vision for attaining a higher quality of life for low- and moderate-
income residents, the Annual Action Plan outlines specific activities that work toward accomplishing
that vision, and the CAPER measures the success in achieving that vision.
United Cerebral Palsy’s North Shore Infant & Toddler Program
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During FY13, the DPCD continued to make significant progress toward meeting the goals and
objectives laid out in the 5-Year Consolidated Plan and FY13 Action Plan. The CDBG entitlement
funds from HUD for the fiscal year were $903,833 and program income received during the
program year was $118,054.87. Our HOME funding allocation was $102,250. We also used any
available carried over CDBG and HOME funds from prior years.
CDBG Expenditures
In FY13, we expended a total of $1,160,747.49 in CDBG funds. Expenditures were divided into five
program areas — Affordable Housing, Neighborhood Improvements, Planning & Administration,
Public Services and Economic Development. In FY13, we met all timeliness requirements and
program expenditures were consistent with our 5-Year Consolidated Plan and FY13 Action Plan
goals. Furthermore, Public Service programs were just below the 15 percent maximum allowable for
such activities, and we did not exceed the 20 percent Administration spending cap. In the Financial
Summary tables found in each program area, “funding available” indicates the total CDBG funds
available during the fiscal year, including FY13 and prior year carried over funds+/- any adjustments
made during the year.
HOME Expenditures
In addition to CDBG funds, the DPCD also spent $194,687.72 in HOME funds to undertake
affordable housing activities. When added to the $168,541.41 spent in CDBG funds, the total amount
spent for housing programs is $363,229.13. The City of Salem is a member of the North Shore
HOME Consortium and the specific accomplishments of HOME activities are reported to HUD
through the Consortium by the City of Peabody. However, a summary of our activities are reported
throughout this document.
Program Accomplishments
Overall, we were on target in meeting our Consolidated Plan goals and objectives. The following
sections provide a summary of accomplishments for each of our program areas and evaluate our
progress based on the
needs outlined in the 5
Year Consolidated Plan
and FY13 Action Plan.
The final section
provides an overall
evaluation of our
programs. The
Financial Summary of
our expenditures found
in the Appendix
illustrates our
compliance with
program expenditure
caps as well as
expenditures by
category (see Figure 1).
ASSESSMENT OF GOALS AND OBJECTIVES
FY13 CDBG & HOME Expenditures by Category
Neighborhood
Improvements
38%
Affordable
Housing
27%
Economic
Development
7%
Public Services
12%
Planning &
Administration
16%
Fig. 1 FY13 Spending by Category,
as a Percentage of Total CDBG & HOME Expenditures
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Before and after photos
of weather damaged wall
AFFORDABLE HOUSING PROGRAMS
Due to the high cost of housing in
Massachusetts and the continued need
to recuperate from the foreclosure
crisis, we continue to place the creation
and preservation of affordable housing
as a high priority of Salem’s CDBG and
HOME programs. The City of Salem
has a number of services that address
housing issues, including rehabilitating
and maintaining current housing stock,
developing new housing opportunities,
assisting families in acquiring housing
and enabling struggling families to
remain in their homes.
In FY13, the City of Salem spent
$363,229.13 in CDBG and HOME
funds on affordable housing projects and programs. The project accomplishments attained with
these funds during FY13 are described in the following table.
Table 1: FY13 Housing Financial Summary
Project Project Description Funding Available2 Status
First Time
Homebuyer
Program
Provides 0% interest deferred
payment loans to low- to
moderate-income families that
wish to purchase a home in the
City of Salem.
$5,000 HOME
(FY13)
$25,000 CDBG
(Carried over)
$2,315 HOME funds spent
$13,440 CDBG funds spent
3 Salem families assisted (3
units)
Housing
Rehabilitation
Loan Program
Provides a combination of
technical and financial assistance to
help Salem’s low- to moderate-
income homeowners and landlords
make much needed improvements
to their properties.
$313,562.59 CDBG
(FY13 & carried
over)
$29,183 HOME
(FY13)
$87,803 CDBG funds spent
$112,536.15 HOME funds
spent
9 units improved (6 owners)
3 additional projects
underway (1 CDBG/2
HOME)
2 “Funding available” indicates the total funds available during the fiscal year, including FY 13 and prior year carried over funds+/-
any adjustments made during the year.
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Project Project Description Funding Available3 Status
Rental
Assistance
Programs
Rental Downpayment Assistance
Program - funds are used to help
low- and extremely low-income
Salem residents move into decent,
affordable rental units. Programs
are administered through NSCAP,
HAWC and the Salvation Army.
$120,991.70
(including $40,000
of FY13) in open
HOME Contracts
$69,001.42 in HOME funds
spent
62 families assisted thru
Rental Downpayment
Assistance Program
St. Joseph’s
Church
complex
redevelopment
Phase 1 consists of construction of
51 units of affordable rental
housing
$325,000 HOME $0 funds spent
Housing
Program
Delivery
Costs associated with providing
rehabilitation programs &
inspectional services.
$89,723.41 CDBG
(FY13)
$3,067 HOME
(FY13)
$67,298.41 in CDBG funds,
and $3,067 in HOME admin
funds for housing program
delivery and inspectional
services including lead
inspection, as well as a
HOME reimbursement of
$7,768.15 in soft costs.
Other Priority Housing Strategies
In addition to the projects listed above that were undertaken with CDBG and HOME program
funds, we also worked on the development of our other priority housing strategies listed in the
Consolidated Plan and the FY13 Action Plan. The following discusses the status of these projects
and the steps taken to achieve these strategies.
Producing New Housing Units
Salem consistently provides support toward the creation of new affordable housing units
through the conversion of old, abandoned or underutilized buildings and parcels into new
residential housing units. For example, the City has committed funding to develop affordable
housing units at the former St. Joseph’s Church site. The Boston Archdiocese’s Planning Office
for Urban Affairs (POUA) is the developer. The first phase of the proposed project is currently
underway and 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 will
consist of affordable rental units. The City has committed $325,000 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 were allocated for traffic and infrastructure
improvements to the adjacent intersection, which have recently been completed. These funds
were leveraged by and will benefit the St. Joseph’s Redevelopment.
3 “Funding available” indicates the total funds available during the fiscal year, including FY 13 and prior year carried over funds+/-
any adjustments made during the year.
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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.
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 w ith 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). When the affordability of two of these developments was in jeopardy,
the city took the following actions:
o In February 2003, the city reached an agreement that will keep Salem Heights’ 283
apartments rented at affordable rates for 100 years.
o The City negotiated with the owners and tenants of Loring Towers, a HUD 236 property
that the owner had proposed to convert to a Low Income Housing Ta x 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.
o In 2013, when their 121A agreements for Loring Towers and Salem Heights were expiring,
the City approved an extension of their agreeements in support of affordable housing.
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 maintaining a tracking list
of all pre-foreclosure, foreclosure and bank-owned properties in the city.
In order to education potential homebuyers, the City encourages first-time homebuyers to
complete a CHAPA-certified homebuyer education course and provides an additional $1000 in
First Time Homebuyer Downpayment Assistance Loan Program funds for those that do.
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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 years4.
YEAR 1-FAMILY CONDO ALL
2012 16 20 45
2011 12 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 u sed by
displaced families. The city monitors vacant, abandoned and problem properties through
collaborative efforts between the Health Inspector, Fire Chief, Building Inspector, City Solicitor
and Housing Coordinator and has mapped those properties in GIS. Abutters of bank-owned
properties are sent letters asking them to be observant and report problems.
The City’s First-Time Homebuyer Downpayment Assistance Loan Program is available to first-
time buyers who hope to take advantage of the lower price that they may get by purchasing a
foreclosed upon home. The City’s Housing Rehabilitation Loan Program is available to investors
who purchase foreclosed properties so that they can bring the property up to code and turn
them into affordable rental units.
An important part of the City’s recovery and revitalization efforts is helping to re-occupy and
repair foreclosed properties, 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
4 The Warren Group, “Foreclosure Stats”, www.thewarrengroup.com.
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Department of Housing and Urban Development. The following modernization work is
currently underway or in design at the following SHA developments:
$50,000 exterior door replacement at Bertram Terrace and Norton Terrace elderly
housing;
$40,000 water infiltration at the community room at Colonial Terrace elderly housing;
$997,000 window and door replacement at Pioneer Terrace elderly housing;
$111,000 door replacement at Bertram Terrace, Norton Terrace, and Bates Terrace;
$160,000.00 electrical improvement at Leefort Terrace, Bertram Terrace, Morency
Manor, and Garden Terrace;
$80,000.00 water conservation program of replacement of 200 toilets and 200
showerheads at various units; and
$27,000 paving at Leefort Terrace, 27 Charter Street Morency Manor/Dalton Building;
and 117 Congress Street
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.
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 Salem's history and neighborhood fabric, they also require a great deal of
maintenance and may not meet current building codes. In response to this issue, the city
administers a Housing Rehabilitation Loan Program (funded with both CDBG and HOME
funds) 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 sto ck,
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 June, 2007, the N. S. HOME Consortium voted to adopt the federal Energy Star Standards.
The implementation of this new policy for the use of HOME funds began in October, 2007. All
new HOME-assisted units are required to be certified as Energy Star compliant whenever either
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new construction is involved or where the rehabilitation of an existing structure involves the
gutting of the structure to the bare walls. Homeownersare also referred to NSCAP’s
weatherization program, where they can get energy-efficiency work undertaken, and then utilize
Salem’s loan program, thereby reducing the homeowner’s loan burden.
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 12.36 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.
Affirmatively Furthering Fair Housing
The North Shore HOME Consortium, through Western Economic Services, LLC, updated the
Analysis of Impediments to Fair Housing Choice (AI) in 2007-2008, of which the complete AI is
included by reference. The AI covers all communities in the NS HOME consortium, including the
City of Salem. As part of the research process, the consultant reviewed available data from the U.S.
Census Bureau, HMDA data and discrimination complaint logs. Furthermore, the consultant
conducted public forums and phone interviews of interested parties including, but not limited to:
service providers, real estate professionals, property managers, lenders, local officials and staff.
Many of the organizations contacted for interviews are located in Salem and/or operate in the city.
The City of Salem’s Affordable Housing Trust Fund Board provided a letter, dated January 8, 2008,
commenting on the Draft AI. The final AI did not identify any specific actions for Salem to
undertake in order to overcome the effects of any impediments identified through that analysis. It
did recommend that the Consortium consider taking the following actions:
1. Assist in improving awareness of fair housing law
2. Assist in improving understanding of available fair housing services
3. Assist in improving fair housing delivery system
4. To counteract high denial rates, consider implementing first-time homebuyer training
program targeted at particular types of consumers
5. Incorporate more formalized elements of fair housing planning in Consolidated Plan
6. To aid in expanding awareness of inclusive land use policies, the Consortium might wish to
consider extending fair housing training to the area’s boards and commissions, as well as public
and elected officials
7. Assist in alerting involved agencies to the prospects of their involvement in institutional
barriers that detract from affirmatively furthering fair housing or acting in the public interest of
furthering education of fair housing and the fair housing system.
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The City of Salem acknowledges its responsibility to consider and address its own unique
impediments to fair housing should the Consortium’s AI insufficiently address them. In general, the
City determined that the AI was thoroughly researched and inclusive of Salem’s fair housing
concerns. While the AI established findings and recommendations on a consortium-wide basis, the
consultant noted circumstances when a community’s statistics and demographics differed from the
others. For example, the racial and ethnic makeup of residents of the consortium cities differs from
that of the suburban communities. Following are findings pertinent to Salem:
Salem has high ethnic and minority concentrations in some neighborhoods.
Salem has a high proportion of lower-income households compared to other communities.
People living in Salem with disabilities are not concentrated in one area.
While mortgage denials are higher in some neighborhoods than others, Salem has
proportionately fewer residents who were denied mortgage loans than areas in other consortium
communities. (Note: While the trend holds, the number of sub-prime loans denied to Salem
residents was higher than loans from prime lenders.)
Salem has lower levels of homeownership than other consortium communities; this is
primarily due to the diversity of Salem’s housing stock.
The City has used the Consortium’s AI and its own experience to inform its approach to
affirmatively furthering fair housing. City staff are regularly informed about fair housing-related
issues and concerns through their interactions with the public and local organizations. While the
consultant identified various impediments to fair housing choice for the consortium as a whole, City
staff with their intimate knowledge and experience of the city’s dynamics and neighborhoods, and
through information gathered for the City’s 2005 and 2010 Five Year Consolidated Plans, has
determined that the following selected impediments, excerpted from the AI, are relevant to Salem:
1. Lack of awareness of fair housing rights;
2. Lack of awareness and understanding of available fair housing services;
4. High home mortgage loan denial rates for selected minorities;
5. Unlawful discrimination appears to be occurring in rental markets, particularly as it relates to
disability, familial status, and race or national origin;
7. The high concentrations of minority and disabled populations tends to support the notion
that housing location policies are not as inclusive as may be desired in affirmatively furthering
fair housing;
8. Recent case history shows that local housing authorities within the Consortium award
preference to individuals on subsidized housing waiting lists based upon local residency. This
may be viewed as an impediment to fair housing choice for individuals not residing within each
of these local communities who may wish to move to another community; furthermore, this
practice may contribute to a lack of demographic diversity within the Consortium’s thirty
communities.
Note: Establishing local preferences, including preferences for people who reside and/or work in a community,
is a common practice of housing authorities and is not specific to the City of Salem or the NS HOME
Consortium communities. This practice is acceptable to HUD.
The City of Salem acknowledges that affirmatively furthering fair housing is not limited to
addressing issues of income and housing affordability and therefore, the City’s actions to
affirmatively further fair housing are not limited to promoting affordable housing. The City of Salem
has worked and continues to work to address the impediments identified above (1, 2, 4, 5 and 7), by
carrying out the following activities:
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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. In May, 2012 the Housing Coordinator attended a HUD Fair Housing
Seminar held in Gloucester, as well as a LGBT HUD Equal Access to HUD Programs &
Cultural Competency: An Explanation of HUD’s Equal Access Rule workshop held in Boston
in September, 2012. The Housing Coordinator also attended two forums sponsored by the
Independent Living Center (September, 2012 - Affordable, Available Accessible Housing in
Salem and April, 2013 - Housing Right in Salem: Fair Housing Laws & Dealing
w/Discrimination), as well as HUD’s Fair Housing Accessibility First in Boston in May, 2013.
(These efforts work to address impediments 1 and 2.)
The City provides information to its residents, property owners and real estate professionals
regarding the fair housing law, including protected classes, individual rights and resources: In
January 2009, the DPCD created a separate page on the city’s website for Fair Housing and
Housing Discrimination. The page explains housing discrimination and fair housing laws and is
designed to assist consumers, real estate professionals and lenders. The page also lists resources
available to victims of discrimination. (These efforts work to address impediments 1 and 2.)
The City reaches out to potential victims of discrimination and persons who have limited
housing choice through its work with local housing and human service providers: The City of
Salem provides public service and housing assistance funding to agencies whose activities assist
specific populations with improving their quality of life. Provider assistance may include locating
appropriate and, if needed, accessible housing, as well as a range of human services. Providers
regularly interact with minority, disabled and low-income populations. These interactions
present opportunities for providers to understand their clients’ housing concerns and to assist
them in cases of discrimination. Therefore, it is critical that providers understand the fair
housing laws and available resources for addressing fair housing issues. To this end, the City’s
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.
In, March, 2013, the City of Salem hosted an Abandoned Housing Initiative Receivership
Training Seminar with the Massachusetts Attorney General’s Office in order for municipalities
12
to partner and learn about how to help revitalize properties threatened by foreclosure and/or in
need of rehabilitation, reverse the ill effects of the foreclosure crisis and keep our neighborhoods
safe and secure.
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 housing 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, one in FY11 and one in
FY12. Staff presented at two in FY13, including one at the Salem Council on Aging and one at
a First Time Homebuyer Certification Course hosted by the North Shore CDC, Home Buying
Mentors the Allston Brighton CDC. (These efforts work to address impediments 1, 2, 4 and 7.)
The City creates partnerships with local organizations to educate minority and low-income
homebuyers about their rights under the fair housing law: The City provides financial assistance
to Community Teamwork, Inc., a nonprofit organization that conducts CHAPA-certified, first
time homebuyer educational courses. These courses are held primarily in the Point
Neighborhood, where Salem has its highest concentration of racial and ethnic minorities.
Among other things, courses inform participants about their rights when working with real
estate agents and lenders. The program covers fair housing issues and what to do if someone is a
victim of discrimination. In addition, the program covers the responsibilities of landlords under
fair housing laws. Most recently, Community Teamwork has conducted training sessions in
March 2012 and June, 2012. City housing staff gave presentations during a class for both of
these training sessions. These efforts work to address impediments 1, 2 and 4.)
The City of Salem has also examined issues pertaining to fair housing directly through its
consolidated planning processes in 2005 and 2010. During this planning, the City held a series of
public meetings and interviews with neighborhood groups, service providers, business associations
and housing professionals. Participants were asked to comment on fair housi ng and discrimination
in the city. Perhaps surprisingly, these discussions did not point to any particularly unique
impediments to fair housing.
In addition, we have reviewed the following possible impediments and provide our perspective on
them as follows:
Whether subsidized and affordable housing is concentrated in minority areas - Salem has one of the
largest inventories of subsidized and affordable housing in the consortium. Salem’s subsidized
13
and affordable housing is located citywide, including in some of Salem’s areas of minority
concentration (see “Subsidized Housing Inventory” map located in Salem’s 2010 Consolidated
Plan). The City does not conclude that its subsidized and affordable housing is
disproportionately located in areas of minority concentration to a degree that presents an
impediment to fair housing choice.
Lending, mortgage availability, and foreclosure issues affecting minority homebuyers - Salem property
owners have been greatly affected by the downturn in the housing market and the prevalence of
foreclosures. Foreclosures have occurred citywide (see map “Mortgage Foreclosures” located in
Salem’s 2010 Consolidated Plan). It is clear from this map that as of January 2010, foreclosures
are not concentrated in areas of minority concentration. The NS HOME Consortium analyzed
the level of mortgage denial in each of its communities by block group. While denial rates were
higher in Salem’s minority block groups, they were within the overall average of all loan denials
in all consortium communities, and therefore we cannot conclude this to be an impediment at
this time.
Neighborhood objections and zoning restrictions limiting the availability of supportive housing for persons
with disabilities - As part of its 2010 Consolidated Planning process, Salem reviewed its zoning
bylaw to identify barriers to affordable housing. This review determined that as the city is
nearing build-out, it is essential to preserve existing affordable units and encourage high density
and affordable housing in appropriate areas. Salem has not experienced neighborhood objection
and zoning practices that limit development of supportive housing for persons with disabilities,
specifically.
Availability of accessible housing units for disabled persons - Salem is one of the region’s providers of
services for persons with disabilities and, as one of the region’s suppliers of subsidized housing
also is a provider of its affordable, accessible housing. While the consortium’s AI notes that
Salem does not have a disproportionate share of persons with disabilities living in the city, there
are concentrations in some neighborhoods. The City acknowledges the need to examine, on an
ongoing basis, whether accessible alternatives are sufficiently available to meet demand. In
addition, priority on the Salem’s Housing Rehabilitation Loan Program wait list is given to
persons who need home modifications to accommodate accessibility needs.
Issues affecting persons with limited English proficiency (LEP issues) - Given the ethnic diversity in
Salem, the City continually works to face the challenge of how to serve its non-English speaking
residents. In FY12, the City of Salem added Google Translate to all pages on the City website.
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 provide translated information in their marketing
materials into a language that best serves the needs of their clientele. Most providers translate
materials into Spanish, Portuguese or Russian. These service providers were also provided with
the information on Google Translate, for which several have already included it on their
websites. Furthermore, two DPCD employees (our Housing Coordinator and our Economic
Development Planner) are bilingual (Spanish/English). This not only helps break la nguage
barriers, but also helps with cultural barriers.
Willingness of landlords to rent to families with children - The consortium’s AI identifies
discrimination in rental housing as one of the impediments to fair housing in the region. Salem’s
housing stock is old and lead paint is prevalent. This presents a concern to landlords who may
otherwise rent units to families with children. One of the ways the City of Salem works to
address this is by operating a deleading assistance program that offers financial assistance to
property owners to remove lead paint from their properties.
14
The City acknowledges that given the ethnic and racial composition of its population, age of housing
stock and prevalence of renter housing, it must examine the potential for housing discrimination and
submit any known AI issues exclusive to Salem during the development of the next Consortium AI,
as well as the actions it is undertaking to address them. Salem will also continue to work with the
Consortium to identify and address fair housing issues and impediments both for the city and the
region. We will continue to monitor our programs and look for new ways to further fair housing.
Continuum of Care/Homelessness
During FY13, the city continued to support local agencies that provide direct assistance to homeless
families and individuals in Salem, such as Lifebridge (formerly the Salem Mission) and HAWC, and
to agencies that help households avoid homelessness. Agencies funded and their accomplishments
are provided in the Public Services Section of this report, where it indicates that 45 households (104
persons) avoided homelessness through city-funded Homeless Prevention and Transitional Housing
Programs.
Through Lifebridge, a 34-bed shelter for men and women, the City funds a part-time Downtown
Street Outreach Worker that helps connect homeless individuals with needed services. As a
requirement of these grant funds, representatives of Lifebridge meet with DCPD staff, the Salem
Police Community Impact Unit, downtown business representatives and other interested parties
three times per year in a public meeting to discuss program progress. CDBG also funds nursing
services at Lifebridge in order to provide health assessments, flu and TB shots and other medical
services.
HAWC reports that a comprehensive national released in 2005 found that one out of every four
homeless women is homeless because of violence committed against her. HAWC provides services
to victims of domestic abuse and their children, including a children’s program in the HAWC shelter
and homeless prevention program both funded through CDBG. They also received HOME funds
from Salem toward Tenant Based Rental Assistance and funds for rental downpayments to move
into decent, affordable housing.
The city also continues to be a member of the local Continuum of Care Alliance administered by the
North Shore HOME Consortium. An overview of the activities of the Alliance can be found in the
CAPER submitted by the North Shore HOME Consortium (through the City of Peabody).
Evaluation of Goals
This year, we did not meet our estimate to assist 4 households to purchase their first home; only 3
income-eligible families applied for First Time Homebuyer Loan funds, entered into purchase and
sale agreements and received primary mortgages. This is due to the housing market and the fact that
it is still difficult to obtain financing, rather than a reflection on the program itself.
The Housing Rehabilitation Loan Program continues to assist families in need and to exceed the
goals laid out in the Consolidated Plan. In FY13, we exceeded our Action Plan goal of rehabilitating
4 housing units. There were 9 units where improvements were completed. In addition, there are 3
more projects currently underway.
The Rental Downpayment Assistance Program is administered through local social service agencies
to provide grants to low- and extremely low-income Salem residents to help pay first and last
month’s rents and security deposits to enable them to obtain decent, affordable housing. The FY13
15
Action Plan projected that up to 39 households would be assisted; 62 families were assisted through
contracts with North Shore Community Action Program, Inc., greatly exceeding out goal.
Finally, we continue to place importance on the ongoing review and update of our program policies
and guidelines, training staff and marketing our programs. All program materials are available on the
city’s website. The Housing Coordinator periodically participates in available, applicable trainings or
webinars (i.e. October, 2012 webinar: Using the Income Calculator to Determine Annual Income).
The Housing Coordinator conducted a presentation at the Salem Council on Aging in February,
2013 to inform senior homeowners of the City’s housing programs.
16
Wellspring House’s MediClerk Program Students
PUBLIC SERVICES
The Consolidated Plan
identified the need for
various social service
programs that primarily
benefit Salem’s low- to
moderate-income
population and those with
special needs (such as
physically or mentally
disabled, elderly or frail
elderly, youth, non-
English speaking
residents, persons living
with HIV/AIDS, substance abusers and homeless persons and families). In FY13, our priority goals
were to continue to support a broad range of social service programs that are consistent with the
needs and goals identified in the Consolidated Plan and the FY13 Action Plan.
According to HUD regulations, we are allowed to commit up to 15 percent of our CDBG allocation
to public service activities. In FY13, as in past years, our agencies expended just under that limit.
These public service activities provide direct benefit to our low- and moderate-income residents;
therefore it is important to continue funding at this level.
Public service projects funded during FY13 were selected using a Request for Proposals (RFP)
process. The Citizen Advisory Committee reviewed all applications received, using criteria that
included project eligibility and documented need for services. Recommendations on funding levels
were provided to the Mayor following this review.
In FY13, we were able to expend $161,265.52 on 31 open public service contracts, which, in turn,
assisted 9,201 people, including at least 898 children/youth and 2668 seniors (see Table 2 for Active
Projects).
Table2: FY13 Public Services Financial Summary
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted Program Impact
Bentley Elementary School
After School Program $5,000.00 $5,000.00 127 youth
Each child participated in at least one of
the following classes: girls leadership,
yoga, social club, hip hop, boys
basketball, girls basketball, math camp,
readers theater or walking club.
Boys & Girls Club
Gang Prevention $4,800.00 $4,800.00 297 youth
An average of 144 members attended
Power Hour at least three times per week
for homework help during the months of
October, November and December.
Over 4125 visits were made by 297
individuals between October and
December, 2012 for homework help for
children ages 5 to 12.
Haven From Hunger
Food Pantry $9,800.00 $9,800.00 530 persons
Provided food to 274 families through
approximately 1099 visits to the food
pantry over 4 months.
17
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted Program Impact
East Gate Fellowship: Joseph’s
Storehouse $9,800.00 $9,800.00 2468
persons
Provided a food pantry to 1150
households for up to twice per month.
As a result, more than 6300 visits were
made to the pantry by low and very low
income Salem residents, thereby allowing
them to stretch their household monties
and still have nutritious food.
Salem Community Child Care $9,800.00 $9,800.00 14 youth
Provided child care for 130 days which
also helped prepare the children for first
grade. Enrichment activities are provided
and children are assisted with completing
homework.
North Shore CDC
Community English Program $4,800 $4,800.00 77 persons
Provided three 12-week sessions of
English language classes. Each student
partipated in 6 horus a week of language
instruction.
H.A.W.C.
Children’s Program $9,800.00 $9,800.00 25 persons
Provided over 80 hours of classes and
groups for the adults and/or children -
art therapy play group two times per
week, parenting group one time per week
and domestic violence group one time per
week.
H.A.W.C.
Homeless Prevention Program $6,500 $0 -
Lifebridge
Medical Support Services
$1,852.75
FY12;
$8,000.00
FY13
$9,852.75 416 persons
Provided health assessments including
respiratory, blood sugar, psyche, physical,
referrals to detox, PC physicians and
hospital. Additionally, clients received flu
and TB shots.
Lifebridge
Outreach Street Advocate
$3,306.20
FY12 $3,306.20 44 persons
Connected homeless individuals with
shelter services (food, shower, laundry),
medical services, assist in applications for
social security, overnight shelter,
admittance to facility (medical, mental
health, detox) or employment assistance.
Salem Police Department
Bicycle and Walk/Ride Patrols
$1,571.67
FY11; $7,500
FY12; $7,300
FY13
$7,274.85 3,918
persons
Drug offenses saw a decrease of 18% and
total assaults saw a 3% decrease. Total
calls were up 122% (drunk individuals,
public drinking, disorderly conduct,
disturbances, loitering and noise
ordinance violations).
Catholic Charities
Homeless Prevention Program $9,800.00 $9,800.00 32 persons
16 families avoided homelessness with
emergency rent assistance . They also
assisted 11 persons with this program
with other non-CDBG funding. All
families received extensive information
and referral services and budget
counseling.
Catholic Charities
Little Lambs Program $2,300.00 $2,000.00 137 youth
Assisted 40 families with referrals to
GED/Education or Employment
training, child care, health, housing, basic
needs and counselling and to provide
diapers and wipes.
Salvation Army
Homeless Prevention $9,800.00 $346.00 2 persons Assisted 1 family with homelessness
prevention (rent arrearage).
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Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted Program Impact
Cerebral Palsy Association
North Shore Infant & Toddler
Preschool Program
$4,800.00 $4,800.00 53 children
For children with physical and
developmental disabilities to attend
integrated developmental play groups
once per week. Of the total, 23 children
have aged out of the and transitioned to
local daycares, preschools, Head Start or
Salem Public Schools. the remaining
continue to atend weekly todder groups
until they turn 3 years of age.
Morgan Memorial Goodwill
Industries
Career Planning Program
$210.96
FY12;
3,600.00
FY13
$3,410.96 5 disabled
youth
Provided 34hours of classroom training.
All students completed a Skills Interest
Inventory, Work Readiness Inventory,
Money Skills Assessment and an
Individual Training and Employment
Plan. Students filled out at least one job
application, did on-line job searching and
completed job groups that covered such
topics as interviewing skills, on the job
interactions, dressing for an interview and
mock interviewing. Stop and Shop
traiing and hands-on skills assessment
were also performed. They watched
videos on First Job Survival Skills,
surviving the first 90 days. 3 students
participated in internships which included
the Salem YMCA, North Shore Medical
Center and the Hawthorne Hotel. 1
student is employed at the Howling Wolf
restaurant working 2 days per week. 2
students will continue working their
internships over summer vacation.
Salem Access Television
Youth in Action $4,800.00 $4,800.00 13 youth
To completed a minimum 36 hour
training course to learn television, field
and studio production, scripting and
storyboarding. Youth received a
certificate of course completion and
completed a video that was broadcast on
SATV. Programs produced related to
their life experiences
V.O.C.E.S.
Hispanic Education Program $4,800.00 $4,800.00 123 persons
Provided 187 classes in either Citizenship
Education or GED Preparation. This
year there were 26 new citizens and 11
persons got their GED in Spanish.
Independent Living Center
Accessible Housing Education
Services Program
$4,800.00 $4,800.00
52 disabled
persons/
households
Provided two housing forums - one on
availability of housing and one on
housing rights. An additional housing
workshop was conducted at Lifebridge.
In house information and referral resulted
in 5 placements/relocations to accessible
housing. They assisted more than 31
consumers to compelte an d submit
subsidized housing applications (including
Section 8 and other Housing Authority
applications). Monthly universal housing
application assistance workshops were
typically ehld once per month.
19
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted Program Impact
North Shore Community Action
Program
Salem Cyberspace Cyberyouth
$4,800.00 $4,800.00 62 youth
Met with high school students at least 3
hours per week, and colelge freshman at
least 2 hours per month and college
sophomores at least 1 hour per month.
15 applications were submitted to
colleges/universities, 21 applications for
college financial aid were submitted and 7
college entrance exams were completed.
Catholic Charities
Homeless Prevention Program $9,800.00 $9,800.00 32 persons
16 families avoided homelessness with
emergency rent assistance . They also
assisted 11 persons with this program
with other non-CDBG funding. All
families received extensive information
and referral services and budget
counseling.
Salem YMCA
School Age Child Care Program
$800.00
FY12;
$12,236 FY13
$13,036.00 190 youth
Provided a minimum of 16 weeks of child
care, which included educational and
enrichment activities. Nutritious snack,
gym and homework help offered daily.
Curriculum inclued the solar system,
animals, rainforest, photograph and going
green (environment & biology),
enrichment activities, swimming and field
trips.A small amount of funds were used
for field trips and Y memberships.
Salem Council on Aging
Project Lifesaver
$242.02
FY11;
$1,000.00
FY13
$768.99 2 person Purchase of electronic bracelets,
enrollment, and/or annual fee.
Salem Council on Aging
Transportation Program
$7,913.93
FY12;
$12,750.00
FY13
$15,482.27 266 seniors
Provide transportation to to Council on
Aging (2214), medical (1307), shopping
(896), YMCA (159), downtown (55), bank
(19), Salem Housing Authority (6),
hairdresser (75) and events/activities (10).
NSCAP
Homeless Prevention Program $9,800.00 $9,800.00 70 persons
Assisted 28 families in the prevention of
homelessness through rental or utility
assistance. 15 families received assistance
to maintain utilities and 13 families
received assistance for rental arrearages.
North Shore Moving Market $4,800.00 $4,800.00 270 persons
Over 720 deliveries were made to at least
130 households (253 persons) over six
months.
Wellspring House
MediClerk Program $4,100 $3,587.50 8 persons
13 week training courses. 6 of the 8
students graduated from the program.
Four are currently working - one in a law
firm and three at the North Shore
Medical Center.
TOTAL PERSONS ASSISTED 9,201 persons,
including at least 898 children/youth &266 seniors
Evaluation of Goals
As stated before, Public Service activities allow us to provide direct services to our low - and
moderate-income residents. Our FY13 Action Plan goal was to provide 25 new grants and serve an
estimated 10,000 persons. We executed agreements for 25 new grants. Through these new grants
20
and carried over open contracts, we assisted 9,201 persons. We are fortunate to have an excellent
network of public service providers that utilize our funds to best meet community needs, which is
why we continue to spend up to the full HUD funding cap of 15 percent.
Youth from the Boys & Girls Club of Greater Salem
in the studio for Salem Acess TV’s Youth in Action Program
21
An CDBG loan helpted
the Bioengineering Group
expanded their business
ECONOMIC DEVELOPMENT
The City of Salem is committed to continuing efforts to stimulate
our local economy and, as a result, has seen a surge of
redevelopment in the past few years. This new development has
lead to a revitalization of our business districts and to increases in
the number of businesses providing needed services to our
residents.
During FY 13, several new businesses opened in the Urban
Renewal Area bringing new goods and services to the
neighborhood. While there continues to be solid private sector
investment, businesses are continuing to adjust to the economy,
the change in people’s purchasing habits, and increased
competition. Salem has not been immune from the economic
crisis and the resulting job losses. The Salem unemployment rate
as of June 2012 is 7.5 percent5.
Salem continues to focus on economic development in order to
bring new employers and new jobs to the city, while retaining
jobs by helping existing businesses improve their commercial infrastructure or expand their
operations. The increased development is bringing vitality to the downtown, providing goods and
services locally, and improving and stabilizing neighborhood business districts in the process.
Improved vitality in our neighborhood and downtown commercial districts also has the residual
effect of improving public safety.
The City of Salem is dedicated to economic development through efforts to revitalize the downtown
and neighborhood commercial districts, improve exterior building façades, and assist local business
owners. Our economic development funds are used to fund the Business Loan Program, Storefront
Improvement Program and Technical Assistance Programs.
Business Loan Program
The Business Loan Program is designed to encourage all types of entrepreneurs to locate in the City,
create jobs, and revitalize the area through rehabilitation to their buildings. There are three types of
loans:
Microenterprise Assistance – provides loans to low- to moderate-income entrepreneurs to assist
with their microenterprise business (5 or fewer full-time employees, including the owner);
Commercial Revitalization – provides loans to business owners in the downtown and eligible
neighborhood districts to assist with the exterior rehabilitation of their building and/or to
correct code violations; and
Special Economic Development – provides loans to business owners throughout the city in exchange
for job creation for low- and moderate-income people.
Storefront Improvement Program
The Storefront Improvement Program is designed to encourage private investment and
reinvestment by new and existing property/business owners in the eligible neighborhood and
5 Massachusetts Executive Office of Labor and Workeforce Development, Department of Unemployment Assistance
22
downtown commercial districts. The program provides design assistance and offers a one-to-one
financial match for façade improvements of up to $5,000 per storefront and funding for
professional design assistance.
Technical Assistance Programs
Often small business owners need some degree of technical assistance to help them with managing
or growing their business. The needs of local entrepreneurs range from business planning, drawing
up financial statements, or navigating the city permitting process. The city works in collaboration
with several agencies to improve economic opportunity in Salem by providing technical assistance to
businesses.
Table 3: FY13 Economic Development Financial Summary
Program Description
CDBG
Funding
Available
Status
Storefront Improvement
Program
Provides design assistance and/or
matching funding up to $5,000 to
business owners wishing to improve
the exterior façade of their business.
$23,650.84 $5,014.97 CDBG spent
1 Storefront completed
Business Loan Program
Provides three types of loans that
fund commercial rehabilitation, job
creation or retention and/or micro-
enterprise assistance to make our
commercial areas vibrant.
$49,980.00
$12,000.00 CDBG
spent
1 businesses assisted
Business
Technical
Assistance
Salem Main
Streets
Program
Provides commercial district
revitalization through organization,
promotion, economic restructuring
and design.
$25,000.00
$25,000 CDBG spent
Assisted one business
resulting in 10 full
time jobs
Assisted 22 micro-
enterprises
Economic
Development
Program
Delivery
Costs associated with providing
Economic Development programs
and administration of the Salem
Redevelopment Authority.
$60,000.00 $48,616.47 CDBG
spent
Evaluation of Goals
In FY13, with our Small Business Financial Assistance Programs, we met our Action Plan goal to
assist two businesses - one storefront improvement and one business loan. The business loan will
be monitored in FY14 for job creation.
The Salem Main Streets Program provided technical assistance to 22 new or existing micro-
enterprise businesses, exceeding our FY13 Action Plan goal of assisting 20 microenterprises. Events
included the Ice Cream Bowl, Farmer's Market, Mayor's Night Out (2), Salem Maritime Festival,
Enterprise Center workshop on Volunteers & Fundraising, First Friday Initiative, Salem Winter
Farmer's Market, Volunteer Appreciation Event, Haunted Happenings, Salem So Sweet Festival,
Salem Film Festival, Salem Poetry Festival, Living Green Fair and the Salem Arts Festival. They also
participated in the Mass In Motion Committee and Destination Salem Marketing Committee, and
assisted with training and orientation of a special city workers program. Total volunteer hours were
2155.
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The DPCD also provides technical assistance through our E conomic Development Manager, who
administers the City’s financial assistance programs and provides administration to the Salem
Redevelopment Authority, which oversees the Urban Renewal Area.
In total, $90,631.44 in CDBG funds was spent during the program period for economic
development activities.
During FY13, the most significant redevelopment project was the second phase of improvements
made to the City’s Essex Street Pedestrian Mall, which included the removal and replacement of
trees, removal of planting beds, removal of cobblestone areas and replacement with brick, and
resetting of cobblestones for improved drainage. This was funded through the City’s excess snow
removal funds.
During FY13, the DPCD continued to collaborate with the Enterprise Center at Salem State
University and the Small Business Development Center to provide technical assistance to
entrepreneurs. The DPCD collaborated with the Salem Chamber of Commerce on several
economic development topics including downtown transportation, business recruitment, and the
development of a database of property owners throughout Salem.
During FY13 the DPCD worked with other City departments to implement final changes to the
parking system. These changes had been approved by the City Council in FY 11 based on
recommendations from the comprehensive parking study.
Lastly, in June 2012, the City received a $25,000 grant from the National Endowment for the Arts to
develop a public art master plan (the City is providing a match of $5,000). In FY13, the City worked
with consultants, a working group, and the public to produce the plan, which is in the final stages of
completion. The plan outlines the governance of existing public art initiatives such as “ArtBox,”
which allows artists to paint City owned utility boxes; the temporary installment of sculptures in the
Downtown area; as well as potential future public art initiatives, including the formation of a City
Public Art Commission.
Table 4: Active Economic Development Loans in FY13
Type of Loan Project Amount of
Loan Total Jobs Created
Microenterprise
Assistance
Special Economic
Development
Village Tavern $50,000 3 full time & 200 weekly
hours of part time
Bioengineering/River Wharf Realty $12,000 To be monitored in FY14
Note: LMI is low- and moderate-income
24
Harbor and Lafayette Streets Improvements
NEIGHBORHOOD IMPROVEMENTS
The City of Salem is committed to undertaking the
infrastructure and public facility improvements we all
depend on to make our city the livable community
that it is. By continually investing in neighborhoods,
Salem aspires to be the best place it can be for people
to live and work.
Due to the size and scope of these types of activities,
some require multi-year funding, as well as a few
years to plan, permit and complete the project. To
that end, some of our Neighborhood Improvement
Projects are still in the planning, permitting or
bidding stages. The following table outlines the
current neighborhood improvement projects and their status at the close of FY13. Neighborhood
Improvement Projects can only take place in those areas eligible for CDBG funding (see Appendix
for map); therefore all the projects listed are designated for these target neighborhoods.
Table 5: FY13 Neighborhood Improvement Financial Summary
Activity CDBG Funds
Available
CDBG Funds
Spent in FY12 Status
Harbor and Lafayette Streets Pedestrian
Improvements (PWED) $378,986.43 $378,986.43 Complete
Derby Street Wheel Chair Ramps $4,372.00 $4,372.00 Complete
Neighborhood History Signs - Point
Neighborhood & South Salem $4,193.07 $4,193.07 Complete
South River Harbor Walk $256.65 $256.65 Complete
Teen Resource Center $78,130.94 $57,468.04 Underway
Splaine Park improvements $22,492.95 $5,149.63 Underway
Palmer Cove Park Improvements $18,552.05 $17,760.05 Underway
Bike Lane Delineation in LMI Areas -
Lafayette St. $16,363.61 $220.81 Underway
Tree Planting Program $24,994.01 $20,991.50 Ongoing
Section 108 Loan Payments – South
Harbor Garage $39,462.50 $39,462.50 Ongoing
Street Improvements (i.e. sidewalks,
curbcuts, paving & crosswalks) $155,607.54 $0.00 Ongoing
NSCDC Acquisitionof 15 Ward St. $23,000.00 $0 Planning
South River Harbor Walk (extension) $13,770.27 $90.72 Planning
Lafayette Park Improvements $82,665.53 $0 Planning
Pedestrian Mall Improvemetns $50,000.00 $0.00 Planning
Evaluation of Goals
During the program period, we continued to work on important neighborhood projects, and spent a
total of $528,951.40, including program delivery costs, toward meeting the goals in the FY13 Action
Plan and 5 year Consolidated Plan. This is the first time in recent years that Neighborhood
Improvements spending has exceeded all other spending categories. A significant portion of these
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expenditures went toward the Harbor and Lafayette Streets Pedestrian Improvements, which was
funded with $1,000,000 in MassDOT Public Works Economic Development (PWED) grant funds
and required that the City provide matching funds.
Also completed during FY13, was the installation of wheel chair ramps on Derby Street and a
history sign panel in the Point Neighborhood, as well as the final touches on the South River
Harbor Walk. Trees were planted on Raymond Ave., Loring Ave., Forest Ave., Gardner St., Cedar
St., Cherry St., cypress Street, Lyme Street, Canal St., Washington St., Margin St., and Jefferson
Avenue. The Teen Resource Center expansion, Splaine Park improvements, Palmer Cove Park
improvements and bike lane striping on Lafayette Street are all underway. We continue to make
principal and interest payments on the South Harbor Garage Section 108 loan.
There were no street and sidewalks undertaken this year. The funds will be carried over to FY14.
Funds for North Shore CDC’s acqusition of 15 Ward Street for a public open space, S outh River
Harbor Walk extenstion, Lafayette Park Imrpovements and Pedestrian Mall Improvements, all in the
planning stage, will also be carried over to FY14.
.
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PLANNING & ADMINISTRATION
In the Consolidated Plan, our priority goals are to
provide for the administrative costs associated with
the management of the Salem Community
Development Block Grant program and to develop
the planning resources and documents necessary to
undertake program activities.
During FY13, we provided matching funds toward a
Massachusetts Historical Commission Survey and
Planning Grant to design neighborhood history sign
panels for 13 neighborhoods. Funds were also used
to prepare a nomination to the National Register of
Historic Places for the fire station on North Street.
Funds are also set aside for a Survey and Planning
Grant for the nomination of Greenlawn Cemetery to
the National Register of Historic Places.
In FY13, we spent a total of $211,357.72 in Planning and Administration for planning studies
completed in the fiscal year and administration expenses necessary to carry out our programs. As
stated previously, we were able to remain under the administrative spending cap of 20 percent.
Table 7: FY13 Planning & Administration Financial Summary
Activity CDBG Funds
Available
CDBG Funds
Spent
Survey & Planning Grant – Design of
Neighborhood History Signs $11,500.00 $11,500.00
142 North Street National Register Nomination $2,000.00 $2,000.00
General Administration - Salary $139,559.52 $139,559.52
Survey & Planning Grant – Greenlawn Cemetery $4,000.00 $0
General Administration - Benefits $49,697.61 $49,697.61
General Administration - Non-salary $8,600.59 $8,600.59
National Register of Historic Places
Certificate for the North Street Fire Station
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OTHER ACTIONS
Barriers to Affordable Housing
The Five Year Consolidated Plan outlines several barriers to housing affordability in Salem: a
shortage of land, the lack of regulatory tools to require or encourage affordable housing in new
developments, the lack of resources to preserve existing affordable units, an economy imbalanced by
lower-wage jobs, and local government’s dependence on the property tax to finance City services.
Like other communities, Salem is not in control of all of these barriers and as a result, its ability to
solve them is constrained by financial resources and legal requirements. However, through its efforts
to preserve and increase the supply of affordable housing through its Housing Rehabilitation Loan
Program, First-Time Homebuyer Downpayment Assistance Loan Program and Affordable
Development Programs the City is able to address some of these barriers. And although Salem is
above the threshold of 10 percent affordable housing, the City had entertained and approved a
friendly Chapter 40B Comprehensive Permit for the redevelopment of the former St. Joseph's
church site. The existing zoning was a barrier to affordable housing. 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 has created new obstacles to developing and
purchasing affordable housing.
Lead-Based Paint Hazard Reduction
The Salem Board of Health disseminates information regarding the proper disclosure of lead
hazards upon selling or renting a housing unit and inspects rental units for lead paint hazards. In
Salem, a landlord is required to obtain a Certificate of Fitness inspection when an apartment
becomes vacant. Board of Health personnel conduct this inspection enforcing the State Sanitary
Code for Housing. When the information is sent to the landlord prior to this inspection, a letter
describing the Federal law is included, as is a copy of the Tenant Notification Form in English and
Spanish. Also, the Board of Health periodically sends notification of regulations regarding lead-
based paint to area realtors. In addition, Board of Health personnel are trained Lead Determinators.
Should the Board receive a call from a tenant who is concerned that there may be lead-based paint
in his/her apartment, potentially affecting their children under six years of age, the Board is able to
send out a Sanitarian to conduct a Lead Determination. If lead paint is detected, an order is sent to
the landlord requiring compliance with the State Lead Law. The Board ensures compliance with the
order. The State Lead Program is notified of the results of all Lead Determinations.
In cooperation with the State of Massachusetts and other municipal departments, the City of Salem,
through its DPCD, works to decrease the number of housing units containing lead-based paint
hazards. The City, through the DPCD, actively works to reduce lead-paint hazards in pre-1978
housing occupied by lower-income households through the City of Salem’s Housing Rehabilitation
Loan Program. Through the Salem Housing Rehabilitation Loan and Get the Lead Out Programs,
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the City provides loan funds for qualified applicants for lead testing, hazard reduction and
abatement activities, and temporary relocation reimbursements. Lead-based paint hazard control
measures are consistent with the federal Title X requirements and State lead based paint regulations.
MassHousing’s Get the Lead Out Program is also available to homeowners with a lead poisoned
child.
Finally, all participants in the First-Time Homebuyer Downpayment Assistance Loan Program are
given a copy of the EPA brochure Protecting your Family from Lead in Your Home.
Anti-Poverty Strategy
This Anti-Poverty Strategy describes programs and policies the City is supporting in its efforts to
reduce the number of households living below the poverty level. Some public service agency
representatives state that Salem residents in poverty stay in poverty because they lack adequate skills
for better employment opportunities. As a result, they work multiple jobs to pay for housing,
utilities, transportation expenses, and childcare. Providing adequate job training and educational
opportunities will enable them to enter the workforce at a more competitive level.
Salem uses CDBG and other funds to pursue an anti-poverty strategy carried out by the City and a
variety of social service subrecipients. The City’s anti-poverty strategy is comprehensive and it
consists of four components: education, job training and employment resources, affordable housing
and social services. Each of these components are described at length in the 5-Year Consolidated
Plan.
Managing the Process and Institutional Structure
The DPCD administers the City of Salem’s Community Development Program as well as the
formula funding received by the North Shore HOME Consortium for which the City of Peabody is
the lead agency. Under the direction of the Director of Planning and Community Development, the
Assistant Community Development Director manages and monitors Salem’s community
development programs.
Salem’s housing programs are administered by the DPCD Housing Coordinator under the direction
of the Director of Planning and Community Development. In addition, local non-profit agencies,
CHDOs and CDCs administer certain housing activities. Many housing activities leverage funds
through private lender financing.
City departments undertake certain CDBG-funded activities, such as the tree planting program,
sidewalk replacement, park improvements, street paving and curbcut installation. These departments
may subcontract work under public bidding procedures and provide requests for reimbursement and
any required documentation (i.e. prevailing wage documentation) to the DPCD.
Each year the City of Salem issues a Request for Proposals to nonprofit organizations that offer
social service, housing or economic development programs. CDBG funds are awarded to
organizations that demonstrate programmatic needs and the capacity to administer the proposed
program. The city’s Assistant Community Development Director coordinates the management of
the public service and housing subcontracts and the Economic Development Planner coordinates
the management of the economic development subcontracts.
In general, DPCD staff carries out the remaining activities, including the hiring of consultants or
other private businesses through established municipal purchasing procedures.
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The city’s auditing firm audits Salem’s CDBG program delivery system annually. In addition, HUD
staff conducts periodic reviews and monitorings. The City promptly implements recommendations
arising as a result of these reviews. The DPCD continuously works to improve upon its methods
and procedures for the administration of its programs.
Coordination with Other Organizations
Salem Housing Authority:U Although, the city does not currently use its CDBG funds to assist the
Salem Housing Authority, the DPCD coordinates with the Salem Housing Authority to address the
housing needs of Salem’s lower-income residents. While developing its Consolidated Plan, the city
consulted with the SHA to determine the agency’s most pressing needs. In addition, SHA’s
Comprehensive Plan must take into account the findings of the Consolidated Plan and the City of
Salem must certify that the documents are consistent.
The 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.
UOther Organizations:U In addition to the SHA, the City of Salem works cooperatively with private
housing providers and private and governmental health, mental health, and service agencies and
other interested parties to implement its Consolidated Plan. To this end, the city administers Salem
H.O.P.E. (Human Organization Partnership Effort), a networking group of human service agencies
that serve Salem residents. It is a free forum for agencies to learn about the services being provided
by other agencies in order to fill in gaps, coordinate efforts and avoid the duplication of services. All
human service agency representatives are invited to attend the quarterly Steering Committee
breakfast meetings held at rotating agency locations. Through this program, agency representatives
are introduced to each other and exchange information, announcements and updates. The strength
in the delivery system of nonprofit services is in the networking, collaboration and coordination
among the agencies. DPCD is responsible for the organization and administration of this effort.
The city also works with nonprofit agencies to administer social service activities. Agencies are urged
to apply to the city for CDBG public services funding to undertake priority programs outlined in the
Consolidated Plan. Additionally, the City of Salem cooperates and coordinates with other public
agencies (and funding sources) to undertake specific activities. Examples include MHFA’s Get the
Lead Out Program and Mass Housing Partnership’s Soft Second Mortgage Program.
The City of Salem works with the City of Peabody, the lead community for the North Shore HOME
Consortium, to coordinate the implementation of its HOME-funded program. Salem also works
with local CHDOs and CDCs to carry out priority activities.
The City of Salem will continue its efforts to coordinate and communicate with other municipal
departments, local and regional agencies, and public and private housing organizations over the next
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year. The DPCD will maintain responsibility for coordinating the Salem H.O.P.E. effort and will
communicate regularly with subcontracted agencies delivering social services and subrecipients of
federal funds. We will continue to work with the Salem Housing Authority (SHA), nonprofit
organizations, and housing developers to produce affordable housing in the City. The strength of
these relationships is beneficial in streamlining housing development and leveraging additional funds
for projects.
Monitoring
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 the Five Year Consolidated Plan). Agencies submitting
reimbursement requests must include proof of expenditure of funds, as well as documentation that
the pre-determined benchmark or goal was attained.
All tenant based rental assistance provided with HOME funds requires an inspection with a HQS
report.
All First-Time Homebuyer Downpayment Assistance Loan Program properties and Housing
Rehabilitation Loan Program properties receive on-site inspections. Rehabilitation projects must
meet current housing codes and non-emergency projects must meet HQS. All tenant based rental
assistance provided with HOME funds requires an inspection with a HQS report. Monitoring of
affordable housing loan activities undertaken with CDBG or HOME funds for compliance with
affordability requirements and/or other programmatic requirements is discussed in full in the
Monitoring Guide. Monitoring of economic development activities undertaken with CDBG funds
for compliance with Davis-Bacon and job creation is discussed in full in the Monitoring Guide.
There is also a Loan Management Policy for dealing with delinquent or in default housing or
economic development loans.
The DPCD also annually reviews its performance in meeting its goals and objectives set for in the
Consolidated Plan during the development of the annual CAPER.
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.
The complete Monitoring Guide is located in the 5 Year Consolidated Plan.
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SUMMARY/PROGRAM EVALUATION/CONCLUSIONS
Overall, we made significant progress toward meeting the goals of our 5-year Consolidated Plan and
FY13 Action Plan. We also continued to meet HUD required funding and expenditure caps and
timeliness requirements. The following is a summary of major activities accomplished in FY13:
3 families assisted to purchase their first home in Salem;
9 housing units were renovated, with an additional 3 projects underway;
62 families received assistance with first/last month’s rent and/or security deposits;
25 social service programs assisted 9,201 persons, including at least 868 youth and at least
266 seniors;
1 business provided with an economic development loan;
1 business assisted with storefront improvement;
Salem Main Streets Program highlights:
o Assisted 22 new or existing micro-enterprises;
o 1 business assisted resulted in 10 new full time jobs;
o Total volunteer hours were 2155;
o Salem Ice Scream Bowl;
o Salem Farmers' Market;
o Winter Farmers’ Market;
o Mayor's Night Out (2);
o Salem Maritime Festival:
o Mass In Motion and Destination Salem Marketing Committees:
o Enterprise Center workshop on volunteers and fundraising;
o Training/orientation of special city workers program;
o First Friday Initiative;
o Volunteer Appreciation event;
o Haunted Happenings;
o Holiday Happenings;
o Salem So Sweet Festival;
o Salem Film Festival;
o Salem Living Green Fair;
o Salem Poetry Festival; and
o Salem Arts Festival.
South River Harbor Walk completed;
Harbor and Lafayette Pedestrian Improvements completed;
Wheel chair ramps installed on Derby Street;
Rehabilitation of the basketball court surface and installation of a new light pole at Palmer
Cove Park;
Installation of neighborhood history sign panels in the Point and South Salem
Neighborhoods;
61 trees planted in low-mod neighborhoods; and
Completion of nomination of 142 North Street (fire station ) to the National Register of
Historic Places.
The City’s 5 Year Consolidated Plan was prepared at the start of FY11. In FY11, Salem received a
higher allocation of CDBG funds than any of the previous five years and the goals laid out in the 5 -
Year Consolidated Plan were based on level funding of CDBG. However, in FY12 and FY13, we
32
saw significant decreases in our CDBG allocation – FY13 was Salem’s lowest CDBG allocation in
over twenty years. The same holds true for our HOME funds, which saw an even deeper
percentage of cuts. With less to spend, program income totals also saw a decrease. As a result ,
some of our 5-Year goals remain at-risk of not being met due to reduced funding. Still, despite the
reduction in HUD funding (a 23.5% lower 3-year estimate), we are proud of the accomplishments
made in FY13.
CDBG funds help leverage additional grants for our projects and this year we were able to complete
the Harbor/Lafayette Street Pedestrian Improvement Project. Splaine Park Improvements are
underway, which are also using additional grant funds leveraged by CDBG.
We encourage feedback from our citizens in order to improve our efforts to provide decent, safe
and sanitary housing, improved community facilities and infrastructure, needed human services and
expanded economic opportunities, that all work toward revitalizing our neighborhoods and
improving our living environment.
IDIS/CPMP Reporting
The City of Salem reconciles its general ledger to IDIS monthly. All HUD required reporting is up
to date and complete.
The DPCD makes minimal use of HUD’s CPMP Tool, submitting with the Action Plan the Needs
and Projects tables only. The activities in Projects.xls are entered into IDIS and are included in the
Action Plan. These same activities are listed in the CAPER tables found on pages 4, 16 22, 24 and
26, including funds available and funds expended. These activities may include f unding from one or
more plan years.
The Financial Summary Grantee Performance Report (Form #4949.3) - or the PR26 in IDIS - is
recreated in the CAPER in the Appendix.
33
In this section, as part of our reporting requirements for HUD, we provide a supplementa ry
narrative that answers specific questions regarding our program expenditures and activities.
Use of CDBG Funds
In FY13, CDBG expenditures complied with the goals and objectives outlined in the FY13 Action
Plan and 5-Year Consolidated Plan. More detailed information on the use of these funds can be
found in the Assessment of Five Year Goals and Objectives section of this report.
Changes to Program Objectives
During the program period it may be beneficial to revise the Annual Action Plan in order to r eflect
changes in priority needs and goals. There were no revisions undertaken for the FY13 Action Plan.
Geographic Distribution and Location of Investments
Some programs and activities undertaken are available on a citywide basis to income eligible
households. Others are targeted to particular neighborhoods with concentrations of low - and
moderate-income households or to programs that benefit specific populations such as senior
citizens, disabled persons and minorities.
When prioritizing activities, the City pays special attention to those low- and moderate-income
neighborhoods where the greatest needs have been identified and whose public facilities and
infrastructure are in the worst condition. In accordance with CDBG regulations, specific activities,
such as street, sidewalk and playground improvements can only be undertaken in the low - to
moderate-income neighborhoods or in neighborhoods meeting the definition of “slums and blight”,
with the exception of handicap access improvements which can be undertaken city-wide.
Recognizing that needs are not solely located in distressed neighborhoods, we also offer programs
that may be accessed by people living outside these areas. For example, the Housing Rehabilitation
Loan Program, First Time Homebuyer Downpayment Assistance Program, and the Small Business
Loan Program are offered citywide to allow any low to moderate -income individual or household to
take advantage of their availability. A geographic distribution map is located in the Appendix.
Compliance with Planned Actions
In FY13, the City of Salem pursued all resources indicated in its FY13Action Plan.
Compliance with National Objectives
All CDBG funds budgeted and spent were exclusively focused on furthering the three National
Objectives of the CDBG program. The City also fully complied with overall benefit certification.
Relocation
In FY13, no CDBG funds were spent on projects that required the permanent displacement and/or
relocation of people, businesses, or organizations from occupied property. The program does
provide temporary location assistance through the Housing Rehabilitation Loan Program, per the
DPCD’s current Relocation Policy.
SUPPLEMENTARY NARRATIVES
34
Economic Development Activities
Economic development activities are discussed in the Assessment of Five-Year Goals and
Objectives, Economic Development section of this report.
Limited Clientele Activities
In FY13, the City of Salem funded several activities that served limited clienteles. For example,
funds were expended on 25 public service programs that primarily served low- and moderate-
income persons. Through the use of family-size/proof of income documentation, it was determined
that more than 51 percent of the people served by these projects met applicable criteria for low- or
moderate-income status. Those activities that were not Limited Clientele Activities were undertaken
in low- to moderate-income designated areas or in one of the designated Urban Renewal Areas.
Program Income
The Financial Summary section of this report documents total program income for the Salem
CDBG Program in FY13. The total program income was $118,054.87.
Rehabilitation Activities
The City of Salem sought to preserve affordable housing in the city by assisting low- and moderate-
income homeowners in rehabilitating their homes through the Housing Rehabilitation Loan
Program. The activities carried out during FY13 are described in the Assessment of Goals and
Objectives, Affordable Housing section of this report.
HUD Neighborhood Revitalization Strategies
Salem had no HUD approved Neighborhood Revitalization Strategies in place during FY13.
Performance Measurement
The DPCD uses several strategies for performance measurement and continues to review and
enhance its performance measurement system. Specifically, Salem has implemented a performance
measurement system in the following program areas:
Public Services - Public service contracts include performance measurement indicators. The annual
CAPERs outline the effectiveness of those measurements. Specifically, the City requir es
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.
35
Economic Development – A quarterly report is provided to the City’s Finance Department on new
loans issued, loan status and loan discharges. Monitoring of job creation is determined by the time
period in the funding Agreement. Monitoring consists of verification that the goals for
low/moderate income jobs to be created and/or retained have been met. A standard monitoring
form is used. The Economic Development Planner follows the Loan Management Policy for review
of existing loans and process to address delinquent, default or uncollectable loans.
Additionally, the City ensures long-term compliance with program requirements, including minority
business outreach and comprehensive planning requirements, in several ways. In particular, the
DPCD has a Monitoring Plan, Section 3 Plan and Minority Outreach Procedures in place that allows
the City to track whether long-term goals are being met. 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,
historic properties protection and prevailing wage documentation, as applicable. Staff periodically
attend environmental review trainings - on site or via webinar.
HOME Program
As stated previously, the City of Salem is a member of the North Shore HOME Consortium. The
City of Peabody administers the Consortium and maintains all documentation regarding Salem’s
participation.
During FY13, the City of Salem spent $194,687.72 in HOME funds. Funds were used to help fund
provide first time homebuyer downpayment assistance, housing rehabilitation and to fund the Rental
Downpayment Assistance Programs administered by the North Shore Community Action
Programs, Inc.. The accomplishments of these projects can be found in the reports submitted by
the City of Peabody on behalf of the Consortium.
In June, 2007, the Consortium voted to adopt the federal Energy Star Standards. The
implementation of this new policy for the use of HOME funds began on October 1, 2007. All new
HOME-assisted units are required to be certified as Energy Star compliant whenever either new
construction is involved or where the rehabilitation of an existing structure involves the gutting of
the structure to the bare walls.
36
In order to maximize the benefits achieved by Salem’s community development programs and in
order to make projects feasible, CDBG and HOME funds often must be combined with other
funding sources. The following chart summarizes the amount of federal dollars spent during FY13
and the funds leveraged through these expenditures.
Table 8: FY13 Funds Leveraged
Program CDBG
Expenditures
HOME
Expenditures
Funds from Other
Sources
Housing Programs $168,541.41 $194,687.72 $487,224.00
Public Services $161,265.52 - $3,131,258.16
Economic Development $90,631.44 - $84,400.02
Neighborhood Improvements6 $528,951.40 - $2,980,465.00
Planning & Administration $211,357.72 -
$406,092.69
TOTAL FY11 $1,160,747.49 $94,687.72 $7,089,439.87
TOTAL FUNDS LEVERAGED PER HUD DOLLAR IN FY13: $5.65
Listed below is a summary of the funds leveraged and reported in the table above:
Housing
For the First Time Homebuyer Program (includes CDBG, HOME), homebuyers provided
$15,155 in matching funds as well as obtained $457,144 in financing from a primary lender,
which amounted to a total leveraged of $472,299
The rehabilitation program leveraged $14,925 in State Green Communities funds.
Economic Development:
The Salem Main Streets Program leveraged $20,475.20. Of this total, $10,900 was corporate
contributions for operations and $9,575.20 was from events and programs (net of expenses)
such as the Main Streets Farmer’s Market, Salem So Sweet Festival, Salem’s Shop & Dine Guide,
Holiday Shopping initiative and Salem Arts Festival.
This year’s Business Loan Program leveraged $63,925 of other city funds.
Neighborhood Improvements:
CDBG funds for the South River Harborwalk project are used as a match toward $1,336,000 in
design and construction grant funds from the State Seaport Advisory Council
6 Includes Section 108 loan payment as a CDBG expense.
FUNDS LEVERAGED
37
The Harbor and Lafayette Streets Pedestrian Improvements leverage d $1,000,000 in MassDOT
Public Works Economic Development (PWED) grant funds
The Splaine Park Improvement Project is leveraging $420,946 in State PARC grant funds,
$216,851 from local Capital Improvement funds and $6,668 in donations.
Planning & Administration:
Planning and administration funds leveraged $326,347.87 in City funds plus $93,760.69 in
benefit costs and $68,244.82 in State Seaport Advisory Council funds
The Neighborhood History Signs leveraged $11,500 in Massachusetts Historical Commission
Survey & Planning Grant funds
Public Services:
Most of the public service agencies funded use CDBG funds as a portion of their overall activity
budgets. Based on leveraged funds reports provided by each agency at the end of the program
year, the amount leveraged is $3,217,696.16 in other federal, state or private funds
Note: Leveraged funds for multi-year projects may be repeated within more than one year’s
CAPER. Above, leveraged funds are only included for projects for which CDBG funds were
expended during the fiscal year
38
The goals and purpose of the Citizen Participation Plan is to encourage residents, agencies, and
other interested parties to participate in the development of our 5-Year Consolidated Plan and
Annual Action Plans and to comment on our accomplishments. The st rength of our programs
comes from the high number of volunteers that inform our decisions.
The Citizen Participation Plan included in the 5-Year Consolidated Plan is the framework we used
to solicit public comment, as well as to provide guidance on our response to citizens’ comments on
our programs throughout the year.
Public Comment Period
Copies of the FY13 CAPER were made available to the public throughout the 15-day comment
period and every effort was made to solicit citizens’ comments including pos ting the availability of
the report in the Salem Evening News, the City of Salem Official Bulletin Board at City Hall and at
the City Hall Annex through the Clerk’s Office, Salem Public Library, Salem Housing Authority and
on the City’s website. Copies were available for review at the DPCD, Salem Public Library and
Salem Housing Authority and on the City’s website (a copy of which was available for download).
No comments were received.
CITIZEN PARTICIPATION SUMMARY
APPENDIX
Financial Summary
Progress of Consolidated Plan 5-Year Goals
IDIS Report PR23 Excerpts
Total CDBG Beneficiaries by Racial/Ethnic Category
CDBG Beneficiaries by Income Category
IDIS Report PR54 (Note that the Program Income does not reflect adjustments and therefore does
not accurately reflect the total available.)
Maps
Section 3 Report
FY13 Consolidated Annual Performance and Evaluation Report
1 Summary of CDBG Resources
2 FY12 End of Year Balance $ 886,387.47
3 FY13 CDBG Entitlement $ 903,833.00
4 Program Income, FY13 $ 118,054.87*
5 Total CDBG funds available for use in FY13 $ 1,908,275.34
6 Summary of CDBG Expenditures
7 Affordable Housing $ 168,541.41
8 Public Services $ 161,265.52
9 Neighborhood Improvements (not including CDBG-R) $ 489,488.90
10 Economic Development – Note: amount was reduced by $20,000 to reflect canceled
loan funds returned $ 90,631.44
11 Planning & Administration $ 211,357.72
12 Section 108 Repayment (in CAPER narratives under neighborhood improvements) $ 39,462.50
13 Total Expenditures $ 1,160,747.49
14 Year-End CDBG Resources
15 Total CDBG funds available for use in FY13 $ 1,908,275.34
16 Total Expenditures in FY13 $ 1,160,747.49
17 Unexpended Balance (CDBG Budget) $ 747,527.85
18 Low/Mod Credit
19 Total FY13 CDBG Expenditures $ 1,160,747.49
20 Total for Program Administration $ 211,357.72
21 Total for Section 108 Repayments $ 39,462.50
22 Total subject to Low/Mod Benefit Calculation $ 909,927.27
23 L/M Credit for multi-unit housing $ 59,950.00
24 L/M Credit for other activities $ 909,927.27
25 Percent of benefit to low/mod persons 100%
26 Public Services Cap Calculation
27 Net obligations for FY13Public Services Activities $ 168,027.50
28 FY13 Entitlement + FY12 Program Income $ 1,132,906.47
29 Percent obligated PS Activities 14.83%
30 Planning and Program Administration Cap Calculation
31 FY13 Entitlement + FY13 Program Income $ 1,021,887.87
32 Net Obligations for Planning/Admin. Activities $ 201,306.46
33 Percent of funds expended 19.70%
FINANCIAL SUMMARY
34 HOME Summary
35 HOME Project Expenditures $ 183,852.57
36 Salem HOME Administration (including FTHB fee/inspection reimbursements) $ 10,835.15
37 Total HOME Expenditures $ 194,687.72
In FY11/12, the City cut a check and drew down $20,000 from IDIS in June, 2012 for an Economic
Development loan for Amazing Pizza, with the loan closing scheduled for July, 2012. In July, 2012,
the loan closing was canceled and the drawn down funds were revised to several other open a ctivities:
$337.52 -#1271 (Public Service)
$118.69 - #1272 (Public Service)
$16,283.79 - #1300 (Economic Development)
$1200.00 - #1298 (Housing)
$455.00 - #1308 (Housing)
$1075.00 -#1304 (Housing)
$530.00 - #1308 (Housing)
Because the initial drawdown (voucher 5291655) was completed in FY11/12, in some IDIS reports,
the above amounts may show up as having been expended in FY11/12, when they were actually
expended in FY12/13. Because this would effect the public service cap for FY11/12, these:
$337.52 - #1271(Public Service)
$118.69 - #1272 (Public Service)
were subsequently revised again to activity #1080 (Neighborhood Improvements).
Making the above changes required swapping program income funded drawdowns with entitlement
funds. This apparently resulted in IDIS erroneously changing some of the program income received
in FY11/12 to FY12/13 - making it appear that there was less program income than reported in
FY11/12 and more program income in FY12/13 - a total of ($83,113.28). This total was used to
adjust the total funds available in IDIS for FY13, as well as the amount subject to the planning and
administration cap. It was also necessary to adjust the total subject to the public service cap in the
amount of $73,025.43, as the program income indicated on the financial summary report in IDIS for
FY12 was in error.
Category 5 Year Goals
5 Year
Proposed
Year 1
FY10/11
Year 2
FY11/12
Year 3
FY12/13
Year 4
FY13/14
Year 5
FY14/15 TOTAL
Exceeded or
(remaining)
Housing 20 Units New Construction (HOME)20 0 0 0 0 (20)
40 Units Housing Rehabilitation (CDGB/HOME)40 17 7 9 33 (7)
80 Direct homeownership assistance (CDBG/HOME)80 7 5 3 15 (65)
375 Rental Housing subsidies (HOME)375 47 58 62 167 (208)
20 Commercial building acquistion, construction,
rehabilitation (including storefront improvements)20 1 0 1 2 (18)
5 Direct Financial Assistance for For-Profits 5 2 1 1 4 (1)
100 Micro-enterprise assistance 100 34 28 22 84 (16)
2 Public Facility and Improvements General (Peabody St.
Park, City Hall Elevator, Derby/Congress, YMCA pool h/a,
Lafayette PWED, History Signs, Harborwalk)2 2 2 3 7 5
2 parks/playgrounds (MJL sand)2 0 1 0 1 (1)
65 Trees planted 65 8 25 61 94 29
1 Senior Center 1 0 0 0 0 (1)
12 Street/sidewalk improvements (including Bike Path
striping, Derby curbcuts)12 19 1 1 21 9
Public Services 50,000 persons assisted 50000 11895 9142 9201 30238 (19762)
Public Facilities &
Improvements
Economic
Development
PROGRESS OF CONSOLIDATED PLAN 5-YEAR GOALS
CDBG funds unless otherwise noted
MAPS
Low to Moderate Income Areas (HUD has instructed communities to continue to use the boundaries
from the 2000 census until otherwise instructed).
Geographic Distribution of Entitlement Funds Expended FY13
Section 3 Summary Report
Economic Opportunities for
Low and Very Low-Income Persons
U.S. Department of Housing
and Urban Development
Office of Fair Housing
and Equal Opportunity
OMB Approval No.2529-0043
(exp. 8/17/2015)
HUD Field Office : : BOSTON, MA
See Public Reporting Burden Statement below
1.Recipient Name:
City of Salem, MA Recipient Address: (street, city, state, zip)
120 Washington Street
Salem , Massachusetts 01970
2. Agency ID:
B12MC250029 3. Total Amount of Award: $ 903,833
Amount of All Contracts Awarded: $ 104,750
4. Contact Person:
Jane A. Guy 5. Phone: 978-619-5685
Fax: 978-740-0404
E-Mail: jguy@salem.com
6. Reporting Period: Quarter 4 of Fiscal Year 2012 7. Date Report Submitted:
07/25/2013 8. Program Code-Name:
7-CDBG-Entitlement
Program Codes: 1 = Flexible Subsidy 2 = Section 202/811
3A = Public/Indian Housing Development 3B = Public/Indian Housing Operation 3C = Public/Indian Housing Modernization
4 = Homeless Assistance 5 = HOME Assistance 6 = HOME-State Administered
7 = CDBG-Entitlement 8 = CDBG-State Administered 9 = Other CD Programs
10= Other Housing Programs
Part I. Employment and Training (Columns B, C, and F are mandatory fields.)
AJob Category BNumber of
New Hires CNumber of
New Hires
that are
Sec.3
Residents
D% of
Section 3
New Hires
E% of Total
Staff Hours
for Section 3
Employees
FNumber of
Section 3
Trainees
Professionals 0 0 0.00 % 0.00 % 0
Technicians 0 0 0.00 % 0.00 % 0
Office/Clerical 0 0 0.00 % 0.00 % 0
Officials/Managers 0 0 0.00 % 0.00 % 0
Sales 0 0 0.00 % 0.00 % 0
Craft Workers (skilled) 0 0 0.00 % 0.00 % 0
Operatives (semiskilled) 0 0 0.00 % 0.00 % 0
Laborers (unskilled) 0 0 0.00 % 0.00 % 0
Service Workers 0 0 0.00 % 0.00 % 0
Other (List) 0 0 0.00 % 0.00 % 0
Total 0 0 0
Part II. Contracts Awarded
1. Construction Contracts:
A. Total dollar amount of all construction contracts awarded on the project $ 58,174
B. Total dollar amount of construction contracts awarded to Section 3 businesses $ 0
CITY OF SALEM, MA Report has been submitted. July 25, 2013
C. Percentage of the total dollar amount that was awarded to Section 3 businesses 0.00 %
D. Total number of Section 3 businesses receiving construction contracts 0
2. Non-Construction Contracts:
A. Total dollar amount of all non-construction contracts awarded on the project $ 46,576
B. Total dollar amount of non-construction contracts awarded to Section 3 businesses $ 0
C. Percentage of the total dollar amount that was awarded to Section 3 businesses 0.00 %
D. Total number of Section 3 businesses receiving non-construction contracts 0
Part III. Summary of Efforts
Indicate the efforts made to direct the employment and other economic opportunities generated by HUD financial assistance for housing and
community development programs, to the greatest extent feasible, toward low- and very low-income persons, particularly those who are
recipients of government assistance for housing. (Select yes to all that apply)
Yes Recruited low-income residents through: local advertising media, signs prominently displayed at the project site, contacts with
community organizations and public or private agencies operating within the metropolitan area (or nonmetropolitan county) in which the
Section 3 covered program or project is located, or similar methods.
No Participated in a HUD program or other program which promotes the training or employment of Section 3 residents.
No Participated in a HUD program or other program which promotes the award of contracts to business concerns which meet the definition
of Section 3 business concerns.
No Coordinated with Youthbuild Programs and administered in the metropolitan area in which the Section 3 covered project is located.
Yes Other; describe below.
Section 3
FY13 (HUD FY12) Efforts
CDBG Activities
Splaine Park Improvements (as reported in FY12)
Legal and other notices indicated that the project was subject to the requirements of Section 3
Sealed bid specifications included the Section 3 Clause and the Section 3 Certification for
RFPs and Sealed Bids (mandatory to be signed by all bidders)
Bid notices were sent to:
o Salem News – Legal notice
o Commonwealth of Massachusetts’ Central Register
o Salem Chamber of Commerce
o Directly to three M/WBE General Contractors from SOMWBA online Business Directory
List
o City of Salem website – Purchasing Department webpage
No CDBG funds were expended on this project during FY13 or are expected to be expended for
the construction work. However, it is possible that clean up of environmental hazards my be
undertaken with CDBG funds in FY14. If so, any Section 3 activities will be reported in FY14.
There were no other construction projects undertaken in FY13 that were $100,000 or over.
Other Efforts
The City’s Section 3 Business Affidavit is located on the City’s website, on the Purchasing
Department webpage at http://salem.com/Pages/SalemMA_Purchasing/section3.pdf
Job notices for positions available in the Department of Planning and Community Development
were posted at the Salem Housing Authority, North Shore CDC and the North Shore Career
Center, as well as the City’s website and internally to current city employees. As appropriate,
notices were sent to Salem State University, UMass Amherst, Umass Boston, Kennedy School,
MassAPA, NCDA, and representatives of HOME Consortium communities.
The Section 3 clause is and has always been included in CDBG contracts generated by the
Department of Planning & Community Development, regardless of the contract amount. In
addition, for more than 18 years, social service agencies receiving CDBG public services funding
have been required to provide copies of their agency’s hiring and purchasing policies and these
policies have been reviewed to ensure outreach efforts are made to lower income, as well as
minority Salem residents. Public service agencies’ funded programs are monitored on an annual
basis to ensure that the policies are followed.
As we learn of new best practices, the City of Salem continues to update its Section 3 Plan,
created in November, 2010.
Notes
Totals for construction contracts include Bike Path striping (not yet expended), Palmer Cove Park
improvements and Teen Resource Center (expended FY12 and open PO’s FY13). Non-
construction contracts include Teen Resource Center FY12 purchases and open FY13 PO’s, and
Splaine Park environmental testing expended. Non-construction activities such as economic
development, first time homebuyer, housing rehabilitation loans under $100,000 and related
program delivery, planning & administration, public services, etc. were not included in the
tabulation.
Public reporting burden for this collection of information is estimated to average 6 hours per response, including the time for reviewing instructions, searching
existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not collect
this information, and you are not required to complete this form, unless it displays a currently valid OMB control number.
Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u., mandates that the Department ensure that employment and
other economic opportunities generated by its housing and community development assistance programs are directed toward low- and very low-income
persons, particularly those who are recipients of government assistance for housing. The regulations are found at 24 CFR Part 135. The information will be
used by the Department to monitor program recipients’ compliance with Section 3, to assess the results of the Department’s efforts to meet the statutory
objectives of Section 3, to prepare reports to Congress, and by recipients as a self-monitoring tool. The data is entered into a data base and will be analyzed
and distributed. The collection of information involves recipients receiving Federal financial assistance for housing and community development programs
covered by Section 3. The information will be collected annually to assist HUD in meeting its reporting requirements under Section 808(e)(6) of the Fair
Housing Act and Section 916 of the HCDA of 1992. An assurance of confidentiality is not applicable to this form. The Privacy Act of 1974 and OMB Circular A-
108 are not applicable. The reporting requirements do not contain sensitive questions. Data is cumulative; personal identifying information is not included.