CDBG FY14 CONSOLIDATE ANNUAL PERFORMANCE EVALUATION REPORT
CONSOLIDATED ANNUAL PERFORMANCE
AND EVALUATION REPORT
CITY OF SALEM, MASSACHUSETTS
Fiscal Year 2014
July 1, 2013 to June 30, 2014
Kimberley Driscoll, Mayor
Lynn Goonin Duncan, AICP, DPCD Director
Jane A. Guy, Assistant Community Development Director
ii
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 2014, we expended $894,742.25 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 $67,905.60 in HOME funds. Also being
reported is the $325,000 spent in HOME funds for the St. Joseph’s Complex Redevelopment, for
which the loan closing was completed in FY13, but not reported in the last year’s CAPER.
The FY14 Consolidated Annual Performance and Evaluation Report (CAPER) provides an analysis
of the fourth fiscal year - July 1, 2013 through June 30, 2014 - 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 FY14 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, he lp
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
iii
an overview of each program area including an assessment of goals and how activities met the
objectives laid out in the Consolidated Plan.
Supplementary Narratives – As part of our reporting requirements for HUD, we must answer
certain questions regarding our program expenditures and activities. In this section, we provide
supplementary narratives that provide answers to these questions.
Funds Leveraged – Another measure of the success of our program is the funds we leverage with
our federal grants. This section includes a table outlining the funds leveraged from CDBG and
HOME.
Citizen Participation Summary – In this section, we outline how we solicit public comment on our
programs and list the comments heard, if any, during the Public Comment Period, along with
our response to those comments.
The Appendix includes maps, a Financial Summary and tables and spreadsheets to help illustrate
program expenditures and progress.
Contact Information
We are always open to feedback on our progress, as well as to answer questions regarding any of our
programs mentioned in this report. If you would like more information please contact the
Department of Planning and Community Development at 978-619-5685.
CAPER finalization date – September 25, 2014
VOCES students
iv
INTRODUCTION .................................................................................................................................................. 1
Assessment of Goals and Objectives .............................................................................................................. 3
Affordable Housing Programs ................................................................................................................ 4
Public Services ......................................................................................................................................... 16
Economic Development ........................................................................................................................ 21
Neighborhood Improvements .............................................................................................................. 25
Planning & Administration .................................................................................................................... 27
Other Actions .......................................................................................................................................... 28
Summary/Program Evaluation/Conclusions ..................................................................................... 32
Supplementary Narratives ............................................................................................................................... 34
Funds Leveraged .............................................................................................................................................. 37
Citizen Participation Summary ...................................................................................................................... 39
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
Low to Moderate Income Areas
Geographic Distribution of Entitlement Funds Expended FY14
Section 3 Report
Cover photo: 135 Lafayette Apartments on the site of the former St. Joseph’s Church
TABLE OF CONTENTS
1
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 FY14 CAPER provides an
analysis of the fourth fiscal year of the 5-Year Consolidated Plan — July 1, 2013 through June 30,
2014.
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 participation meetings
throughout the year. More importantly, the Consolidated Plan, Annual Action Plan, and CAPER
provide a comprehensive analysis of community needs, identify goals, and lay out objectives that will
1 Low- to moderate- income individuals equals less than 50 or 80 percent of the Boston area median income respectively.
INTRODUCTION
2
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.
Independent Living Center of the North Shore & Cape Ann, Inc.’s
Housing Rights Workshop, April 2014
3
During FY14, the DPCD continued to make significant progress toward meeting the goals and
objectives laid out in the 5-Year Consolidated Plan and FY14 Action Plan. The CDBG entitlement
funds from HUD for the fiscal year were $968,058 and program income received during the
program year was $115,968.75. Our HOME funding allocation was $93,638. We also used any
available carried over CDBG and HOME funds from prior years.
CDBG Expenditures
In FY14, we expended a total of $894,742.25 in CDBG funds. Expenditures were divided into five
program areas — Affordable Housing, Neighborhood Improvements, Planning & Administration,
Public Services and Economic Development. In FY14, we met all timeliness requirements and
program expenditures were consistent with our 5-Year Consolidated Plan and FY14 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 FY14 and prior year carried over funds+/- any adjustments
made during the year.
HOME Expenditures
In addition to CDBG funds, the DPCD also spent $67,905.60 in HOME funds to undertake
affordable housing activities. When added to the $206,236.29 spent in CDBG funds, the total amount
spent for housing programs is $274,141.89. In addition, $325,000 in HOME funds was expended in
FY13 (not reported in the FY13 CAPER) for the St. Joseph’s Complex Redevelopment, which was
completed in FY14, giving a total of $599,141.89 being reported herein. 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 is 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
FY14 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
14%
Affordable
Housing
46%
Economic
Development
10%
Public Services
14%
Planning &
Administration
16%
Fig. 1 FY14 Spending by Category,
as a Percentage of Total CDBG & HOME Expenditures
(includes $325,000 HOME funds spent but not report in FY13)
4
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 FY14, the City of Salem spent $274,141.89 in CDBG and HOME funds on affordable housing
projects and programs. In addition, $325,000 in HOME funds were spent in FY13, which were not
reported in the FY13 CAPER. The project accomplishments attained with these funds during FY14
are described in the following table.
Table 1: FY14 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.
$16,840 CDBG
(Carried over &
FY14)
$7,955 CDBG funds spent
1 Salem family assisted (1
unit)
Housing
Rehabilitation
Loan Program
Provides a combination of
technical and financial assistance to
help low- to moderate-income
homeowners and landlords make
needed improvements to their
properties.
$350,229.59 CDBG
(FY14 & carried
over)
$34,812 HOME
(FY14)
$137,629.50 CDBG funds
spent
$10,412 HOME funds spent
6 units improved (6 owners)
3 additional projects
underway (CDBG)
Salem Point
Apartments
Major renovation of 77 units
maintained by the North Shore
CDC.
$50,000 (FY13),
$20,000 (FY14 $0 funds spent.
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.
$105,733.28
(including $56,000
of FY14) in open
HOME Contracts
$48,215 in HOME funds
spent
41 families assisted thru
Rental Downpayment
Assistance Program
Project Project Description Funding Available3 Status
2 “Funding available” indicates the total funds available during the fiscal year, including FY14 and prior year carried over funds+/-
any adjustments made during the year.
~ Before and after photos of roof and porch work ~
5
St. Joseph’s
Complex
redevelopment
Phase 1 consists of construction of
51 units of affordable rental
housing
$325,000 HOME
$325,000 funds spent in FY13
51 units affordable rental
housing completed in FY14
Housing
Program
Delivery
Costs associated with providing
rehabilitation programs &
inspectional services.
$92,671.79 CDBG
(FY13 & carried
over)
$2,809 HOME
(FY14)
$60,651.79 in CDBG funds,
and $2,809 in HOME admin
funds for housing program
delivery and inspectional
services including lead
inspection, as well as a
HOME reimbursement of
$6,469.60 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 FY14 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 committed funding to develop affordable
housing units at the former St. Joseph’s Church site, developed by the Boston Archdiocese’s
Planning Office for Urban Affairs (POUA). The first phase of the proposed project is
complete and included the razing of the former church and convent buildings and the
construction of a new four-story building on the site. The 51 units in the new building consist
of affordable rental units. In September, 2013, a lottery (with assistance by the City’s Housing
Coordinator) was held for the 51 units, with over 1,000 applications received, demonstrating the
need for affordable housing. The units are now occupied. The City spent $325,000 of HOME
funds towards the redevelopment project, which also included $495,000 in additional HOME
funds provided by the North Shore HOME Consortium. The development was also awarded
funding through DHCD’s One Stop Funds Program. In addition, $1 Million in PWED funds
were spent on now completed traffic and infrastructure improvements to the adjacent
intersection. These funds were leveraged by and benefit the development.
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.
3 “Funding available” indicates the total funds available during the fiscal year, including FY14 and prior year carried over funds+/-
any adjustments made during the year.
6
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, work ing with a local
non-profit agency.
Four affordable housing units have been created as part of the mixed-use development at 28
Goodhue Street, known as North River Apartments, based on negotiations during the
permitting process. The developer has contracted with a certified Lottery Agent to conduct the
lottery for these four units during the fall, 2014.
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 these developments was in jeopardy, the city
took the following actions:
o In February 2003, the city reached an agreement that will keep Salem Heights’ 283
apartments rented at affordable rates for 100 years.
o The City negotiated with the owners and tenants of Loring Towers, a HUD 236 property
that the owner had proposed to convert to a Low Income Housing Tax Credit (LIHTC)
project. In June 2007, in order to protect the long-term affordability, as well as the
affordability for existing tenants, the Mayor signed a 121A Agreement and entered into a
Memorandum of Understanding that will ensure that 90 percent of the 250 units will be
reserved for families and individuals at or below 60 percent AMI. Furthermore, 10 percent
will be reserved for those at or below 30 percent AMI for a period of forty years.
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.
o In 2014 the city worked diligently with WinnCompanies to negotiate a compromise proposal
in an effort to address the City’s concerns about the loss of affordable housing at Pequot
Highlands, whose Section 236 loan was due to mature March 1, 2019. Winn pledged to seek
a minimum of 100 units (40% total) to remain affordable under a 30 year project based
voucher contract; and to increase this minimum amount by “offering up to an additional 50
project based vouchers to be offered to existing qualified residents on a first come first serve
basis, for a contract period of no less than 15 years. The City of Salem supported having a
total of 150 project-based units as a reasonable approach to maximizing affordability. This
will bring the total percentage of project based vouchers at the property to 60%, consistent
with the City’s goal. Without this solution, all affordable units would have been lost in five
years (2019) upon the expiration of the 236 loan.
In addition, the Preservation of Affordable Housing (POAH) purchased Fairweather
Apartments. This purchase will ensure the continued affordability of these 127 units.
Foreclosure Prevention
7
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 able to offer assistance to
families threatened with the possibility of foreclosure and are maintaining a tracking list of all
pre-foreclosure, foreclosure and bank-owned properties in the city.
In order to education potential homebuyers, the City encourages first-time homebuyers to
complete a certified homebuyer education course, such as the one funded with CDBG funds
through the North Shore Community Development Coalition (NSCDC). The City provides an
additional $1000 in First Time Homebuyer Downpayment Assistance Loan Program funds for
those that do.
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.
In September 2013, the Housing Coordinator attended a Foreclosure Prevention Clinic
sponsored by the North Shore CDC,
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 calendar years4.
YEAR 1-FAMILY CONDO ALL
2013 8 14 26
2012 16 20 45
2011 12 27 53
2010 18 33 64
2009 19 25 62
2008 19 32 73
2007 18 25 55
The good news is that, in Salem, the number of Foreclosure Deeds has been steadily declining
over the last 5 years.
The Commonwealth defines foreclosure distress properties as those where a foreclosure petition
has been filed or an auction scheduled in the previous year, or is bank held (up to 2 years). As of
July 1, 2014, Salem’s rate of distress housing units per thousand was 3.7%, now lower than the
state average of 4% for municipalities with 1,000 units of housing or more.5
The City continues to fund Rental Downpayment Assistance programs at Salvation Army,
NSCAP, Citizens for Adequate Housing and HAWC to provide first/last month’s rent and
security which can be used by displaced families.
4 The Warren Group, “Foreclosure Stats”, www.thewarrengroup.com.
5 Massachusetts Housing Partnership Foreclosure Monitor, August 15, 2014.
8
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 (SHA) currently administers 1088 Section 8 vouchers. The SHA
also 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. In addition to routine maintenance and repair work, the following modernization
work is currently either underway or in design at the following SHA developments:
$1.4 million window and door replacement at Pioneer Terrace elderly housing;
$135,000.00 emergency generator installation at Morency Manor;
$11,000.00 water conservation program of replacement of 26 toilets at various units; and
$67,600 walkway paving at Rainbow Terrace.
The SHA also recently received notification of a $40,906 award from HUD’s Capital Fund
Program, which will be used for maintenance and administration operation costs for the SHA’s
39 units of federally funded public housing.
Community Teamwork in Lowell, MA administers approximately 360 Section 8 vouchers in
Salem. That number fluctuates based on new vouchers/projects and terminations. CTI also
administers the MA Department of Housing and Community Development’s Family Self-
Sufficiency Program which provides employment incentives to Section 8 voucher households.
There are currently seven DHCD FSS participants in the City of Salem.
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 agencies, such as North Shore Community
Development Coalition.
9
Providing Assistance to Renters
This year, the City continued 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 stock,
more homeowners, as well as tenants residing in rental units, can live in decent housing. The
program was expanded to investor-owners with low- to moderate-income tenants, to address
code compliance and health/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
new construction is involved or where the rehabilitation of an existing structure involves the
gutting of the structure to the bare walls. Homeowners are 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 through MassHousing’s Get
the Lead Out Program. This program can be combined with the City’s Housing Rehabilitation
Loan Program. As a Local Rehabilitation Agency (LRA) for the Get the Lead Out Program,
Salem is responsible for intake of application information, technical assistance, working with the
applicant through the construction process and acting as the escrow agent for the loan funds.
Work Regionally to Increase the Supply of Housing
The housing market operates regionally and the impact of the market is not confined to city
boundaries. Salem has more affordable housing than many cities in the region. At 12.4 percent,
Salem has the highest percentage of affordable housing of the 30 cities and towns in the North
Shore Home Consortium. However, multi-jurisdiction cooperation is needed to address the
region’s lack of affordable housing opportunities. No one city or town can, or should, bear the
responsibility of providing all of the region’s affordable units. Salem is committed to working
with its partners in the North Shore HOME Consortium and with the region’s mayors to
encourage the development of housing throughout the area in an effort to increase the supply of
housing for all.
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
10
conducted public forums and phone interviews of interested parties including, but not limited to:
service providers, real estate professionals, property managers, lenders, local officials and staff.
Many of the organizations contacted for interviews are located in Salem and/or operate in the city.
The City of Salem’s Affordable Housing Trust Fund Board provided a letter, dated January 8, 2008,
commenting on the Draft AI. The final AI did not identify any specific actions for Salem to
undertake in order to overcome the effects of any impediments identified through that analysis. It
did recommend that the Consortium consider taking the following actions:
1. Assist in improving awareness of fair housing law
2. Assist in improving understanding of available fair housing services
3. Assist in improving fair housing delivery system
4. To counteract high denial rates, consider implementing first-time homebuyer training
program targeted at particular types of consumers
5. Incorporate more formalized elements of fair housing planning in Consolidated Plan
6. To aid in expanding awareness of inclusive land use policies, the Consortium might wish to
consider extending fair housing training to the area’s boards and commissions, as well as public
and elected officials
7. Assist in alerting involved agencies to the prospects of their involvement in institutional
barriers that detract from affirmatively furthering fair housing or acting in the public interest of
furthering education of fair housing and the fair housing system.
The City of Salem acknowledges its responsibility to consider and address its own unique
impediments to fair housing should the Consortium’s AI insufficiently address them. In general, the
City determined that the AI was thoroughly researched and inclusive of Salem’s fair housing
concerns. While the AI established findings and recommendations on a consortium-wide basis, the
consultant noted circumstances when a community’s statistics and demographics differed from the
others. For example, the racial and ethnic makeup of residents of the consortium cities differs from
that of the suburban communities. Following are findings pertinent to Salem:
Salem has high ethnic and minority concentrations in some neighborhoods.
Salem has a high proportion of lower-income households compared to other communities.
People living in Salem with disabilities are not concentrated in one area.
While mortgage denials are higher in some neighborhoods than others, Salem has
proportionately fewer residents who were denied mortgage loans than areas in other consortium
communities. (Note: While the trend holds, the number of sub-prime loans denied to Salem
residents was higher than loans from prime lenders.)
Salem has lower levels of homeownership than other consortium communities; this is
primarily due to the diversity of Salem’s housing stock.
The City has used the Consortium’s AI and its own experience to inform its approach to
affirmatively furthering fair housing. City staff are regularly informed about fair housing -related
issues and concerns through their interactions with the public and local organizations. While the
consultant identified various impediments to fair housing choice for the consortium as a whole, City
staff with their intimate knowledge and experience of the city’s dynamics and neighborhoods, and
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;
11
7. The high concentrations of minority and disabled populations tends to support the notion
that housing location policies are not as inclusive as may be desired in affirmatively furthering
fair housing;
8. Recent case history shows that local housing authorities within the Consortium award
preference to individuals on subsidized housing waiting lists based upon local residency. This
may be viewed as an impediment to fair housing choice for individuals not residing within each
of these local communities who may wish to move to another community; furthermore, this
practice may contribute to a lack of demographic diversity within the Consortium’s thirty
communities.
Note: Establishing local preferences, including preferences for people who reside and/or work in a community,
is a common practice of housing authorities and is not specific to the City of Salem or the NS HOME
Consortium communities. This practice is acceptable to HUD.
The City of Salem acknowledges that affirmatively furthering fair housing is not limited to
addressing issues of income and housing affordability and therefore, the City’s actions to
affirmatively further fair housing are not limited to promoting affordable housing. The City of Salem
has worked and continues to work to address the impediments identified above (1, 2, 4, 5 and 7), by
carrying out the following activities:
Local officials receive training so they understand the Fair Housing Law and can educate
others: In 2009, the City’s Assistant Community Development Director, the Housing
Coordinator and a board member of the City’s Affordable Housing Trust attended a Fair
Housing Training hosted by the North Shore Home Consortium and conducted by The Fair
Housing Center. Staff shared information received at the training with the remainder of the
AHTF board members. 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
and April, 2014. (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. Pro viders
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
12
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
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 i ssues. 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
13
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. Community Teamwork conducted training sessions in March 2012 and June,
2012. City housing staff gave presentations during a class for both of these training sessions, as
well as for a Homebuying 101 Course provided in Spanish in May, 2014, sponsored by the
North Shore CDC. (These efforts work to address impediments 1, 2 and 4.)
The City of Salem has also examined issues pertaining to fair housing directly through its
consolidated planning processes in 2005 and 2010. During this planning, the City held a series of
public meetings and interviews with neighborhood groups, service providers, business associations
and housing professionals. Participants were asked to comment on fair housing and discrimination
in the city. Perhaps surprisingly, these discussions did not point to any particularly unique
impediments to fair housing.
In addition, we have reviewed the following possible impediments and provide our perspective on
them as follows:
Whether subsidized and affordable housing is concentrated in minority areas - Salem has one of the
largest inventories of subsidized and affordable housing in the consortium. Salem’s subsidized
and affordable housing is located citywide, including in some of Salem’s areas of minority
concentration (see “Subsidized Housing Inventory” map located in Salem’s 2010 Consolidated
Plan). The City does not conclude that its subsidized and affordable housing is
disproportionately located in areas of minority concentration to a degree that presents an
impediment to fair housing choice.
Lending, mortgage availability, and foreclosure issues affecting minority homebuyers - Salem property
owners have been greatly affected by the downturn in the housing market and the prevalence of
foreclosures. Foreclosures have occurred citywide (see map “Mortgage Foreclosures” located in
Salem’s 2010 Consolidated Plan). It is clear from this map that as of January 2010, foreclosures
are not concentrated in areas of minority concentration. The NS HOME Consortium analyzed
the level of mortgage denial in each of its communities by block group. While denial rates were
higher in Salem’s minority block groups, they were within the overall a verage 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.
14
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 Spa nish. 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 Budget
Coordinator) are bilingual (fluent in Spanish/English) and a few staff are conversational in
Spanish, French or Portuguese. This not only helps break language barriers, but also helps with
cultural barriers.
Willingness of landlords to rent to families with children - The consortium’s AI identifies
discrimination in rental housing as one of the impediments to fair housing in the region. Salem’s
housing stock is old and lead paint is prevalent. This presents a concern to landlords who may
otherwise rent units to families with children. One of the ways the City of Salem works to
address this is by operating a deleading assistance program that offers financial assistance to
property owners to remove lead paint from their properties.
The City acknowledges that given the ethnic and racial composition of its population, age of housing
stock and prevalence of renter housing, it must examine the potential for housing discrimination and
submit any known AI issues exclusive to Salem during the development of the next Consortium AI,
as well as the actions it is undertaking to address them. Salem will also continue to work with the
Consortium to identify and address fair housing issues and impediments both for the city and the
region. We will continue to monitor our programs and look for new ways to further fair housing.
Continuum of Care/Homelessness
During FY14, the city continued to support local agencies that provide direct assistance to homeless
families and individuals in Salem, such as Lifebridge and HAWC, and to agencies that help
households avoid homelessness. Agencies funded and their accomplishments are provided i n the
Public Services Section of this report, where it indicates that 84 households (194 persons) avoided
homelessness through city-funded Homeless Prevention 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.
Representatives of Lifebridge meet with DCPD staff, the Salem Police Community Impact Unit,
downtown business representatives and other interested parties as needed 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 report 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.
15
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 met our estimate to assist one household to purchase their first home. However, at a
total of 16 after year four, it is clear that the foreclosure crisis has taken its toll and Salem will not
meet its Consolidated Plan goal of 80 units assisted.
The Housing Rehabilitation Loan Program continues to assist families in need and to exceed the
goals laid out in the Consolidated Plan. In FY14, we exceeded our Action Plan goal of rehabilitating
4 housing units. There were 6 units where improvements were completed. In addition, there are 3
more projects currently underway. In total, after year four, we are just one unit shy of meeting our
Consolidated Plan goal of 33 units.
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 FY14
Action Plan projected that up to 36 households would be assisted; 41 families were assisted through
contracts with North Shore Community Action Program, Inc., exceeding this year’s goal. After year
four, we have only 55% of our 5-year estimate.
The most significant accomplishment was the completion of 51 new units of affordable housing at
the former St. Joseph’s Complex by POUA, greatly exceeding the Consolidated Plan goal of 20
units. In September, 2013, a lottery (with assistance by the City’s Housing Coordinator) was held for
the 51 units, which are now occupied.
Finally, we continue 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, meetings or
webinars (i.e. October, 2012 webinar: Using the Income Calculator to Determine Annual Income).
This year the Housing Coordinator attended:
Strengthening Mobility – Beverly - August, 2013 – Sponsored by Greater Lynn Senior
Services, in partnership with North Shore Career Center
Foreclosure Prevention Clinic – Salem – September, 2013 – Sponsored by North Shore
CDC
CHAPA’s Annual Regional Meeting – Peabody, November, 2013
Confronting Poverty on the North Shore – Salem – November, 2013 – Sponsored by
Metropolitan Area Planning Council, North Shore CDC and North Shore United Way
Housing Law Basics – Gloucester – November, 2013 – Sponsored by NSCAP
This year, the Assistant Community Development Director and the Housing Coordinator also each
attended a meeting of the working group of the Salem Community Charter School who are looking
to help address the needs of homeless youth.
16
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
FY14, 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 FY14 Action Plan.
According to HUD regulations, we are allowed to
commit up to 15 percent of our CDBG allocation to public service activities. In FY14, 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 FY14 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 FY14, we were able to expend $180,031.51 on 32 open public service contracts, which, in turn,
assisted 9,053 people, including at least 722 children/youth and 206 seniors (see Table 2 for Active
Projects).
Table2: FY14 Public Services Financial Summary
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted Program Impact
Bentley Elementary School
After School Program (Students on
the Move)
$5,000.00 $5,000.00 95 youth
Conduct 6 week classes (1.5 hours
per class, including 20-30 minutes
homework time):Girls Basketball
grades 4/5, Boys Basketball grades
4/5, Social club grades K/1/2,
Social Club grades 3/4/5, Readers
Theater grades K/1/2, Yoga grades
K/1/2, No bake cooking grades
1/2/3, No bake cooking grades
4/5, Hip hop grades 3/4/5
Boys & Girls Club
Teen Power Hour $4,800.00 $4,800.00 223 youth
During October, November and
December of 2013, youth
participated in homework help at
least three times per week.
Haven From Hunger
Food Pantry $9,800.00 $9,800.00 586 persons
Provided food to 259 families
through visits to the food pantry
over 3 months.
North Shore CDC
Family Stability Program $9,075.00 $9,075.00 101 persons
They held 129 classes/workshops
for ESL, First Time Homebuyer
and EITC Tax Prep.
Medical assessment at Lifebridge
17
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted Program Impact
East Gate Fellowship: Joseph’s
Storehouse $9,800.00 $9,800.00 2338
persons
Provided a food pantry to 1081
households for up to twice per
month. As a result, more than 6559
visits were made to the pantry by
low and very low income Salem
residents, thereby allowing them to
stretch their household monies and
still have nutritious food.
Salem Community Child Care $9,800.00 $9,800.00 13 youth
Provided child care for 169 days
over 8 months (5 days per week).
Enrichment activities are provided
and children are assisted with
completing homework. All
successfully completed
kindergarten.
H.A.W.C.
Children’s Program $9,800.00 $9,800.00 51 persons
Provided over 80 hours of classes
and groups for the adults and/or
children - therapy play group,
parenting group, domestic violence
group, mind/body/soul group,
budgeting, etc.
H.A.W.C.
Homeless Prevention Program
$6,500
(FY13) $2855.48 6 persons
4 households avoided homelessness
with emergency rent and/or utility
assistance. In addition, funds
leveraged with MA State DCF
contract to assist 18 more
households.
Lifebridge
Medical Support Services $9,800.00 $9,800.00 218 persons
Provide would care, general health
assessments, diabetic monitoring
and education. 917 health
assessments were completed. They
also conducted outreach services to
connect homeless individuals with
shelter services.
Salem Police Department
Bicycle and Walk/Ride Patrols
$1,796.82
FY12; $7,300
FY13;
$10,000 FY14
$10,072.30 3,918
persons
Total calls for service in the Point
Neighborhood area increased 26%
over last year. Drug offenses
decreased 24%; drunk individuals
decreased 22%; public drinking
decreased 50%; disorderly conduct
decreased 12%; total disturbances
increased 58%; loitering decreased
50%; noise ordinance violations
decreased 31%; total assaults
decreased 7%.
Catholic Charities
Homeless Prevention Program $9,800.00 $9,800.00 38 persons
17 families avoided homelessness
with emergency rent assistance .
They also assisted 16 persons with
this program with other non-
CDBG funding. All families
received extensive information and
referral services and budget
counseling.
North Shore Moving Market $4,800.00 $4,800.00 331 persons 315 food deliveries made over 4
months.
18
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted Program Impact
Catholic Charities
Little Lambs Program
$300 FY13;
$2,000.00
FY14
$2,250.00 205 persons
Assisted 45 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
$9454,00
FY13;
$3300.00
FY14
$12,080.32 68 persons
Assisted 30 households with
homelessness prevention (rent
arrearage).
V.O.C.E.S.
Hispanic Education Program $4,800.00 $4,800.00 106 persons
Provided 188 classes in either
Citizenship Education or GED
Preparation. This year there were
78 new citizens and 4 persons got
their GED in Spanish.
Cerebral Palsy Association
North Shore Infant & Toddler
Preschool Program
$4,800.00 $4,800.00 61 children
For children with physical and
developmental disabilities to attend
integrated developmental play
groups once per week. Of the total,
45 children have aged out of
services and transitioned to local
daycares, preschools, Head Start or
Salem Public Schools. The
remaining 16 continue to attend
weekly toddler groups until they
turn 3 years of age.
Morgan Memorial Goodwill
Industries
Career Planning Program
$400 FY13;
$3,000.00
FY14
$2,733.24
10 disabled
youth (5
each year)
5 students to participate in the
School to Work Program for high
school students with disabilities.
All students completed a Skills
Picture Interest Inventory, Work
Readiness Inventory, Money Skills
Assessment and an Individual
Training and Employment Plan.
Students filled out at least 2 job
applications, did on-line job
searching and completed job
groups that covered topics such as
interviewing skills, on the job
interactions, dressing for an
interview and mock interviewing.
They completed a resume and
cover letter, as well as worksheets
on topics interest building,
character building, and sample job
applications. Stop and Shop
training and a hands on skill
assessment were also performed.
They watched videos on First Job
Survival Skills, which included
getting through the first 90 days. 1
student did an internship at the
Thompson's Greenhouse.
Salem Council on Aging
Project Lifesaver $473.03 FY13 - - Purchase of electronic bracelets,
enrollment, and/or annual fee.
19
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted Program Impact
Salem YMCA
School Age Child Care Program $10,000.00 $10,000.00 242 youth
Provided child care 5 days per week
(85 days over 4 months), including
educational and enrichment
activities, as well as swimming and
field trips.
Salem Access Television
Youth in Action $4,800.00 $4,800.00 14 youth
Provide a minimum 36 hour
training course for youth age 12-17
including television, field and studio
productions, scripting and
storyboarding. Youth completing
the course received a certificate of
course completion and the group
completes a video related to their
experience at the Boys & Girls
Club, which is broadcast on SATV.
Independent Living Center
Accessible Housing Education
Services Program
$4,800.00 $4,800.00
46 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 4
placements/relocations to
accessible housing. They assisted
more than 31 consumers to
complete and submit subsidized
housing applications (including
Section 8 and other Housing
Authority applications). Universal
housing application assistance
workshops were typically held once
per month.
North Shore Community Action
Program
Salem Cyberspace Cyberyouth
$4,800.00 $4,800.00 64 youth
Assisted 66 Salem teens in high
school and college, meeting with 41
high school students at least 3 hours
per week, 10 college freshmen at
least 3 hours per month and 15
college sophomores at least 1 hour
per month. As a result, 37
applications to college were
submitted, 17 applications for
financial aid were filed and 18
students took college entrance
exams.
Salem Council on Aging
Transportation Program
$5,181.66
FY13;
$10,300 FY14
$15,249.63 206 seniors
Provided transportation for seniors
to Council on Aging (3304), medical
(3280), shopping (2301), YMCA
(197), bank (52), hairdresser (183),
library (165), events/activities
(1246) and other/unknown (130).
NSCAP
Homeless Prevention Program $10,800.00 $10,800.00 80 persons
Assisted 33 families (16 families
with utility arrearages and 14
families with rent arrearages),
allowing all to maintain their
tenancies. They also provided
short-term motel stays for 3 Salem
families who were fire victims.
20
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted Program Impact
Fire Victims Emergency Housing $3,503.04 $3,503.04 19 Emergency hotel stays for 5 families
for 4 nights.
Wellspring House
MediClerk Program
$512.50
FY13;
$3500 FY14
$4,012.50 12 persons
13 week training courses. 8
students graduated from the
program. 4 of the 8 have been
placed in jobs (3 in local hospitals
or medical practices) and the
remaining 3 are interviewing.
TOTAL PERSONS ASSISTED 9,053 persons,
including at least 722 children/youth & 206 seniors
Evaluation of Goals
As stated before, Public Service activities allow us to provide direct services to our low- and moderate-
income residents. Our FY14 Action Plan goal was to provide approximately 25 new grants and serve
an estimated 10,000 persons. We executed agreements for 23 new grants. Through these new grants
and carried over open contracts, we assisted 9,053 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.
Power Hour at the Boys & Girls Club
21
Pia
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 14, 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 was not immune from the recent economic
crisis and resulting job losses. That being said, since 2010 the
city’s unemployment rate has steadily improved. The Salem
unemployment rate as of June 2014 is 5.6 percent6.
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
6 Massachusetts Executive Office of Labor and Workeforce Development, Department of Unemployment Assistance
22
The Storefront Improvement Program is designed to encourage private investment and
reinvestment by new and existing property/business owners in the eligible neighborhood and
downtown commercial districts. The program provides design assistance and offers a one-to-one
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: FY14 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.
$28,635.87 $2,700 CDBG spent
1 Storefront assisted
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.
$69,363.53 $20,370 CDBG spent
1 business 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 Flying Saucer
Pizza resulting in 2
new full time jobs
documented
Assisted 11 new
businesses and 18
existing businesses (
including 12 micro-
enterprises)
Economic
Development
Program
Delivery
Costs associated with providing
Economic Development programs
and administration of the Salem
Redevelopment Authority.
$77,526.51
$77,526.51 CDBG
spent
2 new jobs at Red Line
Café documented
Evaluation of Goals
In FY14, 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 29 new or existing businesses,
including 12 micro-enterprise businesses. While not exceeding our FY14 Action Plan goal of
assisting 20 microenterprises, over four years they have already exceed the five year goal of assisting
100 microenterprises. Events included the Farmer's Market, Salem Winter Farmer's Market,
23
Haunted Happenings, Holiday Tree, Tree Lighting, Holiday Wreaths, Holiday Window Decoration
Contest and Santa’s Arrival events, New Year’s Eve Salem “Launch”, Salem So Sweet Festival,
Salem Film Festival, PEM/PM Artopia, and the Salem Arts Festival
The DPCD also provides technical assistance through our Economic Development (ED) Planner,
who administers the City’s financial assistance programs and provides administration to the Salem
Redevelopment Authority, which oversees the Urban Renewal Area.
In total, $125,596.51 in CDBG funds was spent during the program period for economic
development activities.
During FY14, DPCD’s Economic Development Planner worked on several significant
redevelopment projects, including:
The approval of a schematic design for a proposed mixed-use development to be built at the
southern edge of Salem’s downtown by the City’s Design Review Board and Salem
Redevelopment Authority. The ED Planner worked with the developer/applicant on all
required information needed for Board submissions. The development currently calls for an 80 -
100 room hotel, ground floor retail, commercial and residential on upper levels, and an
approximately 265 space parking garage.
The approval of a final design for a 13 unit condominium development that represents the
second phase of redevelopment for the “Old Salem Jail,” which was previously owned by Essex
County and then transferred to the Salem Redevelopment Authority. The ED Planner worked
on all submissions needed for Design Review Board and Salem Redevelopment Authority
Approval. The rest of the jail complex currently hosts other residential units and a ground floor
restaurant establishment.
The restoration of the Salem Town Pump Fountain, which sits at the head of the City’s Essex
Street Pedestrian Mall in the Urban Renewal District. The work, which will be completed in fall
of FY15, includes updating the fountain’s plumbing infrastructure, providing lighting, shrinking
its basin, installing etched concrete, new grating, a new brick plaza, and cleaning existing
concrete and bronze features. The work is being funded by City and CDBG funds and the ED
Planner is overseeing all contractor activity.
Another major development moving forward that will benefit future redevelopment efforts for
Salem’s downtown is the MBTA station and parking garage that is currently under construction.
The new Salem Station and Parking Garage started construction in FY14 and will be fully accessible
with a new 9-car high level platform and a lobby with two elevators in compliance with the
Americans with Disabilities Act (ADA). The new parking garage is being designed with 714 spaces.
The garage will include parking for electric vehicles, accessible parking on each level, zip car parking,
motorcycle and bicycle parking, and a parking control system. The facility has been designed to
comply with Executive Order 484 — Leading By Example: Clean Energy and Efficient Buildings.
The garage is designed to use natural day-lighting and energy efficient lighting with an energy saving
lighting control system. Construction of this facility is due to be complete in October, 2014.
In March of 2014, the City of Salem was awarded a “Working Cities Challenge” grant in the amount
of $100,000. The program, which is managed by the Federal Reserve Bank of Boston, will allow the
City to address poverty, unemployment, and civic engagement in its lowest income and majority
immigrant neighborhood, “the Point.” The Economic Development Planner has been a point -
person in coordinating all aspects of grant administration and programming with partners such as
24
the North Shore Workforce Investment Board, the North Shore Community Development
Coalition, the North Shore Medical Center, and Salem State University (including its Enterprise
Center). Activities include an English language learning program that focuses on teaching
vocabulary used in emerging industries such as healthcare and manufacturing; the development of a
retail market analysis of the major commercial corridors in the Point neighborhood; and leadership
and civic engagement activities geared to encourage Point residents to better involve themselves in
City initiatives and to vote. Grant activities will be completed by the end of FY15.
During FY14, the ED Planner continued to collaborate with the Enterprise Center at Salem State
University and the Small Business Development Center to provide technical assistance to
entrepreneurs. In particular, as a complement to the Working Cities Challenge initiative described
above, the ED Planner worked with the Small Business Development Center to plan a set of
microenterprise technical assistance modules that will be taught in Spanish in the Point
neighborhood. Topics include how to start a business, business financing, pricing products and
services, and sales and marketing. The program will be executed in the fall of 2014.
The Economic Development Planner collaborated with the Salem Chamber of Commerce on
several economic development topics including downtown transportation, business recruitment and
retention, and the development of policy suggestions for the City to consider that will streamline
permitting for small businesses.
Table 4: Active Economic Development Loans in FY14 & Additional Job Monitoring
Type of Loan Project Amount of
Loan Total Jobs Monitored
Microenterprise
Assistance - - -
Special Economic
Development
Village Tavern $50,000 Total 11 FTE created
Bioengineering/River Wharf Realty $12,000 8 jobs retained
Two Girls Shop, LLC (Pia) $20,000 To be monitored in FY15
Note: LMI is low- and moderate-income
25
15 Ward Street
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 FY14. 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: FY14 Neighborhood Improvement Financial Summary
Activity CDBG Funds
Available in FY14
CDBG Funds
Spent in FY14 Status
Section 108 Loan Payments – South
Harbor Garage $37,705.50 $37,705.50 Complete
NSCDC Acquisition of 15 Ward St. $23,143.38 $23,143.38 Complete
Gallows Hill Park $9,472.52 $9,472.52 Complete
Memorial Park Improvements $4,413.60 $4,413.60 Complete
Palmer Cove Park Improvements $762.00 $762.00 Complete
Splaine Park improvements $128,609.56 $37,195.04 Underway
Teen Resource Center $30,210.11 $30,198.24 Underway
Pedestrian Mall Fountain $103,100.49 $3,100.49 Underway
Street Improvements (i.e. sidewalks,
curbcuts, paving & crosswalks) $118,607.54 $32,420.00 Ongoing
Tree Planting Program $4,002.51 $232.37 Ongoing
Lafayette Park Improvements $100,218.85 $218.85 Planning
Pedestrian Mall Improvements $87,000.00 $0 Planning
Point Visioning Projects $50,000.00 $0 Planning
NSCDC 15 Ward St. Park Improve. $20,000.00 $0 Planning
Historic Sign installation $7,500.00 $0 Planning
MaryJane Lee Playground (testing) $6,400.00 $0 Planning
Evaluation of Goals
During the program period, we continued to work on important neighborhood projects, and spent a
total of $178,861.99, including program delivery costs, toward meeting the goals in the FY14 Action
Plan and 5 year Consolidated Plan.
Completed projects during FY14 include assistance to North Shore CDC to purchase 15 Ward
Street, which will be redeveloped into a local park, along with park improvements at Gallows Hill
26
Park, Memorial Park and Palmer Cove Park. Improvements at Splaine Park and to the Teen Center
located in Palmer Cove Park were substantially complete at the end of FY14. Also underway is the
reconstruction of the Pedestrian Mall Fountain. This year, the City also made the final payment on
its Section 108 loan.
Trees were planted on Palmer Street (from Harrison Ave. to Perkins Street), as well as one planted
in front of the Teen Resource Center on Leavitt Street with CDBG funds and a TD Green Street
Grant. The program included $10,000 for educational training and outreach and $10,000 for trees.
Sidewalk replacement was completed at Harbor, Ward, Peabody, Dow, Palmer and Leavitt Streets.
Lafayette Park improvements, additional pedestrian mall improvements, Point Neighborhood
visioning projects, historic sign installation and testing at MaryJane Lee Playground are a ll in the
planning stage and these funds will be carried over to FY14 along with the ongoing street
improvements and tree planting.
Memorial/Irzyk Park Basketball Court
27
Greenlawn Cemetery
Orne Street entrance
PLANNING & ADMINISTRATION
In the Consolidated Plan, our priority
administrative 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 FY14, we provided matching funds toward
a Massachusetts Historical Commission Survey
(MHC) and Planning Grant to nominate Greenlawn
Cemetery to the National Register of Historic
Places (the nomination has been submitted to
MHC). Funds were also used to prepare bid
specifications for work to begin on the Dickson
Memorial Chapel. Funds have been set aside for a Survey and Planning Grant to prepare a new
Preservation Master Plan.
In FY1, we spent a total of $204,015.95 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: FY14 Planning & Administration Financial Summary
Activity CDBG Funds
Available
CDBG Funds
Spent
Survey & Planning Grant – Greenlawn Cemetery $3,750.00 $3,750.00
Greenlawn Cemetery – Chapel Specifications $15,100.00 $7,270.75
Survey & Planning Grant – Preservation Master
Plan $8,500.00 $0
General Administration - Non-salary $9,421.12 $9,421.12
General Administration - Benefits $37,895.71 $37,895.71
General Administration - Salary $145,678.37 $145,678.37
28
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 mixed use component, thus paving the way
for the development of 51 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 den ied
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 Housing Rehabilitation Loan Program.
Through the Salem Housing Rehabilitation Loan and Get the Lead Out Programs, the City provides
29
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.
CDBG and other funds are used to pursue an anti-poverty strategy carried out by the City and a
variety of social service subrecipients. The City’s anti-poverty strategy 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.
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
30
arising as a result of these reviews. The DPCD continuously works to improve upon its methods
and procedures for the administration of its programs.
This year, the DPCD also completed a Downtown Renewal Area Slums and Blight Assessment, in
order to demonstrate that the Downtown is still eligible for CDBG activities on an Urban Renewal
Area basis. Through the assessment, the City recorded and documented the building conditions of
every parcel in the Downtown, along with the presence of any commercial parcels with high
vacancy, high turnover, and/or low property values. The results of these efforts show that 38% of
parcels in the Downtown are in a substandard or undesirable condition, meeting one or more of the
conditions set forth in Title 24, Part 570.208 par (b) (1). Consequently, the City of Salem has
determined that the Downtown remains eligible to receive CDBG funds on an area basis.
Information on file includes a report, map, building conditions survey data and photographic
documentation of each of the surveyed parcels
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.
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.
31
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
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.
32
SUMMARY/PROGRAM EVALUATION/CONCLUSIONS
Overall, we made significant progress toward meeting the goals of our 5-year Consolidated Plan and
FY14 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 FY14:
51 units of new affordable rental housing created
1 family assisted to purchase their first home in Salem;
6 housing units were renovated, with an additional 3 projects underway;
41 families received assistance with first/last month’s rent and/or security deposits;
24 social service programs assisted 9,053 persons, including at least 722 youth and at least
206 seniors;
1 business provided with an economic development loan;
1 business assisted with storefront improvement;
5 new jobs documented; 8 existing jobs retained
Salem Main Streets Program highlights:
o Assisted 11 new and 18 existing businesses (including 12 micro-enterprises);
o 1 business assisted resulting in documentation of 2 new full time jobs;
o Salem Farmers' Market;
o Winter Farmers’ Market;
o Haunted Happenings;
o Holiday Happenings (holiday tree, tree lighting, holiday wreaths, holiday window
decoration contest, Santa’s arrival);
o New Year’s Eve Salem “Launch”
o PEM/PM Artopia
o Salem So Sweet Festival;
o Salem Film Festival; and
o Salem Arts Festival.
15 Ward Street acquired by a non-profit to be developed into neighborhood park;
Gallows Hill Park gazebo roof and stabilization work completed;
Memorial Park/Irzyk basketball court improvements completed;
13 trees planted in low-mod neighborhoods;
Sidewalk replacement completed at Harbor, Ward, Peabody, Dow, Palmer and Leavitt
Streets.
Section 108 final loan payment completed; and
Completion of nomination of Greenlawn Cemetery 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
saw significant decreases in our CDBG allocation - 23.5% decrease in CDBG from FY11 to FY15
(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 - 55% decrease in HOME from FY11
to FY14. 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, we are proud of the accomplishments made.
33
CDBG funds help leverage additional funds for some of our projects, including our First Time
Homebuyer Program, Salem Main Streets and public service agency programs. Splaine Park
Improvements are substantially complete, which is using additional grant funds leveraged by CDBG.
POUA leveraged significant HOME funds to complete the first phase of the redevelopment of the
former St. Joseph’s complex.
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, 25 and
27, including funds available and funds expended. These activities may include funding from one or
more plan years.
The Financial Summary Grantee Performance Report (Form #4949.3) - or the PR26 in IDIS - is
recreated in the CAPER in the Appendix.
34
In this section, as part of our reporting requirements for HUD, we provide a supplementary
narrative that answers specific questions regarding our program expenditures and activities.
Use of CDBG Funds
In FY14, CDBG expenditures complied with the goals and objectives outlined in the FY14 Action
Plan and 5-Year Consolidated Plan. More detailed information on the use of these funds can be
found in the Assessment of Five Year Goals and Objectives section of this report.
Changes to Program Objectives
During the program period it may be beneficial to revise the Annual Action Plan in order to reflect
changes in priority needs and goals. There were no revisions undertaken for the FY14 Action Plan.
However, a Consolidated Plan Amendment was undertaken in order for HUD to consider approval
of a Neighborhood Revitalization Strategy (to be submitted with the FY15 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 R ehabilitation
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 FY14, the City of Salem pursued all resources indicated in its FY14Action 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 FY14, 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
35
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 FY14, the City of Salem funded several activities that served limited clienteles. For example,
funds were expended on 24 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 FY14. The total program income was $115,968.75.
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 FY14 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 FY14.
Performance Measurement
The DPCD uses several strategies for performance measurement and continues to review and
enhance its performance measurement system. Specifically, Salem has implemented a performance
measurement system in the following program areas:
Public Services - Public service contracts include performance measurement indicators. The annual
CAPERs outline the effectiveness of those measurements. Specifically, the City requires
subcontracted social service agencies to report on the impact of their programs as measured by the
performance indicators. Internally, a spreadsheet is maintained which tracks the receipt of monthly
reports and the status of on-site monitorings. Public service agencies are required to submit
reimbursement requests that are tied to pre-determined benchmarks or performance outcomes, as
well as proof of expenditure of funds.
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 tra cks 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
36
Management Policy for review of existing loans and process to address delinquent, default or
uncollectable loans.
Economic Development – A quarterly report is provided to the City’s Finance Department on new
loans issued, loan status and loan discharges. Monitoring of job creation is determined by the time
period in the funding Agreement. Monitoring consists of verification that the goals for
low/moderate income jobs to be created and/or retained have been met. A standard monitoring
form is used. The Economic Development Planner follows the Loan Management Policy for review
of existing loans and process to address delinquent, default or uncollectable loans.
Additionally, the City ensures long-term compliance with program requirements, including minority
business outreach and comprehensive planning requirements, in several ways. In particular, the
DPCD has a Monitoring Plan, 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.
This year the Assistant Community Development Director participated in the following webinars:
o December, 2013 – Section 3 Reporting System
o January, 2014 – eCon Planning Suite
o March, 2014 – Allocating Staff Costs Between Administrative and Activity Delivery Costs
Trainings attended by the Housing Coordinator at listed in the Housing section of this report.
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 FY14, the City of Salem spent $67,905.60 in HOME funds. Funds were used to help fund
the creation of 51 units of affordable housing at the former St. Joseph’s complex, housing
rehabilitation for one family and to fund the Rental Downpayment Assistance Programs
administered by the North Shore Community Action Programs, Inc., HAWC and Citizens for
Adequate Housing. The accomplishments of these projects can be found in the reports submitted
by the City of Peabody on behalf of the Consortium.
In addition, $325,000 was spent in FY13 (not reported in the FY13 CAPER), toward the creation of
51 units of affordable housing at the former St. Joseph’s Church site. The units were completed in
FY14 and are now occupied.
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.
37
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 FY14
(plus funds expended for the former St. Joseph’s development) and the funds leveraged through
these expenditures.
Table 8: FY14 Funds Leveraged
Program CDBG
Expenditures
HOME
Expenditures
Funds from Other
Sources
Housing Programs $206,236.29 $392,905.60 $4,891,500.00
Public Services $180,031.51 - $3,735,428.90
Economic Development $125,596.51 - $57,413.33
Neighborhood Improvements7 $178,861.99 - $1,238,440.00
Planning & Administration $204,015.95 -
$474,350.04
TOTAL FY11 $894,742.25 $392,905.60 $10,397,132.27
TOTAL FUNDS LEVERAGED PER HUD DOLLAR: $8.07
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
$7500 in matching funds as well as obtained $124,000 in financing from a primary lender.
The St. Joseph’s Church Complex Redevelopment Project leveraged a $550,000 loan from
DHCD under the HOME Program, $1,215,000 loan from DHCD under the AHT Statute,
$500,000 loan from CEDAC under the CBH Program, $1,000,000 loan from DHCD by MHP
under the HSF Program, $1,000,000 loan from DHCD by MHP under the CATNHP Program,
and a $495,000 loan from the HOME Consortium.
Economic Development:
The Salem Main Streets Program leveraged $57,471.33. Of this total, $13,960.33 was business
contributions and miscellaneous donations and $43,510.40 was from program income from
events such as the Farmer’s Market, Salem So Sweet Festival and Salem Arts Festival.
Neighborhood Improvements:
CDBG funds were used as a match to a $20,000 TD Bank grant which purchased and installed
12 trees on Palmer Street from Harrison Ave. to Perkins Street and one tree on Leavitt Street
7 Includes Section 108 loan payment as a CDBG expense.
FUNDS LEVERAGED
38
fronting the OnPoint Teen Center. The TD Bank grant also included educational training and
outreach ($10,000 of the $20,000).
CDBG funds for the Pedestrian Mall Fountain project are leveraging $84,000 in local Capital
Improvement funds and $83,500 in other City funds.
The Splaine Park Improvement Project is leveraging $420,946 in State PARC grant funds,
$574,826 from local Capital Improvement funds, $6,000 from the City’s Park & Recreation
Department, $42,500 from MassDevelopment’s Brownfield Assessment Program and $6,668 in
donations.
Planning & Administration:
Planning and administration funds leveraged $338,164.22 in City funds plus $66,283.87 in
benefit costs and $69,901.95 in State Seaport Advisory Council funds
The Greenlawn Cemetery National Register Nomination leveraged $3,750 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 $3,735,428.90 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
39
The goals and purpose of the Citizen Participation Plan is to encourage residents, agencies, and
other interested parties to participate in the development of our 5-Year Consolidated Plan and
Annual Action Plans and to comment on our accomplishments. The strength of our programs
comes from the high number of volunteers that inform our decisions.
The Citizen Participation Plan included in the 5-Year Consolidated Plan is the framework we used
to solicit public comment, as well as to provide guidance on our response to citizens’ comments on
our programs throughout the year.
Public Comment Period
Copies of the FY14 CAPER were made available to the public throughout the 15-day comment
period and every effort was made to solicit citizens’ comments including posting the availability of
the report in the Salem Evening News, the City of Salem Official Bulletin Board at City Hall and at
the City Hall Annex through the Clerk’s Office, Salem Public Library, Salem Housing Authority and
on the City’s website. Copies were available for review at the DPCD, Salem Public Library and
Salem Housing Authority and on the City’s website (a copy of w hich 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
FY14 Consolidated Annual Performance and Evaluation Report
1 Summary of CDBG Resources
2 FY13 End of Year Balance $ 747,527.85
3 FY14 CDBG Entitlement $ 968,058.00
4 Program Income, FY14 $ 115,968.75*
5 Total CDBG funds available for use in FY14 $ 1,831,554.60
6 Summary of CDBG Expenditures
7 Affordable Housing $ 206,236.29
8 Public Services $ 180,031.51
9 Neighborhood Improvements (not including CDBG-R) $ 141,156.49
10 Economic Development – Note: amount was reduced by $20,000 to reflect canceled
loan funds returned $ 125,596.51
11 Planning & Administration $ 204,015.95
12 Section 108 Repayment (in CAPER narratives under neighborhood improvements) $ 37,705.50
13 Total Expenditures $ 894,742.25
14 Year-End CDBG Resources
15 Total CDBG funds available for use in FY14 $ 1,831,554.60
16 Total Expenditures in FY14 $ 894,742.25
17 Unexpended Balance (CDBG Budget) $ 936,812.35
18 Low/Mod Credit
19 Total FY14 CDBG Expenditures $ 894,742.25
20 Total for Program Administration $ 204,015.95
21 Total for Section 108 Repayments $ 37,705.50
22 Total subject to Low/Mod Benefit Calculation $ 653,020.80
23 L/M Credit for multi-unit housing $ 70,725.00
24 L/M Credit for other activities $ 579,195.31
25 Percent of benefit to low/mod persons 99.53%
26 Public Services Cap Calculation
27 Net obligations for FY14 Public Services Activities $ 162,878.04
28 FY14 Entitlement + FY13 Program Income $ 1,086,112.87
29 Percent obligated PS Activities 14.996%
30 Planning and Program Administration Cap Calculation
31 FY14 Entitlement + FY14 Program Income $ 1,084,026.75
32 Net Obligations for Planning/Admin. Activities $ 216,345.20
33 Percent of funds expended 19.96%
FINANCIAL SUMMARY
34 HOME Summary
35 HOME Project Expenditures $ 383,627.00
36 Salem HOME Administration (including fee/inspection reimbursements) $ 9278.60
37 Total HOME Expenditures $ 392,905.60
*Note: Program income of 16.24 entered into IDIS in FY14 was reported in the FY13 CAPER. Program income
of $34.35 entered into IDIS in FY15 is being reported in this CAPER (FY14). Therefore the net adjustment to
compute total program income is +$18.11.
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 51 51 31
40 Units Housing Rehabilitation (CDGB/HOME)40 17 7 9 6 39 (1)
80 Direct homeownership assistance (CDBG/HOME)80 7 5 3 1 16 (64)
375 Rental Housing subsidies (HOME)375 47 58 62 41 208 (167)
20 Commercial building acquistion, construction,
rehabilitation (including storefront improvements)20 1 0 1 1 3 (17)
5 Direct Financial Assistance for For-Profits 5 2 1 1 1 5 0
100 Micro-enterprise assistance 100 34 28 22 12 96 (4)
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 0 7 5
2 parks/playgrounds (MJL sand)2 0 1 0 3 4 2
65 Trees planted 65 8 25 61 13 107 42
1 Senior Center 1 0 0 0 0 0 (1)
12 Street/sidewalk improvements (including Bike Path
striping, Derby curbcuts)12 19 1 1 6 27 15
Public Services 50,000 persons assisted 50000 11895 9142 9201 9045 39283 (10717)
Public Facilities &
Improvements
Economic
Development
PROGRESS OF CONSOLIDATED PLAN 5-YEAR GOALS
CDBG funds unless otherwise noted
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:
TIME:
PAGE:5
10:59
09-25-14
CDBG Summary of Accomplishments
Program Year: 2013
SALEM
CDBG Beneficiaries by Racial / Ethnic Category
Housing-Non Housing Race
Source Type
(for Funding
Fact Source)
Metrics
Total Persons
Total Hispanic
Persons Total Households
Total Hispanic
Households
Housing
Non Housing
Grand Total
White
Total Housing
White
Black/African American
Asian
American Indian/Alaskan Native
Native Hawaiian/Other Pacific Islander
American Indian/Alaskan Native & White
Asian & White
Black/African American & White
Amer. Indian/Alaskan Native & Black/African
Amer.
Other multi-racial
Total Non Housing
White
Black/African American
Asian
American Indian/Alaskan Native
Native Hawaiian/Other Pacific Islander
American Indian/Alaskan Native & White
Asian & White
Black/African American & White
Amer. Indian/Alaskan Native & Black/African
Amer.
Other multi-racial
Total Grand Total
MC
MC
MC
MC
MC
MC
MC
MC
MC
MC
MC
MC
MC
MC
MC
MC
MC
MC
MC
MC
MC
0 0 9 2
0 0 9 2
1,504 419 0 0
193 88 0 0
18 7 0 0
8 6 0 0
7 6 0 0
1 0 0 0
2 0 0 0
111 54 0 0
3 2 0 0
417 356 0 0
2,264 938 0 0
3,604 1,191 9 2
1,160 904 0 0
41 7 0 0
11 6 0 0
7 6 0 0
1 0 0 0
2 0 0 0
153 83 0 0
6 2 0 0
534 446 0 0
5,519 2,645 9 2
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:
TIME:
PAGE:6
10:59
09-25-14
CDBG Summary of Accomplishments
Program Year: 2013
SALEM
Income Levels ST MetricsOwner Occupied Renter Occupied Persons
Housing
Non Housing
Extremely Low (<=30%)
Low (>30% and <=50%)
Mod (>50% and <=80%)
Total Low-Mod
Non Low-Mod (>80%)
Total Beneficiaries
Extremely Low (<=30%)
Low (>30% and <=50%)
Mod (>50% and <=80%)
Total Low-Mod
Non Low-Mod (>80%)
Total Beneficiaries
MC
MC
MC
MC
MC
MC
MC
MC
MC
MC
MC
MC
0 1 0
4 0 0
3 0 0
7 1 0
0 0 0
7 1 0
0 0 1,274
0 0 202
0 0 372
0 0 1,848
0 0 35
0 0 1,883
CDBG Beneficiaries by Income Category
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:
TIME:
PAGE:1
11:16
09-25-14
PR54 - SALEM,MA
CDBG Community Development Block Grant Performance Profile
Program Year From 07-01-2013 To 06-30-2014
Program Year 2013 Funds
Expenditures by Type of Activity (%)Expenditures by Type of Activity ($)
1
2
2013 CDBG Allocation
Program Income Receipted During Program Year 2013
Total Available
$968,058.00
$115,950.64
$1,084,008.64
Expenditures
Type of Activity Expenditure Percentage
Acquisition
Economic Development
Housing
Public Facilities and Improvements
Public Services
General Administration and Planning
Other
Repayment of Section 108 Loans
Total
$23,143.38 2.59%
$125,596.51 14.04%
$206,236.29 23.05%
$114,912.62 12.84%
$180,031.51 20.12%
$204,015.95 22.80%
$3,100.49 0.35%
$37,705.50 4.21%
$894,742.25 100.00%
Timeliness
Timeliness Ratio - unexpended funds as percent of
2013 allocation
1.15
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:
TIME:
PAGE:2
11:16
09-25-14
PR54 - SALEM,MA
CDBG Community Development Block Grant Performance Profile
Program Year From 07-01-2013 To 06-30-2014
Program Targeting
3
1 -Percentage of Expenditures Assisting Low-
and Moderate-Income Persons and Households
Either Directly or On an Area Basis
2 -Percentage of Expenditures That Benefit
Low/Mod Income Areas
3 -Percentage of Expenditures That Aid in The
Prevention or Elimination of Slum or Blight
5 -Funds Expended in Neighborhood
(Community For State) Revitalization Strategy
Areas and by Community Development
Financial Institution.
6 -Percentage of Funds Expended in
Neighborhood (Community For State)
Revitalization Strategy Areas and by Community
Development Financial Institution
99.53%
23.10%
0.47%
$0.00
0.00%
4 -Percentage of Expenditures Addressing
Urgent Needs 0.00%
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:
TIME:
PAGE:3
11:16
09-25-14
PR54 - SALEM,MA
CDBG Community Development Block Grant Performance Profile
Program Year From 07-01-2013 To 06-30-2014
CDBG Beneficiaries by Racial/Ethnic Category 4
Race Total Hispanic
Unspecified ¿ DO NOT USE
White
Black/African American
Asian
American Indian/Alaskan Native
Native Hawaiian/Other Pacific Islander
American Indian/Alaskan Native & White
Asian & White
Black/African American & White
Amer. Indian/Alaskan Native & Black/African Amer.
Other multi-racial
Asian/Pacific Islander (valid until 03-31-04)
Hispanic (valid until 03-31-04)
0.00%0.00%
63.22%43.28%
22.40%35.41%
0.80%0.27%
0.19%0.24%
0.14%0.24%
0.02%0.00%
0.02%0.00%
2.84%3.25%
0.08%0.00%
10.30%17.31%
0.00%0.00%
0.00%0.00%
Income of CDBG Beneficiaries
Income Level Percentage
Extremely Low Income (<=30%)
Low Income (30-50%)
Moderate Income (50-80%)
Total Low and Moderate Income (<=80%)
Non Low and Moderate Income (>80%)
87.66%
4.33%
7.32%
99.32%
0.68%
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:
TIME:
PAGE:4
11:16
09-25-14
PR54 - SALEM,MA
CDBG Community Development Block Grant Performance Profile
Program Year From 07-01-2013 To 06-30-2014
Accomplishment Number
Actual Jobs Created or Retained
Households Receiving Housing Assistance
Persons Assisted Directly, Primarily By Public Services and Public Facilities
Persons for Whom Services and Facilities were Available
Units Rehabilitated-Single Units
Units Rehabilitated-Multi Unit Housing
5
8
5,130
23,417
3
4
5
Program Year 2013 Accomplishments
$760,798.64
1 Also, additional funds may have been available from prior years.
2 The return of grant funds is not reflected in these expenditures.
3 Derived by dividing annual expenditures for low-and moderate-income activities by the total expenditures for all activities (excluding planning and administration,
except when State planning activities have a national objective) during the program year.
4 For entitlement communities, these data are only for those activities that directly benefit low- and moderate-income persons or households. They do not include
data for activities that provide assistance to low- and moderate-income persons on an area basis, activities that aid in the prevention and elimination of slums and
blight, and activities that address urgent needs. For states, these data are reported for all activities that benefit low- and moderate-income persons or households, aid
in the prevention and elimination of slums and blight, and address urgent needs.
5 This number represents the total number of persons/households for whom services/facilities were available for [in many cases] multiple area benefit activities as
reported by grantees. A service or facility meeting the national objective of benefiting low- and moderate-income persons on an area basis is available to all residents
of the area served by the activity. If one or more activities had the same or overlapping service areas, the number of persons served by each activity was used to
calculate the total number served; e.g., if two activities providing different services had the same service area, the number of persons in the service area would be
counted twice; once for each activity.
Notes
Funds Leveraged for Activities Completed
MAPS
Low to Moderate Income Areas (HUD has instructed communities to continue to use the boundaries
from the 2000 census through 6/30/14).
Geographic Distribution of Entitlement Funds Expended FY14
form HUD-60002 (6/2001)
ref 24 CFR 135
Section 3 Summary Report
Economic Opportunities for
Low- and Very Low-Income Persons
See back of page for Public Reporting Burden statement
OMB Approval No. 2529-0043
(exp. 8/31/2007)
U.S. Department of Housing
and Urban Development
Office of Fair Housing
and Equal Opportunity
ABCDE**F**
Number of Number of New % of Aggregrate Number % of Total Staff Hours Number of Section 3
Job Category New Hires Hires that are of Staff Hours of New Hires for Section 3 Employees Employees
Sec. 3 Residents that are Sec. 3 Residents and Trainees and Trainees
Professionals
Technicians
Office/Clerical
Construction by Trade (List)
Trade
Trade
Trade
Trade
Trade
Other (List)
Total
Part I: Employment and Training (** Include New Hires in columns E & F.)
1. Recipient Name & Address: (street, city, state, zip) 2. Federal Identification: (contract/award no.) 3. Dollar Amount of Award:
4. Contact Person: 5. Phone: (include area code)
6. Reporting Period: 7. Date Report Submitted:
8. Program Code: * (Use a separate sheet 9. Program Name:
for each program code)
HUD Field Office:
*Program Codes
1 = Flexible Subsidy
2 = Section 202/811
3 = Public/Indian Housing
A = Development,
B = Operation
C = Modernization
4 = Homeless Assistance
5 = HOME
6 = HOME-State Administered
7 = CDBG-Entitlement
8 = CDBG-State Administered
9 = Other CD Programs
10= Other Housing Programs
Page1 of 2
form HUD-60002 (6/2001)
ref 24 CFR 135
Part III: Summary
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. (Check all that apply.)
____ Attempted to recruit 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.
____ Participated in a HUD program or other program which promotes the training or employment of Section 3 residents.
____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.
____ Coordinated with Youthbuild Programs administered in the metropolitan area in which the Section 3 covered project is located.
____ Other; describe below.
Part II: Contracts Awarded
1. Construction Contracts:
A. Total dollar amount of all contracts awarded on the project $
B. Total dollar amount of contracts awarded to Section 3 businesses $
C. Percentage of the total dollar amount that was awarded to Section 3 businesses %
D. Total number of Section 3 businesses receiving contracts
2. Non-Construction Contracts:
A. Total dollar amount of all non-construction contracts awarded on the project/activity $
B. Total dollar amount of non-construction contracts awarded to Section 3 businesses $
C. Percentage of the total dollar amount that was awarded to Section 3 businesses %
D. Total number of Section 3 businesses receiving non-construction contracts
Public reporting burden for this collection of information is estimated to average 2 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.
Page 2 of 2
Section 3
FY14 (HUD FY13) Efforts
CDBG Activities
Splaine Park Improvements (as reported in FY12 & FY13)
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
CDBG funds were not expended for the construction work. However, CDBG contracts were
awarded for testing and clean up of environmental hazards in FY14. The project is still
underway.
Pedestrian Mall Fountain Redesign
This project was originally budgeted through the city’s Capital Improvement Plan and was not
subject to Section 3, although the Section 3 Clause and the Section 3 Certification for RFPs and
Sealed Bids (mandatory to be signed by all bidders) was included in the bid specifications.
Bid notices were sent to:
o Salem News – Legal notice
o Commonwealth of Massachusetts’ Central Register
o City of Salem website – Purchasing Department webpage
When the bids came in over budget, the city added $99,930 CDBG funding to the project. The
contractor awarded the project has been asked to report on Section 3 hiring when completed.
There were no other construction projects undertaken in FY14 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, Tufts, MassDevelopment, Massplanners listserve, MIT, MMA’s Beacon,
Linkin 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.
Notes
The total dollar award (Block 3) is the FY13/14 entitlement total.
Part II, totals for construction contracts are new (FY14) purchase orders that are related to
construction projects only, whether under or over $100,000. Included are Memorial Park
(Irzyk), street paving, Splaine Park (environmental clean up), pedestrian mall fountain, Gallows
Hill Park gazebo and the Teen Resource Center. Non-construction contracts include Teen
Resource Center FY12 purchases, Splaine Park environmental testing, Greenlawn Chapel
architectural fees and Mary Jane Lee Park splashpad testing. 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.