CDBG FY05 CONSOLIDATED PERFORMANCE AND ANNUAL EVALUATION REPORT
CONSOLIDATED ANNUAL PERFORMANCE
AND EVALUATION REPORT
CITY OF SALEM, MASSACHUSETTS
Fiscal Year 2005
July 1, 2004 to June 30, 2005
Stanley J. Usovicz, Jr., Mayor
Lynn Goonin Duncan, AICP, DPCD Director
Jane A. Guy, Assistant Community Development Director
Department of Housing and Urban Development
Office of Community Planning
COVER PAGE/CERTIFICATION Grantee Performance Report
Community Block Grant Program
1. PROGRAM YEAR END: 6/30/05 2. GRANT NUMBER: B04MC250029
3. NAME & ADDRESS OF GRANTEE:
City of Salem
93 Washington Street
Salem, MA 01970
4. NAME & ADDRESS OF CD DIRECTOR:
Lynn Goonin Duncan, Director
Dept. of Planning & Community Development
120 Washington Street
Salem, MA 01970
5. NAME & TELEPHONE NUMBER OF PERSON
MOST FAMILIAR WITH INFORMATION IN THIS
REPORT:
Jane Guy or Tania Hartford
978/745-9595 x311
6. NAME & TELEPHONE NUMBER OF PERSON TO
CONTACT ABOUT DISCLOSURES REQUIRED BY THE HUD
REFORM ACT OF 1989:
Jane Guy or Tania Hartford
978/745-9595 x311
7. Have these Community Development Block Grant (CDBG) funds been used:
a. to meet the community development program objectives in the final statement for this program year? If no, explain, in a narrative
attachment, how: (1) the uses did not relate to program objectives; and (2) future activities or program objectives might change as
a result of this year’s experiences.
YES
b. exclusively to either benefit low-and-moderate (low/mod) income persons, aid in the prevention or elimination of slums or blight,
or meet community development needs having a particular urgency? If no, explain in a narrative attachment.
YES
c. such that the grantee has complied with, or will comply with, its certification to expend not less than 70% of its CDBG funds,
during the specified period, on activities which benefit low/mod income person? If no, explain in a narrative attachment.
YES
8. Were citizen comments about this report and/or the CDBG program received?
See Citizen Participation Summary Section
9. Indicate how the Grantee Performance Report was made available to the public:
See Citizen Participation Summary Section
I hereby certify that: This report contains all required items identified above; Federal assistance made available under the Community
Development Block Grant Program (CDBG) has not been utilized to reduce substantially the amount of local financial support for
community development activities below the level of such support prior to the start of the most recently completed CDBG program
year; all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate.
Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties.
(18U.S.C.1001,1010,1012;U.S.C.3729,3802)
Typed Name and Title of Authorized Official
Representative:
Stanley J. Usovicz, Jr., Mayor
Signature:
_____________________________
Date:
_______________
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 2005, we expended over 1.5 million dollars 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 over $279,000 in HOME funds.
The FY05 Consolidated Annual Performance and Evaluation Report (CAPER) provides an analysis
of the fifth fiscal year of the Consolidated Plan—July 1, 2004 through June 30, 2005—for the City
of Salem. In this report, we are given the opportunity to demonstrate our progress and report our
successes over the past fiscal year. It also allows us 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 over the past fiscal year. As this report indicates, we made a
significant advancement in meeting the goals and objectives stated in the FY01-05 Consolidated
Plan and FY05 Annual 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, despite a significant
loss of housing staff, we were able to increase our expenditures in the Housing Rehabilitation Loan
Program and Rental Downpayment Assistance Program, maintain our expenditures in the First
Time Homebuyer Program and continue working towards implementing policies that will increase
affordable housing, rehabilitate homes in substandard condition, and help families purchase their
first home in neighborhoods throughout the City. Our economic development programs continue
to attract new businesses that create jobs in our city and 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, as indicated in our regular monitoring. 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 requirements imposed by HUD, as well as information that
may be of interest to our residents. The is broke 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 an overview of our expenditures. It
provides an overview of each program area including an assessment of goals and how activities
met the objectives laid out in the Consolidated Plan.
• Supplementary Narratives – As part of our reporting requirements for HUD, we must answer
certain questions regarding our program expenditures and activities. In this sections, we provide
a supplementary narrative that provides answers to these questions.
• Funds Leveraged – Another measure of the success of our program is the funds we leverage with
our two federal grants. This section includes a table outlining the funds leveraged from the two
federally funded programs—CDBG and HOME—in Salem.
• 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 a Financial Summary of our expenditures and location maps of our eligible
neighborhoods and urban renewal areas.
Contact Information
We are always open to hear feedback on our progress as well as 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 978-745-9595.
TABLE OF CONTENTS
EXECUTIVE SUMMARY
INTRODUCTION ..................................................................................................................................................1
ASSESSMENT OF GOALS AND OBJECTIVES .....................................................................................................3
Affordable Housing Programs ................................................................................................................4
Public Services ...........................................................................................................................................9
Economic Development ........................................................................................................................13
Neighborhood Improvements ..............................................................................................................16
Planning & Administration ....................................................................................................................18
Other Actions ..........................................................................................................................................19
Summary/Program Evaluation/Conclusions .....................................................................................23
SUPPLEMENTARY NARRATIVES ......................................................................................................................24
FUNDS LEVERAGED.........................................................................................................................................27
CITIZEN PARTICIPATION SUMMARY ..............................................................................................................29
APPENDIX
Financial Summary
Map
INTRODUCTION
The Consolidated Annual Performance and Evaluation Report (CAPER) is a summary of the annual
accomplishments produced by the City and its community partners, as the goals and objectives of
the Fiscal Years 2001-2005 (FY01-05) Consolidated Plan were implemented. The FY01-05
Consolidated Plan began on July 1, 2000. The FY05 CAPER provides an analysis of the fifth fiscal
year of the Consolidated Plan—July 1, 2004 through June 30, 2005—for the City of Salem.
In this report, we are given the opportunity to demonstrate our progress and report our successes
over the past fiscal year. It also allows us 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.
Program Goals
One of the overarching goals of the City of Salem is to offer a viable community for its low- and
moderate-income residents1 by providing decent housing, a suitable living environment, access to
services, and expanding economic opportunities. To accomplish this goal the City uses grants from
the U.S. Department of Housing and Urban Development (HUD)—Community Development
Block Grant (CDBG) and Home Investment Partnership Program (HOME) which are administered
through the Department of Planning and Community Development (DPCD). The following
describes each of the grants and their program objectives.
• CDBG is a formula-based program designed to develop viable urban communities by
providing decent housing, a suitable living environment, and expanding economic
opportunities for persons of low- and moderate-income.
• 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, 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.
1 Low- to moderate- income individuals equals less than 50 or 80 percent of the Boston area median income respectively.
1
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
be undertaken to address those needs and 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.
2
ASSESSMENT OF GOALS AND OBJECTIVES
During the past fiscal year, the DPCD celebrated many accomplishments and made significant
progress toward meeting the goals and objectives laid out in the FY01-05 Consolidated Plan and
FY05 Annual Action Plan. The Financial Summary of our expenditures (Appendix 1) illustrates our
compliance with program expenditure caps as well as expenditures by category (also see Figure 1).
CDBG Expenditures
In FY05, we expended $1,533,158.51 in CDBG funds. Expenditures were divided into five different
program areas — Planning & Administration, Public Services, Affordable Housing, Neighborhood
Improvements and Economic Development. During FY05, we met all our funding cap
requirements and program expenditures were consistent with our FY01-05 Consolidated Plan and
FY05 Annual Action Plan goals. Furthermore, Public Service programs reached just below 15
percent, the maximum allowable for such activities, and we met the 20 percent Administration
spending cap.
HOME Expenditures
In addition to the over $1.5 million dollars spent through the CDBG program, DPCD also spent
over $279,601.16 in HOME funds to undertake additional affordable housing activities. When
added to the over $510,000 spent in CDBG funds for affordable housing programs, the total
amount spent for housing is over $790,000 — representing the highest level of funding in any of our
programs.. The City of Salem is a member of the North Shore HOME Consortium and
accomplishments of this program are reported to HUD through the Consortium, lead by the City of
Peabody. A brief summary of our activities are reported throughout this report.
Fig. 1 FY05 Spending by Category, as a Percentage of Overall CDBG & HOME Expenditures
FY05 CDBG & HOME Expenditures by Category
Neighborhood
Improvements
19%
Affordable
Housing
48%
Economic
Development
8%
Public Services
13%
Planning &
Administration
12%
Note: Expenditures include staff time spent on each project area.
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 evaluates our
progress based on the needs outlined in the FY01-05 Consolidated Plan and FY05 Annual Action
Plan. The final section provides an overall evaluation of our programs.
3
AFFORDABLE HOUSING PROGRAMS
Salem, like most communities in
Massachusetts, is struggling with the
impacts of a strong real estate market and
a regional lack of affordable housing. This
has resulted in rapidly increasing property
values, burdensome rents and more
families at risk of homelessness. Due to
these demands, we have placed the
creation and preservation of affordable
housing as the highest priority of Salem’s
CDBG and HOME Programs. The City of
Salem has a number of services that
address the housing issues including,
rehabilitating and maintaining current
housing stock, developing new housing opportunities, assisting families in acquiring housing and
enabling struggling families to remain in their homes.
Before and after photographs of a home assisted through the City’s
Housing Rehabilitation Loan Program.
As stated before, in FY05 the City of Salem spent over $750,000 in CDBG and HOME funds on
affordable housing projects and programs. The project accomplishments obtained with these funds
during FY05 are described in the following table. In addition, the city continues to pay on a Section
108 loan that was used to fund the affordable housing in the Lincoln Hotel, which amounted to
approximately $59,495.86 in FY05.
Table 1: FY05 Housing Accomplishments
Program
Program Description
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.
• $119,434.50 CDBG funds spent
• 20 families assisted
• 23 total units
Home
Improvement
Loan Program
Provides a combination of technical and financial
assistance to help Salem’s low- to moderate-income
homeowners make much needed improvements to
their properties.
• $147,457.32 CDBG funds spent
• $246,494.16 in HOME funds
spent
• 11 owners assisted
• 16 units assisted
• 7 additional projects underway
Rental Assistance
Programs
Through the Rental Downpayment Assistance Programs
and Homeless Prevention Programs funds are used to help
low- and extremely low-income Salem residents
move into a rental unit or continue to live in their
rental unit.
• $43,815 in HOME funds spent
• 62 families assisted thru Rental
Downpayment Program
Assistance
Note: Homeless Prevention Programs
reported in the Public Services section of this
report utilizing CDBG funds.
4
Affordable
Housing
Development
Services
Provides funding to develop affordable housing on a
case-by-case basis. Included is the rehabilitation of
18 Crombie Street by Habitat for Humanity, which is
still underway.
• $159,227.94 CDBG funds spent
• 1 owners assisted
• 2 units assisted
• 1 additional project underway
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 FY05 Annual Action Plan. The following discuss the status of these
projects and the steps taken to achieve these strategies.
• Producing New Housing Units
One of the most important ways to address the issue of affordable housing is to increase the
supply of housing in the region. The Mayor has made developing new housing a priority, and
we have seen the conversion of old, abandoned or underutilized buildings and parcels into new
residential housing units. The result has been hundreds of new units of housing citywide.
Salem consistently provides support to the Salem Harbor CDC in an effort to create new
affordable housing units. Salem Harbor CDC sponsors a number of programs that not only
develop affordable rental housing, but also increase affordable homeownership opportunities. In
fiscal years 2004 and 2005, the city provided financial assistance toward the acquisition of a
former restaurant on Palmer Street that the CDC plans to development into 15 units of new
affordable housing that combines the neighborhood investment of homeownership
opportunities with much needed new rental units. This project is currently under review by the
Planning Board and is anticipated to receive approval by the end of September, 2005.
Construction should begin shortly thereafter.
• An Affordable Housing Fund
In 2003, the Mayor signed a Memorandum of Agreement with a housing developer which
resulted in a $50,000 contribution for affordable housing for activities including the
development of an affordable housing plan. These funds have recently been provided to the city
in order to begin this activity.
• Providing Property for Affordable Housing Production
Through a series of initiatives, the city will continue to provide property for the development of
affordable housing. The Mayor pledged to work with neighbors to identify individual parcels of
land that were once taken by tax title and may be appropriate for single- or two-family housing
development. Once identified, these parcels can be offered through an RFP process for the
development of an affordable home. Furthermore, funds for affordable housing are set aside
each year to provide resources for the city, or a nonprofit partner, which could be used to
acquire abandoned, derelict properties and turn them back into good homes.
5
The effort by the city, Salem Redevelopment Authority (SRA), and the community to preserve
the historic home at 18 Crombie Street for the redevelopment into an affordable home is an
example of the progress being made with this goal. In FY05, Habitat for Humanity began the
redevelopment of this historic home for the eventual ownership by a low- to moderate-income
family. Rehabilitation work is currently underway.
• 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 in Salem with the promise to keep them affordable for a minimum of 40 years.
However, when the owner of Salem Heights attempted to raise rents to market rate, Mayor
Usovicz went to court, and won a precedent setting victory to keep the complex affordable for
the duration of their 40-year affordability contract with the city. Furthermore, in February
2003, the city reached a landmark agreement that will keep Salem Heights’ 283 apartments
rented at affordable rates for the next 100 years. This was a major victory for affordable
housing. The city is currently negotiating the renewal of its contract with Fairweather
Apartments. In 2004, the Mayor entered into an Agreement with the owners of 289-293 Essex
Street who were in the process of converting fifty-three apartments into market rate
condominiums. The Agreement calls for the owner to offer ten of the units to low- to
moderate-income first-time homebuyers.
• Improving Public Housing
With the Mayor’s assistance and support, the Salem Housing Authority continues its campaign
of major repairs and modernization to its public housing. In FY04, the Authority was awarded
$5,000,000 for modernization work to its aging family, elderly, and handicapped-accessible
housing units from the Massachusetts Department of Housing and Community Development
(DHCD). Currently, the Authority is implementing modernization programs for work such as
roof replacement, elevator replacement, siding, and water infiltration abatement.
• Providing Expanded First Time Homebuyers Assistance
The city continues its goal to provide families with the opportunity to own their first home.
One of the most popular programs the city runs is the First Time Homebuyer Downpayment
Assistance Program. Recently, rising housing costs have required larger downpayments, making it
increasingly prohibitive for low-income families to purchase a home. Due to the increase in the
median price of homes in Salem, the city continues to actively review the First Time Homebuyer
Downpayment Assistance Program to see how more families could have greater home ownership
opportunities. The Mayor will continue the commitment he made that no Salem resident who is
eligible for a first time homebuyer loan will be turned away.
In addition to administering the City’s First Time Homebuyer Downpayment Assistance
Program, DPCD staff also provide assistance in coordinating other resources for down-payment
assistance, such as Massachusetts Housing Partnership (MHP) Soft Second Program and a
variety of homeownership programs offered by MassHousing as well as supporting first time
homebuyer education workshops provided by the Salem Harbor CDC.
6
• Providing Assistance to Renters
This year, the city continued its commitment to assist families with Rental Downpayment
Assistance (first and last month’s rent and security deposit) to provide families with the funds
necessary to secure housing. The program is an important tool for helping families with the
costs of moving into a decent apartment.
• Rehabilitation of Existing Housing
Most of the housing stock in the city was built prior to 1949. While older homes are an integral
part of Salem’s history and neighborhood fabric, they also require a great deal of maintenance.
In response to this issue, the city administers a Housing Rehabilitation Loan Program that
provides low-interest loans to homeowners of both single and multi-family homes to address
health and safety issues that would otherwise be too costly to take on. The city continues to
assess procedures and policies of this program. During FY04, an Optional Relocation
Assistance policy was implemented for those needing assistance with temporary relocation
during the rehabilitation of their home. Through the rehabilitation of existing housing stock,
more homeowners, as well as tenants residing in rental units can live in decent housing.
• Work Regionally to Increase the Supply of Housing
Housing is a regional market that does not strictly follow city boundaries. While Salem does
more than many cities in the region to provide affordable housing (at 12.8%. Salem has the
highest percentage of affordable housing of the 30 cities and towns in the North Shore Home
Consortium), the best answer is still regional cooperation to address the 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 neighborhood known as Salem Point contains the highest concentration of low income,
minority and Hispanic or Latino families (73.6% low/mod, 46.4% minority or multi-race and
50.75% Hispanic/Latino). To ensure that this population has knowledge and access to the city’s
First-Time Homebuyer and Rehabilitation programs, the city works in cooperation with the Salem
Harbor Community Development Corporation, a nonprofit organization that conducts housing and
economic development activities in the Point neighborhood. The CDC periodically conducts a
four-week, first time homebuyer educational workshop. In addition, upon request, the city’s housing
staff participate in homebuyer fairs held by lending institutions or at the Salem Harbor CDC to
provide information and counseling regarding its First-Time Homebuyer, Rehabilitation and
Deleading programs and to distribute written information regarding the Fair Housing and
Discrimination Act.
The City of Salem also provides public services funding to agencies whose activities assist specific
populations (homeless, battered spouses, low income, etc.) with improving their quality of life,
which may include locating emergency, transitional or permanent housing. For example, CDBG
funding is provided to the Independent Living Center to provide an Accessible Housing Education
7
Services Program. As necessary, these agencies advocate on behalf of their clients to ensure fair
housing.
The North Shore HOME Consortium, of which Salem is a member, completed an Analysis of
Impediments (AI) to Fair Housing in 1998 of which the Executive Summary is found in the
Consortium’s Consolidated Plan and of which the complete AI is included by reference. The AI did
not identify any specific actions for Salem to undertake in order to overcome the effects of any
impediments identified through that analysis. Therefore, Salem continues to support educational and
service programs that directly or indirectly work to further fair housing and we continue to work
with the Consortium to reach its housing goals. The Consortium is the process of updating the AI.
Continuum of Care
During FY05, the city continued to support local agencies that provide direct assistance to homeless
families and individuals in Salem, such as the Salem Mission and Help for Abused Women and their
Children. Agencies funded and their accomplishments are provided in the table above as well as in
the Public Services Section of this report. It should be noted that 62 families avoided homelessness
through city-funded Homeless Prevention Programs.
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
As we proposed, Affordable Housing Programs remain the highest priority for our program. In
addition to the creation and maintenance of more units with CDBG and HOME funds, we continue
to place importance on changing our policies to pave the way for the development of more
affordable housing. Program staff will continue to work on creating and maintaining more
affordable units and implementing the high priority housing strategies listed above.
In FY05 we met our goal of assisting 20 households to purchase their first home through our First
Time Homebuyer Downpayment Assistance Program. Our First Time Homebuyer Downpayment
Assistance Program reached a total of 123 households over the past five years, which exceeded our
five-year goal of assisting 100 households to purchase their first home. We will continue to fine
tune and market the program in hopes of increasing the level of low and extremely low income
households being assisted in FY06.
The Home Improvement Loan Program continues to assist families in need and is on track with
meeting the goals laid out in the Consolidated Plan. In FY05, the program assisted 11 homeowners
to rehabilitate their homes - a total of 16 units - which was four short of the 20 units we projected in
the FY05 Annual Action Plan. However, seven additional projects are underway and applications
continue to come in on a regular basis. Over the five year period we completed 49 rehabilitation
projects, only one short of the Consolidated Plan goal.
Our other affordable housing programs and projects that we have funded continue to meet our
needs laid out in the Consolidated Plan and the strategies outlined in the FY05 Annual Action Plan.
8
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 FY05, 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 FY05 Annual Action Plan.
According to HUD regulations, we are allowed to commit up
to 15 percent of our CDBG allocation on public service
activities. In FY05, as in past years, our agencies expended
just under that limit. It is our feeling that these public service activities allow direct benefit to our
low- and moderate-income residents; therefore it is important to continue funding at this level.
Public service projects funded during FY05 were selected using a RFP (request for proposals)
process. The Citizen Advisory Committee reviewed all applications using criteria that included
project eligibility and documented need for services. Recommendations on funding levels were
provided by the Citizen Advisory Committee following this review.
In FY05, we were able to fund 38 public service programs, which, in turn, assisted 9,405 people,
including 954 youths and 1,044 seniors (see Table 2). Active projects are listed below. In addition,
the City spent $7,045.52 through Salem Cyberspace to purchase equipment for users who are
visually impaired.
Table2: FY05 Public Service Accomplishments
Agency
CDBG
Funds
Spent
Number
Assisted FY04 Program Impact
Bentley Elementary School
After School Program $10,000.00 203 youth
Yearbook published, completed design
challenge, raised $500 for Dana Farber
Cancer Institute, girls basketball team
won elementary league championship,
boys basketball were co-champs.
Salem Community Child Care
Bilingual Family Support $10,000.00 171 persons
Assistance with housing forms (70),
enrollment in public schools (10), health
issues (10), obtaining child care for older
children (4) and translation services
(45+).
Project Rap
Crisis hotline/drop in $6,000.00 257 persons
Referrals for drug/alcohol problems,
battered/battering, counseling referral,
emotional, abuse, employment/financial,
legal/court, prescreening, medical and
family issues, housing, and rape
counseling.
Youth In Action participants learn about
video production at SATV.
9
North Shore Elder Services
Strengthening & Flexibility Program $7,939.00 42 seniors Exercise classes held at two senior
housing locations.
Haven From Hunger
Food Pantry $10,000.00 817 persons 4778 bags of food distributed
H.A.W.C.
Children’s Program $10,000.00 67 persons
Of 36 families, 6 remain. Of 30 that left
the shelter, 4 went to transitional living, 4
found apartments, 6 went to another
shelter, 1 returned home, 3 moved in with
family. Only 1 returned to their abusive
partner, 1 was asked to leave and the
residence of 9 is unknown.
Morgan Memorial Goodwill Industries
Career Planning Program $4,151.22 7 youth
4 youth obtained part time internships, 2
former students retained employment,
agencies paid 3 students to work on its
production floor.
Salem Access Television
Youth in Action $2,998.90 13 youth Ten youth received certificates in
completion. Video produced.
Salem Mission
Outreach Street Advocate $7,200.00 89 persons
89 persons connected to temporary
housing, 3 to permanent housing, 36
connected to detoxification or substance
abuse treatment, 2 provided with
employment assistance, 4 financial
assistance, 27 medical/hospital, 3 to
domestic violence assistance, 25 to on-site
health clinic and 24 mental health
assistance.
Salem Mission
Food Pantry $10,000.00 1,405 persons 7,308 bags of food distributed
Cerebral Palsy Association
North Shore Infant & Toddler Preschool
Program
$7,500.00 49 children
15 students have transitioned out of
program to other program, private day
care, Salem Public Schools, Head Start to
the Early Intervention Group.
Salem Harbor CDC
Hispanic Festival $825.64 54 persons Women’s Workshop held.
St. Joseph’s Food Pantry $10,000.00 3,397 persons Approximately 19,829 bags of food
distributed
Independent Living Center
Accessible Housing Education Services
Program
$5,000.00 147 disabled
persons
2 homeless disabled found housing and
23 remain on waiting lists; 28 applications
filed with Salem Housing Authority or
universal applications. 2 workshops held.
Catholic Charities
Young Parent Program $4,299.00 34 persons
2 enrolled in GED programs; 3 scheduled
to return to school in September. 1 of 3
families once involved in DSS is no
longer involved.
Boys & Girls Club
Enhanced Program Development $10,000.00 328 youth
Total of 12 different programs within
Learning Center, Game Room, Art Room
and Gym.
Boys & Girls Club
Gang Prevention $4,750 57 youth 11 programs conducted in the teen
center.
North Shore Community Action Program
Salem Cyberspace Cyberyouth $4,300.00 36 youth
13 students participated in a team project,
19 participated in individual science
projects and 24 participated in individual
digital arts projects.
10
Salem Fire Department
Juvenile Firestarter Intervention Program $4,955.62 8 youth
93.5% of youth participating have since
not been involved in fire-related
incidences.
Salem YMCA
School Age Child Care Program $9,999.97 176 youth
Attendance in activities included 10 in the
fitness club, 16 cooking, 6 computers, 10
Yugio club and 80 tutoring.
North Shore Community Health
Outreach & Enrollment Program $10,000.00 520 persons
455 medical appointment and 279 dental
appointments as well as completion and
submission of applications for health
insurance.
Salem Family Investment Center
Family Literacy Program $10,000.00 43 persons
2 adults increased math/science and
Spanish/English scores by one grade
each. 1 adult increased overall grades by
27% and another by 15%. 1 adult passed
U.S. Citizenship test. 1 adult received
GED.
Salem Family Investment Center
After-School Evening Program $3,000 9 persons
ESL students test scores rose from 45%
correct (pre-test) to 67% correct (post
test) and Listening Comprehension
improved from 77% to 93%. One
participant obtained Citizenship and
another participant received a GED.
Salvation Army
Prescription Program $965.74 13 persons 25 prescriptions filled
Salem Health Dept.
Senior Wellness $2,500.00 390 seniors
Participation in Wellness Fair and
disseminated information on home
sanitation, West Nile Virus and
emergency preparedness.
V.O.C.E.S.
Hispanic Education Program $5,616.00 153 persons
11 students who participated in GED
classes obtained their GED and 35 have
become U.S. citizens.
Salem Y.M.C.A.
Teen Initiative $5,600.00 77 youth
Activities/attendees include art club 3,
basketball 51, breakdancing 15, hiphop 20
and youth strength training 9.
Salem Council on Aging
Transportation Program $19,260.97 612 seniors
Rides to medical (1181), day care (223),
senior center (1482), shopping (557),
hairdresser (206), banking (10) and other
rides (92)
Catholic Charities
Homeless Prevention Program $11,126.58 89 persons 34 families avoided homelessness
NSCAP
Homeless Prevention Program
$10,
649.23 48 persons 22 families avoided homelessness
Salvation Army
Transitional Housing $2,978.90 15 persons Of 9 families, 3 went to rooming houses
and 6 obtained apartments
Salvation Army
Homeless Prevention $5,000.00 34 persons 12 families avoided homelessness
H.A.W.C.
Homeless Prevention Program $8,000.00 36 persons 11 families avoided homelessness
11
Wellspring House
MediClerk Program $4,384.16 9 persons 10 graduates (includes 2 graduated in
03/04) received jobs in the medical field.
TOTAL PERSONS ASSISTED 9,405 persons
including 954 children/youths & 1,044 seniors
Evaluation of Goals
As stated before, Public Service activities allow us to provide direct service to our low- and
moderate-income residents. 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 spend up to our
funding cap of 15 percent each fiscal year. In FY05, as in previous years, we expended nearly the
full allocation within the fiscal year. This reflects the strong commitment among our staff and
public service providers to supply services in a timely fashion. Further, we have significantly
exceeded our Consolidated Plan goal of assisting 20 agencies each year, as well as exceeding our
FY05 Annual Action Plan goal of assisting 25 agencies by providing 38 grants.
We monitor our public service projects on an annual basis, both as a mechanism for evaluation and
to experience our services directly. There were no reported problems during the past fiscal year and
programs appear to be running smoothly.
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ECONOMIC DEVELOPMENT
The City of Salem is committed to continuing
efforts to stimulate economic development,
particularly in the neighborhood business
districts. Throughout his tenure, Mayor Usovicz
has helped turn Salem’s economy toward the
industries of a modern, diverse economy,
including health care, legal, higher education,
banking and financial services, and cultural
tourism. At the same time, in the city’s
neighborhoods, small businesses have been
revitalized, providing important services for
residents.
Nevertheless, there is much work to be done.
According to the 2000 Census, Salem has an average of 46.7% low- and moderate-income residents.
The median household income in Salem is in the bottom quartile in the state according to the
Massachusetts Department of Revenue. While the unemployment rate is currently in line with the
state average of 4.5%, it is still up from last year.
Salem’s Business Loan Programs help to create new jobs,
improve commercial infrastructure and generate new vitality.
For these reasons, Salem continues to focus on economic development in order to create jobs.
Economic Development in Salem works to bring new employers to the city, while retaining jobs by
helping existing businesses improve their commercial infrastructure or expand their operations.
Salem’s Main Streets Initiative, created in 2001, has already helped bring new vitality to the
downtown, providing goods and services locally, and improving and stabilizing those neighborhoods
in the process. Improved vitality in our neighborhood and downtown commercial districts has the
residual affect of improving public safety as well.
The City of Salem is dedicated to neighborhood economic development through efforts to revitalize
neighborhood commercial districts, improve exterior building facades, and assist local business
owners. Our economic development funds are used to fund the Business Loan Program and
Neighborhood Economic Development Programs.
Business Loan Program
The Salem Business Loan Program provides 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 business and/or to
correction code violations.
• Special Economic Development – provides loans to business owners throughout the city in exchange
for jobs creation for low- and moderate-income people.
The 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.
13
In FY05, we funded one new loan totaling $50,000 and had 7 active loans from the previous fiscal
year (see Table 3). The active loans created a total of 26 jobs with 23 filled by low- to moderate-
income individuals. We anticipate seeing even greater jobs creation as those projects that are
underway report on their progress in the next fiscal year.
Table 3: Active Economic Development Loans in FY05
Type of Loan Project Amount of
Loan
Required
LMI Jobs
Creation
Total Jobs Created
Microenterprise
Assistance Ramirez Market $50,000 - -
Edgewater Café $50,000* 2 7 Total
7 LMI
Salem Children’s
Museum $45,000* 2 5 Total
4 LMI
Finz Seafood
Restaurant $75,000* 10 10 Total
10 LMI
All Creatures Veterinary
Hospital $36,000* 2 4 Total
2 LMI
Market Place Quilts $25,000* 2 Underway
River Wharf Realty
Trust/Bioengineering
Group
$135,000* 4 Underway
Special Economic
Development
Berman
Properties/Tropical
Products
$175,000* 10 Underway
Totals 8 $591,000 32 26 Total Jobs Created
23 LMI Jobs
Note: LMI is low- and moderate-income *Expended in a prior fiscal year
Neighborhood Economic Development Programs
In addition to the Business Loan Programs, the City funds other programs that assist downtown and
neighborhood businesses and funds the Neighborhood Storefront Improvement Program. In
FY05, the city continued its assistance to the Salem Main Streets Initiative Downtown Program,
which has seen a number of downtown businesses occupy formerly vacant space. The City also
continued its commitment to technical assistance programs including the Salem Harbor CDC
Advancing Community Business Program. During FY05, the CDC assisted 18 new or existing
businesses with one-on-one technical assistance which resulted in 5 business plans being completed,
10 partial business plans completed, 3 referred for financing, and the creation of 9 full time and 6
part time jobs.
14
Table 4: FY05 Economic Development Program Accomplishments
Program Description Status
Salem Main Streets
Downtown Program
Program provides technical assistance to
downtown businesses, promotes activity in
the downtown, and administers the
Storefront Improvement Program
downtown.
• $19,999.92 CDBG spent
• Ongoing
Salem Harbor CDC
Advancing Community
Business
Provides technical and financial assistance to
low- to moderate-income microenterprise
business owners, focusing on minority and
women businesses.
• $20,000 CDBG spent
• $10,000 Loan Guarantee
Ongoing
Neighborhood Storefront
Improvement Program
Provides matching funding up to $2,500 to
business owners wishing to improve the
exterior façade of their business.
• $13,365.33 CDBG spent
• Ongoing
Business Loan Program
Provides three types of loans that fund
commercial rehabilitation, create and retain
jobs, assist micro-enterprises to make our
commercial areas vibrant.
• $62,929.75 CDBG spent
• Ongoing
Evaluation of Goals
The Business Loan Program has exceeded the goal of the Consolidated Plan, which called for five
loans total over the course of five years. Over five years we provided 12 loans to Salem businesses,
totaling $730,585. We continue to reach out to our business owners in order to create jobs and
expand our commercial base.
The Neighborhood Economic Development Programs also continue to succeed in meeting their
goals and assisting our businesses both in the downtown and throughout the city. In FY05, the
Salem Main Streets Downtown Program helped support 7 new businesses downtown that added
108 new jobs to the community. These new businesses are adding new life to the downtown by
bringing residents to the business center to shop and revitalizing this Urban Renewal Area.
15
NEIGHBORHOOD IMPROVEMENTS
As stated in our FY01-05 Consolidated Plan, the City
is committed to making the infrastructure
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.
The City of Salem strives to create a truly livable
community by continuing to invest in its
neighborhood infrastructure and public facilities.
Due to the size and scope of these projects, some
require multi-year funding, as well as a few years to
plan and complete the project. To that end, a
number of our Neighborhood Improvement Projects
are still in the planning stages.
New curb cuts and new faux brick crosswalks provide safe
pedestrian access while complimenting the historic area.
The following table outlines the current neighborhood improvement projects and their status at the
close of FY05. 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: FY05 Neighborhood Improvement Accomplishments
Activity CDBG Funds Spent Status
Tree Planting Program $9,789.77 Ongoing
Neighborhood Street & Sidewalk Improvements $278,537.80 Underway
Congress/Peabody/Ward Intersection Improvement $9,814.70 Underway
Neighborhood Improvement Engineering & Design $5,285.14 Complete
Essex Street Pedestrian Mall Improvements $9,699.35 Underway
South River Harbor Walk $10,526.68 Underway
Old Town Hall Improvements $1,376.34 Underway
Evaluation of Goals
During FY05, we continued to work on important neighborhood projects. Due to shortages in
staff, we were unable to complete as many projects as we had hoped. In addition, some projects
have experienced delays due to brownfields issues. However, we continue to place a priority on
these projects for the upcoming fiscal year. In FY06, we intend to continue work on the following
ongoing projects provided in Table 5.
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Table 5: Ongoing Activities
Project Description
City Hall Elevator Installation of elevator for improved public handicapped
accessibility.
Congress/Peabody/Ward Intersection
Project Redesign and reconstruct dangerous neighborhood intersection
Economic Development Programs Programs include Business Loans, Main Streets Program,
Neighborhood Storefront Improvements
Essex Street Pedestrian Mall
Improvements
Improvements to the Essex Street pedestrian mall in the Urban
Renewal Area.
Harbor and Lafayette Streets Pedestrian
Improvements Design and implement pedestrian safety improvements.
Housing Programs
Programs include First Time Homebuyers Downpayment
Assistance, Housing Rehabilitation Loan Program, Salem Harbor
CDC Rental Property Renovations, Habitat for Humanity
rehabilitation of 18 Crombie Street and Affordable Housing
Programs
NICE Program
Program for small capital improvements in eligible neighborhoods.
Funds designated for Lafayette Park improvements and one or more
of the following: handicapped parking signage, trash barrels, and
fence replacement at Pioneer Terrace
Old Town Hall Improvements to this historic structure in the Urban Renewal Area.
Palmer Cove Park Improvements Redesign and reconstruction of neighborhood park
Peabody Street Neighborhood Park Design “gateway” park on City-owned land on Peabody St.
Peabody Street Wall Replacement Remove deteriorating blighted wall; replace with new fence.
Pioneer Village Access Improvements Accessibility improvements
Planning & Administration Development of plans and studies including Church Street lot
Parking Study and Point Neighborhood Master Plan components
Point Community Center Improvements Assistance for utilities and handicapped access
Senior Life Center Pre-development of new Council on Aging facility
South River Harbor Walk Project
To be constructed along the South River to provide access to the
waterfront from the Downtown & the Point Neighborhood utilizing
grant funds and the City’s match.
Street Improvements Street paving, handicap curb cuts, sidewalk replacement and
crosswalk installation in eligible areas
Tree Planting Program Planting of new street trees in eligible areas
Washington/Front Street Improvements Improvements to main corridor including period lighting
Willows Accessible Bathrooms Project Improvements to the bathrooms at the Willows Park to make them
accessible
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PLANNING & ADMINISTRATION
In the Consolidated Plan, our priority goals are to provide for
the administrative costs associated with the management of the
Salem Community Development Block Grant program and to
develop the planning resources and documents necessary to
undertake program activities.
During FY05, we were able to begin implementation of
portions of the North River Corridor Neighborhood Master
Plan, completed in FY04. In addition, with a matching grant
from the Massachusetts Historical Commission we developed
a Design Guidelines Manual for the City including our Urban
Renewal Areas. We also began the first phase of the
development of the Point Neighborhood Master Plan with a
study of the reuse of the St. Joseph’s Church property. We
have also secured another matching grant from the
Massachusetts Historical Commission to begin the historic
resource component of the Point Neighborhood Master Plan.
Finally, as required by HUD every five years, we undertook the
comprehensive process of developing our 5-Year Consolidated
Plan for FY06-FY10.
Citizen participation is key to the
development of neighborhood planning
documents.
In addition to the planning studies completed in the fiscal year, we spent a majority of Planning &
Administration funds on administration expenses necessary to carry out our programs.
Table 7: FY05 Planning & Administration Accomplishments
Activity CDBG Funds
Spent Status
North River Corridor Neighborhood Master Plan $2,082.63 Plan Completed,
Implementation
Design Guidelines Manual $3,500.00 Underway
FY06-FY10 5-Year Consolidated Plan $16,249.58 Underway
Point Neighborhood Master Plan $30,314.77
Phase 1 -
Substantially
Complete; Phase II -
Matching grant
funds obtained
Administration Expenses $174,905.16 Ongoing
Evaluation of Goals
As stated previously, we were able to remain under our administrative spending cap of 20 percent.
Further, by completing more than a dozen planning activities in the past five years, we have
exceeded our Consolidated Plan goal to complete five studies and plans in FY01-05.
18
OTHER ACTIONS
In both the FY01-05 Consolidated Plan and the FY05 Annual Action Plan, we outlined a number of
actions we intend to pursue in addition to our regular program areas. The following lists those
actions and the progress made over the past program year in reaching our goals.
Barriers to Affordable Housing
The FY06-10 Five Year Consolidated Plan recently completed 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 Program and Affordable
Development Programs the city is able to address some of these barriers. In addition, in FY06 the
city will introduce a new initiative that will enforce building code compliance in rental properties.
Lead-Based Paint Hazard Reduction
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 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 Determinations.
The city, through the DPCD, actively works to reduce lead-paint hazards in pre-1978 housing
occupied by lower-income households through the City of Salem’s Housing Rehabilitation Loan
Program or through referrals to the Gap-Filler Program or Get the Lead Out Program administered
through the City of Peabody. Through the Salem Housing Rehabilitation Loan Program, the city
provides loan funds for qualified applicants for lead testing, hazard reduction and abatement
activities. Lead-based paint hazard control measures undertaken are consistent with the federal Title
X requirements and State lead based paint regulations.
19
Finally, all participants in the First-Time Homebuyer Program are given a copy of the EPA brochure
Protecting your Family from Lead in Your Home.
Anti-Poverty Strategy
The FY06-FY10 5-Year Consolidated Plan includes the City of Salem’s Anti-Poverty Strategy which
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 result, they work multiple jobs to pay for housing, utilities, transportation
expenses, and childcare. Providing adequate job training and educational opportunities will enable
them to enter the workforce at a more competitive level.
Salem uses CDBG and other funds to pursue an anti-poverty strategy that is carried out by the City
and a variety of social service subrecipients. The City’s anti-poverty strategy is comprehensive and it
consists of four components: education, job training, affordable housing and social services. Each
of these components are described at length in the recently completed 5-Year Consolidated Plan.
Managing the Process and Institutional Structure
The City of Salem Department of Planning and Community Development (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. Salem’s
programs are managed and monitored by the Assistant Community Development Director under
the direction of the Director of Planning and Community Development.
Salem’s housing programs are administered by the DPCD Housing Coordinator under the direction
of the Director of Planning and Community Development and Assistant Community Development
Director. In addition, certain housing activities are administered by local non-profit agencies,
CHDO’s and/or CDC’s. Private lenders provide financing that leverages funds provided through
many of the city’s housing activities.
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 other required documentation to the DPCD.
Each year the City of Salem issues a Request for Proposals to nonprofit organizations that offer
social service or economic development programs. CDBG funds are then 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 subcontracts and the Economic Development Planner coordinates the management of the
economic development subcontracts. The strength in the delivery system of nonprofit services is in
the networking, collaboration and coordination among the agencies.
The remaining activities are generally carried out by DPCD staff and may include the hiring of
consultants or other private businesses through established municipal purchasing procedures.
20
Salem’s CDBG program delivery system is audited yearly through the city’s auditing firm, as well as
through periodic reviews and monitoring by HUD staff. Recommendations are promptly
implemented. The DPCD continuously works to improve upon its methods and procedures for the
administration of its programs.
Coordination with Other Organizations
Salem Housing Authority: Although, the city does not currently use 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 City of Salem must certify that the documents are
consistent.
The Mayor appoints four of the five Salem Housing Authority (SHA) board members, one of whom
must be a public housing tenant and one of whom must be a member of organized labor. Proposed
development sites or demolition or disposition of existing public housing developments must go
through established regulatory procedures administered by the Building Department, Board of
Appeal, Planning Board, etc.
The Salem Housing Authority serves over 900 participants. The Authority receives over $10 million
in federal funding for its Section 8 Housing Choice Voucher Program and its Federal Public
Housing Program as well as earning state subsidies. Currently, the SHA continues to implement its
modernization programs totaling over $5,000,000 for work such as roof replacement, elevator
replacement, siding and water infiltration.
The Salem Housing Authority has an established Resident Advisory Board to encourage public and
subsidy residents to become more involved in management.
Other Organizations: In addition to the SHA, the City of Salem works cooperatively with private
housing providers and private and governmental health, mental health, and service agencies and
other interested parties to implement its Consolidated Plan. To this end, the city administers Salem
H.O.P.E. (Human Organization Partnership Effort), a networking group of human service agencies
that serve Salem residents. It is a free forum for agencies to learn about the services being provided
by other agencies in order to fill in gaps, coordinate efforts and avoid the duplication of services. All
human service agency representatives are invited to attend the quarterly Steering Committee
breakfast meetings held at rotating agency locations. Through this program, agency representatives
are introduced to each other and exchange information, announcements and updates. 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.
21
The City of Salem works with the City of Peabody, the lead community for the North Shore HOME
Consortium, to coordinate the implementation of its HOME-funded programs. Salem also works
with local CHDO’s and CDC's to carry out prioritized 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
An overarching goal with all activities undertaken with CDBG and HOME funds is to ensure that
they meet our program objectives. DPCD monitors all projects to ensure compliance with
applicable Federal, State and local regulations. As part of ongoing monitoring, public service
subrecipients submit monthly reports that include programmatic information on clients served and
programmatic accomplishments. In addition, public service subrecipients are monitored on-site each
year (exceptions are noted in the Monitoring Plan, which is located in Five-Year Consolidated Plan).
Payments to agencies are made on a reimbursement basis to ensure compliance with expenditure
requirements. Affordable housing and economic development projects undertaken with CDBG or
HOME funds are monitored annually for compliance with affordability requirements, job creation,
and other programmatic requirements.
22
SUMMARY/PROGRAM EVALUATION/CONCLUSIONS
Overall, we made significant progress over the past fiscal year. As each of the previous sections
indicated, we made a point of meeting the goals and objectives stated in the FY01-05 Consolidated
Plan and FY05 Annual 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 were able to
increase our expenditures in our Housing Rehabilitation Loan Program and Rental Downpayment
Assistance Program, maintain First Time Homebuyer funding levels and continue working towards
implementing policies that will increase affordable housing and rehabilitate those homes in
substandard condition throughout the City. Our economic development programs have exceeded
the Consolidated Plan goals and met the goals of the FY05 Annual Action Plan. Public service
projects continue to reach our low- to moderate-income residents with their valuable programs, as
indicated in our annual monitoring visits. 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.
We have shaped our funding allocations based on comments we received from the public and as
such, we have increased the spending for housing programs, making it the highest overall percentage
of funds spent during the fiscal year. The city continues to incorporate feedback from our citizens
in order to make this program stronger and more effective.
In summary, we are proud of the accomplishments made in FY05. The City made progress in all of
our program areas toward meeting the goals and objectives laid out in the FY01-05 Consolidated
Plan and FY05 Annual Action Plan. Despite staffing vacancies, we continue to work toward
completing older projects and we will continue to work hard at pursuing our goals and meeting the
needs of our low- and moderate-income residents and our target neighborhoods.
23
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 a supplementary narrative that
provides answers to the questions. This narrative includes information on the CDBG and HOME
programs.
Use of CDBG Funds
In FY05, CDBG expenditures fully complied with the goals and objectives outlined in the FY05
Annual Action Plan and FY01-05 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 past fiscal year, we made no changes to the program objectives laid out in the FY05
Annual Action Plan and FY01-05 Consolidated Plan.
Compliance with Planned Actions
In FY05, the City of Salem pursued all resources indicated in its FY05 Annual Action Plan.
Compliance with National Objectives
In FY05, 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 FY05, 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 did
provide temporary location assistance through the Home Improvement Loan Program, per the new
Relocation Policy established during the fiscal year.
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 FY05, the City of Salem funded projects that served limited clienteles. The City of Salem funded
38 public service projects in FY05 that served low- and moderate-income clientele. Through the use
of family-size/proof of income documentation and income affidavits, it was determined that more
than 51 percent of the people served by these projects met applicable criteria for low- or moderate-
income status. Other 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
Community Development Block Grant Program in FY05. The total program income was
$207,551.21.
24
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 Home Improvement Loan Program.
The activities carried out during FY05 are described in the Assessment of Goals and Objectives,
Housing Development and Rehabilitation section of this report.
HUD Neighborhood Revitalization Strategies
The City of Salem had no HUD approved Neighborhood Revitalization Strategies in place during
FY05.
Performance Measurement
In FY04, DPCD began looking at different strategies for performance measurement of the
programs funded with CDBG and HOME funds. The DPCD will continue to review and enhance
its performance measurement system. Specifically, Salem has implemented a performance
measurement system for the following program areas:
Public Services - Public service contracts for the FY04 program year included performance
measurement indicators. As was done in FY04, the CAPER for FY05 outlines the
effectiveness of those measurements. Specifically, the city requires subcontracted social
service agencies to report on performance indicators. The results of these performance
measures are provided in the Public Services Section in Table 2. Internally, a spreadsheet is
maintained which tracks the receipt of monthly reports and the status of on-site
monitorings.
Housing Programs - Housing rehabilitation program staff track each project in a formal
system that details project status and loan details, as well as meet on a weekly basis to review
activity status. In addition, the staff maintain a comprehensive written manual detailing
program procedures and policies. There is also a master loan spreadsheet that tracks all
loan details for the First Time Homebuyer Program and the Housing Rehabilitation
Program, including period of affordability, discharge dates, rental restrictions and
monitorings.
Economic Development – The Economic Development Planner maintains a spreadsheet of
all economic development loans which tracks all loan details and information regarding job
creation.
Additionally, the city ensures long-term compliance with program requirements, including
minority business outreach and comprehensive planning requirements, in several ways. In
particular, DPCD has a Monitoring Plan in place, that allows the city to track whether long-
term goals are being met, including minority business outreach. As detailed in the Managing
the Process and Institutional Structure section of this document, the city manages its
programs to ensure compliance with identified goals.
25
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 FY05, the City of Salem spent $290,309 in HOME funds. Funds were used help fund
projects in the Home Improvement Loan Program administered by the DPCD and the Rental
Downpayment Assistance Programs administered by the North Shore Community Action Program,
Help for Abused Women and their Children and the Salvation Army. The accomplishments of
these projects can be found in the reports submitted by the City of Peabody on behalf of the
Consortium.
26
FUNDS LEVERAGED
In order to maximize the benefits achieved by the Salem Community Development Block Grant
Program 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 FY05 and the funds leveraged through these expenditures.
Table 8: FY05 Funds Leveraged
Program CDBG
Expenditures
HOME
Expenditures
Funds from Other
Sources
Housing Programs $571,962 $290,309 $4,079,836
Public Services $246,047 -$2,165,750
Economic Development $152,421 -$138,365
Neighborhood Improvements $335,676 -$615,000
Planning & Administration $227,052 -
$78,000
TOTAL FY05 $1,533,158 $290,309 $7,076,951
TOTAL FUNDS LEVERAGED PER DOLLAR IN FY05: $3.88
Listed below is a summary of the funds leveraged and reported in the table above:
Housing
• The 18 Crombie Street rehabilitation project leveraged $56,000 from Habitat for Humanity.
• For the First Time Homebuyer Program, homebuyers provide matching funds as well as obtain
financing from a primary lender, which amounted to a total leveraged of $4,079,836.
Public Services:
• Most of the public service agencies funded use CDBG funds as a portion of their overall activity
budgets. Based on the project budgets submitted in the initial funding request proposals, the
estimated amount leveraged is $2,165,750.
Economic Development:
• For the Main Streets Program, CDBG dollars were matched with $50,000 in direct donations
from local banks, businesses and institutions and fundraising efforts.
• The Salem Business Loan Program project leveraged $75,000 in private financing.
• The Storefront Improvement Program leveraged $13,365 in private dollars.
27
Neighborhood Improvements:
• CDBG funds for the South River Harbor Park project are used as a match toward $615,000 in
design and construction grant funds from the State Seaport Advisory Council.
Planning & Administration:
• CDBG funds used for the North River Canal Corridor Neighborhood Master Plan Project
leveraged $30,000 from DHCD’s Executive Order 418 and $30,000 from the Stop & Shop
Mitigation Funds.
• For the Design Guidelines project, $12,000 in CDBG funds leveraged $18,000 from the
Massachusetts Historical Commission’s Survey & Planning Grant Fund Program.
Note: Leveraged funds for multi-year projects may be repeated within more than one year’s
CAPERs. Leveraged funds are only included for projects of which CDBG funds were expended
during the fiscal year
28
CITIZEN PARTICIPATION SUMMARY
The goals and purpose of the Citizen Participation Plan is to encourage residents, agencies, and
other interested parties to participate in the development of our 5-Year Consolidated Plan and
Annual Action Plans and to comment on our accomplishments. The strength of our programs
comes from the high number of volunteers that inform our decisions.
The Citizen Participation Plan outlined in the 5-Year Consolidated Plan is the framework we used to
solicit public comment as well as provide guidance on our response to citizens’ comments on our
programs throughout the year.
Public Comment Period
Copies of the 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 Clerk’s Office, Public Library, Salem Housing Authority
and the City Hall Annex. No public comment was received.
29
APPENDIX
CITY OF SALEM – FINANCIAL SUMMARY
FY05 Consolidated Annual Performance and Evaluation Report
1 Summary of CDBG Resources
2 FY04 End of Year LOC Balance $ 1,735,971
3 FY05 CDBG Entitlement $ 1,352,000
4 Current Program Income, FY05 $ 207,551
5 Total CDBG funds available for use in FY05 $ 3,295,522
6 Summary of CDBG Expenditures
7 Affordable Housing $ 512,466
8 Public Services $ 246,047
9 Neighborhood Improvements $ 327,075
10 Economic Development $ 152,421
11 Program Administration $ 227,052
12 Section 108 Repayment (separated in CAPER narratives into housing &
neighborhood improvements) $ 68,097
13 Total Expenditures $ 1,533,158
14 Year-End CDBG Resources
15 Total CDBG funds available for use in FY05 $ 3,295,522
16 Total Expenditures in FY05 $ 1,533,159
17 Unexpended Balance (CDBG Budget) $ 1,762,363
18 *LOC = Balance of Funds in City's Letter of Credit with U.S. Treasury
19 Low/Mod Credit
20 Total FY05 CDBG Expenditures $ 1,533,158
21 Total for Program Administration $ 227,052
22 Total for Section 108 Repayments $ 68,097
23 Total subject to Low/Mod Benefit Calculation $ 1,238,009
24 L/M Credit for multi-unit housing $ 170,238
25 L/M Credit for other activities $ 895,048
26 Percent of benefit to low/mod persons 86.05%
27 Public Services Cap Calculation
28 Net obligations for FY05 Public Services Act. $ 269,537
29 FY05 Entitlement + FY04 Program Income $ 1,817,791
30 Percent obligated for FY05 PS Activities 14.83%
FINANCIAL SUMMARY
31 Planning and Program Administration Cap Calculation
32 FY 05 Entitlement + FY 05 Program Income $ 1,559,551
33 Net Obligations for Planning/Admin. Activities $ 311,832
34 Percent of funds expended 19.99%
35 HOME Summary
36 HOME Project Expenditures $ 279,601
37 Salem HOME Administration $ 10,708
38 Total HOME Expenditures $ 290,309
MAP
Low to Moderate Income Areas with Urban Renewal (SRA) boundaries and Ward boundaries