CDBG FY07 ACTION PLANCITY OF SALEM
FY07
ONE-YEAR ACTION PLAN
MAY 12, 2006
Kimberley Driscoll
Mayor
Lynn Goonin Duncan, AICP
Director of Planning & Community Development
Kathleen Winn
Deputy Director of Planning & Community Development
Jane A. Guy
Assistant Community Development Director
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY ........................................................................................................................................I-1
I.A. THE ACTION PLAN FOR COMMUNITY DEVELOPMENT .......................................................................................I-1
I.B. DEVELOPING THE ACTION PLAN: CITIZEN PARTICIPATION & CONSULTATION..............................................I-2
I.C. RESOURCES FOR FISCAL YEAR 2007 ....................................................................................................................I-2
I.D. OBJECTIVES AND OUTCOMES ...............................................................................................................................I-4
I.E. EVALUATION OF PAST PERFORMANCE ...............................................................................................................I-5
II. PROGRAM DESCRIPTIONS OF THE PROPOSED HOUSING & COMMUNITY DEVELOPMENT
ACTIVITIES ....................................................................................................................................................................II-1
II.A. AFFORDABLE HOUSING ..........................................................................................................................II-3
II.A-1. Specific Housing Objectives ........................................................................................................................II-3
II.A-2. Needs of Public Housing .............................................................................................................................II-7
II.A-3. Barriers to Affordable Housing ...................................................................................................................II-7
II.A-4. Homelessness and Homelessness Prevention ..............................................................................................II-8
II.A-5. Fiscal Year 2007 Affordable Housing Activities .......................................................................................II-10
II.B. ECONOMIC DEVELOPMENT.....................................................................................................................II-14
II.B-1. Strategies for Economic Development .......................................................................................................II-14
II.B-2. Fiscal Year 2007 Economic Development Activities .................................................................................II-17
II.C. NEIGHBORHOOD IMPROVEMENT .....................................................................................................II-19
II.C-1. Strategies for Infrastructure and Public Facilities ....................................................................................II-19
II.C-2. Fiscal Year 2007 Neighborhood Improvement Activities ..........................................................................II-20
II.D. SOCIAL SERVICES (INCLUDING HOMELESS AND NON-HOMELESS SPECIAL NEEDS).......II-21
II.D-1. Strategies for Social Service Needs ............................................................................................................II-22
II.D-2. Fiscal Year 2007 Social Services Activities ...............................................................................................II-23
II.E. PLANNING & ADMINISTRATION ...........................................................................................................II-24
II.E-1. Fiscal Year 2007 Planning & Administration Activities ..........................................................................II-24
II.F. FISCAL YEAR 2006 ACTION PLAN REVISIONS AND/OR ONGOING PROJECTS ..........................II-25
III. HUD REQUIRED NARRATIVES ..................................................................................................................III-1
III.A. GEOGRAPHIC DISTRIBUTION OF FUNDS .......................................................................................................III-1
III.B. MANAGING THE PROCESS AND INSTITUTIONAL STRUCTURE......................................................................III-1
III.C. COORDINATION WITH OTHER ORGANIZATIONS .........................................................................................III-2
III.D. CONSOLIDATED PLAN DEVELOPMENT PROCESS .........................................................................................III-3
III.E. CITIZEN PARTICIPATION - FY07 ACTION PLAN ..........................................................................................III-3
III.F. AFFIRMATIVELY FURTHERING FAIR HOUSING ............................................................................................III-3
III.G. MONITORING ................................................................................................................................................III-4
III.H. LONG TERM COMPLIANCE AND PERFORMANCE MEASUREMENTS .............................................................III-4
III.I. LEAD-BASED PAINT HAZARDS .....................................................................................................................III-5
III.J. ANTI-POVERTY STRATEGY ............................................................................................................................III-6
III.J-1. Education...................................................................................................................................................III-6
III.J-2. Job Training and Employment Resources .................................................................................................III-7
III.J-3. Affordable Housing ...................................................................................................................................III-8
III.J-4. Social Services ...........................................................................................................................................III-9
IV. APPENDIX ..........................................................................................................................................................IV-1
IV.A. APPLICATION: STANDARD FORM 424 & CERTIFICATIONS
IV.B. OVERVIEW OF CITIZENS PARTICIPATION
IV.C. MAPS
IV.D. CPMP NEEDS TABLES
IV.E. NORTH SHORE HOME CONSORTIUM TABLES
City of Salem FY 2007 Action Plan
Executive Summary
I. EXECUTIVE SUMMARY
One of the most successful community development strategies in America is the Community
Development Block Grant (CDBG) program from the US Department of Housing and Urban
Development (HUD). Created in 1974, the CDBG program provides communities with a flexible
source of funds to be used to benefit low- and moderate-income persons or to prevent or eliminate
slums and blight.
HUD Mission Statement
The CDBG Program provides annual grants to entitled cities and counties to develop viable urban
communities by providing:
• Decent, Safe and Sanitary Housing
• Suitable Living Environment
• Expanded Economic Opportunities
Goals of HUD’s CDBG Program
HUD provides CDBG funds to entitlement community grantees to carry out a wide range of
community development activities. These activities are directed toward:
• Revitalizing Neighborhoods
• Economic Development
• Providing improved community facilities and services
All activities that are carried out with CDBG funds must meet HUD’s national goals and objectives.
The specific community and economic development, housing and social service activities that are to
be supported by the CDBG program are determined annually in the city’s Action Plan.
I.A. The Action Plan for Community Development
This Action Plan for Community Development for 2006-2007 describes the projects that will be
undertaken in the next fiscal year with CDBG funds. It also briefly describes some of the other city
programs in the areas of housing, community and economic development that are funded with other
resources.
This document is the City of Salem’s Action Plan for Community Development for Fiscal Year 2007
(FY07)1. The Action Plan for Community Development is provided in order for Salem residents,
leaders, businesses and organizations to better understand how the city plans to use CDBG funds
that it will receive from HUD in FY07 and to provide an opportunity for public comment.
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1 This Action Plan covers activities for the period from July 1, 2006 to June 30, 2007, which is referred to in this
document as Fiscal Year 2007 or FY07.
City of Salem FY 2007 Action Plan
Executive Summary
Narrative sections are included throughout the plan in order to increase the public’s understanding
of the city’s community development objectives in an easy-to-read, yet comprehensive, format.
I.B. Developing the Action Plan: Citizen Participation &
Consultation
CDBG funds are used to fund specific projects and initiatives that are needed by Salem residents and
that meet HUD’s national goals and objectives. Identifying the needs of the community is an on-
going process. In July 2005, after months of public hearings and public comment, the city adopted a
Five Year Consolidated Plan, highlighting the community development needs and goals for July
2005– June 2010. Each year, the city holds additional public hearings and comment periods to review
those goals and to make specific recommendations for programs and initiatives to be undertaken in a
given year. The result is the annual Action Plan, designed to put into action the goals and strategies
established in the Consolidated Plan.
For the FY07 Action Plan, citizen participation includes two public hearings and a 30 day comment
period. In order to broaden public participation, outreach to participate includes legal
advertisements, postings at City Hall and City Hall Annex and on Salem Access Television, notices
mailed to the Salem Public Library, Salem Council on Aging, Salem Housing Authority, all City
Councillors, members of the Citizens Advisory Committee and to various public service agencies and
neighborhood associations, as well as being placed on the city website. A complete Overview of
Citizens Participation is located in Appendix B and includes public hearing minutes along with a
Summary of Comments.
It is important to note that the Action Plan is not a budget, but rather a planning tool that outlines the
priorities and activities that will be undertaken to address housing, community and economic
development needs. Proposed activities must meet HUD’s eligibility rules, and must be consistent
with the Consolidated Plan. Proposed activities are assigned estimated costs (which are included in
this document). During the year, should the cost of the proposed activities change, these values can
be adjusted. In addition, unused funds can be reallocated to assist new programs that may be
developed during the course of the year, or to supplement existing activities that require additional
funding.
I.C. Resources for Fiscal Year 2007
The City of Salem receives Community Development Block Grant (CDBG) funds from HUD to be
used to benefit low- and moderate-income persons or to prevent or eliminate slums or blight in Salem
through a variety of community development programs. CDBG is a formula-based program
designed to develop viable urban communities by providing decent housing, a suitable living
environment, and expanded economic opportunities for persons of low- and moderate-income. As an
entitlement community, the City of Salem submits a Consolidated Plan with respect to its
Community Development Block Grant (CDBG) program.
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In addition, Salem is a member of the North Shore HOME Consortium and receives an allocation of
Home Investment Partnership (HOME) funds from HUD which are additional funds dedicated
solely for housing programs, and can be used to fund a wide range of activities that build, buy and/or
City of Salem FY 2007 Action Plan
Executive Summary
rehabilitate affordable housing for rent or home ownership. The City of Salem is one of thirty
member communities in the North Shore HOME Consortium. On behalf of the member
communities, the Consortium, through its lead community of Peabody, submits a Consolidated Plan
for operating the HOME Investment Partnership Program (HOME). The city will not use HOME
funds to refinance any existing debt secured by multifamily housing developments.
Recently, Salem applied for and received an award of American Dream Downpayment Initiative
(ADDI) funds, also administered by the North Shore HOME Consortium. ADDI aims to increase the
homeownership rate, especially among lower income and minority households, and to revitalize and
stabilize communities. The program was created to assist low-income first-time homebuyers in
purchasing single-family homes by providing funds for downpayment, closing costs, and
rehabilitation carried out in conjunction with the assisted home purchase.
Finally, our housing and economic loan programs generate program income, which is directed to
existing or new programs as needed. Income is generated as loans are repaid or recaptured from an
assisted property or business. Program income funds are typically generated each year and help
extend the city’s ability to support CDBG-eligible activities.
The total in Federal funding that the Salem expects to receive for FY07 includes a $1,158,932 in CDBG
entitlement funds ($123,209 less than the previous year) plus an estimated $196,899 in HOME funds
(the same amount as last year), $96,000 in ADDI funds (a new funding resource in FY07) and an
estimated $207,000 in program income. In addition to these resources, many activities leverage
funding from other sources to maximize the impact of the federal dollars the city receives.
Together, these resources fund a wide range of activities designed to develop and maintain
affordable housing, improve neighborhood public facilities, provide economic opportunities,
improve access for people with disabilities, provide critical public services, assist people who are
homeless, and prevent homelessness.
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FY07 AV AILAB LE FU N D S
$1,158,932
$196,899
$96,000
$207,000
CDBG HOME ADDI PROGRAM INCOME
Estimated Total Funds $1,658,831
City of Salem FY 2007 Action Plan
Executive Summary
I.D. Objectives and Outcomes
The chart below lists the activities proposed for FY07 and one of three objectives that best describes
the purpose of the activity. The three objectives are:
Suitable Living Environment - In general, this objective relates to activities that are designed to
benefit communities, families, or individuals by addressing issues in their living environment.
Decent Housing - The activities that typically would be found under this objective are designed to
cover the wide range of housing possible under HOME or CDBG. This objective focuses on housing
programs where the purpose of the program is to meet individual family or community needs and
not programs where housing is an element of a larger effort, since such programs would be more
appropriately reported under Suitable Living Environment.
Creating Economic Opportunities - This objective applies to the types of activities related to
economic development, commercial revitalization, or job creation.
ACTIVITY OUTCOME
Decent Housing
Preservation of Existing Housing Affordability
Homeownership Opportunities Affordability
Rental Housing Assistance Affordability
Affordable Housing Development Programs Affordability
Creating Economic Opportunities
Small Business Financial Assistance Programs Availability/Accessibility
Business Technical Assistance Availability/Accessibility
Suitable Living Environment
Street Improvements Sustainability
Tree Planting Program Sustainability
Park Improvements Sustainability
South Harbor Garage Loan Repayment Sustainability
Community Support Services Availability/Accessibility
Included in the chart above is one of three outcomes that best reflects what is being sought to achieve
by undertaking the activity. The three outcomes are:
Availability/Accessibility - This outcome category applies to activities that make services,
infrastructure, public services, public facilities, housing, or shelter available or accessible to low- and
moderate-income people, including persons with disabilities. In this category, accessibility does not
refer only to physical barriers, but also to making the affordable basics of daily living available and
accessible to low and moderate income people where they live.
Affordability - This outcome category applies to activities that provide affordability in a variety of
ways in the lives of low- and moderate-income people. It can include the creation or maintenance of
affordable housing, basic infrastructure hook-ups, or services such as transportation and day care.
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City of Salem FY 2007 Action Plan
Executive Summary
Sustainability: Promoting Livable or Viable Communities - This outcome applies to projects where
the activity or activities are aimed at improving communities or neighborhoods, helping to make
them livable or viable by providing benefit to persons of low- and moderate-income or by removing
or eliminating slums or blighted areas, through multiple activities or services that sustain
communities or neighborhoods.
I.E. Evaluation of Past Performance
Throughout the many years of the City of Salem’s CDBG Program, 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.
The annual Consolidated Annual Performance and Evaluation Report (CAPER) provides an analysis
of the accomplishments and progress toward meeting the goals and objectives laid out in the City of
Salem’s Five Year Consolidated Plan. The FY06 CAPER, for the current fiscal year, will be available
by September 1, 2006. The most recent CAPER, for FY05, evaluates the fifth fiscal year - July 1, 2004
through June 30, 2005 - of the former Consolidated Plan. 86% of funds spent in FY05 directly
benefited low to moderate income persons. This document is available at the City of Salem
Department of Planning and Community Development (DPCD), the Salem Public Library and on
www.salem.com. The chart below illustrates FY05 spending by category, as a percentage of overall
CDBG and HOME expenditures.
FY05 CDBG & HOME Expenditures by Category
Neighborhood
Improvements
19%
Affordable
Housing
48%
Economic
Development
8%
Public Services
13%
Planning &
Administration
12%
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City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
II. PROGRAM DESCRIPTIONS OF THE PROPOSED
HOUSING & COMMUNITY DEVELOPMENT
ACTIVITIES
AFFORDABLE HOUSING, ECONOMIC DEVELOPMENT,
NEIGHBORHOOD IMPROVEMENT, PLANNING & ADMINISTRATION AND
SUPPORT FOR SOCIAL SERVICES
In the Five-Year Consolidated Plan, the residents of the City of Salem identified the community
development needs and goals for Fiscal Years 2006-2010. The priority needs identified during that
public process included the need for affordable housing, economic development, neighborhood
improvement and support for social services. Funding allocations are based on needs identified,
proposed activities and accomplishments to meet those needs and estimated funding needed to reach
the goals and accomplishment levels. The pie chart below illustrates the city’s proposed FY07
spending by category. It is estimated that at least 84% of the FY07 funding will be used for activities
that benefit persons of low- and moderate-income.
FY07 PROPOSED EXPENDITURES (CDBG, HOME & ADDI)
Neighborhood
Improvements
11%
Affordable Housing
56%
Economic
Development
8%
Public Services
9%
Planning &
Administration
16%
This section describes those priority needs and identifies some of the strategies that the city will
employ to address them in the coming year. Included are a few of the housing and economic factors
that illustrate Salem’s need to continue to invest in housing and economic development and to
support a variety of programs to assist all of Salem’s low and moderate income neighborhoods. The
narratives describe the various programs and services that the city proposes to undertake in FY07.
The programs listed in the following sections are a combination of those managed by the city and by
community organizations.
II-1
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Activities are typically identified for funding from a specific year’s resources, but for some projects,
such as multi-year funding commitments or construction projects, the actual activity may be
completed in the following fiscal year or undertaken over several fiscal years. Additional programs
may be undertaken during FY07, which are ongoing from a previous fiscal year. Those ongoing
projects are not fully described in this plan, but are listed on Page II-23 for informational purposes.
II-2
CDBG assisted housing rehabilitation project underway.
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
II.A. AFFORDABLE HOUSING
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.
According to the 2000 U.S. Census:
• Salem’s population is made up of 46.7% low- to moderate-income persons.
• Salem has old housing stock: 62% of Salem’s total housing units were built prior to 1950.
• 24.6% of Salem homeowners are paying thirty percent or more of their income in monthly
housing costs.
• 35.5% of Salem renters are paying thirty percent or more of their income in monthly housing
costs.
• The housing homeowner vacancy rate is .9% and the rental vacancy rate is 2.5%, indicating
that the supply of available housing in Salem is dramatically low.
In 2000, the median sale price of single-family homes and condominiums in Salem was $202,250 and
$165,500 respectively, yet by 2004, these figures had skyrocketed to $319,500 and $266,000. Recent
home prices have made homeownership increasingly unattainable for the average Salem family. In
turn, the high purchase price of multi-family housing results in higher rents in the rental units of
these homes.
The lack of affordable housing supply region-wide continues to heighten the demand on public
housing and subsidy programs as well. The demand for subsidized housing far exceeds the supply.
People on waiting lists for units or vouchers must wait several years before an opening is available.
II.A-1. Specific Housing Objectives
Salem has been at the forefront of providing affordable housing for the North Shore area, despite the
shortage of affordable housing both regionally and throughout the Commonwealth. Although
Massachusetts General Law Chapter 40B requires that 10% of the residential housing in every city
and town in the Commonwealth be affordable, less than 12% of the communities have actually met
the challenge. Salem is one of the 41 Massachusetts communities to reach the 10% goal. As of June
2005, 12.8% of Salem’s year round housing is affordable, while the state average was just 9.0%. Of the
30 cities and towns in the North Shore HOME Consortium, Salem has one of the highest percentages
of affordable housing, second only to Georgetown .
II-3
Furthermore, the DPCD administers several successful housing programs. The First Time
Homebuyers Downpayment Assistance Program provides assistance for the greatest hurdle that
most families looking to purchase their first home face—saving enough to make the required down
payment. The Housing Rehabilitation Loan Program works to rehabilitate housing to make it safe
and sanitary. The city also provides funding for homelessness prevention programs through
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
partnerships with Catholic Charities, NSCAP, the Salvation Army and HAWC. In addition, Salem is
a member of the North Shore Housing Trust, a nonprofit corporation established to undertake broad
initiatives that will lead to the preservation and creation of housing that is affordable to low- and
moderate-income families.
NS HOME Cons ort ium Com munit ies
Chapt er 40B S ubs idiz ed Hous ing - June 1, 2005
So urc e: M as s . Dept . o f Ho using & Co mmunit y Dev elo pment
0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0%
Boxford
N o r t h R ead i ng
West Newbury
Ly nnf i el d
Hamilton
Essex
Swampsco t t
M ar b l ehead
Rowley
Ro ckpo rt
M anchest er
Salisbury
Middleton
Nort h
M et huen
To psf ield
Merrimac
Amesbury
Gloucest er
Ip swi ch
Newburyport
W enham
Haverhill
D anver s
Wilmington
Peab o d y
Beverly
Andover
Salem
Georgetown
While the city has been able to accomplish a great deal, there is still more that can be done. The
following is a summary of Salem’s long-term housing strategy to help address the pressing housing
needs of its residents. This strategy includes both new housing production and preserving the
existing housing stock for Salem’s working families. The key components of the strategy include:
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• Producing New Housing Units
Salem consistently provides support toward the creation of new affordable housing units
through the conversion of old, abandoned or underutilized buildings and parcels into new
residential housing units. For example, in FY06, the City committed to funding assistance on
a project at 30 Endicott St./7 High St. being undertaken by the Salem Mission. It consists of
the acquisition of two buildings that together will provide 21 units of supportive housing to
chronically homeless individuals and an additional unit for a low-income resident manager
(the project has secured over $2M in State and Federal funding). Construction is slated to
start in June, 2006.
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 currently underway by Habitat for Humanity for the eventual ownership by a low-
to moderate-income family.
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
Salem Harbor CDC sponsors a number of programs that not only develop affordable rental
housing, but also increase affordable homeownership opportunities. The city provided
financial assistance toward the acquisition of a former restaurant on Palmer Street 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.
Furthermore, funds for affordable housing are set aside each year to provide resources for the
city, or a nonprofit partner, to take advantage of opportunities 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 which
resulted in a $50,000 contribution for affordable housing activities, including the
development of an affordable housing plan. In 2005, these funds were provided to the city in
order to begin this activity. During FY07, the DPCD will work toward undertaking these
activities.
• 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. In February 2003, the city reached an agreement that will keep Salem Heights’ 283
apartments rented at affordable rates for 100 years. The city is currently negotiating the
renewal of the agreement with Loring Towers.
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• Improving Public Housing
The Salem Housing Authority continues to manage and maintain its 715 units of elderly,
family, and handicapped housing stock. There is still a dire need for sufficient funding in
order to perform routine maintenance and repairs in the maintenance of these public housing
units, many of which are more than 50 years old. Modernization work, however, is
progressing through funding of applications made by the Salem Housing Authority to the
Commonwealth of Massachusetts’ Department of Housing and Community Development. A
2002 bond bill awarded the Salem Housing Authority $5,000,000 to finance various projects.
Work in the final stages includes: drainage improvements and de-leading of units at
Rainbow Terrace, abatement of water infiltration and replacement of the emergency
generator at 27 Charter Street, and conversion of the heating system to gas at Garden Terrace.
The Salem Housing Authority has begun other modernization work, which encompasses
repairs to the sprinkler system at 27 Charter Street, building envelope work for the roof,
windows, masonry work at the Phillips House, conversion to gas and upgrade of heating
systems at Rainbow Terrace, and re-roofing at Bertram Terrace and 117 Congress Street.
Multi-million dollar design plans are underway for improvements to the exterior building
envelope at Rainbow Terrace. Plans include new siding, roofing, windows, venting of stoves
and bathroom exhaust fans, and concrete repairs to stairs.
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
• 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 (FTHB). The FTHB Program had been highly successful in assisting
moderate-income first time buyers. However, in the past five years, less than three percent of
the households assisted with Salem’s FTHB Program have been low-income households.
Rising purchase prices have required larger downpayments, making it increasingly
prohibitive for lower income families to purchase a home. Current market conditions are
such that perspective homeowners in the low-income range are in need of deeper
downpayment subsidies. Also in recent years, many of Salem’s LMI areas have seen a rise in
condominium conversions resulting in the concern that more affluent owner households are
displacing LMI renter households who cannot save up the downpayment necessary to
become a homeowner in their own neighborhood. To meet these identified needs, the City of
Salem applied for and was recently awarded American Dream Downpayment Initiative
(ADDI) funds administered through the North Shore HOME Consortium. The City will use
these funds to offer deeper downpayment assistance in the form of 0% deferred-payment
loans to eligible applicants for up to 3% of the purchase price, up to a maximum of $13,000.
ADDI funds can be used in combination with the FTHB Program which currently offers 0%
deferred-payment loans for 50% of the downpayment with a maximum of $6,500.
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.
• Providing Assistance to Renters
This year, the city will continue 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.
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• 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.
Through the rehabilitation of existing housing stock, more homeowners, as well as tenants
residing in rental units, can live in decent housing. The city continues to assess procedures
and policies of this program. During the upcoming year, we will be expanding the program
to investor-owners with low- to moderate-income tenants, to address code compliance and
health and safety issues and to discourage the conversion of affordable rental properties into
market rate condominiums.
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
In addition, the City will directly offer deleading assistance programs for owner occupied
and investor-owner units through MassHousing’s Get the Lead Out Program and the City’s
Gap Filler Loan Program. These programs can be combined with the City’s Housing
Rehabilitation Loan Program.
o As a Local Rehabilitation Agency (LRA) for the Get the Lead Out Program, the City
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. There is no cap on the amount of Get the Lead Out funds that
can be loaned annually in a City.
o The Gap Filler Loan Program fills the funding gap that may occur where Get the
Lead Out Program Funds end and Housing Rehabilitation Loan Funds begin. With a
program budget of $75,000, our goal is to assist approximately 16 units through the
Gap Filler Loan Program over a 30-month grant period, ending July 31, 2008.
• 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
second 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.
II.A-2. Needs of Public Housing
The City of Salem consults with the Salem Housing Authority on public housing needs as part of the
consolidated planning process. These needs are considered with others expressed by residents,
municipal departments and local agencies. As stated previously, the SHA continues to implement its
modernization programs through separate funding sources. The SHA has not been identified as a
“troubled” public housing agency by HUD. In addition to requiring a tenant to sit on the SHA board,
the Salem Housing Authority has a Resident Advisory Board (RB) that encourages public and
subsidy residents to become more involved in management.
II.A-3. Barriers to Affordable Housing
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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
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
Program, First Time Homebuyer Program and Affordable Development Programs the city is able to
address some of these barriers.
II.A-4. Homelessness and Homelessness Prevention
In addition to being a leader in providing affordable housing, Salem also is at the forefront of
providing services for those who are homeless or at risk of homelessness. Several agencies that serve
both Salem and the region are located in the city. Salem is home to the Salem Mission, a 34-bed
shelter for men and women 18 years or older. The Salem-based Help for Abused Women and their
Children (HAWC) is a regional agency, which offers emergency shelter for battered women and their
children. The Salvation Army provides short-term emergency housing at local hotels/motels. DPCD
works directly with the North Shore Community Action Programs (NSCAP) to expand and enhance
its existing programs that address the housing crisis for homeless families and those at risk of
homelessness.
II.A-4.1. Sources of Funds
The City of Salem relies on its federal funding to address homeless needs and conduct homeless
prevention activities. Each year, through the public services program the City of Salem solicits
proposals from nonprofit organizations for housing and community services programs. Through
this process, the city funds various homeless programs including, but not limited to: rental
downpayment assistance program, homeless prevention emergency assistance, outreach
programs, and transitional housing.
The North Shore HOME Consortium, of which the city is a member, also has received funds
through the McKinney-Vento Homeless Assistance Act programs, however the Consortium
distributes these funds directly to area organizations. In the past, the Salem Mission has been a
subrecipient of these funds. The Salem Mission also receives funding from the state, other
nonprofit organizations and private corporations.
II.A-4.2. Homelessness & Chronic Homelessness
Understanding that people who are homeless have individualized needs, the City of Salem works
with service providers that offer an array of services that address needs ranging from meal
provision to permanent housing. City-funded programs currently being undertaken in Salem to
address homelessness include, but are not limited to:
• Salvation Army – provides short-term emergency housing at local hotels/motels.
• Salem Mission – The Mission provides meals and clothing, delivers on-site medical and
mental health services and refers clients to services including housing, health, public
benefits, employment and training, veterans’ services, detoxification, substance abuse
and mental health assistance. Having recently moved to a new, larger facility, they are
working toward expanding and adding programs, such as computer training, to help
increase self-sufficiency, with the goal of working toward eliminating the cause of
homelessness, rather than just addressing the symptoms of homelessness.
• Help for Abused Women and their Children – a regional agency headquartered in Salem
which offers emergency shelter for battered women and their children and provides
counseling, referrals, advocacy and day care.
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• Haven From Hunger – provides meals, a food pantry and various job-training programs.
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
• St. Joseph’s Food Pantry – provides a food pantry for low and moderate income residents
and food distribution to elderly and disabled residents.
In FY06, the City committed to funding assistance on a project at 30 Endicott St./7 High St. being
undertaken by the Salem Mission. It consists of the acquisition of two buildings that together
will provide 21 units of supportive housing to chronically homeless individuals and an
additional unit for a low-income resident manager (the project has secured over $2M in State and
Federal funding). Construction is slated to start in June, 2006.
In addition, the City has a long-established Downtown Outreach Program Steering Committee to
address homelessness in the downtown area. The Committee continues to meet on a monthly
basis to review the progress of the Downtown Outreach Worker in connecting homeless
individuals with housing, detoxification and other human services. They also discuss issues such
as the availability of detoxification beds and long-term planning efforts for homeless individuals
who refuse services due to mental health or alcohol/drug abuse problems. The Committee
includes representatives from the downtown business community, the Salem Mission, and the
Salem Police Department as well as other interested individuals.
The City of Salem also continues to support and administer Salem H.O.P.E. (Human
Organization Partnership Effort) a network of human service providers that meets quarterly at
rotating social service agency locations. Through this program, agency representatives are
introduced to each other, exchange information, announcements and updates and enhance
coordination of programs. They work to fill gaps in services, avoid the duplication of services,
and coordinate efforts. DPCD provides staff administration, covers mailing costs and produces a
Salem H.O.P.E. quarterly newsletter.
II.A-4.3. Homeless Prevention
Homeless prevention activities sponsored by the city come in various forms. Catholic Charities,
HAWC, Salvation Army and NSCAP all provide a CDBG funded Homeless Prevention Program,
which provides emergency assistance to families at-risk of homelessness through eviction. Save
Our Children runs a Children’s Pantry distribution program, which provides food and supplies
to families with children. Food pantries such as CDBG funded programs at the Salem Mission,
St. Joseph’s Food Pantry and Haven From Hunger help subsidize food costs for very-low income
families.
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City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
II.A-5. Fiscal Year 2007 Affordable Housing Activities
While the City of Salem undertakes many strategies for families to live in decent, affordable housing,
following are the affordable housing activities and homelessness programs that will receive FY07
federal funding. All of the proposed programs are either available citywide to households that meet
HUD’s federal income eligibility rules or are targeted to low- and moderate-income neighborhoods.
Program delivery costs may be included within the proposed funding estimates.
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The apartment building at 20 Endicott St. and the former St. Mary’s rectory
will provide permanent and transitional housing in an educational and
supportive setting for guests in the Salem Mission shelter.
The Planning Office of Urban Affairs’ artist’s rendering of
proposed affordable housing at the site of the former St.
Joseph’s Church complex.
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
II.A-5.1. Preservation of Existing Housing
• Housing Rehabilitation Loan Program
The Housing Rehabilitation Loan Program provides technical and financial assistance to help
Salem’s homeowners make needed improvements to their properties. The program’s primary
objectives are the elimination of lead paint, hazardous health and safety conditions, code
violations, and barriers to accessibility. The program rehabilitates single and multi-family
properties, which also creates and/or improves rental opportunities. The city requires rents in
multi-unit dwellings rehabilitated with city funds be restricted to affordable rates2 for the loan
term .
Projected Accomplishments: 9 Housing Units
Proposed Funding: $275,969
• Investor-Owned Rehabilitation/Code Enforcement
In FY 2007, the city will expand the Housing Rehabilitation Loan Program to assist investor-
owned properties. Requested by residents to address the issue of substandard rental housing,
funds will be set aside to addressing building code violations and health and safety issues in
investor-owned properties with preference to locations in low to moderate income
neighborhoods. Upon completion of the rehabilitation, and for at least 15 years thereafter, all
units assisted with federal funding will be restricted to affordable rents2.
Projected Accomplishments: 7 Housing Units
Proposed Funding: $100,000
II.A-5.2. Homeownership Opportunities
• First Time Homebuyer Programs
The First Time Homebuyer Downpayment Assistance Program provides 0% interest deferred payment
loans to families that wish to purchase a home in the City of Salem. The loan is deferred, as long
as ownership of the property is not sold, transferred or refinanced. This program provides
renters with the opportunity to become homeowners while freeing up a rental unit for another
family. Included is first-time monies received through the American Dream Downpayment
Initiative which will be limited to providing funding assistance to lower income households.
Projected Accomplishments: 18 Households
Proposed Funding: $246,089
II.A-5.3. Rental Housing Assistance
• Rental Assistance Programs
The Rental Downpayment Assistance Program, administered through local social service agencies,
provides 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 housing.
Projected Accomplishments: Assist 42 households
Proposed Funding: $50,000
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2 Rents are established by HUD annually.
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
II-12
• Community Support Services (housing services, homeless and/or homeless prevention
programs)
This program provides grants to nonprofit agencies for social service programs that assist
homeless individuals and families as well as low- and moderate-income Salem residents in need.
Funded programs are selected through a competitive Request for Proposal process. Included is
the Homelessness Prevention Program that provides emergency grants to low- and moderate-
income residents in order to eliminate rent or utility arrearages in order to prevent families from
being displaced, as well as the Downtown Outreach Program which provides for a Street Advocate
to connect homeless persons to shelter and other needed services. In FY06, the City entered into
several 2 year agreements with agencies to provide programs in FY06 and FY07.
Programs with existing CDBG funding agreements for FY07 include:
Help for Abused Women & their Children Homeless Prevention
Catholic Charities Homeless Prevention
NSCAP Homeless Prevention
Salvation Army Homeless Prevention
Salem Mission Outreach Street Advocate
Salvation Army Transitional Housing Program
Agencies submitting proposals for FY07 funding include:
Independent Living Center Housing Educational Services
Salem Harbor CDC First Time Homebuyer Education
Projected Accomplishments: Funding for 6 existing programs already under Agreement and
grants to approximately 2 additional social service agency programs.
Proposed Funding: $59,200
• Lincoln Hotel – Section 108 Loan Repayments
This activity provides for continuation of annual payment of principal and interest for a HUD
Section 108 Loan obtained in 1988, which was used for rehabilitation of the Lincoln Hotel rental
units.
Proposed Funding: $59,000
II.A-5.4. Affordable Housing Development Programs
• Affordable Housing Development
The city currently allocates funding for affordable housing development which may include
programs such as Acquisition Program, Receivership Program, and Affordable Housing Trust or
directly toward new affordable housing unit development. Funds are allocated as potential
affordable housing development opportunities arise and are selected based on their
appropriateness and feasibility.
The Acquisition Program enables the city or an eligible nonprofit to enter into purchase and
sale agreements to acquire properties and create affordable housing units. The effort focuses
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
on abandoned or blighted properties, residential properties to be renovated and re-sold to
lower income eligible first time homebuyers, and acquiring and converting non-residential
properties into affordable housing and/or rental units. The funds are used to secure
properties until permanent financing is obtained. It is required that the units created remain
affordable at least fifteen years, and in some cases in perpetuity. Projects recently receiving
funding, but still in the planning stages, are the development of 15 units of affordable
housing at 50 Palmer Street by Salem Harbor CDC and 21 units of supportive housing to
chronically homeless individuals by the Salem Mission.
The Receivership Program enables the city to address those properties where the owner has not
maintained the property sufficiently nor responded to repeated attempts by the city to
enforce health and safety codes. In order to eliminate the displacement of families, a receiver
will be appointed to rehabilitate and manage the properties.
The Affordable Housing Trust Fund is being formally established for the purpose of developing
affordable housing. Developers are encouraged to contribute to this fund.
While the allocation of funding to specific projects is still to be determined for FY07, one new
housing development being considered is the project at the St. Joseph’s Church complex, which is
being redeveloped by the Planning Office for Urban Affairs. They propose to construct a total of
45 ownership and 30 rental units which will include all 30 apartments as affordable to persons
below 60% of median area income (18 of which to be below 50% of median area income) and 15
of the 45 condominiums being considered affordable for persons below 80% of median area
income. In addition, the city is working with the developer to determine the feasibility for the
potential construction of a Community Life Center within the site.
Projected Accomplishments: Creation of a minimum of 45 affordable housing units
Proposed Funding: $140,000
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City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Economic Development
II.B. ECONOMIC DEVELOPMENT
According to the 2000 Census, Salem has an average of 46.7% low- and moderate-income residents.
Further, Salem’s median household income in 2000 of $44,033 ranks 286 out of 351 cities and towns in
the Commonwealth. For these reasons, Salem continues to focus on economic development in order
to create jobs.
The City of Salem is committed to continuing efforts to stimulate economic development, particularly
in the neighborhood business districts. The Department of Planning and Community Development
works to bring new employers to the city, while retaining jobs by helping existing businesses
improve their commercial infrastructure or expand their operations. The improved vitality in our
neighborhood and downtown commercial districts has the residual affect of providing goods and
services locally, stabilizing neighborhoods, as well as improving public safety.
In the coming fiscal year, the city will continue to redevelop commercial districts and work
aggressively to attract employers who provide good jobs at good wages for Salem residents.
II.B-1. Strategies for Economic Development
The following is a summary of Salem’s long-term economic development strategy, which will help to
generate new tax revenues, to establish new businesses that provide residents with the products and
services they desire, to create new jobs, and to revitalize our commercial areas. The key components
of the strategy include:
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• Providing Additional Financing Opportunities for Businesses
Businesses often need additional assistance and more creative financing options than may be
offered by banks. Even the very best innovative new business idea often has difficulty filling
the “gap” between what they can invest and what banks will loan versus the cost of the
project. Without capital, new equipment or storefront improvements, some of the best small
businesses can fail. The Salem Business Loan Program offers expanded financing
opportunities for local entrepreneurs, while creating jobs and revitalizing the city. The
program provides these types of loans:
Microenterprise Assistance - provides loans to low- to-moderate income entrepreneurs to
assist with their microenterprise business (5 or fewer full-time employees, including
the owner)
Commercial Revitalization – provides loans to business owners in the downtown and
eligible neighborhood districts to assist with the exterior rehabilitation of their
business and/or to correct code violations
Special Economic Development – provides loans to business owners throughout the city in
exchange for jobs creation and/or job retention for low- and moderate-income people.
Low-interest loans for commercial, industrial or mixed-use projects help create and retain
jobs while improving the appearance of neighborhoods and promoting economic growth.
For example, projects may range in size from a $2,500 grant for a storefront improvement
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Economic Development
downtown to a $25,000 loan for a microenterprise business in the Point, to $50,000 in gap
financing assistance to bring a historic commercial building into compliance with the fire
code. The DPCD will continue to work with business owners to help finance a small project
or to assist with gap financing of larger projects.
• Providing Technical Assistance for Small Businesses
Often small business owners need some degree of technical assistance to help them with
managing or growing their business. The needs of local entrepreneurs range from business
planning, drawing up financial statements, or navigating the city permitting process.
The city’s Economic Development Planner assists with new business location or existing
business relocation, walks new businesses through the permitting process, and coordinates
available loan programs. The city also works in collaboration with several agencies to
improve economic opportunity in Salem by providing technical assistance to businesses. The
Salem Main Streets Initiative Downtown Program, Salem Partnership, Salem Chamber of
Commerce, Destination Salem, Salem Harbor CDC, SBA Small Business Development Center
and Salem State College Assistance Corporation’s Enterprise Center each work in
cooperation with the city to provide business programs, with some of these programs
targeted toward low-income, minority and female entrepreneurs.
• Revitalizing the Downtown and Neighborhood Commercial Districts
Healthy vibrant downtown and neighborhood commercial districts are essential to Salem’s
overall economic health. In addition to the Small Business Loan Program, the city’s
Storefront Improvement Program also helps improve the physical appearance of districts by
advocating for appropriate design and historic preservation. By offering small business loans
and grants toward new signage and façade improvements, the City is helping to enhance our
historic neighborhood business districts with financial incentives to Salem business and
property owners. Furthermore, the City has developed the City of Salem Commercial Design
Guidelines to help business and property owners with appropriate design. Copies are free at
either the DPCD office or on the City’s website.
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• Attracting Major Employers
In 1988, the list of Salem’s largest employers read like a Who’s Who of the region’s largest
manufacturers. Today, not a single of those manufacturers appears in the Top 10. Salem has
moved from a manufacturing and retail base into a diversified, knowledge-based economy.
Nevertheless, no matter which industry sector is most prominent, the need still exists for
attracting employers who can provide large numbers of jobs that give working families a
chance to earn a decent living.
In partnership with the state, Salem will continue to work to attract major employment
opportunities. The Economic Target Area Program, for example, is a special designation by
the Commonwealth that allows Salem to offer innovative tax programs and creative
financing options, including Tax Increment Financing, as an incentive for new or expanding
businesses. MassDevelopment, a state financing agency, also continues to be a major force in
Salem’s revitalization, providing much needed financing for several downtown
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Economic Development
redevelopment projects. The effort to attract new employers will also require a campaign to
market and promote Salem as a great place to live and work.
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• Revitalizing Abandoned Industrial Parcels
In old cities, especially in the industrial northeast where very little wide-open “greenfield”
space remains for new development, one component of economic revitalization is the reuse
of “brownfields”. Brownfields are abandoned or underutilized industrial parcels, often
contaminated, that blight a neighborhood and lie dormant on the tax rolls. Revitalizing these
sites - for commercial reuse, new residential or mixed-use development (residential and
neighborhood retail) - can help restore a neighborhood and make the land productive again.
The city has identified brownfield sites and worked toward remediation solutions in the
Boston, Bridge and Mason Streets corridor, thanks to a Brownfields Assessment
Demonstration Pilot under the Environmental Protection Agency’s (EPA) Brownfields
Economic Redevelopment Initiative. Redevelopment of the properties in the EPA study area
will be coordinated with the city’s North River Canal Corridor Neighborhood Master Plan,
which was completed in October 2003. In addition, the City has applied for funding through
the EPA for remediation grants to help with the clean-up of two sites in the Point
Neighborhood. Returning these and other Brownfields sites to productive use will help
improve the appearance of the neighborhoods and will help foster economic development.
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Economic Development
II.B-2. Fiscal Year 2007 Economic Development Activities
The City of Salem is dedicated to neighborhood economic development through efforts to revitalize
commercial districts, improve exterior building facades, and assist local business owners. The
following is a brief overview of the programs the city will fund in FY07. Program delivery costs for
loan administration may be included in the total economic development expenditures.
• Small Business Financial Assistance Programs
The city provides financial assistance to local business owners through its Business Loan
Program and Storefront Improvement Program, which are operated out of a funding pool.
The Salem Business Loan Program works to expand financing opportunities for local entrepreneurs,
while creating jobs for low- and moderate-income individuals and revitalizing the city’s urban
renewal area and income eligible neighborhoods. The program provides low-interest loans to
qualified entrepreneurs to cover the gap between the amount of financing needed for an
economic development project and the amount that conventional lenders can finance. Funds are
available for acquisition, construction, or rehabilitation of real property and for financing related
to the purchase of equipment, fixtures, inventory, leasehold improvements and working capital.
Terms and conditions of the loans vary.
The Storefront Improvement Program – This program is designed to encourage private investment
and reinvestment by new and existing property/business owners in the eligible neighborhood
and downtown commercial districts. The program allows a one-to-one match for façade
improvements. The match from the city is up to $2,500 for each project.
Projected Accomplishments: 5 businesses assisted; 10 low/mod jobs 3
Proposed Funding: $81,325
Location: Citywide availability with projects selected on a rolling basis. Priority for service in
the urban renewal areas and income eligible neighborhoods
• Business Technical Assistance
The city helps to coordinate and fund technical assistance services to local business owners. In
FY07, the city will consider funding requests from the Advancing Community Business (ACB)
program run by the Salem Harbor CDC, the Salem Main Streets Downtown Program, or other
organization providing comparable technical assistance.
The ACB Program targets low-income, female, and minority business owners or potential business
owners with business planning, access to financing and training. The majority of the participants
in the program are microenterprise owners with annual sales less than $300,000, operating as a
neighborhood business.
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3 Proposed accomplishments include business loans and storefront improvements using additional funds carried
over from FY06.
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Economic Development
Projected Accomplishments: 25 microenterprise owners or potential owners assisted
Proposed Funding: $50,000
Location: Citywide with a preference for businesses located in income eligible neighborhoods
and urban renewal areas
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Mayor Kimberley Driscoll performs the ribbon cutting at the grand opening of
the New England Soup Factory, April, 2006.
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Neighborhood Improvement
II.C. NEIGHBORHOOD IMPROVEMENT
Residents depend on neighborhood infrastructure and public facility improvements to make the city
the livable community that it is. By continually investing in neighborhoods Salem strives to be the
best place it can be for people to live and work. Park and street improvements, handicap access and
annual tree planting in various neighborhoods are projects that can be the life of a neighborhood. In
FY07, the city will continue the investment in our neighborhoods.
II.C-1. Strategies for Infrastructure and Public Facilities
• Public Infrastructure and Traffic Improvements
In FY07, CDBG funds will continue to be used to undertake improvement projects in eligible
neighborhoods, such as street paving, new sidewalks, curbcuts/crosswalks, traffic
improvements and the removal of architectural barriers citywide. Improvement projects
funded in previous years will also continue such as the Congress/Peabody Ward intersection
redesign and the Harbor/Lafayette intersection pedestrian improvements.
• Parks and Open Space
City parks, playgrounds, and open space help build communities and contribute to the
overall attractiveness of a neighborhood. The city will continue improvements to
neighborhood parks and playgrounds, and its citywide tree-planting program.
Improvements to Palmer Cover Park and the construction of a new park along the South
River on Peabody Street are in the planning stages.
• Neighborhood Planning Initiatives
The city is committed to conducting a series of neighborhood planning studies and
initiatives. The first of these, the North River Canal Corridor Neighborhood Master Plan has
already been completed. In FY05, a neighborhood planning process commenced for the
Point Neighborhood with the St. Joseph’s Church Reuse Study which has been completed. A
Point Neighborhood Historic Preservation Plan is currently underway for which Salem is
receiving Survey and Planning Grant from Massachusetts Historical Commission. The City
intends to coordinate the pedestrian safety improvements at the intersection of Lafayette and
Harbor Streets and the redesign of Lafayette Park with the St. Joseph’s Church complex
redevelopment, which will hopefully include a Community Life Center (using
reprogrammed funds from the Senior Center and Point Community Center). In addition, the
city continues to assess and clean-up known contaminated sites and is currently working
with state and federal agencies on several parcels. Other ongoing improvements in various
stages include the removal of the wall at Peabody Street, and the construction of a fence
adjacent to Palmer Cove.
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• Public Facility Improvements
The city will continue to invest in efforts that strengthen its public facilities including
handicap access improvements to the Loring Avenue firehouse , Pioneer Village and the
Witch House and historic preservation improvements to Old Town Hall. In addition, the
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Neighborhood Improvement
South River Harbor Walk is currently in design. These projects are funded with FY06 or
prior year funds.
II.C-2. Fiscal Year 2007 Neighborhood Improvement Activities
The City of Salem strives to create a truly livable community by continuing to invest in its
neighborhood infrastructure and public facilities. Due to the size and scope of these projects, some
require multi-year funding, yet the proposed funding levels are only for this fiscal year.
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• Neighborhood Street and Sidewalk Improvements
The city’s Street Improvement Program funds the repaving of streets, installation of curb
cuts/crosswalks, and the replacement of sidewalks in eligible neighborhoods.
Projected Accomplishments: Paving, curb cuts/crosswalks, and capital improvements in CDBG
eligible neighborhoods. Street locations to be determined.
Proposed Funding: $84,009
• Tree Planting Program
The city’s tree planting program provides funds for the planting of new street trees in target
neighborhoods to help beautify the streets and improve the environment. Each year, the Open
Space Department develops a list of proposed sites to plant trees based on resident requests.
Plantings are completed in the fall and spring of each year.
Projected Accomplishments: Plant 40 street trees in CDBG eligible areas.
Proposed Funding: $7,375
• Park & Playground Improvements
CDBG funds will be set aside for improvements to parks and/or playgrounds in low to moderate
income neighborhoods. Location to be determined
Projected Accomplishments: Improvement to one park/playground
Proposed Funding: $40,000
• South Harbor Garage – Section 108 Loan Repayments
This provides for the continuation of annual payment of principal and interest for a HUD Section
108 Loan obtained in 1994 which was used toward the acquisition of land and construction of the
South Harbor garage and retail storefront units.
Proposed Funding: $49,000
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Social Services
II.D. SOCIAL SERVICES (INCLUDING HOMELESS AND NON-
HOMELESS SPECIAL NEEDS)
Along with housing services to help provide decent, affordable housing and economic development
activities to help provide good jobs at good wages, individuals and families may have additional
needs that are specific to their household. The 5-Year Consolidated Plan identified the need for
various social service programs to primarily benefit Salem’s low- to moderate-income population and
those with special needs (i.e. physically or mentally disabled, elderly or frail elderly, youth, non-
English speaking residents, persons living with HIV/AIDS, substance abusers and homeless persons
and families). Each year, Salem sets aside funds for social service programs to address these special
needs.
Through a Request for Proposals process, the city makes awards to nonprofit service organizations
that offer such services. Public services eligible for funding include, but are not limited to,
employment, crime prevention, child care, health, substance abuse, education, fair housing
counseling, energy conservation, recreation programs, food programs and services for senior citizens.
Target populations include, but are not limited to, persons with HIV/AIDS, abused children, battered
spouses, elderly and frail elderly, minorities, non-English speaking residents, residents of public
assisted housing, persons who are mentally ill or mentally retarded, substance abusers, youth and
persons with disabilities. Funding proposals received are available for viewing at the DPCD.
As a result of the citizen participation process during the development of the Consolidated Plan in
2005 and due to the City of Salem’s 9.6% decrease in FY07 CDBG funding, the City of Salem
established the following funding priorities:
High Priority - May be for 1 or 2 year programs (max. $10,000 per program, per year for
non-municipal agencies)
o Housing (i.e. homeless prevention, housing education services);
o Services for homeless individuals and families;
o Neighborhood safety (i.e. fire or crime prevention);
o Food distribution;
o Child care;
o ESL and citizenship education;
o Job training;
o Senior transportation; and
o Anti-poverty programs that directly help reduce household financial burdens.
Medium Priority - 1 year programs only (max. $5,000 per program for non-municipal
agencies)
o Youth activities & recreation programs; and
o Health/wellness programs.
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All other program proposals may be considered Low Priority (1 year programs only; max.
$2,500 per program). Due to expected funding decreases, first-time proposals for Medium or
Low Priority programs are unlikely to be awarded funding. Public service programs must
benefit Salem residents whose income is no higher than HUD’s definition of moderate
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Social Services
income. However, whenever possible, programs shall be limited to benefiting only low or
very low income persons, in order to target persons with the highest need.
II.D-1. Strategies for Social Service Needs
In Fiscal Year 2007, the City of Salem will continue its support of social service agencies that serve
Salem’s residents in need. The key components of the strategy include:
• Provide Financial Assistance to Priority Social Service Programs
Through an annual competitive funding round, the City of Salem financially supports
nonprofit social service agency programs that provide needed services that help families
meet the cost of living, promote family self-sufficiency, serve special populations or provide
crisis intervention assistance. In addition, along with the many programs that help directly
with housing and household expenses (see Affordable Housing), funds support several other
programs which indirectly assist with housing in many ways such as increased pay (i.e. job
training, ESL programs) and decreased monthly expenditures (i.e. child care, food programs)
so households can better afford rent or mortgages. Note: HUD regulations cap the amount
funds used for social services at 15% of the total block grant.
• Provide Administrative Assistance to Salem H.O.P.E.
Salem H.O.P.E. is a networking group of social service agencies that meet at rotating public
service agency locations. Open to all social service agency representatives, it is a forum to
work toward filling gaps in services and avoiding the duplication of efforts. DPCD staff
coordinates the quarterly meetings and distribute the Salem H.O.P.E. newsletter.
II-22
George Delaney, center, the new director of the Salem Mission
talks with Carol Caulfield, case manger and Dale Lord, street
advocate, in the men's area of the mission.
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Social Services
II.D-2. Fiscal Year 2007 Social Services Activities
The City of Salem has established priority goals that support a broad range of social service programs
that are consistent with the needs and goals identified in the Five Year Consolidated Plan.
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• Community Support Services
This program provides grants to nonprofit agencies for social service programs that assist
homeless individuals and families as well as low- and moderate-income Salem residents in need.
Funded programs are selected through a competitive Request for Proposal process. In FY06, the
City entered into several 2 year agreements with agencies to provide programs in FY06 and FY07.
Programs with existing program agreements for FY07 include:
Agency/Organization Program(s)
Haven from Hunger
HAWC
Morgan Memorial
NSCAP-Salem Cyberspace
Salem Community Child Care
Salem Council on Aging
Family Self Sufficiency Center
Salem Mission
Salem YMCA
Wellspring House
Food Pantry Program
Children’s Program
Career Planning Program
CyberYouth
Kindergarten After School Program
Transportation Program
After School Evening Program
Food Pantry
Child Care
MediClerk Program
Agencies submitting proposals for FY07 funding include:
Agency/Organization Program(s)
Bentley Elementary School
Boys & Girls Club
Boys & Girls Club
Catholic Charities
Cerebral Palsy Association
Family Self-Sufficiency Center
North Shore Community Health
Salem Access Television
Salem Fire Department
Salem Harbor CDC
Salem High School
Salem Police Department
Salem YMCA
Salvation Army
Save Our Children
St. Joseph’s Food Pantry
VOCES
After School Enrichment Programs
Enhanced Program Development
Gang Prevention Program
Little Lambs Program
North Shore Infant & Toddler Program
Workplace Literacy Project
Outreach & Enrollment Project
Youth in Action
Juvenile Firesetter Program
Latin/American Festival Community Day
LaUnion Latina Program
Point Neighborhood Bicycle Patrols
Teen Initiative
Prescription Program
Children’s Food Pantry
Food Pantry
Hispanic Education Program
Proposed Accomplishments: Funding to 10 existing programs already under agreement and
grants for up to 16 additional social service agency programs to assist an estimated 8062 persons.
Proposed Funding: $145,689
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Planning & Administration
II.E. PLANNING & ADMINISTRATION
Community Development Block Grant funds may be used to cover costs associated with planning
and general administration. In Fiscal Year 2007, the City of Salem plans to use CDBG funds to
provide the tools needed to manage the CDBG program.
II.E-1. Fiscal Year 2007 Planning & Administration Activities
• General Program Administration
This activity provides for the necessary general administration costs for CDBG program
oversight and coordination. It also includes the development of plans and studies and the
provision of public information. General administration costs are capped at 20% of the available
CDBG funds.
Proposed Funding: $273,175 (salary, non-salary, studies)
II-24
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Action Plan Revisions and/or Ongoing Projects
II.F. FISCAL YEAR 2006 ACTION PLAN REVISIONS AND/OR
ONGOING PROJECTS
During the program period it may be beneficial to revise the Annual Action Plan in order to reflect
changes in priority needs and goals. In addition, while a number of activities take place entirely in
one fiscal year, projects of a larger size, scope or complexity are undertaken as multi-year projects.
The chart below provides a list of revisions to the FY06 Action Plan:
Project Description
Street Improvements These funds will be directed toward safety improvements
for the intersection of Congress and Derby Streets.
City Hall Elevator
Despite repeated efforts, the City was unable to secure the
necessary matching grant funds to undertake this project.
Therefore, funding will be reprogrammed primarily to the
Congress/Derby Intersection Safety Improvements and the
Harbor/Lafayette Pedestrian Improvements.
Salem Marketplace
A small portion of funding from the Essex Street Pedestrian
Mall Improvements will be reprogrammed for pre-
development costs (i.e. surveys, appraisals, environmental).
Point Community Center
Improvements
Senior Life Center
Funding from these activities is to be reprogrammed toward
the Community Life Center phase of the St. Joseph’s Church
complex redevelopment, located in the Point Neighborhood.
The chart below provides a list of activities that will be continued into FY07:
II-25
Project Description
Congress/Peabody/Ward
Intersection Project
Redesign and reconstruct a dangerous neighborhood
intersection
Economic Development
Programs
Programs include Business Loans, Neighborhood Storefront
Improvements and Business Technical Assistance
Essex Street Pedestrian Mall
Improvements
Improvements to the Essex Street pedestrian mall in the
Urban Renewal Area.
Flynntan Assessment & Clean-
up
Environmental assessment, reporting and clean-up for future
development.
Harbor and Lafayette Streets
Pedestrian Improvements
Design and implement pedestrian safety improvements,
which will be coordinated with the St. Joseph’s Church
complex redevelopment.
High Street Playground Fence Installation of new fencing around a neighborhood
playground.
Housing Programs
Programs include First Time Homebuyers Downpayment
Assistance, Housing Rehabilitation Loan Program and
Affordable Housing Programs
City of Salem FY 2007 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Action Plan Revisions and/or Ongoing Projects
Project Description
Lafayette Park Improvements Park improvements to be coordinated with the
redevelopment of the St. Joseph’s Church complex.
Loring Avenue Firehouse
Improvements
Installation of handicapped restrooms and electrical
upgrades to a public facility that also serves as a
neighborhood polling facility.
NICE Program
Program for small capital improvements in eligible
neighborhoods. Funds designated for the following: city-
wide handicapped parking signage and fence installation at
Palmer Cove.
Old Town Hall Improvements to this historic structure in the Urban
Renewal Area.
Palmer Cove Park
Improvements Redesign and reconstruction of a 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
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.
Tree Planting Program Planting of new street trees in eligible areas
Downtown Redevelopment
Project Infrastructure improvements such as period lighting
Willows Accessible Bathrooms
Project
Improvements to the bathrooms at the Willows Park to make
them accessible.
Witch House Handicapped
Accessibility Barrier removal activities to historic public building.
II-26
City of Salem FY 2007 Action Plan
HUD Required Narratives
III. HUD REQUIRED NARRATIVES
III.A. Geographic Distribution of Funds
Some of the activities the City of Salem plans to undertake in FY07 are available on a citywide basis.
However, the City typically targets activities to specific neighborhoods with concentrations of low-
and moderate-income households or to programs that benefit specific populations such as senior
citizens, disabled persons and minorities. The maps located in the appendices indicate that the areas
with the highest concentration of Hispanic, Black and Indian races are located within one of Salem’s
low- and moderate-income areas, the Point Neighborhood, as well as depict areas with block groups
with more than 51% low- and moderate-income residents (using 2000 census information) and of the
Urban Renewal Area. Based on the 2000 census, areas of low to moderate income concentration are
the Point Neighborhood, the neighborhoods along Boston Street, the area bordered by Jackson and
Wilson Streets and Jefferson and Highland Avenues, South Salem between Lafayette and Canal
Streets, the neighborhood south and east of Broad and Summer Streets to Washington and Canal
Streets, the neighborhood bordered by Winter, Bridge, Arbella and Briggs and the portion of Essex
Street in Salem Neck. When prioritizing activities, the City pays special attention to those low- and
moderate-income neighborhoods where the greatest needs have been identified and whose public
facilities and infrastructure are in the worst condition.
In accordance with CDBG regulation, specific activities, such as street, sidewalk and playground
improvements can only be undertaken in the low- to moderate-income neighborhoods or the Urban
Renewal Districts (Heritage Plaza East and West), with the exception of handicap access
improvements which can be undertaken city-wide. However, recognizing that needs are not solely
located in distressed neighborhoods, the City offers programs that may be accessed by people living
outside these areas. For example, the Housing Rehabilitation Loan Program, First Time Homebuyer
Downpayment Assistance Program, and the Small Business Loan Program are offered citywide to
allow any low to moderate-income individual to take advantage of their availability.
III.B. Managing the Process and Institutional Structure
The DPCD administers the City of Salem’s Community Development Program as well as the formula
funding received by the North Shore HOME Consortium for which the City of Peabody is the lead
agency. 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. 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.
III-1
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.
City of Salem FY 2007 Action Plan
HUD Required Narratives
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 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 and housing subcontracts and the Economic Development Planner coordinates the
management of the economic development subcontracts.
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.
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.
III.C. Coordination with Other Organizations
Salem Housing Authority: Although, the city does not currently use its CDBG funds to assist the
Salem Housing Authority, the DPCD coordinates with the Salem Housing Authority to address the
housing needs of Salem’s lower-income residents. While developing its Consolidated Plan, the city
consulted with the SHA to determine the agency’s most pressing needs. In addition, SHA’s
Comprehensive Plan must take into account the findings of the Consolidated Plan and the City of
Salem must certify that the documents are consistent.
The Mayor appoints four of the five Salem Housing Authority (SHA) board members, one of whom
must be a public housing tenant and one of whom must be a member of organized labor. Proposed
development sites or demolition or disposition of existing public housing developments must 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.
III-2
Other Organizations: In addition to the SHA, the City of Salem works cooperatively with private
housing providers and private and governmental health, mental health, and service agencies and
other interested parties to implement its Consolidated Plan. To this end, the city administers Salem
H.O.P.E. (Human Organization Partnership Effort), a networking group of human service agencies
that serve Salem residents. It is a free forum for agencies to learn about the services being provided
by other agencies in order to fill in gaps, coordinate efforts and avoid the duplication of services. All
human service agency representatives are invited to attend the quarterly Steering Committee
breakfast meetings held at rotating agency locations. Through this program, agency representatives
are introduced to each other and exchange information, announcements and updates. The strength
City of Salem FY 2007 Action Plan
HUD Required Narratives
in the delivery system of nonprofit services is in the networking, collaboration and coordination
among the agencies. DPCD is responsible for the organization and administration of this effort.
The city also works with nonprofit agencies to administer social service activities. Agencies are
urged to apply to the city for CDBG public services funding to undertake priority programs outlined
in the Consolidated Plan. Additionally, the City of Salem cooperates and coordinates with other
public agencies (and funding sources) to undertake specific activities. Examples include MHFA’s Get
the Lead Out Program and Mass Housing Partnership’s Soft Second Mortgage Program.
The City of Salem works with the City of Peabody, the lead community for the North Shore HOME
Consortium, to coordinate the implementation of its HOME-funded programs and, beginning in
2006, the ADDI program. 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.
III.D. Consolidated Plan Development Process
In 2005,the City of Salem hired a consultant, Community Opportunities Group, Inc., to complete the
Five-Year Consolidated Plan (covering Fiscal Years 2006-2010). In doing so, the consultant completed
an extensive consultation process with local agencies, department heads, neighborhood groups, and
key stakeholders. In addition to daytime focus group sessions and interviews, public meetings were
held during evening hours to encourage participation. In addition, the city held a public hearing to
kick off the planning process. Summaries of each meeting are provided in the Appendix of the
Consolidated Plan, along with copies of written public comment.
III.E. Citizen Participation - FY07 Action Plan
The public participation component for the FY07Action Plan began with a citywide public hearing
held on February 2, 2006. The hearing was sponsored by the DPCD and citizens were invited to
testify regarding priorities for housing, economic development and other community development
programs. The Draft Action Plan was made available and a 30 day comment period commenced on
March 29, 2006 with a second public hearing to be held on April 6, 2006. An Overview of Citizen
Participation is provided in the Appendix, including minutes of the public meeting.
III.F. Affirmatively Furthering Fair Housing
III-3
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 according to the 2000 U.S. Census). To ensure that this population has knowledge
and access to the city’s First-Time Homebuyer and Housing Rehabilitation programs, the city works
in cooperation with the Salem Harbor Community Development Corporation, a nonprofit
City of Salem FY 2007 Action Plan
HUD Required Narratives
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 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.
III.G. Monitoring
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
income, race and ethnic information on clients served and programmatic accomplishments. In
addition, public service subrecipients are monitored on-site each year (exceptions are noted in the
Monitoring Plan, which is located in Five-Year Consolidated Plan). 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/or other programmatic
requirements.
III.H. Long Term Compliance and Performance Measurements
In FY04, the DPCD began looking at different strategies of performance measurement for 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 include performance measurement indicators. The FY05
CAPER outlined 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.
III-4
City of Salem FY 2007 Action Plan
HUD Required Narratives
Housing Programs - Housing rehabilitation program staff track each project in a formal system that
details project status and loan details. In addition, staff maintain a comprehensive written manual
detailing program procedures and policies. There is also a master loan spreadsheet that tracks all
loan details for the First Time Homebuyer 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 and
provides a quarterly report to the City’s Finance Department on new loans issued, loan status and
loan discharges.
Additionally, the city ensures long-term compliance with program requirements, including minority
business outreach and comprehensive planning requirements, in several ways. In particular, the
DPCD has a Monitoring Plan in place, that allows the city to track whether long-term goals are being
met, including minority business outreach. As detailed in the Managing the Process and Institutional
Structure section of this document, the city manages its programs to ensure compliance with
identified goals.
III.I. Lead-based Paint Hazards
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 and through the Gap Filler Program or MassHousing’s Get the Lead Out Program, both
administered through the City. Through the Salem Housing Rehabilitation Loan, Gap Filler and Get
the Lead Out Programs, the City provides loan funds for qualified applicants for lead testing, hazard
reduction and abatement activities, and temporary relocation reimbursements. Lead-based paint
hazard control measures undertaken are consistent with the federal Title X requirements and State
lead based paint regulations.
III-5
City of Salem FY 2007 Action Plan
HUD Required Narratives
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.
III.J. Anti-Poverty Strategy
This Anti-Poverty Strategy describes programs and policies the City is supporting in its efforts to
reduce the number of households living below the poverty level. Some public service agency
representatives state that Salem residents in poverty stay in poverty because they lack adequate skills
for better employment opportunities. As 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.
III.J-1. Education
The Salem School Department has been participating in a voluntary desegregation program since
1987 in an effort to give residents more choices about the school system they want their children to
attend. The City has used state funding to renovate and improve its educational facilities and
provide school-age children with an environment conducive to learning. MCAS results from 2004
show 52% of 10th grade students are advanced or proficient in English and 53% are proficient in
Mathematics, which is an increase since 2003. Salem has hired more than 40 new teachers in recent
years in efforts to reduce class sizes. As a result, students receive more personal attention and
instructional support.
Many of Salem’s schools focus on particular subjects. The school choice program is ideal for
educating children with specific skills that will enable them to obtain employment when they
graduate. For example, the Saltonstall School is a magnet school that focuses on science and
technology base. It is equipped with 140 computers for its 400-plus students. Like many of Salem’s
schools, the Saltonstall School provides transitional bilingual classes, which integrate English and
Spanish speaking students within the classroom. This approach helps Spanish speaking students to
become proficient in English. Encouraging youths to attend service- oriented schools will provide the
future workforce with the skills necessary to find employment and reduce poverty. In addition, the
Horace Mann Laboratory School focuses not only on academics but also attempts to teach students
important social skills that will help them communicate in the working world. The school also
encourages community service by offering programs to its students within nursing homes and
helping needy families. Activities such as these help students at an early age see the importance of
working and encourage them to obtain jobs after they finish their education.
III-6
Salem’s Parent’s Information Center provides parents with information to help make educational
decisions for their children. It provides interpretation and written translation services, resources for
school information, and adult education programs. The center also provides school placement
services. The Information Center coordinates the City’s school choice program, which is designed to
improve racial balance within the school systems. The City of Salem’s Title 1 Program is designed to
City of Salem FY 2007 Action Plan
HUD Required Narratives
provide programs such as Computers for Beginners for parents of school-age children. This type of
program is designed to help low-income families who may not otherwise have access to computer
training. The City’s attention to its public schools is part of a larger strategy to help children achieve
academically and in the work place. An adequate school system is crucial to reducing poverty in
future generations. The Salem Public Schools support bilingual classroom settings and technology-
based training that will enable those with lower incomes to improve their job opportunities.
Salem also has a Head Start Program which is operated within the Carlton School on Skerry Street.
III.J-2. Job Training and Employment Resources
The North Shore Career Center helps potential employees to improve their skills and meet the needs
of the job market. The Career Center receives its funding from federal, state and local resources.
Unfortunately, the funds are often subject to limitations. For example, the Center recently received a
National Emergency Grant that is restricted to assistance for people affected by Sears/Citigroup
consolidations. The Center also receives Title I funds, which are limited to serving very-low-income
people. While the National Emergency Grant and Title I funds meet important needs, they leave
some Salem residents underserved because not everyone meets the qualifications of these funding
sources. The Career Center continues to help economically disadvantaged populations receive
specific skills to obtain better paying jobs with the continued support of the City of Salem.
Salem is home to the Mass. Job Training, Inc, (MJT), a private non-profit organization which is
funded by various state and federal agencies. MJT offers programs such as basic adult education,
GED preparation and ESL classes. MJT also has programs to help young parents receive an
education that they might otherwise not be able to receive because they are disadvantaged. The
program offers a basic education and pre-vocational skills training to help adults obtain better
employment and reduce dependence on public assistance. Mass. Job Training, Inc. is a vital part of
Salem’s anti-poverty strategy. Job training and ESL classes help to strengthen and diversify the City’s
labor force by providing opportunities for lower-income people to advance in employment.
The City of Salem is the lead community for the North Shore Workforce Investment Board (WIB),
representing 19 surrounding communities. The WIB directs federal, state and local employment and
training funds so that job seekers can find training and employment and businesses can find
employees that are skilled and ready to work. Through partnerships with schools, colleges, training
providers, public organizations and businesses, the WIB builds and supports a workforce
development system that serves all members of the North Shore community at any point where
work-related services are needed.4 The WIB assist over 14,000 employers, schools and agencies,
adults, and youths each year with job screening services, labor needs programs, job training, career
training and other services. The WIB is also responsible for administering the F1rstJobs Summer
Employment initiative for North Shore Teens. F1rstJobs places North Shore youths in jobs that will
provide them with important job training and skills that can be utilized in the future when applying
for employment. Other programs include Training for Employed Workers, Training for Displaced
Workers, School to Career, Welfare to Work and Workforce Investment Act.
III-7
4 North Shore Workforce Investment Board, “Mission Statement,” <http://www.northshorewib.com/>.
City of Salem FY 2007 Action Plan
HUD Required Narratives
Through its CDBG funds, the City of Salem supports a variety of job training and employment
assistance programs, such as the Wellspring House MediClerk Program and self-sufficiency
programs run by the Salem Family Investment Center.
III.J-3. Affordable Housing
Through cooperative efforts with state, federal and local organizations, the City has taken a
comprehensive approach to preventing poverty. Providing adequate, affordable housing for Salem’s
low- and moderate-income residents is critical to the success of any anti-poverty strategy. High
housing costs and low-wage jobs continue to hinder the efforts of some to climb out of poverty. City
agencies such as the Salem Housing Authority and the DPCD are committed to providing safe,
secure, suitable, and appropriate affordable housing opportunities to extremely-low, very-low, and
low income family, elderly, and disabled households. In addition, many housing providers and
social service agencies work together to combat poverty in Salem. The City’s established
partnerships with agencies such as the North Shore Community Action Program, Inc. (NSCAP), the
North Shore HOME Consortium and the Salem Harbor CDC increase its success at bringing services
to lower-income residents and encouraging them to participate in revitalizing their community.
North Shore Community Action Programs, Inc. (NSCAP) is an anti-poverty agency providing
services to Salem, Peabody, Beverly and Danvers. The goal of NSCAP is to help low-income people
empower themselves as they move toward self-sufficiency, and to motivate the larger community to
be more responsive to the needs of low-income people. This agency provides an array of services,
such as assistance with home heating bills, ESL classes, a housing assistance program, and a
transition to work program with job training, financial management services and job-readiness
workshops. These programs are geared to help the poor become self-reliant and less dependent on
public assistance.
The North Shore HOME Consortium’s goal is to expand the regional supply of affordable housing
through the acquisition, rehabilitation, and new construction of rental units, homeownership
assistance and housing rehabilitation, and housing options for special needs populations and the
homeless. The DPCD is one of 30 member communities receiving a formula allocation of HOME
funds. Salem is committed to distributing its HOME funds to programs that provide assistance to
those in need of affordable housing. Some examples of HOME assistance in Salem include funds for
the Salem Mission, the City’s own Housing Rehabilitation Loan Program, the Salem Harbor CDC (a
CHDO) and rental downpayment assistance programs provided by NSCAP, Catholic Charities,
Salvation Army and HAWC. In addition to funds allocated to individual communities, the
Consortium also financially supports activities that contribute to affordable housing in the region.
III-8
Salem provides significant funds to community housing development organizations (CHDO’s),
specifically Salem Harbor CDC and North Shore Community Action Programs. CHDO’s are focused
on changing the social and environmental factors that foster poverty and in motivating low-income
residents to take control of their future and the future of their neighborhoods. Salem Harbor CDC
also has a strong neighborhood component and works directly with low-income persons to develop
their educational and employment skills to enable them to move out of poverty. Salem Harbor CDC
programs include job training, first time homebuyers, ESL, housing acquisition/rehabilitation and
economic development. It also serves as an agent of community organizing and neighborhood
City of Salem FY 2007 Action Plan
HUD Required Narratives
revitalization. The CDC works closely with public and private agencies to improve the quality of life
for Salem’s low- and moderate-income residents. NSCAP’s programs include scattered sites shelter,
ESOL and citizenship classes, transition to work programs, home care for senior citizens, fuel
assistance, weatherization and immigration, housing and welfare advocacy.
III.J-4. Social Services
According to the Census 2000, 1,352 female single parents have dependent children under 18, an
increase of 297 since 1990. The challenges facing this population are inadequate, affordable childcare
choices, a lack of jobs that provide “mother’s hours” and insufficient transportation opportunities.
The Massachusetts Office of Child Care Services, Region 3 office, is located in Salem. It provides
child care referrals and financial assistance. The agency provides a way for lower-income families to
obtain adequate daycare so they can obtain employment and improve their quality of life.
Through its CDBG public services program, the City of Salem funds approximately 30 social service
programs annually. Through an annual competitive funding round, the City of Salem financially
supports nonprofit social service agency programs that provide needed services that help families
meet the cost of living, promote family self-sufficiency, serve special populations or provide crisis
intervention assistance, all working to break the cycle of poverty. In addition, along with the many
programs that help directly with housing and household expenses (see Housing Section), CDBG
funds support several other programs which indirectly assist with housing in many ways such as
increased pay (i.e. job training, ESL programs) and decreased monthly expenditures (i.e. child care,
food programs) so households can better afford rent or mortgages. One example is the North Shore
Community Health Center which enrolls under and uninsured residents in programs for services
such as health care, food and fuel assistance. Other examples of programs funded include Catholic
Charities Little Lambs Program which provides a social worker to assist young families with
children, a child care program at Salem Point Child Care and the VOCES run Hispanic Education
Program. There are also non-CDBG funded programs, such as Salem Family Investment Center’s
Family Self Sufficiency Program which helps households overcome various obstacles to self-
sufficiency.
III-9
Salem H.O.P.E. is a networking group of social service agencies that meet rotating public service
agency locations. Open to all social service agency representatives, it is a forum to work toward
filling gaps in services and avoiding the duplication of efforts. DPCD staff coordinates the quarterly
meetings and distributes the Salem H.O.P.E. newsletter.
City of Salem FY 2007 Action Plan
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IV. APPENDIX
Appendix A: Application: Standard Form 424 & Certifications
Appendix B: Overview of Citizens Participation, Public Hearing Minutes, Summary of Comments
Appendix C: Maps
Appendix D: CPMP Needs Tables
City of Salem FY 2007 Action Plan
Appendix
IV.A. Application: Standard Form 424 & Certifications
City of Salem FY 2007 Action Plan
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IV.B. Overview of Citizens Participation
I. DEVELOPMENT OF DRAFT PLAN
To develop the FY07 Action Plan, the City of Salem undertook the following tasks:
A. Request for Public Services Funding Proposals
On January 24, 2006, the City of Salem published a legal ad in the Salem Evening News requesting
proposals for public service and housing programs. Requests for Proposals were also mailed to all
agencies who received CDBG funding during the previous year. Proposals were received on
February 21, 2006. A list of agencies submitting proposals is included in the FY07 Action Plan.
B. Initial Public Hearing
On January 19, 2006, the City of Salem published the English/Spanish legal ad in the Salem News.
English/Spanish notices was posted at City Hall & City Hall Annex. Copies of the notice were
provided to the Salem Public Library, Salem Council on Aging and the Salem Housing Authority for
posting. An English/Spanish Community Bulletin Board request was given to Salem Access
Television. Notices and a cover letter were provided to all City Councillors. A press release was sent
to the Salem News and the Salem Gazette. The public hearing notice was placed on www.salem.com
and was mailed to various social service agencies and neighborhood associations, as well as to the
Citizens Advisory Committee members.
The Public Hearing was held on February 2, 2006. A public participation guidebook was provided to
all attendees. A Spanish translator was present. Minutes of the meeting are included herein.
II. AVAILABILITY OF THE DRAFT PLAN & REQUEST FOR PUBLIC COMMENT
Several tasks were undertaken to notify the public of FY07 Action Plan availability and to obtain
public comment on the draft plans. An English/Spanish legal ad was published in the Salem News
on March 23, 2006 indicating the availability of plans, notice of 30 day comment period & Public
Hearing. English/Spanish notices were posted at City Hall and City Hall Annex and on
www.salem.com. Notices were provided to the Salem Public Library, Salem Council on Aging and
the Salem Housing Authority, and were emailed to several social service agencies and neighborhood
associations. Information regarding plan availability and the public hearing was provided to those
attending the Salem H.O.P.E. meeting of March 9, 2006. An English/Spanish Community Bulletin
Board request was provided to Salem Access Television. A press release was sent to the Salem News
and the Salem Gazette
Copies of the plans were provided to the Salem Housing Authority and Salem Public Library for
public viewing and copies were available at the Department of Planning & Community
Development. Copies of the plan were mailed to the members of the Citizens Advisory Committee
and were provided to the Salem City Council for its meeting of April 13, 2006.
The public comment period commenced on March 29, 2006 and ended on April 27, 2006.
City of Salem FY 2007 Action Plan
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A public hearing was held on April 6, 2006 at City Hall Annex which included three members of the
Citizens Advisory Committee. A Spanish translator was present. Minutes of the meeting are
included herein.
On May 10, 2006, the Salem City Council Committee on Community and Economic Development
discussed the plans with the Assistant Community Development Director. The City Council
approved the Application for Federal Funding at its meeting of May 11, 2006.
III. CITIZENS ADVISORY COMMITTEE
The Citizens Advisory Committee (CAC) is a group of individuals appointed by the Mayor. The
CAC usually includes one City Councilor and one or more of the following: representative(s) from
low/mod neighborhoods, representative of a non-profit agency, disabled person, elderly person,
minority person, representative of a Salem business, person on public assistance, and/or public
employee (i.e. police officer, teacher) and/or other interested Salem residents. The group reviews
funding requests received by nonprofit social services agencies and makes funding
recommendations. The CAC also reviews and comments on the draft Consolidated Plan.
Current appointed members are:
Lucy Corchado - City Councillor, minority & Point Neighborhood resident
Peter LaChapelle - public employee
Lt. Conrad Prosniewski - Police Officer
Jean Levesque - Asst. ADA Coordinator for City of Salem, senior citizen
Betsy Merry – Non-profit organization representative, business representative, local realtor
Jack Harris - Salem Disabilities Commission member
Kathy Harper - Salem Historical Commission representative, carpenter
Nestor Grullon - Minority, Point Neighborhood representative
IV. MINUTES OF 2/2/06 PUBLIC HEARING
The City of Salem held a public hearing regarding the development of the FY07 Action Plan for
Community and Economic Development for the period of July 1, 2006 to June 30, 2007. The public
hearing was held in the third floor conference room at the City Hall Annex, 120 Washington Street,
on Thursday, February 2, 2006 at 6:00pm. Present representing the City of Salem were Lynn Duncan,
Director of the DPCD. Kathy Winn, Deputy Director, Jane Guy, Assistant Community Director,
Tania Hartford, Economic Development Planner, Julie Quinn, Housing Coordinator and Naomi
Francisco, Administrative Assistant. Public Participation Guidebooks were available to all attendees
in the audience.
Ms. Duncan welcomed those present in the audience and indicated that Spanish translation was
available by Ms. Francisco. She gave an overview of the purpose of the public hearing and the
process to develop the Action Plan.
City of Salem FY 2007 Action Plan
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Ms. Guy stated that the purpose of the hearing was to obtain citizen’s views on Salem’s housing,
community and economic development needs and priorities in order to prepare the Action Plan for
federal funding. The FY07 Community Development Block Grant (CDBG) allocation will be
$1,158,000 which is $123,209 or 9.6% less than FY06. For HOME funds, she stated that the City
expected level funding (approximately $197,000), which is still $17,000 less than FY05. Ms. Guy
explained that funds must primarily benefit low to moderate income residents and can be projects or
programs that the City manages (like its First Time Homebuyer and Business Loan Programs) or
projects and programs that the city helps fund for management by other agencies, such as Salem
Harbor CDC’s Homebuyer Education Program and Independent Living Center’s Accessible Housing
Education Program. She noted that as a condition of funding, the City must complete a Consolidated
Plan every 5 years (which was completed in July, 2005) and annual Action Plans that outline the
activities to be undertaken. The Action Plan includes activities that were identified as priorities in the
5 Year Consolidated Plan, as well as any additional activities that are determined to meet any new
needs and priorities that have been identified since the Consolidated Plan was developed.
Ms. Guy explained that for a project to be eligible for funding, it must meet a National Objective, such
as assisting an income-eligible housing, being undertaken in a designated low to moderate income
are or urban renewal area, or creating or retaining jobs for low to moderate income persons. Ms. Guy
pointed out the eligible areas on a map of the city. She noted that types of eligible activities included
were Economic Development, Homeless and HIV/AIDs Programs, Planning & Administration,
Senior Programs, Infrastructure, Housing, Anti-Crime Programs, Public Facilities, Public Services and
Youth Programs.
Ms. Guy stated that in the weeks following the public hearing, the city will receive funding proposals
from non-profit agencies and will develop a draft Action Plan. The draft plan will be made available
for a 30 day public comment period, during which another public hearing will be held. Ms. Guy
asked the audience to consider what are Salem’s needs and what activities are suggested to meet
those needs.
Mr. Harlan Peabody asked why some of the borders of the low/mod income areas on the map were
drawn into the ocean. Ms. Guy responded that the borders are determined by census tracts, that all
tracts on the coast actually go out to the water, that it did not mean that activities in the ocean would
be eligible and that essentially it is a fault with the mapping program.
A member of the audience asked what types of social services programs were currently funded
through CDBG. Ms. Guy replied that programs included those for youth, homeless prevention,
childcare, senior transportation, fire prevention, homeless outreach in the downtown, Point
Neighborhood bike patrols, feeding programs, programs for disabled citizens, and job training. She
provided examples of some of the agencies receiving funding.
Ms. Hartford added that CDBG also funds Economic Development programs such as Main Streets
and Salem Harbor CDC’s Advancing Community Business.
Peter Pretorius asked how the money is tracked, how the programs are monitored, and how it is
determined if these programs need additional funding or if the funds have not been spent. Ms. Guy
stated that the City reports to HUD through and end of year report called the CAPER (she held up a
copy of the FY05 CAPER) and through IDIS, HUD’s computer program which the city must enter
City of Salem FY 2007 Action Plan
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specific required data in order to access the funds. The program is also monitored annually by the
city’s an independent auditor. Ms. Guy stated that she also undertakes an annual onsite monitoring
of each sub-grantee. She noted that funding designated for specific projects stays allocated to those
projects until the project is completed. If the project is no longer feasible, funds are reprogrammed.
Ms. Duncan stated that sometimes projects are handled by other departments and that at times
departments work together to implement projects. For example the Planning & Community
Development is now working with the Building Department on improvements to the Loring Avenue
Fire Station. She also stated that previously a few projects had been allocated funding before they
were ready to go.
Ms. Guy added that sometimes a project may be a multi-year activity, requiring funding from two or
more grant periods, such as Salem Harbor CDC’s improvements to their 59 rental units.
Mr. Pretorius asked how they can learn which sidewalks have been proposed in the plan and not
complete. Ms. Guy stated that the plan does not get as specific as noting which sidewalks will be
replaced. The Public Services department will determine which are the priority and the DPCD will
determine if the street is eligible.
Cynthia Pretorius asked the status of the Peabody, Ward and Congress intersection. She noted that
she often cleans the area and asked if someone from the City could regularly clean the property it
owns there. Ms. Duncan stated that the city has applied for EPA funding because it was discovered
that the site was not environmentally clean. The intersection improvements cannot be constructed
until the site is cleaned up. Ms. Guy added that portions of the project boundaries were in tax title
for quite some time, delaying the project.
Ms. Duncan stated that the project to remove the wall on Peabody Street and replace it with a fence
was moving forward. Ms. Pretorius was concerned that the replacement of the wall with a fence will
collect trash more.
Marcos Ortiz asked if CDBG funding can be used for the unanticipated cost of the clean up that
Salem Harbor CDC expended. Ms. Guy stated that while the clean up of contaminated sites is an
eligible project, CDBG can not be used to reimburse a project already completed.
Altagracia Gomez asked about the installation of traffic lights at Harbor and Lafayette streets. Ms.
Duncan stated that a consultant has made recommendations for wider sidewalks and improved
crosswalks. She questioned if the residents believed a light was needed. Ms. Gomez and Mr. Ortiz
replied in the affirmative due to numerous accidents at that intersection.
A member of the audience wanted to know what child care and after school programs were in place
for infants and young children and what kind of programs were available for children with special
needs or developmental delays. She asked if their funding was sufficient. Ms. Guy mentioned child
care programs such as the House of Seven Gables, Salem Point Child Care and the Salem YMCA,
after school programs at the Boys & Girls Club, Salem YMCA and SATV, teen job training at the
Family Self-Sufficiency Center and Salem Cyberspace. Programs for disabled or developmentally
delayed include Morgan Memorial Goodwill’s program at Salem High School and the North Shore
Infant and Toddler Program at Cerebral Palsy Association on Lafayette Street. Ms. Guy stated that
City of Salem FY 2007 Action Plan
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the questioner was welcome to come to the DPCD and that she could pull the proposal for her to
view the specifics of any of these programs. Ms. stated that all social service agencies have seen
funding cuts over the years and could always use more funding.
Ms. Guy noted that based on public comment during last year’s consolidated plan process, the city
has changed the Request for Proposals process to specify priority programs for funding such as
housing, food services, child care, job training and other anti-poverty programs.
A member of the audience asked the status of improvements to the Lafayette Street park. Ms.
Duncan stated that as the St. Joseph’s project moves forward, it would be practical to see what
improvements are needed at the park which will complement the new redevelopment.
Ms. Pretorius suggested the trash being picked twice a week in the Point Neighborhood. She stated
that due to its density, many properties do not have enough room to store their trash.
Ms. Guy noted that suggestions heard may not be CDBG eligible, but would be passed on to the
appropriate departments. She also encouraged residents of the Point to voice their concerns to their
Ward Councillor, Councilor Lucy Corchado.
Ms. Pretorius stated that there needs to be an active Point Neighborhood Association. She stated that
there have been attempts to energize it, but that no one seems to have time to invest in the
responsibilities of it.
Mr. Ortiz thanked the City for the monies that Salem Harbor CDC has received under the CDBG
grant and mentioned that they would be requesting additional assistance at 50 Palmer Street as well
as assistance with the infrastructure including sidewalks and signage. He stated that the First Time
Homebuyer classes will continue, as well as Advancing Community Business Program.
Members of the audience spoke about the difficulties with parking in the Point Neighborhood, noting
that there is no resident sticker parking in the point neighborhood. Another audience member stated
that police do not enforce those parking restrictions for those neighborhoods that do have resident
sticker parking. They were also concerned with Shetland Property employees parking on their streets
instead of parking within their site. They stated that the restaurants around the Peabody street area
need to work together with residents to alleviate some of the issues with parking in their residential
streets. Ms. Pretorius asked if the signage for resident sticker parking was CDBG eligible and if the
signs could be bilingual. Ms. Guy stated that the signage is an eligible expense but that the approval
of installation is a City Council and Police issue. Ms. Duncan stated that she would bring these
concerns to the Mayor’s office.
Mary Margaret Moore from Independent Living Center spoke about the dynamics of making sure all
of the city gets access to affordable housing along with safety improvements that improve the quality
of life such as lighting and curbcuts. She complimented the City of Salem for exceeding the 10%
affordable housing goal and still continue to purse affordable housing opportunities. She mentioned
the need for additional affordable and accessible housing and money to meet these needs. Ms. Guy
noted that while there is housing considered affordable by definition, there are many households
who still cannot afford to live in the affordable housing.
City of Salem FY 2007 Action Plan
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Ms. Guy stated that the City also tries to maximize its CDBG and HOME funding by seeking other
funding sources to fill gaps and stretch our resources. She invited Ms. Quinn to speak about two
grants the city applied for and was recently awarded.
Ms. Quinn provided a brief overview of the American Dream Downpayment Initiative (ADDI) for
homeownership and the Gap Filler Fund for lead abatement. Ms. Guy noted that the ADDI funds
will be targeted to lower income households who need additional assistance to own their first home.
A member of the audience asked how the city’s housing programs are promoted. Ms. Duncan stated
that lenders and realtors usually make their clients aware of the programs. Ms. Guy explained that
public meetings such as this one was a productive way of promoting awareness and that the
programs and now on the city’s website. She noted that the Rehabilitation Program has a waiting list.
A member of the audience suggested using CDBG funds to provide ESL training on SATV. Ms. Guy
mentioned the program VOCES provides English as a second language and citizenship classes. Mr.
Ortiz stated that Salem Harbor CDC also provides ESL classes. Mr. Peabody stated that Salem State
College students should be volunteering with these programs.
A member of the audience spoke about a community garden program currently running in Beverly
that gives youths the opportunity to grow fruits and vegetables to provide for area shelters and/or
food pantries. She stated a large parcel of land was donated by the Trustees of Reservations for this
cause and suggested CDBG funds be used to set up such program. Another member of the audience
suggested donation of land through the Cemetery Department and looking into abandoned
greenhouses in the area. The project could be undertaken through the Food Project and in
cooperation with the Salem Food Coop.
Ms. Gomez asked if the percentage of CDBG funds for housing will remain at 50% or more. Ms. Guy
stated the funding amounts have not been set, but that she hoped the goal will be a minimum of 50%.
Ms. Duncan was in agreement.
Ms. Gomez asked about funding for the Latino Festival. Ms. Guy responded that the funds
committed for the 2005 festival are still there, but she has not been provided with the required
documentation to reimburse the funds spent, despite several attempts. Ms. Gomez stated that she
will try to get the required documentation submitted.
Ms. Moore stated that Salem has programs which help a lot of its residents and she appreciated how
things were done in Salem.
With no further questions or comments the meeting was adjourned.
V. MINUTES OF 4/6/06 PUBLIC HEARING
The City of Salem held a public hearing to provide an opportunity for the public to comment on the
draft FY07 Action Plan for Community and Economic Development for the period of July 1, 2006 to
June 30, 2007. The public hearing was held in the third floor conference room at City Hall Annex, 120
Washington Street on Thursday, April 4, 2006 at 6:00 p.m. Members of the Citizens Advisory
City of Salem FY 2007 Action Plan
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Committee attended, including Jack Harris of the Commission on Disabilities, Jean Levesque, Asst.
ADA Coordinator, Nestor Grullon and City Councillor Lucy Corchado. Present representing the City
of Salem Department of Planning and Community Development were Lynn Duncan, Director; Kathy
Winn, Deputy Director; Jane Guy, Assistant Community Development Director; Julie Quinn,
Housing Coordinator; and Naomi Francisco, Administrative Assistant. Also present was Ellen
Galligan representing Catholic Charities.
Ms. Guy opened the meeting and stated that for FY07, the City of Salem has been allocated $1,158,932
in CDBG funds - approximately $123,000 less than last year and a total of 17% reduction in CDBG
over the last three years. She explained that HOME funds are estimated at $197,000 (same as last
year) and approximately $207,000 should be generated in Program Income. She noted that this year
the City applied for and received $96,000 American Dream Down Payment Initiative (ADDI) funds
which will be used to target low income first time homebuyers for Downpayment, closing cost and
rehabilitation assistance. ADDI funding can be used in conjunction with the existing First Time
Homebuyer Program funding. Ms. Guy explained that this was a bare bones budget, but noted that
56 percent has been allocated for housing programs (up from 50% in FY06).
Mr. Harris asked if the new developments will change the funding estimates. Ms. Guy replied in the
negative.
Mr. Harris asked about the formula that determines Salem’s allocation of CDBG funding. Ms. Guy
explained the formula is based upon the U. S. Census and various factors such as household income
and age of housing. HUD uses the census to determine low moderate income areas. The census is
updated every ten years.
Mr. Levesque asked if we were at 10 percent affordable housing. Ms. Guy responded that we are at
12.8 percent. Ms. Duncan stated that the state calculates the numbers every couple of years based on
the census. Ms. Guy stated that the base number stays the same, as taken from the census, and that
each year the City provides the state with an update on affordable housing created.
Mr. Levesque stated that Salem Heights at one point was going to eliminate their subsidy units. Ms.
Duncan noted that the previous mayor fought through court to keep those units affordable and that
there are some negotiations with the Fairweather apartments at this time.
Mr. Grullon expressed his concern about the fence at Pioneer Terrace, stating that there has and will
continue to be accidents at that location. His main concern was the possibility of vehicles ending up
in the water, stressing the need for the installation of a new fence. Lynn stated that this was
something the City was looking into. Ms. Guy stated that there were funds put aside for that project
and that it’s now a matter of choosing the right fence for that location.
Mr. Grullon stated that a plow had damaged the fence on Porter Street and suggested that CDBG
funds be used for the repair. He stated the fence was City owned.
Ms. Duncan stated that Ms. Quinn was able to obtain the ADDI funds through a grant application to
the North Shore HOME Consortium. Ms. Guy explained that the existing First Time Homebuyer
Program is primarily used by moderate income households and that lower income families still can’t
City of Salem FY 2007 Action Plan
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come up with enough of a Downpayment. The ADDI funds will target those with lower incomes and
work in conjunction with the First Time Homebuyer Program.
Mr. Grullon commented that what was middle class before has now fallen into low moderate income
due to today’s increased costs of living.
Mr. Levesque inquired about the Lincoln Hotel’s loan with the City. Ms. Guy stated that through
negotiations with the City a few years ago, the new owners paid a lump sum. Ms. Guy stated that
they were previously owned by Winn Management; Ms. Francisco responded that they are now
owned by Caritas Communications. Mr. Levesque commented that some of the residents of the
Lincoln Hotel had been calling City Hall with complaints. Ms. Guy suggested they be put through to
Joanne Scott in the Health Department. Mr. Levesque asked if the Lincoln Hotel payment was put
back into the program. Ms. Guy responded that it been put toward the repayment of the HUD loan.
Mr. Harris questioned whether the Lincoln Hotel had paid off the loan in full. Ms. Duncan stated that
City negotiated best deal possible and no additional funds are owed to the City for this loan.
Ellen Galligan stated she was concerned about additional future funding cuts for the CDBG program
and its affect on affordable housing and social services.
Ms. Corchado stated that she was happy with the allotments. She asked about the Salem Harbor
Garage repayment and if revenue generated could go toward the loan. Ms. Guy stated the annual
principal is approximately $35,000 plus interest and the loans goes through 2014. Ms. Guy stated that
initially the loan was to be paid from revenue generated, but the garage was not generating any. Ms.
Corchado stated that it seemed like with the new housing developments, the city is selling more
South Harbor Garage spaces to private condo owners and suggested using the money to pay off the
loan. Ms. Guy replied that any funding now coming from the sale of spaces would have to be offset
somewhere else and added that she was not sure legally how to bring funds into CDBG.
Ms. Duncan stated that the Mayor was looking for money to fund studies to help resolve the parking
issues in the City.
Mr. Grullon inquired on the status of the restaurant located at 50 Palmer (O’Keefe site). Ms. Guy
stated that Salem Harbor CDC received bids and that they came in way over budget. SHCDC is
looking into ways to bring the cost down.
Ms. Corchado asked if the bike patrols contract would be renewed. Ms. Guy stated that both the bike
patrols and the walk ride patrol would be starting shortly. Mr. Harris asked if it was sustainable. Ms.
Guy explained that social services funds have a 15 percent cap, explaining that as the funds are cut
each year, there is less money under the cap for funding public service programs. Anti-poverty
programs were defined as highest priority last year which means that programs such as youth
services have seen some reductions. Ms. Guy that we have $50,000 less in funds than the total
funding requests.
Ms. Guy stated that public comments on the draft plan can be submitted to her tonight or through
April 27, 2006 through mail, email or fax.
City of Salem FY 2007 Action Plan
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Mr. Levesque asked when these funds would be available. Ms. Guy stated that the application is due
to HUD by May 15, 2006 and funds will be available no sooner than July 1, 2006.
Ms. Duncan stated that the application approval has been scheduled with the City Council for April
13 and April 27, and she wanted to provide the community with plenty of time to submit their
comments, suggestions or concerns.
Ms. Corchado inquired about additional State funds available for the Boys & Girls Club’s gang
prevention program. Ms. Guy stated that she believed they are working with the Salem Police
Department and other agencies for available funding.
VI. SUMMARY OF COMMENTS
There were no written comments received. Verbal comments and reasons for non-acceptance (if any)
are included in the minutes of the public hearings provided above.
City of Salem FY 2007 Action Plan
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IV.C. Maps
City of Salem FY 2007 Action Plan
Appendix
IV.D. CPMP Needs Tables