CDBG FY07 CONSOLIDATED ANNUAL PERFORMANCE EVALUATION REPORTCONSOLIDATED ANNUAL PERFORMANCE
AND EVALUATION REPORT
CITY OF SALEM, MASSACHUSETTS
Fiscal Year 2007
July 1, 2006 to June 30, 2007
Kimberley Driscoll, Mayor
Lynn Goonin Duncan, AICP, DPCD Director
Jane A. Guy, Assistant Community Development Director
Department of Housing and Urban Development
Office of Community Planning
COVER PAGE/CERTIFICATION Grantee Performance Report
Community Block Grant Program
1. PROGRAM YEAR END: 6/30/07 2. GRANT NUMBER: B06MC250029
3. NAME & ADDRESS OF GRANTEE:
City of Salem
93 Washington Street
Salem, MA 01970
4. NAME & ADDRESS OF CD DIRECTOR:
Lynn Goonin Duncan, Director
Dept. of Planning & Community Development
120 Washington Street
Salem, MA 01970
5. NAME & TELEPHONE NUMBER OF PERSON
MOST FAMILIAR WITH INFORMATION IN THIS
REPORT:
Jane Guy
978/745-9595 x5685
6. NAME & TELEPHONE NUMBER OF PERSON TO
CONTACT ABOUT DISCLOSURES REQUIRED BY THE HUD
REFORM ACT OF 1989:
Jane Guy
978/745-9595 x5685
7. Have these Community Development Block Grant (CDBG) funds been used:
a. to meet the community development program objectives in the final statement for this program year? If no, explain, in a narrative
attachment, how: (1) the uses did not relate to program objectives; and (2) future activities or program objectives might change as
a result of this year’s experiences.
YES
b. exclusively to either benefit low-and-moderate (low/mod) income persons, aid in the prevention or elimination of slums or blight,
or meet community development needs having a particular urgency? If no, explain in a narrative attachment.
YES
c. such that the grantee has complied with, or will comply with, its certification to expend not less than 70% of its CDBG funds,
during the specified period, on activities which benefit low/mod income person? If no, explain in a narrative attachment.
YES
8. Were citizen comments about this report and/or the CDBG program received?
See Citizen Participation Summary Section
9. Indicate how the Grantee Performance Report was made available to the public:
See Citizen Participation Summary Section
I hereby certify that: This report contains all required items identified above; Federal assistance made available under the Community
Development Block Grant Program (CDBG) has not been utilized to reduce substantially the amount of local financial support for
community development activities below the level of such support prior to the start of the most recently completed CDBG program
year; all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate.
Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties.
(18U.S.C.1001,1010,1012;U.S.C.3729,3802)
Typed Name and Title of Authorized Official
Representative:
Kimberley Driscoll, Mayor
Signature:
_____________________________
Date:
9/27/07
_______________
i
EXECUTIVE SUMMARY
Throughout the many years of the City of Salem’s Community Development Block Grant Program
(CDBG), significant improvements have been made to the City’s physical and social environment
for its low- and moderate-income residents. The CDBG program has made a strong impact in
Salem, as seen through the numerous homes rehabilitated, neighborhood facilities and infrastructure
improved, businesses strengthened, jobs created and families served through our public service
agencies.
During Fiscal Year 2007, we expended over 1.5 million dollars to assist our low- and moderate-
income residents. The focus of the program continued to target affordable housing programs,
neighborhood improvements, public service programs, and economic development initiatives. In
addition to CDBG funds, we expended $286,489 in HOME funds.
The FY07 Consolidated Annual Performance and Evaluation Report (CAPER) provides an analysis
of the second fiscal year - July 1, 2006 through June 30, 2007 - of the City’s 5-Year Consolidated
Plan. This report is an opportunity to demonstrate our progress and report our successes over the
past fiscal year and to inform the community of how federal and local programs are making a
difference in the lives of low- and moderate-income residents throughout Salem.
Overview
Overall, we made notable progress during the past fiscal year. As this report indicates, we made a
significant advancement in meeting the goals and objectives stated in the 5-Year Consolidated Plan
and FY07 Action Plan. We also continued to meet HUD required funding and expenditure caps
and timeliness requirements.
We use various indicators to measure our success. In our housing programs, we continue to attract
first time homebuyers in neighborhoods throughout the city, improve housing conditions, help
renters move into decent, affordable housing and work toward increasing our affordable housing
stock. Our economic development programs continue to attract new businesses that create jobs in
our city and to improve existing businesses that retain jobs and enhance economic vibrancy. Public
service agencies continue to reach our low- to moderate-income residents with their valuable
programs that work toward family self-sufficiency. Finally, our neighborhood improvement projects
made visible changes to areas in the City of greatest need and helped all residents gain access to both
public and private services. Perhaps the greatest indicator of our success is illustrated in the positive
feedback we receive from those affected by our programs.
Organization of the Report
In this report, we included data to fulfill HUD requirements, as well as information that may be of
interest to our residents. The CAPER is broken up into four sections—Assessment of Goals and
Objectives, Supplementary Narratives, Funds Leveraged, and Citizen Participation Summary—in
order to provide residents with an overview of our accomplishments and allow readers to track our
progress throughout the fiscal year.
• Assessment of Goals and Objectives – Throughout this section we provide a summary of our
accomplishments over the past fiscal year, including an summary of our expenditures. It
provides an overview of each program area including an assessment of goals and how activities
met the objectives laid out in the Consolidated Plan.
ii
• Supplementary Narratives – As part of our reporting requirements for HUD, we must answer
certain questions regarding our program expenditures and activities. In this section, we provide
a supplementary narrative that provides answers to these questions.
• Funds Leveraged – Another measure of the success of our program is the funds we leverage with
our two federal grants. This section includes a table outlining the funds leveraged from the two
federally funded programs—CDBG and HOME.
• Citizen Participation Summary – In this section, we outline how we solicit public comment on our
programs and list the comments heard, if any, during the Public Comment Period, along with
our response to those comments.
The Appendix includes maps, a Financial Summary and tables and spreadsheets to help illustrate
program expenditures and progress.
Contact Information
We are always open to feedback on our progress, as well as to answer questions regarding any of our
programs mentioned in this report. If you would like more information please contact the
Department of Planning and Community Development at 978-745-9595, extension 5685.
CAPER finalization date - 9/27/07
iii
TABLE OF CONTENTS
EXECUTIVE SUMMARY
INTRODUCTION ..................................................................................................................................................1
ASSESSMENT OF GOALS AND OBJECTIVES .....................................................................................................3
Affordable Housing Programs ................................................................................................................4
Public Services .........................................................................................................................................10
Economic Development ........................................................................................................................15
Neighborhood Improvements ..............................................................................................................18
Planning & Administration ....................................................................................................................20
Other Actions ..........................................................................................................................................21
Summary/Program Evaluation/Conclusions .....................................................................................25
SUPPLEMENTARY NARRATIVES ......................................................................................................................26
FUNDS LEVERAGED.........................................................................................................................................29
CITIZEN PARTICIPATION SUMMARY ..............................................................................................................31
APPENDIX
Financial Summary
Comparison Table - Proposed Vs. Actual Accomplishments (IDIS PR03)
Progress of Consolidated Plan 5-Year Goals
IDIS Report PR23 Excerpt
Total CDBG Beneficiaries by Racial/Ethnic Category
CDBG Beneficiaries by Income Category
Maps
Cover photo: Student at North Shore Infant & Toddler Program
iv
INTRODUCTION
The Consolidated Annual Performance and Evaluation Report (CAPER) is a summary of the annual
accomplishments produced by the City of Salem and its community partners, as the goals and
objectives of the Fiscal Years 2006-2010 (FY06-10) Consolidated Plan were implemented. The
FY06-10 Consolidated Plan began on July 1, 2005. The FY07 CAPER provides an analysis of the
second fiscal year of the 5-Year Consolidated Plan — July 1, 2006 through June 30, 2007.
Program Goals
One of the overarching goals of the City of Salem is to provide a healthy, affordable and accessible
community for its residents to live and work and for its businesses to thrive. To accomplish this
goal, the City uses grants from the U.S. Department of Housing and Urban Development (HUD)—
Community Development Block Grant (CDBG) and Home Investment Partnership Program
(HOME)—which are administered through the Department of Planning and Community
Development (DPCD). The following describes each of the grants and their program objectives.
•
•
CDBG is a formula-based program designed to develop viable urban communities by
providing decent housing, a suitable living environment, and expanding economic
opportunities for persons of low- and moderate-income1.
HOME is a formula-based program for expanding and improving the supply of decent, safe
and affordable housing for low- and moderate-income persons.
These resources fund a wide range of projects designed to develop and maintain affordable housing,
improve neighborhood public facilities, provide economic opportunities, improve access to public
facilities for people with disabilities, provide critical public services, assist people who are homeless,
and prevent homelessness.
Importance of the Consolidated Plan, Annual Action Plan, and CAPER
In a streamlining effort initiated in the mid-1990s, HUD consolidated the various planning efforts
required by the National Affordable Housing Act of 1990 and the Housing and Community
Development Act of 1992. A Consolidated Plan for Housing and Community Development
(Consolidated Plan) must be prepared every five years in order to receive CDBG and HOME funds
from HUD. Prior to the start of each fiscal year within the five-year Consolidated Plan period, an
Annual Action Plan must also be prepared which lists the specific projects that will be undertaken
with CDBG and HOME funds during that year.
In addition to streamlining planning efforts, HUD also streamlined reporting requirements through
the development of the Consolidated Annual Performance and Evaluation Report (CAPER). The
CAPER must be prepared annually and must describe how CDBG and HOME program activities
address goals and objectives identified in the Consolidated Plan.
This approach to planning and reporting eliminates duplication in preparing separate applications
and reports that, in turn, require multiple planning, development and citizen participation meetings
throughout the year. More importantly, the Consolidated Plan, Annual Action Plan, and CAPER
provide a comprehensive analysis of community needs, identify goals, and lay out objectives that will
1 Low- to moderate- income individuals equals less than 50 or 80 percent of the Boston area median income respectively.
1
be undertaken to address those needs, as well as provide a mechanism for reporting
accomplishments.
The Consolidated Plan, Annual Action Plan, and the CAPER provide a means to evaluate each
community’s situation and determine the most effective ways to use funds received from HUD. The
Consolidated Plan establishes a vision for attaining a higher quality of life for low- and moderate-
income residents, the Annual Action Plan outlines specific activities that work toward accomplishing
that vision, and the CAPER measures the success in achieving that vision.
2
ASSESSMENT OF GOALS AND OBJECTIVES
During the past fiscal year, the DPCD celebrated many accomplishments and made significant
progress toward meeting the goals and objectives laid out in the 5-Year Consolidated Plan and FY07
Action Plan. The CDBG entitlement funds from HUD for the fiscal year was $1,158,932 and
program income received during the program year was $136,269.37. Our HOME funding allocation
was $183,773. The Financial Summary of our expenditures (Appendix 1) illustrates our compliance
with program expenditure caps as well as expenditures by category (also see Figure 1).
CDBG Expenditures
In FY07, we expended $1,516,746.40 in CDBG funds. Expenditures were divided into five program
areas — Affordable Housing, Neighborhood Improvements, Planning & Administration, Public
Services and Economic Development. In FY07, we met all timeliness requirements and program
expenditures were consistent with our 5-Year Consolidated Plan and FY07 Action Plan goals.
Furthermore, Public Service programs reached just below 15 percent, the maximum allowable for
such activities, and we fell well under the 20 percent Administration spending cap. In the Financial
Summary tables found in each program area, “funding available” indicates the total CDBG funds
available during the fiscal year, including FY07 and prior year carried over funds+/- any adjustments
made during the year.
HOME Expenditures
In addition to the over $1.5 million dollars spent through the CDBG program, the DPCD also spent
$286,489 in HOME funds to undertake additional affordable housing activities. When added to the
$561,367 spent in CDBG funds for affordable housing programs, the total amount spent for
housing is $847,856 — representing the highest level of funding in any of our programs. The City
of Salem is a member of the North Shore HOME Consortium and specific accomplishments of
HOME activities are reported to HUD through the Consortium by the City of Peabody. A brief
summary of our activities are reported throughout this document.
Program Accomplishments
Overall, we were on
target in meeting our
Consolidated Plan goals
and objectives. The
following sections
provide a summary of
accomplishments for
each of our program
areas and evaluate our
progress based on the
needs outlined in the 5
Year Consolidated Plan
and FY07 Action Plan.
The final section
provides an overall
evaluation of our
programs.
Fig. 1 FY07 Spending by Category, as a Percentage of Overall CDBG & HOME Expenditures
FY07 CDBG & HOME Expenditures by Category
Neighborhood
Improvements
19%
Affordable
Housing
48%
Economic
Development
8%
Public Services
11%
Planning &
Administration
14%
Note: Expenditures include staff time spent on each project area.
3
AFFORDABLE HOUSING PROGRAMS
Due to the high cost of housing in Massachusetts, we
continue to place the creation and preservation of
affordable housing as the highest priority of Salem’s
CDBG and HOME Programs. The City of Salem
has a number of services that address housing issues
including rehabilitating and maintaining current
housing stock, developing new housing
opportunities, assisting families in acquiring housing
and enabling struggling families to remain in their
homes.
In FY07, the City of Salem spent $847,856 in CDBG
and HOME funds on affordable housing projects
and programs. The project accomplishments
attained with these funds during FY07 are described in the following table.
50 Palmer Street Construction Underway
Table 1: FY07 Housing Financial Summary
Project Project Description
CDBG
Funding
Available
Status
First Time
Homebuyer
Program
Provides 0% interest deferred payment
loans to low- to moderate-income
families that wish to purchase a home
in the City of Salem.
$141,150.77
• $129,006.50 CDBG funds spent
• 20 families assisted
• 22 total units
Housing
Rehabilitation
Loan Program
Provides a combination of technical
and financial assistance to help Salem’s
low- to moderate-income homeowners
and landlords make much needed
improvements to their properties.
$483,059.70
• $263,341.65 CDBG funds spent
• 11 owners/completed projects
(19 units)
• 2 additional projects underway
(3 units)
Rental
Assistance
Programs
Through the Rental Downpayment
Assistance Program funds are used to
help low- and extremely low-income
Salem residents move into a decent,
affordable rental unit. Programs are
administered through NSCAP, HAWC
and the Salvation Army.
$50,000
HOME
Contract
• $48,854 in HOME funds spent
• 45 families assisted thru Rental
Downpayment Program
Assistance
Section 108
Loan
Payments
Final payment of principal and interest
for Lincoln Hotel loan. $58,001.76 • $58,001.76 in CDBG funds
spent
50 Palmer St.
Construction is underway for 11
homeownership and 4 rental units that
will be affordable for 20 years.
$239,000
HOME
Contract
• $237,635 in HOME funds spent
• 15 units under construction (11
HOME assisted)
4
Housing
Program
Delivery
Costs associated with providing
rehabilitation programs. $111,397.42
• $88,542.17 in CDBG funds for
program delivery
• $22,475 for inspectional services
Other Priority Housing Strategies
In addition to the projects listed above that were undertaken with CDBG and HOME program
funds, we also worked on the development of our other priority housing strategies listed in the
Consolidated Plan and the FY07 Action Plan. The following discuss the status of these projects and
the steps taken to achieve these strategies.
• Producing New Housing Units
Salem consistently provides support toward the creation of new affordable housing units
through the conversion of old, abandoned or underutilized buildings and parcels into new
residential housing units. For example, in FY06, the City committed to funding assistance on a
project at 20 Endicott St./7 High St. being undertaken by the Salem Mission. It consists of the
acquisition of two buildings that together will provide 22 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 underway and the
units should be occupied by Fall, 2008. Another example is the building at 1 Harrison which
was previously slated for a Point Neighborhood Community Center by Salem Harbor CDC.
This project did not move forward and Habitat for Humanity will soon be taking ownership of
the property to create 2 units of housing, which will be affordable for 30 years.
• 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 in 2005 for affordable housing activities. The City Council
created an Affordable Housing Trust at the end of 2006, which will work to create and preserve
affordable housing. The first meeting of the Trust took place in March, 2007. The City
continues to negotiate with developers on a case by case basis for affordable units or a
contribution to the Trust.
• Preserving Existing Affordable Units
Salem has five private subsidized rental housing developments – Salem Heights, Loring Towers,
Pequot Highlands, Princeton Crossing, and Fairweather Apartments. Each of these properties
was built with the promise to keep them affordable for a minimum of 40 years, some of which
have or will soon expire.
In February 2003, the city reached an agreement that will keep Salem Heights’ 283 apartments
rented at affordable rates for 100 years.
The City recently negotiated with the owners and tenants of Loring Towers, a HUD 236
property of which the owner had proposed to convert to a Low Income Housing Tax Credit
(LIHTC) project. In June, 2007, in order to protect the long-term affordability, as well as the
5
affordability for existing tenants, the Mayor signed a 121A Agreement, as well as entered into a
Memorandum of Understanding which will ensure that 90% of the 250 units will be reserved for
families and individuals at or below 60% AMI and that 10% will be reserved for those at or
below 30% AMI for a period of forty years.
In addition, the Preservation of Affordable Housing (POAH) purchased Fairweather
Apartments which will ensure the affordability of these 127 units.
Funds for affordable housing are also set aside each year to provide resources for the city, or a
nonprofit partner, which could be used to acquire abandoned, derelict properties and turn them
back into good homes.
• 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
undertake routine maintenance and repairs 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. The following work was completed: a
$3,000,000 heat and hot water system upgrade at Rainbow Terrace, $150,000 of roof
replacement work at 117 Congress St. and Bertram Terrace, and $24,000 post-compliance de-
leading work at our federal family developments. The Salem Housing Authority continues other
modernization work, which encompasses $85,000 upgrade work to the sprinkler system at 27
Charter Street, and $800,000 building envelope work for the roof, windows and masonry at the
Phillips House, as well as design work for $5,000,000 of 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.
• 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). Recently, the program has been enhanced by offering a $1,000
increase over the maximum loan amount for homeowners who complete First Time Homebuyer
Counseling through a qualified training program.
The FTHB Program had been highly successful in assisting moderate-income first time buyers.
However, even with the success of the City’s FTHB Program, in the past five years, less than
three percent of the households assisted 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, in FY06, the City of Salem applied for and was awarded American
6
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 6% of the purchase price ($10,000
maximum). 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 $7,500.
The City will continue its commitment that no Salem resident who is eligible for a first time
homebuyer loan will be turned away.
In addition to administering the City’s First Time Homebuyer Downpayment Assistance
Program, DPCD staff also provide assistance in coordinating other resources for down-payment
assistance, such as Massachusetts Housing Partnership (MHP) Soft Second Program and a
variety of homeownership programs offered by MassHousing, as well as supporting first time
homebuyer education workshops provided by the Salem Harbor CDC.
• Providing Assistance to Renters
This year, the city continued its commitment to assist families with Rental Downpayment
Assistance (first and last month’s rent and security deposit) to provide families with the funds
necessary to secure decent housing. The program is an important tool for helping families with
the costs of moving into an affordable apartment.
• Rehabilitation of Existing Housing
Most of the housing stock in the city was built prior to 1949. While older homes are an integral
part of Salem's history and neighborhood fabric, they also require a great deal of maintenance.
In response to this issue, the city administers a Housing Rehabilitation Loan Program that provides
low-interest loans to homeowners of both single and multi-family homes to address health and
safety issues that would otherwise be too costly to take on. Through the rehabilitation of
existing housing stock, more homeowners, as well as tenants residing in rental units, can live in
decent housing. We have expanded the program to investor-owners with low- to moderate-
income tenants, to address code compliance and health and safety issues and to discourage the
conversion of affordable rental properties into market rate condominiums.
In addition, the City offers 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.
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
7
Filler Loan Program over a 30-month grant period, ending July 31, 2008. To date, we
have completed 5 units.
• 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 13.1% 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.
Affirmatively Furthering Fair Housing
The neighborhood known as Salem Point contains the highest concentration of low income,
minority and Hispanic or Latino families (73.6% low/mod, 46.4% minority or multi-race and
50.75% Hispanic/Latino). To ensure that this population has knowledge and access to the city’s
First-Time Homebuyer and Rehabilitation programs, the city works in cooperation with the Salem
Harbor Community Development Corporation, a nonprofit organization that conducts housing and
economic development activities in the Point neighborhood. The CDC periodically conducts a
four-week, first time homebuyer educational certificate course. 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 in the process of updating the
AI. We will continue to use the current AI until updated and replaced by the HOME Consortium.
Continuum of Care
During FY07, the city continued to support local agencies that provide direct assistance to homeless
families and individuals in Salem, such as the Salem Mission and Help for Abused Women and their
Children, and to agencies that help households avoid homelessness. Agencies funded and their
8
accomplishments are provided in the table above as well as in the Public Services Section of this
report. It should be noted that 209 persons avoided homelessness through city-funded Homeless
Prevention and Transitional Housing Programs (reported in Public Services). The city also
continues to be a member of the local Continuum of Care Alliance administered by the North Shore
HOME Consortium. An overview of the activities of the Alliance can be found in the CAPER
submitted by the North Shore HOME Consortium (through the City of Peabody).
Evaluation of Goals
As we proposed, Affordable Housing Programs remain the highest priority for our federally funded
programs. This year, we exceeded our goal of assisting 18 households by assisting 20 households to
purchase their first home - working toward our five-year goal of assisting 75 households. In FY08,
with ADDI funds, we plan to further market the program in hopes of increasing the participation of
low and extremely low income households.
The Housing Rehabilitation Loan Program continues to assist families in need and is on track with
meeting the goals laid out in the Consolidated Plan. In FY07, we exceeded our goal of rehabilitating
9 housing units by upgrading 19 units (11 homeowners). An additional two projects are underway (3
units) and applications continue to come in on a regular basis. We continue to work toward our five
year goal to assist 55 housing units.
When residents sought help to address the issue of substandard rental housing, the City initially
conceptualized a Code Enforcement Program which might include the hiring of a Code
Enforcement Officer. In order to provide a carrot approach, rather than a stick approach, the initial
concept was revamped into the Landlord Housing Rehabilitation Loan Program, an expansion of
our existing Housing Rehabilitation Loan Program, to offer incentives to landlords. Funds would be
loaned to address 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 would be
restricted to affordable rents. This year the program was marketed, but did not receive any eligible
applications. Therefore, none of the proposed 7 units were rehabilitated. We have updated our
marketing materials and will continue to market the program in FY08.
The Rental Downpayment Assistance Program, administered through local social service agencies to
provide grants to low- and extremely low-income Salem residents to help pay first and last month’s
rents and security deposits to enable them to obtain decent, affordable housing, has also been a
success. The goal to assist 42 households was exceeded by 3, for a total of 45 households.
The Habitat for Humanity managed rehabilitation/historic preservation/affordable housing project
at 18 Crombie Street has been completed and this year ownership has been transferred to an
income-eligible family. The project recently received a Massachusetts Historic Commission
Preservation Award. Another affordable housing project that we are funding, Salem Harbor CDC’s
50 Palmer Street project for 11 homeownership and 4 rental units, is currently under construction.
Also under construction is Salem Mission’s Supportive Housing Project to create 22 units of
housing for chronically homeless individuals and an additional unit for a low-income resident
manager at 20 Endicott St./7 High St.
Finally, we continue to place importance on the ongoing review and update of our program policies
and guidelines. All program materials are available on the city’s website.
9
PUBLIC SERVICES
The Consolidated Plan identified the
need for various social service
programs that primarily benefit
Salem’s low- to moderate-income
population and those with special
needs (such as physically or mentally
disabled, elderly or frail elderly, youth,
non-English speaking residents,
persons living with HIV/AIDS,
substance abusers and homeless
persons and families). In FY07, our
priority goals were to continue to support a broad range of social service programs that are
consistent with the needs and goals identified in the Consolidated Plan and the FY07 Action Plan.
Salem Fire Department’s Juvenile Fire-setting Prevention class.
According to HUD regulations, we are allowed to commit up to 15 percent of our CDBG allocation
on public service activities. In FY07, as in past years, our agencies expended just under that limit. It
is our feeling that these public service activities allow direct benefit to our low- and moderate-
income residents; therefore it is important to continue funding at this level.
Public service projects funded during FY07 were selected using a Request for Proposals (RFP)
process. The Citizen Advisory Committee reviewed all applications received using criteria that
included project eligibility and documented need for services. Recommendations on funding levels
were provided by the Citizen Advisory Committee following this review.
In FY07, we were able to expend $207,100.20 on 33 public service programs, which, in turn, assisted
6,869 people, including 1,411 children/youth and 677 seniors (see Table 2 for Active Projects).
“CDBG Funding available” indicates the total CDBG funds available during the fiscal year, including
FY07 and prior year carried over funds+/- any adjustments made during the year.
Table2: FY07 Public Services Financial Summary
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted FY07 Program Impact
Bentley Elementary School
After School Program $5,000.00 $5,000.00 302 youth
11 programs including an arts festival, 2 choral
programs culminating in 2 concerts, holiday
crafts fair, 2 basketball teams, science club,
yearbook club, 2 plays and school wide
participation in haunted happenings.
Salem Community Child Care
$10,000.00 $10,000.00 12 youth
The children were provided with homework
help, enrichment activities, nutritional services,
transportation from school and activities
following a theme in all subject areas.
Salem Police Department
Bicycle and Walk/Ride Patrols $10,404.62 $10,404.62 203 persons Decrease in public drinking (29%) and drug
violations (20%) from last year to this year.
North Shore Elder Services
Project Well-Being $4,000.00 $4,000.00 - Reported in FY06 CAPER..
10
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted FY07 Program Impact
Haven From Hunger
Food Pantry $10,028.35 $10,028.35 837 persons Approximately 3,767 bags of food distributed
H.A.W.C.
Children’s Program $10,000.00 $10,000.00 88 persons
(45 families)
15 families completed the program and 1 went
to transitional living, 3 found apartments, 2
went to another shelter, 1 moved in with
family members, 1 moved in with a friend and
7 remain in the shelter. 32 families did not
complete the program and 7 were 48 hour
emergency placements only, 1 found
apartment, 6 went to another shelter, 8
returned to the batterer, 1 moved in with
friends and 9 are unknown.
Morgan Memorial Goodwill
Industries
Career Planning Program
$5,879.39 $4,817.36 8 youth
All students received internships. Following,
2 obtained jobs at Goodwill doing packaging,
labeling & light assembly, one was hired by
Wal-mart in Lynn and one was hired by
Burger King in Beverly.
Salem Access Television
Youth in Action $2,629.58 $2,629.58 13 youth
The students learn how to express themselves
using storytelling and adapting that into a
storyboard to develop role playing to produce
programs and skits which is documented into
a DVD.
Salem Mission
Outreach Street Advocate $7,950.00 $7,950.00 37 persons
Persons connected to housing(8),
detoxification (51), employment assistance (2),
health and/or mental health services (30),
other shelters (6), referred to Salem Housing
Authority (21), referred to Salem Police (4)
and referred to help for abused women and
their children (1).
Salem Mission
Food Pantry $10,560.14 $10,560.14 2,422
persons 15,316 bags of food distributed
Cerebral Palsy Association
North Shore Infant & Toddler
Preschool Program
$5,000.00 $5,000.00 51 children
Of the 51 students 29 graduated from the
toddler program during the year. 14 were
transitioned to special education programs, 2
were enrolled in head start programs, 6 were
enrolled in private pre-schools or day care and
7 were not transitioned to any program at the
time of their discharge.
Salem Harbor CDC
First Time Homebuyer
Training Program
$2,432.60 $2,432.60
36
households
(42 persons)
One 4-session certified training program was
held. Completion of the course makes the
certificate holder eligible for certain low-
income mortgage products from commercial
banks and lending institutions.
11
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted FY07 Program Impact
Independent Living Center
Accessible Housing Education Services
Program
$5,000.00 $5,000.00
253
disabled
persons
The agency provided information &
referral services, housing peer
counseling, housing skills training and
housing advocacy. They assisted 7
Salem homeless persons, 3 of which
acquired housing, along with 4 non-
homeless who acquired accessible
housing. They conducted 2 housing
forums and provided 20 applications
for Salem Housing Authority or
universal assistance.
Catholic Charities
Little Lambs Program $2,500.00 $2,500.00 207 youth
53 households provided with diapers
and wipes, information & referral and
health & education resources. 10
clients were referred for GED or
education/training programs.
Boys & Girls Club
Enhanced Program Development $5,000.00 $5,000.00 315 youth
Programs included power hour after
school homework program, torch
club, technology/computer programs,
smart moves, junior achievement, flag
football, soccer, basketball, girls
secrets and game room
(tournaments).
Boys & Girls Club
Gang Prevention $4,750.00 $4,750.00 128 youth
Programs that target youth who are at
risk of gang participation. Programs
included keystone club, power hour,
basketball team (travel), SATV,
passport to manhood, career launch,
HIV/aids awareness and community
service program..
North Shore Community Action Program
Salem Cyberspace Cyberyouth $4,300.00 $4,300.00 34 youth
After school academic and
technology enrichment program for
teens. 6 youth found jobs and the
students completed 7 new websites
and a graphic design project.
Salem Fire Department
Juvenile Firestarter Intervention Program $5,031.97 $5,031.97 8 youth
The last 12 month period of recorded
fire incidents has shown 0-2% of
known juvenile fire-setting incidents.
Salem YMCA
School Age Child Care Program $10,000.00 $10,000.00 197 youth
Activities included gym, homework
club, heat club, computer, swimming,
art club, whiffle ball, knitting, connect
four, Lego/building, basketball, kite
making & air hockey. Curriculum
subjects included voting, idiatrod,
static electricity, compass, cardinal
directions, yearbook, grandparents,
mosaics, prisms, diversity, birds & bird
feeders and plants.
12
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted FY07 Program Impact
North Shore Community Health
Outreach & Enrollment Program $5,000.00 $5,000.00 486
persons
Dental appointments totaled 127 Salem
residents and medical appointments
totaled 222 Salem residents
Salem Family Investment Center
Workplace Literacy Program $5,000.00 $5,000.00 21 persons
7 students got new jobs or increased
hours at existing jobs. 1 student received
tutoring for and registered to take a state
certification test as an aesthetician, 1
student received assistance with,
registered for and passed her U.S.
citizenship test. 1 student received
tutoring for and completed a competency
test in basic computer skills.
Salem Family Investment Center
After-School Evening Works Program $3,000.00 $3,000.00 4 youth
1 completed summer courses at Salem
High School, got diploma & began full
time college. 1 participated in website
design entrepreneur program & was
summer job peer leader. 1 completed 2
night courses & improved English to
qualify for summer school. 1 registered
at N.S. Career Ctr. for summer job.
Salvation Army
Prescription Program $3,395.29 $2,523.75 24
persons 61 prescriptions filled.
V.O.C.E.S.
Hispanic Education Program $5,448.19 $5,237.02 145
persons
During the year, 7 students who
participated in classes obtained their
GED and 130 have become U.S. citizens
(may include prior year classes).
Salem Y.M.C.A.
Teen Initiative $4,200.00 $4,200.00 67 youth Tutoring, fitness classes, basketball, art
class and the Salem rotary teen center.
Salem Council on Aging
Transportation Program $19,482.00 $19,248.21 677
seniors
Rides provided were to the council on
aging (1509), daycare (294), medical
(1037), shopping (721), hairdresser (143),
recreation (16) and other (200).
Catholic Charities
Homeless Prevention Program $9,964.75 $9964.75 64 persons 26 families avoided homelessness
NSCAP
Homeless Prevention Program $11,181.52 $11,181.52 59 persons 27 families avoided homelessness
Salvation Army
Transitional Housing $7,396.10 $2034.54 6 persons
(4 families)
Following transitional housing, 2 families
were able to move into permanent
housing .
Salvation Army
Homeless Prevention $12,648.00 $12,532.00 78 persons 30 families avoided homelessness
H.A.W.C.
Homeless Prevention Program $13,786.35 $4675.00 8 persons 3 families avoided homelessness
Save Our Children $1,576.60 $398.79 65 youth Summer food program at Mary Jane Lee
and Rainbow Terrace Playgrounds
Wellspring House
MediClerk Program $2,700.00 $2,700.00 8 persons
4 of 6 graduates from Salem received jobs
in the medical field, one obtained an
administrative job in another field and
one is still in job development.
TOTAL PERSONS ASSISTED 6,869 persons,
including 1,411 children/youth & 677 seniors
13
Evaluation of Goals
As stated before, Public Service activities allow us to provide direct services to our low- and
moderate-income residents. This year, over $20,000 less funds (approximately 9% less than last
year) were available for public service activities due to the decrease in our overall funding allocation
and decrease in program income. Nevertheless, for Year 1 and Year 2 of the current Consolidated
Plan, we have exceeded our Consolidated Plan goal of assisting 16,800 persons (8,400 per year) by
assisting a total of 18,708 persons, as well as exceeding our FY07 Action Plan goal of assisting 30
agencies by providing 31 new grants. This reflects the strong commitment among our staff and
public service providers to supply needed services and stretch dollars. We are fortunate to have an
excellent network of public service providers that utilize our funds to best meet community needs,
which is why we spent just short of our funding cap of 15 percent.
VOCES student obtains U.S. Citizenship.
14
ECONOMIC DEVELOPMENT
The City of Salem is committed to continuing efforts to
stimulate our local economy and, as a result, has seen a
surge of redevelopment in the past few years. This new
development has lead to a revitalization of our business
districts and to increases in the number of businesses
providing needed services to our residents.
Nevertheless, there is much work to be done. According
to the 2000 Census, Salem has an average of 46.7% low-
and moderate-income residents. 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 bring new employers and new
jobs to the city, while retaining jobs by helping existing
businesses improve their commercial infrastructure or
expand their operations. The increased development is
bringing vitality to the downtown, providing goods and
services locally, and improving and stabilizing
neighborhood business districts in the process.
Improved vitality in our neighborhood and downtown
commercial districts also has the residual affect of
improving public safety.
Mayor Kimberley Driscoll and Gulu Gulu owner
Steve Feldman cut the grand opening ribbon.
The City of Salem is dedicated to economic development through efforts to revitalize the downtown
and neighborhood commercial districts, improve exterior building facades, and assist local business
owners. Our economic development funds are used to fund the Business Loan Program, Storefront
Improvement Program and Technical Assistance Programs.
Business Loan Program
The Business Loan Program is designed to encourage all types of entrepreneurs to locate in the City,
create jobs, and revitalize the area through rehabilitation to their buildings. There are three types of
loans:
• Microenterprise Assistance – provides loans to low- to moderate-income entrepreneurs to assist
with their microenterprise business (5 or fewer full-time employees, including the owner)
• Commercial Revitalization – provides loans to business owners in the downtown and eligible
neighborhood districts to assist with the exterior rehabilitation of their building and/or to
correct code violations.
• Special Economic Development – provides loans to business owners throughout the city in exchange
for jobs creation for low- and moderate-income people.
Storefront Improvement Program
The Storefront Improvement Program is designed to encourage private investment and
reinvestment by new and existing property/business owners in the eligible neighborhood and
15
downtown commercial districts. The program provides design assistance and offers a one-to-one
financial match for façade improvements of up to $5,000 per storefront.
Technical Assistance Programs
Often small business owners need some degree of technical assistance to help them with managing
or growing their business. The needs of local entrepreneurs range from business planning, drawing
up financial statements, or navigating the city permitting process. The city works in collaboration
with several agencies to improve economic opportunity in Salem by providing technical assistance to
businesses.
Table 3: FY07 Economic Development Financial Summary
Program Description
CDBG
Funding
Available
Status
Technical Assistance
Programs
Salem Harbor CDC’s Advancing Community
Business Program provides technical and financial
assistance to low- to moderate-income
microenterprise business owners, focusing on
minority and women owned businesses.
$25,000.00
• $25,000 CDBG
spent
• 27 businesses
assisted
Storefront
Improvement Program
Provides design assistance and/or matching
funding up to $5,000 to business owners wishing
to improve the exterior façade of their business.
$13,264.51
• $18,359.76 CDBG
spent
• 13 storefronts
improved
Business Loan Program
Provides three types of loans that fund
commercial rehabilitation, job creation or
retention and/or micro-enterprise assistance to
make our commercial areas vibrant.
$176,350.00
• $52,393.25 CDBG
spent
• 1 new businesses
assisted
Downtown Main
Streets Program
Provides commercial district revitalization through
organization, promotion, economic restructuring
and design.
$45,000.00 See Evaluation of
Goals below.
Economic
Development Program
Delivery
Costs associated with providing Economic
Development programs $48,916.75 • $48,916.75 CDBG
spent
Evaluation of Goals
In FY07, we provided one new business loan totaling $50,955 and had 3 active loans from the
previous fiscal year (see Table 4). The active loans created a total of 7 jobs with 2 filled by low- to
moderate-income individuals. We anticipate seeing even greater jobs creation as those projects that
are underway report on their progress in the next fiscal year.
The FY07 Action Plan projected assisting 8 businesses and creating 12 new jobs for low- to
moderate-income people. During the program period, we exceeded the goals of businesses assisted
by assisting 1 new business through the Business Loan Program and 13 businesses through the
Storefront Improvement Program. Due to a staffing issue, monitoring for jobs creation was not
undertaken for the two current Special Economic Development projects prior to the end of the
16
program period. Therefore, as of the close of FY07, we cannot verify if 10 low/mod jobs have been
created. Monitoring is expected to be undertaken in early FY08.
The Technical Assistance Programs also continues to succeed in meeting goals and assisting
microenterprise businesses throughout the city. In FY07, the city continued to fund Salem Harbor
CDC’s Advancing Community Business Program (ACB). Through the ACB Program, the CDC
assisted 27 new or existing businesses with one-on-one technical assistance (exceeding its projected
goal of 25) which resulted in 10 business plans being completed, 7 partial business plans being
completed, 7 businesses referred for financing, 7 new businesses opening and 4 businesses
expanding.
The Salem Main Streets Initiative was inactive and not funded in FY07, but will be funded in FY08.
The Main Street Board has reorganized in coordination with the Chamber of Commerce and a new
Main Street Manager has been hired. The Salem Redevelopment Authority expended $50,000 for a
Downtown Retail Market Plan, which was recently completed and will help establish priorities for
the Main Street Program going forward. The City is committed to implementation of this plan and
the Main Streets Program.
In total, $144,669.76 was spent during the program period for economic development activities.
Table 4: Active Economic Development Loans in FY07
Type of Loan Project Amount of
Loan
Required
LMI Jobs
Creation
Total Jobs Created
Microenterprise
Assistance The Cat ‘n The Fiddle $18,000* N/A -
Gulu Gulu Café $50,945 6 Underway
Market Place Quilts $25,000* 2 Underway Special Economic
Development
River Wharf Realty
Trust/Bioengineering Group $135,000* 4 7 Total
2 LMI
Totals 4 $210,945 12 7 Total Jobs Created
2 LMI Jobs
Note: LMI is low- and moderate-income *Expended in a prior fiscal year
17
NEIGHBORHOOD IMPROVEMENTS
The City of Salem is committed to making the
infrastructure and public facility improvements we
all depend on to make our city the livable
community that it is. By continually investing in
neighborhoods, Salem aspires to be the best place it
can be for people to live and work.
Due to the size and scope of these types of
activities, some require multi-year funding, as well
as a few years to plan, permit and complete the
project. To that end, a number of our
Neighborhood Improvement Projects are still in the
planning or permitting stages. The following table
outlines the current neighborhood improvement
projects and their status (Ongoing, Underway or Completed) at the close of FY07. Neighborhood
Improvement Projects can only take place in those areas eligible for CDBG funding (see Appendix
for map); therefore all the projects listed are designated for these target neighborhoods.
Boys Scouts from Troop 83 constructing handicapped accessible
pedestrian bridges at Pioneer Village. Salem News photo.
Table 5: FY07 Neighborhood Improvement Financial Summary
Activity CDBG Funds
Available
CDBG Funds
Spent Status
Tree Planting Program $15,496.40 $15,496.40 Completed
Neighborhood Street Improvements
(Sidewalks, Curbcuts and ADA
signage)
$167,235.75 $167,235.75 Completed
Congress/Derby Intersection
Improvements $18,522.78 $18,522.78 Completed
Congress/Peabody/Ward Intersection
Improvement $73,791.15 $1,252.74 Underway
Pioneer Village Accessibility
Improvements (pedestrian bridges
being built by Boy Scouts)
$9,874.00 $5,683.75 Underway
Loring Avenue Firehouse
Improvements $44,982.77 $10,562.77 Underway
Peabody Street Park $49,032.09 $4,081.32 Underway
South Harbor Garage site
environmental $9,793.68 $318.68 Underway
Witch House Accessibility
Improvements $26.380.40 $1,380.40 Underway
Park & Playground Improvements $3,450.00 $2,450.00 MaryJane Lee basketball
hoop purchased
Peabody Street Wall Replacement $28,695.14 $28,695.14 Completed
Section 108 Loan Payments – South
Harbor Garage $54,719.00 $54,719.00 Ongoing
City Hall Elevator $189,412.10 $2,822.29 Underway
18
Activity CDBG Funds
Available
CDBG Funds
Spent Status
South River Harbor Walk $179,118.89 $27,116.29 Underway
Old Town Hall Improvements $897.63 $347.63 Ongoing
Guardrail replacement at Pioneer
Terrace $6,475.00 $6,475.00 Completed
Downtown Redevelopment Project
(Garage banners, installation of bike
racks, signage)
$78,499.47 Underway
Essex Street Pedestrian Mall
Improvements (i.e. benches, trash
receptacles)
$8,917.85 $331.00 Ongoing
St. Joseph’s Community Life Center $30,154.03 $154.03
Project no longer going
forward. Funding to be
reprogrammed.
Harbor and Lafayette Streets
Pedestrian Improvements $153,049.00 $16.48
To be redesigned as part of
the St. Joseph’s complex
redevelopment.
Lafayette Park Redesign $99,088.68 $873.63
To be redesigned as part of
the St. Joseph’s complex
redevelopment.
High Street Playground Improvements $10,000.00 $269.23 Underway
Willows Accessible Bathrooms Project $20,000 Additional funding being
sought
Evaluation of Goals
During the program period, we continued to work on important neighborhood projects, and spent a
total of $348,804.31, including program delivery costs, to meet the goals in the FY07 Action Plan.
109 trees were planted, exceeding the Action Plan goal of 40, and well on our way to meeting the
Consolidated Plan goal of 275 trees. In addition, 12 street/sidewalk improvements were
undertaken, working toward the Consolidated Plan goal of 20. The Consolidated Plan goals for
improvements to one public facility was met by completing the Peabody Street wall replacement and
the guardrail replacement at Pioneer Terrace. Removal of architectural barriers, also a Consolidated
Plan goal, was undertaken at Pioneer Village and the Loring Avenue Firestation improvements are
underway.
In November, 2006, the DPCD hired a CDBG planner whose primary responsibility is to undertake
Neighborhood Improvement activities. In FY08, we intend to continue work on those projects that
are underway or ongoing.
19
PLANNING & ADMINISTRATION
In the Consolidated Plan, our priority goals are to
provide for the administrative costs associated with
the management of the Salem Community
Development Block Grant program and to develop
the planning resources and documents necessary to
undertake program activities.
During FY07, we completed a Salem Marketplace
Design Peer Review and a Feasibility Study for reuse
of the U.S. Coast Guard Administration Building on
Winter Island. In addition, we received another
Massachusetts Historical Commission Survey &
Planning Grant to undertake a Neighborhood
Architectural Conservation District study.
Former U.S. Coast Guard Administration Building
on Winter Island
In FY07, we spent a total of $254,805.05 in Planning and Administration for planning studies
completed in the fiscal year and administration expenses necessary to carry out our programs. As
stated previously, we were able to remain under the administrative spending cap of 20 percent.
Table 7: FY07 Planning & Administration Financial Summary
Activity CDBG Funds
Available
CDBG Funds
Spent
Salem Marketplace Design Peer Review $15,945.34 $15,945.34
Winter Island Administration Building Reuse Study $20,000.00 $20,000.00
Studies, plans & analyses $16,813.44 $313.44
General Administration - Salary $159,511.22 $159,511.22
General Administration - Benefits $46,755.55 $47,135.80
General Administration - Non-salary $11,899.25 $11,899.25
20
OTHER ACTIONS
Barriers to Affordable Housing
The 5-Year Consolidated Plan outlines several barriers to housing affordability in Salem: a shortage
of land, the lack of regulatory tools to require or encourage affordable housing in new
developments, the lack of resources to preserve existing affordable units, an economy imbalanced by
lower-wage jobs, and local government’s dependence on the property tax to finance City services.
Like other communities, Salem is not in control of all of these barriers and as a result, its ability to
solve them is constrained by financial resources and legal requirements. However, through its
efforts to preserve and increase the supply of affordable housing through its Housing Rehabilitation
Loan Program, First Time Homebuyer and ADDI Programs and Affordable Development
Programs the city is able to address some of these barriers.
Lead-Based Paint Hazard Reduction
In cooperation with the State of Massachusetts and our local municipal departments, the City of
Salem 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 notification of the sale or rental of 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, Gap-Filler Program or Get the Lead Out Program. Through these programs, the city
provides loan funds for qualified applicants for lead testing, hazard reduction and abatement
activities. Lead-based paint hazard control measures undertaken are consistent with the federal Title
X requirements and State lead based paint regulations.
Finally, all participants in the First-Time Homebuyer Program are given a copy of the EPA brochure
Protecting your Family from Lead in Your Home.
Anti-Poverty Strategy
The 5-Year Consolidated Plan includes the City of Salem’s Anti-Poverty Strategy which describes
programs and policies the City is supporting in its efforts to reduce the number of households living
below the poverty level. Some public service agency representatives state that Salem residents in
poverty stay in poverty because they lack adequate skills for better employment opportunities. As
21
result, they work multiple jobs to pay for housing, utilities, transportation expenses, and childcare.
Providing adequate job training and educational opportunities will enable them to enter the
workforce at a more competitive level.
Salem uses CDBG and other funds to pursue an anti-poverty strategy that is carried out by the City
and a variety of social service subrecipients. The City’s anti-poverty strategy is comprehensive and it
consists of four components: education, job training, affordable housing and social services. Each
of these components are described at length in the recently completed 5-Year Consolidated Plan.
Managing the Process and Institutional Structure
The DPCD administers the City of Salem’s Community Development Program as well as the
formula funding received by the North Shore HOME Consortium for which the City of Peabody is
the lead agency. Salem’s programs are managed and monitored by the Assistant Community
Development Director under the direction of the Director of Planning and Community
Development.
Salem’s housing programs are administered by the DPCD Housing Coordinator under the direction
of the Director of Planning and Community Development and Assistant Community Development
Director. In addition, certain housing activities are administered by local non-profit agencies,
CHDO’s and/or CDC’s. Private lenders provide financing that leverages funds provided through
many of the city’s housing activities.
Each year, the City of Salem issues a Request for Proposals to nonprofit organizations that offer
social service or economic development programs. CDBG funds are then awarded to organizations
that demonstrate programmatic needs and the capacity to administer the proposed program. The
city’s Assistant Community Development Director coordinates the management of the public
service subcontracts and the Economic Development Planner coordinates the management of the
economic development subcontracts.
In November, 2006, the DPCD hired a CDBG planner whose primary responsibility is to undertake
Neighborhood Improvement activities. In FY08, we intend to continue work on those projects that
are underway or ongoing.
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.
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. In addition, all of our housing and economic development program
applications, as well as the Consolidated Plan, Action Plan and CAPER are available on line.
22
Coordination with Other Organizations
Salem Housing Authority: Although, the city does not currently use CDBG funds to assist the
Salem Housing Authority (SHA), the DPCD coordinates with the SHA 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 City of Salem must certify
that the documents are consistent.
The Mayor appoints four of the five 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 SHA serves over 900 participants. The Authority receives over $9 million in federal funding for
its Section 8 Housing Choice Voucher Program and its Federal Public Housing Program, as well as
earning state subsidies. The SHA continues its mission of preserving and maintaining its stock of
decent safe and sanitary public housing for the residents of Salem.
The SHA has an established Resident Advisory Board to encourage public and subsidy residents to
become more involved in management.
Other Organizations: In addition to the SHA, the City of Salem works cooperatively with private
housing providers and private and governmental health, mental health, and service agencies and
other interested parties to implement its 5-Year 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 DPCD is responsible for the organization and administration of this effort. The
strength in the delivery system of nonprofit services is in the networking, collaboration and
coordination among the agencies.
The city also works directly 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 and ADDI funded programs. Salem
also works with local CHDO’s and CDC's to carry out prioritized activities.
The City of Salem will continue to coordinate and communicate with other municipal departments,
local and regional agencies, and public and private housing organizations. The DPCD will maintain
23
responsibility for coordinating the Salem H.O.P.E. effort and will communicate regularly with
subrecipients of federal funds who are subcontracted to deliver much-needed social services. We
will continue to work with the Salem Housing Authority (SHA), nonprofit organizations, and
housing developers to produce affordable housing in the City. The strength of these relationships is
beneficial in streamlining housing development and leveraging additional funds for projects.
Monitoring
An overarching goal with all activities undertaken with CDBG and HOME funds is to ensure that
they meet our program objectives. DPCD monitors all projects to ensure compliance with
applicable Federal, State and local regulations. As part of ongoing monitoring, public service
subrecipients submit monthly reports that include demographic information on clients served and
details on programmatic accomplishments. In addition, public service subrecipients are monitored
on-site each year (exceptions are noted in the Monitoring Plan, which is located in 5-Year
Consolidated Plan). Payments to agencies are made on a reimbursement basis following receipt of all
requisite documentation 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, job creation, and other programmatic requirements.
24
SUMMARY/PROGRAM EVALUATION/CONCLUSIONS
Overall, we made significant progress toward meeting the goals of our 5-year Consolidated Plan and
FY07 Action Plan. We also continued to meet HUD required funding and expenditure caps and
timeliness requirements. Despite a decrease in our CDBG entitlement, the following is a summary
of major activities accomplished in FY07:
• 20 families were assisted to purchase their first home in Salem;
• 19 housing units were renovated, with an additional 3 units underway;
• 7 units were deleaded with MA Get the Lead Out funding;
• 2 units were assisted with MA Gap Filler Funding;
• 367 units of affordable housing preserved at Loring Towers and Fairweather Apartments;
• 45 households received assistance with first/last month’s rent and/or security deposits;
• 33 social service programs assisted 6,869 persons, including 1,411 youth and 677 seniors;
• 13 commercial storefronts improved;
• 1 new business provided with economic development loan;
• 27 new or potential businesses provided with technical assistance, resulting in 7 new
businesses;
• 95 ADA acceptable streets signs purchased and installed;
• Guard rail replaced at Pioneer Terrace;
• 109 trees planted;
• 8’ high masonry wall at Peabody Street replaced with ornamental fencing;
• New basketball hoop installed at Mary Jane Lee playground;
• Salem Marketplace Design Peer Review completed;
• Winter Island U.S. Coast Guard Administration Building Reuse Study Completed;
• 18 Crombie Street transferred from Habitat for Humanity to an income-eligible first time
homebuyer and the property received a Massachusetts Historical Commission Preservation
Award;
• Affordable Housing Trust created;
• Lincoln Hotel’s HUD Section 108 Loan paid in full;
• Electrical improvements undertaken at Loring Avenue firehouse; and,
• Street/sidewalk improvements completed at Salem St., Summer St., Boston St., Congress St.,
Derby St., Lafayette Place, West St., Savoy Rd., Pingree St., Leavitt St., Hersey St., Laurel St.,
Broadway and Hazel St.
Furthermore, dozens of additional activities are underway and continue to make progress.
In summary, we are proud of the accomplishments made in FY07. The City made progress in all of
our program areas toward meeting the goals and objectives laid out in the 5-Year Consolidated Plan
and FY07 Action Plan. We continue to work toward completing older and multi-year projects. We
encourage feedback from our citizens in order to improve our efforts to provide decent, safe and
sanitary housing, improved community facilities and infrastructure, needed human services and
expanded economic opportunities, that all work toward revitalizing our neighborhoods and
improving our living environment.
25
SUPPLEMENTARY NARRATIVES
In this section, as part of our reporting requirements for HUD, we provide a supplementary
narrative that answers specific questions regarding our program expenditures and activities.
Use of CDBG Funds
In FY07, CDBG expenditures fully complied with the goals and objectives outlined in the FY07
Action Plan and 5-Year Consolidated Plan. More detailed information on the use of these funds can
be found in the Assessment of Five Year Goals and Objectives section of this report.
Changes to Program Objectives
During the past fiscal year, we made no changes to the program objectives laid out in the FY07
Action Plan and 5-Year Consolidated Plan. As typical each year, during the program period it is
necessary to adjust funds committed to specific activities. Usually, this is done within the same
general category (i.e. $40,000 was taken from Housing: Affordable Housing Programs and put into
the Housing: First Time Homebuyer Program). Other times a project will come in under budget
and its remaining funds are reprogrammed, or, an activity will no longer be necessary or feasible and
the funds will be reprogrammed. A specific example of a funding adjustment is the City Hall
elevator, which had been removed from the list of activities due to lack of funding in FY06 and then
reinstated in FY07 due to the need having become greater. Funds were made available from other
activities and remaining unprogrammed funds in order to help budget for the elevator. However,
the overall program objectives did not change.
Geographic Distribution and Location of Investments
Some programs and activities undertaken are available on a citywide basis to income eligible
households. Others are targeted to particular neighborhoods with concentrations of low- and
moderate-income households or to programs that benefit specific populations such as senior
citizens, disabled persons and minorities.
When prioritizing activities, the City pays special attention to those low- and moderate-income
neighborhoods where the greatest needs have been identified and whose public facilities and
infrastructure are in the worst condition. In accordance with CDBG 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, with the exception of handicap
access improvements which can be undertaken city-wide.
However, recognizing that needs are not solely located in distressed neighborhoods, we offer
programs that may be accessed by people living outside these areas. For example, the Housing
Rehabilitation Loan Program, First Time Homebuyer Downpayment Assistance Program, and the
Small Business Loan Program are offered citywide to allow any low to moderate-income individual
or household to take advantage of their availability. A map indication of geographic distribution is
located in the Appendix.
Compliance with Planned Actions
In FY07, the City of Salem pursued all resources indicated in its FY07 Action Plan.
26
Compliance with National Objectives
All CDBG funds budgeted and spent were exclusively focused on furthering the three National
Objectives of the CDBG program. The City also fully complied with overall benefit certification.
Relocation
In FY07, no CDBG funds were spent on projects that required the permanent displacement and/or
relocation of people, businesses, or organizations from occupied property. The program did
provide temporary location assistance through the Housing Rehabilitation Loan Program, per the
DPCD’s current Relocation Policy.
Economic Development Activities
Economic development activities are discussed in the Assessment of Five-Year Goals and
Objectives, Economic Development section of this report.
Limited Clientele Activities
In FY07, the City of Salem funded several activities that served limited clienteles. For example,
funds were expended on 33 public service contracts that primarily served low- and moderate-income
persons. Through the use of family-size/proof of income documentation, it was determined that
more than 51 percent of the people served by these projects met applicable criteria for low- or
moderate-income status. Those activities that were not Limited Clientele Activities were undertaken
in low- to moderate-income designated areas or in one of the designated Urban Renewal Areas.
Program Income
The Financial Summary section of this report documents total program income for the Salem
CDBG Program in FY07. The total program income was $136,269.37.
Rehabilitation Activities
The City of Salem sought to preserve affordable housing in the city by assisting low- and moderate-
income homeowners in rehabilitating their homes through the Housing Rehabilitation Loan
Program. The activities carried out during FY07 are described in the Assessment of Goals and
Objectives, Affordable Housing section of this report.
HUD Neighborhood Revitalization Strategies
Salem had no HUD approved Neighborhood Revitalization Strategies in place during FY07.
Performance Measurement
The DPCD uses several strategies for performance measurement. In FY07, we reported on the new
performance measures in IDIS instituted by HUD. In addition, we continue to implement
performance measures in the following program areas:
Public Services - Public service contracts include performance measurement indicators and
subcontracted social service agencies are required to report on performance indicators either
monthly or at the end of the program year. The FY07 CAPER outlines the effectiveness of those
measurements as provided in the Public Services Section in Table 2. Internally, a spreadsheet is
maintained which tracks the receipt of monthly reports and the status of on-site monitorings.
Housing Programs - Housing rehabilitation program staff track each project in a formal system that
details project status and loan details. In addition, the staff maintain a comprehensive written
27
manual detailing program procedures and policies. There is also a master loan spreadsheet that
tracks all loan details for the First Time Homebuyer Program and the Housing Rehabilitation
Program, including period of affordability, discharge dates, rental restrictions and monitorings.
Economic Development – The Economic Development Planner maintains a spreadsheet of all
economic development loans which tracks all loan details and information regarding job creation.
Additionally, the city ensures long-term compliance with program requirements, including minority
business outreach and comprehensive planning requirements, in several ways. In particular, DPCD
has a Monitoring Plan in place, that allows the city to track whether long-term goals are being met.
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.
HOME Program
As stated previously, the City of Salem is a member of the North Shore HOME Consortium. The
City of Peabody administers the Consortium and maintains all documentation regarding Salem’s
participation.
During FY07, the City of Salem spent $286,489 in HOME funds. Funds were used to help fund the
Rental Downpayment Assistance Programs administered by the North Shore Community Action
Program, Help for Abused Women and their Children and the Salvation Army and toward the 50
Palmer Street project. The accomplishments of these projects can be found in the reports submitted
by the City of Peabody on behalf of the Consortium.
In June, 2007, the Consortium voted to adopt the federal Energy Star Standards. The
implementation of this new policy for the use of HOME funds is to begin on October 1st. All new
HOME-assisted units will be required to be certified as Energy Star compliant whenever either new
construction is involved or where the rehabilitation of an existing structure involves the gutting of
the structure to the bare walls.
28
FUNDS LEVERAGED
In order to maximize the benefits achieved by the Salem Community Development Block Grant
Program and in order to make projects feasible, CDBG and HOME funds often must be combined
with other funding sources. The following chart summarizes the amount of federal dollars spent
during FY07 and the funds leveraged through these expenditures.
Table 8: FY07 Funds Leveraged
Program CDBG
Expenditures
HOME
Expenditures
Funds from Other
Sources
Housing Programs $561,367 $286,489 $8,734,904
Public Services $207,100 -$3,379,588
Economic Development $144,670 -$94,565
Neighborhood Improvements $348,804 -$800,000
Planning & Administration $254,805 -$298,638
TOTAL FY06 $1,516,746 $286,489 $13,307,695
TOTAL FUNDS LEVERAGED PER HUD DOLLAR IN FY07: $7.37
Listed below is a summary of the funds leveraged and reported in the table above:
Housing
• For the First Time Homebuyer Program, homebuyers provide matching funds as well as
obtained financing from a primary lender, which amounted to a total leveraged of $4,226,198.
• For 50 Palmer Street affordable housing, along with using $321,995 in the City’s HOME funds,
Salem Harbor CDC is leveraging 4,378,057 in N. S. HOME Consortium, Affordable Housing
Trust Fund and Housing Stabilization Funds, as well as proceeds projected on the sale of the
units.
• The rehabilitation program leveraged $900 in private financing, $25,750 in CTI’s Home
Modification for the Disabled Program, $20,843 in Gap Filler funds and $83,156.22 in Get The
Lead Out funds.
Public Services:
• Most of the public service agencies funded use CDBG funds as a portion of their overall activity
budgets. Based on the project budgets submitted in the initial funding request proposals, the
estimated amount leveraged is $3,379,588.40.
Economic Development:
• Advancing Community Business leveraged $65,831 in state/local funds to run the program and
$5,841 in private funding.
29
• This year’s Business Loan Program leveraged at least $5,000 in private funds.
• The Storefront Improvement Program leveraged $17,893.16 in private dollars.
Neighborhood Improvements:
• CDBG funds for the South River Harbor Park project are used as a match toward $800,000 in
design and construction grant funds from the State Seaport Advisory Council.
• Although not funds leveraged, CDBG funds leveraged labor from local Boy Scouts to build
handicapped accessible pedestrian bridges at Pioneer Village.
Planning & Administration:
• For the U.S. Coast Guard Administration Building Reuse Study, CDBG funds leveraged $15,000
from the Massachusetts Historical Commission’s Survey & Planning Grant Fund Program.
• Planning and administration funds leveraged $235,244.56 in City funds and $48,393.23 in State
Seaport Advisory Council funds for salaries, advertising, office supplies, photography, dues and
subscriptions, reproductions and in-state travel.
Note: Leveraged funds for multi-year projects may be repeated within more than one year’s
CAPERs. Leveraged funds are only included for projects of which CDBG funds were expended
during the fiscal year
30
CITIZEN PARTICIPATION SUMMARY
The goals and purpose of the Citizen Participation Plan is to encourage residents, agencies, and
other interested parties to participate in the development of our 5-Year Consolidated Plan and
Annual Action Plans and to comment on our accomplishments. The strength of our programs
comes from the high number of volunteers that inform our decisions.
The Citizen Participation Plan included in the 5-Year Consolidated Plan is the framework we used
to solicit public comment as well as provide guidance on our response to citizens’ comments on our
programs throughout the year.
Public Comment Period
Copies of the FY07 CAPER were made available to the public throughout the 15-day comment
period and every effort was made to solicit citizens’ comments including posting the availability of
the report in the Salem Evening News, the City Clerk’s Office, Public Library, Salem Housing
Authority, the City Hall Annex and on the City’s website. Copies were available for review at the
DPCD, Salem Public Library and Salem Housing Authority and on the City’s website (a copy of
which was available for download). There were no public comments received.
31
APPENDIX
Financial Summary
Tables & Spreadsheets (These are not included in the digital PDF. Please contact the DPCD for copies.)
Comparison Table - Proposed Vs. Actual Accomplishments (IDIS PR03)
Progress of Consolidated Plan 5-Year Goals
IDIS Report PR23 Excerpt
Total CDBG Beneficiaries by Racial/Ethnic Category
CDBG Beneficiaries by Income Category
Maps
CITY OF SALEM – FINANCIAL SUMMARY
FY07 Consolidated Annual Performance and Evaluation Report
1 Summary of CDBG Resources
2 FY06 End of Year LOC Balance $ 1,597,196.17
3 FY07 CDBG Entitlement $ 1,158,932.00
4 Program Income, FY07 $ 136,269.37*
5 Total CDBG funds available for use in FY07 $ 2,892,397.34
6 Summary of CDBG Expenditures
7 Affordable Housing $ 503,365.32
8 Public Services $ 207,100.20
9 Neighborhood Improvements $ 294,085.31
10 Economic Development $ 144,669.76
11 Program Administration $ 254,805.05
12 Section 108 Repayment (separated in CAPER narratives into housing & neighborhood
improvements) $ 112,720.76
13 Total Expenditures $ 1,516,746.40
14 Year-End CDBG Resources
15 Total CDBG funds available for use in FY07 $ 2,892,397.34
16 Total Expenditures in FY07 $ 1,516,746.40
17 Unexpended Balance (CDBG Budget) $ 1,375,651.14
18 *LOC = Balance of Funds in City’s Letter of Credit with U.S. Treasury
19 Low/Mod Credit
20 Total FY07 CDBG Expenditures $ 1,516,746.40
21 Total for Program Administration $ 254,805.05
22 Total for Section 108 Repayments $ 112,720.76
23 Total subject to Low/Mod Benefit Calculation $ 1,149,220.59
24 L/M Credit for multi-unit housing $ 207,742.65
25 L/M Credit for other activities $ 869,743.81
26 Percent of benefit to low/mod persons 93.76%
27 Public Services Cap Calculation
28 Net obligations for FY06 Public Services Act. $ 192,316.57
29 FY07 Entitlement + FY06 Program Income $ 1,353,515.29
30 Percent obligated for FY07 PS Activities 14.21%
FINANCIAL SUMMARY
31 Planning and Program Administration Cap Calculation
32 FY 07 Entitlement + FY 07 Program Income $ 1,295,201.37
33 Net Obligations for Planning/Admin. Activities $ 217,268.29
34 Percent of funds expended 16.77%
35 HOME Summary
36 HOME Project Expenditures $ 186,303.00
37 Salem HOME Administration $ 9,189.00
38 Total HOME Expenditures $ 195,492.00
*Note: Program income of $457.05 entered into IDIS in FY07 was reported in the FY06 CAPER. Program
income of $286.68 entered into IDIS in FY08 is being reported in this CAPER (FY07). Therefore the net
adjustment to compute total program income is -$170.37.
MAPS
The following maps follow this page on the hard copy of this report.
• Low to Moderate Income Areas with Urban Renewal (SRA) boundaries and Ward
boundaries. For a digital version of the map go to
http://salem.com/Pages/SalemMA_WebDocs/lma.pdf.
• Geographic Distribution of Entitlement Funds Expended FY07. For a digital version of the
map go to http://salem.com/Pages/salemma_dpcd/studiesreports/cdbgexpendmap.pdf