CDBG FY08 ACTION PLANCITY OF SALEM
FY08
ONE-YEAR ACTION PLAN
MAY 10, 2007
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 2008 ....................................................................................................................I-3
I.D. OBJECTIVES AND OUTCOMES ...............................................................................................................................I-4
I.E. EVALUATION OF PAST PERFORMANCE ...............................................................................................................I-6
II. PROGRAM DESCRIPTIONS OF THE PROPOSED ACTIVITIES ..........................................................II-1
II.A. AFFORDABLE HOUSING ..........................................................................................................................II-2
II.A-1. Specific Housing Objectives ........................................................................................................................II-2
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-7
II.A-5. Fiscal Year 2008 Affordable Housing Activities .........................................................................................II-9
II.B. ECONOMIC DEVELOPMENT.....................................................................................................................II-13
II.B-1. Strategies for Economic Development .......................................................................................................II-13
II.B-2. Fiscal Year 2008 Economic Development Activities .................................................................................II-16
II.C. NEIGHBORHOOD IMPROVEMENT .....................................................................................................II-17
II.C-1. Strategies for Infrastructure and Public Facilities ....................................................................................II-17
II.C-2. Fiscal Year 2008 Neighborhood Improvement Activities ..........................................................................II-18
II.D. SOCIAL SERVICES (INCLUDING HOMELESS AND NON-HOMELESS SPECIAL NEEDS).......II-19
II.D-1. Strategies for Social Service Needs ............................................................................................................II-20
II.D-2. Fiscal Year 2008 Social Services Activities ...............................................................................................II-21
II.E. PLANNING & ADMINISTRATION ...........................................................................................................II-22
II.E-1. Fiscal Year 2008 Planning & Administration Activities ..........................................................................II-22
II.F. FISCAL YEAR 2007 ACTION PLAN REVISIONS AND/OR ONGOING PROJECTS ..........................II-23
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 - FY08 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-5
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 2008 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 U.S. 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 2007-2008 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 2008
(FY08)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 FY08 and to provide an opportunity for public comment.
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.
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1 This Action Plan covers activities for the period from July 1, 2007 to June 30, 2008, which is referred to in this
document as Fiscal Year 2008 or FY08.
City of Salem FY 2008 Action Plan
Executive Summary
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 FY08 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.
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.B-1. Summary of Comments
A public hearing regarding the Draft Action Plan was held on April 5, 2007. Most of the discussion
included general questions from the public concerning regulations and project status. Specific
comments on the plan included:
• A request to add a handicapped tot lot on Salem Common - The eligibility of this project was
reviewed and it was determined that this project would not be an eligible activity. It is not
located in an income eligible area. The estimated service area did not have a minimum of 51%
income eligible persons.
• A request to implement recommendations from the North River Canal Corridor Master Plan -
While some recommendations would be CDBG-eligible activities, at this time, the activities
proposed in the FY08 Action Plan are of greater priority to low to moderate income residents.
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• A recommendation to require First Time Home Buyer Training for all participants and to no longer
reward those taking the training with bonus loan funds - The training bonus was instituted as a
pilot during the current fiscal year to encourage potential buyers to undertake the training and to
submit their First Time Homebuyer Loan applications early in the process. The City will evaluate
City of Salem FY 2008 Action Plan
Executive Summary
the success of the pilot over the next year and may consider requiring the training as a condition
of participation in the loan program.
A Sub-Committee meeting of the City Council was held on April 25, 2007. Comments from City one
Councillor included:
• A request to resurface Palmer Cove basketball court and to replace the fencing at MaryJane Lee
Playground - This request was reviewed with the Director of Park, Recreation and Community
Services to asses need. Based on the Director’s discussion with the City Councillor, it was
determined that the court and fence were not in bad enough condition to address this year.
The Draft Action Plan was made available for public comment from March 28, 2007 through April 26,
2007.
I.C. Resources for Fiscal Year 2008
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.
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
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 program. The city will not use HOME funds to refinance any existing debt
secured by multifamily housing developments.
Last year, 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. 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. The application and loan
materials are currently being
developed so that these funds can be
made available to eligible applicants.
These funds are not included in the
FY08 Action Plan, but are included in
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FY08 AVAILABLE FUNDS
$1,161,440
$192,616
$150,000
CDBG HOME PROGRAM INCOME
Estimated Total Funds $1,504,056
City of Salem FY 2008 Action Plan
Executive Summary
the FY07 Action Plan.
Along with HUD funds, 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 FY08 includes $1,161,440 in CDBG
entitlement funds ($2,508 more than the previous year) plus an estimated $192,626 in HOME funds
(estimate of 4% more than last year) and an estimated $150,000 in program income ($57,000 less than
last year’s estimate). In addition to these resources, many activities leverage funding from other
sources to maximize the impact of the federal dollars the city receives. Sources may include, but are
not be limited to, Habitat For Humanity, homebuyer matching funds and mortgages, Get The Lead
Out funds, private donations, lender financing, State Seaport Advisory Council, Massachusetts
Historical Commission Low-Income Housing Tax Credits and other State or Federal programs.
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.
I.D. Objectives and Outcomes
Objectives
The chart below lists the activities proposed for FY08 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.
Outcomes
Included in the chart is one of three outcomes that best reflects what is being sought to achieve by
undertaking the activity. The three outcomes are:
I-4
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
City of Salem FY 2008 Action Plan
Executive Summary
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.
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.
Performance Indicators
Performance indicators provided in the chart are the measurements to be used to determine program
impact. The chart also includes the estimated goal of housing units, businesses or persons.
I-5
Category Source Objective Outcome # (Units,
persons, etc.)
Performance Indicators
Preservation of Existing Housing
Occupied by elderly
Brought to HQS
Brought lead safe
Made accessible
Brought to HQS
Brought lead safe
Affordable
Of affordable: Occupied by Elderly
Of affordable: Number of Years Affordability
Homeownership Opportunities
First Time Homebuyer
Receiving Housing Counseling
Receiving Downpayment Assistance/Closing Costs
Affordable Housing Development Programs
Years of affordability
Energy Star
Affordable
Of Affordable: Occupied by Elderly
Economic Development
Businesses assisted: New
Businesses assisted: Existing
Of Existing: Expansions
Of Existing: Relocations
DUNS number
Neighborhood Improvements
With new access to a facility or infrastructure benefit
With improved access to a facility or infrastructure benefit
Social Service Activities
New access to service
Improved access to service
Community Support Services (Rental
Housing Assistance)
Decent Housing Sustainability Households that received emergency financial assistance to
prevent homelessness
Not-Applicable to Salem's Performance Measurement
South Harbor Garage Section 108 Loan
Repayment
CDBG
General Program Administration CDBG/
HOME
Rental Assistance Programs HOME To be reported in IDIS by North Shore HOME Consortium
Affordable Housing Programs HOME To be reported in IDIS by North Shore HOME Consortium
1 Pub. Fac.; 1
person
1 Pub. Fac.;
7839 persons
With new access to a facility or infrastructure benefit
With improved access to a facility or infrastructure benefit
Decent Housing Affordability
South River Harbor Walk
City Hall Elevator
CDBG
CDBG
Suitable Living Environment
Suitable Living Environment
Availability/
Accessibility
Availability/
Accessibility
Decent Housing Affordability
9 Housing
Units
Landlord Rehabilitation Loan Program
(Rental Units Rehabilitated)
CDGB Decent Housing Affordability
1 Housing
Units
Housing Rehabilitation Loan Program
(Owner-Occupied)
CDGB
18
Households
(CDBG)
Community Support Services Suitable Living Environment Availability/
Accessibility
Affordable Housing Development CDBG/
HOME
Decent Housing Sustainability
First Time Homebuyer Programs CDBG/
HOME
2 Housing
Units
Suitable Living Environment Sustainability
20
Businesses
3 Pub. Fac.; 3
Persons
Suitable Living Environment Sustainability
Creating Economic Opportunities Availability/
Accessibility
With improved access to a facility or infrastructure benefit
Business Technical Assistance CDBG
9000 Persons
CDBG
40 PersonsTree Planting Program CDBG
Neighborhood Street & Sidewalk
Improvements
CDBG
City of Salem FY 2008 Action Plan
Executive Summary
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 FY07 CAPER, for the current fiscal year, will be available
by September 1, 2007. The most recent CAPER, for FY06, evaluates the first fiscal year - July 1, 2005
through June 30, 2006 - of the current 5-Year Consolidated Plan. 76% of funds spent in FY06 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 FY06 spending by category, as a percentage of overall
CDBG and HOME expenditures.
FY06 CDBG & HOME Expenditures by Category
Neighborhood
Improvements
23%
Affordable
Housing
44%
Economic
Development
6%
Public Services
12%
Planning &
Administration
15%
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City of Salem FY 2008 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
II. PROGRAM DESCRIPTIONS OF PROPOSED ACTIVITIES
AFFORDABLE HOUSING, ECONOMIC DEVELOPMENT,
NEIGHBORHOOD IMPROVEMENT, PLANNING & ADMINISTRATION AND
SUPPORT FOR SOCIAL SERVICES
In the Five-Year Consolidated Plan, the Salem residents 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 FY08 spending by
category, as a percentage of estimated CDBG and HOME funds. It is estimated that at least 75% of
the FY08 funding will be used for activities that benefit persons of low- and moderate-income.
FY08 PROPOSED EXPENDITURES (CDBG & HOME)
Neighborhood
Improvements
17%
Affordable
Housing
51%
Economic
Development
5%
Public Services
10%
Planning &
Administration
17%
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 FY08.
The programs listed in the following sections are a combination of those managed by the city and by
community organizations.
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 FY08, 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.
Obstacles and issues relating to addressing underserved needs, if any, are discussed within each
strategy topic. Barriers to affordable housing are discussed in Section II.A-3
II-1
City of Salem FY 2008 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 for single-family homes and condominiums in Salem was $202,250 and
$165,500 respectively, yet by 2006, these figures had skyrocketed to $319,500 and $266,000. Prices
seem to be leveling off in 2007, currently $293,000 for a single-family home and $245,500 for a condo,
however, prices remain at an elevated height. High 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 be affordable, less than 14% of the communities have actually met the challenge. Salem is
one of 48 communities to reach the 10% goal. In February 2007, MA Dept. of Housing & Community
Development calculated Salem’s Chapter 40B subsidized housing inventory at 13.1%, while the state
average was just 9.5%. 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-2
Salem also 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 of Salem FY 2008 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
city also provides funding for homelessness prevention programs through 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 Constortium Communities
Chapter 40B Subsidized Housing Inventory - February 28, 2007
Source: Mass Dept. of Housing & Community Development
0%2%4%6%8%10%12%14%
Boxford
W est Newbury
North Reading
Lynnfield
Essex
Hamilton
Swampscott
Rockport
Marblehead
Middleton
Rowley
Manchester
Topsfield
North Andover
Merrimac
Amesbury
Gloucester
Ipswich
W ilmington
Salisbury
Newburyport
Andover
W enham
Haverhill
Methuen
Peabody
Danvers
Beverly
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
City of Salem FY 2008 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
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.
The City also committed funding to develop 45 affordable units at the former St. Joseph’s
Church site, 15 homeowner and 30 rental units. The project is slated to begin construction in
December, 2007.
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 for the
construction of 15 affordable homeownership units. Construction is underway and is
scheduled for completion in January, 2008. SHCDC plans to begin marketing the units this
spring.
Furthermore, funds for affordable housing are often set aside each year to provide resources
for the city, or a nonprofit partner, to take advantage of opportunities that arise to acquire
available abandoned, derelict properties and turn them back into decent, affordable homes.
• An Affordable Housing Fund
In 2003, the City entered into a Memorandum of Agreement with a housing developer 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. 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 with the owners and tenants of Loring Towers, a HUD 236
property of which the owner has proposed to convert to a Tax Credit project. The goal is to
ensure the extension of long-term affordability of all 250 units for at least 40 more years. In
addition to the long-term affordability, the City is working to ensure the short-term
affordability protection for the existing tenants.
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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 undertake routine maintenance and repairs of these public housing units, many of
City of Salem FY 2008 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
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.
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• 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 $1000
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, last year the City of Salem
applied for and was 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.
City of Salem FY 2008 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
• 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.
• 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. 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.
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. 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. To date
we have completed 3 units and have two additional units in the pipeline.
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• 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.
City of Salem FY 2008 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
II.A-2. Needs of Public Housing
The Salem Housing Authority has not been identified as a “troubled” public housing agency by
HUD. As stated previously, the SHA continues to implement its modernization programs through
separate funding sources.
The City of Salem consulted with the Salem Housing Authority on public housing needs as part of
the consolidated planning process, including coordinating one of the public participation meetings
with the Resident Advisory Board (RAB) which was held at one of the larger public housing
buildings. The needs identified and comments provided were considered with others expressed by
residents, municipal departments and local agencies. In addition to requiring a tenant to sit on the
SHA board, the RAB encourages public and subsidy residents to become more involved in
management.
All public notices and copies of the Consolidate Plan, annual Action Plans and annual CAPERs are
provided to the Salem Housing Authority to encourage public housing residents’ involvement.
II.A-3. Barriers to Affordable Housing
The Five Year Consolidated Plan outlines several barriers to housing affordability in Salem: a
shortage of land, the lack of regulatory tools to require or encourage affordable housing in new
developments, the lack of resources to preserve existing affordable units, an economy imbalanced by
lower-wage jobs, and local government’s dependence on the property tax to finance City services.
Like other communities, Salem is not in control of all of these barriers and as a result, its ability to
solve them is constrained by financial resources and legal requirements. However, through its efforts
to preserve and increase the supply of affordable housing through its Housing Rehabilitation Loan
Program, First Time Homebuyer Program and Affordable Development Programs the city is able to
address some of these barriers.
Although the City of Salem is above the threshold of 10% affordable housing, the city recently
entertained and approved a friendly Chapter 40B Comprehensive Permit for the redevelopment of
the former St. Joseph's church site. The existing zoning was a barrier to affordable housing. This
approval effectively waived certain zoning requirements, including density, height, and use, paving
the way for the upcoming development of new affordable owner and rental housing in the Point
Neighborhood. In addition, the City Council, with the support of the DPCD has approved the waiver
of permitting fees for at least one affordable housing development project.
II.A-4. Homelessness and Homelessness Prevention
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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
City of Salem FY 2008 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
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. 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.
• Haven From Hunger – provides meals, a food pantry and various job-training programs.
• 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 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.
II-8
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
City of Salem FY 2008 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
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 and produces a digital 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.
Habitat For Humanity hopes to turn this vacant
former factory into 2 units of affordable housing.
Salem Harbor CDC’s 15 units of affordable
housing are currently under construction.
II.A-5. Fiscal Year 2008 Affordable Housing Activities
The City of Salem undertakes many strategies for families to live in decent, affordable housing. The
affordable housing activities and homelessness programs that will receive FY08 federal funding are
described on the following pages. 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.
II-9
City of Salem FY 2008 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 Rehabbed
Proposed Funding: $310,338
• Landlord Rehabilitation Program3
Requested by residents to address the issue of substandard rental housing, funds will be set aside
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 will be
restricted to affordable rents2.
Projected Accomplishments: 1 Housing Unit Rehabbed
Proposed Funding: $30,000
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.
Projected Accomplishments: 18 Households Assisted
Proposed Funding: $153,099
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: 42 households Assisted
Proposed Funding: $50,000
2 Rents are established by HUD annually.
II-10
3 A “Landlord” is defined as a male or female investor-owner that owns and leases apartments to others.
City of Salem FY 2008 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
II-11
• Community Support Services (housing services, homeless and/or homeless prevention
programs)
This program provides grants to nonprofit agencies for social service programs that assist 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 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.
Agencies submitting proposals for FY08 funding include:
Catholic Charities
HAWC
NSCAP
Salvation Army
Salvation Army
Independent Living Center
Homeless Prevention Program
Homeless Prevention Program
Homeless Prevention Program
Homeless Prevention Program
Transition Housing Program
Housing Educational Services
Salem Harbor CDC First Time Homebuyer Training
Projected Accomplishments: Grants for up to 7 social service agency programs.
Proposed Funding: $50,500
II.A-5.4. Affordable Housing Development Programs
• Affordable Housing Development
The city currently allocates funding for affordable housing development which may include
acquisition, capital improvements and/or new affordable housing unit development. The City is
also investigating development of a receivership program. Funds are allocated as potential
affordable housing development opportunities arise and are selected based on their
appropriateness and feasibility.
Acquisition 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 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 and
under construction are the development of 15 units of affordable housing at 50 Palmer Street
by Salem Harbor CDC and 22 units of supportive housing to chronically homeless
individuals by the Salem Mission.
Receivership would enable 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
would be appointed to rehabilitate and manage the properties.
City of Salem FY 2008 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Affordable Housing
While the allocation of funding to specific projects is still to be determined for FY08, funding
requests were received from the Habitat for Humanity and from Health & Education Services
(HES). Habitat for Humanity is seeking funding assistance to redevelop a vacant commercial
building in the Point Neighborhood into two affordable units for home ownership to first time
homebuyers. HES is seeking funds to upgrade a water supply line for the fire suppression
system in this 9 unit property that houses up to 17 persons with chronic mental illness. The city
will also provide funding, as part of year 2 of a 2 year commitment, for the former St. Joseph’s
complex which is being redeveloped into 67 units (30 rental and 37 owner) with 45 to be
affordable.
Projected Accomplishments: Creation of a minimum of 2 affordable housing units
Proposed Funding: $182,995
II-12
City of Salem FY 2008 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 and of 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:
II-13
• 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 2008 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 Program Director assists with new business location or
existing business relocation, walks new businesses through the permitting process, and
coordinates available loan programs. The city 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. The City is also finalizing
an updated version of the “Doing Business in Salem Guide”.
• 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
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 manufacturing businesses
moving or expanding in Salem. The effort to attract new employers requires an ongoing
campaign to market and promote Salem as a great place to live and work.
City of Salem FY 2008 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Economic Development
• 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 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.
II-15
The Salem Chamber of Commerce will oversee
the Salem Main Streets Downtown Program
City of Salem FY 2008 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Economic Development
II.B-2. Fiscal Year 2008 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 FY08. Program delivery costs for
loan administration may be included in the total economic development expenditures.
II-16
• 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 storefront.
Proposed Funding: $0 - This program will use carried over funds from FY07
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
FY08, 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
organizations 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. Technical
assistance is also provided to new and existing businesses by the City’s Economic Development
Programs Director, who administers the City’s financial assistance programs and provides
administration to the Salem Redevelopment Authority, which oversees the Urban Renewal Areas.
Projected Accomplishments: 20 microenterprise owners or potential owners assisted
Proposed Funding: $71,000
Location: Citywide with a preference for businesses located in income eligible neighborhoods
and urban renewal areas
City of Salem FY 2008 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 are projects that can be the life of a neighborhood. In FY08, the city will continue
the investment in various neighborhoods.
II.C-1. Strategies for Infrastructure and Public Facilities
• Public Infrastructure and Traffic Improvements
In FY08, 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.
• Neighborhood Planning Initiatives
The city is committed to conducting
neighborhood planning studies and
initiatives. 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. 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. Another
improvement is the design of a park on
Peabody Street.
• 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 South River
Harbor Walk is currently in design.
Many of these projects are to be funded
with FY07 or prior year funds.
II-17
Location of proposed South River Harbor Walk
City of Salem FY 2008 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Neighborhood Improvement
II.C-2. Fiscal Year 2008 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: Included will be sidewalk improvements at 50 Palmer Street..
Other locations of street and sidewalk improvements is to be determined.
Proposed Funding: $134,000
• 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
• City Hall Elevator
Along with carried over funds from FY07, FY08 funds will be dedicated toward the installation of
an elevator at City Hall for handicapped access to the second floor offices and Council Chambers.
Projected Accomplishments: Improvement to one public facility
Proposed Funding: $37,543
• South River Harbor Walk
In addition to carried over funds from FY07, additional funds will be dedicated in FY08 toward
the construction of a harbor walk along the South River, beginning at Derby street and
continuing along the river parallel to Peabody Street. The goal of the walkway, as envisioned in
the city’s Harbor Plan, is to provide access to the waterfront from the Downtown and the Point
Neighborhood. The design and construction of the walkway are funded through the Department
of Conservation and Recreation, which requires a local match. This year’s funding continues a
multi-year investment toward this match.
Projected Accomplishments: Construction of a harbor walk along the South River
Proposed Funding: $21,000
• 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 2008 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, the City of Salem established the following funding priorities:
High Priority - Max. $10,000 per program 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 - Max. $5,000 per program for non-municipal agencies
o Youth activities & recreation programs; and
o Health/wellness programs.
II-19
All other program proposals may be considered Low Priority (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 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.
City of Salem FY 2008 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Social Services
II.D-1. Strategies for Social Service Needs
In Fiscal Year 2008, 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 digital quarterly Salem H.O.P.E.
newsletter.
II-20
Students of the Wellspring House MediClerk Program
in computer class.
City of Salem FY 2008 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Social Services
II.D-2. Fiscal Year 2008 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.
II-21
• 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.
Agencies submitting proposals for FY08 funding include:
AGENCY PROGRAM
Bentley School After School Enrichment
Boys & Girls Club Enhanced Program Development
Boys & Girls Club Gang Prevention through Targeted Outreach
Catholic Charities Little Lambs Program
Cerebral Palsy Assoc. Infant & Toddler Program
Family Self-Sufficiency Center, Inc. Citizenship Literacy Program
Family Self-Sufficiency Center, Inc. Work Readiness Program
Haven From Hunger Food Pantry Program
HAWC Children's Program
Morgan Memorial Goodwill Indust. Career Planning Program
N.S. Comm. Health Outreach & Enrollment Project
NSCAP Salem Cyberspace
Plummer Home for Boys Job Coach Program
Salem Community Child Care Kindergarten After School Child Care
Salem Council on Aging Senior transportation program
Salem Fire Dept. Juvenile Fire Setter Program
Salem Harbor CDC Community English
Salem Mission Food Pantry Program
Salem Mission Downtown Outreach Program
Salem Police Dept. Point Neighborhood Bicycle Patrols
Salem YMCA School Age Child Care
Salem YMCA Teen Initiative
Salvation Army Prescription Program
SATV Youth in Action
Save Our Children Children's Food Pantry
St. Joseph's Food Pantry Employment Program
St. Joseph's Food Pantry Food Pantry Program
VOCES Hispanic Education Program
Wellspring House MediClerk job training program
Proposed Accomplishments: Grants for up to 29 social service agency programs to assist an
estimated 9000 persons.
Proposed Funding: $146,216
City of Salem FY 2008 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 2008, the City of Salem plans to use CDBG funds to
provide the tools needed to manage the CDBG program.
II.E-1. Fiscal Year 2008 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. The city is awaiting word on the award of a Survey & Planning
Grant to conduct a study relating to Neighborhood Conservation Districts which, if awarded,
will require matching funds. General administration costs are capped at 20% of the available
CDBG funds.
Proposed Funding: $261,000 (salary, benefits, non-salary expenses, studies)
II-22
Preliminary Historic Buildings Map to assist with study of potential Neighborhood Conservation Districts.
City of Salem FY 2008 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Action Plan Revisions and/or Ongoing Projects
II.F. FISCAL YEAR 2007 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 FY07 Action Plan:
Project Description
City Hall Elevator
The existing wheel chair lift has been repeatedly breaking
down and is nearing the end of its life. Therefore, we are
reinstating this project to install an elevator for handicap
access to the second floor.
South Harbor Garage
Environmental Site Assessment
Completion of a Phase I environmental site assessment and
either a Tier Classification or Response Action Outcome
Statement.
The chart below provides a list of activities that will be continued into FY08:
II-23
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, such as the purchase of new benches.
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/improvement of fencing around a neighborhood
playground.
Housing Programs
Programs include First Time Homebuyers Downpayment
Assistance, Housing Rehabilitation Loan Program, Landlord
Rehabilitation Loan Program and Affordable Housing
Programs.
Lafayette Park Improvements Park improvements to be coordinated with the
redevelopment of the St. Joseph’s Church complex.
Loring Avenue Firehouse
Improvements
Installation of a handicapped restroom to a public facility
that also serves as a neighborhood polling facility.
Old Town Hall Improvements to this historic structure in the Urban
Renewal Area.
City of Salem FY 2008 Action Plan
Program Descriptions of the Proposed Housing & Community Development Activities
Action Plan Revisions and/or Ongoing Projects
Project Description
Peabody Street Neighborhood
Park Design “gateway” park on City-owned land on Peabody St.
Pioneer Village Access
Improvements Accessibility improvements
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 signage.
Willows Accessible Bathrooms
Project
Improvements to the bathrooms at the Willows Park to make
them handicapped accessible.
Winter Island Studies Reuse study of administration building and structural
assessment
Witch House Handicapped
Accessibility Barrier removal activities to historic public building.
II-24
City of Salem FY 2008 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 FY08 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 or household 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 2008 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 $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 Salem Housing Authority continues its mission of
preserving and maintaining its stock of decent safe and sanitary public housing for the residents of
Salem.
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 2008 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 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 - FY08 Action Plan
The public participation component for the FY08 Action Plan began with a citywide public hearing
held on February 1, 2007. 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 28, 2007 with a second public hearing to be held on April 5, 2007. An Overview of Citizen
Participation is provided in the Appendix, including minutes of the public meeting.
III.F. Affirmatively Furthering Fair Housing
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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
organization that conducts housing and economic development activities in the Point neighborhood.
City of Salem FY 2008 Action Plan
HUD Required Narratives
The CDC periodically conducts a four-session, 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
The DPCD monitors all projects to ensure compliance with applicable Federal, State and local
regulations and program requirements. As part of ongoing monitoring, public service subrecipients
submit monthly reports that include income, race and ethnic information on clients served and
programmatic accomplishments. In addition, public service subrecipients are monitored on-site each
year (exceptions are noted in the Monitoring Plan, which is located in Five-Year Consolidated Plan).
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. All First Time Homebuyer Program properties and Housing
Rehabilitation Loan Program properties receive on-site inspections. Rehabilitation projects must
meet HQS and current housing codes. All tenant based rental assistance provided with HOME funds
require an inspection with a HQS report or a Certificate of Fitness (as a result of inspection by the
Health Department) or a Certificate of Occupancy (as a result of inspection by the Building
Inspector).
The DPCD also annually reviews its performance in meeting its goals and objectives set for in the
Consolidated Plan during the development of the annual CAPER.
Payments to agencies are made on a reimbursement basis to ensure compliance with expenditure
requirements. The Assistant Community Development Director encourages timely submission of
reimbursement requests by subrecipients and reviews timeliness status weekly until the annual 1.5
draw ratio is met.
III-4
City of Salem FY 2008 Action Plan
HUD Required Narratives
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 FY06
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.
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. Rehabilitation
projects with rental affordability restrictions are monitored annually for the duration of the
affordability period.
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.
III-5
City of Salem FY 2008 Action Plan
HUD Required Narratives
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.
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.
III-6
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
City of Salem FY 2008 Action Plan
HUD Required Narratives
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.
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
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. 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.
III-7
City of Salem FY 2008 Action Plan
HUD Required Narratives
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 assists 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.
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 very-low, and low- and
moderate-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
III-8
4 North Shore Workforce Investment Board, “Mission Statement,” <http://www.northshorewib.com/>.
City of Salem FY 2008 Action Plan
HUD Required Narratives
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.
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 homebuyer education, ESOL, housing
acquisition/rehabilitation and economic development. It also serves as an agent of community
organizing and neighborhood 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.
III-9
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
City of Salem FY 2008 Action Plan
HUD Required Narratives
Family Self Sufficiency Program which helps households overcome various obstacles to self-
sufficiency.
III-10
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 serving Salem residents, 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 digital quarterly Salem H.O.P.E. newsletter.
City of Salem FY 2008 Action Plan
Appendix
IV. APPENDIX
Appendix A: Application: Standard Form 424 & Certifications
Appendix B: Overview of Citizens Participation,
Appendix C: Maps
Appendix D: CPMP Needs Tables
Appendix E: North Shore HOME Consortium Tables
City of Salem FY 2008 Action Plan
Appendix
IV.A. Application: Standard Form 424 & Certifications
City of Salem FY 2008 Action Plan
Appendix
IV.B. Overview of Citizens Participation
I. DEVELOPMENT OF DRAFT PLAN
To develop the FY08 Action Plan, the City of Salem undertook the following tasks:
A. Request for Public Services Funding Proposals
On January 23, 2007, the City of Salem published a legal ad in the Salem Evening News requesting
proposals for public service, housing and economic development programs. Requests for Proposals
were also mailed to all agencies who received CDBG funding during the previous year. Proposals
were received on February 20, 2007. A list of agencies submitting proposals is included in the FY08
Action Plan.
B. Initial Public Hearing
On January 18, 2007, 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. 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 1, 2007. 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 FY08 Action Plan availability, the date/time of
the public hearing and to obtain broad public comment on the draft plan. Information regarding
plan availability and the public hearing was provided to those attending the Salem H.O.P.E. meeting
of March 8, 2007. An English/Spanish Community Bulletin Board request was provided to Salem
Access Television. An English/Spanish legal ad was published in the Salem News on March 22, 2007
indicating the availability of plans and providing notice of the 30 day comment period & scheduled
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 mailed to several social service agencies and neighborhood
associations. The notices were also emailed to the Salem H.O.P.E. distribution list. A press release
was sent to the Salem News and the Salem Gazette on March 26, 2007.
The public comment period commenced on March 28, 2007 and ended on April 26, 2007. 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. The plan was
made available for download on www.salem.com.
City of Salem FY 2008 Action Plan
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A public hearing was held on April 5, 2007 at City Hall Annex. Copies of the Draft Plan were
provided to all attendees. A Spanish translator was present. Minutes of the meeting are included
herein.
Copies of the Draft were provided to the City Council. The Director and Assistant Community
Development Director met with the City Council Subcommittee on Administration and Finance on
April 25, 2007. The City Council voted to approve the submission of the Application for Federal
Assistance at its April 26, 2007 meeting.
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 is also invited to review and comment on the draft Consolidated and
Action Plans.
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 2/1/07 PUBLIC HEARING
The City of Salem held a public hearing regarding the development of the FY08 Action Plan for
Community and Economic Development for the period of July 1, 2007 to June 30, 2008. The public
hearing was held in the third floor conference room at the City Hall Annex, 120 Washington Street,
on Thursday, February 1, 2007 at 6:00pm. Present representing the City of Salem were Lynn Duncan,
Director of the Department of Planning and Community Development (DPCD), Jane Guy, Assistant
Community Development Director, Julie Quinn, Housing Coordinator, Kirsten Kinzer, CDBG
Planner 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 2008 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. She stated that HUD has not announced what the FY08 Community Development
Block Grant (CDBG) allocation will be, so for the time being level funding is assumed, which is
$1,158,000 for CDBG and $183,177 for HOME funds. 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 funds can be used for projects or programs that the City manages or projects
and programs that the city helps fund for management by other agencies. Ms. Guy explained that for
a project to be eligible for funding, it must be considered eligible by HUD definitions and must
primarily assist moderate, low or very low income households or neighborhoods, improve the urban
renewal area, or create or retain jobs for low to moderate income persons.
Ms. Guy Examples of programs we have funded range from:
• Business loan program to create or retain jobs
• Studies to preserve historic buildings
• Housing rehabilitation loan program
• First time homebuyer loan program
• Handicap access improvements
• Public facility improvements such as at the Loring Avenue firehouse
• Infrastructure improvements such as tree planting and street resurfacing
• Grants to social service agencies for various programs such as funds to prevent eviction, food
pantries, prescriptions, youth activities, senior transportation, child care, point neighborhood
bike patrols and job training
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 announced a change to the current Action Plan, noting that it is actually a change back from
the change announced last year. A few years ago the elevator installation project for handicapped
access at City Hall was designed and all permitting was completed, but the bids came in over budget.
As a result, last year, we canceled the project. However, unfortunately, the current wheel chair lift is
on its last legs and we now need to go through with this activity. Because of the flexibility of HUD
funding programs, our Action Plan can be amended during the year to reflect unexpected changes in
our needs, priorities or goals, so we are reinstating this project. There are no other activity changes
to the current plan and all other planned projects will proceed or are already underway.
Ms. Guy asked the audience to consider what are Salem’s priority needs and what activities are
suggested to meet those needs and opened the public comment portion of the hearing.
City of Salem FY 2008 Action Plan
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Mary Margaret Moore from the Independent Living Center of the North Shore & Cape Ann, Inc.,
questioned how the decrease in census population will impact funds. Ms. Guy stated that the 2000
census resulting in the addition of new entitlement communities, such as Peabody. If more funds are
not appropriated, but more cities are included in the formula for funding, it is possible that Salem
will loose funds. She explained there has been a decrease in home funds since 2003 and that the
department did not yet know the level of funding it will receive. She added that in the 1980’s, the
entire City was considered income-eligible and changed in 1990 to include just some neighborhoods,
and continues to shift with each census.
Jean Levesque, ADA Coordinator from the Commission on Disabilities, questioned how far the
designs for the City Hall elevator have gone. Ms. Guy stated that the design itself would not change
and that the City was in the process of hiring a consultant to review the design, check code changes
and add an electrical specification.
Councilor Sosnowski suggested that the City save money by having the architectural work done in-
house.
Jim Treadwell commented on the Mainstreets program being incorporated with the Salem Chamber
of Commerce and asked if there will be a new program manager. Mr. Treadwell inquired whether the
Harbor and Lafayette intersection was CDBG eligible and about the status of the North River Canal
Corridor recommendations to extend Hanson Street and to create at the end of Harmony
Grove/Hanson Street. Mr. Treadwell inquired about projects currently on hold due to lack of
funding. Ms. Duncan stated that the Main Streets program hasn’t had an executive director for some
time, and that the Chamber of Commerce is overseeing the process of hiring a new program
manager. Ms. Guy answered that the Harbor/Lafayette intersection is CDBG illegible. Ms. Duncan
stated that transportation projects are very expensive and the City tries to partner with the State. Ms.
Duncan explained that the Harbor/Lafayette intersection is tied to the St. Joseph’s redevelopment
project and will move forward.
Teasie Gaugin questioned whether there was a point at which CDBG funds dry up. Ms Guy
responded that it is possible and that funding levels do change year-to-year; but she feels more
confident about the level of funding this year than she did this time last year, when the Bush
administration tried to eliminate CDBG. She stated that CDBG is a popular program with Congress.
Mike Whelan from Salem Harbor Community Development Corporation, commended the City for
funding small business development and first time homebuyer programs and stated that anyone
doing affordable housing knows that gap financing is critical. Mr. Whelan inquired about 15 Peabody
Street and part of its walkway by Derby/Congress and its issue with contamination. Ms Duncan
stated the Kirsten Kinzer, CDBG Planner was working on this project. Ms. Duncan stated that the
City applied, but did not receive a grant for the environmental assessment last year and resubmitted
it in December 2006, hoping to get funding this year. Ms. Duncan stated that Barbara Warren from
Salem Sound was working with students from Tufts to develop plan for a park; the City is also
working on the Open Space Plan which will allow the City to apply for park funds in hopes that all
sources will come together and the park will be developed.
Nancy Moore questioned whether sidewalks and streets were CDBG eligible; Ms. Moore moved on to
say that there have been issues of flooding, no curb cuts, and no visible crosswalk at Prince & Palmer
City of Salem FY 2008 Action Plan
Appendix
streets. Ms Guy responded that these were eligible activities and were within the low-moderate
income area. Ms. Duncan stated she would speak with Rick Rennard as to the priority list and where
this project falls acknowledging that children coming from Prince street/play ground need
crosswalks.
Mary Margaret Moore from the Independent Living Center of the North Shore & Cape Ann, Inc.,
stated that some of the biggest issues were affordable, available & accessible housing, aging and
disabilities. Ms. Moore stated she appreciated all the support received from CDBG. Ms. Duncan
stated that the housing department is launching a new program which allows very low income
people the ability to purchase a home and that Julie Quinn, Housing Coordinator, could provide her
with information on the different programs now in place. Ms. Moore commented on how she was
working with the aging and disability council; many seniors don’t know about home modification,
and as baby boomers age, will need more modification to keep this level funded. Ms. Moore stated
that with regard to the social security office move, she was not sure whether the new location would
be sufficiently accessibility to serve the elderly and disabled. Ms. Moore urged the City to make
parking and pedestrian access more accessible in that area.
Linda Locke asked if one could comment on CDBG without being associated with an agency and
whether the comments would be published. Ms. Guy responded that comments could be made
without being part of an agency and that comments will be summarized in meeting minutes that are
included in the Action Plan.
Jim Treadwell inquired about a press statement on using block grant funds for the new proposed
community life center and a request by Mayor to use loan program funded by CBDG. Ms. Duncan
responded that the Section 108 loan program would allow the City to borrow HUD funds for the
proposed community life center at the St. Joseph’s site and use CDBG as guarantee repayment.
With no further questions or comments the meeting was adjourned.
V. MINUTES OF 4/5/07 PUBLIC HEARING
The City of Salem held a public hearing regarding the Draft FY08 Action Plan for Community and
Economic Development for the period of July 1, 2007 to June 30, 2008. The public hearing was held in
the third floor conference room at the City Hall Annex, 120 Washington Street, on Thursday, April 5,
2007 at 6:00pm. Present representing the City of Salem were Jane Guy, Assistant Community
Development Director, Julie Quinn, Housing Coordinator, Kirsten Kinzer, CDBG Planner and Naomi
Francisco, Administrative Assistant who was available to provide Spanish translation. Copies of the
draft plan were available to all attendees in the audience. Lynn Duncan, Director of the Department
of Planning and Community Development (DPCD) arrived shortly after the start of the meeting.
Ms. Guy welcomed the group and stated that the purpose of the hearing is to obtain citizens’
comments on the draft FY08 one year Action Plan for housing, community and economic
development. The Action Plan development process started on February 1st with an initial public
hearing. Following that, draft Action Plan was developed. She stated that the Action Plan is a one
year document that outlines the activities to be undertaken utilizing federal funds for the upcoming
fiscal year including affordable housing, economic development, neighborhood improvement and
City of Salem FY 2008 Action Plan
Appendix
support for social services. The Action Plan puts into action the goals and strategies established in
the 5 year Consolidated Plan that was completed in 2005, includes any additional activities that are
determined to meet any new needs and priorities that have been identified since the Consolidated
Plan was developed and considers comments received from non-profits, residents and businesses at
the initial public hearing held in February. Ms. Guy noted that for the period of 7/1/07 – 6/30/08,
Salem has been allocated $1,161,440 in Community Development Block Grant (CDBG) funds
(approximately $2500 more than last year - still, except for last year, the least we’ve got since 1992).
The city also expects to receive HOME funds estimated at $192,616 and to generate about $150,000 in
program income. To utilize CDBG or HOME funds, activities must be considered eligible by HUD
definitions and must primarily assist moderate, low and very low income households or
neighborhoods (as illustrated in the highlighted area on the map), create jobs or improve the urban
renewal area (the downtown area indicated on map). She provided examples of programs we have
funded including:
• Business loan program to create or retain jobs
• Studies to preserve historic buildings
• Housing rehabilitation loan program
• First time homebuyer loan program
• Handicap access improvements
• Public facility improvements such as at the Loring Avenue firehouse
• Infrastructure improvements such as tree planting and street resurfacing
• Grants to social service agencies for various programs such as funds to prevent eviction, food
pantries, prescriptions, youth activities, senior transportation, child care, point neighborhood
bike patrols and job training
Ms. Guy stated that activities to be undertaken can be projects or programs that are managed directly
by the City of Salem or they can be projects or programs managed by other organizations. During the
annual process, the City issues a Request for Proposals to enable non-profit agencies to request funds.
Our plan identifies agencies seeking funds and their proposed programs. In the FY08 plan, at least
51% of all federal funds to be received will be targeted to affordable housing activities. The Action
Plan is a planning tool, but fortunately we have the flexibility to make adjustments as needed and to
react to emergencies that may arise. Because of the flexibility of HUD funding programs, our Action
Plan can be amended during the year to reflect unexpected changes in our needs, priorities or goals.
In this regard, included in the plan are two revisions to the Action Plan for FY07 which is the current
plan:
• A few years ago an elevator for handicapped access at City Hall was designed and all permitting
was completed, but the project did not proceed and last year we canceled the project. However,
unfortunately, the current wheel chair lift is on its last legs so the city is reinstating this project.
• As required by the State, we are conducting a Phase I environmental site assessment at the South
Harbor Garage.
All other planned projects will proceed.
Ms. Guy stated that this is the public comment phase of the Action Plan process. The public
comment period ends on April 26th. Following, all public comment will be considered and the plan
will be finalized and submitted to HUD. Persons interested may provide comment now verbally
and/or may provide comment in writing. However, written comments should be submitted no later
than April 26th Ms. Guy opened up the public hearing to anyone who has a question or would like
to comment on the draft plan.
City of Salem FY 2008 Action Plan
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James Treadwell asked for more details on the state mandated environmental site assessment at the
South Harbor garage.
Ms. Guy stated that she was not completely familiar with it, but several years back before the parking
garage was built, apparently something was supposed to have been done environmentally at that
time, and we recently got notified by the State that there was something that needs to be completed,
and so we are doing the environmental assessment now. She stated that when Ms. Duncan pops in,
we could ask her that question.
Mr. Treadwell stated that, looking at the map of the low and moderate income areas, we traditionally
think that most CDBG projects have to occur or be targeted in these areas. In the geographic
explanation, it appears to indicate that the only things that must be limited to those areas are streets,
sidewalks and playgrounds.
Ms. Guy replied that those are only examples. Every project must be reviewed for eligibility and
meet a 3-prong review. First, it must be an eligible activity of which there are several categories of
eligible activities. It has to meet one of three national objectives; those being benefiting low and
moderate income persons, aiding the prevention or elimination of slums or blight, or meeting a need
having a particular urgency. For benefit of low to moderate income persons, it can be limited
clientele activities, which is, for example, for the First Time Homebuyer Program, we will ask
someone to provide their household income information and we will evaluate whether they fall into
the low to moderate income category based on the income guidelines that HUD provides to us. We
can presume certain categories of persons are eligible, such as abused children, battered spouses,
elderly, severely disabled adults, homeless, illiterate persons, person living with AIDs, migrant farm
workers. We can also do area benefit, which is the area I showed you on the map, as well job creation
and retention, if the project will create or retain low/mod jobs. We can also do things that aid in the
prevention or elimination of slums and blight such as in a formerly designated area, which is the
cross-hatched area on the map or needs having a particular urgency for emergency conditions that
pose an immediate threat to the health and welfare of the community and no other funding is
available. For intended use, as an example, curb cuts for handicapped access can be installed
anywhere in the city because handicapped persons are presumed to be low or moderate income. On
the other hand, there has been a request for a traffic light at the intersection of Lafayette and Dow,
which we have not been able to do. Although there have been traffic accidents, the light would not
really serve the low/mod area. If there were pedestrian involvement, we could show it serves the
low/mod neighborhood. So we have to look at three different things for every project, so to say that it
can only be trees, streets or parks is not really accurate. So, we have to review it on a project by
project basis.
Beverly McSwiggin stated that CBBG funding was given to the Salem Harbor CDC to purchase a
building on Harrison Avenue and that the property is now being sold to Habitat for Humanity. She
asked what it was sold for according to the Purchase and Sale Agreement and will the CDC give the
money back to the City.
Ms. Duncan joined the meeting at this time.
Ms. Duncan stated that we haven't seen the Purchase and Sale Agreement, but noted that the CDC
will be paying the City back the $25,000 when it is sold.
City of Salem FY 2008 Action Plan
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Ms. Guy informed Ms. Duncan that a question was asked before she arrived about the environmental
assessment underway at the South Harbor garage.
Ms. Duncan stated that this goes back to, she believed to 1988, before the city owned the lot. She
stated that this is the first that this administration has hear of this and that she did not know why
DEP is going back to old files, but we are doing the testing now to do whatever we need to do to
bring it into compliance. She says she does not have the specifics on what the issue was but could get
it from the Conservation Agent, Carey Duques, who is the point person on this.
Mr. Treadwell asked if this activity was a carry over from the last fiscal year.
Ms. Guy replied in the negative and stated that it is an amendment to the current action plan, because
this is a need that arose during the fiscal year.
Ms. Duncan stated that Brownfield’s activity is an eligible activity and the city needs to be in
compliance to avoid any cash penalty.
Mr. Treadwell stated that what is in the action plan is the actual testing to determine if there is a
violation and asked if it is known that there is a violation.
Ms. Duncan stated apparently there was a reported concentration. It is clearly under the previous
owners but it is a question has to who has responsibility. DEP sees both the previous owner and the
city as responsible.
Jean Levesque noted we are second only got Georgetown in the Consortium communities in
affordable housing. He thought the state was not really pushing for the 10%. He asked what will be
the impact of the Dibiasi construction project off Marlborough Road and if there will be any
affordable housing included.
Ms. Duncan stated that the State is very much pushing having communities reach a minimum of 10%
affordable housing. Salem is now 13.1%, the second highest in the North Shore HOME Consortium.
Julie Quinn calculates the percentage on an annual basis. As Dibiasi units get permits, the units will
be added to this calculation. As part of the negotiation with the Planning Board, there was some
monitory contribution, some of which will go into the Affordable Housing Trust fund and some will
likely go into Park improvements at McGrath Park. The funds will come in increments over the
course of the development.
Mr. Levesque asked if there is any danger of falling below 10% affordable.
Ms. Duncan stated that it is a real issue and the City has been doing a lot of work with Loring Towers
to keep all of those 250 units on the subsidized housing list. Fairweather Apartments appears that it
will be purchased by Preservation Of Affordable Housing (POAH) so that those units will remain
affordable, because there is always a chance that as those mortgages are paid off, there are expiring
use agreements, so if you loose 250 units of your subsidized housing inventory, you can start to fall
behind. She stated that it is critical for the city to keeping looking at ways to create affordable
housing in order to make sure that that doesn’t happen. There are market rate developments and
City of Salem FY 2008 Action Plan
Appendix
even one house at a time that get built that could bring our percentage down. She stated that Salem
is not in jeopardy today, but track it on an annual basis in terms of the building permits issued and
the city has set up an affordable housing trust and trust fund to take some responsibility to look at
how we can keep the City from falling below 10% and to look at how the city can serve the residents
who need affordable housing.
Mr. Levesque asked about the Salem Harbor CDC units.
Ms. Duncan stated that the CDC property going to Habitat for Humanity on Harrison Avenue will be
2 units.
Ms. Guy stated that the CDC is also creating affordable housing at 50 Palmer Street.
Mr. Levesque asked if the Lincoln Hotel still has a Section 108 loan.
Ms. Guy stated that the property has sold and an agreed upon amount was paid to the city to close
out the loan obligation.
Ms. McSwiggin stated that there is talk another building going up at Loring Towers.
Ms. Duncan stated that she heard of that possibility in very general terms, but has not heard anything
specific.
Ms. McSwiggin asked if it will be affordable housing.
Ms. Duncan replied that other than they were looking at the site to see if there is additional land to
put up another building, that is the extent of the information she has. Right now the focus has been
on the expiring use restriction, the 121A agreement and trying to meet tenants needs.
Ms. McSwiggin asked if the money in the action plan going toward the St. Joseph’s site will be for
affordable housing.
Ms. Duncan replied in the affirmative.
Ms. McSwiggin stated that in a document she obtained from the state website on the 2000 census,
Salem is 10th in affordable housing at 14.2%., even more than Lynn. She questioned the need of all the
affordable housing being built throughout the city.
Ms. Duncan stated that besides St. Joseph’s, there are only the Salem Harbor CDC’s 15 units at 50
Palmer Street, potentially the 2 units by Habitat at 1 Harrison, and 28 Goodhue Street, which agreed
to do 4 units. There is a Trust that is working on it, but they don’t have money right now, so there are
not a lot of projects on the books. Usually when we have these meetings, including the public
meeting that started this process, there has been expressed an overwhelming need for affordable
housing in the city.
Mr. Treadwell asked if the chart on page II-3 entitled “40B subsidized housing” is really the
percentage of year round housing that is affordable.
City of Salem FY 2008 Action Plan
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Ms. Quinn stated that the information in the chart is provided from the State’s Chapter 40B
Subsidized Housing Inventory and that Salem is at 13.1%.
Ms. Duncan stated that the list is different from housing that is affordable. The state’s list has a clear
definition and includes those that have some kind of governmental subsidy. It would not include an
apartment whose rent is just affordable, because those rents could go up tomorrow. We do not track
private housing that may have affordable rents, only the units so defined by the state as subsidized.
Mr. Treadwell stated that the wording on the prior page speaks to year round affordable housing.
Councillor Sosnowski asked where are we with the $200,000 that has been put aside for the St. Joseph
church redevelopment into 45 units from FY07 and FY08.
Ms. Guy stated that no funds have been spent or drawn down from our grant. It is being held until
the project is in place.
Councillor Sosnowski asked when the CDBG eligible area boundary lines will be redrawn.
Ms. Guy replied that they are redrawn every 10 years when new census data is released.
Councillor Sosnowski stated that , in talking with Regional Director of HUD Boston, he stated that
CDBG money can be used for a Council on Aging center anywhere in Salem.
Ms. Guy replied that, in HUD regulations, seniors are presumed to be low/mod income. That means,
in general, most programs that are for seniors, any senior can participate. However, if Rose Kennedy
applied to get a rehab loan, she wouldn’t automatically get it because she is a senior. She would have
to provide her household income information. For a senior center that strictly has senior-only
programs, the presumption is that the seniors are low/mod and therefore “technically” it could be
located anywhere. “Practically” it should be located so as to be accessible to seniors (i.e. bus routes).
For a Community Life Center, which may include some senior programs and some community-wide
programs (offered to youth and adults), it would have to be located in a low/mod area because you
can’t presume everyone would be low/mod unless you actually make people sign up and divulge
their household income for each program they sign up to, which would not be practical to do. In
short, a senior center could be located anywhere, the practicality of it is you want to make sure it is
accessible. A community life center, you would have in a low/mod area, so you could presume the
low/mod persons in that area and the seniors are using it.
Councillor Sosnowski stated that he would like to request a handicapped tot-lot at the Salem
Commons. The current playground is in dangerous condition and we would like to replace it with a
fully accessible playground. He added that there is a nice accessible playground in Peabody, but
handicapped children from Salem should not have to travel to Peabody to use a facility like that.
Ms. Guy stated she would want to verify if the project is eligible.
Michael Coleman stated that he is the President of the Salem Common Neighborhood Association
and is fully in support of this request.
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Councillor Sosnowski added that he would like a design that respects the historic character of the
neighborhood, not bright yellow, blue and green plastic.
Ms. Guy stated that it would have to go through the Salem Historical Commission.
Mr. Treadwell asked who is responsible for the preparation of the Environmental Review records?
Ms. Guy replied that she prepares and maintains those documents.
Mr. Treadwell asked the status of EPA funding applied for, for the two the Brownfield’s sites.
Ms. Duncan replied that they are located at 61 Ward and 15 Peabody Street. At both sites, funding is
set aside for improvements for safety improvements at Congress/Peabody/Ward and to create a small
park at 15 Peabody connecting the Point Neighborhood to the waterfront. The City found that there
are environmental issues at both sites and we are looking for sources of funds for clean up. We
applied to the EPA in December, 2005 and were not successful. We have reapplied with guidance
from the EPA on improving our application and are hoping to get funding this spring. Salem Sound
Coastwatch brought in students from Tufts University to do a design of the park at 15 Peabody and
there will be a final presentation some time in May.
Ms. Kinzer stated that it will be the first Tuesday in May.
Mr. Treadwell stated that in the Action Plan the City, it states that the City is committed to
conducting neighborhood planning studies and asked what the commitment is to undertaking
neighborhood planning studies.
Ms. Duncan stated that the DPCD just finished the Point Preservation Plan and have also applied for
grant funding from Massachusetts Historical Commission for a study on Neighborhood Architectural
Conservation District(s).
Mr. Treadwell stated that the first neighborhood planning study was of the North River Canal.
Corridor He stated that he would like to see some support to implement some of the
recommendations, rather than to see them just sitting on a shelf.
Ms. Duncan agreed that implementation is needed for NRCC plan and that some time should be
spent on implementation and not just new planning.
Mr. Treadwell stated that the Action Plan identifies Lafayette Park improvements and pedestrian
improvements at Lafayette and Harbor as being tied into the St. Joseph's redevelopment. He asked if
these are problems right now, why they are tied to a project that may be years down the road.
Ms. Duncan stated that when St. Joseph's redevelopment starts to move forward, the City will be
eligible for Community Development Action Grant funds for public infrastructure improvements
tied in with affordable housing development. We have the funding for traffic calming but people
would really like to signalization there as well. We don’t have enough funding to both. But, we can
get additional state support to do the entire project, as well as the Lafayette/Dow intersection, by
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tying this work to St. Joseph's. If we undertake the work prior to the development, we cannot use
funds spent as part of the city’s match which is required by the State. Shed added that Lafayette park
may be tied to the Dow/Lafayette intersection because improving this intersection probably involves
extending the park. The park and the traffic improvements will be packaged together because they
are inter-related.
Ms. McSwiggin asked if those are privately owned buildings for the EPA grant.
Ms. Duncan stated that 15 Peabody Street is a vacant parcel owned by the city and 61 Ward Street
was obtained by tax title and is owned by the city.
Ms. McSwiggin stated that on page III-IV is mentioned Horace Mann and Saltonstall Schools and
asked if CDBG funding is going to those schools.
Ms. Guy replied in the negative, noting that this narrative is required by HUD, and was completed by
a consultant during the Consolidated Plan process and was in response to a school department
inquiry as to the status of education.
A participant asked about community support services and which agencies get funded.
Ms. Guy stated that existing programs tend to continue to get funding, unless they are not
performing. New programs get highly scrutinized because there is such limited funding. Some times
programs get funding cuts if there is not enough funding to level fund programs. There is a Citizens
Advisory Committee that reviews the DPCD’s recommendations and then it is forwarded to the
Mayor’s office for final determination of awards. She stated that there is a cap on what can be spent
on public service programs, which is 15% of the entitlement grant for the year, plus the program
income from the prior year. Since this fiscal year has not ended, it is not known the exact amount
available for public services in FY08, so this is estimated for the purposes of the Action Plan.
Ms. McSwiggin questioned offering a $1000 housing loan bonus for people going through the First
Time Homebuyer Education Program. She said it seems like the city is paying people to attend.
Ms. Guy stated that an educated first time home buyer is the better to avoid loosing your home down
the road. The education program provides information on rentals, fair housing, the mortgage process
and a lot of other questions. We support people who go through this program.
Ms. McSwiggin suggested making it a condition on getting a First Time Homebuyer Loan, rather
than giving them an extra $1000.
Ms. Quinn stated that this year we made some revisions to the first time homebuyer program and the
additional $1000 in loan funds is one of the changes. It is an $1000 matching bonus, that in order to
get it, the homebuyer must have an additional $1000 in matching funds. It is an interim phase. It is
possible that in upcoming years we may require it.
Ms. Duncan stated that it is a transition, so one person does not question why the person before did
not have to go through it. It’s a way to use a carrot, instead of a stick. It is an interim period to move
in that direction. It is a way to have more flexibility, so we are not just assisting moderate income
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homeowners, but is a way to help lower income to enable them to participate. By increasing the
percentage of ownership, it helps stabilize neighborhoods. It’s a way to provide lower income
households with a little more than the maximum loan amount.
Ms. McSwiggin stated that the program is to give 0% interest funds for a downpayment that does not
have to be paid back until they sell the house or refinance it.
Ms. Duncan stated that the homeowner has to provide matching funds. We try to make the homes
affordable to people of modest means.
Ms. McSwiggin questioned why the city is offering an incentive of an extra $1000. She stated that one
would think that the homeowner would want to take the course.
Ms. Quinn noted that it is an extra time commitment for the homeowner. Also, we used to have
people come to us 2 weeks before the closing on their house, where they already had their purchase
and sales agreement and were ready to go, but we would like to get people in earlier. Therefore, we
have extended the lead time requirement, so this allows them the time to take the course.
Ms. Teasie Goggin asked if the grant writers employed by the city will help citizens research and
locate grants. For example, do I have a right to go to the grant writers and ask them to help locate
grants for a senior center.
Ms. Duncan stated that we don’t have actually have grant writers employed by the city. Different
departments write their own grants. For example, the Planning Department might look for grants for
projects we are working on such as the traffic improvements. The police, fire and school departments
look for grants to support what they do. So the way to do that is for it to be a city project.
Ms. Guy sometimes we will have grant opportunity notices sent to us by the state such as Survey and
Planning Grants or Massachusetts Preservation Projects Funds, so as those opportunities arise, we
will determine if we have a project that we need funding for that is applicable to the grant available.
Ms. Goggin stated that sometimes there are grants available that people may not be aware of and
asked if there are people with the expertise in the city to locate them.
Ms. Duncan stated that we have that expertise, but there are limited grant dollars available for these
types of programs these days. If something came across our desk that was suitable, we would
certainly let the Mayor’s Office know about it. We get emails of Notices of Funding Availability
(NOFAs) and we are tied in with the regional planning agency. Ms. Guy is familiar with HUD and
what is available through the Block Grant.
Ms. Goggin stated that many people in the city that probably need additional help, as opposed to the
ones that fall into the areas on the map, and they may not know there are things out there that they
can go to.
Ms. Guy stated that we fund approximately 30 different social service agency programs and people
don’t have to live in the mapped areas. They can be eligible for programs by meeting certain criteria
when they go to the agencies, such as the Boys and Girls Club or the Haven From Hunger for food or
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going to a job training program. There are lots of programs depending on what type of need
someone may have. She stated that there is a list of proposed programs in the Action Plan, which is
probably very similar to the programs being funded in the current fiscal year. Those programs are
available to anyone who meets the definition of a low/mod household. On our website, on the home
page is a link to various social services agencies and food resources guides.
Ms. Duncan stated that the city has been aggressive in applying for additional housing resources,
above and beyond what we get through the Block Grant program. She stated that we got additional
funding for lower income households for downpayment assistance and we got additional funding for
the removal of lead paint.
Ms. Guy stated that all the Housing Programs are also on the website, including guidelines for the
First Time Homebuyer Program, the Rehabilitation Program and the Get the Lead Out Program.
Ms. Duncan stated the city has also been aggressive looking for grant funds for waterfront programs
such as the ferry, pier and harborwalk.
Mr. Treadwell suggested using something that is not gender specific for “landlord”. He also asked
the status of the harbor walk as part of the Chapter 91 for the hotel.
Ms. Duncan stated that she would look into it.
Mr. Treadwell asked more information on use of the $200,000 for the St. Joseph’s project.
Ms. Duncan stated that it hasn’t yet been used for anything. She noted that the cost to build
affordable housing is very expensive. The Planning Office for Urban Affairs has applied for various
sources of funding including tax credits from the state and funding from the North Shore HOME
Consortium. The city has indicated that it will also support the affordable housing. Right now there
are 67 total units proposed, of which 45 are proposed for affordable housing,. So it is gap financing to
make that project work.
Mr. Treadwell asked if the gap financing will be limited to $200,000.
Ms. Duncan stated that she would not limit it at this point and noted that the project has changed
with the exclusion of the community life center.
Mr. Treadwell stated that he was questioning it because it is still carried in the Action Plan.
Ms. Guy stated that it is $100,000 per year for two years and that FY08 is the second year.
Ms. McSwiggin stated that for Habitat for Humanity, the plan says the creation of two affordable
units. She noted that there is a purchase and sales agreement signed. She asked if any of the CDBG
money would be going toward the sales price.
Ms. Duncan stated that it could be.
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Ms. McSwiggin noted that the money could be used to purchase the building from Salem Harbor
CDC.
Ms. Duncan stated that it could be a combination of acquisition and reconstruction.
Ms. Guy stated that the city has not committed to it, but that it is one of the applications that the city
received.
Ms. McSwiggin stated it says $182,000.
Ms. Duncan stated that it is not just Habitat for that funding.
Ms. McSwiggin stated that it also says HES and asked where it is.
Ms. Quinn stated that it is on Federal Street.
Ms. McSwiggin asked if they were rental units.
Ms. Quinn replied in the affirmative, that they were 9 units for mentally ill.
Ms. Guy stated that the units are already there.
Ms. Duncan stated that the proposal is to address a safety issue.
Ms. McSwiggin asked about the $261,000 in administration expenses. She asked if there were
separate people working for that.
Ms. Duncan stated that we have a department of twelve of which most are at least partially funded
with Block Grant dollars and who spend some of their time on community development.
Ms. McSwiggin asked if some are paid by the city, also.
Ms. Duncan replied in the affirmative.
Ms. McSwiggin stated that it states that we can a copy of where the funding has been spent. I think
the CAPER is what it is called.
Ms. Guy stated that it is on the city website, that she has a copy at the Planning Department and at
the public library.
Ms. McSwiggin asked if it will say how much funding went to that specific project.
Ms. Guy replied in the affirmative, noting that it will only indicate if any funding has been spent.
Ms. McSwiggin asked if the money has not been spent, it carries over.
Ms. Guy replied that it gets carried over to the next fiscal year unless the project gets cancelled.
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Councillor Prevey asked Ms. Guy about the Downtown Outreach Programs.
Ms. Guy stated that the Downtown Outreach Program is funded with public services funds, which
we have been funded for a number of years for the salary of the outreach worker.
With no further questions or comments, the meeting was adjourned.
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IV.C. Maps
City of Salem FY 2008 Action Plan
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IV.D. CPMP Needs Tables
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IV.E. North Shore Home Consortium Tables
The following tables are taken from the North Shore HOME Consortium’s 5-Year
Consolidated Plan (2005-2010). The City of Salem is a member of the Consortium and
participates in its activities, working toward achieving the goals of both the Consortium’s
and the City of Salem’s 5-Year Consolidated Plans.