CDBG FY08 CONSOLIDATED ANNUAL PERFORMANCE EVALUATION REPORTCONSOLIDATED ANNUAL PERFORMANCE
AND EVALUATION REPORT
CITY OF SALEM, MASSACHUSETTS
Fiscal Year 2008
July 1, 2007 to June 30, 2008
Kimberley Driscoll, Mayor
Lynn Goonin Duncan, AICP, DPCD Director
Jane A. Guy, Assistant Community Development Director
Department of Housing and Urban Development
Office of Community Planning
COVER PAGE/CERTIFICATION Grantee Performance Report
Community Block Grant Program
1. PROGRAM YEAR END: 6/30/08 2. GRANT NUMBER: B07MC250029
3. NAME & ADDRESS OF GRANTEE:
City of Salem
93 Washington Street
Salem, MA 01970
4. NAME & ADDRESS OF CD DIRECTOR:
Lynn Goonin Duncan, Director
Dept. of Planning & Community Development
120 Washington Street
Salem, MA 01970
5. NAME & TELEPHONE NUMBER OF PERSON
MOST FAMILIAR WITH INFORMATION IN THIS
REPORT:
Jane Guy
978/619-5685
6. NAME & TELEPHONE NUMBER OF PERSON TO
CONTACT ABOUT DISCLOSURES REQUIRED BY THE HUD
REFORM ACT OF 1989:
Jane Guy
978/619-5685
7. Have these Community Development Block Grant (CDBG) funds been used:
a. to meet the community development program objectives in the final statement for this program year? If no, explain, in a narrative
attachment, how: (1) the uses did not relate to program objectives; and (2) future activities or program objectives might change as
a result of this year’s experiences.
YES
b. exclusively to either benefit low-and-moderate (low/mod) income persons, aid in the prevention or elimination of slums or blight,
or meet community development needs having a particular urgency? If no, explain in a narrative attachment.
YES
c. such that the grantee has complied with, or will comply with, its certification to expend not less than 70% of its CDBG funds,
during the specified period, on activities which benefit low/mod income person? If no, explain in a narrative attachment.
YES
8. Were citizen comments about this report and/or the CDBG program received?
See Citizen Participation Summary Section
9. Indicate how the Grantee Performance Report was made available to the public:
See Citizen Participation Summary Section
I hereby certify that: This report contains all required items identified above; Federal assistance made available under the Community
Development Block Grant Program (CDBG) has not been utilized to reduce substantially the amount of local financial support for
community development activities below the level of such support prior to the start of the most recently completed CDBG program
year; all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate.
Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties.
(18U.S.C.1001,1010,1012;U.S.C.3729,3802)
Typed Name and Title of Authorized Official
Representative:
Kimberley Driscoll, Mayor
Signature:
_____________________________
Date:
9/29/08
_______________
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EXECUTIVE SUMMARY
Throughout the many years of the City of Salem’s Community Development Block Grant Program
(CDBG), significant improvements have been made to the City’s physical and social environment
for its low- and moderate-income residents. The CDBG program has made a strong impact in
Salem, as seen through the numerous homes rehabilitated, neighborhood facilities and infrastructure
improved, businesses strengthened, jobs created and families served through our public service
agencies.
During Fiscal Year 2008, we expended over 1 million dollars to assist our low- and moderate-
income residents. The focus of the program continued to target affordable housing programs,
neighborhood improvements, public service programs, and economic development initiatives. In
addition to CDBG funds, we expended $200,313 in HOME funds and $36,000 in American Dream
Downpayment Initiative (ADDI) funds..
The FY08 Consolidated Annual Performance and Evaluation Report (CAPER) provides an analysis
of the third fiscal year - July 1, 2007 through June 30, 2008 - of the City’s 5-Year Consolidated Plan.
This report is an opportunity to demonstrate our progress and report our successes over the past
fiscal year and to inform the community of how federal and local programs are making a difference
in the lives of low- and moderate-income residents throughout Salem.
Overview
Overall, we made notable progress during the past fiscal year. As this report indicates, we made a
significant advancement in meeting the goals and objectives stated in the 5-Year Consolidated Plan
and FY08 Action Plan. We also continued to meet HUD required funding and expenditure caps
and timeliness requirements.
We use various indicators to measure our success. In our housing programs, we continue to attract
first time homebuyers in neighborhoods throughout the city, improve housing conditions, help
renters move into decent, affordable housing and work toward increasing our affordable housing
stock. Our economic development programs continue to attract new businesses that create jobs in
our city and to improve existing businesses that retain jobs and enhance economic vibrancy. Public
service agencies continue to reach our low- to moderate-income residents with their valuable
programs that work toward family self-sufficiency. Finally, our neighborhood improvement projects
made visible changes to areas in the City of greatest need and helped all residents gain access to both
public and private services. Perhaps the greatest indicator of our success is illustrated in the positive
feedback we receive from those affected by our programs.
Organization of the Report
In this report, we included data to fulfill HUD requirements, as well as information that may be of
interest to our residents. The CAPER is broken up into four sections—Assessment of Goals and
Objectives, Supplementary Narratives, Funds Leveraged, and Citizen Participation Summary—in
order to provide residents with an overview of our accomplishments and allow readers to track our
progress throughout the fiscal year.
• Assessment of Goals and Objectives – Throughout this section we provide a summary of our
accomplishments over the past fiscal year, including an summary of our expenditures. It
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provides an overview of each program area including an assessment of goals and how activities
met the objectives laid out in the Consolidated Plan.
• Supplementary Narratives – As part of our reporting requirements for HUD, we must answer
certain questions regarding our program expenditures and activities. In this section, we provide
a supplementary narrative that provides answers to these questions.
• Funds Leveraged – Another measure of the success of our program is the funds we leverage with
our two federal grants. This section includes a table outlining the funds leveraged from the two
federally funded programs—CDBG and HOME.
• Citizen Participation Summary – In this section, we outline how we solicit public comment on our
programs and list the comments heard, if any, during the Public Comment Period, along with
our response to those comments.
The Appendix includes maps, a Financial Summary and tables and spreadsheets to help illustrate
program expenditures and progress.
Contact Information
We are always open to feedback on our progress, as well as to answer questions regarding any of our
programs mentioned in this report. If you would like more information please contact the
Department of Planning and Community Development at 978-619-5685.
CAPER finalization date – 9/29/08
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TABLE OF CONTENTS
EXECUTIVE SUMMARY
INTRODUCTION ..................................................................................................................................................1
ASSESSMENT OF GOALS AND OBJECTIVES .....................................................................................................3
Affordable Housing Programs ................................................................................................................4
Public Services .........................................................................................................................................10
Economic Development ........................................................................................................................15
Neighborhood Improvements ..............................................................................................................18
Planning & Administration ....................................................................................................................20
Other Actions ..........................................................................................................................................21
Summary/Program Evaluation/Conclusions .....................................................................................25
SUPPLEMENTARY NARRATIVES ......................................................................................................................26
FUNDS LEVERAGED.........................................................................................................................................29
CITIZEN PARTICIPATION SUMMARY ..............................................................................................................31
APPENDIX
Financial Summary
Comparison Table - Proposed Vs. Actual Accomplishments (IDIS PR03)*
Progress of Consolidated Plan 5-Year Goals*
IDIS Report PR23 Excerpt
Total CDBG Beneficiaries by Racial/Ethnic Category*
CDBG Beneficiaries by Income Category*
Maps
*Available in hard copy only. Not in on-line version.
Cover photo: Gulu Gulu Café Ribbon cutting with Mayor Kimberley Driscoll and State Representative John Keenan (right).
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INTRODUCTION
The Consolidated Annual Performance and Evaluation Report (CAPER) is a summary of the annual
accomplishments produced by the City of Salem and its community partners, as the goals and
objectives of the Fiscal Years 2006-2010 (FY06-10) Consolidated Plan were implemented. The
FY06-10 Consolidated Plan began on July 1, 2005. The FY08 CAPER provides an analysis of the
third fiscal year of the 5-Year Consolidated Plan — July 1, 2007 through June 30, 2008.
Program Goals
One of the overarching goals of the City of Salem is to provide a healthy, affordable and accessible
community for its residents to live and work and for its businesses to thrive. To accomplish this
goal, the City uses grants from the U.S. Department of Housing and Urban Development (HUD)—
Community Development Block Grant (CDBG), Home Investment Partnership Program (HOME)
and American Dream Downpayment Initiative (ADDI)—which are administered through the
Department of Planning and Community Development (DPCD). The following describes each of
the grants and their program objectives.
•
•
•
CDBG is a formula-based program designed to develop viable urban communities by
providing decent housing, a suitable living environment, and expanding economic
opportunities for persons of low- and moderate-income1.
HOME is a formula-based program for expanding and improving the supply of decent, safe
and affordable housing for low- and moderate-income persons.
ADDI is a formula-based program aimed to increase the homeownership rate, especially
among lower income and minority households, and to revitalize and stabilize communities.
These resources fund a wide range of projects designed to develop and maintain affordable housing,
improve neighborhood public facilities, provide economic opportunities, improve access to public
facilities for people with disabilities, provide critical public services, assist people who are homeless,
and prevent homelessness.
Importance of the Consolidated Plan, Annual Action Plan, and CAPER
In a streamlining effort initiated in the mid-1990s, HUD consolidated the various planning efforts
required by the National Affordable Housing Act of 1990 and the Housing and Community
Development Act of 1992. A Consolidated Plan for Housing and Community Development
(Consolidated Plan) must be prepared every five years in order to receive CDBG and HOME funds
from HUD. Prior to the start of each fiscal year within the five-year Consolidated Plan period, an
Annual Action Plan must also be prepared which lists the specific projects that will be undertaken
with CDBG and HOME funds during that year.
In addition to streamlining planning efforts, HUD also streamlined reporting requirements through
the development of the Consolidated Annual Performance and Evaluation Report (CAPER). The
CAPER must be prepared annually and must describe how CDBG and HOME program activities
address goals and objectives identified in the Consolidated Plan.
1 Low- to moderate- income individuals equals less than 50 or 80 percent of the Boston area median income respectively.
1
This approach to planning and reporting eliminates duplication in preparing separate applications
and reports that, in turn, require multiple planning, development and citizen participation meetings
throughout the year. More importantly, the Consolidated Plan, Annual Action Plan, and CAPER
provide a comprehensive analysis of community needs, identify goals, and lay out objectives that will
be undertaken to address those needs, as well as provide a mechanism for reporting
accomplishments.
The Consolidated Plan, Annual Action Plan, and the CAPER provide a means to evaluate each
community’s situation and determine the most effective ways to use funds received from HUD. The
Consolidated Plan establishes a vision for attaining a higher quality of life for low- and moderate-
income residents, the Annual Action Plan outlines specific activities that work toward accomplishing
that vision, and the CAPER measures the success in achieving that vision.
2
ASSESSMENT OF GOALS AND OBJECTIVES
During FY08, the DPCD continued to make significant progress toward meeting the goals and
objectives laid out in the 5-Year Consolidated Plan and FY08 Action Plan. The CDBG entitlement
funds from HUD for the fiscal year was $1,161,440 and program income received during the
program year was $136,218.37. Our HOME funding allocation was $192,626. Salem is also under
contract with the North Shore HOME Consortium to assist first time homebuyers utilizing ADDI
funds2. The Financial Summary of our expenditures (Appendix 1) illustrates our compliance with
program expenditure caps as well as expenditures by category (also see Figure 1).
CDBG Expenditures
In FY08, we expended $1,076,522.75 in CDBG funds. Expenditures were divided into five program
areas — Affordable Housing, Neighborhood Improvements, Planning & Administration, Public
Services and Economic Development. In FY08, we met all timeliness requirements and program
expenditures were consistent with our 5-Year Consolidated Plan and FY08 Action Plan goals.
Furthermore, Public Service programs reached just below 15 percent, the maximum allowable for
such activities, and we fell well under the 20 percent Administration spending cap. In the Financial
Summary tables found in each program area, “funding available” indicates the total CDBG funds
available during the fiscal year, including FY08 and prior year carried over funds+/- any adjustments
made during the year.
HOME & ADDI Expenditures
In addition to CDBG funds, the DPCD also spent $200,313 in HOME funds to undertake
affordable housing activities and $36,000 in ADDI funds for additional assistance to lower-income
first-time homebuyers. When added to the $306,549 spent in CDBG funds for affordable housing
programs, the total amount spent for housing is $542,862 — representing the highest level of
funding in any of our programs. The City of Salem is a member of the North Shore HOME
Consortium and specific accomplishments of HOME and ADDI activities are reported to HUD
through the Consortium by the City of Peabody. A brief summary of our activities are reported
throughout this document.
Fig. 1 FY08 Spending by Category,
as a Percentage of Total CDBG, HOME & ADDI Expenditures
Program Accomplishments
Overall, we were on target in
meeting our Consolidated Plan
goals and objectives. The
following sections provide a
summary of accomplishments
for each of our program areas
and evaluate our progress
based on the needs outlined in
the 5 Year Consolidated Plan
and FY08 Action Plan. The
final section provides an
overall evaluation of our
programs.
FY08 CDBG, HOME & ADDI Ex pendi ture s by Ca tegory
Neighborhood
Improvements
19 %
Affordable Housing
41%
Economic
Development
8%
Public Services
14%
Planning &
Ad m in ist ra ti on
18%
2 Salem’s initial ADDI contracts were for $96,000 to assist Salem homebuyers and $346,815 to assist homebuyers in Salem and in
North Shore HOME Consortium member communities.
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AFFORDABLE HOUSING PROGRAMS
Due to the high cost of housing in Massachusetts, we
continue to place the creation and preservation of
affordable housing as the highest priority of Salem’s
CDBG, HOME and ADDI Programs. The City of
Salem has a number of services that address housing
issues including rehabilitating and maintaining current
housing stock, developing new housing
opportunities, assisting families in acquiring housing
and enabling struggling families to remain in their
homes.
In FY08, the City of Salem spent $542,862 in CDBG,
HOME and ADDI funds on affordable housing
projects and programs. The project
accomplishments attained with these funds during FY08 are described in the following table.
50 Palmer Street’s 15 units of
affordable housing is now complete
Table 1: FY08 Housing Financial Summary
Project Project Description Funding Available
as of 7/1/07 Status
First Time
Homebuyer
Program
Provides 0% interest deferred
payment loans to low- to
moderate-income families that
wish to purchase a home in the
City of Salem.
$109,090.27 (CDBG)
+ ADDI3
• $47,375 CDBG funds spent
• $36,000 ADDI funds spent
• 7 families assisted
• 7 total units
Housing
Rehabilitation
Loan
Program
Provides a combination of
technical and financial assistance to
help Salem’s low- to moderate-
income homeowners and landlords
make much needed improvements
to their properties.
$374,878.05
CDBG
• $106,988.29 CDBG funds
spent
• 6 owners/completed projects
(7 units assisted)
• 2 additional projects
underway (2 units assisted)
Rental
Assistance
Programs
Through the Rental Downpayment
Assistance Program funds are used to
help low- and extremely low-
income Salem residents move into
a decent, affordable rental unit.
Programs are administered through
NSCAP, HAWC and the Salvation
Army.
$79,697 in HOME
Contracts
• $49,017.03 in HOME funds
spent
• 39 families assisted thru
Rental Downpayment
Program Assistance
1 Harrison
Ave.
Provision of assistance for
acquisition of property to be
converted into 2 affordable units
by Habitat for Humanity.
$25,000 CDBG,
$70,000 HOME
• $25,000 CDBG funds spent
• $70,000 HOME funds spent
• Creation of 2 units underway
3 See footnote #2 on Page 3
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Salem
Mission:
Seeds of
Hope
Provision of assistance for
acquisition of property for
rehabilitation into supportive
housing for chronically homeless
individuals.
$38,595 HOME • $38,595 HOME funds spent
• 22 units completed
50 Palmer
Street
Provision of assistance toward
construction undertaken by Salem
Harbor CDC to create 15
affordable housing units.
$32,995.00 • $32,995 CDBG funds spent
• 15 units completed
Health &
Education
Services
Water supply upgrade for fire
suppression in housing for persons
with chronic mental illness.
$50,000 CDBG
• $14,697.50 CDBG funds
spent
• Project underway for 1
housing unit (17 persons)
Housing
Program
Delivery
Costs associated with providing
rehabilitation programs.
$112,488.53 CDBG,
$9632.00 HOME
• $99,088.53 in CDBG funds
& $9631.00 in HOME
funds for program delivery
• $13,400 for inspectional
services
Other Priority Housing Strategies
In addition to the projects listed above that were undertaken with CDBG and HOME program
funds, we also worked on the development of our other priority housing strategies listed in the
Consolidated Plan and the FY08 Action Plan. The following discuss the status of these projects and
the steps taken to achieve these strategies.
• Producing New Housing Units
Salem consistently provides support toward the creation of new affordable housing units
through the conversion of old, abandoned or underutilized buildings and parcels into new
residential housing units. For example, the City has committed funding to develop affordable
housing units at the former St. Joseph’s Church site. The Planning Office for Urban Affairs is
undertaking the project, which is still in the planning stages.
• 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. The Trust has committed $25,000 to Salem Lafayette Development
as predevelopment funding for the St. Joseph’s Church redevelopment.
• Preserving Existing Affordable Units
Salem has five private subsidized rental housing developments – Salem Heights, Loring Towers,
Pequot Highlands, Princeton Crossing, and Fairweather Apartments. Each of these properties
was built with the requirement to keep them affordable for a minimum of 40 years (or until the
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mortgage was paid). The affordability of two of these developments was in jeopardy recently.
The city took the following actions:
o In February 2003, the city reached an agreement that will keep Salem Heights’ 283
apartments rented at affordable rates for 100 years.
o The City recently negotiated with the owners and tenants of Loring Towers, a HUD 236
property which the owner had proposed to convert to a Low Income Housing Tax Credit
(LIHTC) project. In June, 2007, in order to protect the long-term affordability, as well as
the affordability for existing tenants, the Mayor signed a 121A Agreement, as well as entered
into a Memorandum of Understanding, which will ensure that 90% of the 250 units will be
reserved for families and individuals at or below 60% AMI and that 10% will be reserved for
those at or below 30% AMI for a period of forty years.
In addition, the Preservation of Affordable Housing (POAH) purchased Fairweather
Apartments which will ensure the affordability of these 127 units.
Funds for affordable housing are also set aside each year to provide resources for the city, or a
nonprofit partner, which could be used to acquire abandoned, derelict properties and turn them
back into good homes.
• Foreclosure Prevention
Located at www.salem.com/pages/salemma_dpcd/additionalresources/other, the city’s website
contains a list of links to various resources for foreclosure prevention and legal assistance.
Additional links are added as they become known. The DPCD is in the process of developing a
foreclosure prevention handbook. Housing staff are contacting and offering assistance to
families that may be threatened with the possibility of foreclosure. During FY08, one family
previously assisted with CDBG funds and threatened with foreclosure, through the efforts of
DPCD housing staff, was able to obtain financing for a new mortgage and save their home. The
DPCD is also tracking foreclosures to address vacant properties in neighborhoods. These
properties are discussed at a monthly departmental meeting.
The City continues to encourage first time homebuyers to complete a Certified homebuyer
education course, such as the one funded with CDBG funds through Salem Harbor CDC.
The City continues to fund Homeless Prevention Programs through Catholic Charities,
Salvation Army, NSCAP and Help for Abused Women and their Children which can be used for
emergency financial assistance to prevent eviction.
• Eliminating Vacancies as a Result of Foreclosure
Between July 1, 2007 and June 30, 2008, eighty (80) Salem properties were auctioned due to
foreclosure and became bank-owned. As of June 30, 2008, an additional thirty-four (34)
properties were in pre-foreclosure. Foreclosure often results in families being displaced from
their home. Foreclosures also result in an increased demand for affordable rental units by both
the former homeowner and by their renter. In addition, foreclosure can result in vacant
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buildings, which can have a deteriorating effect on neighborhoods. The City continues to fund
Rental Downpayment Assistance programs at Salvation Army, NSCAP and Help for Abused
Women and their Children to provide first/last month’s rent and security, which can be used for
displaced families. The city monitors vacant, abandoned and problem properties through a
monthly meeting that includes the Health Inspector, Fire chief, Building Inspector, City Solicitor
and Housing Coordinator.
The City’s First Time Home Buyer Loan Program is available to first time buyers who may want
to take advantage of the lower price that they may get by purchasing a foreclosed upon home.
The City’s Housing Rehabilitation Loan Program is also available to investors who purchase
foreclosed properties so that they can bring the property up to code and turn them into
affordable rental units.
• Improving Public Housing
The Salem Housing Authority continues to manage and maintain its 715 units of elderly, family,
and handicapped housing stock. Modernization work is progressing through funding of
applications made by the Salem Housing Authority to the Commonwealth of Massachusetts’
Department of Housing and Community Development and to HUD. The following
modernization work was completed at Salem Housing Authority public housing developments:
o an $817,000 project to replace windows, roofing, repair masonry and dryer venting at 86
Essex Street, part of the Phillips House family handicapped housing development,
o a $5.2 million project to replace roofing, siding, windows, and kitchen and bath ventilation at
the Rainbow Terrace family public housing,
o $25,000 post compliance de-leading project at 121 ½ Bridge Street, 73 Boston Street, 122 ½
Bridge Street, and 2 Hathorne Crescent, family housing developments,
o A $50,000 project to replace siding at the 73 Boston Street family housing development.
The following modernization work is currently in the planning stages and expected to begin in
FY09:
o a $136,000 site improvement plan for Rainbow Terrace family public housing development,
o a $500,000 project to construct an additional elevator at the Morency Manor elderly housing
development,
o a $1.675 million project to replace the stairs, stoops, and railings at the Rainbow Terrace
family public housing development,
o a $300,000 project to replace siding and other repairs to the Farrell Court family public
housing development.
• Providing Expanded First Time Homebuyers Assistance
The city continues its goal to provide families with the opportunity to own their first home.
One of the most popular programs the city runs is the First Time Homebuyer Downpayment
Assistance Program (FTHB). The FTHB Program had been highly successful in assisting
moderate-income first time buyers. However, 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
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households who cannot save up the downpayment necessary to become a homeowner in their
own neighborhood. To meet these identified needs, the City began utilizing ADDI funds
administered through the North Shore HOME Consortium. This year, 3 of the 7 first time
homebuyers assisted in Salem, were also able to access deeper downpayment assistance through
this program in combination with the FTHB Program.
In addition to administering the City’s First Time Homebuyer Downpayment Assistance
Program, DPCD staff also provide assistance in coordinating other resources for down-payment
assistance, such as Massachusetts Housing Partnership (MHP) Soft Second Program and a
variety of homeownership programs offered by MassHousing, as well as supporting first time
homebuyer education workshops provided by the Salem Harbor CDC.
• Providing Assistance to Renters
This year, the city will continue its commitment to assist families with Rental Downpayment
Assistance (first and last month’s rent and security deposit) to provide families with the funds
necessary to secure housing. The program is an important tool for helping families with the
costs of moving into a decent apartment.
• Rehabilitation of Existing Housing
Most of the housing stock in the city was built prior to 1949. While older homes are an integral
part of Salem's history and neighborhood fabric, they also require a great deal of maintenance.
In response to this issue, the city administers a Housing Rehabilitation Loan Program that provides
low-interest loans to homeowners of both single and multi-family homes to address health and
safety issues that would otherwise be too costly to take on. Through the rehabilitation of
existing housing stock, more homeowners, as well as tenants residing in rental units, can live in
decent housing. We have expanded the program to investor-owners with low- to moderate-
income tenants, to address code compliance and health and safety issues and to discourage the
conversion of affordable rental properties into market rate condominiums.
In addition, the City offers deleading assistance for homeowners with a lead poisoned child
through MassHousing’s Get the Lead Out Program. This program can be combined with the City’s
Housing Rehabilitation Loan Program. As a Local Rehabilitation Agency (LRA) for the Get the
Lead Out Program, 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.
• 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 13.2%. 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
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Shore HOME Consortium and with the region’s mayors to encourage the development of
housing throughout the area in an effort to increase the supply of housing for all.
Affirmatively Furthering Fair Housing
The neighborhood known as Salem Point contains the highest concentration of low income,
minority and Hispanic or Latino families (73.6% low/mod, 46.4% minority or multi-race and
50.75% Hispanic/Latino). To ensure that this population has knowledge and access to the city’s
First-Time Homebuyer and Rehabilitation programs, the city works in cooperation with the Salem
Harbor Community Development Corporation, a nonprofit organization that conducts housing and
community development activities in the Point neighborhood. The CDC periodically conducts a
four-week, first time homebuyer educational certificate course. In addition, upon request, the city’s
housing staff participate in homebuyer fairs held by lending institutions or at the Salem Harbor
CDC to provide information and counseling regarding its First-Time Homebuyer, Rehabilitation
and Deleading programs and to distribute written information regarding the Fair Housing and
Discrimination Act.
The City of Salem also provides public services funding to agencies whose activities assist specific
populations (homeless, battered spouses, low income, etc.) with improving their quality of life,
which may include locating emergency, transitional or permanent housing. For example, CDBG
funding is provided to the Independent Living Center to provide an Accessible Housing Education
Services Program. As necessary, these agencies advocate on behalf of their clients to ensure fair
housing.
The North Shore HOME Consortium, of which Salem is a member, completed an Analysis of
Impediments (AI) to Fair Housing in January, 2008. 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.
Continuum of Care
During FY08, the city continued to support local agencies that provide direct assistance to homeless
families and individuals in Salem, such as the Salem Mission and Help for Abused Women and their
Children, and to agencies that help households avoid homelessness. Agencies funded and their
accomplishments are provided in the table above as well as in the Public Services Section of this
report. It should be noted that 695 persons avoided homelessness through city-funded Homeless
Prevention and Transitional Housing Programs (reported in Public Services). The city also
continues to be a member of the local Continuum of Care Alliance administered by the North Shore
HOME Consortium. An overview of the activities of the Alliance can be found in the CAPER
submitted by the North Shore HOME Consortium (through the City of Peabody).
Evaluation of Goals
As we proposed, Affordable Housing Programs remain our highest priority for our federally funded
programs. This year, the downturn in the housing market resulted in above average foreclosures
and below average housing sales. Still, we assisted 7 households to purchase their first home
(missing our goal of 18). We are encouraged that of those 7 households assisted, 3 were low-income
households who were able to take advantage of our ADDI program. As of the end of year three,
with a total of 44, we continue working toward our five-year goal of assisting 75 households.
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The Housing Rehabilitation Loan Program continues to assist families in need and is on track with
meeting the goals laid out in the Consolidated Plan. In FY08, we are at our Action Plan goal of
rehabilitating 9 housing units (7 units completed, 2 underway). There were no applicants for the
Landlord Rehabilitation program (Action Plan goal of 1 unit not reached). As of the end of year
three, we have exceeded our five year goal to assist 55 housing units with housing
rehabilitation/code enforcement, by assisting a total of 97 units (61 through Salem Harbor CDC in
Year 1 and 36 through the City’s Housing Rehabilitation Loan Program in Years 1-3).
The Rental Downpayment Assistance Program, administered through local social service agencies to
provide grants to low- and extremely low-income Salem residents to help pay first and last month’s
rents and security deposits to enable them to obtain decent, affordable housing, has also been a
success. At 39, the program was just shy of the goal to assist 42 households. However, as of the
end of year three, with a total of 183, the program is well on its way of meeting its goal of 215
households assisted.
Salem Harbor CDC’s 50 Palmer Street project for 15 affordable units has been completed and a
grand opening was held in January, 2008. However, with the current real estate market, the agency
is in the process of getting approvals to convert from homeownership to rental units.
Salem Mission’s Supportive Housing Project to create 22 units of housing for chronically homeless
individuals and an additional unit for a low-income resident manager at 20 Endicott St./7 High St.
has been completed and is fully occupied.
Finally, we continue to place importance on the ongoing review and update of our program policies
and guidelines. All program materials are available on the city’s website.
10
PUBLIC SERVICES
The Consolidated Plan identified the need for
various social service programs that primarily
benefit Salem’s low- to moderate-income
population and those with special needs (such as
physically or mentally disabled, elderly or frail
elderly, youth, non-English speaking residents,
persons living with HIV/AIDS, substance abusers
and homeless persons and families). In FY08, our
priority goals were to continue to support a broad
range of social service programs that are consistent
with the needs and goals identified in the
Consolidated Plan and the FY08 Action Plan.
According to HUD regulations, we are allowed to
commit up to 15 percent of our CDBG allocation
on public service activities. In FY08, as in past years, our agencies expended just under that limit. It
is our feeling that these public service activities allow direct benefit to our low- and moderate-
income residents; therefore it is important to continue funding at this level.
Students of the Wellspring House, Inc.’s
MediClerk Program
Public service projects funded during FY08 were selected using a Request for Proposals (RFP)
process. The Citizen Advisory Committee reviewed all applications received using criteria that
included project eligibility and documented need for services. Recommendations on funding levels
were provided by the Citizen Advisory Committee following this review.
In FY08, we were able to expend $186,297.23 on 31 public service programs, which, in turn, assisted
14,238 people, including 1,336 children/youth and 663 seniors (see Table 2 for Active Projects).
“CDBG Funding available” indicates the total CDBG funds available during the fiscal year, including
FY08 and prior year carried over funds+/- any adjustments made during the year.
Table2: FY08 Public Services Financial Summary
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted FY08 Program Impact
Bentley Elementary School
After School Program $5,000.00 $5,000.00 325 youth
Provided yearbook program, chorus, boys
and girls basketball, Lego league and
various productions.
Salem Community Child Care
$10,000.00 $10,000.00 13 youth
13 households participated in the child
care program. Activities included
homework help,.
Salem Police Department
Bicycle and Walk/Ride Patrols $10,000.00 $8,530.88 151 persons
Conducted 184 hours of proactive,
preventative patrols in the point
neighborhood. Larcenies and B&E’s
were down from prior years by 15%.
Haven From Hunger
Food Pantry $10,000.00 $10,000.00 800 persons Approximately 2400 bags of food
distributed
H.A.W.C.
Children’s Program $10,000.00 $10,000.00 95 persons
(25 families)
8 families completed the program and
found safe housing
11
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted FY08 Program Impact
Morgan Memorial Goodwill
Industries
Career Planning Program
$5,862.03 $2,752.18 8 youth
7 Salem High School students with
disabilities still in school. 1 obtained part
time employment.
Salem Access Television
Youth in Action $2,629.68 $2,629.68 12 youth
The students learn how to express
themselves using storytelling and adapting
that into a storyboard to develop role
playing to produce programs and skits
which is documented into a 20 minute
video.
Salem Mission
Outreach Street Advocate $7,200.00 $7,000.00 11 persons
Persons were referred to detox, mental
health services, health care, other shelters
and to Salem Mission services and/or
shelter.
Salem Mission
Food Pantry $10,000.00 $10,000.00 1,866
persons
9,572 bags of food distributed to 1301
unduplicated households
Cerebral Palsy Association
North Shore Infant & Toddler
Preschool Program
$4,000.00 $4,000.00 52 children
Children enrolled demonstrated
improvement in at least 2 or more areas
of development including
social/emotional/self-care, cognitive, fine
motor, gross motor and language. 14
went on to pre-school, 2 to day care, 16
to special needs and 19 remaining in
program
Salem Harbor CDC
First Time Homebuyer Training
Program
$2,500.00 $1,275.00
17
households
(min. 17
persons)
Two 4-session certified training program
courses were held. Completion of the
course makes the certificate holder
eligible for certain low-income mortgage
products from commercial banks and
lending institutions.
Independent Living Center
Accessible Housing Education
Services Program
$5,000.00 $5,000.00 62 disabled
persons
The agency provided information &
referral services, housing peer counseling,
housing skills training and housing
advocacy. 5 persons were assisted with
finding housing. They conducted 2
housing forums and provided 14
applications for Salem Housing Authority
or universal assistance.
Catholic Charities
Little Lambs Program $2,500.00 $2,500.00 233 youth
79 households provided with diapers and
wipes and other age appropriate baby
items. 5 clients were referred for GED
or continuing education.
North Shore Community Action
Program
Salem Cyberspace Cyberyouth
$4,300.00 $4,300.00 41 youth
After school academic and technology
enrichment program for teens. 7 youth
obtained job internships.
Salem Y.M.C.A.
Teen Initiative $4,000.00 $4,000.00 79 youth Activities included tutoring, fitness classes
and basketball.
Salvation Army
Prescription Program $3,291.26 $791.26 124 persons 56 prescriptions filled.
Catholic Charities
Homeless Prevention Program $10,000.00 $8,667.26 84 persons 26 families avoided homelessness
St.. Joseph’s Food Pantry $4,000.00 $4,000.00 7,937
persons 9,332 bags of food distributed
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Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted FY08 Program Impact
Boys & Girls Club
Enhanced Program Development $5,000.00 $5,000.00 390 youth
Programs: homework & nature programs,
dance, theatre, newspaper, kickball,
football, hockey, dodgeball, soccer,
basketball, leadership & wellness groups,
junior achievement, career launch,
arts/crafts, cooking and teen programs.
Power hour participation increased from
110 in 06/07 to 194 in 07/08.
Salem Fire Department
Juvenile Firestarter Intervention
Program
$5,000.00 $4,922.26 5 youth
In the last 5 years, there have been no
reports of students having completed the
program and being further involved in
fire related criminal offenses.
Salem YMCA
School Age Child Care Program $10,000.00 $10,000.00 178 youth
Provided art, gym, swimming, computers,
homework help, science, kickboxing,
youth nautilus, cooking, spinning, video
games, rock band, games & a varied
curriculum.
North Shore Community Health
Outreach & Enrollment Program $4,000.00 $4,000.00 294 persons
Dental appointments totaled 34 Salem
residents and medical appointments
totaled 92 Salem residents
Salem Family Investment Center
Work Readiness Program $5,000.00 $5,000.00 9 persons
2 students passed GED exam with 2
more scheduled to take the test. 7
students have secured employment.
Salem Family Investment Center
Citizenship Literacy Program $3,000.00 $3,000.00 10 persons
Students improved from an average pre-
test score of 54% to average post-test
score of 89%. 1 student registered for
the citizenship exam.
V.O.C.E.S.
Hispanic Education Program $5,411.17 $5,411.17 163 persons
During the year, 5 students who
participated in classes obtained their
GED and 130 have become U.S. citizens
(may include prior year classes).
Salem Council on Aging
Transportation Program $19,558.79 $15,933.62 663 seniors
Rides provided were to the council on
aging (2196), medical (1557), shopping
(563), hairdresser (191), pizza party (34)
and other (116).
NSCAP
Homeless Prevention Program $10,000.00 $10,000.00 80 persons
31 families avoided homelessness (18 for
assistance with utilities, 13 for rental
arrearages)
Salvation Army
Transitional Housing $5,361.56 $2,300.00 17 persons
(5 families)
Following transitional housing, 3 families
were able to move into permanent
housing .
Salvation Army
Homeless Prevention $10,116.00 $8,732.00 508 persons 20 families avoided homelessness
H.A.W.C.
Homeless Prevention Program $9,111.35 $8,851.92 6 persons 3 families avoided homelessness
Wellspring House
MediClerk Program $2,700.00 $2,700.00 5 persons 4 of 5 graduates from Salem obtained
jobs in the medical field.
TOTAL PERSONS ASSISTED 14,238 persons,
including 1,336 children/youth & 663 seniors
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Evaluation of Goals
As stated before, Public Service activities allow us to provide direct services to our low- and
moderate-income residents. This year, approximately $8,370 less funds were available for public
service activities over last year. Nevertheless, for Year 1, Year 2 and Year 3of the current
Consolidated Plan, we have exceeded our Consolidated Plan goal of assisting 25,200 persons (8,400
per year) by assisting a total of 32,946 persons, as well as meeting our FY08 Action Plan goal of
providing 29 new grants. This reflects the strong commitment among our staff and public service
providers to supply needed services and stretch dollars. We are fortunate to have an excellent
network of public service providers that utilize our funds to best meet community needs, which is
why continue to spend just short of our funding cap of 15 percent.
Youth learn media skills and artistic self-
expression through Salem Access Television’s
Youth In Action Program.
Salem Community Child Care students
learn about different cultures.
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ECONOMIC DEVELOPMENT
The City of Salem is committed to continuing efforts to stimulate
our local economy and, as a result, has seen a surge of
redevelopment in the past few years. This new development has
lead to a revitalization of our business districts and to increases in
the number of businesses providing needed services to our
residents.
Nevertheless, there is much work to be done. According to the
2000 Census, Salem has an average of 46.7% low- and moderate-
income residents. Further, Salem’s median household income in
2000 of $44,033 ranks 286 out of 351 cities and towns in the
Commonwealth. For these reasons, Salem continues to focus on
economic development in order to bring new employers and new
jobs to the city, while retaining jobs by helping existing businesses
improve their commercial infrastructure or expand their operations.
The increased development is bringing vitality to the downtown,
providing goods and services locally, and improving and stabilizing
neighborhood business districts in the process. Improved vitality
in our neighborhood and downtown commercial districts also has
the residual effect of improving public safety.
CDBG loan funds helped make this
business dream a reality for its owner.
The City of Salem is dedicated to economic development through efforts to revitalize the downtown
and neighborhood commercial districts, improve exterior building facades, and assist local business
owners. Our economic development funds are used to fund the Business Loan Program, Storefront
Improvement Program and Technical Assistance Programs.
Business Loan Program
The Business Loan Program is designed to encourage all types of entrepreneurs to locate in the City,
create jobs, and revitalize the area through rehabilitation to their buildings. There are three types of
loans:
• Microenterprise Assistance – provides loans to low- to moderate-income entrepreneurs to assist
with their microenterprise business (5 or fewer full-time employees, including the owner);
• Commercial Revitalization – provides loans to business owners in the downtown and eligible
neighborhood districts to assist with the exterior rehabilitation of their building and/or to
correct code violations; and
• Special Economic Development – provides loans to business owners throughout the city in exchange
for job creation for low- and moderate-income people.
Storefront Improvement Program
The Storefront Improvement Program is designed to encourage private investment and
reinvestment by new and existing property/business owners in the eligible neighborhood and
downtown commercial districts. The program provides design assistance and offers a one-to-one
financial match for façade improvements of up to $5,000 per storefront and funding for
professional design assistance.
15
Technical Assistance Programs
Often small business owners need some degree of technical assistance to help them with managing
or growing their business. The needs of local entrepreneurs range from business planning, drawing
up financial statements, or navigating the city permitting process. The city works in collaboration
with several agencies to improve economic opportunity in Salem by providing technical assistance to
businesses.
Table 3: FY08 Economic Development Financial Summary
Program Description
CDBG
Funding
Available
Status
Salem Main
Streets Program
Provides commercial district revitalization
through organization, promotion, economic
restructuring and design.
$25,000.00
• $25,000 CDBG
spent
• 9 micro-enterprise
businesses assisted
Storefront
Improvement
Program
Provides design assistance and/or matching
funding up to $5,000 to business owners wishing
to improve the exterior façade of their business.
$92,170.72
• $29,596.09 CDBG
spent
• 5 storefronts
improved
Business Loan
Program
Provides three types of loans that fund
commercial rehabilitation, job creation or
retention and/or micro-enterprise assistance to
make our commercial areas vibrant.
$93,670.00
• $12,345.00 CDBG
spent
• 1 new business
assisted
Economic
Development
Program
Delivery
Costs associated with providing Economic
Development programs $40,490.89 • $37,490.89 CDBG
spent
Evaluation of Goals
In FY08, with our Small Business Financial Assistance Programs, we provided one new business
loan totaling $12,345 and had 3 active loans from the previous fiscal year (see Table 4). To date, the
active loans created a total of 29 jobs with 11 filled by low- to moderate-income individuals. In
addition, we provided assistance for the improvement of 5 storefronts.
The FY08 Action Plan projected assisting 20 microenterprise owners with Business Technical
Assistance. This included a proposal from Salem Harbor CDC for its Advancing Community
Business Program. Unfortunately, due to staffing shortages, the agency decided to withdraw its
funding request.
Through the Salem Main Streets Program, we assisted a total of 58 businesses of which 9 were
identified as micro-enterprises and 17 were new businesses. The new business activity resulted in
100 jobs being created. In addition, the Program held 2 technical assistance workshops, sponsored 3
events and co-sponsored or assisted with 11 events. They recruited 126 volunteers who contributed
665 hours. They also coordinated 3 ribbon cuttings and attended several more.
16
The DPCD also provides technical assistance through our Economic Development Manager, who
administers the City’s financial assistance programs and provides administration to the Salem
Redevelopment Authority, which oversees the Urban Renewal Area. Several significant
redevelopment projects within the Urban Renewal Area moved forward during FY08. Once
completed, they will add a total of 87 housing units and 15,000 square feet of commercial space.
During FY08, the DPCD collaborated with the Enterprise Center at Salem State College and the
Small Business Development Center to provide technical assistance to entrepreneurs with a focus on
those located within low/mod areas and the Urban Renewal Area. The DPCD’s Economic
Development Manager participated in “Ask the Expert”, one-on-one counseling sessions for
business owners to get free advice on a variety of topics.
The DPCD has also partnered with the Salem Chamber of Commerce to manage the city’s Creative
Economy Initiative which is focused on growing creative economy businesses.
In total, $104,431.09 was spent during the program period for economic development activities.
Table 4: Active Economic Development Loans in FY08
Type of Loan Project Amount of
Loan
Required
LMI Jobs
Creation
Total Jobs Created
Microenterprise
Assistance Susanna’s Custom Design $12,345 N/A -
Gulu Gulu Café $50,945* 2 7 jobs created – all
low/mod
Market Place Quilts $25,000* 1 Monitoring to be
completed in FY09 Special Economic
Development
River Wharf Realty
Trust/Bioengineering Group $135,925* 4 22 Total
4 LMI
Totals 4 $224,215 7 29 Total Jobs Created
11 LMI Jobs
Note: LMI is low- and moderate-income *Expended in a prior fiscal year
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NEIGHBORHOOD IMPROVEMENTS
The City of Salem is committed to undertaking the
infrastructure and public facility improvements we
all depend on to make our city the livable
community that it is. By continually investing in
neighborhoods, Salem aspires to be the best place it
can be for people to live and work.
Due to the size and scope of these types of
activities, some require multi-year funding, as well
as a few years to plan, permit and complete the
project. To that end, a number of our
Neighborhood Improvement Projects are still in the
planning, permitting or bidding stages. The
following table outlines the current neighborhood
improvement projects and their status at the close
of FY08. Neighborhood Improvement Projects can only take place in those areas eligible for
CDBG funding (see Appendix for map); therefore all the projects listed are designated for these
target neighborhoods.
Workers undertaking construction at the Witch House as
part of a handicapped accessibility project.
Table 5: FY08 Neighborhood Improvement Financial Summary
Activity CDBG Funds
Available
CDBG Funds
Spent Status
Loring Avenue Firehouse
Improvements $36,315.52 $36,315.52 Complete
South Harbor Garage site
environmental $16,418.09 $16,418.09 Complete
Tree Planting Program $5,492.00 $5,492.00 Complete
Congress/Peabody/Ward Intersection
Improvement $101,829.08 $18,312.66 Underway
Peabody Street Park $68,934.41 $13,961.80 Underway
Witch House Accessibility
Improvements $25,699.62 $8,070.03 Underway
Knights of Columbus handicapped
accessible restroom $7,735.00 $0.00 Underway
South River Harbor Walk $195,153.50 $11,929.61 Underway
Downtown Redevelopment Project
(signage) $80,313.89 $30,313.89 Underway
Neighborhood Street Improvements
(Sidewalks, Curbcuts, paving &
crosswalks)
$115,184.60 $32,778.22 Ongoing
Section 108 Loan Payments – South
Harbor Garage $46,518.50 $46,518.50 Ongoing
Essex Street Pedestrian Mall
Improvements (i.e. benches, trash
receptacles)
$38,586.85 $0.00 Ongoing
City Hall Elevator $48,576.42 $48,576.42 On hold
18
Activity CDBG Funds
Available
CDBG Funds
Spent Status
Congress/Derby Pedestrian Lights $107,865.70 $0.00 To begin in FY09
High Street Playground Improvements $9,730.77 $0.00 To be re-bid in FY09
Harbor and Lafayette Streets
Pedestrian Improvements $153,032.520 $0.00
Lafayette Park Redesign $98,215.05 $282.20
To be redesigned as part of
the St. Joseph’s complex
redevelopment.
1 Harrison Ave. (community center) n/a (25,000.00)Funds returned to City from
Salem Harbor CDC
Evaluation of Goals
During the program period, we continued to work on important neighborhood projects, and spent a
total of $243,968.94, including program delivery costs, toward meeting the goals in the FY08 Action
Plan and 5 year Consolidated Plan.
26 trees were planted; although not meeting the FY08 Action Plan goal of 40, with a 3 year total of
201, we are still well on our way to meeting the Consolidated Plan goal of 275 trees.
In addition, 12 street/sidewalk improvements were undertaken. With a three year total of 29, we
have exceeded the Consolidated Plan goal of 20.
The Consolidated Plan goals for improvements to one fire station was met by completing the Loring
Avenue fire station improvements. Several additional activities are underway or in the planning
stages.
19
PLANNING & ADMINISTRATION
In the Consolidated Plan, our priority goals are to
provide for the administrative costs associated with
the management of the Salem Community
Development Block Grant program and to develop
the planning resources and documents necessary to
undertake program activities.
C I T Y O F S A L E M
Neighborhood Preservation District Study
Where are di stri cts being consider ed?
z National Register
Districts
z Local Hi storic Districts
z Other Protected
Areas
z Areas Previously R ecommended as
di stri cts
z Add it ional A rea s
considered in this study
During FY08, we completed a tourism management
study utilizing a matching fund grant from the
Massachusetts Cultural Council. We also completed
a historic structures report and long term
maintenance and improvement study for the Witch
House. Underway is a Neighborhood Architectural
Conservation District study utilizing a matching
fund Survey & Planning Grant from Massachusetts
Historical Commission.
PowerPoint slide for public presentation of
Neighborhood Preservation District Study
In FY08, we spent a total of $235,275.28 in Planning and Administration for planning studies
completed in the fiscal year and administration expenses necessary to carry out our programs. As
stated previously, we were able to remain under the administrative spending cap of 20 percent.
Table 7: FY08 Planning & Administration Financial Summary
Activity CDBG Funds
Available
CDBG Funds
Spent
Tourism Management Study $5,000.00 $4,800.00
Neighborhood Conservation District Study $12,000.00 $10,000.00
Witch House Study $7,000.00 $7,000.00
City Hall Renovation Feasibility Study $20,000.00 $0.00
General Administration - Salary $176,910.48 $159,013.44
General Administration - Benefits $43,229.42 $43,229.42
General Administration - Non-salary $11,060.10 $11,060.10
20
OTHER ACTIONS
Barriers to Affordable Housing
The 5-Year Consolidated Plan outlines several barriers to housing affordability in Salem: a shortage
of land, the lack of regulatory tools to require or encourage affordable housing in new
developments, the lack of resources to preserve existing affordable units, an economy imbalanced by
lower-wage jobs, and local government’s dependence on the property tax to finance City services.
Like other communities, Salem is not in control of all of these barriers and as a result, its ability to
solve them is constrained by financial resources and legal requirements. However, through its
efforts to preserve and increase the supply of affordable housing through its Housing Rehabilitation
Loan Program, First Time Homebuyer and ADDI Programs and Affordable Development
Programs the city is able to address some of these barriers.
Lead-Based Paint Hazard Reduction
In cooperation with the State of Massachusetts and our local municipal departments, the City of
Salem DPCD works to decrease the number of housing units containing lead-based paint hazards.
The Salem Board of Health disseminates information regarding the proper disclosure of lead
hazards upon notification of the sale or rental of a housing unit and inspects rental units for lead
paint hazards. In Salem, a landlord is required to obtain a Certificate of Fitness inspection when an
apartment becomes vacant. Board of Health personnel conduct this inspection enforcing the State
Sanitary Code for Housing. When the information is sent to the landlord prior to this inspection, a
letter describing the Federal law is included, as is a copy of the Tenant Notification Form in English and
Spanish. Also, the Board of Health periodically sends notification of regulations regarding lead-
based paint to area realtors.
In addition, Board of Health personnel are trained Lead Determinators. Should the Board receive a
call from a tenant who is concerned that there may be lead-based paint in his/her apartment,
potentially affecting their children under six years of age, the Board is able to send out a Sanitarian
to conduct a Lead Determination. If lead paint is detected, an order is sent to the landlord requiring
compliance with the State Lead Law. The Board ensures compliance with the order. The State Lead
Program is notified of the results of all Determinations.
The city, through the DPCD, actively works to reduce lead-paint hazards in pre-1978 housing
occupied by lower-income households through the City of Salem’s Housing Rehabilitation Loan
Program, and/or MassHousing’s Get the Lead Out Program. Through these programs, the city
provides loan funds for qualified applicants for lead testing, hazard reduction and abatement
activities. Lead-based paint hazard control measures undertaken are consistent with the federal Title
X requirements and State lead based paint regulations.
Finally, all participants in the First-Time Homebuyer Program are given a copy of the EPA brochure
Protecting your Family from Lead in Your Home.
Anti-Poverty Strategy
The 5-Year Consolidated Plan includes the City of Salem’s Anti-Poverty Strategy which describes
programs and policies the City is supporting in its efforts to reduce the number of households living
below the poverty level. Some public service agency representatives state that Salem residents in
poverty stay in poverty because they lack adequate skills for better employment opportunities. As
21
result, they work multiple jobs to pay for housing, utilities, transportation expenses, and childcare.
Providing adequate job training and educational opportunities will enable them to enter the
workforce at a more competitive level.
Salem uses CDBG and other funds to pursue an anti-poverty strategy that is carried out by the City
and a variety of social service subrecipients. The City’s anti-poverty strategy is comprehensive and it
consists of four components: education, job training, affordable housing and social services. Each
of these components are described at length in the recently completed 5-Year Consolidated Plan.
Managing the Process and Institutional Structure
The DPCD administers the City of Salem’s Community Development Program as well as the
formula funding received by the North Shore HOME Consortium for which the City of Peabody is
the lead agency. Salem’s programs are managed and monitored by the Assistant Community
Development Director under the direction of the Director of Planning and Community
Development.
Salem’s housing programs are administered by the DPCD Housing Coordinator under the direction
of the Director of Planning and Community Development and Assistant Community Development
Director. In addition, certain housing activities are administered by local non-profit agencies,
CHDO’s and/or CDC’s. Private lenders provide financing that leverages funds provided through
many of the city’s housing activities.
Each year, the City of Salem issues a Request for Proposals to nonprofit organizations that offer
social service or economic development programs. CDBG funds are then awarded to organizations
that demonstrate programmatic needs and the capacity to administer the proposed program. The
city’s Assistant Community Development Director coordinates the management of the public
service subcontracts and the Economic Development Planner coordinates the management of the
economic development subcontracts.
City departments undertake certain CDBG-funded activities, such as the tree planting program,
sidewalk replacement, park improvements, street paving and curbcut installation. These
departments may subcontract work under public bidding procedures and provide requests for
reimbursement and other required documentation to the DPCD.
The remaining activities are generally carried out by DPCD staff and may include the hiring of
consultants or other private businesses through established municipal purchasing procedures.
Salem’s CDBG program delivery system is audited yearly through the city’s auditing firm, as well as
through periodic reviews and monitoring by HUD staff. Recommendations are promptly
implemented. The DPCD continuously works to improve upon its methods and procedures for the
administration of its programs. In addition, all of our housing and economic development program
applications, as well as the Consolidated Plan, Action Plan and CAPER are available on line.
Coordination with Other Organizations
Salem Housing Authority: Although, the city does not currently use CDBG funds to assist the
Salem Housing Authority (SHA), the DPCD coordinates with the SHA to address the housing
needs of Salem’s lower-income residents. While developing its Consolidated Plan, the city consulted
with the SHA to determine the agency’s most pressing needs. In addition, SHA’s Comprehensive
22
Plan must take into account the findings of the Consolidated Plan and City of Salem must certify
that the documents are consistent.
The Mayor appoints four of the five SHA board members, one of whom must be a public housing
tenant and one of whom must be a member of organized labor. Proposed development sites or
demolition or disposition of existing public housing developments must go through established
regulatory procedures administered by the Building Department, Board of Appeal, Planning Board,
etc.
The SHA serves over 900 participants. The Authority receives over $9 million in federal funding for
its Section 8 Housing Choice Voucher Program and its Federal Public Housing Program, as well as
earning state subsidies. The SHA continues its mission of preserving and maintaining its stock of
decent safe and sanitary public housing for the residents of Salem.
The SHA has an established Resident Advisory Board to encourage public and subsidy residents to
become more involved in management.
Other Organizations: In addition to the SHA, the City of Salem works cooperatively with private
housing providers and private and governmental health, mental health, and service agencies and
other interested parties to implement its 5-Year Consolidated Plan. To this end, the city administers
Salem H.O.P.E. (Human Organization Partnership Effort), a networking group of human service
agencies that serve Salem residents. It is a free forum for agencies to learn about the services being
provided by other agencies in order to fill in gaps, coordinate efforts and avoid the duplication of
services. All human service agency representatives are invited to attend the quarterly Steering
Committee breakfast meetings held at rotating agency locations. Through this program, agency
representatives are introduced to each other and exchange information, announcements and
updates. The DPCD is responsible for the organization and administration of this effort. The
strength in the delivery system of nonprofit services is in the networking, collaboration and
coordination among the agencies.
The city also works directly with nonprofit agencies to administer social service activities. Agencies
are urged to apply to the city for CDBG public services funding to undertake priority programs
outlined in the Consolidated Plan. Additionally, the City of Salem cooperates and coordinates with
other public agencies (and funding sources) to undertake specific activities. Examples include
MHFA’s Get the Lead Out Program and Mass Housing Partnership’s Soft Second Mortgage
Program.
The City of Salem works with the City of Peabody, the lead community for the North Shore HOME
Consortium, to coordinate the implementation of its HOME and ADDI funded programs. Salem
also works with local CHDO’s and CDC's to carry out prioritized activities.
The City of Salem will continue to coordinate and communicate with other municipal departments,
local and regional agencies, and public and private housing organizations. The DPCD will maintain
responsibility for coordinating the Salem H.O.P.E. effort and will communicate regularly with
subrecipients of federal funds who are subcontracted to deliver much-needed social services. We
will continue to work with the Salem Housing Authority (SHA), nonprofit organizations, and
housing developers to produce affordable housing in the City. The strength of these relationships is
beneficial in streamlining housing development and leveraging additional funds for projects.
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Monitoring
An overarching goal with all activities undertaken with CDBG and HOME funds is to ensure that
they meet our program objectives. DPCD monitors all projects to ensure compliance with
applicable Federal, State and local regulations. As part of ongoing monitoring, public service
subrecipients submit monthly reports that include demographic information on clients served and
details on programmatic accomplishments. In addition, public service subrecipients are monitored
on-site each year (exceptions are noted in the Monitoring Plan, which is located in 5-Year
Consolidated Plan). Payments to agencies are made on a reimbursement basis following receipt of all
requisite documentation to ensure compliance with expenditure requirements. Affordable housing
and economic development projects undertaken with CDBG or HOME funds are monitored
annually for compliance with affordability, job creation, and other programmatic requirements.
Students get computer job training at
NSCAP’s Salem Cyberspace program.
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SUMMARY/PROGRAM EVALUATION/CONCLUSIONS
Overall, we made significant progress toward meeting the goals of our 5-year Consolidated Plan and
FY08 Action Plan. We also continued to meet HUD required funding and expenditure caps and
timeliness requirements. The following is a summary of major activities accomplished in FY08:
• 7 families were assisted to purchase their first home in Salem of which 4 were also assisted
with American Dream Downpayment Initiative funds;
• 7 housing units were renovated, with an additional 3 units underway;
• 3 units were deleaded with MA Get the Lead Out funding;
• 1 Point Neighborhood property assisted with funds toward acquisition for conversion to 2
affordable housing units;
• 15 units of affordable housing completed at 50 Palmer Street;
• 22 units of affordable housing completed for chronically homeless individuals;
• 1 previously CDBG-assisted home saved from foreclosure through efforts of DPCD staff to
connect the homeowner with a lender willing finance a new mortgage;
• 39 households received assistance with first/last month’s rent and/or security deposits;
• 31 social service programs assisted 14,238 persons, including 1,336 youth and 663 seniors;
• 5 commercial storefronts improved;
• 1 new business provided with economic development loan;
• Salem Main Streets Program assisted 58 businesses including 9 identified micro-enterprises
and 17 new businesses, resulting in 100 jobs being created. They also provided two technical
assistance workshops, sponsored 3 events and co-sponsored or assisted with 11 events and
recruited 126 volunteers who contributed 665 hours;
• Handicapped restroom at Loring Avenue firehouse installed;
• South Harbor Garage environment work completed;
• 26 trees planted;
• Tourism management study completed;
• Witch House historic structures report and long-term maintenance and improvement study
completed;
• Sidewalk improvements completed at Washington, Summer, N. Pine, Charles, Summit,
Pickman, Cypress, High, Hazel and Lafayette Streets, Raymond Terrace and at 50 Palmer
Street; and
• Street paving undertaken on Congress Street.
In summary, we are proud of the accomplishments made in FY08. In addition to completed
projects, dozens of additional activities are underway and continue to make progress. The City
continues to make progress in all of our program areas toward meeting the goals and objectives laid
out in the 5-Year Consolidated Plan and FY08 Action Plan. We continue to work toward
completing older and multi-year projects. We encourage feedback from our citizens in order to
improve our efforts to provide decent, safe and sanitary housing, improved community facilities and
infrastructure, needed human services and expanded economic opportunities, that all work toward
revitalizing our neighborhoods and improving our living environment.
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SUPPLEMENTARY NARRATIVES
In this section, as part of our reporting requirements for HUD, we provide a supplementary
narrative that answers specific questions regarding our program expenditures and activities.
Use of CDBG Funds
In FY08, CDBG expenditures fully complied with the goals and objectives outlined in the FY08
Action Plan and 5-Year Consolidated Plan. More detailed information on the use of these funds can
be found in the Assessment of Five Year Goals and Objectives section of this report.
Changes to Program Objectives
During the past fiscal year, we made no changes to the program objectives laid out in the FY08
Action Plan and 5-Year Consolidated Plan. As typical each year, during the program period it is
necessary to adjust funds committed to specific activities. Usually, this is done within the same
general category (i.e. $20,000 was taken from Salem Harbor CDC (withdrawn by agency) and put
into the Storefront Improvement Program). Other times a project will come in under budget and its
remaining funds are reprogrammed, or, an activity will no longer be necessary or feasible and the
funds will be reprogrammed. A specific example of a funding adjustment is the City Hall elevator,
which had been removed from the list of activities due to lack of funding in FY06 and then
reinstated in FY07. However, because of the necessity to undertake a complete study of renovation
needs at City Hall, this project has been moved to FY10 and the funds reprogrammed to a new
activity – the installation of traffic signals (including pedestrian crossing) at the intersection of Derby
and Congress Streets slated to be undertaken in FY09.
Geographic Distribution and Location of Investments
Some programs and activities undertaken are available on a citywide basis to income eligible
households. Others are targeted to particular neighborhoods with concentrations of low- and
moderate-income households or to programs that benefit specific populations such as senior
citizens, disabled persons and minorities.
When prioritizing activities, the City pays special attention to those low- and moderate-income
neighborhoods where the greatest needs have been identified and whose public facilities and
infrastructure are in the worst condition. In accordance with CDBG regulation, specific activities,
such as street, sidewalk and playground improvements can only be undertaken in the low- to
moderate-income neighborhoods or the Urban Renewal Districts, with the exception of handicap
access improvements which can be undertaken city-wide.
However, recognizing that needs are not solely located in distressed neighborhoods, we offer
programs that may be accessed by people living outside these areas. For example, the Housing
Rehabilitation Loan Program, First Time Homebuyer Downpayment Assistance Program, and the
Small Business Loan Program are offered citywide to allow any low to moderate-income individual
or household to take advantage of their availability. A map indication of geographic distribution is
located in the Appendix.
Compliance with Planned Actions
In FY08, the City of Salem pursued all resources indicated in its FY08 Action Plan.
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Compliance with National Objectives
All CDBG funds budgeted and spent were exclusively focused on furthering the three National
Objectives of the CDBG program. The City also fully complied with overall benefit certification.
Relocation
In FY08, no CDBG funds were spent on projects that required the permanent displacement and/or
relocation of people, businesses, or organizations from occupied property. The program did
provide temporary location assistance through the Housing Rehabilitation Loan Program, per the
DPCD’s current Relocation Policy.
Economic Development Activities
Economic development activities are discussed in the Assessment of Five-Year Goals and
Objectives, Economic Development section of this report.
Limited Clientele Activities
In FY08, the City of Salem funded several activities that served limited clienteles. For example,
funds were expended on 31 public service contracts that primarily served low- and moderate-income
persons. Through the use of family-size/proof of income documentation, it was determined that
more than 51 percent of the people served by these projects met applicable criteria for low- or
moderate-income status. Those activities that were not Limited Clientele Activities were undertaken
in low- to moderate-income designated areas or in one of the designated Urban Renewal Areas.
Program Income
The Financial Summary section of this report documents total program income for the Salem
CDBG Program in FY08. The total program income was $136,218.37.
Rehabilitation Activities
The City of Salem sought to preserve affordable housing in the city by assisting low- and moderate-
income homeowners in rehabilitating their homes through the Housing Rehabilitation Loan
Program. The activities carried out during FY08 are described in the Assessment of Goals and
Objectives, Affordable Housing section of this report.
HUD Neighborhood Revitalization Strategies
Salem had no HUD approved Neighborhood Revitalization Strategies in place during FY08.
Performance Measurement
The DPCD uses several strategies for performance measurement and continues to review and
enhance its performance measurement system. Specifically, Salem has implemented a performance
measurement system in the following program areas:
Public Services - Public service contracts include performance measurement indicators and
subcontracted social service agencies are required to report on performance indicators either
monthly or at the end of the program year. The FY08 CAPER outlines the effectiveness of those
measurements as provided in the Public Services Section in Table 2. Internally, a spreadsheet is
maintained which tracks the receipt of monthly reports and the status of on-site monitorings. In
FY09, public service agencies will be required to submit reimbursement requests which are tied to
pre-determined benchmarks or performance outcomes.
27
Housing Programs - Housing rehabilitation program staff track each project in a formal system that
details project status and loan details. In addition, the staff maintain a comprehensive written
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 during the
duration of the affordability period.
Economic Development – The Economic Development Program Manager 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, DPCD
has a Monitoring Plan in place, that allows the city to track whether long-term goals are being met.
As detailed in the Managing the Process and Institutional Structure section of this document, the
city manages its programs to ensure compliance with identified goals.
HOME & ADDI Program
As stated previously, the City of Salem is a member of the North Shore HOME Consortium. The
City of Peabody administers the Consortium and maintains all documentation regarding Salem’s
participation.
During FY08, the City of Salem spent $200,313.03 in HOME funds and $36,000 in ADDI funds.
Funds were used to help fund the Rental Downpayment Assistance Programs administered by the
North Shore Community Action Program, Help for Abused Women and their Children and the
Salvation Army and toward the 50 Palmer Street, Salem Mission Seeds of Hope and 1 Harrison
Avenue projects. The accomplishments of these projects can be found in the reports submitted by
the City of Peabody on behalf of the Consortium.
In June, 2007, the Consortium voted to adopt the federal Energy Star Standards. The
implementation of this new policy for the use of HOME funds began on October 1st. All new
HOME-assisted units are required to be certified as Energy Star compliant whenever either new
construction is involved or where the rehabilitation of an existing structure involves the gutting of
the structure to the bare walls.
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FUNDS LEVERAGED
In order to maximize the benefits achieved by the Salem Community Development Block Grant
Program and in order to make projects feasible, CDBG and HOME funds often must be combined
with other funding sources. The following chart summarizes the amount of federal dollars spent
during FY08 and the funds leveraged through these expenditures.
Table 8: FY08 Funds Leveraged
Program CDBG
Expenditures
HOME & ADDI
Expenditures
Funds from Other
Sources
Housing Programs $306,549 $236,313 $6,490,464
Public Services $186,297 -$3,593,932
Economic Development $104,432 -$57,258
Neighborhood Improvements $243,969 -$1,894,800
Planning & Administration $235,275 -$308,773
TOTAL FY08 $1,076,522 $236,313 $12,345,227
TOTAL FUNDS LEVERAGED PER HUD DOLLAR IN FY08: $9.40
Listed below is a summary of the funds leveraged and reported in the table above:
Housing
• For the First Time Homebuyer Program, homebuyers provide matching funds as well as
obtained financing from a primary lender, which amounted to a total leveraged of $1,738,331.
• For 50 Palmer Street affordable housing, along with using $321,995 in the City’s HOME funds,
Salem Harbor CDC is leveraging $4,250,000 in N. S. HOME Consortium, Affordable Housing
Trust Fund and Housing Stabilization Funds.
• The rehabilitation program leveraged $54,680.05 in MassHousing’s Get The Lead Out funds.
• Along with Salem’s CDBG and HOME funds, Habitat for Humanity’s housing project at 1
Harrison Avenue is expected to leverage $40,000 in North Shore HOME Consortium’s HOME
funds and $75,258 in private funds.
• Health & Education Services’ fire suppression project is estimated to leverage $10,200 in private
funds.
Public Services:
• Most of the public service agencies funded use CDBG funds as a portion of their overall activity
budgets. Based on leveraged funds reports provided at the end of the contract or on the project
budgets submitted in the initial funding request proposals, the estimated amount leveraged is
$3,593,932.
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Economic Development:
• The Salem Main Streets Program leveraged $25,750 in private funds, $5,000 in grants and $5,316
in program income.
• This year’s Business Loan Program leveraged at least $2,000 in private funds.
• The Storefront Improvement Program leveraged $19,192 in private dollars.
Neighborhood Improvements:
• CDBG funds for the South River Harbor Park project are used as a match toward $1,220,000 in
design and construction grant funds from the State Seaport Advisory Council.
• The Peabody Street Park is leveraging $200,000 from the Environmental Protection Agency and
$474,800 in Urban Self Help grant funds.
Planning & Administration:
• For the Neighborhood Conservation District Study, CDBG funds leveraged $18,000 from the
Massachusetts Historical Commission’s Survey & Planning Grant Fund Program.
• For the Transportation Management Study, CDBG funds leveraged $5,000 from the
Massachusetts Cultural Council.
• For the Witch House Study, CDBG funds leveraged a $7,000 grant from the Essex National
Heritage Commission.
• Planning and administration funds leveraged $235,914.25 in City funds and $42,858.62 in State
Seaport Advisory Council funds for salaries, advertising, office supplies, photography, dues and
subscriptions, reproductions and in-state travel.
Note: Leveraged funds for multi-year projects may be repeated within more than one year’s
CAPERs. Leveraged funds are only included for projects of which CDBG funds were expended
during the fiscal year
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CITIZEN PARTICIPATION SUMMARY
The goals and purpose of the Citizen Participation Plan is to encourage residents, agencies, and
other interested parties to participate in the development of our 5-Year Consolidated Plan and
Annual Action Plans and to comment on our accomplishments. The strength of our programs
comes from the high number of volunteers that inform our decisions.
The Citizen Participation Plan included in the 5-Year Consolidated Plan is the framework we used
to solicit public comment as well as provide guidance on our response to citizens’ comments on our
programs throughout the year.
Public Comment Period
Copies of the FY08 CAPER were made available to the public throughout the 15-day comment
period and every effort was made to solicit citizens’ comments including posting the availability of
the report in the Salem Evening News, the City Clerk’s Office, Public Library, Salem Housing
Authority, the City Hall Annex and on the City’s website. Copies were available for review at the
DPCD, Salem Public Library and Salem Housing Authority and on the City’s website (a copy of
which was available for download). There were no comments received.
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APPENDIX
Financial Summary
Tables & Spreadsheets (These are not included in the digital PDF. Please contact the DPCD for copies.)
Comparison Table - Proposed Vs. Actual Accomplishments (IDIS PR03)
Progress of Consolidated Plan 5-Year Goals
IDIS Report PR23 Excerpt
Total CDBG Beneficiaries by Racial/Ethnic Category
CDBG Beneficiaries by Income Category
Maps
CITY OF SALEM – FINANCIAL SUMMARY
FY08 Consolidated Annual Performance and Evaluation Report
1 Summary of CDBG Resources
2 FY07 End of Year LOC Balance $ 1,375,651.14
3 FY08 CDBG Entitlement $ 1,161,440.00
4 Program Income, FY08 $ 136,218.37*
5 Total CDBG funds available for use in FY08 $ 2,673,309.51
6 Summary of CDBG Expenditures
7 Affordable Housing $ 306,549.32
8 Public Services $ 186,297.23
9 Neighborhood Improvements $ 197,450.44
10 Economic Development $ 104,431.98
11 Program Administration $ 235,275.28
12 Section 108 Repayment (in CAPER narratives under neighborhood improvements) $ 46,518.50
13 Total Expenditures $ $1,076,522.75
14 Year-End CDBG Resources
15 Total CDBG funds available for use in FY08 $ 2,673,309.51
16 Total Expenditures in FY08 $ 1,076,522.75
17 Unexpended Balance (CDBG Budget) $ 1,596,786.76
18 *LOC = Balance of Funds in City’s Letter of Credit with U.S. Treasury
19 Low/Mod Credit
20 Total FY08 CDBG Expenditures $ 1,076,522.75
21 Total for Program Administration $ 235,275.28
22 Total for Section 108 Repayments $ 46,518.50
23 Total subject to Low/Mod Benefit Calculation $ 794,728.97
24 L/M Credit for multi-unit housing $ 0.00
25 L/M Credit for other activities $ 616,515.62
26 Percent of benefit to low/mod persons 77.58%
27 Public Services Cap Calculation
28 Net obligations for FY07 Public Services Act. $ 194,399.13
29 FY08 Entitlement + FY07 Program Income $ 1,297,709.90
30 Percent obligated for FY08 PS Activities 14.98%
FINANCIAL SUMMARY
31 Planning and Program Administration Cap Calculation
32 FY 08 Entitlement + FY08 Program Income $ 1,297,658.37
33 Net Obligations for Planning/Admin. Activities $ 241,275.28
34 Percent of funds expended 18.59%
35 HOME Summary
36 HOME Project Expenditures $ 123,687.03
37 Salem HOME Administration $ 9,631.00
38 Total HOME Expenditures $ $133,318.03
39 ADDI Summary
40 ADDI Project Expenditures $ 36,000.00
41 Total ADDI Expenditures $ 36,000.00
*Note: Program income of $286.68 entered into IDIS in FY08 was reported in the FY07 CAPER. Program
income of $235.15 entered into IDIS in FY09 is being reported in this CAPER (FY08). Therefore the net
adjustment to compute total program income is -$51.53.
MAPS
The following maps follow this page on the hard copy of this report.
• Low to Moderate Income Areas with Urban Renewal (SRA) boundaries and Ward
boundaries. For a digital version of the map go to
http://salem.com/Pages/SalemMA_WebDocs/lma.pdf.
• Geographic Distribution of Entitlement Funds Expended FY08. For a digital version of the
map go to http://salem.com/Pages/salemma_dpcd/studiesreports/cdbgexpendmap08.pdf