CDBG FY09 CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORTCONSOLIDATED ANNUAL PERFORMANCE
AND EVALUATION REPORT
CITY OF SALEM, MASSACHUSETTS
Fiscal Year 2009
July 1, 2008 to June 30, 2009
Kimberley Driscoll, Mayor
Lynn Goonin Duncan, AICP, DPCD Director
Jane A. Guy, Assistant Community Development Director
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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 2009, we expended over 1.5 million dollars in CDBG funds 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 $76,091.35 in HOME funds and $125,615.00
in American Dream Downpayment Initiative (ADDI) funds.
The FY09 Consolidated Annual Performance and Evaluation Report (CAPER) provides an analysis
of the fourth fiscal year - July 1, 2008 through June 30, 2009 - 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 FY09 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 a summary of our expenditures. It provides
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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
supplementary narratives that provides answers to these questions.
Funds Leveraged – Another measure of the success of our program is the funds we leverage with
our federal grants. This section includes a table outlining the funds leveraged from CDBG,
HOME and ADDI.
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 – 9/24/09
TABLE OF CONTENTS
INTRODUCTION ..................................................................................................................................................1
Assessment of Goals and Objectives..............................................................................................................3
Affordable Housing Programs................................................................................................................4
Public Services.........................................................................................................................................13
Economic Development........................................................................................................................17
Neighborhood Improvements ..............................................................................................................20
Planning & Administration....................................................................................................................22
Other Actions..........................................................................................................................................23
Summary/Program Evaluation/Conclusions.....................................................................................27
Supplementary Narratives...............................................................................................................................29
Funds Leveraged..............................................................................................................................................33
Citizen Participation Summary ......................................................................................................................35
Appendix
Financial Summary
Progress of Consolidated Plan 5-Year Goals
IDIS PR03 Excerpts - Persons Served by Income
IDIS Report PR23 Excerpts
Total CDBG Beneficiaries by Racial/Ethnic Category
CDBG Beneficiaries by Income Category
Maps
Cover photo: Salem’s newly re-established Farmer’s Market, photo courtesy of Salem Main Streets.
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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 FY09 CAPER provides an analysis of the
fourth fiscal year of the 5-Year Consolidated Plan — July 1, 2008 through June 30, 2009.
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-income 1 .
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.
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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.
ASSESSMENT OF GOALS AND OBJECTIVES
During FY09, the DPCD continued to make significant progress toward meeting the goals and
objectives laid out in the 5-Year Consolidated Plan and FY09 Action Plan. The CDBG entitlement
funds from HUD for the fiscal year was $1,127,314 and program income received during the
program year was $147,900.99. Our HOME funding allocation was $185,050. Salem is also under
contract with the North Shore HOME Consortium to assist first time homebuyers utilizing ADDI
funds. 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 FY09, we expended $1,533,021.15 in CDBG funds. Expenditures were divided into five program
areas — Affordable Housing, Neighborhood Improvements, Planning & Administration, Public
Services and Economic Development. In FY09, we met all timeliness requirements and program
expenditures were consistent with our 5-Year Consolidated Plan and FY09 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 FY09 and prior year carried over funds+/- any adjustments
made during the year.
HOME & ADDI Expenditures
In addition to CDBG funds, the DPCD also spent $98,310.35 in HOME funds to undertake
affordable housing activities and $117,306.00 in ADDI funds for additional assistance to income-
eligible first-time homebuyers. When added to the $412,869.15 spent in CDBG funds for affordable
housing programs, the total amount spent for housing programs is $628,485.50 – 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 the specific accomplishments of HOME and ADDI activities are reported
to HUD through the Consortium by the City of Peabody. However, a summary of our activities are
reported throughout this document.
Program Accomplishments
Overall, we were on target in
meeting our Consolidated Plan
goals and objectives. The
following sections provide a
summary of accomplishments
for each of our program areas
and evaluate our progress based
on the needs outlined in the 5
Year Consolidated Plan and
FY09 Action Plan. The final
section provides an overall
evaluation of our programs.
Fig. 1 FY09 Spending by Category,
as a Percentage of Total CDBG, HOME & ADDI Expenditures
FY08 CDBG, HOME & ADDI Expenditures by Category
Neighborhood
Improvements
26%
Affordable Housing
37%
Economic
Development
12%
Public Services
10%
Planning &
Administration
15%
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AFFORDABLE HOUSING PROGRAMS
Due to the high cost of housing in Massachusetts and the
high rate of foreclosures, 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 FY09, the City of Salem spent $628,485.50 in CDBG,
HOME and ADDI funds on affordable housing projects
and programs. The project accomplishments attained with these funds during FY09 are described in
the following table.
Improvements for fire suppression were undertaken at
this home for persons with chronic mental illness.
Table 1: FY09 Housing Financial Summary
Project Project Description Funding Available 2 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. Note: ADDI
funds may also assist income-
eligible households purchasing a
home in any N. S. HOME
Consortium community.
$111,715.27 CDBG
$406,815 ADDI
$57,805.00 CDBG funds
spent
$116,365.00 ADDI funds
spent
9 families assisted with
CDBG (with 4 also
receiving ADDI funds)
9 non-Salem families assisted
with only ADDI funds
20 total units (11 Salem)
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.
$421,044.51
CDBG
$195,522.44 CDBG funds
spent
8 owners/completed projects
(9 units assisted, of which 2
were also deleaded with
Get the Lead Out funds)
2 additional projects
Health &
Education
Services
Water supply upgrade for fire
suppression in housing for persons
with chronic mental illness.
$35,477.50 CDBG
$35,477.50 CDBG funds
spent
1 housing unit (for 17
persons) upgraded
2 “Funding available” indicates the total funds available during the fiscal year, including FY09 and prior year carried over funds+/-
any adjustments made during the year.
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Project Project Description Funding Available Status
$131,828 in HOME
Contracts
$45,858.35 in HOME funds
spent
56 families assisted thru
Rental Downpayment
Program Assistance
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.
$43,200 was also provided from the City of Salem’s
HOME allocation and added to the N. S. HOME
Consortium’s direct contract with HAWC. The City of
Peabody will report on these funds.
Housing
Program
Delivery
Costs associated with providing
rehabilitation programs &
inspectional services.
$127,514.21 CDBG,
$9,252.00 HOME
$941.00 ADDI
$102,964.21 in CDBG funds
& $9,252.00 in HOME &
$941.00 in ADDI funds for
housing program delivery
$21,100 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 FY09 Action Plan. The following discusses 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 in the planning stages. CDBG funds helped Habitat for
Humanity to acquire 1 Harrison Avenue for which they created 2 units of homeownership
housing that will be affordable for 30 years (rehabilitation of the property is complete and the
new homeowners have moved in).
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 to 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 contributed $25,000 to Salem Lafayette Development
as predevelopment funding for the St. Joseph’s Church redevelopment.
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On April 7, 2009, the Affordable Housing Trust Fund Board of Trustees sponsored a Housing
Summit on the challenges and opportunities in the current housing market. The forum was a
community-wide dialogue between regional and local planners, for-profit and non-profit
developers, realtors, lenders, social service workers, and political officials. Panelists included
Kimberley Driscoll, Mayor of Salem; Aaron Gornstein, Executive Director of the Citizens’
Housing and Planning Association; Sam Cleaves, Regional Planner from the Metropolitan Area
Planning Council; David Kres, President of the North Shore Association of REALTORS; and
moderator Jennifer Raitt, Chair of the City of Salem’s Affordable Housing Trust Fund.
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
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 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, in July 2007, the Preservation of Affordable Housing (POAH) purchased
Fairweather Apartments which will ensure the affordability of these 127 units.
Funds for affordable housing are also typically set aside each year to provide resources for the
city, or a nonprofit partner, which could be used to acquire abandoned, derelict properties for
the creation of affordable housing.
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. Housing staff are contacting and offering
assistance to families that may be threatened with the possibility of foreclosure and are
maintaining a tracking list of all pre-foreclosure, foreclosure and bank-owned properties in the
city. In addition, we are mailing information on tenant’s rights regarding displacement to renters
in buildings that are on the foreclosure tracking list.
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The City continues to encourage first time homebuyers to complete a Certified homebuyer
education course, such as the one funded with CDBG funds through Community Teamwork,
Inc.
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.
Vacancies as a Result of Foreclosure
Between July 1, 2008 and June 30, 2009, seventy-five (75) Salem properties were auctioned due
to foreclosure. As of June 30, 2009, an additional fifty-eight (58) 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(s). In addition, foreclosure can result in vacant 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 collaborative efforts between the Health Inspector, Fire chief,
Building Inspector, City Solicitor and Housing Coordinator and has mapped those properties in
GIS. Abutters of bank-owned properties and those about to be auctioned are sent letters asking
them to be observant and report problems.
The City’s First Time Homebuyer 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.
An important part of the City’s recovery and revitalization efforts is helping to re-occupy and
repair foreclosed properties. From July through December 2008, the City helped six
homebuyers to purchase bank-owned properties with approximately $56,000 in downpayment
assistance. In addition, the City has aided homebuyers and investors who have purchased
foreclosed properties in making repairs through the Housing Rehabilitation Loan Program.
Currently, the City is assisting three such properties for an investment of approximately
$100,000 in CDBG funds. As part of the program, any renovated rental units are restricted to
affordable rents and must be occupied by low- to moderate-income households for a period of
15 years.
The Massachusetts Foreclosed Properties Initiative is a new statewide program managed by
Citizens’ Housing and Planning Association (CHAPA). CHAPA will serve as a foreclosed
properties “clearinghouse” by connecting banks that own foreclosed properties with approved
local organizations - called “qualified purchasers” - which will purchase the properties and
upgrade these homes for low- and moderate-income families. The goal is to get the properties
back on the market and re-occupied as affordable homes as soon as possible. CHAPA has
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approved five non-profit affordable housing developers as qualified purchasers of foreclosed
properties in Salem: Beverly Affordable Housing Coalition, Citizens for Adequate Housing,
Harborlight, Salem Harbor Community Development Corporation, and the Planning Office for
Urban Affairs. The City will be responsible for distributing the properties from CHAPA’s
database to one organization at a time and will draft a protocol for this distribution based on the
type and location of housing each organization is interested in acquiring. The developer would
be responsible for securing project funding.
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 SHA to Massachusetts Department of Housing and Community
Development and to HUD. The following modernization work is currently in the planning
stages and expected to begin in FY10:
o $136,000 site improvement plan for Rainbow Terrace family public housing development;
o $500,000 project to construct an additional elevator at the Morency Manor elderly housing
development;
o $1.7 million project to replace the stairs, stoops, and railings at the Rainbow Terrace family
public housing development; and,
o $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). In addition to basic downpayment assistance, the program offers a
$1000 increase over the maximum loan amount for homeowners who complete First Time
Homebuyer Counseling through a qualified training program.
While the FTHB Program has been highly successful in assisting moderate-income first time
buyers, current market conditions are such that perspective homeowners in the low-income
range are in need of deeper downpayment subsidies. Also, in recent years, many of Salem’s LMI
areas have seen a rise in condominium conversions resulting in the concern that more affluent
owner households are displacing LMI renter households who cannot save up the downpayment
necessary to become a homeowner in their own neighborhood. To meet these identified needs,
the City began utilizing ADDI funds administered through the North Shore HOME
Consortium, which allows homebuyers to access deeper downpayment assistance. Initially,
eligible participants included moderate-income first-time homebuyers purchasing a home in one
of Salem’s LMI areas, as well as low-income first-time homebuyers purchasing a home in any
one of the North Shore HOME Consortium communities. Since October, 2007, the City
assisted 8 Salem households with the ADDI program and 1 non-Salem household. Of those, 6
households were moderate income and 3 were low-income. Few low-income and no very low-
income homebuyers have been able to take advantage of the program, because they cannot
qualify for mortgages. Several moderate-income homebuyers could not take advantage of the
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program, because they were not located in a Salem LMI area. Therefore, in March, 2009, the
City worked with the Consortium to amend the eligibility to allow the use of ADDI funds to any
moderate-income homebuyer in Salem and to any moderate-income homebuyers purchasing in a
Consortium community that does not have its own 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 Community Teamwork, Inc.
Providing Assistance to Renters
The city continues its commitment to assist families with Rental Downpayment Assistance (first
and last month’s rent and security deposit) in order to provide families with the funds necessary
to secure housing. The program is an important tool for helping families with the cost of
moving into a decent apartment.
Rehabilitation of Existing Housing
The majority 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 and may not meet current building codes. To address these issues, the city
administers a Housing Rehabilitation Loan Program that provides low-interest loans to homeowners
of both single and multi-family homes for 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, in order to address code
compliance and health and safety issues and to maintain affordable, quality rental properties.
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
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.
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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)3 . 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 Community
Teamwork, Inc., a nonprofit organization that periodically conducts a CHAPA-certified, first time
homebuyer educational course, typically at a Point Neighborhood location. In addition, upon
request, the city’s housing staff participate in homebuyer fairs, held by lending institutions or
realtors, to provide information and counseling regarding its First-Time Homebuyer, Rehabilitation
and Deleading programs. This year, staff presented at workshops sponsored by Salem Five Bank,
Tache Real Estate, Seaport Credit Union and Eastern Bank and at two for Community Teamwork,
Inc.,. When participating in courses or fairs, housing staff 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, updated the Analysis of
Impediments (AI) to Fair Housing in 2007, 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. It did recommend that the Consortium consider
taking the following actions:
1. Assist in improving awareness of fair housing law
2. Assist in improving understanding of available fair housing services
3. Assist in improving fair housing delivery system
4. To counteract high denial rates, consider implementing first-time homebuyer training
program targeted at particular types of consumers
5. Incorporate more formalized elements of fair housing planning in Consolidated Plan
6. To aid in expanding awareness of inclusive land use policies, the Consortium might wish
to consider extending fair housing training to the area’s boards and commissions, as well as
public and elected officials
7. Assist in alerting involved agencies to the prospects of their involvement in institutional
barriers that detract from affirmatively furthering fair housing or acting in the public interest
of furthering education of fair housing and the fair housing system.
In January, 2009, the City’s Assistant Community Development Director and the Housing
Coordinator attended a Fair Housing Training hosted by the North Shore Home Consortium and
conducted by The Fair Housing Center. Also, in January, 2009, the DPCD created a separate page
on the city’s website for Fair Housing and Housing Discrimination.
On April, 1, 2009, HUD’s Office of Fair Housing & Equal Opportunity issued its evaluation report
of the City of Salem’s FY08 CAPER and recommended that the Consortium update the Analysis to
3 2000 U. S. Census
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Impediments, and following the update, that the City of Salem describe actions planned to address
any identified impediments in the next Action Plan and to include a summary of actions taken in the
next CAPER. Salem will work with the Consortium to reach its fair housing goals and will continue
to support educational and service programs that directly or indirectly work to further fair housing.
Continuum of Care
During FY09, 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 1 above, as well as in the Public Services Section of this
report. It should be noted that 202 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
This year, Salem is still feeling the effects of the downturn in the housing market which has resulted
in above average foreclosures and below average housing sales. Still, we assisted 9 households to
purchase their first home (2 more than last year), which surpassed our goal of 6. To enable more
participants in the ADDI program, we requested and received authorization from the N. S. HOME
Consortium to amend our contracts in order to expand the program to reach more eligible
households - both within and outside of Salem. Of the 9 households assisted with CDBG, 4 were
able to take advantage of the ADDI program. As of the end of year four, with a total of 53, we
continue working toward our five-year goal of assisting 75 households.
The Housing Rehabilitation Loan Program continues to assist families in need and to exceed the
goals laid out in the Consolidated Plan. In FY09, we exceeded our Action Plan goal of rehabilitating
3 housing units with 9 units completed and 3 more underway. As of the end of year four, we have
exceeded our five year goal to assist 55 housing units by assisting a total of 106 units (61 through
Salem Harbor CDC in Year 1 and 45 through the City’s Housing Rehabilitation Loan Program in
Years 1-4).
A portion of the funds initially reserved for the Landlord Rehabilitation program have been
combined with the Housing Rehabilitation Loan Program pool and non-owner occupied
applications are accepted for this program, with approval contingent upon agreement of conditions
specific to non-owner occupied applicants. Remaining funds reserved for the Landlord
Rehabilitation Program have been reprogrammed to the City Hall Elevator activity.
The Rental Downpayment Assistance Program, administered through local social service agencies to
provide grants to low- and extremely low-income Salem residents to help pay first and last month’s
rents and security deposits to enable them to obtain decent, affordable housing, has also been a
success. The Action Plan projected that up to 54 households would be assisted and we were able to
assist 56 during the program year. As of the end of year four, with a total of 239, the program has
exceeded its goal of 215 households assisted.
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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 converting from homeownership to rental units.
Affordable Housing Development funding of $121,497 was reprogrammed to cover construction
costs at the Congress/Peabody/Ward hazardous intersection project.
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.
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 FY09,
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 FY09 Action Plan.
According to HUD regulations, we are allowed to
commit up to 15 percent of our CDBG allocation to public service activities. In FY09, 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.
Student’s of VOCES attend the
oath ceremony to attain citizenship.
Public service projects funded during FY09 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 to the Mayor following this review.
In FY09, we were able to expend $183,227.80 on 29 public service programs, which, in turn, assisted
10,802 people, including 979 children/youth and 465 seniors (see Table 2 for Active Projects).
Table2: FY09 Public Services Financial Summary
Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted FY09 Program Impact
Bentley Elementary School
After School Program $5,000.00 $5,000.00 133 youth
Provided a Saturday program, chorus,
yearbook, boys and girls winter basketball
season, student arts festival, holiday
craft/pancake breakfast and homework
club.
Salem Community Child Care
$10,000.00 $10,000.00 15 youth
Provided 118 days of child care to
minimum of 13 youth, along with
educational and enrichment activities.
Haven From Hunger
Food Pantry $10,000.00 $10,000.00 483 persons
Assisted 228 households that utilized the
food pantry a total of 730 visits over 5
months.
Salem Mission
Outreach Street Advocate $7,400.00 $7,400.00 35 persons
35 individuals were engaged by and
received services from the street outreach
team.
Salem Mission
Food Pantry $10,000.00 $8,539.60 1,101
persons
Assisted 616 households for a total of
28,952 visits. All participants receive a
bag of groceries equivalent to 3 days
worth of food.
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Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted FY09 Program Impact
Salem Police Department
Bicycle and Walk/Ride Patrols $14,609.12 $7,254.56 3,918
persons
288 police patrol hours completed.
Performance measure: calls for service
for the area are down 5% from last year,
with the best reductions in public
drinking (down 22%), loitering (down
19%), assaults (down 18%), loud music
(down 28%) and drug related offenses
(down 17%). Disturbance calls have
increased 5%.
H.A.W.C.
Children’s Program $10,000.00 $10,000.00
74 persons
(42 families
with 32
children)
7 mothers attended a domestic violence
group for the first time. 22 children
attended creative art therapy classes for
the first time. Other activities included
play groups with volunteers,
communications class, parenting class,
children's advocacy, self-sufficiency
group, weekly house meeting and
community support group.
Morgan Memorial Goodwill
Industries
Career Planning Program
$4,309.85 $4,309.85 5 disabled
youth
Students completed 24 classroom
sessions which included skills assessment,
career exploration, career planning,
financial literacy, job placement and/or
job coaching. 2 students obtained
employment - 1 at House of the Seven
Gables and 1 at Peabody Essex Museum.
Salem schools sent 2 students for
summer internships at Morgan Memorial
Goodwill.
Salem Access Television
Youth in Action $3,000.00 $3,000.00 13 youth
Completed 25 course on television and
field production, scripting, and
storyboarding to produce a video
program related to their life experiences
and the salem boys & girls club. $3000
spent during the program period.
Cerebral Palsy Association
North Shore Infant & Toddler
Preschool Program
$4,000.00 $4,000.00 52 children
For children with physical and
developmental disabilities to attend
integrated developmental play groups
once per week for 2.5 hours. Of those
participating, 27 remain at CPA, 11
transitioned to daycare, 7 to salem public
schools special needs, 3 to head start
program and 4 moved away.
Community Teamwork, Inc.
First Time Homebuyer Training
Program
$1,050.00 $245.00
7
households
(minimum 7
persons)
Certified training program courses were
held in February and May. Completion of
the course makes the certificate holder
eligible for certain low-income mortgage
products from commercial banks and
lending institutions.
V.O.C.E.S.
Hispanic Education Program $5,600.00 $5,600.00 135 persons
Provided 184 classes in GED in Spanish
or citizenship over 11 months. 94
became U.S. Citizens and 4 obtained a
GED.
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Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted FY09 Program Impact
Independent Living Center
Accessible Housing Education
Services Program
$5,000.00 $5,000.00 38 disabled
persons
20 non-housing authority and/or section
8 pre-applications completed &
submitted, 9 salem housing authority
emergency and standard universal
housing applications submitted, 2
households acquired salem AAA housing,
2 housing forum workshops held.
Catholic Charities
Little Lambs Program $2,500.00 $2,500.00 223 youth
50 Salem households received diapers,
wipes and other age appropriate baby
items. All underwent assessment and 21
were referred for GED/educational and
employment/training, 3 for health care,
12 for child care and 25 for other
including housing, basic needs assistance
and counseling.
North Shore Community Action
Program
Salem Cyberspace Cyberyouth
$5,000.00 $5,000.00 17 youth
Completed 7 e-newsletters & 13 websites.
College prep students submitted 6 college
application and 11 students took the sat
exam after taking weekly prep sessions.
All 13 who took advantage of the college
success program in some way got
accepted to a college or university.
Salem Y.M.C.A.
Teen Initiative $5,000.00 $5,000.00 99 youth
Teens to participate in weightlifting with
the community police unit, homework
help, service learning projects, teen
basketball league, teen leader club and/or
seminars (i.e. banking 101, how to get and
keep a job).
Salvation Army
Prescription Program $2,580.28 $514.42 10 persons 25 prescriptions filled.
Catholic Charities
Homeless Prevention Program $11,281.03 $11,281.03 66 persons 26 families avoided homelessness
Boys & Girls Club
Gang Prevention $7,2000.00 $6,726.73 202 youth
For youth to engage in power hour,
dance, cooking, keystone leadership,
fitness, college visits, flag football, 3 on 3
basketball, art, career launch, youth of the
year, health & diet, and Jr. Achievement.
Salem Fire Department
Juvenile Firestarter Intervention
Program
$2,450.85 $2,450.85 2 youth
Provide 20 hours of classroom training.
In the last 5 years, there were no reports
of students who completed the program
having further involvement in fire related
criminal offenses.
Salem YMCA
School Age Child Care Program $10,000.00 $10,000.00
186 youth
(142
families)
142 families received child care assistance
which included educational and
enrichment activities.
Salem Family Investment Center
English Literacy Skills Project $8,000.00 $3,523.88 17 persons
English literacy scores improved an
average of 58% from pre- to post-
curriculum unit tests.
Salem Council on Aging
Transportation Program $19,875.17 $18,135.48 465 seniors
Provided rides to the senior center (5263),
bingo (673) shopping (1552, medical
(3732), hairdresser (496), downtown (126)
and other events and activities (1119).
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Agency
CDBG
Funding
Available
CDBG
Funds
Spent
Number
Assisted FY09 Program Impact
NSCAP
Homeless Prevention Program $10,000.00 $10,000.00 74 persons
24 families avoided homelessness (3 for
assistance with utilities, 21 for rental
arrearages)
Salvation Army
Transitional Housing $3,061.56 $404.22 4 persons
(2 families)
Following transitional housing, 2 families
were able to move into permanent
housing .
Salvation Army
Homeless Prevention $8,884.00 $8,528.50 49 persons 21 families avoided homelessness
H.A.W.C.
Homeless Prevention Program $8,259.43 $6,147.04 9 persons 4 families avoided homelessness
St. Joseph’s Food Pantry $10,000.00 $10,000.00 3,362
persons
2,300 families received $100 worth of
groceries per month
Wellspring House
MediClerk Program $3,000.00 $2,666.64 8 persons
Trained students for entry-level medical-
clerical positions. East 13 week course
included classroom training and job
shadowing. 6 students obtained
employment in the medical field in Salem
and Lynn. The 2 newest graduates are in
the process of active job search and are
currently interning at Salem Hospital.
TOTAL PERSONS ASSISTED 10,802 persons,
including 979 children/youth & 465 seniors
Evaluation of Goals
As stated before, Public Service activities allow us to provide direct services to our low- and
moderate-income residents. Our FY09 Action Plan goal was to provide 32 new grants, of which we
executed agreements for 29 and to assist 5800 persons, of which we assisted 10,802. For Year 1,
Year 2, Year 3 and Year 4 of 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 43,748 persons. 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 the HUD funding cap of 15 percent.
Spring 2009 MediClerk Class SATV & the Boys & Girls Club
collaborate on a video project.
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. In
addition, Salem has not been immune from the current
economic crisis and the resulting job losses. The
unemployment rate in Salem has risen to 8.9 percent from 5.1 percent a year ago.
Crunchy Granola Baby utilized
Salem’s Business Loan Program
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.
The City of Salem is dedicated to economic development through efforts to revitalize the downtown
and neighborhood commercial districts, improve exterior building façades, 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
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financial match for façade improvements of up to $5,000 per storefront and funding for
professional design assistance.
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: FY09 Economic Development Financial Summary
Program Description
CDBG
Funding
Available
Status
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.
$67,724.10
$18,835.45
CDBG spent
4 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.
$119,175.53
$119,175.53
CDBG spent
3 businesses
assisted
Salem Main
Streets
Program
Provides commercial district revitalization
through organization, promotion,
economic restructuring and design.
$20,000.00
$20,000 CDBG
spent
15 micro-
enterprise
businesses
assisted
Business
Technical
Assistance Economic
Development
Program
Delivery
Costs associated with providing
Economic Development programs and
administration of the Salem
Redevelopment Authority.
$53,523.54 $50,523.54
CDBG spent
Evaluation of Goals
In FY09, with our Small Business Financial Assistance Programs, we provided three business loans
totaling $119,175.53 and had 1 active loan from the previous fiscal year (see Table 4). To date, the
active loans created a total of 34 jobs – with 16 filled by low- to moderate-income individuals. In
addition, we provided assistance for the improvement of 4 storefronts, one-half of our FY09 Action
Plan goal.
The Salem Main Streets Program had contact with 141 businesses, of which 49 received technical
assistance, of which 15 were identified as micro-enterprises (FY09 Action Plan goal was 20
microenterprises) and 4 were new businesses. The new business activity resulted in 152 jobs being
created. In addition, the Program, during the 1st quarter, held a workshop entitled "Marketing Tips
on a Limited Budget", managed the Super Scooperbowl event, coordinated Mayor's night out,
coordinated 5 ribbon cuttings, and conducted the Salem AARP presentation. During the 2nd
quarter, they produced a holiday calendar of events, held 3 ribbon cuttings, held 3 technical
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assistance workshops (including theft prevention, recycling and identity theft prevention), held a
Santa's arrival event, developed Christmas musical events, launched a website and developed a
window contest for downtown businesses. During the 3rd quarter, they coordinated 1 ribbon
cutting, co-sponsored the Salem So Sweet Chocolate and Ice Sculpture Festival, Salem Film Festival
and Salem Literary Festival. During the 4th quarter, they coordinated 1 ribbon cutting, sponsored
an Easter contest and event, sponsored a new annual arts festival, established a weekly farmers
market and recruited businesses to participate in an "open late on Thursdays" program.
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. Significant redevelopment
projects within the Urban Renewal Area moved forward during FY09 including the completion of
the Salem News redevelopment and the commencement of the Old Salem Jail redevelopment.
These two projects alone will bring 70 new housing units and more than 10,500 square feet of
commercial space to downtown. During FY09, 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 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, $208,534.52 was spent during the program period for economic development activities.
Table 4: Active Economic Development Loans in FY09
Type of Loan Project Amount of
Loan
Required
LMI Jobs
Creation
Total Jobs Created
Pamplemousse, Inc. $42,860.53 N/A - Microenterprise
Assistance Crunchy Granola Baby $50,945.00 N/A -
Gulu Gulu Café $76,315.00 2 8 jobs created – all
low/mod Special Economic
Development River Wharf Realty
Trust/Bioengineering Group $135,925.00* 4 26 Total
8 LMI
Totals 4 $306,045.53 6 34 Total Jobs Created
16 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,
some 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
FY09. 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.
The Witch House received
handicapped access improvements.
Table 5: FY09 Neighborhood Improvement Financial Summary
Activity CDBG Funds
Available
CDBG Funds
Spent Status
Knights of Columbus Handicapped
Accessible Restroom $8,873.84 $8,873.84 Complete
Neighborhood Street Improvements
(i.e. sidewalks, curbcuts, paving &
crosswalks)
$206,641.00 $206,641.00 Complete
Essex Street Pedestrian Mall
Improvements (i.e. tables, chairs,
ashcans)
$5,840.92 $5,840.92 Complete
Witch House Accessibility
Improvements (exterior) $16,830.98 $16,830.98 Complete
High Street Playground Fence $10,445.70 $10,445.70 Complete
High Street Play Structure & Fence $59,500.00 $0.00 Planning
Congress/Derby Pedestrian Lights $61,934.12 $23.99 Planning
Witch House Accessibility
Improvements (interior) $43,476.52 $42,862.02 Underway
Tree Planting Program $7,500.00 $5,800.00 Underway
Congress/Peabody/Ward Intersection
Improvement $308,468.528 $82,504.21 Underway
Peabody Street Park $58,752.35 $57,227.30 Underway
South River Harbor Walk $277,072.81 $8,184.55 Underway
Palmer Cove Basketball Court $9,147.00 $6,284.00 Underway
City Hall Elevator $98,261.68 $525.68 Underway
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Activity CDBG Funds
Available
CDBG Funds
Spent Status
Maryjane Lee Playground Swings &
Safety Zone $5,363.00 $4,063.00 Underway
Downtown Redevelopment Project
(signage) $45,644.51 $644.51 Underway
Section 108 Loan Payments – South
Harbor Garage $5,059.25 $5,059.25 Ongoing
Harbor and Lafayette Streets
Pedestrian Improvements $100,482.00 $482.00
Lafayette Park Redesign $100,000.00 $0.00
To be redesigned as part of
the St. Joseph’s complex
redevelopment.
Evaluation of Goals
During the program period, we continued to work on important neighborhood projects, and spent a
total of $462,292.95, including program delivery costs, toward meeting the goals in the FY09 Action
Plan and 5 year Consolidated Plan.
30 trees were planted. Although not meeting the FY09 Action Plan goal of 35, with a 4 year total of
231, we have exceeded the Consolidated Plan goal of 175 trees.
In addition, 3 street/sidewalk improvements were undertaken, including crosswalk and curbcut
replacement throughout the downtown and resurfacing of Canal Street. With a four year total of 32
improvements, we have exceeded the Consolidated Plan goal of 20.
The South River Harborwalk construction bid opening is 7/22/09. The Witch House handicapped
accessibility improvements are nearing completion and improvements have begun at Maryjane Lee
and High Street Playgrounds. Tables and chairs were purchased and placed in Derby Square, and
new ashcans were placed in various locations in the downtown. The Downtown Signage Program is
being completed in stages.
Several additional activities are underway or in the planning stages.
PLANNING & ADMINISTRATION
In the Consolidated Plan, our priority goals are to provide
for the administrative costs associated with the management
of the Salem Community Development Block Grant
program and to develop the planning resources and
documents necessary to undertake program activities.
During FY09, we completed 3 studies. The Neighborhood
Conservation District Study utilized a $18,000 matching
grant from Massachusetts Historical Commission.
In FY09, we spent a total of $266,096.73 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.
In concert with the City Hall elevator and
handicapped access improvement project, a
feasibility study on needed renovations was
completed.
Table 7: FY09 Planning & Administration Financial Summary
Activity CDBG Funds
Available
CDBG Funds
Spent
City Hall Renovation Feasibility Study $20,000.00 $20,000.00
Neighborhood Conservation District Study $2,000.00 $2,000.00
Economic Outlook Study $2,000.00 $0.00
City-wide Bike Circulation Study $11,750.00 $11,750.00
General Administration - Salary $160,793.19 $160,793.19
General Administration - Benefits $57,774.37 $57,774.372
General Administration - Non-salary $13,779.17 $13,779.17
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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 Affordable Housing Development Programs, the city is
able to address some of these barriers. And although the City of Salem is above the State 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 rental housing in the Point Neighborhood. Also, the City Council, with the support
of the DPCD, has approved the waiver of permitting fees for at least one affordable housing
development project.
In addition to the above mentioned barriers, the recent foreclosure crisis has created new affordable
housing issues - see discussion beginning on page 6.
Lead-Based Paint Hazard Reduction
The Salem Board of Health disseminates information regarding the proper disclosure of lead
hazards when an owner sells or rents a housing unit and they inspect 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.
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 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.
Through the Housing Rehabilitation Loan Program, 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
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federal Title X requirements and State lead based paint regulations. MassHousing’s Get the Lead
Out Program is also available to homeowners with a lead poisoned child.
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
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 Block Grant funds, as well as
the formula funding received by the North Shore HOME Consortium for which the City of
Peabody is the lead agency. These funds are managed and monitored by the Assistant Community
Development Director under the direction of the Director of Planning and Community
Development.
Salem’s economic development programs are managed by the Economic Development Manager and
Salem’s housing programs are managed by the Housing Coordinator. In addition, certain housing
activities are administered by local non-profit agencies, CHDO’s and/or CDC’s. Many housing and
economic development activities leverage funds through private lending financing.
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 any required documentation (i.e. prevailing wage documentation) to the DPCD.
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 Manager 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.
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Salem’s CDBG program delivery system is audited yearly through the city’s auditing firm, as well as
through periodic reviews and monitoring by HUD staff. Recommendations are promptly
implemented. The DPCD continuously works to improve upon its methods and procedures for the
administration of its programs.
Coordination with Other Organizations
Salem Housing Authority: Although, the city does not currently use its CDBG funds to assist the
Salem Housing Authority (SHA), the DPCD coordinates with the SHA to address the housing
needs of Salem’s lower-income residents. While developing its Consolidated Plan, the city consulted
with the SHA to determine the agency’s most pressing needs. In addition, SHA’s Comprehensive
Plan must take into account the findings of the Consolidated Plan and the 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 SHA 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 that serve Salem residents 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.
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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.
Monitoring
An overarching goal with all activities undertaken with CDBG and HOME funds is to ensure that
they meet our program objectives. 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.
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 public service agencies are made on a reimbursement basis to ensure compliance with
expenditure requirements. In FY09, the public services program was updated to logic model and
performance based contracting. Agencies submitting reimbursement requests must include proof of
expenditure of funds, as well as documentation that the pre-determined benchmark or goal was
attained.
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.
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SUMMARY/PROGRAM EVALUATION/CONCLUSIONS
Overall, we made significant progress toward meeting the goals of our 5-year Consolidated Plan and
FY09 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 FY09:
9 families were assisted to purchase their first home in Salem of which 4 were also assisted
with American Dream Downpayment Initiative funds;
9 housing units were renovated, with an additional 3 units underway;
2 units were deleaded with MA Get the Lead Out funding;
Water supply upgrade for fire suppression undertaken at a home for chronically mentally ill;
56 households received assistance with first/last month’s rent and/or security deposits;
Housing Summit held;
Housing staff conducted 6 workshop presentations;
29 social service programs assisted 10,802 persons, including 979 youth and 465 seniors;
4 commercial storefronts improved;
3 businesses provided with economic development loans;
Salem Main Streets Program:
o Assisted 49 businesses including 15 identified micro-enterprises and 4 new
businesses, resulting in 152 jobs being created;
o Held a workshop entitled "Marketing Tips on a Limited Budget" and 3 additional
technical assistance workshops (including theft prevention, recycling and identity
theft prevention);
o Managed the Super Scooperbowl event;
o Coordinated Mayor's night out;
o Coordinated 10 ribbon cuttings;
o Conducted the Salem AARP presentation;
o Produced a holiday calendar of events and held a Santa's arrival event;
o Developed Christmas musical events;
o Launched a website;
o Developed a window contest for downtown businesses;
o Co-sponsored the Salem So Sweet Chocolate and Ice Sculpture Festival, Salem Film
Festival and Salem Literary Festival;
o Sponsored an Easter contest and a new annual arts festival;
o Established a weekly farmers market; and,
o Recruited businesses to participate in an "open late on Thursdays" program.
Handicapped restroom at Knights of Columbus installed;
Fence replacement at High Street Playground undertaken;
Witch House exterior handicapped access and other improvements completed;
Tables and chairs provided for Derby Square (downtown);
Ashcans provided for downtown;
30 trees planted in low-mod neighborhoods;
Economic Outlook study completed;
City Hall Renovation Feasibility Study completed;
Neighborhood Conservation District Study completed;
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Crosswalk and curbcut installation undertaken throughout downtown; and
Street resurfacing undertaken on Canal Street.
In summary, we are proud of the accomplishments made in FY09. In addition to completed
projects, dozens of additional activities are underway and continue to make progress. The City
continues to make progress in all program areas toward meeting the goals and objectives laid out in
the 5-Year Consolidated Plan and FY09 Action Plan. We have made significant progress in
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.
IDIS/CPMP Reporting
All HUD required reporting is up to date and complete.
The DPCD makes minimal use of HUD’s CPMP Tool, submitting with the Action Plan the Needs
and Projects tables only. The activities in projects.xls are entered into IDIS and are included in the
Action Plan. These same activities are listed in the CAPER tables found on pages 4, 13, 18, 20 and
22, including funds available and funds expended. These activities may included funding from one
or more plan years.
The Financial Summary Grantee Performance Report (Form #4949.3) or the PR26 on IDIS is
recreated in the CAPER in the Appendix.
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 FY09, CDBG expenditures fully complied with the goals and objectives outlined in the FY09
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, provided public notice for two changes to the program objectives laid
out in the FY09 Action Plan:
Addition of activity: Approximately $59,500 in CDBG funds will be reprogrammed to
undertake park/playground improvements in eligible neighborhoods; tentatively scheduled is a
new play structure and fence at the High Street Playground; and,
Addition of activity: The City of Salem has been notified of its $305,977 allocation from the
American Recovery and Reinvestment Act (ARRA) or (CDBG-R). These funds will be used
toward the installation of an elevator in City Hall and related handicap access improvements.
Public notice was also provided for one change to the 5-Year Consolidated Plan:
The City of Salem has long recognized the need for a new senior center. In April, 2007, the
Mayor appointed a 12 member Senior Center Committee to identify and assess various sites.
The Committee unanimously adopted a report that identified three sites. Following
recommendation by the Salem City Council, an extensive review was conducted for each site.
On February 5, 2009, Mayor Driscoll announced that she recommended the City proceed with
the acquisition of a space for a new senior center, as part of a joint development at the
intersection of Boston and Bridge Streets. In March, 2009, the Salem City Council approved the
acquisition of the senior center condominium unit and a resolution authorizing the Mayor to
submit a Section 108 Loan application and to execute necessary documents. The City of Salem
will use the Section 108 Loan Guarantee Program to finance all or part of the acquisition cost
for a space for a new senior center.
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. 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. Adjustments to FY09 funding (over $50,000)
include:
Deductions:
Landlord Rehabilitation Program $119,000.00
Affordable Housing Development $121,497.00
Harbor/Lafayette Pedestrian Improvements $ 52,625.52
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Increases:
Housing Rehabilitation Loan Program $ 53,154.75
City Hall Elevator Project $ 98,261.68
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 regulations, 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 geographic distribution map is located in the
Appendix.
Compliance with Planned Actions
In FY09, the City of Salem pursued all resources indicated in its FY09 Action Plan.
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 FY09, 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 FY09, the City of Salem funded several activities that served limited clienteles. For example,
funds were expended on 29 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
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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 FY09. The total program income was $147,900.99.
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 FY09 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 FY09.
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. Starting in FY09, public service agencies were required
to submit reimbursement requests which were tied to pre-determined benchmarks or performance
outcomes (logic model). It should be noted that this actually resulted in the submission of more
paperwork from the agency and in more staff time needed to process reimbursement requests. The
performance outcomes are summarized in the Public Services Section in Table 2. Internally, a
spreadsheet is maintained which tracks the receipt of monthly reports and the status of on-site
monitorings.
Housing Programs - Housing rehabilitation program staff track each project in a formal system that
details project status and loan details. In addition, the staff maintain a comprehensive written
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.
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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 FY09, the City of Salem spent $98,058.35 in HOME funds and $117,306 in ADDI funds.
HOME 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. ADDI funds were used to assist eligible first time homebuyers to purchase a
home in Salem or other North Shore HOME Consortium community. 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 1, 2007. 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.
FUNDS LEVERAGED
In order to maximize the benefits achieved by Salem’s community development programs and in
order to make projects feasible, CDBG, HOME and ADDI funds often must be combined with
other funding sources. The following chart summarizes the amount of federal dollars spent during
FY09 and the funds leveraged through these expenditures.
Table 8: FY09 Funds Leveraged
Program CDBG
Expenditures
HOME & ADDI
Expenditures
Funds from Other
Sources
Housing Programs $412,869 $215,616 $1,723,513
Public Services $183,228 -$3,824,151
Economic Development $208,534 -$60,432
Neighborhood Improvements $462,293 -$2,068,025
Planning & Administration $266,097 -$333,371
TOTAL FY09 $1,533,021 $215,616 $8,009,492
TOTAL FUNDS LEVERAGED PER HUD DOLLAR IN FY09: $4.58
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 $1,509,055.
The rehabilitation program leveraged $19,000 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 leveraged $110,000 in North Shore HOME Consortium’s HOME funds and
$75,258 in private funds.
Health & Education Services’ fire suppression project leveraged $10,200 in HOME funds from
the N. S. HOME Consortium.
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
$3,824,151.
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Economic Development:
The Salem Main Streets Program leveraged $14,500 in private funds, $5,000 in grants and $6,186
in program income.
This year’s Business Loan Program leveraged at least $15,000 in private funds.
The Storefront Improvement Program leveraged $19,746.12 in private dollars.
Neighborhood Improvements:
CDBG funds for the South River Harbor Park project are used as a match toward $1,336,000 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.
Witch House project utilized $4,000 in grant funds from Essex National Heritage Commission
and $53,225 Massachusetts Preservation Project 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.
Planning and administration funds leveraged $239,980.38 in City funds and $45,653.32 in State
Seaport Advisory Council funds for salaries and $20,578.50 in city funds and $9,158.46 in State
Seaport Advisory Council funds for advertising, office supplies, postage, 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 to provide guidance on our response to citizens’ comments on
our programs throughout the year.
Public Comment Period
Copies of the FY09 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.
APPENDIX
Financial Summary
Progress of Consolidated Plan 5-Year Goals
IDIS PR03 Excerpts - Persons Served by Income
(This table is not included in the digital PDF. Please contact the DPCD for copies)
IDIS Report PR23 Excerpts
Total CDBG Beneficiaries by Racial/Ethnic Category
CDBG Beneficiaries by Income Category
Maps
CITY OF SALEM – FINANCIAL SUMMARY
FY09 Consolidated Annual Performance and Evaluation Report
1 Summary of CDBG Resources
2 FY08 End of Year LOC Balance $ 1,596,786.76
3 FY09 CDBG Entitlement $ 1,127,314.00
4 Program Income, FY09 $ 147,900.99*
5 Total CDBG funds available for use in FY09 $ 2,872,001.75
6 Summary of CDBG Expenditures
7 Affordable Housing $ 412,869.15
8 Public Services $ 183,227.80
9 Neighborhood Improvements $ 457,233.70
10 Economic Development $ 208,534.52
11 Program Administration $ 266,096.73
12 Section 108 Repayment (in CAPER narratives under neighborhood improvements) $ 5,059.25
13 Total Expenditures $ 1,533,021.15
14 Year-End CDBG Resources
15 Total CDBG funds available for use in FY09 $ 2,872,001.75
16 Total Expenditures in FY09 $ 1,533,021.15
17 Unexpended Balance (CDBG Budget) $ 1,338,980.60
18 *LOC = Balance of Funds in City’s Letter of Credit with U.S. Treasury
19 Low/Mod Credit
20 Total FY09 CDBG Expenditures $ 1,533,021.15
21 Total for Program Administration $ 266,096.73
22 Total for Section 108 Repayments $ 5,059.25
23 Total subject to Low/Mod Benefit Calculation $ 940,250.32
24 L/M Credit for multi-unit housing $ 0.00
25 L/M Credit for other activities $ 940,250.32
26 Percent of benefit to low/mod persons 74.51%
27 Public Services Cap Calculation
28 Net obligations for FY09 Public Services Act. $ 188,814.14
29 FY09 Entitlement + FY08 Program Income $ 1,263,583.90
30 Percent obligated for FY08 PS Activities 14.94%
FINANCIAL SUMMARY
31 Planning and Program Administration Cap Calculation
32 FY 09 Entitlement + FY09 Program Income $ 1,275,214.90
33 Net Obligations for Planning/Admin. Activities $ 246,096.73
34 Percent of funds expended 19.3%
35 HOME Summary
36 HOME Project Expenditures $ 89,058.35
37 Salem HOME Administration $ 9,252.00
38 Total HOME Expenditures $ 98,310.35
39 ADDI Summary
40 ADDI Project Expenditures $ 116,365.00
41 ADDI Administration $ 941.00
42 Total ADDI Expenditures $ 117,306.00
*Note: Program income of -$235.15 entered into IDIS in FY09 was reported in the FY08 CAPER. Program
income of +$6,042.64 entered into IDIS in FY10 is being reported in this CAPER (FY09). Therefore the net
adjustment to compute total program income is +$5,807.49.
PROGRESS OF CONSOLIDATED PLAN 5-YEAR GOALS CDBG funds unless otherwise noted Category 5 Year Goals 5 Year Proposed Year 1 FY05/06Year 2 FY06/07Year 3 FY07/08Year 4 FY08/09Year 5 FY09/10TOTAL Housing 15 Housing Development Units - 50 Palmer (9 renter, 6 owner) 15 0 0 15 0 15 21 Units Permanent Supportive Housing - Salem Mission (HOME) 21 0 0 22 0 22 55 rehabilitations units - 25 single + 30 multi (CDBG/HOME) Salem Harbor CDC renovation project61 0 0 0 55 10 19 7 9 106 Housing Rehabilitation Loan Program (housing units) 75 Direct homeownership assistance 75 17 20 7 9 53 215 Rental Housing subsidies (HOME) 215 99 45 39 56 239 Acquisition for rehabilitation - (18 Crombie St., 1 Harrison) 1 1 0 0 1 2 10 Commercial building acquisition, construction, rehabilitation 10 2 13 5 4 24 Economic Development 30 Direct Financial Assistance for For-Profits 30 2 1 1 3 7 1 Technical Assistance 1 1 1 1 1 4 70 Micro-enterprise assistance 70 22 27 9 15 73 1 Public Facility and Improvements General (Peabody St. Wall, Pioneer Terrace Guardrail) 1 0 2 0 0 2 Public Facilities & Improvements 2 parks/playgrounds (High St.& Palmer Cove Playgrounds) 2 0 0 0 2 2 175 Trees planted 175 66 109 26 30 231 1 Senior Center 1 0 0 0 0 0 1 Parking Facility 1 0 0 0 0 0 20 Street/sidewalk improvements 20 5 12 12 3 32 1 Flood drain improvements 1 0 0 0 0 0 1 Water/sewer improvement 1 0 0 0 0 0 1 Fire Stations improved (Loring Ave.) 1 0 0 1 0 1 1 Clean up of contaminated sites 1 2 0 0 0 2 1 Urban Renewal Completion (pedestrian mall improvements) 1 1 0 0 1 2 1 Removal of architectural barriers (Witch House) 1 0 1 0 1 2 1 non-residential historic preservation 1 0 0 0 0 0 Public Services 42,000 persons assisted 42000 11839 6869 14238 10802 43748
PR23 Excerpt - CDBG Beneficiaries by Racial / Ethnic Category Housing-Non Housing Race S Total Persons Total Hispanic PersonsTotal HouseholdsTotal Hispanic HouseholdsWhite MC00235 Black/African American MC0010 Asian 0020Housing Total 00265 White MC29,1002,47200 Black/African American MC2,4241,22300 Asian MC5781500 American Indian/Alaskan Native MC913400 Native Hawaiian/Other Pacific Islander MC261300 American Indian/Alaskan Native & White MC77700 Asian & White MC72700 Black/African American & White MC2043100 Amer. Indian/Alaskan Native & Black/African Amer. MC9100 Other multi-racial MC2,5532,16800Non Housing Total 35,1345,97100 White MC29,1002,472235 Black/African American MC2,4241,22310 Asian MC5781520 American Indian/Alaskan Native MC913400 Native Hawaiian/Other Pacific Islander MC261300 American Indian/Alaskan Native & White MC77700 Asian & White MC72700 Black/African American & White MC2043100 Amer. Indian/Alaskan Native & Black/African Amer. MC9100 Other multi-racial MC2,5532,16800Total Total 35,1345,971265
PR23 Excerpt - CDBG Beneficiaries by Income Category Income Levels Source Type (for Funding Fact Source) Metrics Owner Occupied Renter OccupiedPersons Extremely Low (<=30%) MC 3 00 Low (>30% and <=50%) MC 4 10 Mod (>50% and <=80%) MC 17 10 Total Low-Mod MC 24 20 Non Low-Mod (>80%) MC 0 00 Housing Total Beneficiaries MC 24 20 Extremely Low (<=30%) MC 0 06,069 Low (>30% and <=50%) MC 0 027,666 Mod (>50% and <=80%) MC 0 01,336 Total Low-Mod MC 0 035,071 Non Low-Mod (>80%) MC 0 063 Non Housing Total Beneficiaries MC 0 035,134
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 FY09.