FY19 ONE YEAR ACTION PLAN - YEAR 4 of 5 - JUNE 18, 2018CITY OF SALEM
~ ONE-YEAR ACTION PLAN ~
(YEAR 4 OF 5 OF THE 5-YEAR CONSOLIDATED PLAN)
JULY 1, 2018 – JUNE 30, 2019
FISCAL YEAR 2019
(HUD 2018 FUNDS)
JUNE 18, 2018
Kimberley Driscoll
Mayor
Tom Daniel, AICP
Director of Planning & Community Development
Kathleen Winn
Deputy Director of Planning & Community Development
Jane A. Guy
Assistant Community Development Director
TABLE OF CONTENTS
Introduction ................................................................................................................................................... i
CDBG 101: What Can Be Funded? ............................................................................................................ i
FY18 Action Plan Summary of Proposed Activities .................................................................................. iii
Executive Summary ....................................................................................................................................... 1
AP-05 Executive Summary - 91.200(c), 91.220(b) .................................................................................... 1
PR-05 Lead & Responsible Agencies - 91.200(b) ...................................................................................... 8
AP-10 Consultation - 91.100, 91.200(b), 91.215(l) ................................................................................... 9
AP-12 Participation - 91.401, 91.105, 91.200(c) ..................................................................................... 18
Expected Resources .................................................................................................................................... 23
AP-15 Expected Resources – 91.420(b), 91.220(c) (1, 2) ........................................................................ 23
Annual Goals and Objectives ...................................................................................................................... 29
AP-20 Annual Goals and Objectives………………..……….………………………………………………………………………. 29
AP-35 Projects - 91.420, 91.220(d) ......................................................................................................... 35
AP-38 Project Summary .......................................................................................................................... 37
AP-50 Geographic Distribution - 91.420, 91.220(f) ................................................................................ 47
AP-75 Barriers to Affordable Housing - 91.420, 91.220(j) ...................................................................... 48
AP-85 Other Actions - 91.420, 91.220(k) ................................................................................................ 50
Program Specific Requirements .................................................................................................................. 55
AP-90 Program Specific Requirements…………………………………………………………………………………………….…55
Appendix
LMI Map
Application For Federal Funding (SF-424) & Certifications
Other Resources
Citizen Participation Comments
Part 1 - Public Participation Process
Part 2 - Review of Draft Plan
Written comment received
i
Introduction
The Federal funding that Salem will receive for FY19 includes $1,053,238 in CDBG funds, $162,324 in
HOME funds and a projected $105,000 in program income. Total proposed expenditures based on
current estimates of funding to be available are $1,320,562.
Many activities leverage funding from other sources to maximize the impact of the federal dollars the
City receives. Together, these resources fund a wide range of activities designed to develop and
maintain affordable housing, improve neighborhood public facilities, provide economic opportunities,
improve access for people with disabilities, provide critical public services, assist people who are
homeless, and prevent homelessness. The City bases its funding allocations on needs identified,
proposed activities and accomplishments to meet those needs and estimated funding needed to reach
the goals and accomplishment levels.
CDBG 101: What Can Be Funded?
Although CDBG funds can be used for many types of housing, community and economic development
activities, some restrictions apply. CDBG funds must be used for an eligible activity, must address at
least one of three “national objectives” set by Congress, and a majority of the funds must be spent on
activities that benefit very low, low or moderate income people.
National Objectives
Benefit to very low, low and moderate income persons
Activities that serve a “limited clientele”
Limited clientele refers to certain populations presumed by HUD to have very low, low or
moderate incomes: abused children, battered spouses, elderly persons, severely disabled
adults, homeless persons, illiterate persons, persons living with AIDS and migrant farm
workers
Serving people with incomes below the very low, low or moderate income threshold (see
“Income Limits” below)
Area benefit activities
Activity conducted in a service area that is primarily residential, and at least 51% of the
residents have very low, low or moderate incomes (see Map in Appendix). The activity
must meet the needs of very low, low and moderate income persons.
Job creation or retention activities
At least 51% of the jobs created or retained must be available to and held by very low, low
or moderate income people
Aid in the prevention or elimination of slums or blight
Area Basis - Must be a formally designated area (i.e. Salem’s downtown)
Spot Basis – Only a limited set of activities qualify
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Urban Renewal Area
Meet a need having a particular urgency
Recent emergency conditions only, posing an immediate threat to health or welfare of
community and no other funding is available
Eligible Activities
CDBG funds may be used for a variety of activities. In general, the activities fall into these categories:
Anti-Crime Programs
Economic Development
Homeless & HIV/Aids Programs
Housing
Infrastructure
Planning & Administration
Public Facilities
Public Services
Senior Programs
Youth Programs
What Does “Very Low, Low or Moderate Income” Mean?
Each year HUD publishes “income limits” that define very low, low and moderate income levels used in
several housing and community development programs. The income limits are determined by
household size and the median incomes in a particular area1. Below are the income limits in effect for
Salem as of June 1, 2018.
Income Limits
Household Size
ONE
TWO
THREE
FOUR
FIVE
SIX
SEVEN
EIGHT
MODERATE
(80% of Median) 56,800 64,900 73,000 81,100 87,600 94,100 100,600 107,100
LOW
(50% of Median) 37,750 43,150 48,550 53,900 58,250 62,550 66,850 71,150
VERY LOW
(30% of Median) 22,650 25,900 29,150 32,350 34,950 37,550 40,150 42,750
1 Salem’s median income is $98,100 as of 4/14/17
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34 Peabody Street is slated to become Lighthouse 34
with the construction of 21 affordable housing units.
FY19 Action Plan Summary of Proposed Activities
The following section describes the activities proposed for FY19 in the categories of Affordable Housing,
Economic Development, Neighborhood Improvements, Public Services and Planning & Administration
that will be undertaken with CDBG and/or HOME funds. The activities listed are a combination of those
managed by the city and by community organizations.
Typically, the City identifies activities to be funded from a specific year’s resources, but for some
projects, such as multi-year funding commitments or construction projects, the activity may be
completed in the following fiscal year or undertaken over several fiscal years. It is not uncommon for the
City to have projects that are ongoing from a previous fiscal year.
FY19 Affordable Housing Activities
Housing Rehabilitation Loan Program
The Housing Rehabilitation Loan Program provides
technical and financial assistance to help homeowners
make needed improvements to their properties. The
program’s primary objectives are the elimination of lead
paint, hazardous health and safety conditions, code
violations, and barriers to accessibility. The program
rehabilitates owner-occupied single and multi-family
properties, which also creates and/or improves rental
opportunities. As requested by residents to address the
issue of substandard rental housing, this program also
addresses building code violations and health and safety
issues in investor-owned properties with preference to locations in low to moderate income
neighborhoods. Upon completion of the rehabilitation, and for at least 15 years thereafter, all rental
units assisted with federal funding will be restricted to affordable rents.2
Projected Accomplishments: 3 Housing Units Rehabbed
Proposed Funding: $67,716 CDBG; $32,454 HOME (If Salem’s HOME allocation is more/less than
estimated, HOME funds for this activity will be adjusted by the difference).
This activity may also use carried over funding from FY18 (for additional units).
First-Time Homebuyer Downpayment Assistance Loan Program
The First-Time Homebuyer Downpayment Assistance Loan Program provides 0 percent interest,
deferred-payment loans to households that wish to purchase a home in the City of Salem. The loan is
deferred, as long as ownership of the property is not sold, transferred or refinanced. This program
provides renters with the opportunity to become homeowners, while potentially freeing up a rental unit
for another family.
Projected Accomplishments: 5 Households Assisted
Proposed Funding: $40,000 CDBG
This activity may also use carried over funding from FY18 (for additional households).
TP
2PT Rents are established by HUD annually.
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Ribbon Cutting at Hotel Salem
March, 2018
Tenant Based Rental Assistance
Tenant Based Rental Assistance will target homelessness in Salem through North Shore Community
Action Programs. It will provide 12-24 months of temporary rental assistance for high risk homeless
individuals. Support services will be provided separately through the agency.
Projected Accomplishments: 7 Individuals assisted
Proposed Funding: $75,000 HOME
Affordable Housing Development
Pool of funds for when opportunities arise for pre-development, acquisition and/or rehabilitation of
affordable housing units (at or below 80% of AMI) by non-profit housing developers and/or CHDO’s.
Projected Accomplishments: A minimum of 2 units of affordable housing as yet to be determined.
Proposed Funding: $50,000 HOME, as well as carried over CDBG and HOME funding from FY18 will also
be used for specific development projects to be determined.
Rehabilitation Administration
Provides for the administration costs necessary to manage our rehabilitation programs, including
inspectional services, mortgage filings, salary, benefits and non-salary expenses.
Proposed Funding: $92,000 CDBG; $4,870 HOME
Fiscal Year 2019 Economic Development Activities
Small Business Financial Assistance Programs
The City provides financial assistance to local
business owners through its Business Loan
Program and Storefront Improvement Program,
which are operated out of a funding pool. The
Salem Business Loan Program works to expand
financing opportunities for local entrepreneurs,
while creating jobs for low- and moderate-
income individuals and revitalizing the city’s
downtown and income-eligible neighborhoods.
The program provides low-interest loans to
qualified entrepreneurs to cover the gap
between the amount of financing needed for an economic development project and the amount that
conventional lenders can finance. Funds are available for acquisition, construction, or rehabilitation of
real property and for financing related to the purchase of equipment, fixtures, inventory, leasehold
improvements and working capital. Terms/conditions of the loans vary. The Storefront Improvement
Program is designed to encourage private investment and reinvestment by new and existing
property/business owners in eligible commercial districts, by offering a one-to-one match for façade
improvements. The match from the city is up to $5,000 for each storefront.
Projected Accomplishments: 1 business assisted, minimum of 2 jobs created (from FY18 Action Plan)
Proposed Funding: This activity will use carried over funding from FY18.
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Business Technical Assistance
The City helps to coordinate and fund technical assistance services to local business owners. In FY19, the
City will continue to fund the Salem Main Streets Downtown Program. The goal of the Program is to
assist in the revitalization of downtown Salem as a vibrant year-round retail, dining and cultural
destination through business recruitment, retention and promotion. Main Streets works with
entrepreneurs and business owners to secure needed resources and navigate approval processes. Main
Streets also works to improve the downtown business climate in support of additional economic
development.
Technical assistance is also provided to new and existing businesses by the City’s Economic
Development Planner, who administers the City’s financial assistance programs and provides
administration to the Salem Redevelopment Authority, which has approval authority over projects
occurring in the Downtown Area (slum/blight area).
New this year will be assistance for a Small Business Engagement Program that will serve minority
entrepreneurs with a business workshop series, mentoring sessions, networking groups and referrals to
partner agencies. The program will assist the development and growth of immigrant-owned businesses
that provide products and services to the Point Neighborhood.
Projected Accomplishments: 42 business owners/potential owners assisted, minimum 11 jobs created
Proposed Funding: $190,000
Fiscal Year 2019 Neighborhood Improvement Activities
Parks, Facilities & Infrastructure Improvements
Various improvements to publicly owned resources in eligible
neighborhoods. Improvements may include, pedestrian circulation,
safety and aesthetics, accessibility improvements, trash receptacles,
traffic improvements, lighting, public art, signage and open space
improvements, as well as improvements to public facilities and public
infrastructure. Improvements under consideration include the
preparation of bid documents and other costs related to
improvements to Palmer Cove Park currently under design, and
electrical upgrades at the fire station on Loring Avenue. Additional
improvements may be targeted to Collins Cove, Memorial and/or Gallows Hill Park, bike path
connections in LMI neighborhoods and/or recreational land improvements at Salem High School.
Projected Accomplishments: Various park, facility and infrastructure improvements
Proposed Funding: $238,175
Downtown/South River Improvements
Undertake infrastructure improvements to support Salem's slum/blight area (downtown) and
complement ongoing Economic Development activities. The Downtown is bounded roughly by Bridge
Street to the north, Peabody Street to the south, Summer Street to the west, and the Salem Common to
Loring Avenue Fire Station
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the east. The MBTA's Salem commuter rail station parking lot, located just north of Bridge Street, is
included within the Downtown, as is the South River located to the South.
Just a couple years ago, the properties along the Downtown side of the South River included several
vacant business spaces, including a large empty parcel that had several failed attempts at
development. However, more recently, this area has started to go through a positive transition that the
City would like to help further along. One building that had been vacant for over a year, as well as a
former tire shop, revived as new restaurants. Notch Brewery opened its brewery with a tasting room
and outdoor patio facing the South River. The Salem Waterfront Hotel has received all local permits
needed to undertake an expansion of their hotel by 42 rooms within a new building on a currently
underutilized lot that sits alongside of the South River. The City is pursuing state level permits and
funding opportunities to dredge the South River, with the end goal of making a portion of the river open
to recreational boating. The City recently acquired a large vacant parcel in the middle of this activity,
currently undergoing construction as a new waterfront park. These activities will all help alleviate
slum/blight conditions, create jobs and encourage further development.
The City intends to complement these efforts and other downtown efforts by contributing public
investment to help further spur private investment and to help bring new customers to fledgling
businesses, further increasing the vitality of the area, and thereby reducing slum/blight. Activities may
include street & sidewalk improvements, pedestrian circulation, safety and aesthetics, accessibility
improvements, tree planting, trash receptacles, traffic improvements, lighting, public art, signage and
open space improvements, as well as improvements to public facilities and public infrastructure.
Examples of work could be the continuation of the Harborwalk or installation of permanent year-round
or seasonal lighting as public art.
Projected Accomplishments: Facility and infrastructure improvements and/or public art
Proposed Funding: $10,000. This activity may also use carried over funds from FY18
Neighborhood Street and Sidewalk Improvements/Tree Planting
The City’s Street Improvement Program funds the repaving of streets, installation of curb
cuts/crosswalks, replacement of sidewalks and planting of street trees in eligible neighborhoods.
Proposed Funding: $100,000
Note: The City is also considering submitting an application for a Section 108 loan in FY19, in order to
undertake comprehensive street improvements (street paving, sidewalk replacement, curbcuts and
crosswalk installations) in the Point Neighborhood.
The Neighborhood Improvement category will also include $15,000 for program delivery costs.
Fiscal Year 2019 Social Services Activities
Community Support Services
This program provides grants to nonprofit agencies for social service programs that assist homeless
individuals and families, as well as low- and moderate-income Salem residents in need. Funded
programs are selected through a competitive Request for Proposal process.
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Proposed Accomplishments: Grants for approximately
26 social service agency programs to assist an estimated
8,200 persons.
Proposed Funding: $173,700
Fiscal Year 2019 Social Services Funding Proposals Received:
Located within or steps from the Point Neighborhood:
Catholic Charities - Homeless Prevention Program
HAWC – Legal Services for Domestic Violence Services
Independent Living Center of the North Shore and Cape Ann, Inc. - Housing Assistance Services
Leap for Education - College Ready Program
North Shore CDC - Family Resource Center
North Shore Community Health – Increasing Access to Behavioral and Medical Services to Homeless
Individuals
Salem Community Child Care – Kindergarten Afterschool Program
Salem Police Department - Point Targeted Patrols
VOCES - Hispanic Education Program
Open Door Immigration Program – Increasing Community Access to Immigration Legal Services
Located in Downtown Salem:
Lifebridge - Medical & Outreach Supportive Services
Salem YMCA - Afterschool Program
Charter Street Tenant Association – Sunday Brunch Program
Located within Salem:
Aspire Developmental Services, Inc. – Early Intervention Program
Boys & Girls Club of Greater Salem - Power Hour
Eastgate Christian Fellowship - Joseph’s Storehouse Food Pantry
Inversant – Salem Families College Savings Program
The North Shore Moving Market – Food Delivery for Elderly, Disabled and Disadvantaged
Salem Council on Aging - Senior Transportation Program
Salem Council on Aging –Creative Arts Program for Senior Citizens
Salem Council on Aging –Muscle Strength & Endurance Class for Senior Citizens
Salem Park, Recreation & Community Services – Enrichment Playground Programs (Palmer Cove and
Memorial Parks)
Salem Public Schools – Teacher Home Visits & Family Engagement
The Salvation Army - Homeless Prevention Program
Wellspring House - MediClerk Job Training Program
Located outside Salem (but available to Salem residents):
Citizens Inn, Inc. – Haven from Hunger Food Pantry
North Shore Community Action Programs, Inc. - Homeless Prevention Program
Guitar lessons in the park, provided by the
Park & Recreation Dept.
viii
Staff of the DPCD, March 2018. L-R Patti Kelleher,
Ashley Green, Julia Medina, Matt Coogan, Tom
Daniel, Erin Schaeffer, Deborah Greel, Kathy Winn,
Tom Devine & Jane Guy. Missing: Sarah Cahill,
Amanda Chiancola & Naomi Francisco.
Fiscal Year 2019 Planning & Administration Activities
General Program Administration
This activity provides for the necessary general
administration costs of the CDBG program oversight and
coordination. It also includes the development of plans
and studies and the provision of public information.
General administration costs are capped at 20 percent of
the available CDBG funds.
Proposed Funding: $231,647 (salary, benefits, non-
salary expenses, studies). This may include funds
required to match grant funds being provided by
Massachusetts Historical Commission to undertake
Survey and Planning Grant projects and/or other grant-
funded projects.
Ongoing Activities
While a number of activities take place entirely in one fiscal year, the City undertakes projects of a larger
size, scope or complexity as multi-year projects. The chart below provides a list of ongoing activities and
those that will likely continue into FY19.
Project Description
Economic Development Programs
Programs include Business Loans, Neighborhood Storefront
Improvements. Business Technical Assistance and Salem Main
Streets Initiative.
Housing Programs
Included are First-Time Homebuyers Downpayment Assistance
Program, Housing Rehabilitation Loan Program and Affordable
Housing Programs.
Park, Facilities & Infrastructure
Improvements
Redesign and/or improvements to parks & playgrounds (i.e.
McGlew park, Palmer Cove Park, etc.)
Neighborhood Street & Sidewalk
Improvements
Repaving of streets, installation of curb cuts/crosswalks, and
replacement of sidewalks in eligible neighborhoods.
Downtown Improvements
Infrastructure and public facility improvements to enhance
pedestrian circulation, public art, safety, access and aesthetics
and to compliment ongoing Economic Development activities.
Boston Street Neighborhood
Improvements Infrastructure improvements.
South River Improvements Infrastructure improvements
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Executive Summary
AP-05 Executive Summary - 91.200(c), 91.220(b)
1. Introduction
Each year, the City of Salem receives funds from the U.S. Department of Housing and Urban
Development (HUD) to undertake housing and community development activities. These funds are used
to undertake housing, community and economic development projects and programs that assist low- to
moderate-income individuals, families and neighborhoods. In order to receive these funds, the City must
prepare a Consolidated Plan every five years, as well as annual Action Plans to implement the five-year
plan. Together, the Consolidated Plan and the Annual Action Plans provide a record of how Salem
evaluated its needs and presents a blueprint of how it will use the federal funds to be received . The
Consolidated Plan establishes a vision for attaining a higher quality of life for low- and moderate-income
residents and the annual Action Plan outlines specific activities that work toward accomplishing that
vision. Salem's current Consolidated Plan was completed in 2015, along with the Fiscal Year 2016 Action
Plan (Year 1).
This document is the City of Salem's Action Plan for Fiscal Year 2019 (Year 4). It describes the activities
that the City will undertake in the next fiscal year (July 1, 2018-June 30, 2019) with Community
Development Block Grant (CDBG) and Home Investment Partnership (HOME) funds.
Community Development Block Grant (CDBG) funds are used to benefit low- and moderate-income
persons or to prevent or eliminate slums or blight in Salem through a variety of community
development programs. CDBG is a formula-based program designed to develop viable urban
communities by providing decent housing, a suitable living environment and expanded economic
opportunities for persons of low- and moderate-income.
In addition, Salem is a member of the North Shore HOME Consortium and receives an allocation of
Home Investment Partnership (HOME) funds. HOME funds are dedicated solely for housing programs,
and can be used to fund a wide range of activities that build, buy and/or rehabilitate affordable housing
for rent or home ownership. The City of Salem is one of thirty member communities in the North Shore
HOME Consortium.
These funds can be used for projects or programs undertaken by the City or by organizations engaged by
the City.
The complete FY19 Action Plan, with cover, table of contents, introduction and appendices will be
located at www.salem.com.
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2. Summarize the objectives and outcomes identified in the Plan
In 2006, HUD devised a means to uniformly measure accomplishments funded through its housing and
community development programs. In doing so, HUD determined that activities should meet one of
three specific objectives and three outcomes. They are:
Objectives
Activities must meet one of the following three objectives:
Suitable Living Environment - In general, this objective relates to activities that benefit communities,
families or individuals by addressing issues in their living environment.
Decent Housing - Activities found under this objective cover the wide range of housing possible under
HOME or CDBG. This objective focuses on housing programs where the purpose of the program is to
meet individual family or community needs and not programs where housing is an element of a larger
effort. Such programs should be reported under Suitable Living Environment.
Creating Economic Opportunities - This objective applies to economic development, commercial
revitalization or job creation activities.
Outcomes
Activities must work to achieve one of three outcomes as follows:
Availability/Accessibility - This outcome category applies to activities that make services, infrastructure,
public services, public facilities, housing, or shelter available or accessible to low- and moderate-income
people, including persons with disabilities. In this category, accessibility does not refer only to physical
barriers, but also to making the affordable basics of daily living available and accessible to low and
moderate income people where they live.
Affordability - This outcome category applies to activities that provide affordability in a variety of ways
in the lives of low- and moderate-income people. It can include the creation or maintenance of
affordable housing, basic infrastructure hook-ups, or services such as transportation and day care.
Sustainability - Promoting Livable or Viable Communities - This outcome applies to projects where the
activity or activities are aimed at improving communities or neighborhoods, helping to make them
livable or viable by providing benefit to persons of low- and moderate-income or by removing or
eliminating slums or blighted areas.
The table summarizes the proposed projects’ objectives and outcomes for FY19.
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Objectives and Outcomes
3. Evaluation of past performance
During the many years of Salem’s CDBG Program, the City has made significant improvements to the
City’s physical and social environment for its low- and moderate-income residents. The CDBG program
has had a strong impact in Salem, as seen through the numerous homes rehabilitated, neighborhood
facilities and infrastructure improved, businesses strengthened, jobs created and families served
through our public service agencies.
The annual Consolidated Annual Performance and Evaluation Report (CAPER) provides an analysis of the
accomplishments and progress the City has made toward meeting the goals and objectives laid out in its
Five Year Consolidated Plan. The FY18 CAPER, for the current fiscal year, will be available by September
30, 2018. The most recent CAPER, for FY17, evaluated the second fiscal year of the current Five Year
Consolidated Plan. HUD calculated that 97.9% of CDBG funds spent in FY17 directly benefited low- and
moderate-income persons. The FY17 CAPER is available at the City of Salem Department of Planning and
Community Development (DPCD), the Salem Public Library and on the City’s website at
https://www.salem.com/sites/salemma/files/uploads/caperfy17finalcomplete.pdf.
The chart illustrates FY17 spending by category, as a percentage of overall CDBG and HOME
expenditures.
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4. Summary of Citizen Participation Process and consultation process
As part of the process in developing the 2015 Consolidated Plan, public input was sought from residents,
businesses, social service organizations and various stakeholders. A series of nine community meetings
and focus groups were held throughout the city and targeted various neighborhoods and populations.
Individual stakeholder interviews were conducted along with an online survey in English and Spanish.
The result was a comprehensive strategy for the use of Salem’s federal housing and community
development funds for July 2015 through June 2020 .
Identifying the needs of the community is an on-going process. Each year, the City holds additional
public hearings and comment periods to review those goals and to make specific recommendations for
programs and initiatives to be undertaken in a given year.
For the fourth year Action Plan, citizen participation included a public hearing in January, 2018 and the
collection of written comment. In order to include broad public participation, outreach to participate
included an English/Spanish legal notice in the Salem News. An English/Spanish public notice was
posted at City Hall and City Hall Annex, was sent to the Salem Public Library, Salem Council on Aging and
the Salem Housing Authority for posting, was provided to all City Councillors, was placed on the City’s
website and was mailed to various social service agencies and neighborhood associations, as well as the
Citizens Advisory Committee members. A press release was sent to the Salem News, Salem Gazette and
other media. An English/Spanish Community Bulletin Board request was posted with Salem Access
Television.
The City publicizes the availability of the draft Action Plan and the date/time of the public hearing and
the public comment period in several ways, targeting residents, businesses, social service organizations
and civic groups. An English/Spanish Community Bulletin Board request was provided to Salem Access
Affordable Housing,
$277,915.93 , 25%
Public Services,
$152,865.02 , 14%
Economic
Development,
$160,062.81 , 14%
Neighborhood
Improvements,
$319,571.74 , 28%
Planning &
Administration,
$214,406.68 , 19%
FY17 CDBG & HOME Expenditures by Category
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Television. An English/Spanish legal ad was published in the Salem News indicating the availability of
plans and providing notice of the 30 day comment period and scheduled public hearing. English/Spanish
notices were posted at City Hall and City Hall Annex and on www.salem.com. Notices were provided to
the Salem Public Library, Salem Council on Aging and the Salem Housing Authority, and were e-mailed or
mailed to several social service agencies, neighborhood associations and Citizens Advisory Committee
members. The notices were also emailed to the Salem H.O.P.E. distribution list. A press release was sent
to the Salem News and the Salem Gazette and other media.
Copies of the plans were provided to the Salem Housing Authority and Salem Public Library for public
viewing and copies were available at the Department of Planning & Community Development. Copies of
the plan were provided to the members of the Citizens Advisory Committee via email. The plan was
made available for download on www.salem.com.
Copies of the draft plans were available for attendees of the public hearing. Copies of the draft plans
were provided to the Salem City Council. The City Council approved the submission of the Application
for Federal Assistance on May 24, 2018.
Public hearing minutes are located in the Appendix.
5. Summary of public comments
On January 18, 2018 a public meeting was held for all interested persons at City offices at 120
Washington Street. Spanish translation was available. A public participation guidebook was provided to
all attendees. There were seven attendees. Comments summarized:
Skyrocketing rents and incomes not keeping up are biggest struggle, particularly for disabled on
a fixed incomes without subsidies.
Lack of public housing and people on waiting list for years.
Positive support for CDBG.
Need for infrastructure improvements and small business assistance for low-income businesses
and minority immigrant entrepreneurs
Minutes of the public hearing are located in the Appendix, along with a copy of a written submission.
The Draft Action Plan was made available for a 30 day public comment from May 17, 2018 through June
15, 2018.
A second public hearing was held for all interested persons at City offices at 98 Washington Street on
May 31, 2018. However, there were no attendees present. A written submission is included in the
Appendix.
6. Summary of comments or views not accepted and the reasons for not accepting them
All comments and views were taken into consideration in preparation of this Action Plan. Prior to the
development of the draft plan, the DPCD received on letter of written comment from a non-profit
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agency proposing that 100% of economic development and neighborhood improvement funding be
used for programs, services, activities and events in the low-income tracts and not in the downtown,
which the writer did not characterize as having blight. The City supports the request for ED and
neighborhood improvement funding to low-income tracts and, in FY19, has targeted funds toward a
Small Business Engagement Program in the Point Neighborhood to be administered through the non-
profit. However, we also support assistance to the downtown (re-established as a slum/blight area in
2013), whose businesses employ many of our lower income residents. In FY17, CDBG assistance was
provided to the Salem Main Streets Program which documented 8 new LMI jobs and assistance to 6
new, 37 existing and 7 prospective business (including 34 micro-enterprises). Our small business loan
program documented 8 new jobs (7 to LMI persons).
Following release of the draft plan, the DPCD received one letter of written comment from
neighborhood association representative advocating for more funding to be allocated to affordable
housing programs, such as rental assistance, development of affordable units with a Salem resident
preference, rehab assistance for property owners who maintain affordable units, assistance for eligible
first time homebuyers, development of lease to own programs, etc. Also recommended was the
organization of a housing summit with stakeholders, for and non-profit developers, housing authority,
City officials and residents. The City notes that while it is not amending its FY19 funding
recommendations, clarification of funds being carried over from the current fiscal year will provide a
clearer picture of available funding for affordable housing programs. There is approximately $138,000 in
CDBG funds available for housing rehabilitation and first time homebuyers that will be carried over.
Rental assistance through HOME has increased from $56,000 in FY18 to $75,000 in FY19. In addition,
existing rental assistance contracts that will carry over exceed $107,000. For development of affordable
housing, non-profits usually need a local match for their complex financing packages. A local CDBG or
HOME match is typically $50,000. Each year, CDBG and/or HOME funds are set aside to be available for
potential projects. In this regard, there is currently $40,000 in CDBG funds and approximately $23,000 in
HOME funds available and will be carried over, in addition to the $50,000 in HOME funds set aside in
FY19. Also, the City sets aside a minimum of 10% of its available Community Preservation Act funding for
affordable housing. In the past five years, this has translated into four projects (completed, underway or
awaiting City Council approval), for a total of 109 units utilizing a total of $383,155 in CPA funding. Salem
was recently selected to receive a $59,000 housing planning grant from MassHousing which will be used
to begin to implement the vision of the city’s recent “Imagine Salem” planning process by studying
neighborhood mixed use zoning, conducting a citywide public engagement campaign around affordable
housing needs, and advancing a new inclusionary zoning ordinance. The project will support our efforts
to meet new housing demand, estimated by the Metropolitan Area Planning Council, of 2,700 new
housing units by the year 2030. Mayor Driscoll also reconvened the City’s dormant Affordable Housing
Trust Fund Board with a renewed focus on investigating policy changes that might help remedy housing
challenges facing the community. These two efforts will serve as a housing agenda to help address some
of the writer’s concerns and recommendations.
7
7. Summary
The Federal funding that Salem will receive for FY19 includes $1,053,238 in CDBG funds, an estimated
$162,324 in HOME funds and a projected $105,000 in program income. Total proposed expenditures
based on current estimates of funding to be available is $1,320,562.
Many activities leverage funding from other sources to maximize the impact of the federal dollars the
city receives. Together, these resources fund a wide range of activities designed to develop and
maintain affordable housing, improve neighborhood public facilities, provide economic opportunities,
improve access for people with disabilities, provide critical public services, assist people who are
homeless, and prevent homelessness. The City bases its funding allocations on needs identified,
proposed activities and accomplishments to meet those needs and estimated funding needed to reach
the goals and accomplishment levels.
The pie chart illustrates the city’s proposed FY19 spending by category, as a percentage of estimated
CDBG and HOME funds. It is estimated that at least 70 percent of the FY19 CDBG funding and 100
percent of the HOME funding will be used for activities that benefit persons of low- and moderate-
income.
Typically, the City identifies activities to be funded from a specific year’s resources, but for some
projects, such as multi-year funding commitments or construction projects, the activity may be
completed in the following fiscal year or undertaken over several fiscal years. It is not uncommon for the
City to have projects that are ongoing from a previous fiscal year.
Economic
Development,
$190,000 , 14%
Affordable Housing,
$362,040 , 27%
Neighborhood
Improvements,
$363,175 , 28%
Planning &
Administration,
$231,647 , 18%
Public Services,
$173,700 , 13%
PY19 Proposed Expenditures (CDBG & HOME)
8
PR-05 Lead & Responsible Agencies - 91.200(b)
1. Agency/entity responsible for preparing/administering the Consolidated Plan
The following are the agencies/entities responsible for preparing the Consolidated Plan and
those responsible for administration of each grant program and funding so urce.
Agency Role Name Department/Agency
CDBG Administrator SALEM Department of Planning &
Community Development
Table 1 – Responsible Agencies
Consolidated Plan Public Contact Information
For inquiries or to send written comment contact:
City of Salem
Department of Planning & Community Development
98 Washington Street
Salem, MA 01970
Att: Jane A. Guy, Assistant Community Development Director
T: 978-619-5685
E: jguy@salem.com
9
AP-10 Consultation - 91.100, 91.200(b), 91.215(l)
1. Introduction
The City of Salem uses CDBG funds to support specific projects and initiatives that are needed by its
residents and that meet HUD’s national goals and objectives. Identifying the needs of the community is
an on-going process.
In 2014, the City of Salem retained Community Opportunities Group, Inc. (COG) to prepare its Five Year
Consolidated Plan (covering city Fiscal Years 2016-2020) and first year Action Plan (FY16). In developing
the Consolidated Plan, a series of nine community meetings and focus groups were held throughout the
city, including a public hearing. The meetings were held at the Salem Housing Authority, at
neighborhood meetings within specific wards with large low- and moderate-income (LMI) populations,
in the City Hall offices, at community organizations, and at Salem State University to reach broad
population. The focus groups targeted persons with disabilities, housing providers, businesses and
seniors. Individual stakeholder interviews were conducted with city staff, social service providers,
residents, business owners, and other persons and organizations familiar with local needs.
In addition, COG interviewed and consulted with staff from provider agencies who serve Salem
residents, both located in and outside of Salem. Also, an on-line survey (in Spanish and English)
generated 318 responses. The purpose of this process was to obtain an understanding of the
population’s needs and the resources available to address the needs, as well to gain an understanding of
gaps of needed programs and services. This process also served to assist the City in determining how
HUD, along with other federal and state and private funds could be used most effectively. While many of
the various local and regional agencies have a good awareness of the existence of other agencies and
their respective programs and services, the consultation process helped to refresh inter-agency
coordination.
In May, 2015, after months of public hearings and public comment, the City adopted the Five Year
Consolidated Plan, highlighting the community development needs and goals for July 2015– June 2020.
Each year, the City holds additional public hearings and comment periods to review those goals and to
make specific recommendations for programs and initiatives to be undertaken in a given year. The result
is the annual Action Plan, designed to put into action the goals and strategies established in the
Consolidated Plan.
It is important to note that the Action Plan is not a budget, but rather a planning tool that outlines the
priorities and activities that the City will undertake to address housing, community and economic
development needs. Proposed activities must meet HUD’s eligibility rules, and must be consistent with
the Consolidated Plan. The City identifies estimated costs for each proposed activity included in this
document. During the year, should the cost of the proposed activities change, these values can be
adjusted. In addition, the City can reallocate unused funds to assist new programs that may be
10
developed during the course of the year, or to supplement existing activities that require additional
funding.
Provide a concise summary of the jurisdiction’s activities to enhance coordination between
public and assisted housing providers and private and governmental health, mental health
and service agencies (91.215(l)).
The City works cooperatively with private housing providers and private and governmental health,
mental health, and service agencies and other interested parties to implement its Consolidated Plan.
The DPCD leads Salem H.O.P.E. (Human Organization Partnership Effort), a networking group of human
service agencies that serves Salem residents. H.O.P.E. provides an opportunity for agencies to learn
about the services being provided by other agencies in order to fill in gaps, coordinate efforts and avoid
duplication of services. All human service agencies are invited to attend the quarterly Steering
Committee breakfast meetings held at rotating agency locations. Through this program, agency
representatives are (re-)introduced to each other and exchange information, announcements and
updates.
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.
Proposed development sites or demolition or disposition of existing public housing developments must
follow established regulatory procedures administered by City agencies. Some of these, such as the
Board of Appeal and Planning Board have staff support from the DPCD.
The City also works with nonprofit agencies to administer social service activities. The City issues annual
Requests for Proposals (RFP) for public services, housing services, and economic development funding to
undertake priority programs outlined in the Consolidated Plan. Additionally, the City cooperates and
coordinates with other agencies and funding sources to support specific activities. Examples of these
include MassHousing’s “Get the Lead Out” and Massachusetts Housing Partnership’s “Soft Second
Mortgage” programs.
The City of Peabody is the lead community for the North Shore HOME Consortium. Salem works with
the consortium to coordinate the implementation of its HOME-funded programs. Salem also works with
local CHDOs and CDCs to carry out priority activities.
The City also issues an annual RFP to municipal departments to request funding to undertake public
facility and infrastructure improvements in LMI and/or slum/blight neighborhoods.
11
Describe coordination with the Continuum of Care and efforts to address the needs of
homeless persons (particularly chronically homeless individuals and families, families with
children, veterans, and unaccompanied youth) and persons at risk of homelessness.
Homeless needs in the area are primarily serviced through the Gloucester/Haverhill/Salem/Essex
County Continuum of Care (CoC), referred to as the North Shore Continuum of Care Alliance. The lead
entity is the City of Peabody, which also oversees the North Shore HOME Consortium. The CoC receives
funds through the McKinney-Vento program, which are distributed directly to area organizations, such
as Salem-based Lifebridge.
NSCAP coordinates the North Shore Housing Action Group (NSHAG), which is a regional network of
providers and organizations who work to address the needs of those who are homeless or at risk of
becoming homeless with the aim to enhance coordination and communication among providers.
Salem uses its CDBG funds to address homeless needs and conduct homelessness prevention activities
through an annual housing/public service funding award process. Funded programs for homeless may
include rental down payment (first/last/security) or tenant based rental assistance, homelessness
prevention emergency assistance, medical or outreach services. NSCAP, Salvation Army, Catholic
Charities and Citizens Inn, among others, administer the services.
In 2014, the Mayors of Salem and Beverly created a task force to better address homelessness. Included
were representatives of city departments and service agencies. In February, 2017, Salem, Beverly and
Peabody executed an inter-regional MOU on homelessness, which included a commitment to support
the production of permanent supportive housing for lower income families and individuals at risk of
homelessness in each participating community over 5 years (2017-2022), which would result in 100
family and 60 individual units.
In July, 2017, Salem held a Public Dialogue to involve residents, business owners, community groups,
and homeless individuals in a conversation on how the community can collectively address
homelessness. A presentation introduced the Collaborative of Hope and outlined existing statistics and
practices, along with new strategies. Resulting efforts included:
Added police patrols and training (i.e. the distribution of Homeless Solutions & Resources: A
Police Officer’s Guide to Policing the Community).
Funded with CDBG, outreach workers on call out of the Salem Police Department in partnership
with North Shore Community Health, to connect homeless with health and other services.
Establishing hope@salem.com to report non-emergency transient or homeless issues.
Monthly meetings of organization representatives (i.e. City of Salem, Salem Police Dept., North
Shore Community Health Center, Lifebridge, NSCAP and the North Shore Workforce Investment
Board).
High Risk Homeless Task Force, where service providers review the cases of high-risk individuals
and work to address individual needs.
12
Launching the ChangeIt campaign, an alternative giving option for people to “text to give”.
Donors text Salem to 50555 to make a $5 donation, with the dual goal to raise donations for
programs and decrease panhandling, which often goes to feed addictions or other unhealthy
behavior.
Another public meeting was held in April, 2018. Included were updated calls for service statistics (that
resulted in adjusted patrol schedules), information regarding housing being made available to homeless
persons, outreach caseworker's summary of the types of assistance provided to approximately 70
homeless individuals, discussion of potential day programs (which helps reduce loitering by homeless
individuals, while providing a comfortable space for access to services) and the formation of community
coalitions.
Describe consultation with the Continuum(s) of Care that serves the jurisdiction’s area in
determining how to allocate ESG funds, develop performance standards for and evaluate
outcomes of projects and activities assisted by ESG funds, and develop funding, policies and
procedures for the operation and administration of HMIS
No community or agency within Salem’s jurisdiction receives a direct award of ESG funds.
2. Agencies, groups, organizations and others who participated in the process and
consultations
See Table 2 starting on next page.
13
Table 2 – Agencies, groups, organizations who participated
1 Agency/Group/Organization NORTH SHORE COMMUNITY ACTION PROGRAM (NSCAP)
Agency/Group/Organization Type Services - Housing
Services-Children
Services-Elderly Persons
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Market Analysis
Anti-poverty Strategy
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
For the Five Year Consolidated Plan, Deric LePard of North Shore Community
Action Program (NSCAP) was consulted via phone interview. He provided
information which was incorporated into the Needs Analysis and Market Analysis.
NSCAP will continue to coordinate with the city to implement strategies that
provide community services. For the FY 19 Action Plan, Deric LePard was present
at the Public Hearing and provided comment on current needs. He stated that the
biggest struggle is the skyrocketing rents and incomes that are not keeping up
with the rents, which is especially difficult for disabled persons on fixed incomes
without subsidies. He stated that CDBG funds help with back rent when a
household misses a paycheck or when an emergency occurs, which can preserve
the tenancy. All comments are considered during the development of the plan.
2 Agency/Group/Organization INDEPENDENT LIVING CENTER OF THE NORTH SHORE & CAPE ANN, INC.
Agency/Group/Organization Type Services-Persons with Disabilities
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Non-Homeless Special Needs
Market Analysis
14
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
For the Consolidated Plan, Mary Margaret Moore of the Independent Living
Center of the North Shore and Cape Anne participated in focus groups in the
public participation process. Information provided by the organization was
incorporated in the Needs Analysis and Market Analysis. For the FY19 Action Plan,
Lisa Orgettas and Deborah Barber were present at the public hearing and provided
comment on current needs. They stated that there is a lack of public housing and
that people are on waiting lists for years. Rents are incredibly expensive forcing
people to live out of cars or couch-hop. All comments are considered during the
development of the plan.
3 Agency/Group/Organization Brookhouse Home for Women
Agency/Group/Organization Type Services-Elderly Persons
What section of the Plan was addressed by
Consultation?
Non-Homeless Special Needs
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
For the FY19 Action Plan, Martha Ryan and Helen Gifford were present at the
Public Hearing and provided comment on current needs. They state that the
Brookhouse Home is for indigent women who could not afford to live elsewhere
and that there is a need for upgrades to improve the quality of life for the women
residing there. All comments are considered during the development of the plan.
4 Agency/Group/Organization Salem Housing Authority
Agency/Group/Organization Type PHA
What section of the Plan was addressed by
Consultation?
Public Housing Needs
Market Analysis
Other Actions in FY19 Action Plan
15
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
For the Consolidated Plan, the Salem Housing Authority was consulted via meeting
and phone interview to determine the agency's most pressing needs. In addition,
the 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. Information provided by the SHA was incorporated throughout the
Consolidated Plan. For the FY 19 Action Plan, the SHA was consulted to update
information provided during the Consolidated Plan process and last year's Action
Plan and CAPER process.
5 Agency/Group/Organization North Shore Community Development Coalition
Agency/Group/Organization Type Housing
Regional organization
Planning organization
Community Development
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Non-Homeless Special Needs
Market Analysis
Economic Development
Anti-poverty Strategy
16
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
For the Consolidated Plan, the North Shore Community Development Coalition
provided input through focus group meetings and interviews, and contributed
data for the Needs Analysis and Market Analysis. NSCDC will continue to
coordinate with the City of Salem to carry out projects in implementation of the
Strategic Plan. For the FY19 Action Plan, NSCDC was consulted to update
information provided during the Consolidated Plan process and last year's Action
Plan and CAPER process. Also, Rosario Ubiera-Minaya, was present at the Public
Hearing to provide comment on current needs. She requested that CDBG
continue to support the Family Resource Stability Program. She noted that the
agency conducts the majority of its work in the Point Neighborhood, the largest
lower income area in Salem, which has many needs, including infrastructure, as
well as small business assistance for low-income business owners and minority
immigrant entrepreneurs. In addition, the agency provided a written comment
letter at the start of the process (copy in Appendix). All comments are considered
during the development of the plan.
Identify any Agency Types not consulted and provide rationale for not consulting
For the Five Year Consolidated Plan, to the City’s knowledge, it consulted with all relevant agency types. There were a few individual agencies for
which contact was attempted but were unable to reach.
Other local/regional/state/federal planning efforts considered when preparing the Plan
Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of Care City of Peabody
Salem DPCD works directly with Peabody and member agencies in implementation
of the Strategic Plan to support and enhance its existing programs that address at-
risk and homeless families.
17
Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
North Shore HOME
Consortium Consolidated
Plan
City of Peabody HOME programs overlap with affordable housing-related goals in the Consolidated
Plan.
Salem Housing Authority
Comprehensive Plan Salem Housing Authority The Salem Housing Authority seeks to address the housing needs of lower-income
residents in Salem.
NSWIB 2015-2017 Strategic
Plan
North Shore Workforce
Investment Board, Inc.
The WIB seeks to create economic opportunities that benefit low- and moderate-
income residents and align with the anti-poverty strategy of the Consolidated
Plan.
Downtown Salem Retail
Market Strategy/Action Plan
Salem Redevelopment
Authority
The SRA seeks to create economic opportunities that benefit low- and moderate-
income residents and to improve the downtown which is designated as a slum &
blight area.
Table 3 - Other local / regional / federal planning efforts
Narrative
The Department of Planning and Community Development (DPCD) coordinates and communicates with other municipal departments, local and
regional agencies, and public and private housing organizations. The DPCD coordinates the Salem H.O.P.E. effort and communicates regularly
with subcontracted agencies delivering social services and subrecipients of federal funds. DPCD also works 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.
18
AP-12 Participation - 91.401, 91.105, 91.200(c)
1. Summary of citizen participation process/Efforts made to broaden citizen participation
Summarize citizen participation process and how it impacted goal-setting
For the fourth year Action Plan, citizen participation included a public hearing in January, 2018 and the
collection of written comment. In order to include broad public participation, outreach to participate
includes an English/Spanish legal notice in the Salem News and an English/Spanish notice was posted at
City Hall & City Hall Annex. Notices were provided to the Salem Public Library, Salem Council on Aging
and the Salem Housing Authority for posting. An English/Spanish Community Bulletin Board request was
posted with Salem Access Television. Notices and a cover letter were provided to all City Councillors. A
press release was sent to the Salem News and the Salem Gazette and other media. The public hearing
notice was also posted to the City’s website and was mailed or emailed to various social service agencies
and neighborhood associations, as well as the Citizens Advisory Committee members. Public hearing
minutes are provided in the Appendix.
The City publicized the availability of the draft Action Plan and the date/time of the public hearing and
the public comment period in several ways in order to obtain broad public comment. Information
regarding the expected draft plan availability and the upcoming comment period and public hearing was
provided to those attending the Salem H.O.P.E. meeting in March, 2018. An English/Spanish Community
Bulletin Board request was provided to Salem Access Television. An English/Spanish legal ad was
published in the Salem News indicating the availability of plans and providing notice of the 30 day
comment period & scheduled public hearing. English/Spanish notices were posted at City Hall and City
Hall Annex and on www.salem.com. Notices were provided to the Salem Public Library, Salem Council
on Aging and the Salem Housing Authority, and were mailed or emailed to several social service
agencies, neighborhood associations and Citizens Advisory Committee members. The notices were also
emailed to the Salem H.O.P.E. distribution list. A press release was sent to the Salem News and the
Salem Gazette and other media.
Copies of the plans were provided to the Salem Housing Authority and Salem Public Library for public
viewing and copies were available at the Department of Planning & Community Development. Copies of
the plan were provided to the members of the Citizens Advisory Committee. The plan was made
available for download on www.salem.com.
The public comment period commenced on May 17, 2018 and ended on June 15, 2018. A public hearing
was held on May 31, 2018 at City Hall Annex.
Copies of the draft plans were provided to the Salem City Council. The City Council approved submission
of the Application for Federal Assistance on May 24, 2018.
19
Citizen Participation Outreach
Sort Order Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
1 Public Meeting
Non-English
Speaking - Specify
other language:
Spanish
Non-
targeted/broad
community
City Councillors,
Citizens Advisory
Committee, public
service agencies
On January 18, 2018
a public meeting was
held for all interested
persons at City
offices at 120
Washington Street.
Spanish translation
was provided. A
public participation
guidebook was
provided to all
attendees. There
were seven
attendees.
Skyrocketing rents
and incomes not
keeping up are
biggest struggle,
particularly for
disabled on fixed
incomes without
subsidies. Lack of
public housing and
people on waiting
list for years.
Positive support for
CDBG. Need for
infrastructure
improvements and
small business
assistance for low-
income businesses
and minority
immigrant
entrepreneurs.
All comments and
views were taken into
consideration in
preparation of this
Action Plan. The City
continues to fund
housing projects to add
affordable units,
provide emergency
funds to help avoid
eviction, provide
neighborhood
infrastructure and
public facility
improvements and
various public service
programs including
services to assist with
housing (including
housing assistance for
disabled individuals).
CDBG also funds
business loans and
storefront
improvements for
small businesses.
20
Sort Order Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
2 Newspaper Ad
Non-English
Speaking - Specify
other language:
Spanish
Non-
targeted/broad
community
City Councillors,
Citizens Advisory
Committee, public
service agencies
See summary of
citizen participation
above for full
description of
newspaper ads,
public notices and
press releases issued
- both at the start of
the Action Plan
process and upon
availability of the
Draft FY19 Action
Plan.
Written comment
from the CEO of a
non-profit agency
proposing that
100% of economic
development and
neighborhood
improvement
funding be used to
support programs,
services, activities
and events in the
low-income tracts
of Salem and not in
the downtown,
which the writer
did not characterize
as having blight.
All comments and
views were taken into
consideration in
preparation of this
Action Plan. In FY17,
CDBG assistance was
provided to the Salem
Main Streets Program
which documented 8
new LMI jobs, plus
assistance to 6 new, 37
existing and 7
prospective business
(including 34 micro-
enterprises). Our small
business loan program
documented 8 new
jobs (7 to LMI persons).
While we support the
request for ED and
neighborhood
improvement funding
to low-income tracts,
we also support
assistance to the
downtown (re-
established as a
slum/blight area in
2013), whose
businesses employ
many of our lower
income residents.
21
Sort Order Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
3 Public Meeting
Non-English
Speaking - Specify
other language:
Spanish
Non-
targeted/broad
community
City Councillors,
Citizens Advisory
Committee, public
service agencies
On May 31, 2018 a
public meeting was
held for all interested
persons at City
offices at 98
Washington Street.
Spanish translation
was available. Copies
of the Draft Action
Plan was available.
There were no
attendees.
N/A N/A
22
Sort Order Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
4 Newspaper Ad
Non-English
Speaking - Specify
other language:
Spanish
Non-
targeted/broad
community
City Councillors,
Citizens Advisory
Committee, public
service agencies
See summary of
citizen participation
above for full
description of
newspaper ads,
public notices and
press releases issued
- both at the start of
the Action Plan
process and upon
availability of the
Draft FY19 Action
Plan.
Written comment
was provided from
a representative of
a neighborhood
association
advocating for
more funding to be
allocated to
affordable housing
programs, such as
rental assistance,
development of
affordable units,
financial rehab
assistance for
property owners
who maintain
affordable units,
financial assistance
for eligible first
time homebuyers,
development of
lease to own
programs, etc. Also
recommended was
the organization of
a housing summit
with stakeholders,
for and non-profit
developers,
housing authority,
City officials, and
residents.
FY18 CDBG/HOME
funds remain for
housing rehabilitation
and first time
homebuyer programs,
rental assistance and
affordable housing to
add to the
CDBG/HOME funds set
aside in FY19. 10% of
the City’s CPA funds
are set aside annually
for affordable housing.
Salem will receive a
housing planning grant
to study neighborhood
mixed use zoning,
conduct a citywide
public engagement
campaign around
affordable housing
needs, and advance a
new inclusionary
zoning ordinance. The
Affordable Housing
Trust Fund Board has
been reconvened to
focus on investigating
policy changes that
might help remedy
housing challenges
facing the community.
Table 4 – Citizen Participation Outreach
23
Expected Resources
AP-15 Expected Resources – 91.420(b), 91.220(c) (1, 2)
Introduction
The City of Salem receives Community Development Block Grant (CDBG) funds from HUD to benefit low-
and moderate-income persons or to prevent or eliminate slums or blight in Salem through a variety of
community development programs. CDBG is a formula-based program designed to develop viable urban
communities by providing decent housing, a suitable living environment, and expanded economic
opportunities for persons of low- and moderate-income.
As one of thirty member communicites of the North Shore HOME Consortium, Salem receives an
allocation of Home Investment Partnership (HOME) funds from HUD. HOME funds are dedicated solely
for housing programs, and can be used to fund a wide range of activities that build, buy and/or
rehabilitate affordable housing for rent or home ownership. The Consortium, through its lead
community of Peabody, submits a Consolidated Plan for operating the HOME program. The City of
Salem will not use HOME funds to refinance any existing debt secured by multi-family housing
developments.
Along with HUD funds, Salem's housing and economic loan programs generate program income, which
the City directs to existing or new programs as needed. Income is generated as loans are repaid or
recaptured from an assisted property or business. The City typically receives program income funds each
year and they help extend its ability to support CDBG-eligible activities.
The Federal funding that Salem will receive for FY19 includes $1,053,238 in CDBG entitlement funds.
Additional funds include an estimated $162,324 in HOME funds and approximately $105,000 in program
income (from housing and ED loans and loan interest). Some prior year resources may be available in
FY19, such as unspent/unprogrammed dollars. However, it is unknown how much will be carried over
until after FY18 closes.
In addition to these resources, many activities leverage funding from other government and private
sources to maximize the impact of the federal dollars the city receives.
The Community Preservation Act (CPA) was adopted by Salem voters in 2012. It established a local
dedicated fund for the purpose of open space, historic preservation, outdoor recreation and community
housing projects. It is financed by a property tax surcharge of 1%, along with annual matching funds
from the statewide CPA Trust Fund. These funds can be used for a variety of purposes, including
activities that acquire, create, preserve, support and rehabilitate/restore housing for low- and
moderate-income households. An appointed committee recommends how the funds will be utilized
each year. Massachusetts CPA regulations require that a minimum of 10% of annual CPA revenues be
24
set aside or spent for each of the program areas, including affordable housing, open space and
recreation, and historic preservation, with the remaining 70% to be allocated to any one or more of
these program areas. In the Five Year Consolidated Plan, the city projected an estimated $531,000
annually from both local and matching funds in future years (based on FY16 funding estimates).
Several housing and community development programs are carried out by non-city agencies that
operate through a variety of funding resources. Together, these resources fund a wide range of activities
designed to develop and maintain affordable housing, improve neighborhood public facilities, provide
economic opportunities, improve access for people with disabilities, provide critical public services,
assist people who are homeless, and prevent homelessness. Salem will continue to work with
community and regional partners to identify further funding opportunities that can be used to support
affordable housing and other objectives served by CDBG programs, such as the anticipated National
Housing Trust Fund which is expected to be available through the Commonwealth of Massachusetts
sometime in the near future.
25
Anticipated Resources
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 4 Expected
Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services 1,053,238 105,000 0 1,158,238 2,106,476
CDBG is a formula-based program that
provides decent housing, a suitable living
environment, and expanded economic
opportunities for persons with low- and
moderate income.
Housing
Trust
Fund
public -
federal
Acquisition
Housing
Other
0 0 0 0 0
Housing Trust Fund - Salem anticipates that
funding from the National Housing Trust
Fund will become available through the
State sometime in the near future. Salem
would consider using these funds for real
property acquisition, site improvements
and other development hard costs, related
soft costs, or if eligible, for supportive
services for housing previously homeless
individuals or persons or households with
special needs.
26
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 4 Expected
Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
Other public -
federal
Acquisition
Housing
162,324 0 0 162,324 324,648
HOME - Expected allocation of Home
Investment Partnership (HOME) funds
through North Shore HOME Consortium.
Funds are dedicated solely for housing
programs, and can be used to fund a wide
range of activities that build, buy, and/or
rehabilitate affordable housing for rent or
home ownership. The City of Salem is one
of 30 member communities in the North
Shore Home Consortium. On behalf of the
member communities, the Consortium,
through its lead community of Peabody,
submits a Consolidated Plan for operating
the HOME program.
Other public -
local
Acquisition
Housing
Public
Improvements
736,047 0 0 736,047 1388,797
Community Preservation Act - A surcharge
on the local property tax will generate
approximately $583,750 annually with an
estimated State match of $69,000 annually,
which will be dedicated for affordable
housing, open space, recreation, and
historic preservation projects.
Other public -
local
Admin and
Planning 558,500 0 0 558,500 1117000
City funds for Administration & Planning
Other public -
local
Public
Improvements
675,000 0 0 675,000 825,000
City of Salem Capital Improvement Program
(estimate only – allocated annually in June
to specific projects)
Table 5 - Expected Resources – Priority Table
27
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how
matching requirements will be satisfied
In FY17, CDBG funds leveraged an estimated $39.90 in funds from other sources for every dollar of CDBG funding. The following are
the funds typically leveraged:
First Time Homebuyer Program: matching funds and financing were projected for approximately $131,500 annually. In FY1 7,
homebuyers provided $74,999 in private funds, as well as obtained $1,087,685 in financing from a primary lender.
Housing development projects by non-profit developers combine Low-Income Housing Tax Credits and other state, federal
funding, as well as private fundraising, grants, financing, and program fees. The $50,000 in Salem CDBG funds for Congress
Street Residences (loan closed in 2016) leveraged over $35 million in other funds including AHTF, CATNHP, HIF, HOME and
HSF in subordinate DHCD State debt, private equity, public equity, CPA funds, Eastern Bank direct bond purchase,
construction loans, seller note, and Salem HOME funds. The 27 SRO units at Harbor and Lafayette Homes (financing closed
March, 2018) will have total development cost of $7.4M, of which $50,000 is HOME and $100,000 is CPA.
State programs such as Get the Lead Out have been used to assist in home rehabilitation.
The Salem Main Streets Program leverages funds through business contributions and donations, as well as program income
from events: $20,000-$80,000 annually.
The City will continue to pursue grant opportunities such as the Working Cities Challenge to support economic development
and job training.
Community Preservation Act funding ($253,005 toward housing to date) has been utilized for 3 affordable housing project for
a total of 88 housing units. One project is complete, one is near completion and one recently closed on it remaining
financing.
Salem is a Gateway City, making it eligible for certain State funds.
The City’s Capital Improvement Program averages $100-150,000 annually on CDBG-funded projects.
Other sources include the City's General Fund, State Chapter 91 and various federal, state and private grant or loan programs
for brownfields, parks, and infrastructure improvements. Examples of these include Parkland Acquisitions and Renovations
for Communities (PARC), Environmental Protection Agency, National Endowment for the A rts, MassDevelopment
Brownfields Assessment Program, MA Office of Coastal Zone Management, MassWorks, and the Massachusetts Preservation
Projects Fund. The City may also seek state grants including Green Communities, the Cultural Facilities Fund, and the
Gateway Cities Park Program.
Most subrecipient agencies use CDBG as a portion of their overall activity budgets. Examples of several agency funding
sources are provided in the appendix. Other funding sources include federal and state grants, private grants and donations,
and program income.
The City provides about $550,000 annually for planning and administration funds.
28
Additional planning funds and technical assistance have been obtained through Massachusetts Historical Commission and
Metropolitan Area Planning Council.
Salem was recently awarded a $59,000 MassHousing grant to implement the City's Imagine Salem vision by studying
neighborhood mixed use zoning, conducting a citywide public engagement campaign around affordable housing needs and
advancing a new inclusionary zoning ordinance.
The City is also considering submitting an application for a Section 108 loan in FY19, in order to undertake comprehensive
street improvements (street paving, sidewalk replacement, curbcuts and crosswalk installations) in th e Point Neighborhood.
A listing of anticipated leveraged funds for FY19 is found in the Appendix, including anticipated funding resources for the C ity of
Salem and several key organizations.
If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the ne eds
identified in the plan
None have been identified at this time.
29
Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e)
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
1 Housing
Rehabilitation
Programs
2015 2019 Affordable
Housing
Affordable Housing CDBG:
$159,716
HOME:
$37,324
Homeowner Housing
Rehabilitated: 3 Household
Housing Unit
2 Affordable Housing 2015 2019 Affordable
Housing
Affordable Housing HOME:
$50,000
Rental units rehabilitated:
Household Housing Unit
3 First Time
Homebuyer
Program
2015 2019 Affordable
Housing
Affordable Housing
Homeownership
Assistance
CDBG:
$40,000
Direct Financial Assistance to
Homebuyers: 5 Households
Assisted
4 Small Business
Financial Assistance
Programs
2015 2019 Non-Housing
Community
Development
Economic
Development
Jobs created/retained:
5 Business Technical
Assistance
2015 2019 Non-Housing
Community
Development
Economic
Development
CDBG:
$190,000
Jobs created/retained: 11 Jobs
Businesses assisted: 42 Businesses
Assisted
6 Community
Support Services
2015 2019 Homeless
Non-Homeless
Special Needs
Public Services CDBG:
$173,700
Public service activities other than
Low/Moderate Income Housing
Benefit: 8200 Persons Assisted
7 Neighborhood
Improvements
Activities
2015 2019 Non-Homeless
Special Needs
Neighborhood Public
Facilities and
Infrastructure
CDBG:
$353,175
Public Facility or Infrastructure
Activities other than
Low/Moderate Income Housing
Benefit: 8265 Persons Assisted
30
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
8 Downtown
Improvements
2015 2019 Non-Housing
Community
Development
Downtown Public
Facilities and
Infrastructure
CDBG:
$10,000
Public Facility or Infrastructure
Activities other than
Low/Moderate Income Housing
Benefit: 5055 Persons Assisted
Table 6 - Goals Summary
Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide
affordable housing as defined by HOME 91.215(b)
In addition to goals noted in the table, the City will utilize $75,000 in HOME funds to provide Tenant Based Rental Assistance targeted to an
estimated 7 at-risk homeless individuals. These will be reported separately by the North Shore HOME Consortium.
Note: The City of Salem has also targeted $231,647 in CDBG funds for General Program Administration (salary, benefits, non-salary expenses,
planning studies & reports, grant matching funds) to provide for CDBG program oversight.
Goal Descriptions
See Table on next page.
31
1 Goal Name Housing Rehabilitation Programs
Goal
Description
The majority of Salem’s housing stock pre-dates 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. In response to
this issue, the City administers a Housing Rehabilitation Loan Program (funded with both CDBG and HOME funds) to provide
low-interest loans to owners of single and multi-family properties to address cost-prohibitive health and safety issues.
Through the rehabilitation of existing housing stock, more homeowners, as well as tenants residing in rental units, can live in
decent housing. The City has expanded the program to investor-owners with low- to moderate-income tenants, to address
code compliance and health and safety issues and to maintain affordable, quality rental properties and to discourage the
conversion of affordable rental units into market rate condominiums.
In June, 2007, the North Shore HOME Consortium voted to adopt the federal Energy Star Standards. The implementation of
this new policy for the use of HOME funds began in October, 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. Homeowners are also referred to NSCAP’s weatherization program,
where they can get energy-efficiency work undertaken, and then utilize Salem’s loan program, thereby reducing the
homeowner’s loan burden.
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, Salem 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.
2 Goal Name Affordable Housing
Goal
Description
Salem utilizes CDBG, HOME and CPA funds to provide a local match for non-profit development projects that result in long-
term and permanent affordable housing, often by creating new affordable housing units through the conversion of old,
abandoned or underutilized buildings and. A pool of funds for affordable housing is often set aside to provide resources for
the City or a nonprofit partner, such as the North Shore CDC or Harborlight Community Partners, to take advantage of
opportunities that arise to acquire available abandoned, derelict properties and turn them back into decent, affordable
homes. The local match shows City support so that these agencies can leverage financing from various other funders. Salem
will continue to work with nonprofit partners, as well as to negotiate on a case-by-case basis with private developers, to
facilitate the creation of new affordable housing units.
32
3 Goal Name First Time Homebuyer Program
Goal
Description
The City continues its goal to provide families with the opportunity to own their first home through the First-Time
Homebuyer Downpayment Assistance Loan Program (FTHB). In addition to basic downpayment assistance, the program
offers a $1,000 increase over the maximum loan amount for homeowners who complete First-Time Homebuyer Counseling
through a qualified training program.
In addition to administering the First-Time Homebuyer Downpayment Assistance Loan Program, DPCD staff provides
assistance to coordinate other resources for down payment assistance, such as homeownership programs offered by
MassHousing, as well as supporting first time homebuyer education workshops provided by various organizations.
4 Goal Name Small Business Financial Assistance Programs
Goal
Description
Businesses often need additional assistance and more creative financing options than may be offered by banks. Even the very
best innovative new business idea often has difficulty filling the “gap” between what they can invest and what banks will
loan, versus the cost of the project. Without capital, new equipment or storefront improvements, some of the best small
businesses can fail. The Salem Business Loan Program offers expanded financing opportunities for local entrepreneurs, while
creating jobs and revitalizing the city. The program provides these types of loans:
Microenterprise Assistance - provides loans to low- to moderate-income entrepreneurs to assist with their
microenterprise business (5 or fewer full-time employees, including the owner)
Commercial Revitalization - provides loans to business owners in the downtown and eligible neighborhood districts
to assist with the exterior rehabilitation of their business and/or to correct code violations
Special Economic Development - provides loans to business owners throughout the city in exchange for job creation
and/or job retention for low- and moderate-income people.
Low-interest loans for commercial, industrial or mixed-use projects help create and retain jobs while improving the
appearance of neighborhoods and promoting economic growth. The DPCD will continue to work with business owners to
help finance a small project or to assist with gap financing of larger projects.
The Storefront Improvement Program helps to improve the physical appearance of districts by advocating for appropriate
design and historic preservation. By offering small business loans and grants toward new signage and façade improvements,
the City is helping to enhance our historic neighborhood business districts with financial incentives to Salem business and
property owners. Furthermore, the City has developed the City of Salem Commercial Design Guidelines to help business and
property owners with appropriate design. Copies are free at the DPCD office or on the City’s website.
33
5 Goal Name Business Technical Assistance
Goal
Description
Often small business owners need some degree of technical assistance to help them with managing or growing their
business. The needs of local entrepreneurs range from business planning, drawing up financial statements, or navigating the
city permitting process.
The City’s Economic Development Planner assists with new business location or existing business relocation, walks new
businesses through permitting processes, coordinates available loan programs, coordinates the development of tax
increment financing agreements, coordinates the development of neighborhood and economic development plans, manages
the Salem Main Streets contract and liaises between businesses and the Salem Redevelopment Authority, as well as with
state economic development agencies to provide businesses with access to tax credits and other incentives. The City works in
collaboration with several agencies to improve economic opportunity in Salem by providing technical assistance to
businesses. The Salem Main Streets Initiative, Salem Partnership, Salem Chamber of Commerce, Destination Salem, SBA
Small Business Development Center and Salem State University Assistance Corporation’s Enterprise Center each work in
cooperation with the City to support local business, with some of the programs targeted toward low-income, minority and
female entrepreneurs. The City offers a “Doing Business in Salem Guide” that is available on the City’s website.
6 Goal Name Community Support Services
Goal
Description
Along with housing services to help provide decent, affordable housing and economic development activities to help provide
good jobs at good wages, individuals and families may have additional needs that are specific to their household. The Five
Year Consolidated Plan identified the need for various social service programs to primarily benefit Salem’s low- to moderate-
income population and those with special needs (i.e. physically or mentally disabled, elderly or frail elderly, youth, non-
English speaking residents, persons living with HIV/AIDS, substance abusers and homeless persons and families). Each year,
Salem sets aside funds for social service programs to address these special needs.
Through a Request for Proposals process, the city makes awards to nonprofit service organizations that offer such services.
Public services eligible for funding include, but are not limited to, employment, crime prevention, child care, health,
substance abuse, education, fair housing counseling, energy conservation, recreation programs, food programs and services
for senior citizens. Target populations include, but are not limited to, persons with HIV/AIDS, abused children, battered
spouses, elderly and frail elderly, minorities, non-English speaking residents, residents of public assisted housing, persons
who are mentally ill or mentally retarded, substance abusers, youth and persons with disabilities. Funding proposals received
are available for viewing at the DPCD.
34
7 Goal Name Neighborhood Improvements Activities
Goal
Description
Residents depend on neighborhood infrastructure and public facility improvements to make the city the livable community
that it is. By continually investing in neighborhoods, Salem strives to be the best place it can be for people to live and work. In
FY19, the City will continue the investment in eligible neighborhoods through public infrastructure and traffic improvements
(i.e. street paving, new sidewalks, curbcuts/crosswalks, traffic/pedestrian improvements and the removal of architectural
barriers), public art and through neighborhood improvement initiatives (e.g., parks/playgrounds, lighting, trash receptacles,
tree planting, signage and bike paths).
The City will continue to invest in efforts that strengthen its public facilities, including improvements to fire stations. Salem’s
goal to have a new senior center will be realized in the Fall of 2018.
8 Goal Name Downtown Improvements
Goal
Description
Healthy vibrant downtown and neighborhood commercial districts are essential to Salem’s overall economic health. Salem
will continue to work toward the implementation of the Salem Downtown Renewal Plan, including historic preservation,
public art and other improvements that help discourage neglect and disinvestment and eliminate slums/blight.
Table 7 – Goal Descriptions
35
AP-35 Projects - 91.420, 91.220(d)
Introduction - Salem will carry out the following programs to address the goals identified in the Five
Year Consolidated Plan:
Housing Rehabilitation Program - Offer financial and technical assistance to eligible
homeowners and investor-owners to improve housing units, including improvements for
accessibility.
Affordable Housing - Support for local non-profit housing organizations and CHDOs seeking to
acquire, create, preserve, and/or renovate affordable units.
First Time Homebuyer Program - Financial assistance to eligible households in the form of loans
for downpayments and closing costs.
Small Business Financial Assistance Programs - Business Loan Program and Storefront
Improvement Program for new, emerging or expanding small businesses that create or retain
jobs for low- and moderate-income workers or eliminate or prevent blight, address building
code violations and/or improve access, and/or leverage private investment.
Business Technical Assistance - Technical assistance, training, design guidance, location service
and referrals for owners of microenterprises or businesses that create or retain jobs for low- and
moderate-income workers. Program delivery for the business loan program, oversight of the
Salem Redevelopment Authority and funding for the Salem Main Streets Program and the
micro-enterprise programs offered by Salem State University’s Enterprise Center.
Neighborhood Improvement Activities - Public facility and infrastructure improvements that
enhance the quality of life in eligible neighborhoods, such as, parks/playgrounds, tree planting,
lighting, signage, bike paths, streets, sidewalks, crosswalks, pedestrian safety, trash receptacles,
traffic calming, accessibility, public art, senior center, fire stations, schools, etc.
Community Support Services - Grants to nonprofit agencies for social services programs such as
homelessness and foreclosure prevention, housing education, food distribution, homeless
services, job training, senior transportation, childcare, crime prevention, immigrant services
(cultural orientation and acclimation), ESL and citizenship education, youth activities, senior
services, adult education (financial literacy, computer training, etc.) and substance abuse
prevention, and other programs that advance self-sufficiency, reduce household financial
burdens or improve the quality of life, as well as other special services (legal assistance, program
navigation guidance). Also to support programs that provide supplemental education and/or
engagement programs to increase public school students’ academic achievement.
Planning & Administration - Planning and general administration necessary to provide the tools
needed to manage the CDBG program, as well as the development of plans and studies and the
provision of public information.
Downtown Improvements - Public facilities and infrastructure improvements that are located in
Salem’s slum/blight area and/or that benefit people with disabilities, such as lighting, signage,
pedestrian safety, streets, sidewalks, crosswalks, trash receptacles, accessibility, public art
and/or tree planting..
Note: In addition to goals noted in the table, the City will utilize $75,000 in HOME funds to provide
Tenant Based Rental Assistance targeted to an estimated 7 at-risk homeless individuals. These will be
reported separately by the North Shore HOME Consortium.
36
# Project Name
1 Affordable Housing
2 Housing Rehabilitation Programs
3 First Time Homebuyer Program
4 Small Business Financial Assistance Programs
5 Business Technical Assistance
6 Neighborhood Improvement Activities
7 Community Support Services
8 Planning & Administration
9 Downtown/South River Improvements
Table 8 – Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved
needs
During the development of the Five Year Consolidated Plan, Salem residents identified the community
development needs and goals for Fiscal Years 2016-2020. The priority needs identified during the
extensive public process included the need for affordable housing, economic development,
neighborhood improvement, and social services. The City has based its funding allocations on the
identified needs. The proposed activities and expected accomplishments are intended to address those
needs, with the goals and accomplishments calibrated to projected funding levels. At least 70% of the
FY19 CDBG funding will be used for activities that benefit low- and moderate-income persons.
Affordable Housing - Approximately 17.2% of CDBG funding (including estimated program
income) in FY19 will be allocated to affordable housing, along with 100% of Salem’s HOME
funding allocation through the North Shore Home Consortium. This funding will be used to
facilitate rehabilitation, acquisition and rental assistance for low- and moderate-income
households.
Economic Development – The City intends to allocate approximately 16.4% of its CDBG funding
for FY19 to efforts to revitalize commercial districts, improve exterior building facades, and
assist new and existing business owners (including microenterprises), through financial and
technical assistance.
Social Services – In Fy19, the City intends to allocate the maximum allowable amount of 15% to
support a broad range of social service programs that are consistent with the needs and goals
identified in the Five Year Consolidated Plan.
Public Facilities and Infrastructure Improvements - Approximately 31.4% of the City’s FY19
CDBG funding will be allocated towards public facilities and infrastructure improvements
projects in LMI neighborhoods and in the Downtown Urban Renewal District.
Program Administration - Not more than 20% will be allocated for the necessary general
administration costs for program oversight and coordination, including plans and studies.
37
AP-38 Project Summary
Project
Summary
Information1
Project Name Affordable Housing
Target Area
Goals Supported Affordable Housing
Needs Addressed Affordable Housing
Funding Community Preservation Act: $130,150
HOME: $50,000
Description Support local non-profit housing organizations and CHDOs seeking to acquire, create,
preserve and/or renovate affordable units.
Target Date 6/28/2019
Estimate the number and
type of families that will
benefit from the proposed
activities
Salem will use carried over CDBG and HOME funding to complete the activities noted in last
year's Action Plan (FY18), along with additional HOME funding from FY19. These funds have
not been associated with a specific development project. The goals indicator for FY18 was
set at a minimum of 2. CPA funds will assist 21 families.
Location Description The location of the minimum of 2 units utilizing this year's funds has not been determined.
Planned Activities
2 Project Name Housing Rehabilitation Programs
Target Area
Goals Supported Housing Rehabilitation Programs
Needs Addressed Affordable Housing
Funding CDBG: $159,716
HOME: $37,324
38
Description Offer financial and technical assistance to eligible homeowners and investor-owners to
improve housing units, including improvements for accessibility, through the Housing
Rehabilitation Loan Program.
Target Date 6/28/2019
Estimate the number and
type of families that will
benefit from the proposed
activities
It is estimated that a minimum of three families of low to moderate income will be assisted.
This activity will also use carried over funding from the prior year to complete additional
units.
Location Description Addresses will be determined from applications for assistance that will be submitted by
homeowners.
Planned Activities Housing Rehabilitation Loan Program
Inspectional Services
Rehabilitation Administration
3 Project Name First Time Homebuyer Program
Target Area
Goals Supported First Time Homebuyer Program
Needs Addressed Homeownership Assistance
Funding CDBG: $40,000
Description Financial assistance to eligible households in the form of loans for downpayments and
closing costs through the First Time Homebuyer Downpayment assistance Loan Program.
Target Date 6/28/2019
Estimate the number and
type of families that will
benefit from the proposed
activities
A minimum of 5 low- to moderate-income households will be assisted with the purchasing
of their first home.
39
Location Description Locations to be determined upon receipt of program applications from eligible households.
Planned Activities Loan pool for downpayment assistance loan program. As indiviudal activities are set up for
first time homebuyer laons, the loan pool is reduced.
4 Project Name Small Business Financial Assistance Programs
Target Area
Goals Supported Small Business Financial Assistance Programs
Needs Addressed Economic Development
Funding $0
Description Provide a Business Loan Program and a Storefront Improvement Program for new, emerging
or expanding small businesses that create or retain jobs for low- and moderate-income
workers, address building code violations and/or handicapped access, and/or leverage
private investment.
Target Date 6/28/2019
Estimate the number and
type of families that will
benefit from the proposed
activities
It is estimated that one business will be assisted, creating a minimum of 2 jobs using carried
over CDBG funds from FY18. Goal outcome indicators are noted in the FY18 plan.
Location Description Point Neighborhood, Downtown Salem (slum/blight area) or other eligible LMI commercial
areas.
Planned Activities Small Business Loan Program
Storefront Improvement Program
5 Project Name Business Technical Assistance
Target Area
Goals Supported Business Technical Assistance
Needs Addressed Economic Development
40
Funding CDBG: $190,000
Description Offer technical assistance, training, design guidance, location service and referrals for
owners of micro-enterprises or businesses that create or retain jobs for low- and moderate-
income workers. Provide program delivery for the business loan program, technical support
to the Salem Redevelopment Authority and funding for the Salem Main Streets Program and
North Shore CDC’s Small Business Engagement Program.
Target Date 6/28/2019
Estimate the number and
type of families that will
benefit from the proposed
activities
It is estimated that a minimum of eleven LMI jobs will be created, as well as a minimum of
forty-two businesses assisted.
Location Description Point Neighborhood, Downtown (slum/blight area) and other LMI comemrical areas.
Planned Activities Salem Main Streets Program
Economic Development Program Delivery
North Shore CDC Small Business Engagement Program
6 Project Name Neighborhood Improvement Activities
Target Area
Goals Supported Neighborhood Improvements Activities
Needs Addressed Neighborhood Public Facilities and Infrastructure
Funding CDBG: $353,175
City of Salem Capital Improvement Program: $650,000
Community Preservation Act: $130,150
Description Undertake public facility and infrastructure improvements that enhance the quality of life in
eligible neighborhoods, such as, parks/playgrounds, tree planting, lighting, signage, bike
paths, streets, sidewalks, crosswalks, pedestrian access & safety, trash receptacles, traffic
calming, public art, accessibility, senior center, fire stations, schools, etc.
41
Target Date 6/28/2019
Estimate the number and
type of families that will
benefit from the proposed
activities
Projects will be undertaken in LMI neighborhoods. Per the 2010 U.S. Census, it is estimated
that Salem has 18,395 or 46.2% residents that are LMI persons. LMI neighborhoods have
12,565 persons of which 8,265 or 65.8% are LMI persons.
Location Description All activities will be undertaken in eligible LMI neighborhoods.
Planned Activities Street & Pedestrian Improvements
Tree Planting
Park/playground Improvements
Lighting Installations
Point Neighborhood Imrpovemetns
Council on Aging Improvements
Public Art
7 Project Name Community Support Services
Target Area
Goals Supported Community Support Services
Needs Addressed Public Services
Funding CDBG: $173,700
42
Description Provide grants to nonprofit agencies for social service programs such as homelessness or
foreclosure prevention, housing education, food distribution, homeless services, job
training, senior transportation, child care, crime prevention, immigrant service, ESL and
citizenship education, youth activities, senior services and activities, adult education
(financial literacy, computer train, etc.) and substance abuse prevention, and other
programs that advance self-sufficiency, reduce household financial burdens or improve the
quality of life, as well as other special services (legal assistance, program navigation
guidance). Also to support programs that provide supplemental education and/or
engagement programs to increase public school students' academic achievement.
Target Date 6/28/2019
Estimate the number and
type of families that will
benefit from the proposed
activities
Approximately 8,200 persons will be assisted through approximately 26 social service
programs.
Location Description Not applicable
43
Planned Activities Grants for approximately 26 social service programs.
Fiscal Year 2019 Social Services Funding Proposals Received:
Located within or steps from the Point Neighborhood:
Catholic Charities - Homeless Prevention Program
HAWC – Legal Services for Domestic Violence Services
Independent Living Center of the North Shore and Cape Ann, Inc. - Housing Assistance
Services
Leap for Education - College Ready Program
North Shore CDC - Family Resource Center
North Shore Community Health – Increasing Access to Behavioral and Medical Services to
Homeless Individuals
Salem Community Child Care – Kindergarten Afterschool Program
Salem Police Department - Point Targeted Patrols
VOCES - Hispanic Education Program
Open Door Immigration Program – Increasing Community Access to Immigration Legal
Services
Located in Downtown Salem:
Lifebridge - Medical & Outreach Supportive Services
Salem YMCA - Afterschool Program
Charter Street Tenant Association – Sunday Brunch Program
Located within Salem:
Aspire Developmental Services, Inc. – Early Intervention Program
Boys & Girls Club of Greater Salem - Power Hour
Eastgate Christian Fellowship - Joseph’s Storehouse Food Pantry
Inversant – Salem Families College Savings Program
Salem Council on Aging - Senior Transportation Program
Salem Council on Aging –Creative Arts Program for Senior Citizens
Salem Council on Aging –Muscle Strength & Endurance Class for Senior Citizens
Salem Park, Recreation & Community Services – Enrichment Playground Programs
(Palmer Cove and Memorial Parks)
44
The North Shore Moving Market – Food Delivery for Elderly, Disabled and Disadvantaged
The Salvation Army - Homeless Prevention Program
Wellspring House - MediClerk Job Training Program
Located outside Salem (but available to Salem residents):
Citizens Inn, Inc. – Haven from Hunger Food Pantry
North Shore Community Action Programs, Inc. - Homeless Prevention Program
8 Project Name Planning & Administration
Target Area
Goals Supported Housing Rehabilitation Programs
Affordable Housing
First Time Homebuyer Program
Small Business Financial Assistance Programs
Business Technical Assistance
Community Support Services
Neighborhood Improvements Activities
Downtown Improvements
Needs Addressed Affordable Housing
Homeownership Assistance
Economic Development
Public Services
Neighborhood Public Facilities and Infrastructure
Downtown Public Facilities and Infrastructure
Funding CDBG: $231,647
City of Salem: $558,500
45
Description Cover costs associated with planning and general administration in order to provide the
tools needed to manage the CDBG program, as well as the development of plans and
studies and the provision of public information. This includes funds to match grant funds
being provided by the Massachusetts Historical Commission Survey and Planning Grant
Program and/or other grant programs.
Target Date 6/28/2019
Estimate the number and
type of families that will
benefit from the proposed
activities
Not applicable
Location Description Not applicable
Planned Activities General Program Administration
Planning Studies
Provision of public information
9 Project Name Downtown Improvements
Target Area
Goals Supported Downtown Improvements
Needs Addressed Downtown Public Facilities and Infrastructure
Funding CDBG: $10,000
Description Undertake infrastructure and public facility improvements to support Salem's slum/blight
are (downtown) and complement ongoing Economic Development activities. Projects may
include street & sidewalk improvements, pedestrian circulation, safety, access and
aesthetics, accessibility improvements, tree planting, trash receptacles, traffic
improvements, lighting, signage and open space improvements, as well as improvements to
public facilities and public infrastructure. The City may also look at various locations in the
downtown for consideration of public art projects.
46
Target Date 6/28/2019
Estimate the number and
type of families that will
benefit from the proposed
activities
5055 households are located within the block groups that comprise the Downtown
(slum/blight area):
2045003 – pop 915
2045002 – pop 1320
2042002 – pop 905
2042003 – pop 900
2043001 – pop 1015
Location Description Salem's downtown (slum/blight area) is just south of the North River and west of Salem
Harbor. The area is bordered by dense, mostly residential areas on all sides. It is bounded
roughly by Bridge Street to the north, Peabody Street to the south, Summer Street to the
west, and the Salem Common to the east. The MBTA's Salem commuter rail station parking
lot, located just north of Bridge Street, is included within the Downtown.
Planned Activities Slum/blight area improvements as the City's contribution to economic activity and private
investment.
47
AP-50 Geographic Distribution - 91.420, 91.220(f)
Description of the geographic areas of the entitlement (including areas of low -income and
minority concentration) where assistance will be directed
A map of the 2010 Census block groups (see Appendix) is used to identify low- to moderate-income
areas. According to the 2010 Census, areas of lower income concentration are the Point Neighborhood;
the neighborhood area along Boston Street; the area bordered by Jackson and Wilson Streets and
Jefferson and Highland Avenues; South Salem between Lafayette, Washington and Canal Streets; a
neighborhood bordered by North, School, Balcomb, Cushing, and Highland Streets; and the
neighborhood bordered by Winter, Bridge, Arbella and Briggs Streets and encompassing Lee Fort
Terrace, Szetela Lane and Settlers Way in Salem Neck. There is overlap between the Downtown and the
Point Neighborhood, which also has the highest concentration of minority residents.
Geographic Distribution
Target Area Percentage of Funds
Table 9 - Geographic Distribution
Rationale for the priorities for allocating investments geographically
The City typically supports programs that benefit low- and moderate-income households or specific
population groups such as senior citizens, disabled persons and minorities. Although some programs
support the needs of these populations throughout the city, many activities are targeted to specific
neighborhoods with concentrations of low- and moderate-income households. 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 addition, the City has also undertaken improvements in the Downtown Urban Renewal
Area, which is designated as a Slum and Blight District.
Discussion
In accordance with CDBG regulations, the City can undertake specific activities, such as street, sidewalk
and playground improvements in the low- and moderate-income neighborhoods or in neighborhoods
meeting the definition of “slums and blight.” However, recognizing that needs are not solely located in
distressed neighborhoods, the City also offers programs that may be accessed by people living outside
these areas. For example, the Housing Rehabilitation Loan Program, First-Time Homebuyer
Downpayment Assistance Loan 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.
48
AP-75 Barriers to affordable housing -91.420, 91.220(j)
Introduction
Throughout the process of gathering input through public meetings and through interviews with service
providers, business associations, and housing professionals during the 5-Year Consolidated Plan process,
the City did not find that its housing policies create impediments to fair housing. Compared to other
cities and towns within the region, Salem offers a greater diversity of housing, and a higher proportion
of affordable housing overall, having exceeded the State’s 10% affordable housing goal. Nonetheless,
several factors contribute to the difficulty of increasing the availability of affordable housing, including a
shortage of land, environmental conditions, constraints on development finance, and the lack of
regulatory tools to require affordable housing in new developments. Like other communities, Salem is
not in control of all of these barriers.
Actions it planned to remove or ameliorate the negative effects of public policies that serve
as barriers to affordable housing such as land use controls, tax policies affecting land, zoning
ordinances, building codes, fees and charges, growth limitations, and policies affecting the
return on residential investment
Salem’s zoning does not require developers to provide affordable housing via an inclusionary zoning
ordinance. As a result, the redevelopment of obsolete residential and commercial space for new
condominium or rental housing has produced higher-end units that are not affordable to a large
percentage of the City’s existing residents. While the infusion of more people and disposable income in
the downtown area supports local economic development goals, a lack of a sufficient supply of housing
for low-, moderate-, and middle-income households may create negative social and economic
consequences for the City as a whole. The City will:
Continue to negotiate the inclusion of affordable units in private housing developments.
Continue to utilize Massachusetts’ Chapter 40B Comprehensive Permit program which enables
the City to waive local zoning requirements including density, height, and use, for developments
to create new affordable housing.
Utilize local funding through the Affordable Housing Trust Fund and the Community
Preservation Act to facilitate affordable housing development.
Salem was recently selected to receive a $59,000 housing planning grant from MassHousing
which will be used to begin to implement the vision of the city’s recent “Imagine Salem”
planning process by studying neighborhood mixed use zoning, conducting a citywide public
engagement campaign around affordable housing needs, and advancing a new inclusionary
zoning ordinance. The project will support Salem’s efforts to meet new housing demand,
estimated by the Metropolitan Area Planning Council, of 2,700 new housing units by the year
2030. This is part of the Mayor’s focus on affordable housing, which also includes reconvening
the City’s dormant Affordable Housing Trust Fund Board with a renewed focus on investigating
policy changes that might help remedy housing challenges facing the community.
49
Discussion
In 2015, the City was awarded $30,000 from the MA Dept. of Housing and Economic Development’s
Planning Assistance Toward Housing (PATH) grant program to fund and facilitate the process of
developing a 40R Smart Growth Overlay District (SGOD) in the Point Neighborhood.
The idea was that adoption would help encourage commercial and housing diversity in mixed-use
developments at high minimum densities, by being allowed as-of-right rather than on a special permit
basis. The process was undertaken and while the neighborhood was supportive of portions of the
proposed recommendations, a 40R district was found to not be the right fit for the neighborhood. The
City will explore utilizing some of the recommendations through a potential overlay district.
50
AP-85 Other Actions - 91.420, 91.220(k)
Introduction
This section addresses other actions that the City of Salem will undertake including:
Actions planned to address obstacles to meeting underserved needs;
Actions planned to foster and maintain affordable housing;
Actions planned to reduce lead-based paint hazards;
Actions planned to reduce the number of poverty-level families;
Actions planned to develop institutional structure; and
Actions planned to enhance coordination between public and private hosuing and social service
agencies.
Actions planned to address obstacles to meeting underserved needs
The Five Year Consolidated Plan outlines several barriers to housing affordability and reducing the
impacts of poverty in Salem: the cost of permitting and developing land with environmental constraints,
the lack of regulatory tools to require or encourage affordable housing in new developments, the lack of
resources to finance affordable housing development, 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. Nevertheless, Salem has identified
several strategies to overcome these obstacles in its goals to increase affordable housing, provide a
decent living environment, and increase economic opportunities for low- and moderate-income
residents.
The City will continue to support the creation of new affordable housing units, neighborhood
improvement projects, and anti-poverty strategies through partnership with non-profit entities,
supplementing state and federal subsidies with local funding, and case-by-case negotiation with
private developers.
The City will continue to utilize tools such as the Chapter 40B Comprehensive Permit program to
exempt developments which create affordable housing from local land use regulations.
Salem was recently selected to receive a $59,000 housing planning grant from MassHousing
which will be used to begin to implement the vision of the city’s recent “Imagine Salem”
planning process by studying neighborhood mixed use zoning, conducting a citywide public
engagement campaign around affordable housing needs, and advancing a new inclusionary
zoning ordinance. The project will support our efforts to meet new housing demand, estimated
by the Metropolitan Area Planning Council, of 2,700 new housing units by the year 2030. This is
part of the Mayor’s focus on affordable housing, which also includes reconvening the City’s
dormant Affordable Housing Trust Fund Board with a renewed focus on investigating policy
changes that might help remedy housing challenges facing the community.
51
Actions planned to foster and maintain affordable housing
The following summarizes Salem’s strategy to address housing needs, which includes both new housing
production and preserving the existing housing stock for working families. Key components are:
Producing New Housing Units - Working with private and nonprofit developers, such as North
Shore CDC and Harborlight Community Partners, Salem supports the creation of affordable
housing units through the conversion of underutilized buildings and parcels, often assisted with
Salem's CDBG, HOME and/or CPA funds.
Preserving Existing Affordable Units - Salem has several private rental developments with
affordable units utilizing subsidies that will expire after a period of time. The city continues to
negotiate the extension of affordability for expiring subsidized units.
The City negotiates with developers on a case-by-case basis for 10% affordable units.
The City's Community Preservation Act funds require a minimum spending (or reserve) of 10%
of the annual budget on affordable housing projects.
Improving Public Housing -The Salem Housing Authority (SHA) currently administers 1,125
Section 8 vouchers of which 930 are leased units in Salem and 195 are leased in other
communities. The SHA administers 18 vouchers through the DMH program. The SHA also owns
and manages a portfolio of 715 units of public housing for low income elderly, family, and
handicapped residents scattered across the city. Funding to preserve and maintain these
properties is provided by DHCD and HUD. In addition, Community Teamwork, Inc. in Lowell
currently administers the following vouchers in Salem: AHVP (1 mobile), MRVP (36 mobile),
MVRP Project Based Vouchers (9), Mobile Vouchers (145) and Project Based Vouchers (154).
Providing First-Time Homebuyers Assistance - The City provides families with the opportunity to
own their first home through the First-Time Homebuyer Downpayment Assistance Loan
Program. The program also offers an additional $1,000 for homeowners who complete
Homebuyer Counseling. DPCD staff also provide assistance to coordinate other resources for
homebuyers, such as programs offered by MassHousing, as well as supporting first-time
homebuyer education workshops provided by various organizations.
Rehabilitation of Existing Housing - While older homes are integral to Salem’s history and
neighborhood fabric, they require a great deal of maintenance and may not meet current
building codes. In response, the City administers a Housing Rehabilitation Loan Program to
provide low-interest loans to owners of single and multi-family properties to address health and
safety issues. The program was expanded to investor-owners with low- to moderate-income
tenants to maintain affordable, quality rental properties and to discourage the conversion of
affordable rental units into condominiums. Homeowners are also referred to NSCAP’s
weatherization program for energy-efficiency work before utilizing Salem’s loan program,
thereby reducing the homeowner’s loan burden. In addition, the City offers deleading assistance
for homeowners with a lead poisoned child through MassHousing’s Get the Lead Out Program,
which can be combined with the City’s Housing Rehabilitation Loan Program.
Working Regionally to Increase the Supply of Housing - As the housing market is not confined to
city boundaries, ongoing multi-jurisdiction cooperation is needed to address the region’s lack of
affordable housing. No one city or town can, or should, bear the responsibility of providing all of
52
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.
Actions planned to reduce lead-based paint hazards
The Salem Board of Health disseminates information regarding the proper disclosure of lead hazards
upon selling or renting a housing unit and inspects rental units for lead paint hazards. In Salem, a
landlord is required to obtain a Certificate of Fitness inspection when an apartment becomes vacant.
Board of Health personnel conduct this inspection and enforce 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 Massachusetts Childhood Lead-Paint Poisoning Prevention Program is notified of the results of all
Lead Determinations.
In cooperation with the Commonwealth 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 City 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
Salem Housing Rehabilitation Loan and Get the Lead Out Programs, the City provides loan funds for
qualified applicants for lead testing, hazard reduction and abatement activities, and temporary
relocation reimbursements. Lead-based paint hazard control measures are consistent with the 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 Downpayment Assistance Loan Program are given a
copy of the EPA brochure “Protecting Your Family from Lead in Your Home.”
Actions planned to reduce the number of poverty-level families
Salem uses CDBG and other funds to pursue an anti-poverty strategy carried out by the City and a
variety of social service subrecipients. The strategy consists of four components: education, job training,
affordable housing and social services.
Education
An adequate school system is crucial to reducing poverty in future generations. The City has used state
53
funding to renovate and improve its educational facilities and provide school-age children with an
environment conducive to learning. The Salem Public Schools support bilingual classroom settings and
technology-based training that will enable those with lower incomes to improve their job opportunities.
The school choice program gives residents more choices about the school they want their children to
attend, and offers education focused specific skills, such as science and technology and communication
and community service. Salem’s Parent Information Center coordinates the school choice program
designed to improve racial balance within the school systems, and provides information about adult
education programs designed to help low-income families.
The City will continue to support various educational programs for youth, adults, and the Spanish-
speaking population with CDBG funds, which may include Salem Public Schools, and programs
administered by non-profit agencies such as Aspire Developmental Services, Inc., LEAP for Education,
the Boys and Girls Club, Wellspring House, North Shore Community Development Coalition, and VOCES.
Job Training and Employment Resources
Salem collaborates with numerous job training, and workforce development programs in the region
such as The North Shore Career Center and the North Shore Workforce Investment Board.
The City will continue to use CDBG funds to support job training and employment assistance programs
such as the Wellspring House MediClerk Program.
Affordable Housing
Providing adequate, affordable housing for low- and moderate-income residents is critical to the success
of an anti-poverty strategy. City agencies such as the Salem Housing Authority and the DPCD are
committed to providing safe, appropriate, and affordable housing opportunities to very-low, and low-
and moderate-income family, elderly, and disabled households. In addition, many housing providers and
social service agencies work in concert to combat poverty in Salem. The City’s established partnerships
with agencies such as the NSCAP, the North Shore HOME Consortium and the North Shore Community
Development Coalition increase its success at bringing services to lower income residents and
encouraging them to participate in revitalizing their community.
Social Services
Through a competitive funding round, the City of Salem uses CDBG funds to support 20-25 non-profit
social service programs annually. These organizations provide services to help families meet the costs of
living, promote family self-sufficiency, serve special populations and/or provide crisis intervention
assistance – programs seeking to break the cycle of poverty. CDBG funds support several programs
which indirectly assist with housing in many ways such as increased pay (i.e. job training, ESL programs)
and decreased monthly expenditures (i.e. child care, food programs) so households can better afford
rent or mortgages. There are also many non-CDBG funded programs available to Salem residents to help
households overcome various obstacles to self-sufficiency.
54
Actions planned to develop institutional structure
The Department of Planning and Community Development (DPCD) administers the City of Salem
Community Development Program as well as the formula funding received by the North Shore HOME
Consortium for which the City of Peabody is the lead agency. Under the direction of the Director of
Planning and Community Development, the Assistant Community Development Director manages and
monitors Salem’s community development programs.
Salem’s housing programs are administered by the DPCD Housing Coordinator under the direction of the
Director of Planning and Community Development. In addition, local non-profit agencies, CHDOs and
CDCs administer certain housing activities. Many housing activities leverage funds through private
lender financing.
City departments undertake certain CDBG-funded activities, such as the tree planting program, sidewalk
replacement, 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 awarded to organizations that
demonstrate programmatic needs and the capacity to administer the proposed program. The City’s
Assistant Community Development Director coordinates the management of the public service and
housing subcontracts and the Economic Development Planner coordinates the management of the
economic development subcontracts.
In general, DPCD staff carries out the remaining activities, including the hiring of consultants or other
private businesses through established municipal purchasing procedures.
The City’s auditing firm audits Salem’s CDBG program delivery system annually. In addition, HUD staff
conducts periodic reviews and grant monitorings. The City promptly implements recommendations
arising as a result of these reviews. The DPCD continuously works to improve upon its methods and
procedures for the administration of its programs.
Actions planned to enhance coordination between public and private housing and s ocial
service agencies
DPCD will continue to administer Salem H.O.P.E. (Human Organization Partnership Effort), a networking
group of human service agencies that serve Salem residents, offering a forum for agencies to learn
about the services being provided by other agencies in order to fill in gaps, coordinate efforts and avoid
the duplication of services. All human service agency representatives are invited to attend the quarterly
Steering Committee breakfast meetings held at rotating agency locations. Through this program, agency
representatives are introduced to each other and exchange information, announcements and updates.
55
Program Specific Requirements
AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4)
Introduction
Over the past five years, Salem met all timeliness requirements, and program expenditures were
consistent with its Five Year Consolidated Plan and annual Action Plan goals. Funds drawn down are
always used within the year they are received; no program income is carried over.
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the
Projects Table. The following identifies program income that is available for use that is included in
projects to be carried out.
1. The total amount of program income that will have been received before the start of the next
program year and that has not yet been reprogrammed 0
2. The amount of proceeds from section 108 loan guarantees that will be used during the year to
address the priority needs and specific objectives identified in the grantee's strategic plan. 0
3. The amount of surplus funds from urban renewal settlements 0
4. The amount of any grant funds returned to the line of credit for which the planned use has not
been included in a prior statement or plan 0
5. The amount of income from float-funded activities 0
Total Program Income: 0
Other CDBG Requirements
1. The amount of urgent need activities 0
2. The estimated percentage of CDBG funds that will be used for activities that benefit
persons of low and moderate income.Overall Benefit - A consecutive period of one,
two or three years may be used to determine that a minimum overall benefit of 70%
of CDBG funds is used to benefit persons of low and moderate income. Specify the
years covered that include this Annual Action Plan. 70.00%
Discussion
This AP covers July 1, 2018-June 30, 2019 (Salem's FY19, using HUD 2018 funds). We estimate receiving
$105,000 in program income during this program year. All program income received in FY19 will be
reported and spent under FY19. We do not have any lump sum drawdown agreements, nor
reimbursements other than program income, made to the local account, expected to be available during
FY19.
Salem intends to spend at least 70% of CDBG funds to benefit persons of low and moderate income in
FY19. The City of Salem primarily funds activities that serve low- to moderate-income households
(limited clienteles) or activities within majority low- to moderate-income neighborhoods, typically
reaching a percentage of 89% or higher (97.9% in FY17).
Appendix
1 - Map
2 - Application for Federal Funding and Certifications
3 - Other Resources
4 – Citizen Participation Comments
Part 1 - Public Participation Process
Part 2 - Review of Draft Plan
Written Comment Received
Appendix 1 – LMI Map
Appendix 2 - Application for Federal Funding & Certifications
Hard copy - See next page.
IDIS – See separate attachment.
Appendix 3 – Other Resources
This section describes the anticipated resources that assist Salem residents in addition to CDBG and
HOME funds. These include leveraged funding for Salem’s CDBG and HOME activities, financial resources
for Salem’s community partners and other services and resources available to Salem residents.
Financial/Leveraged Resources
Many activities leverage funding from other sources to maximize the impact of the federal dollars the
City receives. In addition to the City, several housing and community development programs are carried
out by non-city agencies that operate through a variety of resources. The tables below include
anticipated funding resources for the City of Salem Department of Planning & Community Development,
While it is not possible to anticipate every source of funding, the table below indicates some of the
sources of funds that CDBG and HOME will likely leverage during FY18. The dollar amounts are best
estimates and do not indicate a minimum or maximum amount that will be leveraged.
We have also included tables for several key organizations, (Salem Housing Authority, North Shore
Community Action Programs, Inc., Lifebridge and North Shore Community Development Coalition). Each
indicates if the funding year that they provided, representing typical leveraged funds.
City of Salem FY19 funding resources/anticipated leveraged funds (includes full amounts applying for,
applied for, awarded or awarded and partially spent) for all programs and project to be undertaken by
the DPCD or in conjunction with other City departments - not just those leveraged with CDBG funds):
Source Amount
Federal Sources
CDBG $1,053,238
HOME $162,324
Program Income $105,000
Subtotal Federal $1,320,562
Federal Sources (Non-CDBG or HOME):
U.S. Dept. of Transportation Passenger Ferry Grant Program $3,400,000
Environmental Protection Agency - Revolving Loan Fund (awarded with
Peabody, MA - for use over 5 years 1-/2014-9/2019)
$950,000
Subtotal Federal $4,350,000
State Sources:
MA Office of Coastal Zone Management Coastal Resilience Grant Program
(expecting to apply)
$150,000
MassHousing Planning for Housing Production $58,887
MA Dept. of Energy Resources Green Communities $249,932
Executive Office of Energy and Environmental Affairs – Subdivision Grant $45,000
MA Dept. of Fish and Game Compensatory Mitigation Project for Collins Cove
Living Shoreline (applied)
$81,500
Massachusetts Cultural Council (awarded for Charter Street Cemetery
Restoration)
$125,000
MS DCR: Recreational Trails Program for Gallows Hill Footbridge (applied) $50,000
Gateway Cities (289 Derby Street construction) $1,100,000
Executive Office of Energy and Environmental Affairs – Parkland Acquisitions and
Renovations for Communities (will be submitting an application)
$400,000
Seaport Economic Council Program (small boat facilities) $1,000,000
EOHED – MassWorks Infrastructure Program FY2016 (awarded for Bridge Street
project through Engineering Dept.)
$3,181,471
MassDevelopment TDI Affiliate District for Congress Street (estimate) $20,000
Essex County Community Foundation – Arts & Culture Grant (expecting to apply) $30,000
MA Office of Travel & Tourism – Artists’ Row Improvement $100,000
Massachusetts Historical Commission – FY18 Survey & Planning Grant (awarded
for South Salem Historic Resources Survey)
$11,500
Subtotal State $6,603,290
Local/City Sources:
Capital Improvement Program (Salem Common Fence, Phase VI and Charter
Street Cemetery Restoration, 289 Derby Street) estimate
$650,000
Capital Improvement Program (Lafayette Park renovation) $25,000
Community Preservation Act (total applications recommended for funding) $644,500
Downtown Improvement Fund (Town Pump Fountain Repair) $3,000
Downtown Improvement fund (alley lighting) $10,000
General Fund (Downtown Study) $50,000
General Fund (Conservation Commission, Historical Commission, Planning
Department, Planning Board, Market Place) – Based on FY18
$868,795
Tufts Health Plan Foundation (Shuttle Study through Council on Aging) $30,000
Subtotal Local/City $2,281,295
Private/Other Sources:
Homebuyer private matching funds (estimate based on FY17) $75,000
Lender financing (estimate based on FY17) $1,087,685
Business leveraged funds (Main Streets estimate based on FY17) $76,637
Subtotal Private/Other $1,239,322
TOTAL $15,794,469
Note: Other sources of funds that may be leveraged, but for which no dollar estimate can reasonably be determined, are
MA Get the Lead Out funds, private mortgages and private donations.
Salem Housing Authority funding sources/anticipated leveraged funds (for year ending September 30,
201):
Source Amount
Federal Sources
U.S. Department of Housing and Urban Development Housing
Assistance Payments
$12,905,616
HUD Capital Fund Program $44,297
HUD Federal Public Subsidy $140,500
Subtotal Federal $13,090,413
State Sources:
MA Dept. of Housing & Community Development 4001 $829,493
MA Dept. of Housing & Community Development MRVP $189,720
MA Dept. of Housing & Community Development Formula Funding $652,763
Subtotal State $1,671,976
Local/City Sources:
$0
Subtotal Local/City $0
Private/Other Sources:
$0
Subtotal Private/Other $0
TOTAL $14,762,389
North Shore Community Development Coalition FY2016 FY2017 (1/1/17-12/31/17)
Actual funding sources/ leveraged funds:
Source Amount
Federal Sources
HOME Funds – Congress Street Residences $100,000
DOL – YouthBuild $378,990
Americorp & WIOA – Youth $49,450
Subtotal Federal $528,440
State Sources
MA Dept. Elementary Secondary Education $178,495
Subtotal State $178,495
Local/City Sources
CDBG Salem $5,000
CDBG Peabody $8,000
Subtotal Private/Other $13,000
Private/Other Sources
Grants/Foundations $2,119,372
Events $84,555
Contributions $47,561
Community Investment Tax Credit $236,575
LISC $0
DHCD – Housing Stabilization Funds Loan $1,450,000
Boston Community Loan Fund $0
Eastern Bank Tax Exempt Bonds $6,840,000
Developer Fee $775,500
Subtotal Private/Other $11,553,563
TOTAL $12,273,498
North Shore CDC funding for real development estate development projects is listed on the next page.
NORTH SHORE CDC: SALEM REAL ESTATE DEVELOPMENT SOURCE SUMMARY 2009-2020
Harbor and
Congress
Street The
Project Name
Palmer
Cove
Salem Point
II
Lafayette
Homes Residences Lighthouses
Lafayette
Housing
Affordable Housing Units 15 77 27 64 46 79
Year Completed 2009 2015 2019 2017 2022 est. 2021 est.
FEDERAL LIHTC 846,995 5,151,000 1,937,458 7,472,103 4,812,269 5,500,000
City/Consortium HOME 450,000 300,000 50,000 150,000 350,000
Community Development Block Grant (CDBG) 50,000
Tax Credit Assistance Program (TCAP)
Federal Historic Tax Credits (FHC) 1,811,000 3,331,332 2,000,000
Federal Subtotal 846,995 7,412,000 2,237,458 10,903,435 4,962,269 7,850,000
STATE Affordable Housing Trust (AHT) 1,211,922 1,000,000 1,000,000 1,050,000
CATNHP 750000
Housing Stabilization Fund (HSF) 1,211,923 700,000 1,450,000 500,000
HPSTF
Facilities Consolidation Fund (FCF) 548,580
State HOME 550,000 550,000
Housing Innovations Fund (HIF) 573,081 230,402 500,000 1,000,000 1,165,000
Danvers State Preservation Fund 182,000
State Low-Income Housing Tax Credits (STC) 1,182,600 2,699,520 2,070,000
State Historic Tax Credits (SHC) 1,221,750 1,254,000 1,500,000
Green Aff Hsg Dev Program
MassHousing Design Grant
Brownfields Redevelopment Fund 55,750
Community-Based Housing 585000
LEAN Multi-family Program 25,995 360,824
State Subtotal 3,727,506 1,507,902 3,408,595 8,314,344 6,670,000 1,500,000
LOCAL Community Preservation Act (CPA) 0 100,000 93,505 250,000 150,000
City of Salem Loans 0 105,898
Local Subtotal 0 105,898 100,000 93,505 250,000 150,000
North Shore Community Action Programs, Inc. FY19 funding resources/projected revenues:
Source Amount
Federal Sources
Emergency Food and Shelter Program 16,000
Subtotal Federal - Direct 16,000
Federal Indirect
LIHEAP (Fuel Assistance) 2,404,000
Community Services Block Grant 350,780
HEARTWAP 170,160
HOME (City of Salem) 30,000
HOME (North Shore HOME Consortium) 145,000
Community Development Block Grant (City of Salem) 9,000
Community Development Block Grant (City of Peabody) 10,000
DOE – Action, Inc. 21,000
Title III Older Americans Act (NESE) 3,000
Title III Older Americans Act (LGSS) 2,500
HOPWA (Lynn Housing Authority & Neighborhood Development) 50,000
Subtotal Federal – Indirect 3,195,440
State Sources
Department of Housing & Community Development 2,896,671
Department of Elementary & Secondary Education 210,618
Subtotal State 4,107,309
Local/City Sources
Peabody Municipal Light Plant 35,000
Danvers Electric 7,000
Trust Fund (Salem) 20,000
Subtotal Local/City 44,000
Private/Other Sources
Donations 145,000
Private Contracts & Grants 65,000
Tuition & Fees 1,542,000
Subtotal Private/Other 1,752,000
TOTAL 9,114,749
Lifebridge FY19 funding sources/anticipated leveraged funds:
Source Amount
Federal Sources
HUD – ESG (Emergency Solutions Grant) $218,313
Subtotal Federal $218,313
State Sources:
DHCD $608,596
Subtotal State $608,596
Local/City Sources:
CDBG $9,800
Subtotal Local/City $9,800
Private/Other Sources:
Donations $350,000
Private Contracts & Grants $210,000
Commercial Income $480,000
Private Client Fees $79,200
Subtotal Private/Other $1,119,200
TOTAL $1,955,909
Services
In addition to financial assistance provided to Salem residents through the City and its community
partners, there are numero us programs and services available to Salem residents. Some are funded
through CDBG. Some non-CDBG funded resources not previously mentioned in this plan include, but
are not limited to:
Greater Lynn Senior Services - THE RIDE
THE RIDE paratransit service provides door-to door, shared-ride transportation to eligible people
who cannot use fixed-route transit (bus, subway, trolley) all or some of the time because of a
physical, cognitive or mental disability. THE RIDE is operated by the Massachusetts Bay
Transportation Authority (MBTA) in compliance with the federal Americans with Disabilities Act
(ADA). THE RIDE in North area of Massachusetts is provided through Greater Lynn Senior Services
(GLSS). GLSS provided 36,699 total trips for Salem residents in FY17, including Ride trips under
GLSS (28,910), Ride trips under The Ride Access Center (3,931) and non -Ride trips (3,858)..
Independent Living Center of the North Shore and Cape Ann, Inc.
The Independent Living Center is a service and advocacy agency for people of all ages who live with
all types of disabilities within City of Salem and 24 other municipalities on the North Shore and
Cape Ann. ILCNSCA is run by and for people with disabilities. The agency is available to provide
information and resources regarding disability related services and programs for people living with
disabilities. The agency assists people with completion of SSI/SSDI, food stamps and various housing
applications. ILCNSCA hosts a monthly “Guide to finding Housing” workshop where staff are available
in a group setting to offer guidance on completing the Standard Universal Application for State
Aided Housing (UHA) used to apply for public housing across Massachusetts. Approximately 100
people annually are assisted in learning about housing opportunities, complete housing applications
(UHA, Section 8 centralized waiting list or regional Section 8 waiting list, and privately operated
subsidized housing opportunities.) Community workshops also provide a variety of information on
how to find affordable, accessible, and available housing with a focus on Salem housing
opportunities, as well as a housing rights workshop to inform persons with disabilities regarding
their rights as tenants, reasonable accommodation requests, as well as what to disclose about
one’s disability when applying and searching for housing.
North Shore Community Development Coalition
The North Shore CDC invests in neighborhoods to create thriving communities, striving to provide
quality affordable housing and foster economic empowerment and community development on
the North Shore. Located in the Point Neighborhood, its residents make up the majority of their
clients. North Shore CDC continues to advance quality programming that offers residents in the
region basic life skills to aid in achieving economic stability and a self -sufficient life. Programming
includes YouthBuild North Shore, Homeownership Training and Counseling, Community English
Program and Family Stability Program. Along with its programming, North Shore CDC provides
bilingual assistance to complete various applications. Annual numbers for FY17 include:
• Financial counseling – 18 workshops; 21 clients served one-on-one counseling
• Housing applications – 47
• First Time Home Buyer – 6 workshops serving 48 clients
• ESL/ELL Classes – 158 residents served
Catholic Charities
Catholic Charities North began more than 95 years ago with initial sites in Salem and Lynn. The
programs at Catholic Charities North strive to prevent hunger and homelessness for local families in
a financial emergency; engage youth in education and employment programs focused on long term
solutions to poverty; and support families in their effort to build safe, nurturing environments for
children. The Salem office, in the Point Neighborhood, offers basic needs, family support, ESL/ELL
classes and counselling services. Just over 50% of Catholic Charities Salem Basic Needs clients
reside in the Point Neighborhood. Budgeting and financial education are offered to all Basic Needs
clients. The agency will also assist with providing information and assistance with applications
upon request.
HAWC
HAWC provides free, confidential services and support to victims of domestic abuse residing in 23
cities and towns on Massachusetts’ North Shore. HAWC services include a 24-hour hotline,
Emergency Shelter, Support Groups, Advocacy & Education, Community Education, and Children’s
Services, including a Parent-Child Trauma Recovery Program. Advocates meet with individuals one-
on-one to support them with identifying their needs and accessing resources. The agency is
located at Shetland Properties in the Point Neighborhood. Last Spring, HAWC's two contracts with
the Department of Public Health for its shelter and community-based programming were renewed
for 11 years of funding, ensuring the agency remains a steadfast resource for survivors for years to
come. HAWC is also celebrating its 40th anniversary in 2018 as the domestic violence agency of the
North Shore.
Citizens Inn
Citizens Inn works on an individual basis to help families and individuals who are experiencing a
housing crisis or food insecurity. Their full spectrum of services provides comprehensive
assistance to each person based on their specific needs. Citizens Inn, now merged with Haven
from Hunger, has served the North Shore for over 35 years. Their programs – Citizens Inn
Between, Citizens Inn Transition, Citizens Inn Homes, and Citizens Inn Haven from Hunger – are
designed to help their clients prepare for and transition to a sustainable life. Through their work,
they not only provide a safe place to stay and a meal on the table, but offer tools to empower
their clients to find permanent solutions to break the patterns of instability in their lives. Nearly
one third of their residents are from Salem and/or find housing in Salem upon exit from
temporary family shelter, while 49% of the food pantry clients at Haven from Hunger are Salem
residents.
North Shore Community Action Program Inc.
North Shore Community Action Programs, Inc. (NSCAP) provides social services that enable low-
income families and individuals to obtain the skills and knowledge they need to become
economically self-sufficient, civically engaged, and to live in dignity and decency. To achieve its
mission, NSCAP provides a range of programs and services in five key areas: Education and Training,
Economic Stabilization, Housing and Homelessness Prevention, Energy Services, and Home Care.
Under Energy Services, NSCAP provides Fuel Assistance to eligible households in Salem. For FY17-
18, 887 Salem families have been determined eligible for $540,019 in benefits.
NSCAP will also assist clients who have case management (i.e. rep payees, shelter clients,
chronically homeless and chronically ill clients, ABE clients, etc.) with preparation of applications for
MassHealth, food stamps/SNAP, Fuel Assistance, Social Security paperwork, etc.
Other agencies/collaborations
At Salem High School, students have the option to choose an elective course that allows them to
build their knowledge of money and how investing works.
New Liberty Charter School provides academic skill, employability and personal stability programs
for homeless and at-risk students, and partners with North Shore CDC to provide a YouthBuild
program..
The Boys and Girls Club of Greater Salem periodically provides a financial literacy program to its
teens through local banks, most recently Salem Five.
Salem State University offers many programs that are open to residents, teachers and Salem High
School students. Along with non-credit classes and programs, the community can enjoy an
award-winning theatrical performance, take advantage of the print and electronic resources
of the library, or bring the family to an exciting athletic event. There are athletic camps and
clinics, a Center for the Arts, the Explorers Institute for Learning & Retirement, along with
part-time degree programs.
Salem is fortunate to also host many State offices, several of which are located in or near the Point
neighborhood. Agency offices in Salem include, but are not limited to, the Salem Juvenile
Court, Probate and Family Court, Transitional Assistance Department, Department of Children
& Families, North Shore Career Center, MA Rehabilitation Commission and the Committee for
Public Counsel – Children and Family Law Division and Youth Advocacy Division.
Links to social service agency websites are located at
http://www.salem.com/planning-and-community-development/pages/dpcd-links
The Independent Living Center also provides an on-line “yellow pages” of resources. It is located at
http://www.ilcnsca.org/yellowpages.php
Appendix 4 – Citizen Participation Comments
Part 1 – Public Participation Process
Public Hearing, 6:00 PM, January 18, 2018
Staff Present: Jane Guy, Assistant Community Development Director
Naomi Francisco, Housing Coordinator & Spanish translator
Attendees: 7, plus 2 city staff
Jane Guy, Assistant Community Development Director opened the Community Development Block
Grant public hearing. Ms. Guy stated that an Action Plan is done every year and that the process is
kicked off by this public hearing, where the public is asked to comment on community needs,
particularly for the low-to-moderate neighborhoods and households, along with ideas as to how to meet
those needs. She stated that the purpose of the meeting is to obtain citizen views on the Action Plan for
the period of July 1, 2018 through June 30, 2019. It is a one year document outlining activities to be
undertaken using CDBG and HOME funding, including activities identified from the 5-Year Consolidated
Plan completed in 2015, as well as any additional activities that are determined to meet any new or
increasing needs and priorities that have since been identified. She stated that the City has not been
notified of its HUD allocation, and for the purposes of the plan, will use an estimate of level funding until
notification of the allocations have been announced.
Deborah Barber from Independent Living Center of the North Shore and Cape Ann, Inc., noted that
funding has been decreasing and asked if this is a sign of the times and re-prioritizing with the
government.
Ms. Guy replied that while there are some members of Congress would like to eliminate CDBG
altogether, there is mostly bipartisan favorability. There is always an attempt to reduce or eliminate
CDBG, while others feel strongly to keep CDBG. She stated that it is important to advocate for CDBG and
is the reason why, for those who get CDBG funding through Public Service contracts, that we ask for
information on who is being served and the outcomes of the programs. This information goes into an
online system to HUD that gets reported out to Congress, so that can see what is being done with the
money, as well as showing funds leveraged.
Ms. Guy stated that for the current fiscal year, Salem received approximately $30,000 less than the
previous year. The highest allocation was in FY96 in the amount of $1,502,000, the lowest was in FY13
with $903,833. For HOME in FY18, the allocated amount was $99,497, down $1,800 from the year
before. The highest allocation for HOME was $215,186 in FY04, and the lowest was $84,612 in FY16.
The City was receiving a little more back in the nineties.
Ms. Guy explained that to utilize CDBG or HOME funds, activities must be considered eligible by HUD’s
definition and must primarily assist low, very low, moderate income households or neighborhoods. Ms.
Guy pointed to the neighborhoods highlighted on the map that are considered low to moderate income,
based on the U.S. census. The map can potentially change every ten years. Ms. Guy also referred to the
black boarded area on the map where CDBG funds can be utilized for projects in the downtown area;
however, the majority of the funding, at least 70 percent, must serve low to moderate households or
neighborhoods.
Ms. Guy stated that some examples of funds used for projects include the business loan program to
create or retain jobs, Housing Rehabilitation Loan program, and First Time Homebuyer loan program.
We have done handicap access improvements, public facility improvements, such as improvements to a
firehouse or playground, infrastructure improvements such as tree planting, sidewalks, curb cuts, street
resurfacing, studies (i.e. to preserve a historic building), grants to social service agencies for various
programs such as funds to prevent eviction, food pantries, youth activities, senior transportation, child
care, neighborhood police bike patrols, job training and several others. Activities can be projects or
programs that are managed directly by the City or projects/programs that are managed by other
organizations through by either contracting through a grant or through purchasing as a vendor.
Ms. Guy mentioned that the brochure provides a schedule of the Action Plan process. She stated that,
as part of the process, a request for proposals is issued to enable non-profit agencies to request funds so
that they can provide programs that meet one or more needs within the Consolidated Plan. Issued are
Public Services, Housing and Economic Development Request for Proposals.
Ms. Guy stated that the process starts with this public meeting and with the funding requests that will
be due February 23rd. The draft plan will then be made available for 30-day public comment period
toward the end of March, along with a second public meeting to unveil the plan. In April, there will be a
submission to City Council for approval to apply for funding and the plan will be finalized and submitted
to HUD in May.
Ms. Guy opened the meeting to questions/comments from the audience asking thoughts on emerging,
increasing or decreasing priority needs that have occurred in the last year or since the Consolidated
Plan.
Deric LePard, from North Shore Community Action Programs, Inc. stated the agency is grateful for the
CDBG funding received. Mr. LePard stated that the biggest struggle is the skyrocketing rents and the
incomes not keeping up with the rents, making it extremely difficult, especially for the disabled people
on fixed incomes without subsidies. He added that the CDBG funding helps with back rent when a
household misses a paycheck or when an emergency occurs, which can preserve the tenancy. Mr.
LePard noted that the situation has worsen, noting rents reached a severe increase last year and has
continued to increase.
Ms. Guy commented that buyers don’t have a lot of homes to buy and are often outbid, which increases
the rents as well.
Lisa Orgettas, from the Independent Living Center of the North Shore and Cape Ann Inc., mentioned
another issue is the lack of public housing and that people on waiting lists for years.
Deborah Barber, also from the Independent Living Center of the North Shore and Cape Ann Inc., stated
that the rents are incredibly expensive and that she has a customer who will may become homeless
because the rent is so high, and she can’t find anything. She noted people are on a two to three-year
waitlist and are desperate, living out of their car or couch-hopping as much as they can. People state
that they can’t live in Salem because it’s too expensive. She stated that she sees all these buildings
coming up and questioned who can afford to live there paying $2,500 per month because it’s next to the
T-Station.
Ms. Guy stated that in Salem there are also some developers who create affordable housing in the City.
She assumed that the rental issue is not just specific to Salem.
Ms. Barber was in agreement and stated that in Beverly contractors choose to pay the fines in order to
avoid creating affordable housing. She questioned where the average people go, noting that if her
partner passed away, she could potentially be out on the street, because she couldn’t afford to pay
$1,200/$1,300 dollars in rent, plus utilities, car etc. It is very frustrating because people need get off the
streets. It is a common problem.
Martha Ryan, stated that she represents the Brookhouse Home for Women, which was gifted to the City
of Salem for indigent women who couldn’t afford to live anywhere else. It has an endowment that
keeps the house going. It is a non-profit, with 36-beds in individual rooms, subsidized by MassHealth.
She stated that it fills the space between assisted living, which is really expensive, and nursing homes,
which take all your money up front before MassHealth kicks in. She stated that the Brookhouse Home is
kind of a happy medium, with each resident completing its own daily activities. Ms. Ryan added that the
Brookhouse is nice living, but relies on grants to help subsidize some of the costs, which is her interest in
the CDBG.
Ms. Guy asked if Ms. Ryan was looking for CDBG funding the costs for the building or the programs.
Ms. Ryan replied that it would be more for upgrades to improve the quality of living for the women
residing there.
Ms. Guy referred Ms. Ryan to Naomi Francisco, Housing Coordinator, who administers the City’s
Housing Rehabilitation Loan Program, and who can determine if the Brookhouse Home would be
eligible. Ms. Guy stated that for program funding, the agency would need to respond to the Public
Service Request for Proposals. For instance, they could apply to create a new exercise program for
seniors living there, rather than an existing program. Ms. Ryan asked if the Community Block Grant was
for specific programs, such as elder abuse. Ms. Guy stated there is a housing rehabilitation loan
program, as well as public service programs where the City enters into agreements with different social
service agencies to provide programs to low to moderate income persons.
Rosario Ubiera-Minaya, from North Shore Community Development Coalition, requested that CDBG
continue to support the Family Resource Stability Program. Ms. Ubiera-Minaya stated the agency
conducts the majority of its work in the Point Neighborhood area, which is the largest low-income area
in Salem. She would like to see additional attention and funding allocated to the area because it is
dense and heavily populated, and is in need of many things, including infrastructure, as well as small
business assistance for low-income business owners and minority immigrant entrepreneurs. Her agency
has started working with local businesses within the neighborhood.
Ms. Guy stated that NSCDC will be receiving the RFP for Economic Development Programs. Ms. Guy
stated she understands NSCDC will be submitting a comment letter and suggested, as far as
infrastructure, that it would be helpful to identify specific needs.
Ms. Ubiera-Minaya stated that with the Public Art program that the agency is managing, they have
identified needs in various areas, which they can provide, noting that there’s more foot traffic coming
into the neighborhood.
Mr. LePard asked if it can include sidewalks.
Ms. Guy responded in the affirmative. She noted that sidewalks are prioritized by the DPW Director
who will determine which are in the worse condition in the low/mod areas. The City can also specify
specific locations, if aware, or if focusing a project on a particular corridor that should be completed all
at once.
Mr. LePard asked if Ms. Guy would be the person to be notify.
Ms. Guy stated Mr. LePard could let her know. In addition, the City can be notified by utilizing the
See/Click/Fix application. She noted that CDBG funds can be utilized to resurface streets, but not for
repair of potholes or other ordinary maintenance.
Part 2 – Review of Draft Plan
Public Hearing, scheduled for 6:00 PM, May 31, 2018
Staff Present: Jane Guy, Assistant Community Development Director
Naomi Francisco, Housing Coordinator & Spanish translator
Attendees: There were no attendees from the public present.
Part 3 – Written Comment Received
1/19/2018 – Mickey Northcutt, CEO, North Shore Community Development Coalition
5/30/18 – Lucy Corchado, Point Neighborhood Association