FY16 ACTION PLAN - MAY 15, 2015CITY OF SALEM
ONE-YEAR ACTION PLAN
FISCAL YEAR 2016
MAY 15, 2015
Kimberley Driscoll
Mayor
Lynn Goonin Duncan, AICP
Director of Planning & Community Development
Kathleen Winn
Deputy Director of Planning & Community Development
Jane A.Guy
Assistant Community Development Director
Contents
Executive Summary ............................................................................................................................1
AP-15 Expected Resources ............................................................................................................................8
AP-20 Annual Goals and Objectives ............................................................................................................14
AP-35 Projects .............................................................................................................................................19
AP-50 Geographic Distribution ...................................................................................................................27
AP-55 Affordable Housing...........................................................................................................................28
AP-60 Public Housing ..................................................................................................................................31
AP-65 Homeless and Other Special Needs Activities ..................................................................................32
AP-75 Barriers to Affordable Housing .........................................................................................................35
AP-85 Other Actions....................................................................................................................................37
AP-90 Program Specific Requirements .......................................................................................................42
APPPENDIX ..................................................................................................................................................42
1 -Map
2 -Application for Federal Funding and Certifications
3 -Other Resources
Consolidated Plan SALEM 1
OMB Control No: 2506-0117 (exp. 07/31/2015)
Executive Summary
5 Year Consolidated Plan Summary of Findings
Through the Needs Assessment and Market Analysis processes, several priorities were identified relating
to housing, economic development, public services and neighborhood improvements.
Salem needs more housing that is affordable to people of all income levels and
household types, including accessible housing and housing with supportive services. The
disparity between income and the cost of housing within the City and the region and a
shortage of subsidized affordable housing units are the two greatest challenges to
meeting the needs of the constituent population.
Salem has identified needs for social services, including transportation, nutrition,
housing advocacy, legal services, education, childcare, emergency funds for
homelessness prevention,and substance abuse prevention and treatment,as well as
navigational guidance for seniors and new immigrants, and greater access to continuous
programs and services.
Salem residents in low-wage occupations struggle with the high cost of living, while
other residents are commuting long distances outside of Salem to reach higher paying
jobs. Job training, ESL classes, and other work readiness programs would help to match
the available work-force with living-wage jobs in the region. Economic development
initiatives will help to increase and maintain quality employment opportunities for low-
and moderate-income residents in Salem. Business recruitment, coordination, and
technical and financial assistance will support and maintain a vibrant economy and help
to build small businesses in the city.
Improvements to streets, sidewalks, parks, and public spaces will help to improve the
quality of life in areas of the city with concentrations of low-and moderate-income
households, as well as to improve the accessibility of the city's public realm for persons
with disabilities. There is strong support for the completion of a new senior center.
Salem’s Department of Planning and Community Development will continue to administer CDBG funding
to address these needs, and to work with nonprofit community partners to create affordable housing,
rehabilitate housing occupied by low-and moderate-income households, provide access to
homeownership for first-time homebuyers, support businesses through small business loans, technical
assistance and storefront improvement programs, provide community services to combat poverty and
promote self-sufficiency, and to improve neighborhood infrastructure and public facilities in LMI
neighborhoods and the downtown.
FY16 Action Plan Summary of Proposed Activities
The Federal funding that Salem will receive for FY16 includes $952,642 in CDBG funds, an estimated
$88,295 in HOME funds and a projected $115,000 in program income. Many activities leverage funding
from other sources to maximize the impact of the federal dollars the city receives. Together, these
Consolidated Plan SALEM 2
OMB Control No: 2506-0117 (exp. 07/31/2015)
Affordable Housing,
$338,970 , 29
Neighborhood
Improvements,
$256,217 , 22%
Economic Development,
$187,000 , 16%Planning &
Administration,
$213,500 , 19%
Public Services,
$160,250 , 14%
FY16 PROPOSED EXPENDITURES (CDBG & HOME)
61 Congress Street is slated for development into
affordable housing by North Shore CDC. Photo courtesy
of Google maps.
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 following section describes the activities proposed for FY16 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.
FY16 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.1
Projected Accomplishments:4 Housing Units Rehabbed
Proposed Funding:$50,000 CDBG; $45,646 HOME
This activity will also use carried over funding from FY15
(for additional units)
TP
1PT Rents are established by HUD annually.
Consolidated Plan SALEM 3
OMB Control No: 2506-0117 (exp. 07/31/2015)
First-Time Homebuyer Downpayment Assistance Loan Program
The First-Time Homebuyer Downpayment Assistance Loan Program provides 0 percent interest, deferred -payment
loans to families that wish to purchase a home in the City of Salem. The loan is deferred, as long as owners hip 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:$43,675 CDBG
Rental Assistance Programs
The Rental Downpayment Assistance Program,administered through local social service agencies, provides
assistance to low-and very low-income Salem residents to help pay first and last month’s rents and security
deposits to enable them to obtain decent housing or to help subsidized rents on a tem porary basis for families
escaping violence.
Projected Accomplishments:33 Households assisted
Proposed Funding:$40,000 HOME
Affordable Housing Development
Pool of funds for when opportunities arise for pre -development, acquisition and/or rehabilitat ion of affordable
housing units (at or below 80% of AMI) by non-profit housing developers and/or CHDO’s.
Projected Accomplishments:Several projects are currently in the pipeline. It is anticipated that 27 housing units
will be completed in FY16.
Proposed Funding:$75,000 CDBG;Carried over HOME funding from FY15 will also be used for specific
development projects.
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:$82,000 CDBG; $2,649 HOME
Consolidated Plan SALEM 4
OMB Control No: 2506-0117 (exp. 07/31/2015)
Mayor Kimberley Driscoll (back row; third from right)
visits with participants of the “Career Gateways
Program,” an occupational skills training program for
residents of Salem’s Point neighborhood that was
funded with Working Cities Challenge grant funds.
The program prepared participants for careers as
certified nursing assistants.Training was conducted
on-site at Spaulding Hospital North Shore in Salem.
Photo is courtesy of Spaulding Rehabilitation
Network.
Fiscal Year 2016 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
urban renewal area and income-eligible neighborhoods. The
program provides low-interest loans to qualified entrepreneurs
to cover the gap between the amount of financing needed for an
economic development project and the amount that
conventional lenders can finance. Funds are available for
acquisition, construction, or rehabilitation of real property and
for financing related to the purchase of equipment, fixtures,
inventory, leasehold improvements and working capital. Terms
and conditions of the loans vary.
The Storefront Improvement Program –This program is designed
to encourage private investment and reinvestment by new and
existing property/business owners in eligible commercial
districts. The program allows a one-to-one match for façade
improvements. The match from the city is up to $5,000 for each storefront.
Projected Accomplishments:2 business assisted, minimum of 3 jobs created
Proposed Funding:$40,000.This activity may also use carried over funding from FY15.
Business Technical Assistance
The City helps to coordinate and fund technical assistance services to local business owners. In FY15, 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.The Enterprise Center’s Microenterprise Program will
create a small business “Tuesday” by establishing a presence in the Point Neighborhood one day a week for drop-
in and scheduled appointments with bi-lingual staff. The program will provide one-on-one business counseling
sessions, business plan or business loan prep for existing businesses. 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 oversees the
Urban Renewal Area.
Projected Accomplishments:22 microenterprise owners or potential owners assisted, minimum of 2 jobs created
Proposed Funding:$147,000
Consolidated Plan SALEM 5
OMB Control No: 2506-0117 (exp. 07/31/2015)
Fiscal Year 2016 Neighborhood Improvement Activities
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.
Some improvements may be undertaken as part of the
Neighborhood Revitalization Strategy for the Point
Neighborhood.
Projected Accomplishments:Locations of street and sidewalk
improvements and tree planting is to be determined.
Proposed Funding:$55,000
Point Neighborhood Improvements
Various improvements to infrastructure and/or parks and
playgrounds (i.e. Palmer Cove, MaryJane Lee, Peabody Street
and/or Lafayette Parks/Playgrounds).
Projected Accomplishments:Various infrastructure improvements
Proposed Funding:$25,000.This activity will also use carried over funds from FY15.
Park/playground Improvements
Various improvements to parks in eligible neighborhoods (i.e. McGlew Park).
Projected Accomplishments:Various infrastructure improvements
Proposed Funding:$75,000
Downtown Improvements
Infrastructure improvements to enhance pedestrian circulation, safety and aesthetics, improve access ibility and to
complement Economic Development activities.
Proposed Funding:$11,217
Boston Street Neighborhood Improvements
Various improvements to infrastructure (i.e. trees, handicapped access –curbcuts/crosswalks).
Projected Accomplishments:Various infrastructure improvements
Proposed Funding:$25,000
Council on Aging Improvements
Complete needed accessibility and other improvements to the existing senior center public facility.
Proposed Funding:$50,000
This activity may also use carried over funds from FY15.
The Neighborhood Improvement category will also include $15,000 for program delivery costs.
The design of McGlew Park is expected to go
underway in FY16. Photo courtesy of Jessica Kane
Consolidated Plan SALEM 6
OMB Control No: 2506-0117 (exp. 07/31/2015)
Fiscal Year 2016 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. See section
II. D-3 for a list of agencies submitting funding proposals.
Proposed Accomplishments:Grants for approximately 24
social service agency programs to assist an estimated
9,000 persons.
Proposed Funding:$160,250
Fiscal Year 2016 Social Services Funding Proposals Received:
Located within or steps from the Point Neighborhood:
Boys & Girls Club of Greater Salem -Power Hour
Catholic Charities -Homeless Prevention Program
HAWC -Emergency Shelter Children’s Services
HAWC -Homeless Prevention Program
Independent Living Center of the North Shore and Cape Ann, Inc.-Housing Assistance Services
North Shore CDC -Family Stability Program -Educational Workshops
Salem Access Television -Youth in Action/Jovenes en Accion
Salem Community Child Care -After School Kindergarten
Salem Police Department -Point Targeted Patrols
VOCES -Hispanic Education Program
Located in Downtown Salem:
Lifebridge -Medical & Outreach Supportive Services
North Shore Community Action Programs, Inc.–Leap for Education
Salem YMCA –Community Garden (new)
Salem YMCA -School Age Child Care
New Liberty Charter School of Salem –Dress for Success
Located within Salem:
Bentley Elementary School -Students on the Move and S’more Fun
Cerebral Palsy Association of Eastern Massachusetts, Inc.-North Shore Infant & Toddler Program
East Christian Fellowship -Joseph’s Storehouse Food Pantry
Fuel Education (Salem High School)–Salem Families College Savings Program (new)
Salem Council on Aging -Senior Transportation Program
The North Shore Moving Market –Food Delivery for Elderly, Disabled and Disadvantage
The Salvation Army -Homeless Prevention Program
Wellspring House -MediClerk Job Training Program
Located outside Salem (but available to Salem residents):
Haven From Hunger -Food Pantry Program
North Shore Community Action Programs, Inc.-Homeless Prevention Program
1647 c/o National Center on Time & Learning –Teacher Home Visits & Family Engagement
Students from the Salem Academy Charter School who
volunteered at Lifebridge.Photo is courtesy of
Lifebridge.
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Rendering of the Chapel at Greenlawn Cemetery,
courtesy of Arrowstreet Architecture & Design
Fiscal Year 2016 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:$213,500 (salary, benefits, non-salary
expenses, studies)
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 FY16.
Project Description
Economic Development Programs
Programs include Business Loans, Neighborhood Storefront
Improvements. Business Technical Assistance and Salem Main Street
Initiative.
Housing Programs
Included are First-Time Homebuyers Downpayment Assistance
Program, Housing Rehabilitation Loan Program and Affordable
Housing Programs.
Point Neighborhood Park &
Playground Improvements
Various improvements to Palmer Cove, Mary Jane Lee and/or
Lafayette Parks/Playgrounds.
Neighborhood Street & Sidewalk
Improvements
Repaving of streets, installation of curb cuts/crosswalks, and
replacement of sidewalks in eligible neighborhoods.
Splaine Park Improvements
Environmental clean-up and rebuilding of ball field; restoration of
basketball court and gazebo, replacement of playground;
enhancement of entrances, and installation of community growing
spaces using CDBG, City and PARC grant funds.
Salem Council on Aging Handicapped Access Improvements (will also use FY16 funds)
Neighborhood Historic Signs Replacing existing or installing new sign panels in eligible
neighborhoods.
Point Neighborhood Visioning Project Improvements per the Point Neighborhood Visioning Action Plan will
be implemented (i.e. lighting, basketball court, signage, benches).
Pedestrian Mall Improvements Infrastructure improvements to enhance pedestrian circulation,
safety and aesthetics.
McGlew Park Improvements to park (will also use FY16 funds).
Consolidated Plan SALEM 8
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Expected Resources
AP-15 Expected Resources –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 communities 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 multifamily 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 FY16 includes $952,642 in CDBG entitlement funds.
Additional funds include an estimated $88,295 in HOME funds and approximately $115,000 in program
income (from housing and ED loans).
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 determines how the funds will be utilized each year.
Massachusetts CPA regulations require that a minimum of 10% of annual CPA revenues be set aside or
spent for each of the program areas: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
FY14, the first year that the surcharge was in effect, the city raised $539,788 in local funds. In
November, 2014,its first state match of $167,707 was received.With a downturn in available State
Consolidated Plan SALEM 9
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funds, the City projects an estimated $531,000 annually from both local and matching funds in future
years.
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 Nati onal
Housing Trust Fund,which is expected to be available through the Commonwealth sometime in 2016.
Consolidated Plan SALEM 10
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Anticipated Resources
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amt
Available
Reminder 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 952,642 115,000 0 1,067,642 3,818,568
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 2016.
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.
Consolidated Plan SALEM 11
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Program Source
of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amt
Available
Reminder of
ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
Other public -
federal
Acquisition,
Housing 88,295 0 0 88,295 353,180
HOME -Estimated distribution 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 535,000 0 0 531,000 2,124,000
Community Preservation Act -A surcharge on the
local property tax will generate approximately
$450,000 annually with an estimated State match of
$81,000 annually, which will be dedicated for
affordable housing, open space, recreation, and
historic preservation projects.
Other public -
local
Admin and
Planning 400,000 0 0 400,000 1,600,000
City funds for Administration & Planning
Other public -
local
Public
Improvements 150,000 0 0 150,000 600,000
City of Salem Capital Improvement Program (based
on average of prior 4 years’ projects)
Other Public -
state
Public
Improvements 275,000 275,000
Grants from Massachusetts Office of Coastal Zone
Management for “coastal green infrastructure”
improvements to mitigate Salem’s vulnerability to
storm surges and sea level rise.
Table 1 -Anticipated Resources
Consolidated Plan SALEM 12
OMB Control No: 2506-0117 (exp. 07/31/2015)
Explain how federal funds will leverage those additional resources (private, state and local
funds), including a description of how matching requirements will be sati sfied
CDBG funds will combine with local CPA funding, as well as funds from numerous other sources ,in order
to make projects feasible and to fulfill the goals of community development programs. In FY14, CDBG
funds leveraged an estimated $8.07 in funds from other sources for every dollar of CDBG funding.The
following summarizes the funds typically leveraged by each program area:
Housing
For the First Time Homebuyer Program, homebuyers provide matching funds and obtain
financing from a primary lender. Salem anticipates matching funds and financing of
approximately $131,500 in FY16, and $675,500 over the next five years.
Housing development projects undertaken by POAH and NSCDC have combined Low-
Income Housing Tax Credits and other state and federal funding, as well as private
fundraising, grants, financing, and program fees. North Shore CDC’s 77 unit Salem Point
II project, which will be completed in 2015, has a total development cost of $18 million.
Of this total, $450,000 comes from CDBG and HOME. The 27 SRO Units at Harbor-
Lafayette Street are expected to be completed in 2016, with total development cost of
$4.9M, of which $50,000 is HOME. Additional affordable housing development projects
in the pipeline that may be completed in 2017 and 2018 will entail $35.5M total
development cost, creating more than 80 units of affordable housing.
State programs such as Get the Lead Out and MassSaves have been used to assist in
home rehabilitation.
The National Housing Trust Fund is anticipated to provide an additional resource to
support the creation of affordable rental housing. These funds are expected to be
available through the State sometime in 2016.
Economic Development
The Salem Main Streets Program leverages funds through business contributions and
donations, as well as program income from events. Annually, this program generates
approximately $20,000-$50,000 in contributions and program income, or $100,000-
$250,000 over the next five years.
The City will continue to pursue future grant opportunities such as the Working Cities
Challenge to support economic development and job training.
Salem is a Gateway City, making it eligible for certain State funds. Gateway cities are
defined as "midsize urban centers that anchor regional economies around the state,"
facing "stubborn social and economic challenges" while retaining "many assets with
unrealized potential." These communities, which all had a legacy of economic success,
have struggled as the state's economy shifted toward skills-centered knowledge sectors.
Neighborhood and Public Improvements
The City’s Capital Improvement Program has contributed an average of $150,000
annually on CDBG-funded projects, resulting in a $600,000 projected spending over 5
Consolidated Plan SALEM 13
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years. Other leveraged sources include the City's General Fund, 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
Arts, MassDevelopment Brownfields Assessment Program, 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.
Public Services
Most of the public service agencies funded use CDBG as a portion of their overall activity
budgets. Examples of several major agency funding sources are provided in the
appendix.Other funding sources include federal and state grants, private grants and
donations, and program income.
Planning & Administration
Planning and administration funds are combined with city funds of about $400,000
annually ($1.6M over 5 years).
Additional planning funds and technical assistance have been obtained through
Massachusetts Historical Commission and Metropolitan Area Planning Council.
A listing of anticipated leveraged funds for FY16 is found in the Appendix, including anticipated funding
resources for the City of Salem,as well as several key organizations.
If appropriate, describe publically owned land or property located within the jurisdiction that
may be used to address the needs identified in the plan
None have been identified at this time.
Consolidated Plan SALEM 14
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Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Needs Addressed Funding Goal Outcome Indicator
1 Housing
Rehabilitation
Programs
2016 2020 Affordable
Housing
Affordable
Housing
CDBG:
$132,000
Homeowner Housing
Rehabilitated: 4 Household
Housing Unit
2 Affordable
Housing
2016 2020 Affordable
Housing
Public Housing
Affordable
Housing
CDBG:
$75,000
Rental units constructed:
27 Household Housing
Unit
3 First Time
Homebuyer
Program
2016 2020 Affordable
Housing
Homeownership
Assistance
CDBG:
$43,675
Direct Financial Assistance
to Homebuyers: 5
Households Assisted
4 Small Business
Financial
Assistance
Programs
2016 2020 Non-Housing
Community
Development
Economic
Development
CDBG:
$40,000
Jobs created/retained: 3
Jobs
Businesses assisted: 2
Businesses Assisted
5 Business
Technical
Assistance
2016 2020 Non-Housing
Community
Development
Economic
Development
CDBG:
$147,000
Jobs created/retained: 2
Jobs
Businesses assisted: 22
Businesses Assisted
6 Community
Support
Services
2016 2020 Homeless
Non-Homeless
Special Needs
Public Services CDBG:
$160,250
Public service activities
other than Low/Moderate
Income Housing Benefit:
9000 Persons Assisted
7 Neighborhood
Improvements
Activities
2016 2020 Non-Homeless
Special Needs
Neighborhood
Public Facilities
and
Infrastructure
CDBG:
$245,000
Public Facility or
Infrastructure Activities
other than Low/Moderate
Income Housing Benefit:
8265 Persons Assisted
8 Downtown
Improvements
2016 2020 Non-Housing
Community
Development
Downtown
Public Facilities
and
Infrastructure
CDBG:
$11,217
Public Facility or
Infrastructure Activities
other than Low/Moderate
Income Housing Benefit:
5055 Persons Assisted
Table 2 –Goals Summary
Consolidated Plan SALEM 15
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Goal Descriptions
1.Housing
Rehabilitation
Programs
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.Affordable Housing Salem consistently provides support toward the creation of new affordable housing units
through the conversion of old, abandoned or underutilized buildings and parcels into new
residential housing units. Funds for affordable housing are often set aside to provide
resources for the City or a nonprofit partner, such as the North Shore CDC or the Boston
Roman Catholic Archdiocese’s Planning Office for Urban Affairs (POUA), to take advantage
of opportunities that arise to acquire available abandoned, derelict properties and turn
them back into decent, affordable homes. 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.
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3.First Time
Homebuyer Program
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 Massachusetts Housing Partnership (MHP)SoftSecond Loan Program
and a variety of homeownership programs offered by MassHousing, as well as supporting
first time homebuyer education workshops provided by various organizations.
4.Small Business
Financial Assistance
Programs
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.
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5.Business Technical
Assistance
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 the permitting process, coordinates
available loan programs, develops 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.Community Support
Services
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.
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7.Neighborhood
Improvements
Activities
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 FY16, 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), and through
neighborhood planning initiatives (e.g.,parks/playgrounds, lighting, trash receptacles, tree
planting, signage and bike paths).
In addition, the City continues to assess and clean-up known contaminated sites and is
currently working with state and federal agencies on several parcels.
The City will continue to invest in efforts that strengthen its public facilities. City Hall has
seen major improvements over the last few years, including the construction of a new
elevator and related handicap accessibility improvements. In FY14, an addition was
completed to the Teen Resource Center in the Point Neighborhood. Salem will also
continue to work on its goal to have a new senior center.
8.Downtown
Improvements
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.
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Projects
AP-35 Projects –91.220(d)
Introduction
Salem will carry out the following programs to address the goals identified in the 5-Year Consolidated
Plan:
Affordable Housing -Support for local non-profit housing organizations and CHDOs seeking to
acquire, create, preserve, and/or renovate affordable units.
Downpayment Assistance for First Time Homebuyers -Financial assistance to eligible
households in the form of loans for downpayments and closing costs.
Housing Rehabilitation Program -Offer financial and technical assistance to eligible
homeowners and investor-owners to improve housing units, including improvements for
accessibility.
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 th e
Salem Redevelopment Authority and funding for the Salem Main Streets Program and the
micro-enterprise programs offered by Salem State University’s Enterprise Center.
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.
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, i mmigrant 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.
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, senior center, fire stations, schools, etc.
Downtown Improvements -Public facilities and infrastructure improvements that are located in
Salem’s Urban Renewal area and/or benefit people with disabilities.
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General Program 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.
#Project Name
1 Housing Rehabilitation Programs
2 Affordable Housing
3 First Time Homebuyer Program
4 Small Business Financial Assistance Programs
5 Business Technical Assistance
6 Community Support Services
7 Neighborhood Improvement Activities
8 Downtown Improvements
9 Planning & Administration
Table 3 –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
FY16 CDBG funding will be used for activities that benefit low-and moderate-income persons.
Affordable Housing -Approximately 23.5% of CDBG funding (including estimated
program income) in FY16 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 17.5% of its CDBG
funding for FY16 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 -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 24% of the City’s
FY16 CDBG funding will be allocated towards public facilities and infrastructure
improvements projects in LMI neighborhoods and in the Downtown Urban Renewal
District.
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Program Administration -Not more than 20% will be allocated for the necessary
general administration costs for program oversight and coordination, including plans
and studies.
The primary obstacle to addressing underserved needs in the categories listed above is the lack of
adequate funding. For FY16, the City received nearly level funding in CDBG, and its HOME allocation
reflects a 12% percent reduction from FY15. However,it should be noted that CDBG funding has been
reduced by 17% since 2010,while HOME funding has been reduced by more than 52%.
Consolidated Plan SALEM 22
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AP-38 Project Summary
Project Summary Information
1 Project Name Housing Rehabilitation Programs
Goals Supported Housing Rehabilitation Programs
Needs Addressed Affordable Housing
Funding CDBG: $132,000
HOME: $48,295
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 6/30/2016
Estimate the number
and type of families
that will benefit from
the proposed activities
It is estimated that four families of low to moderate income will be assisted.
Location Description Addresses will be determined from applications for assistance to be
submitted.
Planned Activities Housing Rehabilitation Loan Program
Inspectional Services
Rehabilitation Administration
2 Project Name Affordable Housing
Goals Supported Affordable Housing
Needs Addressed Affordable Housing
Funding CDBG: $75,000
Other –Community Preservation Act: $100,000
Description Support local non-profit housing organizations and CHDOs seeking to acquire,
create, preserve, and/or renovate affordable units.
Target Date 6/30/2017
Estimate the number
and type of families
that will benefit from
the proposed activities
Currently there are several projects planned by North Shore CDC. In FY16, one
project is expected to be completed, which will result in 27 units of affordable
SRO rental housing,with 50%of the units for persons at or below 50% AMI,
with a preference for young people 18-24 coming out of homelessness.
Location Description Point Neighborhood
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Planned Activities Affordable housing loan pool for pre-development, acquisition and/or
rehabilitation of affordable housing units,for households at or below 80% of
AMI.As projects are designated, individual activities are set up and the pool is
reduced.
3 Project Name First Time Homebuyer Program
Goals Supported First Time Homebuyer Program
Needs Addressed Homeownership Assistance
Funding CDBG: $43,675
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 6/30/2016
Estimate the number
and type of families
that will benefit from
the proposed activities
A minimum of five low-to moderate-income families will be assisted with
purchasing their first home.
Location Description
Planned Activities Loan Pool for downpayment assistance loan program. As individual activities
are set up for first time homebuyer loans, the loan pool is reduced.
4 Project Name Small Business Financial Assistance Programs
Goals Supported Small Business Financial Assistance Programs
Needs Addressed Economic Development
Funding CDBG: $40,000
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 6/30/2016
Estimate the number
and type of families
that will benefit from
the proposed activities
It is estimated that two businesses will be assisted, creating a minimum of 3
jobs.
Location Description Point Neighborhood, Downtown Salem (Urban Renewal Area) and other
eligible LMI commercial areas.
Planned Activities Small Business Loan Program
Storefront Improvement Program
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5 Project Name Business Technical Assistance
Goals Supported Business Technical Assistance
Needs Addressed Economic Development
Funding CDBG: $147,000
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, oversight of the Salem Redevelopment Authority,
funding for the Salem Main Streets Program and the Enterprise Center’s
Micro-enterprise Program, as well as funding for the Salem State University
Enterprise Center micro-enterprise programs in the Point Neighborhood.
Target Date 6/30/2016
Estimate the number
and type of families
that will benefit from
the proposed activities
It is estimated that a minimum of two LMI jobs will be created, as well as a
minimum of twenty-two micro-enterprise businesses assisted.
Location Description Point Neighborhood, Downtown and other LMI commercial areas.
Planned Activities Salem Main Streets Program
Economic Development Program Delivery
Enterprise Center Micro-Enterprise Program
6 Project Name Neighborhood Improvement Activities
Goals Supported Neighborhood Improvements Activities
Needs Addressed Neighborhood Public Facilities and Infrastructure
Funding CDBG:$245,000
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 safety, trash receptacles, traffic calming, accessibility, senior
center, fire stations, schools, etc.
Target Date 6/30/2016
Estimate the number
and type of families
that will benefit from
the proposed activities
Location Description
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Planned Activities Street Improvements
Tree Planting
Park Improvements
Point Neighborhood Improvements
Boston Street Neighborhood Improvements
Council on Aging Improvements
7 Project Name Community Support Services
Goals Supported Community Support Services
Needs Addressed Public Services
Funding CDBG: $160,250
Description Provide 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.
Target Date 6/30/2016
Estimate the number
and type of families
that will benefit from
the proposed activities
Approximately 9,000 persons will be assisted through approximately 25 social
service programs.
Location Description
Planned Activities Grants for approximately 25 social service programs.
8 Project Name Planning &Administration
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
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Needs Addressed Affordable Housing
Homeownership Assistance
Economic Development
Public Services
Neighborhood Public Facilities and Infrastructure
Downtown Public Facilities and Infrastructure
Funding CDBG: $213,500
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.
Target Date 6/30/2016
Estimate the number
and type of families
that will benefit from
the proposed activities
Location Description
Planned Activities General Program Administration
Planning Studies
9 Project Name Downtown Improvements
Goals Supported Downtown Improvements
Needs Addressed Downtown Public Facilities and Infrastructure
Funding CDBG: $11,217
Description Undertake infrastructure improvements to support Salem’s Urban Renewal
Area (downtown) and complement ongoing Economic Development activities.
Projects may include street & sidewalk improvements, tree planting, trash
receptacles, traffic improvements, lighting, signage and open space
improvements, as well as improvements to public facilities and public
infrastructure.
Target Date 6/30/2016
Estimate the number
and type of families
that will benefit from
the proposed activities
Location Description Urban Renewal Area
Planned Activities Urban Renewal Area Improvements
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AP-50 Geographic Distribution –91.220(f)
Description of the geographic areas of the entitlement (including areas of low -income and
minority concentration) where assistance will be directed
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.
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.
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.
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Affordable Housing
AP-55 Affordable Housing –91.220(g)
Introduction
Salem, like many communities in Massachusetts, is still struggling with the impacts of increasing housing
costs relative to income, a roller coaster real estate market, and a regional lack of affordable rental
housing. These conditions have resulted in more individuals and families at risk of homelessness. As a
result, the City continues to place the creation and preservation of affordable housing as a high priority
of its CDBG and HOME programs.
Notable statistics about Salem's population and housing stock include:
Salem’s population is 46% low-to moderate-income persons;
Salem has old housing stock: 61% of Salem's occupied housing units were built prior to 1950;
12% of Salem homeowners are paying 30% or more of their income in monthly housing costs
22% of Salem renters pay 50% or more of their income in monthly housing costs.
For renters, the lack of affordable rental housing region-wide continues to heighten the demand on
public housing and subsidy programs. The demand for subsidized housing far exceeds the supply.
Typically, people on waiting lists for units or vouchers must wait several years before an opening is
available.
That said, Salem is at the forefront of providing affordable housing for the North Shore area. Although
Massachusetts General Law Chapter 40B establishes a minimum goal of affordability of 10% of the year -
round housing in every municipality, Salem is one of 48 communities across Massachusetts to reach this
goal. Currently, nearly 13% of Salem’s housing stock is affordable and listed on the Commonwealth’s
Subsidized Housing Inventory. This is the highest percentage of the 30 cities and towns within the North
Shore HOME Consortium.
In addition to supporting the efforts of nonprofit affordable housing developers to increase the supply
of affordable housing in Salem, Salem administers several successful housing programs. The First-Time
Homebuyer Downpayment Assistance Program provides assistance for the greatest hurdle that most
families looking to purchase their first home face -saving enough money to make the required
downpayment. The Housing Rehabilitation Loan Program works to rehabilitate housing to make it safe
and sanitary. The City also provides funding for homelessness prevention programs through
partnerships with numerous non-profits:Catholic Charities, North Shore Community Action Programs,
Inc. (NSCAP), the Salvation Army and HAWC.
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One Year Goals for the Number of Households to be Supported
Homeless 16
Non-Homeless 20
Special-Needs 0
Total 36
Table 4 -One Year Goals for Affordable Housing by Support Requirement
One Year Goals for the Number of Households Supported Through
Rental Assistance 0
The Production of New Units 27
Rehab of Existing Units 4
Acquisition of Existing Units 5
Total 36
Table 5 -One Year Goals for Affordable Housing by Support Type
Discussion
The following is a summary of Salem's strategy to address housing needs. This strategy includes both
new housing production and preserving the existing housing stock for working families. The key
components are:
Producing New Housing Units -Working with private nonprofit developers, Salem supports the
creation of affordable housing units through the conversion of underutilized buildings and
parcels.
Preserving Existing Affordable Units -Salem has several private rental housing developments
with affordable units created with subsidies that will expire after a period of time. The city
continues to negotiate the extension of affordability for expiring subsidized units.
Funding to support affordable housing -The Affordable Housing Fund established by the City
Council provides resources to create and preserve affordable housing. The City negotiates with
developers on a case-by-case basis for affordable units.
In 2012 the City passed the Community Preservation Act which raises funds through a surcharge
on property tax bills.CPA requires a minimum spending (or reserve) of 10% of the annual
budget on community housing projects.
Improving Public Housing -The Salem Housing Authority (SHA) and Community Teamwork, Inc.
in Lowell currently administer a combined total of 1,215 Section 8 vouchers in Salem. In
addition, the SHA owns and manages a portfolio of 715 units of public housing for low income
elderly, family, and handicapped residents which are scattered across the city. Funding to
preserve and maintain these properties is provided by DHCD and HUD.
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 offers a $1,000 increase over the maximum loan amount for
homeowners who complete First-Time Homebuyer Counseling. In addition, DPCD staff provides
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assistance to coordinate other resources for homebuyers, such as Massachusetts Housing
Partnership SoftSecond Loan Program and a variety of homeownership 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 character,history
and neighborhood fabric, they 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 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, 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
the region’s affordable units. Salem is committed to working with its partners in the North Shore
HOME Consortium and with the region’s mayors to encourage the development of housing
throughout the area in an effort to increase the supply of housing for all.
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AP-60 Public Housing –91.220(h)
Introduction
As cited in the Strategic Plan and evidenced by consistently excellent SEMAP and PHAS scores, the Salem
Housing Authority is a well-managed public housing authority. In its most recent PHAS evaluation, the
SHA scored 92 out of a possible 100 points, scoring perfectly in all categories except the physical
condition of its federal elderly and family units. The SHA continues its ongoing modernization plans to
address the physical needs of both its federal and state public housing units.
Actions planned during the next year to address the needs to public housing
The Salem Housing Authority is continuing its modernization program to make capital improvements to
its state and federal public housing units, with these efforts being funded by the United States
Department of Housing and Urban Development (HUD) for federal units, and the Massachusetts
Department of Housing and Community Development (DHCD) for state units.
In addition to ongoing routine maintenance and repair work, the following modernization projects are
planned using capital funding:
State Properties:
$1.4 million window and door replacement at Pioneer Terrace;
$135,000 emergency generator installation at Morency Manor;
$11,000 toilet replacement for water conservation at various units; and
$67,600 walkway paving project at Rainbow Terrace
Federal Properties:
$40,906 was recently awarded to the SHA from HUD’s Capital Improvement Fund Program for
use for maintenance and administrative operation costs associated with the SJA’s 39 units of
federal elderly and family housing.
Actions to encourage public housing residents to become more involved in management and
participate in homeownership
The Salem Housing Authority has a Resident Advisory Board (RAB)that is actively engaged with
management. A member of the RAB sits as a member of the SHA Board of Commissioners and the RAB
actively encourages resident involvement in management issues.
If the PHA is designated as troubled, describe the manner in which financial assistance will be
provided or other assistance
Not Applicable;the Salem Housing Authority is not designated as a troubled PHA.
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AP-65 Homeless and Other Special Needs Activities –91.220(i)
Introduction
The City’s primary vehicle for addressing homelessness will be through its CDBG public social services
funding. It intends to continue awarding sub-grants to local and regional entities whose primary work is
to address or prevent homelessness, or who otherwise provides programs and services that serve
homeless or at-risk persons.Understanding that homeless persons have individualized needs, the City
works with service providers who offer an array of services that address needs ranging from meals to
permanent housing. Some of the agencies the City funds that address homelessness include:
Joseph's Storehouse at Eastgate Fellowship Church -provides a food pantry for low and
moderate income residents
Haven from Hunger -provides meals, a food pantry and various job-training programs.
HAWC -a regional agency headquartered in Salem which offers emergency shelter for battered
partners and their children and provides counseling, referrals, advocacy and day care.
Lifebridge -provides meals, clothing, and case management, delivers or coordinates on-site
medical and mental health services and refers clients to services including housing, health,
public benefits, employment and training, veterans' services, detoxification, substance abuse,
and mental health assistance.Lifebridge is working toward expanding and adding programs to
help increase self-sufficiency, with the goal of working toward eliminating the causes of
homelessness, rather than just addressing the symptoms of homelessness.Its Seeds of Hope
campus includes 34 year-round transitional beds for homeless men and women and 22 units of
permanent supportive housing for formerly homeless adults.
Salvation Army -provides short-term emergency housing at local hotels/motels.
North Shore Moving Market -provides food distribution to elderly and disabled residents.
Describe the jurisdictions one-year goals and actions for reducing and ending homelessness
including
Reaching out to homeless persons (especially unsheltered persons) and asse ssing their
individual needs
The Salem Police Department, both through its normal staff complement and its Community Impact
Unit,work directly with the homeless in Salem. It also coordinates with Lifebridge to provide outreach
to homeless, some of whom may be unsheltered. CDBG provides funding via sub-grants to local and
regional organizations that provide direct services and outreach.
Through Lifebridge, the City partially funds a licensed nurse who provides on-site and community-based
health assessments to the homeless population, including wound care, blood pressure monitoring,
nutrition and general health education. The nurse also provides outreach services via random patrols in
order to help connect unsheltered homeless individuals with needed services and to liaise with local
businesses.
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Addressing the emergency shelter and transitional housing needs of homeless persons
The City expects to continue to provide CDBG funding to local and regional non-profit entities such as
Lifebridge, HAWC, NSCAP, Catholic Charities, and the Salvation Army to assist in addressing emergency
shelter and transitional housing needs, and to prevent households from becoming homeless. This
assistance is provided through a Request for Proposals (RFP) process issued by the DPCD.
Salem will also continue to participate in the Continuum of Care and lend its support to expanding
emergency shelter and transitional housing, whether in Salem or elsewhere in the region.
Helping homeless persons (especially chronically homeless individuals and families,
families with children, veterans and their families, and unaccompanied youth) make the
transition to permanent housing and independent living, including shortening the period
of time that individuals and families experience homelessness, facilitating access for
homeless individuals and families to affordable housing units, and preventing individuals
and families who were recently homeless from becoming homeless again
The City awards CDBG social services sub-grants to provider agencies to address goals of ending
homelessness. These organizations provide transitional and permanent supportive housing to homeless
and formerly homeless persons, assist with housing search, housing counseling, and provide emergency
housing assistance (e.g., delinquent rent and utility payments), as well as food assistance.
The City also awards sub-grants to other agencies that serve specific sub-populations, such as at-risk
youth, seniors, persons with disabilities, or to residents who need ESOL, job readiness and skills training,
or other anti-poverty initiatives. Although funding to these organizations does not target homelessness
per se,the funding aids in stabilizing individuals and families, thereby reducing the risk of homelessness
or its recurrence. Salem intends to continue funding these types of programs under the first and
subsequent years’ Annual Action Plans. The City makes public social services awards via an annual
Request for Proposals (RFP) process.
In FY 2014, the City supported three organizations by providing HOME funds for rental downpayment
assistance to help extremely low-and low-income households to move into decent, affordable rental
units. Subject to the continued availability of HOME funds, Salem intends to continue using these funds
for this purpose.
Helping low-income individuals and families avoid becoming homeless, especially
extremely low-income individuals and families and those who are: being discharged from
publicly funded institutions and systems of care (such as health care facili ties, mental
health facilities, foster care and other youth facilities, and corrections programs and
institutions); or, receiving assistance from public or private agencies that address housing,
health, social services, employment, education, or youth need s
Salem awards CDBG-funded public social service sub-grants to provider agencies and to housing and
service organizations, including those whose core mission is to prevent homelessness and to foster
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individual and family self-sufficiency. Each year the City allocates up to the maximum allowed of its
CDBG funding to public social services. All of these sub-grants benefit low-income individuals and
families, many of whom are extremely low income.While the grants made to organizations providing
homeless or homelessness prevention services were not specifically targeted to dischargees of publicly-
funded institutions or care systems, these organizations report that a significant number of the persons
they serve are receiving services from agencies that address a range of housing, health, and other social
service needs. For example,North Shore CAP provides a range of housing and social services to
households in addition to assisting families who are experiencing homelessness, while Lifebridge reports
that an increasing majority of clients are being discharged to the shelter from health care systems or are
referred by other health care or service agencies.
Other types of services and programs that the City has funded include food pantries, child care, health
screening and education, ESOL, job readiness and skills training, financial education and budgeting, and
individual counseling and support groups. Because these funds benefit some of Salem’s poorest and
most vulnerable residents, the City intends to continue funding some combination of these types of
programs over the next five year period, including during the first year’s Action Plan.
Discussion
In late 2014, the Mayors of Salem and Beverly joined together to create a joint task force to better
understand and address the homelessness problem. The task force is co-chaired by the two mayors and
includes representatives from city departments and service agencies. In February, 2015, Danvers and
Peabody were invited joined the task force. The Mayor’s Task Force on Homelessness intends to analyze
sub-populations of homeless people: the chronic homeless, homeless families, seniors, teens and young
adults, as well as those with substance abuse, mental health and/or behavioral health issues. The group
will also look at long-term needs for supportive housing, emergency shelter, day programming, and
other support systems. Its purpose is to obtain a better understanding of the size and nature of the
homeless population and to identify additional strategies and services needed to address this problem.
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AP-75 Barriers to affordable housing –91.220(j)
Introduction:
Throughout the process of gathering input through public meetings and through interviews with service
providers, business associations, and housing professionals, the City has not found 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, envi ronmental
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.
Consider an inclusionary zoning ordinance to ensure that future development includes
low-and moderate-income units.
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.
Work toward the development of a 40R Smart Growth Overlay District within the Point
Neighborhood to encourage commercial and housing diversity in mixed-use
developments at high minimum densities with a minimum of 20% deed-restricted
affordable housing units allowed as-of-right.
Discussion
In order to fund and facilitate the process of developing a 40R SGOD, the City intends to apply to the MA
Department of Housing and Economic Development’s Planning Assistance Toward Housing (PATH) grant
program. The PATH program supports multi-family housing proximate to existing infrastructure,
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community services and public transportation, as well as projects containing ancillary commercial
facilities that are secondary to the residential use of properties. The goal of PATH is to increase the
supply of multi-family, mixed-income housing across the Commonwealth by encouraging community-
based planning activities that will lead directly to housing production. If the PATH grant is awarded,
funding will go toward the facilitation of public meetings, solicitation of community input, and the
development and approval of ordinance language. The City envisions this process taking place in 2015.
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AP-85 Other Actions –91.220(k)
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.
The City is looking to undertake a planning process in 2015 that will create a 40R Smart
Growth Overlay District (SGOD) within the Point Neighborhood. Adoption of a 40R
district 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. Under state law, a 40R SGOD district requires a minimum of 20%
deed-restricted affordable housing units. In order to fund and facilitate the process of
developing a 40R SGOD, the City intends to apply to the MA Department of Housing and
Economic Development’s Planning Assistance Toward Housing (PATH) grant program.
Actions planned to foster and maintain affordable housing
The following summarizes Salem’s strategy to address housing needs. This strategy includes both new
housing production and preserving the existing housing stock for working families. The key components
are:
Producing New Housing Units -Working with private and nonprofit developers, Salem
supports the creation of affordable housing units through the conversion of
underutilized buildings and parcels.
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.
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Funding to support affordable housing -The Affordable Housing Fund established by the
City Council provides resources to create and preserve affordable housing. The City
negotiates with developers on a case-by-case basis for affordable units.
In 2012 the City passed the Community Preservation Act, which raises funds through a
surcharge on property tax bills.CPA requires a minimum spending (or reserve) of 10% of
the annual budget on community housing projects.
Improving Public Housing -The Salem Housing Authority (SHA) and Community
Teamwork, Inc. in Lowell currently administer a combined total of 1,215 Section 8
vouchers in Salem. In addition, the SHA 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.
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 offers a $1,000 increase over the maximum loan
amount for homeowners who complete First-Time Homebuyer Counseling. In addition,
DPCD staff provides assistance to coordinate other resources for homebuyers, such as
Massachusetts Housing Partnership SoftSecond Loan Program and a variety of
homeownership 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 to this issue, 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, 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 the region’s affordable units. Salem is committed to
working with its partners in the North Shore HOME Consortium and with the region’s
mayors to encourage the development of housing throughout the area in an effort to
increase the supply of housing for all.
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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
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
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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, including Salem Public Schools, and programs administered by
non-profit agencies such as Salem Cyberspace, the Boys and Girls Club, 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, Training Resources of America and the North Shore Workforce
Investment Board. With assistance from a Working Cities Challenge grant, Salem is working toward
bringing the Point Neighborhood’s economic indicators in line with rest of the city by focusing on four
issue areas: economic development, small business development, workforce development, and
leadership development.
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 se rvices 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.
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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 social
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.
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Program Specific Requirements
AP-90 Program Specific Requirements –91.220(l)(1,2,4)
Introduction:
Over the past five years,Salem met all timeliness requirements, and program expenditures were
consistent with its 5-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
Salem intends to spend at least 70% of CDBG funds to benefit persons of low and moderate income in
FY16.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.
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Appendix
1 -Map
2 -Application for Federal Funding and Certifications
3 -Other Resources
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Appendix 1 –LMI Map
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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,
as well as several key organizations, including the Salem Housing Authority, North Shore Community
Action Programs, Inc., Lifebridge and North Shore Community Development Coalition. 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 FY16. The dollar amounts are best estimates and do not
indicate a minimum or maximum amount that will be leveraged.
City of Salem FY16 funding resources/anticipated leveraged funds (includes full amounts applying for,
applied for, awarded or awarded and partially spent):
Source Amount
Federal Sources
CDBG $952,642
HOME $88,295
Program Income $115,000
Subtotal Federal $1,155,937
Federal Sources (Non-CDBG or HOME):
Environmental Protection Agency -Revolving Loan Fund (awarded with
Peabody, MA -for use over 5 years)
$950,000
Subtotal Federal $950,000
State Sources:
MA Office of Coastal Zone Management –Coastal Community Resilience
Program (awarded)
$200,000
MA Office of Coastal Zone Management –Green Infrastructure for Coastal
Resilience Program (awarded)
$75,000
MassDevelopment –Remediation Program (applying)$500,000
MA Cultural Council –Cultural Facilities Funds (awarded)$20,000
DHCD Planning Assistance Toward Housing Program (awarded)$30,000
EOHED -MassWorks Infrastructure Program 2013 (awarded for Grove St.
project)
$1,475,000
EOHED -MassWorks Infrastructure Program 2014 (awarded for
Washington/Dodge project)
$2,535,000
Seaport Advisory Council (awarded)$4,050,000
MA Dept. of Energy Resources Green Communities (applied)$250,000
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Executive Office of Energy and Environmental Affairs –Parkland Acquisitions and
Renovations for Communities (awarded for Winter Island Trail)
$192,404
Massachusetts Historical Commission –Survey & Planning Grant (awarded for
Fort Pickering)
$12,500
Massachusetts Historical Commission -Massachusetts Preservation Projects
Fund (applied for Salem Common Fence)
$50,000
Subtotal State $9,389,904
Local/City Sources:
Capital Improvement Program $50,000
Community Preservation Act (total applications recommended for funding)$650,975
General Fund (Conservation Commission, Historical Commission, Planning
Department, Planning Board, Market Place)
$766,148
Subtotal Local/City $1,1,467,123
Private/Other Sources:
Homebuyer matching funds $37,500
Business matching funds (Main Streets)$57,471
Subtotal Private/Other $94,971
TOTAL $13,057,935
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, 2014):
Source Amount
Federal Sources
U.S. Department of Housing and Urban Development Housing
Assistance Payments
$10,159,521
HUD Capital Fund Program 2014 $40,906
HUD FY14 Federal Public Subsidy $162,394
Subtotal Federal $10,362,821
State Sources:
MA Dept. of Housing & Community Development 4001 $485,255
MA Dept. of Housing & Community Development MRVP $9,880
MA Dept. of Housing & Community Development Formula Funding $281,582
Subtotal State $776,717
Local/City Sources:
$0
Subtotal Local/City $0
Private/Other Sources:
$0
Subtotal Private/Other $0
TOTAL $11,139,538
Comment [JG1]:Extra $
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North Shore Community Development Coalition 2014-2015 funding sources/anticipated leveraged funds:
Source Amount
Federal Sources
LIHTC $4,521,000
HOME Funds $400,000
CDBG $59,075
Federal Historic Credits $1,832,000
DOL -YouthBuild $437,327
Subtotal Federal $6,812,075
State Sources
MA Dept. Elementary Secondary Education -YouthBuild $125,998
State Historic Credits $1,221,750
Brownfield Redevelopment Fund $166,513
Subtotal State $1,469,263
Local/City Sources
CDBG Salem $9,075
CDBG Peabody $10,000
Subtotal Private/Other $17,075
Private/Other Sources
Grants/Foundations $111,750
Events $92,849
Contributions $76,000
Community Investment Tax Credit $200,000
Federal Home Loan Bank $400,000
Eastern Bank Mortgage $2,000,000
Fees (development, asset mgmt., property, resident services,
development overhead)$358,766
Subtotal Private/Other $12,125,880
TOTAL $24,165,058
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Real Estate Development Source Summary 2009-2017, North Shore CDC
Project Name Palmer Cove Salem Point II
Harbor-Lafayette
Street
Congress, Dow &
Ward
47 Leavitt
Street
34 Peabody
Street
Affordable Housing Units 15 77 27 63 15 n/a
Year Completed 2009 2015 est. 2016 est. 2017 est. 2018 est. 2018
Federal LIHTC $$ 5,151,000 $ 1,412,000 $4,082,569
City/Consortium HOME $846,995 $ 450,000 $ 50,000 $ 250,000
Community Development Block Grant (CDBG)$ 50,000
Tax Credit Assistance Program (TCAP)$-$-$-
Federal Historic Tax Credits (FHC)$-$ 1,811,000 $1,986,985
State Affordable Housing Trust (AHT)$1,211,922 $-$ 1,000,000 $1,144,061
CATNHP $-$-$-$ 500,000
Housing Stabilization Fund (HSF)$1,211,923 $-$ 700,000 $1,000,000
HPSTF $-$-$ 1,000,000 $-
Facilities Consolidation Fund (FCF)$548,580 $-$-$-
State HOME $-$-$-$ 756,260
Housing Innovations Fund (HIF)$573,081 $ 1,400,000 $-$-
Danvers State Preservation Fund $182,000 $-$-
State Low-Income Housing Tax Credits (STC)$-$-$2,688,000
State Historic Tax Credits (SHC)$-$ 1,221,750 $ 212,500
Green Aff Hsg Dev Program $-$-$-
MassHousing Design Grant $-$-$-
Brownfields Redevelopment Fund $-$55,750 $-
Local Community Preservation Act (CPA)$-$-$ 171,005
Private Debt $650,000 $-$-
Tax Exempt Bonds $-$ 2,100,000 $ 350,000 $5,262,500
Federal Home Loan Bank-Boston $-$ 400,000 $ 250,000 $-
Enterprise Foundation Grant $-$-$-
Energy Rebates & Utility Grants $-$-$-
Other LP Contributions $-$-$-
Other GP Contributions/Developer Equity $-$93,000 $-
Deferred Developer Fee $244,529 $-$-
Accrued Interest $-$ 104,440 $-
Other-Seller Note $-$ 5,015,405 $ 381,567 $-
Other-Rollover of Reserves $-$ 247,000 $-
Other-Commercial Condominium Sale $-$-$-
Total Development Cost:$5,469,030 $18,049,345 $ 4,859,939 $ 18,353,880 $6,500,000*$9,600,000 *
TDC / Unit:$364,602 $ 234,407 $ 179,998 $ 291,331
Hard Construction Cost:$ 7,040,000 $ 1,616,990 $7,170,460
Hard Cost / Unit:$-$91,429 $ 59,889 $ 113,817 $-
* estimated
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North Shore Community Action Programs, Inc.FY16 funding resources/projected revenues:
Source Amount
Federal Sources
F.E.M.A.12,800
Fuel Assistance 1,942,275
Federal Indirect
Salem Home Fund 35,000
Salem Trust Home Fund 40,000
DOE –Action 13,455
DOE 379,440
VITA Grant: EITC Tax Prep 7,900
Subtotal Federal 2,430,870
State Sources
CSBG 146,432
DHCD -Housing 2,125,455
CSBG -Advocacy 101,710
DHCD -EITC 5,386
CDBG Housing 248,665
CPSS 18,000
DOHE 75,000
CDBG (ABE)265,273
DHCD/LHAND Weatherization 170,160
HOPWA 8,900
CSBG Housing Law 27,338
Subtotal State 3,192,319
Local/City Sources
Salem CDBG 9,600
ASOST-Q 31,794
Subtotal Local/City 41,394
Private/Other Sources
Donations 284,783
Private Contracts & Grants 1,685,671
Tuition & Service Fee 1,333,510
Subtotal Private/Other 3,303,694
TOTAL 8,968,547
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OMB Control No: 2506-0117 (exp. 07/31/2015)
Lifebridge FY15 funding sources/anticipated leveraged funds:
Source Amount
Federal Sources
HUD -McKinney Funds $98,000
Subtotal Federal $98,000
State Sources:
DHCD $387,515
Subtotal State $387,515
Local/City Sources:
CDBG $9,800
Subtotal Local/City $9,800
Private/Other Sources:
Donations $250,000
Private Contracts & Grants $60,000
Commercial Income $425,000
Private Client Fees 0
Subtotal Private/Other $735,000
TOTAL $1,230,315
Services
In addition to financial assistance provided to Salem residents through the City and its community
partners,there are numerous 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).They provided 29,875 trips for Salem residents in FY13.
Independent Living Center of the North Shore and Cape Ann,Inc.
The ILCNSCA is the North Shore and Cape Ann service and advocacy agency for all persons
with disabilities. The agency is located at Shetland Properties in the Point Neighborhood and is
available to assist with completion of SSI/SSDI,food stamps and various housing applications.
ILCNSCA advertises monthly times that are set aside where staff are available in a group setting to
offer guidance on completing the Universal Housing application for subsidized housing across
Massachusetts.They assist approximately 30 people annually with completing the UHA,Section 8
centralized waiting list or regional Section 8 waiting list.
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
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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 FY14 include:
•VITA -51
•Housing applications -35
•Job applications -5
•Other -45
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 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 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,support groups,
individual advocacy,legal advocacy,and hospital advocacy,children’s services,a shelter program,
community education,and a Parent-Child Trauma Recovery Program.Advocates meet with
individuals one-on-one to support them with identifying their needs and accessing resources.
They also provide financial literacy specifically to clients living in their shelter. The agency is located
at Shetland Properties in the Point Neighborhood.
Citizens for Adequate Housing
Citizens for Adequate Housing,Inc.ends homelessness one family at a time by providing a
dignified,nurturing,and supportive environment that empowers each family to reach its social and
economic potential.They provide a temporary home for homeless families and permanent
affordable housing to low income families.18%of their residents are from Salem and are placed
with CAH for temporary family shelter.They provide one-on-o ne financial literacy training (using
DVDs)and are considering partnering with a local bank to do a more in-depth training in FY15.
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,they provide a range of programs and services in five key areas:Education and Training,
Economic Stabilization,Housing and Homelessness Prevention,Energy Services,and Home Care.
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Under Energy Services,NSCAP provides Fuel Assistance to 939 eligible households in Salem.As of
5/20/15,the agency has provided $530,410.67 in fuel assistance for the 2014 -15 season.
NSCAP also provides tax preparation services for low income households whose gross income may
qualify them for the Earned Income Tax Credit.The program is free and runs from January through
April at three sites.In 2014,the Peabody site served 194 Salem residents,the Beverly site served
12 Salem residents and the Salem site (held at North Shore CDC in the Point neighborhood) served
96 Salem residents.
NSCAP will also assist clients that have case management (i.e.rep payee’s,shelter clients, HOPWA
clients,ABE clients,etc.)with preparation of applications for Social Security Disability,food
stamps/SNAP or other applications.
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, as well as Journeys of Hope to offer vocational training in culinary arts.
The Boys and Girls Club of Greater Salem (steps from the Point Neighborhood), 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, Division of
Unemployment Assistance,North Shore Career Center and MA Rehabilitation Commission.
Links to social service agency websites are located at
http://www.salem.com/Pages/SalemMA_DPCD/dpcdlinks.
The Independent Living Center also provides an on-line “yellow pages”of resources.It is located at
http://www.ilcnsca.org/yellowpages.php