TO: Mayor and City Council
THROUGH: Krishna Namburi, Interim City Manager
FROM: Kristin Retherford, Community Planning and Development
SUBJECT:
title
2025-2029 US HUD Consolidated Plan (ConPlan), 2025 Annual Action Plan (AAP) and Analysis of Impediments to Fair Housing (AIFH)
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Welcoming and Livable Community
end
SUMMARY:
summary
As a condition for receiving Community Development Block Grant (CDBG) and HOME Investment Partnership grants (HOME) from US HUD the City is required to develop a 5 year ConPlan detailing overall needs of the community and goals for meeting them. The ConPlan also contains the Year 1 AAP budget. There are prior years’ unspent funds included in the Year 1 AAP. The AIFH is a separate but integral document. This public hearing is to allow for public and Council comment prior to adoption on July 28th.
end
ISSUE:
Shall City Council advance the 2025-2029 ConPlan, 2025 Annual Action Plan, Prior Year Annual Action Plan amendments and Analysis of Impediments to Fair Housing for approval at the July 28, 2025 meeting?
RECOMMENDATION:
recommendation
Advance the 2025-2029 ConPlan, 2025 Annual Action Plan, Prior Year Annual Action Plan amendments and Analysis of Impediments to Fair Housing for approval at the July 28, 2025 meeting.
body
FACTS AND FINDINGS:
ConPlan/AAP time is referenced in federal fiscal years, which are one off a City fiscal year (ie. ConPlan 2025-2029 = City FY 2026-2030).
The City’s past HUD grants have averaged $1.4M in CDBG and $.7M in HOME funds annually and the announced 2025 grants are close to that average. Most of the funds are spent by subgranting to various community partners who have to meet the same rules that apply to City directed projects. The rules are extensive which makes choosing capable community partners a necessity. CDBG projects in particular have to remain on schedule to allow the City to meet its annual timeliness test. The City has failed 4 consecutive timeliness tests and must take action to ensure it passes the next one in May 2026.
Staff is recommending a change from past AAP practice which allocated funds at the project level rather than the goal level. Project level allocation has led to the need for cumbersome amendments when projects have to be changed as community partners receive or don’t receive other needed funding from other sources. Goal level allows more agility between other qualified projects.
BACKGROUND:
The data source, form and format of the ConPlan is highly prescribed by HUD. Council has the most influence on Sections SP45 Goals Summary and AP35 Projects.
The Goals in the 2020 ConPlan were:
• Program Administration
• Promote Economic Development
• Support Public Service Programs
• Enhance Access to Public Facilities
• Expand Affordable Housing
• Support Efforts to End Homelessness
• Community Housing Development Organization (CHDO) set aside
The Goals in the 2025 ConPlan are recommended to be:
• Program Administration
• Public Services
• Housing
• Public Facilities and Neighborhood Improvements
• Economic and Asset Development (ie. microenterprise).
There is essentially no change.
The Year 1 AAP absorbs prior years’ unspent allocations and the PY2025 entitlement grant arranged by goal (HOME and CDBG combined):
• Program Administration-$383,590
• Public Services-$244,280
• Housing--$4,664,250
• Public Facilities and Neighborhood Improvements--$1,455,820
• Economic and Asset Development--$90,000
Although the Annual Action Plan is recommended to focus budgeting at the Goal/HUD project level, staff has prepared a breakout at the City project level for Council’s consideration.
CDBG Prior years’ unspent grant funds on previously approved projects
• Land Acquisition--$827,770. Possible acquisition of property adjacent to Market St acquisition.
• Homebuyer Assistance for Macleay CLT development--$204,500.
• WestCare veterans housing rehab--$400,000.
CDBG Prior years’ unspent grant funds on newly proposed projects
• Marion Polk Food Share warehouse acquisition--$600,000. Project received $6M in state funding and $300,000 in Marion County CDBG funding. Still a gap to fill.
• Center for Hope and Safety Roof repair--$245,000. Roof of advocacy office leaks and has caused internal damage.
• Salem Housing Authority Englewood West/Southview Terrace multi family rehab--$251,205. Reserves this amount for a substantial rehab of 112 units of senior housing to begin in 2027. Gap funding.
CDBG Program Year 2025 grant ($1,469,203 + $50,000 program income)
• Admin--$303,804.
• Public Services (15% cap--$244,280 available).
o Center for Hope and Safety domestic violence case management--$100,000.
o Northwest Human Services HOST youth program--$59,280.
o St Francis Shelter homeless case management services--$85,000.
• Public Facilities
o Center for Hope and Safety advocacy office electrical and parking lot rehab--$625,330.
• Housing-- Salem Housing Authority Englewood West/Southview Terrace multi family rehab--$265,260. Reserves this amount for a substantial rehab of 112 units of senior housing to begin in 2027. Gap funding. Total CDBG reserved from both prior years’ and PY2025 = $516,560.
• Economic Development-Willamette Valley Hispanic Chamber of Commerce Latine Microenterprise Development--$90,000.
HOME Prior years’ unspent grant funds on previously approved projects
• Macleay CLT--$52,280 to continue vertical construction on 4 HOME units.
• Homebuyer assistance for Macleay CLT development--$95,500.
• Applegate Veterans Housing development--$46,250 to finish project on 4 HOME units.
• Voyagers Village--$615,940 to continue vertical construction on 3 HOME units plus City project delivery costs.
HOME prior years’ unspent grant funds on newly proposed projects
• Salem Housing Authority Englewood West/Southview Terrace multi family rehab--$1,183,940. Reserves this amount for a substantial rehab of 112 units of senior housing to begin in 2027. Gap funding.
HOME Program Year 2025 grant ($672,526 + $125,000 program income)
• Admin--$79,750
• CHDO Operating--$33,630
• Salem Housing Authority Englewood West/Southview Terrace multi family rehab--$684,150. Reserves this amount for a substantial rehab of 112 units of senior housing to begin in 2027. Gap funding. Total HOME reserved from both prior years’ and PY2025 = $1,868,080.
Analysis of Impediments (significant differences from 2020 AI)
• No longer includes Keizer references due to dissolution of Consortium in 2020.
• Enumerates both Oregon and City protected classes in the document.
• Percentage of foreign-born residents increased from 9.6% to 12.2%.
• Percentage of language other than English spoken at home increased from 8.3% to 22.2%.
• Denial of mortgage loans for Hispanic/Latino residents increased from 17.6% to 51%.
• Denial of mortgage loans for non-Hispanic/Latino residents increased from 11.1% to 44%.
• Denial of mortgage loans for Black residents increased from 10.1% to 44%.
• Denial of mortgage loans for Asian residents increased from 15.5% to 57%.
• Denial of mortgage loans for Pacific Islander residents increased from 18.8% to 33%.
• Denial of mortgage loans for White residents increased from 11.5% to 44%.
• Dissimilarity index for Hispanic residents increased from ~33 to 39, meaning the City grew more segregated.
• Implemented revisions to comprehensive plan and zoning as part of Our Salem 2023 to increase densities and encourage multifamily housing to meet demand.
• Included 2024 results from Western Oregon University’s annual Salem Community Belonging Survey.
Analysis of Impediments (minor/no difference from 2020 AI)
• No change to major contributing factors in constrained housing choices:
o Cost burden.
o Lack of affordable options.
o Lack of accessible options.
o English language proficiency barriers.
o Discriminatory renting practices based on disabilities, race, familial size.
o Insufficient testing and enforcement.
o Landlord education.
• Poverty rate decreased from 15.7% to 14.7%.
• One census tract of Racially/Ethnically Concentrated Area of Poverty.
Michael Brown
Manager of Housing Production Programs
Attachments:
1. Proposed 2025-2029 ConPlan
2. Proposed Analysis of Impediments to Fair Housing