Urban Development's 2019 Award Recs

By Sarah Owens and Michael Livingston

Training materials on UDD's new process for federal programs

The Urban Development Department (UDD) recently completed its review of applications for the City's 2019 allocation of CDBG, HOME and General Fund public service dollars using a new process developed by Urban Renewal Department staff.

The new process was established in response to advice last fall from the U.S. Department of Housing and Urban Development.  See "Conflict at the CSHC."  It relies on an ad hoc committee for citizen input, instead of the City boards/commissions used since inception (SSAB, HUDAC, CSHC).

The ad hoc committee members for 2019 are listed here, at the very bottom.

The old process had other problems beside conflicts of interest, the biggest being that it was very subjective.  Unwritten and lacking objective standards, it was basically arbitrary.  The new process is, at least, written.  Asked whether it worked satisfactorily in the latest round of applications, or whether more adjustments were needed, UDD Director Kristin Retherford responded "Yes, I do think the new process worked well. I also think that as we focus more on things like project readiness, more systemic approaches, etc., that the future could see additional refinements to the process."  Providers we talked to were, unsurprisingly, more focused on results than the process (results in their favor = good process, results not in their favor = bad process).

The recommenda-tions were announced last Friday, April 19.

Under the old process, applicants were permitted to witness the deliberations of  the citizen board or commission, but not any more.

Under the new process, applicants submit their materials and wait several weeks for an announcement.

There were fewer applications this year than last.  There was also less money available. It is concerning that there were not more applications for housing construction and rehab projects.

According to the 
Draft Annual Action Plan (AAP), the City set aside an additional $223,354 for housing development or rehab by an unidentified Community Housing Development Organization (CHDO).  That amount was not included in the awards announcement, it only appears in the draft AAP.

If the 2019 recommendations are approved, which they usually are, Salem Housing Authority (SHA) will receive $425K plus another $100K in CDBG funds for the Yaquina Hall project, to reimburse SHA for the $425K used to acquire the multi-family housing complex and additional land located at 4107 Fisher Road (project has since been named Redwood Crossings).  See staff report here.  WestCare will receive $70K to make ADA improvements to its 30-bed facility for homeless veterans (located off Center Street, where the former Salem Outreach Shelter used to be before it closed in 2013).  Integrated Supports for living will receive $81K to rehab "Fisher/Sizemore Apartments", and Polk CDC will receive $180K for owner-occupied housing rehab somewhere in West Salem (?).  Because there weren't more applications for housing grants, $106K in CDBG funds will likely go to Merit for "microenterprise."

2019 HOME funds are all going to tenant-based rental assistance and security deposits -- no housing rehab, preservation or new construction.  The City definitely needs to find ways to leverage its federal dollars more effectively.

The only substantive change in 2019 social (or "public", as it's referred to in this anti-social age) services recommendations is Salem Interfaith Hospitality Network (dba Family Promise)'s case management grant is recommended to go to Mid-Willamette Community Action Agency to staff Salem's cold-weather shelter(s).  See very brief project descriptions in the awards announcement.

Not surprisingly, Jayne Downing managed to avoid having the Center for Hope and Safety disqualified from receiving CDBG funds by HUD conflict of interest rules.  See "Conflict at the CSHC."

The City is not required to spend CDBG funds on social services, and could decide to spend the $400K of General Fund dollars on something more than maintaining the same projects.  What's missing, however, is a diversified applicant pool and a shared strategy to guide funding decisions.     

6/9/19 Update:  the staff report to the City Council for the May 28 public hearing showed a change in the recommended CDBG grant to the Salem Housing Authority for housing (Yaquina Hall).  Instead of $525,000, the recommended grant was $451,960 (a difference of $73,040).  No explanation was given for the change.  See staff report here.