Lobby of Salem City Hall (Salem Reporter files)
The city of Salem expects to give less federal money this year to support new social services and housing projects.
Every year, Salem receives an allotment from the U.S. Department of Housing and Urban Development that can be passed on to local churches and social service providers to fund new initiatives.
City officials say they are likely to get the same amount as last year — about $2 million — but accounting changes mean there will be less money available for the annual grants.
There are two main changes. One is that last year the city’s Urban Development Department recouped unspent money to create a bigger pool, according to Shelly Ehenger, federal programs manager.
“There were some projects that were funded (in the grant process) and for different reasons they were not able to get their projects funded,” she said. “We recaptured some funds and found some other dollars that had not been used. We also didn’t have a lot of projects at that time so we were able to fund at a greater amount.”
Economic Development Manager Annie Gorski said it’s unlikely they will be able to do that again this year, but couldn’t say for sure.
The other change is that Salem has already promised $425,000 of this year’s federal allotment to the Salem Housing Authority. The organization won a grant for that amount last year for its 55-bed low-income housing project Yaquina Hall, but had to return it when the project delayed.
The Salem City Council agreed in September to give the organization money in the current round of grants.
According to numbers provided by Gorski, the pool available in the grant process last year was about $3.3 million. This year it stands closer to $1.5 million.
Salem Housing Authority Director Andy Wilch said the organization will use its $425,000 partly to build Yaquina Hall, but also to repay the city for buying land on Fisher Road for a housing project called “Redwood Crossing.”
“The city has been carrying it but we’re going to buy it, of course,” said Wilch.
Gorski said earmarking the $425,000 grant for housing authority meets the city’s stated goals.
“Affordable housing and addressing homelessness and housing is a citywide strategic goal and it’s also a goal in many of our urban renewal areas,” said Gorski.
Have a tip? Contact reporter Troy Brynelson at 503-575-9930, [email protected] or @TroyWB.
