FINAL AP Draft 2025-2026 — File 25-1005

Annual Action Plan 1 OMB Control No: 2506-0117 (exp. 09/30/2021) Executive Summary AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) 1. Introduction The City of Somerville is an entitlement jurisdiction that receives federal funds from the U.S. Department of Housing and Urban Development (HUD) to support local community development and affordable housing activities. The federal block grant programs that provide these resources include the Community Development Block Grant (CDBG), the HOME Investment Partnerships Program (HOME) and the Emergency Solutions Grant (ESG). This Annual Action Plan will identify how the City plans to allocate its HUD funding to address these priority needs. The City of Somerville 2025-2026 Annual Action Plan is the second plan of the 2024-2028 consolidated planning cycle. The annual action plans are guided by the needs, goals, and assessments set forth and established in the consolidated plan. The consolidated plan represents a collaborative process that was undertaken to identify current housing and community development needs and to develop goals, priorities, and strategies to address those needs, especially for low- and moderate-income households. Goals, priorities, and strategies are carried from the consolidated plan into each annual action plan. In this plan, a robust process was undertaken to better guide and focus funding from the U.S. Department of Housing and Urban Developments formula block grant programs. 2. Summarize the objectives and outcomes identified in the Plan In developing the 2025-2026 Annual Action Plan, the city identified several areas that continue to present major impediments to low- and moderate-income residents. Rising home values, rents, and aging housing stock present significant challenges for meeting affordable housing needs. High demand strains the availability of resources to assist households experiencing homelessness, and neighborhood infrastructure and public facilities remain a high need. Concern over a changing economic landscape and its effect on the low- and moderate-income population of Somerville was a theme that emerged in the consultation process in the creation of this plan. As outlined in the Consolidated Plan, the overarching goal is to focus resources and projects across the following project goals: • Creating and Preserving Affordable Housing • Neighborhood Stabilization and Revitalization • Infrastructure and Urban Environment Improvements • Improve Facilities that Serve Community Needs • Supporting Vulnerable Populations • Mitigating and Ending Homelessness 3. Evaluation of past performance The 2024-2025 program year has been spent making progress towards the goals of creating and preserving affordable housing, creating more vibrant and suitable living environments in target

Annual Action Plan 2 OMB Control No: 2506-0117 (exp. 09/30/2021) neighborhoods, unlocking economic opportunities for local small businesses and supporting them through changing environments, and delivering key public and social service programs through these funds. Housing cost burden and affordable housing supply remain the largest issues facing low- and moderate- income residents of the city. While market conditions remain extremely challenging, the City continues to take steps to address these problems. The City has leveraged CDBG, HOME, and local funds to support new housing construction in partnership with the Somerville Housing Authority, Somerville Community Corporation, Somerville Community Land Trust, and other nonprofit developers. The Somerville Housing Trust Fund has also supported housing assistance programs aimed at stabilizing tenancies and preventing homelessness. The City has also made investments to revitalize struggling business districts and make physical improvements to enhance the environment of target neighborhoods, and to improve the recreational and open space opportunities available to low- and moderate-income residents by renovating a number of parks in low- and moderate-income neighborhoods. The City of Somerville allocates all the allowable 15% of public services to local non‐profit agencies that provide a wide range of social services to the neediest populations in Somerville. The populations served by these funds include low to moderate income youth, the elderly, persons with disabilities and special needs, and other low to moderate income residents in need of targeted services. The City of Somerville's homelessness assistance efforts encompass a comprehensive range of services, including Homelessness Prevention, Rapid Re-housing, Street Outreach, Homeless Management Information System (HMIS) reporting, Emergency shelter provision, participation in the Balance of State CoC, and financial assistance for housing search and placement. 4. Summary of Citizen Participation Process and consultation process In the process of developing this plan, the City held two public hearings. One was held during the process of drafting the Plan to receive input, while the other was a discussion of the draft before submission. A form was sent out to city staff and community stakeholders to gather input during the drafting process as well. A public RFP process was held to solicit bids for local nonprofit organizations and public service providers to allocate the 15% Public Services allocation and ESG allocation. 5. Summary of public comments This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan. Across an online survey and two public meetings, several themes emerged regarding this plan. One large concern was over the availability of affordable housing in the city, both in how to increase availability of affordable residences and how to increase funding for housing related programs. Another theme was the state of the economy, and how rising costs and changing national trends would affect small businesses in Somerville and the low-income population at large. The wellbeing of at-risk citizens, including seniors and those with disabilities also was a recurring topic. 6. Summary of comments or views not accepted and the reasons for not accepting them

Annual Action Plan 3 OMB Control No: 2506-0117 (exp. 09/30/2021) There were no comments or views that were not accepted. 7. Summary Somerville does its best to leverage limited funding to address the needs of its low- and moderate- income residents and vulnerable members of the population through housing, capital improvements, and social service programs. Nevertheless, as housing costs escalate rapidly in Somerville and the Boston region, the need for affordable housing, economic assistance, and community investments is greater than ever.

Annual Action Plan 4 OMB Control No: 2506-0117 (exp. 09/30/2021) PR-05 Lead & Responsible Agencies – 91.200(b) 1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. The following are the agencies/entities responsible for preparing the Annual Action Plan and those responsible for administration of each grant program and funding source. Table 1 – Responsible Agencies Agency Role Name Department/Agency CDBG Administrator SOMERVILLE OSPCD HOME Administrator SOMERVILLE OSPCD ESG Administrator SOMERVILLE OSPCD Narrative The Mayor's Office of Strategic Planning and Community Development (OSPCD) is the department responsible for the management and oversight of the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) entitlement grant programs. OSPCD is comprised of eight functional divisions which include Finance and Administration; Economic Development; Historic Preservation; Housing, Mobility; Housing Stability; Planning, Preservation, and Zoning; and Public Space and Urban Forestry. Each division carries out grant activities and programs related to their specific functional area. The Finance and Administration Division is responsible for general financial management, reporting and general oversight and compliance and is the division which largely oversees the CPD grants. The City of Somerville is a member of the Balance of State Continuum of Care (CoC). OSPCD also utilizes subrecipient organizations and agencies, identified through an RFP process, to implement specific public service programs and projects identified in the Consolidated Plan. Consolidated Plan Public Contact Information Questions concerning the Annual Plan may be directed to: Alan Inacio Director of Finance and Community Development Mayor’s Office of Strategic Planning and Community Development 93 Highland Ave. Somerville, MA 02143

Annual Action Plan 5 OMB Control No: 2506-0117 (exp. 09/30/2021) Phone: [phone removed] ext. 2539 Email: ainacio@somervillema.gov

Annual Action Plan 6 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-10 Consultation – 91.100, 91.200(b), 91.215(l) Introduction The consultation process for the 2025-2026 Action Plan entailed two in-person meetings, a survey which was distributed to city staff and relevant stakeholders, conversations with relevant stakeholders and staff, and findings from recent public surveys and planning efforts were incorporated into the Plan where relevant. Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l)) The City of Somerville and OSPCD coordinate activities between public housing and assisted housing agencies through funding and reporting outcomes to state and federal agencies. Nonprofit and for-profit housing developers and housing providers are in regular contact with OSPCD staff regarding permits, project ideas and potential state and federal grants and local funding sources that could be combined with CDBG and HOME funds for a successful housing project proposal, in line with community development goals. The HOME program provides vital funding to affordable housing providers that also apply for tax credit funding to develop affordable housing units. OSPCD and other City departments are involved in many community collaborations with an aim to enhance coordination between housing and service providers to better serve the community, such as the Anti-Displacement Task Force, Food Security Coalition, and Public Safety for All Taskforce. OSPCD is in partnership with housing providers and health and human services providers to create subsidized affordable housing units that are linked to mainstream and social services. The City issues RFPs each year where community agencies can submit plans and bids, and through that process the City selects agencies to operate anti-poverty programs with CDBG public services and ESG funds. In conjunction with energy assistance and weatherization assistance programs that provide home repairs, these efforts emphasize community development sustainability and services to low-income residents. The City has supported the creation of 10 permanent supportive housing units and recently committed funding for the rehabilitation of a property that serves households referred by the Department of Mental Health with supportive services. Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness. Somerville is a member of the Balance of State (BoS) CoC. The BoS is a CoC that encompasses several Massachusetts municipalities in the Greater Boston area and is administered by the state’s Executive Office of Housing and Livable Communities. Each year, in response to the annual NOFO, the BoS submits an application for CoC funding on behalf of the providers who are part of the BoS. Prior to the CoC funding application being submitted, the BoS receives individual applications from providers who are looking for renewed funding for their programs or for funding for a new program. The BoS then ranks the applications received and the application for CoC funding is reflective of those project rankings.

Annual Action Plan 7 OMB Control No: 2506-0117 (exp. 09/30/2021) Once funding is received, funding is dispersed to providers based on the BoS project rankings. The BoS also manages Coordinated Entry (CE) in the CoC and provides a CE Regional Navigator which directs CE applicants to the appropriate region to access CE within the BoS. The Somerville Homeless Coalition is the CE point of contact for the Metro Region of the BoS, which includes Somerville. OSPCD staff attend monthly BoS planning meetings to stay abreast of all CoC activities. OSPCD staff also participate as needed in various BoS committees, including the Project Evaluation Committee and the committee to review and revise the BoS governance charter. OSPCD staff convene quarterly meetings with Somerville providers who operate programs in the BoS CoC. The goal of the meetings is for OSPCD staff and providers to provide updates and share experiences related to CoC work. The OSPCD Housing Division is responsible for planning and carrying out the annual Point In Time (PIT) count of unsheltered individuals on a specific night (usually the last Wednesday in January). Following the count, staff report the unsheltered data to the BoS, and work with local providers to make sure the BoS receives shelter data from the night of the count. Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS Somerville has been a member of the Massachusetts Balance of State CoC since 2019. Several members of OSPCD's Housing Division staff serve on the CoC, and members of the CoC participate on the ESG Advisory Committee. Feedback on the Plan was solicited regarding permanent supported housing needs; allocation of ESG funds; updating performance standards for ESG funded activities; and use of the Homeless Management Information System (HMIS) from ESG funded agencies and other stakeholders in preparation for the city's formula funding. Participants were asked for opinions on activities to address homelessness and subpopulations to be served by homeless assistance programs and consideration was given to HUD's encouragement of allocating ESG funds for rapid re-housing. Addressing the needs of the chronically homeless population has proven challenging due to the severe shortage of affordable rental housing in Somerville, particularly for those with limited or no income and special needs often associated with chronic homelessness. Low vacancy rates have created a highly competitive rental market, where landlords are less inclined to house individuals experiencing chronic homelessness. As a result, Emergency Solutions Grants (ESG) recipients have focused on homelessness prevention and serving at-risk populations. However, recognizing that serving the chronically homeless is a priority for the Continuum of Care (CoC), the Office of Strategic Planning and Community Development (OSPCD) will increase efforts to gather information and identify successful strategies to inform ESG funding allocations for this priority population. 2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities Table 2 – Agencies, groups, organizations who participated

Annual Action Plan 8 OMB Control No: 2506-0117 (exp. 09/30/2021) Agency/Group/Organization Catholic Charities Agency/Group/Organization Type Services - homeless What section of the Plan was addressed by Consultation? Housing Need Assessment Homeless Needs – Chronically homeless Homeless Needs – Families with children Homeless Needs – Veterans Homeless Needs – Unaccompanied youth Homelessness Strategy Briefly Describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? A member of the organization responded to the survey. As an organization that runs an emergency shelter, they have concerns on limited availability of affordable housing options, specifically for low-mod income households along with the risk of displacement of these vulnerable populations. Agency/Group/Organization East Somerville Main Streets Agency/Group/Organization Type Services – Employment Business and Civic Leaders Neighborhood Organization What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Market Analysis Economic Development Briefly Describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? A member of the organization responded to the survey and attended a public hearing. The organization receives CDBG funding for technical assistance program for small business owners. They have concerns about the state of the economy with changing policies on the national level disproportionately affecting microenterprises. The rising costs in the real estate market are also affecting the costs of commercial space that is threatening to displace small businesses. Agency/Group/Organization Somerville Homeless Coalition Agency/Group/Organization Type Housing Services - homeless What section of the Plan was addressed by Consultation? Housing Need Assessment Homeless Needs – Chronically homeless Homeless Needs – Families with children Homeless Needs – Veterans Homeless Needs – Unaccompanied Youth Homelessness Strategy Briefly Describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? A member of the organization responded to the survey. As an organization that receives ESG funding, they have concerns about rising levels of housing insecurity and limited funding to address the issue in both shelters and rental assistance to keep persons out of shelters. Food insecurity in the same population is also a concern.

Annual Action Plan 9 OMB Control No: 2506-0117 (exp. 09/30/2021) Agency/Group/Organization Office of Strategic Planning and Community Development Agency/Group/Organization Type Housing Services – Housing Service – Fair Housing Services – Narrowing the Digital Divide Agency – Management of Public Land or Water Resources Other government – Local Planning organization Grantee Department What section of the Plan was addressed by Consultation? Housing Need Assessment Homeless Needs – Chronically homeless Homeless Needs – Families with children Homeless Needs – Veterans Homeless Needs – Unaccompanied youth Homelessness Strategy Non-Homeless Special Needs Market Analysis Economic Development Lead-based Paint Strategy Anti-poverty Strategy Briefly Describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? A member of the team answered the survey, and members of the team reviewed the draft plan. A larger issue seen in the community is access to housing. Of particular concern is the rising construction costs in the city. Escalated construction costs affect both the housing market and the ability to implement new development projects. They discussed barriers to affordable housing and OSPCD’s strategies to address them. Agency/Group/Organization City of Somerville Health and Human Services Agency/Group/Organization Type Services – Children Services – Elderly Persons Services – Persons with Disabilities Services – homeless Services – Health Health Agency Other government - Local What section of the Plan was addressed by Consultation? Homeless Needs – Chronically homeless Homeless Needs – Families with children Homeless Needs – Veterans Homeless Needs – Unaccompanied youth Homelessness Strategy Non-Homeless Special Needs Anti-poverty Strategy Briefly Describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? A member of the team answered the survey. A general concern for housing insecurity and a programmatic concern for food insecurity and loss of funding for subsidized food services, and low-income persons in general.

Annual Action Plan 10 OMB Control No: 2506-0117 (exp. 09/30/2021) Agency/Group/Organization Community Action Agency of Somerville Agency/Group/Organization Type Housing Services – Housing Services – Children Services – Elderly Persons Services – Persons with Disabilities Services – homeless Services – Education Services - Employment What section of the Plan was addressed by Consultation? Housing Need Assessment Homelessness Strategy Non-Homeless Special Needs Anti-poverty Strategy Briefly Describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? A member of the organization answered the survey. They expressed concern over the lack of safe and affordable housing units available, and the abundance/increase of luxury housing in Somerville. Their strategic plan also notes concern for inadequate access to employment and inadequate availability and quality of affordable childcare. Agency/Group/Organization Union Square Main Streets Agency/Group/Organization Type Services – Employment Business and Civic Leaders Neighborhood Organization What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Economic Development Market Analysis Briefly Describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? A member of the organization answered the survey. Their concern was regarding the ongoing concern to secure funding to continue their technical assistance to small businesses. Agency/Group/Organization City of Somerville Department of Racial and Social Justice Agency/Group/Organization Type Services – Persons with Disabilities Services – Victims Other government - Local What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Economic Development Anti-poverty Strategy Briefly Describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? A member of the team answered the survey. Their concern was over access to housing for both low-mod persons and those with disabilities. Agency/Group/Organization The Welcome Project Agency/Group/Organization Type What section of the Plan was addressed by Consultation?

Annual Action Plan 11 OMB Control No: 2506-0117 (exp. 09/30/2021) Briefly Describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Members of the organization both answered the survey and attended a public hearing. They have a concern with the ability of members of the immigrant community being able to access services due to language barriers and time restrictions. Concern was also mentioned regarding housing affordability.

Annual Action Plan 12 OMB Control No: 2506-0117 (exp. 09/30/2021) Identify any Agency Types not consulted and provide rationale for not consulting The city contacts many organizations through various outreach methods and techniques including meetings, emails, phone calls and surveys to solicit input and participation in the planning process. OSPCD believes that all critical agency types were consulted during the participation and consultation process and did not intentionally fail to consult with any particular agency/interest group. Other local/regional/state/federal planning efforts considered when preparing the Plan Table 3 – Other local / regional / federal planning efforts Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care Balance of State Reduce and Mitigate Homelessness Narrative (optional) OSPCD developed an outreach effort to maximize input from a large cross section of stakeholders. This outreach included public meetings, published notices, opportunities to submit written input, and a general needs survey. Many housing agencies, social service agencies, community groups, and other organizations serving Somerville were consulted during the development of this Plan. In addition to the two public meetings held March 11th, 2025 and May 22nd, 2025 OSPCD staff gathered feedback from affordable housing providers, neighborhood organizations, homeless and social service providers, economic development organizations, immigrant advocates, youth leadership agencies, transportation consortiums and municipal departments. The final draft of the plan was also approved by the Mayor and City Council on _______.

Annual Action Plan 13 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-12 Participation – 91.105, 91.200(c) Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting The City opened the opportunity for citizen participation through two public meetings, one held during the drafting process, and one to discuss the completed draft. Those meetings were advertised two weeks in advance through the local paper and web posting, and began a 30 day comment period through which citizens could voice their opinions on the plan via email, mail, or in-person. Citizen Participation Outreach Table 4 – Citizen Participation Outreach Sort Order Mode of Outreach Target of Outreach Summary of response/attendance Summary of comments received Summary of comments not accepted and reasons 1 Public Meeting Non- targeted/ broad communit y 7 persons were in attendance Worries for small businesses and immigrant owned businesses, questions on job creation strategy, frustrations expressed on what is able to be funded, want for increased digital capacity projects There were no comments not accepted. 2 Internet Outreach City Staff/Servi ce Providers 13 responses from various city departments and partner organizations Housing affordability and access, increased need for wrap-around services There were no comments not accepted. 3 Public Meeting Non- targeted/ broad communit y Five persons were in attendance, only one who was not city staff Suggestion to increase funding to TBRA and first time homebuyer assistance programs There were no comments not accepted. 4 Newspap er Ad Non- targeted/ broad communit y No responses were received. n/a There were no comments not accepted. 5 Newspap er Ad Non- targeted/ broad communit y No responses were received n/a There were no comments not accepted.

Annual Action Plan 14 OMB Control No: 2506-0117 (exp. 09/30/2021) Expected Resources AP-15 Expected Resources – 91.220(c)(1,2) Introduction The 2025-2026 Annual Action Plan details the programs, allocated entitlement funds, and other resources that will carry out the objectives of Somerville’s larger community development and homelessness strategies. The flexible nature of the CDBG program enables the city to implement a multi-faceted strategy to address the housing, economic development, and urban environment challenges faced by low- and moderate-income residents in Somerville. The HOME program will continue to provide a range of direct housing assistance programs including rental assistance, homeownership assistance, and the creation of new units in conjunction with a local CHDO and financing partners. The ESG program will continue to provide funds for emergency shelters and transitional housing to help people reach independent living, striving to help homeless individuals and families, and groups at-risk of homelessness (victims of domestic violence, youth, people with mental illness, families with children, and veterans). Social service agencies receiving ESG funds will demonstrate a match. Somerville has also received an allocation of HOME-ARP funds, which will be used to fund supportive services for qualifying populations and operating and capacity support for non-profits that will carry out those supportive service activities. In addition to these federal funding resources, the City of Somerville uses local funding to support these goals. • The Community Preservation Act (CPA) program supports affordable housing, open space, and outdoor recreation. The source of funding is a surcharge on local property taxes with a proportional annual distribution from the state. In 2024 Somerville voters doubled the level of funding that will generate approximately $6,000,000 annually starting in FY26. Somerville commits approximately half of its CPA funds to affordable housing each year, with the balance going to public improvements. CPA has been an important source of funding for accessibility improvements, capital improvements to buildings that serve vulnerable populations, and park upgrades. CPA often serves as a match for projects which receive CDBG and other state grants. • The Somerville Affordable Housing Trust Fund (SAHTF) aggregates funding from numerous sources, primarily CPA, linkage fees, inclusionary zoning payments, and one-time appropriations to support a range of affordable housing projects including acquisition, construction, rehabilitation, and renter or homeowner assistance. The SAHTF revenue varies annually but can be expected to generate approximately $2,000,000 annually from sources other than CPA. • The Somerville Job Creation and Retention Trust (SJCRT) funds job training and workforce readiness programs geared especially towards the low to moderate income population in Somerville. The Trust focuses on preparing individuals for entering or improving their standing in the up-and-coming job industries emerging in the local economy. The SJRT receives funding through linkage fees on commercial developments which vary widely year to year but have averaged approximately $200,000 annually over the past decade.

Annual Action Plan 15 OMB Control No: 2506-0117 (exp. 09/30/2021) Anticipated Resources Table 5 - Expected Resources – Priority Table Program Source of Funds Uses of Funds Expected Amount Available Year 2 Expected Amount Available Remainder of ConPlan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ CDBG public- federal Acquisition Admin and Planning Economic Development Housing Public Improvements Public Services 2,477,825 75,000 2,489,737 7,500,000 Funding will be spent on a range of activities covering affordable housing, economic development, public infrastructure, and social service activities HOME public- federal Acquisition Homebuyer assistance Homeowner rehab Multifamily rental new construction Multifamily rental rehab New construction for ownership TBRA 517,544.40 50,000 1,579.749.79 $2,147,294.19 1,500,000 Funding will be spent on a range of activities targeting various affordable housing needs including rental assistance, home ownership assistance, and new housing development. ESG public- federal Conversion and rehab for transitional housing Financial Assistance Overnight shelter Rapid re-housing (rental assistance) Rental Assistance Services Transitional housing 218,817 0 223,123 600,000 Funding will be spent on various activities targeted towards homelessness prevention. Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied

Annual Action Plan 16 OMB Control No: 2506-0117 (exp. 09/30/2021) The City of Somerville seeks to leverage or supplement many of the activities it undertakes with some type of match or leveraging component. The following is a brief description of the matching or leveraging strategy for different program areas. Housing: The City has had a successful track record of using HOME funds as matching funds in larger scale development projects. These projects typically utilize multiple funding sources including low- income tax credit financing, State Affordable Housing Trust funds, and other subsidy sources. The City’s primary source of match is the value of real property permanently contributed to HOME-eligible units through the Inclusionary Zoning Ordinance. The match value is the difference between the appraised value and the sale value of 80% AMI inclusionary homeownership units. Additional funding sources that are used for affordable housing projects are the local Affordable Housing Trust, Community Preservation Act, and fee/permit wavering. Local Affordable Housing Trust and Community Preservation Act funding is typically provided to develop HOME-assisted or HOME-eligible housing units at below market interest rates which provide further match support. Economic Development: The City encourages any participant of any of the City's economic development programs to demonstrate leverage or provide matching funds during the application process. The business retention and expansion programs require that any business seeking CDBG financing demonstrate the ability to obtain a portion of the financing needed from private banks or other lending sources. The City, in turn, will provide gap financing in exchange for compliance with job creation requirements. The City also requires matching funds from any business participating in the Small Business technical assistance program. The City's Jobs Trust Fund does ask nonprofits that apply for funding about matching funds, and many accepted proposals do include matching funds, but for Jobs Trust funding is not a requirement. Streetscape and Infrastructure: Most recently the city has been able to leverage CDBG funds with funds obtained from the State's RideShare surcharge fee to deliver pedestrian safety improvements in eligible neighborhoods. The city has also received state funded Safe Streets grants for certain traffic calming and pedestrian safety improvements. The City will continue to use this model as suitable projects and opportunities present themselves. Parks and Open Space: The City has successfully leveraged CDBG funding with State PARC grant funds and Community Preservation Act funds to deliver quality recreational and open space projects in low- income neighborhoods. The City will continue to seek opportunities using these funding models and any others that the Parks team deems relevant. The City just updated its Open Space and Recreation Plan which will guide investment in parks and open space over the next seven years. If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The City is currently undertaking a disposition plan to evaluate community needs with respect to the potential disposition or redevelopment of City-owned properties, including 24 Cross Street East and 45 College Ave. Previously, the City has successfully evaluated City properties, to identify the potential for upgrades and investment to meet community needs for program space to serve vulnerable populations. Additional ancillary City buildings that have been under evaluation to upgrade and repurpose include the former Fire Station (SCAT Building) at 92 Union Square and the former Cummings School (42

Annual Action Plan 17 OMB Control No: 2506-0117 (exp. 09/30/2021) Prescott Street) which has been adapted to serve as a seasonal overnight warming center for persons who are unhoused. As Somerville is an extremely dense community with very little open space, the City has been focusing efforts to optimize City-owned land to provide infrastructure, open space, and recreational improvements to provide a healthy living environment for low-income residents. While most of the city’s schoolyards have undergone major renovations over the past decade, a design process is underway to rehabilitate the playground at the John F. Kennedy School to provide an accessible inclusive recreation space for people with disabilities, serving the school population and neighborhood residents. The City is also in the process of completing the rehabilitation and expansion of Junction Park, converting a former City-owned parking lot to green space along the community path. In East Somerville, a small land acquisition enabled the City to double the size of the Glen Park Community Garden and to add accessible community garden plots which provide a critical resource for both recreation and food access. CPA and CDBG funds have been leveraged to make these and other improvements to City-owned sites. The 2025-2032 Open Space and Recreation Plan identifies opportunities and priorities for further investments in open space and infrastructure to serve the needs of low-income residents. Discussion The City of Somerville has been highly successful in maximizing the full programmatic and financial efficacy of its entitlement funds. The City has developed innovative programs to leverage both financial and non-financial resources to improve the living standards of the low to moderate income community in terms of affordable housing, economic opportunities, and improved living environments.

Annual Action Plan 18 OMB Control No: 2506-0117 (exp. 09/30/2021) Annual Goals and Objectives AP-20 Annual Goals and Objectives Goals Summary Information Table 6 – Goals Summary

Annual Action Plan 19 OMB Control No: 2506-0117 (exp. 09/30/2021) Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding 1 Create and Preserve Affordable Housing 2025 2026 Affordable Housing Public Housing City Wide Bridging the Equity Gap CDBG: $1,491,151.25 HOME: $2,147,294.19 Rental units constructed: 10 Household Housing Units Rental units rehabilitated: 15 Household Housing Units Homeowner housing rehabilitated: 6 Household Housing Units Direct financial assistance to homebuyers: 5 Households Assisted TBRA/Rapid Re-housing: 5 Households Assisted 2 Neighborhood Stabilization and Revitalization 2025 2026 Non- Homeless Special Needs Non-Housing Community Development City Wide East Somerville Union Square Bridging the Equity Gap CDBG: $150,000 Businesses assisted: 20 Businesses Assisted 3 Infrastructure and Urban Environment Improvements 2025 2026 Non-Housing Community Development City Wide Modernizing and Creating Sustainability CDBG: $345,000 Public facility or infrastructure activities other than low/moderate income housing benefit: 10,000 Persons Assisted 4 Improve Facilities that Serve Community Needs 2025 2026 Non- Homeless Special Needs Non-Housing Community Development City Wide Modernizing and Creating Sustainability CDBG: $120,000 Public facility or infrastructure activities for low/moderate income housing benefit: 5,000 households assisted Buildings Demolished: 1 Building

Annual Action Plan 20 OMB Control No: 2506-0117 (exp. 09/30/2021) 5 Supporting Vulnerable Populations 2025 2026 Non- Homeless Special Needs Non-Housing Community Development City Wide Serving the needs of at- risk populations CDBG: $371,673.75 Public services activities other than low/moderate income housing benefit: 500 Persons Assisted Tenant-based rental assistance/Rapid Rehousing: 2 Households Assisted Overnight/Emergency Shelter/Transitional Housing Beds added: 4 Beds Homelessness Prevention: 75 Persons Assisted 6 Mitigating and Ending Homelessness 2025 2026 Homeless City Wide Serving the needs of at- risk populations ESG: $218,817 Homeless Person Overnight Shelter: 200 Persons Assisted Homelessness Prevention: 100 Persons Assisted

Annual Action Plan 21 OMB Control No: 2506-0117 (exp. 09/30/2021) Goal Descriptions Goal Name Goal Description Create and Preserve Affordable Housing The activities undertaken with this goal will directly address the lack of suitable and decent affordable housing through a combination of programs and focused priorities. Neighborhood Stabilization and Revitalization This goal is aimed at addressing the economic opportunity gaps faced by the low- to moderate-income community. The activities and programs undertaken in this area will aim to raise the standard of living for the most economically vulnerable members of the community by creating quality, attainable job opportunities. The City will also focus on aiding vulnerable small business owners that may be disproportionately at risk of impacts caused by the city’s rapid expansion cycle. Infrastructure and Urban Environment Improvements This goal is aimed at making physical and programmatic improvements to ensure a suitable and healthy environment for low- to moderate-income residents. Improve Facilities that Serve Community Needs This goal aims at addressing the city’s broad need for new and updated public facilities by undertaking or supporting these activities. Supporting Vulnerable Populations The needs of the low- to moderate-income community vary across a wide range of social service categories. This goal will focus on expanding the network of supportive services that will meet the needs of the city’s socioeconomically vulnerable population as identified in this plan. Mitigating and Ending Homelessness This goal is aimed at addressing the immediate needs of the city’s population of the unhoused and those at risk of becoming homeless. The City will work closely with the Balance of State Continuum of Care, homelessness providers, and housing authority to identify those individuals and families that are in urgent need of these services, and to fill in service gaps wherever possible.

Annual Action Plan 22 OMB Control No: 2506-0117 (exp. 09/30/2021) Projects AP-35 Projects – 91.220(d) Introduction Below please find the anticipated list of Projects for the 2025-2026 Action Plan. The City has allocated funds in the HOME Investment Partnership grant, Emergency Solutions grant, and Public Services programs in accordance with the federally mandated expenditure caps and guidelines for those programs. The City has also applied for a Section 108 loan for a large affordable housing and infrastructure project. Projects Table 7 - Project Information # Project Name 1 Housing Acquisition and Rehab 2 Section 108 Repayment 3 Small Business Resiliency 4 Parks and Recreation Open Space Improvements 5 Tree Planting and Urban Forestry 6 Neighborhood Infrastructure Improvements 7 Slum & Blight/Community Spaces 8 Public Services 2024 9 2024 Admin 10 HOME Housing Development Special Projects 11 Tenant Based Rental Assistance 12 First-Time Homebuyer Assistance 13 CHDO Operating 14 CHDO Set Aside 15 HOME Admin 16 ESG Homelessness Shelter, Outreach, and Prevention Describe the reasons for allocation priorities and any obstacles to addressing underserved needs The City of Somerville and Office of Strategic Planning and Community Development have allocated funds in a manner that attempts to maximize the leverage capacity of this program funding. The specific project allocations shown above were based on the analyses informing priority needs, the availability of upcoming projects, and the ability to leverage additional funding sources with these funds. In adherence to the various categorical limits and restrictions of the various programs, public service funds will not exceed 15% of the CDBG entitlement. These services will be designed to meet the needs of low-income residents by improving access to supportive services for adults, children, seniors and disabled residents. HOME Investment Partnership funds will be allocated according to categorically eligible programs and include the required CHDO set‐aside allocations. The Emergency Solution Grant funds are allocated to non‐profit agencies providing homeless services and homelessness prevention activities. Together with

Annual Action Plan 23 OMB Control No: 2506-0117 (exp. 09/30/2021) the Continuum of Care, the City has identified homeless needs and formulated priorities and programs to address them.

Annual Action Plan 24 OMB Control No: 2506-0117 (exp. 09/30/2021) = AP-38 Project Summary Project Summary Information

Annual Action Plan 25 OMB Control No: 2506-0117 (exp. 09/30/2021) Project Name Housing Acquisition and Rehab Program Target Area City Wide Goals Supported Create and Preserve Affordable Housing Needs Addressed Bridging the Equity Gap Funding CDBG: $500,000 Description This program will continue to support various housing development projects. CDBG funds will primarily be used to undertake rehabilitation work but may also fund housing acquisition activities on a limited basis. The City will also continue to operate its existing Home Rehab program, now called the Home Improvement Program, to income eligible residents citywide. Target Date 6/30/2026 Estimate the number and type of families that will benefit from the proposed activities It is estimated that anywhere between 12-15 households will be assisted through this program in FY26. The program will benefit a range of individuals and family types based on the number and type of units that are rehabilitated and/or acquired. Location Description The program is based on homeowner and/or tenant eligibility so is therefore eligible citywide. The City will continue to operate its traditional Housing Rehab program and provide support to other housing development projects. Planned Activities The City will fund housing rehab projects for units occupied by income eligible owners or tenants. The program has been re-designed to emphasize health and sustainability components such as de-leading and energy efficiency Project Name Section 108 Project Target Area Alewife Brook/Clarendon Hill Goals Supported Create and Preserve Affordable Housing Needs Addressed Bridging the Equity Gap Funding CDBG: $495,586.25 Description Repayment of Section 108 Loan for Affordable Housing Development Target Date 6/30/2026 Estimate the number and type of families that will benefit from the proposed activities The proposed new development will be a multi-phase redevelopment project with 216 replacement state public housing units and 80 new affordable housing units. 130 state public housing units and 38 new units have been constructed as part of Phase I. The remaining public housing replacement units, affordable units, and approximately an additional 300 market rate units will be constructed in future phases of the project. Location Description Affordable housing development projects are targeted for the Clarendon Hill/Alewife neighborhood. Planned Activities The proposed new development will be a multi-phase redevelopment project with 216 replacement state public housing units and 80 new affordable housing units. 130 state public housing units and 38 new units have been constructed as part of Phase I. The remaining public housing replacement units, affordable units, and approximately an additional 300 market rate units will be constructed in future phases of the project. Project Name Small Business Resiliency Program Target Area Citywide East Somerville Union Square Goals Supported Neighborhood Stabilization and Revitalization Needs Addressed Bridging the Equity Gap Funding CDBG: $150,000 Description This program will combine technical assistance and direct financial assistance to support micro-enterprises and local small businesses in income eligible areas.

Annual Action Plan 26 OMB Control No: 2506-0117 (exp. 09/30/2021) Target Date 6/30/26 Estimate the number and type of families that will benefit from the proposed activities This project is designed to deliver technical assistance to the city's most economically vulnerable small business or micro-enterprise owners. The City will target low to moderate income business owners or small businesses located in targeted, underserved neighborhoods that provide essential goods and services to the community. Many of the business owners targeted with this effort will be low-income immigrant business owners, many of whom are also first-time business owners. The City will aim to assist 20 eligible businesses. Location Description The City will target its outreach efforts to small businesses located in the previously identified target neighborhoods of Union Square and East Somerville. These neighborhoods have the highest concentration of low income, family operated small businesses in the city and are also served by local Main Streets organizations that work closely with these businesses on technical assistance issues and coordination with the City. Some assistance will also be offered to small businesses city-wide. Planned Activities OSPCD staff will partner with the local Main Street Organizations and other specialized T/A providers to support local small businesses with construction impact mitigation, marketing efforts, OSHA and ServSafe training, financial literacy, and other business management needs. Project Name Parks and Recreation Open Space Improvements Target Area LMI Areas Goals Supported Infrastructure and Urban Environment Improvements Needs Addressed Modernizing and Creating Sustainability Funding CDBG: $245,000 Description This project will create and revitalize quality recreational open spaces in the city’s most densely populated and underserved neighborhoods. Target Date 6/30/2026 Estimate the number and type of families that will benefit from the proposed activities The City will target its Parks and Open Space activities in the previously identified target areas. The activities identified will be aimed at benefitting areas that serve primarily low to moderate income residents. As a result of the densely populated nature of Somerville's neighborhoods, OSPCD is confident that most activities will serve at least 10,000 low to moderate income persons. Location Description The City will focus its parks and open space activities on the low to moderate income neighborhoods that demonstrate the greatest need and lack of suitable green space and recreational amenities. Planned Activities Parks and recreational open space infrastructure projects including new park construction and other recreational space amenities. Project Name Urban Forestry/Street Tree Program Target Area LMI Areas Goals Supported Infrastructure and Urban Environment Improvements Needs Addressed Modernizing and Creating Sustainability Funding CDBG: $75,000 Description This program will continue to complement the City’s tree planting program in income eligible areas. Target Date 6/30/2026 Estimate the number and type of families that will benefit from the proposed activities The City will target its Green Infrastructure and Urban Forestry activities in predominantly low to moderate income eligible census tracts across the city. The activities identified will be aimed at benefiting areas that serve primarily low to moderate income residents. As a result of the densely populated nature of Somerville's neighborhoods, OSPCD Is confident that most activities will serve at least 10,000 low to moderate income persons. Location Description The City will target tree planting efforts across low-income eligible census tracts across the city.

Annual Action Plan 27 OMB Control No: 2506-0117 (exp. 09/30/2021) Planned Activities The City will plant trees in eligible low to moderate income census tracts. Project Name Neighborhood Infrastructure and Improvement Program Target Area LMI Areas Goals Supported Infrastructure and Urban Environment Improvements Needs Addressed Modernizing and Creating Sustainability Funding CDBG: $25,000 Description This project will focus on infrastructure, streetscape, and multi-modal safety improvements including traffic calming, ADA improvements, and utility improvements in underserved and income eligible areas. Target Date 6/30/2026 Estimate the number and type of families that will benefit from the proposed activities The City will target its infrastructure investments in the previously identified target areas. The activities identified will be aimed at benefiting areas that serve primarily low to moderate income residents. As a result of the densely populated nature of Somerville's neighborhoods, OSPCD is confident that most activities will serve at least 10,000 low to moderate income persons. Location Description The City will focus its streetscape and infrastructure activities on the low to moderate income neighborhoods that are most impacted by the recent development of new transit stations. These neighborhoods include Union Square, Central Broadway, East Somerville, and Gilman Square. Planned Activities The City will undertake streetscape and infrastructure investments that will improve pedestrian and multi-modal safety and provide equitable access to transit. The City will also seek opportunities to invest in utility improvements, when and if needed. Project Name Slums and Blight/Community Spaces Target Area City Wide, LMI Areas Goals Supported Improve Facilities that Serve Community Needs Needs Addressed Modernizing and Creating Sustainability Funding CDBG: $120,000 Description Identify and repurpose dilapidated public assets for the purpose of converting to accessible public facilities and community spaces. Target Date 6/30/2026 Estimate the number and type of families that will benefit from the proposed activities 5,000 low- and moderate-income residents will benefit from improvement of facilities that provide community services, as well as the clearance of slums and blight in predominantly low- and moderate-income neighborhoods. Location Description The City will target the removal of blighted structures citywide that need demolition or clearance for health and public safety purposes in low- and moderate-income neighborhoods and invest in the improvement of spaces that provide community services to low- and moderate-income residents city-wide. Planned Activities The City will monitor and identify any public structures in eligible neighborhoods that need demolition and clearance for health and public safety purposes. Project Name Public Services Target Area City Wide Goals Supported Supporting Vulnerable Populations Needs Addressed Serving the Needs of At-Risk Populations Funding CDBG: $371,673.75 Description This program will fund local nonprofit organizations and agencies that provide vital supportive services to the most economically vulnerable members of the community to include low-income individuals and families, seniors and persons with disabilities. Enrichment, employment, and affordable childcare services will be designed for youth. 15 percent of the available CDBG funds will be earmarked for various public service activities. Target Date 6/30/2026

Annual Action Plan 28 OMB Control No: 2506-0117 (exp. 09/30/2021) Estimate the number and type of families that will benefit from the proposed activities Expect to serve over 10,000 low-income residents with Public Service funding. Services will benefit low-income individuals, low-income families and their children, seniors and disabled adults. Location Description The social services and programs funded under the public services program are available to any eligible low to moderate income individual or household citywide. Planned Activities The City of Somerville issued a request for proposals to local social service and non-profit organizations and agencies that can provide a wide range of supportive services to benefit the city's most economically vulnerable populations with an added focus on those programs that serve the youth, elderly, and those with disabilities, as well as nutrition and workforce readiness. Project Name CDBG Administration Target Area City Wide Goals Supported Create and Preserve Affordable Housing Needs Addressed Building Communities of Opportunity Funding CDBG: $495,565 Description Program administration and planning expenses. All priority needs will be covered under this project but to keep the structure of the plan this is sorted under Building Communities of Opportunity and Create and Preserve Affordable Housing for this project as it is the goal with the largest amount of funding in the plan. Target Date 6/30/2026 Estimate the number and type of families that will benefit from the proposed activities N/A Location Description N/A Planned Activities This project will cover the administrative costs of operating and administering the entitlement program Project Name HOME Housing Development Special Projects Target Area City Wide, Alewife Brook/Clarendon, Union Square Goals Supported Create and Preserve Affordable Housing Needs Addressed Bridging the Equity Gap Funding HOME: $1,912,030.87 Description Housing Special Project funds are available to for-profit and non-profit developers of affordable housing for the acquisition, demolition, pre-development, and construction costs of both rental and home-ownership housing projects located within Somerville. Target Date 6/30/2026

Annual Action Plan 29 OMB Control No: 2506-0117 (exp. 09/30/2021) Estimate the number and type of families that will benefit from the proposed activities Ten HOME units for seniors supported by project-based vouchers are expected to be completed within the early in the program year as part of the Waterworks II project being constructed by the Somerville Housing Authority. The property will include a total of 21 new public housing units for seniors all supported by project-based vouchers. Two HOME units are expected to be completed early in the program year, following completion of masonry work at a property on Somerville Avenue. This project has a total of 9 units affordable to households at or below 100% AMI with both HOME units being restricted at 50% AMI. The City has also conditionally committed funding to a Just-A-Start project at 24 Webster Avenue. This project will be comprised of approximately 42 units, all affordable to households earning at or below 60% AMI. Eleven of those units are expected to be HOME units, with 8 restricted at 60% AMI and 3 restricted at 50% AMI. Funds have also been committed for the rehabilitation of eight single-room occupancy units on Merriam Street which support households in need to services to maintain their housing. All eight units will be supported with project-based vouchers, restricted through the HOME Program, and be affordable to extremely low-income households. Although 24 Webster Avenue is not expected to be completed within Program Year 2025, we expect these units to be completed during the 2024-2028 ConPlan period. The City will continue to look for additional development projects to support city-wide that will benefit a wide array of families. Location Description HOME Special projects take place city-wide. The Waterworks II development which is currently under construction is in the Alewife Brook/Clarendon area and the 24 Webster Avenue projects is in the Union Square area. The City will continue to look for other projects to fund throughout the city. Planned Activities The City will seek opportunities to invest HOME funding in projects that create new affordable housing units at various income eligible levels. Project Name Tenant Based Rental Assistance Target Area City Wide Goals Supported Create and Preserve Affordable Housing Needs Addressed Bridging the Equity Gap Funding HOME: $50,000 Description Tenant-Based Rental Assistance funds are available to subsidize and stabilize income- qualified tenants of rental housing units located within Somerville. Funds are targeted to households at risk of homelessness and groups identified as having special needs. Target Date 6/30/2026 Estimate the number and type of families that will benefit from the proposed activities We expect to assist 5 households with Tenant based rental assistance through existing TBRA contracts, funded with prior year funds, and by awarding additional funding Additionally, the City has approximately $300K in HOME-ARP funding for supportive services that has not been committed to any activities yet. If rental assistance is a need in the community, the City may fund a rental assistance program with the uncommitted TBRA funds. Location Description The Tenant Based Rental Assistance program is available city wide to any eligible income qualified household. Planned Activities Rental assistance for qualifying individuals and households. Project Name First-Time Homebuyer Assistance Target Area City Wide Goals Supported Create and Preserve Affordable Housing Needs Addressed Bridging the Equity Gap Funding HOME: $30,000 Description The homebuyer assistance program provides closing cost and down payment assistance to eligible low to moderate income persons. Target Date 6/30/2026

Annual Action Plan 30 OMB Control No: 2506-0117 (exp. 09/30/2021) Estimate the number and type of families that will benefit from the proposed activities Provide direct financial assistance to approximately 5 income eligible first-time homebuyer households. Location Description The program is available city wide to any income eligible applicant. Planned Activities Fund and operate a first-time homebuyer closing cost assistance program for income eligible households. Project Name CHDO Operating Target Area City Wide Goals Supported Create and Preserve Affordable Housing Needs Addressed Bridging the Equity Gap Funding HOME: $25,877.22 Description As an eligible component of the HOME program, CHDO operating funds of 5% are set aside from the City's annual HOME program entitlement grant to assist the City's current Community Housing Development Organization (CHDO), the Somerville Community Corporation with its costs to operate its non-profit housing development department. Target Date 6/30/2026 Estimate the number and type of families that will benefit from the proposed activities Currently, Somerville Community Corporation is the only CHDO certified in the city. Somerville Community Corporation offers first-time homebuyer counseling, financial and digital literacy, and career coaching services to hundreds of low- and moderate-income residents in Somerville in addition to creating affordable housing. Operating support allows them to continue running these various programs by supporting the cost of staff salaries and other general operating expenses. Location Description Somerville Community Corporation serves all Somerville Residents, but most operating support with occur at their offices on Somerville Avenue. Planned Activities Support operating expense needs of certified community housing development organizations within Somerville. Project Name CHDO Set Aside Target Area City Wide Goals Supported Create and Preserve Affordable Housing Needs Addressed Bridging the Equity Gap Funding HOME: $77,631.66 Description As an eligible component of the HOME Program a 15% reserve allocation is set-aside from the City's annual HOME entitlements to be put towards eligible CHDO sponsored affordable housing development projects. Currently, the city's only certified CHDO, Somerville Community Corp, is the annual recipient of the City's CHDO reserve allocation. Target Date 6/30/2026 Estimate the number and type of families that will benefit from the proposed activities Somerville Avenue is currently the only project funded with CHDO Set-Aside funding. This project is the rehabilitation of 9 units that have been offline due to a fire in 2021. All units are affordable for households earning at or below 100% AMI, and two of these units will be HOME units affordable to households earning at or below 50% AMI. This project is expected to be completed early in the program year. The City will continue to search for the next CHDO project. Location Description This activity is not location specific, but projects will be located within the City of Somerville Planned Activities Support our community housing development organization with the creation of affordable housing opportunities. Project Name HOME Admin Target Area City Wide Goals Supported Create and Preserve Affordable Housing Needs Addressed Bridging the Equity Gap

Annual Action Plan 31 OMB Control No: 2506-0117 (exp. 09/30/2021) Funding HOME: $51,754.44 Description Program, planning, and administrative expenses including staffing costs. Target Date 6/30/2026 Estimate the number and type of families that will benefit from the proposed activities Program administration expenses assist staff with completing all the administration work necessary to fund HOME activities that benefit low- and moderate-income persons. Please refer to the individual projects to review the number and types of families we expect to have benefitting from our proposed activities during Program Year 2025. Location Description Most administrative work takes place at Somerville City Hall or City Hall Annex, but staff may perform site visits city-wide. Planned Activities Salaries and administrative costs related to administration of the HOME grant. Project Name ESG Homelessness Shelter, Outreach, and Prevention Target Area City Wide Goals Supported Mitigating and Ending Homelessness Needs Addressed Serving the Needs of At-Risk Populations Funding ESG: $218,817 Description This project will fund the various programs and activities eligible through the Emergency Solutions Grant program. The four eligible areas for ESG funding are the shelter operations and essential services, rapid rehousing, homelessness prevention, and HMIS reporting. Target Date 6/30/2026 Estimate the number and type of families that will benefit from the proposed activities Approximately 300 individuals will be assisted through ESG funding. Location Description The ESG program is administered city wide Planned Activities Shelter operations, Street Outreach, Rapid Rehousing, Homeless Prevention, and HMIS

Annual Action Plan 32 OMB Control No: 2506-0117 (exp. 09/30/2021) 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 All the included strategy areas in this plan are areas of the city with a high low- and moderate-income population, as well as notable neighborhood identities. The program funds will be deployed citywide across the various eligible census tracts and on programs where eligibility is determined on an individual applicant basis. Geographic Distribution Table 8 - Geographic Distribution Target Area Percentage of Funds City Wide 68 LMI Areas 13 Alewife Brook/Clarendon 15 East Somerville 2 Union Square 2 Innerbelt/Brick Bottom 0 Winter Hill/Mystic 0 Gilman Square 0 Rationale for the priorities for allocating investments geographically The City has determined that all the target areas demonstrate both the greatest areas of need and have the most feasible opportunities to deploy entitlement funds. Low- and moderate-income residents throughout the city benefit from services and facilities that are dedicated to supporting special needs populations. LMI areas encompass neighborhoods that contain higher concentrations of low- and moderate-income residents (51% or higher, per census data) anywhere in Somerville. The specific neighborhoods listed have concentrated LMI populations as well as sites that have potential for redevelopment to meet the needs identified in the consolidated plan. Discussion The City believes that by concentrating investments in these target locations, it will be able to achieve its intended results in the most efficient and timely manner possible. Additionally, the City hopes to employ its entitlement funds to both enhance and mitigate some of the opportunities and risks presented by the planned revitalization efforts in these target areas.

Annual Action Plan 33 OMB Control No: 2506-0117 (exp. 09/30/2021) Affordable Housing AP-55 Affordable Housing – 91.220(g) Introduction Last year, the city completed a significant redesign of its Housing Rehabilitation Program and has since re-launched and re-branded it with several key enhancements. The updated program now formally incorporates activities previously carried out under the Lead Hazard Reduction Grant, with a renewed focus on addressing urgent repair needs, improving energy efficiency, and maximizing the use of financial resources from partner agencies. The program remains available to income-eligible residents, with priority given to projects that present immediate health and safety risks to occupants and the surrounding community, as well as to units within the City’s portfolio of affordable housing. The HOME program will continue to offer a set of programs that include Tenant Based Rental Assistance, First Time Homebuyer Closing Cost Assistance, CHDO Set-aside, and Operational Funding. Program staff will continue to seek opportunities to utilize HOME entitlement funds on new development projects. Projects nearing completion or expected to be complete by the end of Program Year 2025 include 657 Somerville Avenue, Waterworks Phase II, and 57 Merriam Street. The City has also committed funding to develop a 42-unit property in the Union Square target area. Table 5 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households to be Supported Homeless 5 Non-Homeless 30 Special-Needs 8 Total 43 Table 6 - One Year Goals for Affordable Housing by Support Type One Year Goals for the Number of Households Supported Through Rental Assistance 5 The Production of New Units 10 Rehab of Existing Units 23 Acquisition of Existing Units 5 Total 43 Discussion The City will use a mix of CDBG and HOME funds to continue to deliver on its core goal of increased housing affordability. The key areas of focus will be the preservation of existing units through acquisition of expiring use properties, rehabilitation, and the development of new affordable housing units. Both CDBG and HOME funding are used to preserve and maintain existing units. HOME funding is also used to develop new affordable housing, support first-time homebuyers with closing cost or downpayment assistance, and assist homeless or at-risk of homelessness households with rental assistance.

Annual Action Plan 34 OMB Control No: 2506-0117 (exp. 09/30/2021) The City is currently in the process of entering into a Section 108 loan to close significant funding gaps in the future phases of the Clarendon Hill redevelopment project which has faced numerous unforeseen financing challenges due to the current economic climate of rising construction and financing costs. The numeric goals above represent only those households assisted in projects that are anticipated to be completed in Program Year 2025. The City anticipates supporting additional households in underway projects. Those goals will be reported in future Action Plans.

Annual Action Plan 35 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-60 Public Housing – 91.220(h) Introduction The City of Somerville will continue to rely on the Somerville Housing Authority to be the major provider of deeply subsidized housing through public housing and vouchers. SHA waiting lists are filled with households who cannot afford rental units on the private market. To that end, a high priority of the City of Somerville and the Housing Authority is to increase the number of deeply subsidized affordable units, as well as to make capital improvements to its properties to ensure a safe and livable environment for its residents. SHA has nearly completed Phase I of the Clarendon Hill redevelopment which replaces 130 state-funded public housing units and creates 38 new affordable housing units. Phase I was supported with $8.25M in local City resources. Their development partner, Preservation of Affordable Housing (POAH), is preparing to market the new affordable housing units while SHA prepares to relocate public housing residents to the newly reconstructed units and fill the formerly vacant units from their waitlist. The City is preparing to support Phase II with Section 108 financing. Phase II will replace 71 state public housing units and create 21 units of new affordable housing. This phase is expected to begin construction in the Fall, following financing approvals. The third phase of the Clarendon Hill development will replace the final 15 public housing units and create 21 new affordable units. In total, this redevelopment replaces all 216 state public housing units and creates 78 new affordable units as well as nearly 300 market-rate units. In addition, the City has supported the creation of 21 senior public housing units at the Mystic Waterworks site which are expected to be complete in Summer 2025. Both development sites are located within the Alewife Brook/Clarendon target area. Actions planned during the next year to address the needs to public housing The Somerville Housing Authority’s 5 Year Plan, released in 2023, identifies the strategies they will employ to address Housing Needs. SHA will continue to work with partner agencies to stabilize tenancies, including participation in emergency rental assistance programs, to make capital improvements and renovations, and to advance development projects that will create new affordable rental units. SHA and the City of Somerville will continue to support the two housing development projects that are currently under construction. • The ongoing Clarendon Hill redevelopment project will replace 216 state-aided public housing units and add 80 new income-restricted rental units in a mixed income development with additional market-rate units. The city is working closely with partners including the SHA, POAH, and Somerville Community Corporation to complete this project, including the submission of a Section 108 application. • The Mystic Waterworks II building will add 21 affordable housing units for elderly households earning up to 80% of AMI. This building is located on land the Housing Authority owns adjacent to Mystic Waterworks. This project is expected to be complete in Summer 2025 with lease-up shortly thereafter. Both projects advance the SHA’s mission of creating and expanding decent, safe, and sanitary affordable housing opportunities for low- and moderate-income families, elderly, and people with disabilities. The

Annual Action Plan 36 OMB Control No: 2506-0117 (exp. 09/30/2021) projects also address the need for the creation of additional affordable housing due to the high percentage of the city’s low-moderate income households that are housing cost burdened. The SHA will further address the housing needs of low-income individuals and families through additional activities as well. Actions to encourage public housing residents to become more involved in management and participate in homeownership As described in previous sections, the City and the Somerville Housing Authority will continue to undertake several actions to encourage public housing residents to become more involved in management and participate in homeownership. These actions include: • Active participation in the tenant’s association of each property • Actively marketing and supporting residents to participate in the city's inclusionary housing opportunities and the state’s Section 8/Housing Choice Voucher Program Family Self Sufficiency Program • The City and Housing Authority will continue to partner with Somerville Community Corporation to offer first time homebuyer and financial literacy classes. • First Time Home Buyer Assistance will continue to be offered to income-eligible households. If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance Not applicable. Discussion The City will continue to work closely with the SHA to help address any future needs that may arise. The SHA will continue to have a seat on the Somerville Affordable Housing Trust Fund and the Somerville Fair Housing Commission, as well as the Community Preservation Committee which determines how to use CPA funds. The City will also continue to work collaboratively with the SHA on future development projects including the completion of the Clarendon Hill redevelopment.

Annual Action Plan 37 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction Emergency Solutions Grant (ESG) funds will be one source used by the city to address the needs of homeless persons and persons with special needs by implementing strategies to prevent homelessness, enable individuals living on the streets to move to housing, and provide services to those living in emergency shelter with the goal of successful permanent housing placements. Through an RFP, nonprofit agencies will be funded with ESG dollars to provide services in 4 primary categories: Emergency Shelter and Essential Services, Homeless Prevention Activities, Rapid Rehousing and Stabilization, and HMIS data collection and reporting. In addition to ESG funds, CDBG funds will be used to provide support services to the homeless and other special populations such as veterans, chronically homeless, and people with special needs. HOME funds will also be used for Tenant Based Rental Assistance and new housing development units for formerly homeless households where possible. Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including: Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The City engages several groups in outreach and assessment of the needs of the homeless population (including unsheltered persons) to determine which community resources are most appropriate in response. Working with the Police and other partners, the City helps the unsheltered homeless by canvassing; engaging clients; accessing or providing emergency and crisis intervention services; undertaking assessments; providing crisis intervention counseling; providing access to any available entitlement, benefits, housing or other resources; direct provision of and/or referral and linkages to health and/or mental health services; and transportation of clients. The City’s outreach team works to build trusting relationships with homeless persons living on the streets and in encampments, performs assessments for homeless persons in the field, and links them to shelter and supportive services that meet their needs. As the Outreach team develops relationships with our street homeless population, this vulnerable population will become more willing to engage with services. OSPCD collaborates with service agencies and others in the public sector to analyze existing needs and to identify and address funding gaps. The Homeless Point In Time (PIT) Count, organized by the CoC annually, assesses the characteristics of the homeless population in and around Somerville. This data is used by the CoC and its stakeholders to track the changing needs of the homeless. The most recent PIT count was undertaken in January 2025. OSPCD and the CoC use this information to develop and support the coordinated assessment system to match a homeless person’s need for housing with available housing vacancies among providers, to improve access to services and to ensure appropriate interventions. There were 12 persons counted as unsheltered, 82 sheltered, and 53 in transitional housing in the January 2025 count. Addressing the emergency shelter and transitional housing needs of homeless persons

Annual Action Plan 38 OMB Control No: 2506-0117 (exp. 09/30/2021) The City’s ESG funding will be paired with other public and private funding sources secured by the city’s subrecipients (providers and operators of emergency shelters, transitional housing, and support service programs in the area) to fund their shelter and transitional programs. HOME funds are also used to support transitional housing needs. The CoC has a coordinated access system to assess the status of housing and support services. Several nonprofit organizations provide other resources to the homeless and those at risk of homelessness in Somerville. Shelter and transitional programs address the needs of specific populations such as chronically homeless persons, families, persons with severe substance abuse histories or those suffering from dual or multiple co-occurring disorders. The City will continue to coordinate with the BoS CoC and social service providers working with homeless persons to provide supportive service interventions to assist homeless families and families at risk of homelessness across the city. Shelter programs receive ESG funding for operations and services such as: programs providing support for recovering substance abusers, mental health services, services for survivors of domestic violence and their children, transitional housing for youth, interim housing for street homeless who are awaiting permanent supportive housing placement, and employment/volunteer services. 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 Rapid Re-Housing activities that offer short- or medium-term rental assistance, housing relocation, and housing stabilization services are a part of Somerville’s strategy to help transition homeless persons into permanent and independent living. The City also funds case management services and comprehensive housing placements to transition families and individuals into stable housing as quickly as possible. ESG awardees enter contracts that as often as possible place clients into stable housing situations that result in individuals not returning to shelters and in placement of long-term stays. The City will continue to refine strategies to increase placements through efforts to create new rental assistance programs to address the various needs of homeless families and individuals. These programs help working families/individuals, vulnerable families, survivors of domestic violence, and elderly individuals/families move into permanent housing. The City and the CoC will continue their efforts to increase Permanent Sheltered Housing (PSH) for chronically homeless individuals, as well as place veterans into permanent housing and connect them to the necessary services and benefits. In addition to Permanent Supportive Housing through the CoC and Permanent Housing, case management and supportive services are a crucial component of the City’s strategy to help persons experiencing homelessness find housing and maintain stability. There are a variety of supportive service programs to assist homeless persons who have difficulties with income, employment, money management, legal, and housing.

Annual Action Plan 39 OMB Control No: 2506-0117 (exp. 09/30/2021) 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 facilities, 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 needs. Homeless shelters have become the housing placement choice for many people exiting residential treatment, corrections, or youth programs. The city’s shelters and community service providers have come together to develop appropriate specialized services and identified resources to address the needs of this fragile population and attempt to break the cycle of homelessness by providing the permanent housing and supportive services necessary to stabilize individuals exiting systems of care. Peer support projects and community-based organizations have provided case management and residential services to promote stability for this population, as well as veteran programs and young adult programs to address the needs of subpopulations. Formerly homeless young parenting mothers and their infant children will be particularly referred from shelters and other systems of care to ensure they receive case management, parenting skills and develop a plan for independent living. To be eligible for ESG-funded prevention assistance, programs must assess and document that the household's income is below 30 percent of the Area Median Income (AMI) at intake and does not exceed 30 percent of AMI at subsequent re-evaluations. This criterion ensures that the assistance is targeted toward those who would otherwise face literal homelessness in the absence of ESG support. A household may qualify for prevention assistance if it can be demonstrated that their loss of housing is imminent, they lack appropriate subsequent housing options, and they do not have access to other financial resources or support networks that could assist in maintaining their current housing or obtaining alternative housing. Additionally, subrecipient case managers provide follow-up support to families and individuals who have been housed to ensure they remain stably housed. This follow-up may involve monthly check-ins, either in person, by phone, or through home visits. Discussion In addition to services for homeless persons and persons at risk of homelessness, support services are needed to assist the working poor who are one crisis away from becoming homeless. The SomerVision 2040 Comprehensive Plan update reinforces Somerville’s commitment to the City’s housing-related challenges which include: the rising cost of housing, the lack of affordable housing, forced displacement, chronic homelessness, an insufficient diversity of housing stock, and an inadequate condition of the existing housing stock. SomerVision directly addresses these challenges through its goals and policies, with the overarching goal being to create a diversity of programs that prevent homelessness and address the housing needs of the homeless and those at risk of homelessness. SomerVision’s policy is that the City should ensure that a cohesive network exists to prevent individuals and families from becoming homeless.

Annual Action Plan 40 OMB Control No: 2506-0117 (exp. 09/30/2021) Through an RFP process, local social service providers will be awarded contracts to address the needs of low-income residents with special needs. The City will award Public Service Grant funds to nonprofit agencies to provide supportive services that may include but are not limited to the following: individual needs assessment, crisis counseling, food and nutrition counseling, individual and group counseling, substance abuse counseling and treatment, benefits counseling and advocacy, individual case management, budget counseling, medication management, money management, mental health treatment, transportation, recreation and social activities. Emergency Solution Grant funds will be provided to nonprofit agencies to address prevention of homelessness for at-risk populations and rapid rehousing for those experiencing homelessness. The CoC and OSPCD continue to be committed to the Homeless Management Information System (HMIS). All ESG and CoC recipients participate in HMIS and continued analysis is expected to provide real time data to evaluate the impact of the programs. The CoC and OSPCD continue to work with local social service agencies to establish performance standards. Program and agency refunding is dependent, in part, on successfully meeting the standards.

Annual Action Plan 41 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-75 Barriers to affordable housing – 91.220(j) Introduction The City of Somerville continues to take bold and meaningful actions to address factors and circumstances that have created significant barriers to affordable housing for city residents. These factors include: • Income and wages not keeping pace with rising housing costs and overall inflation • Federal resources for programs, such as the federal Section 8 Program, not being sufficient to meet experienced need • Homeownership being of reach for the majority of residents due to an expensive and competitive first-time home buyer market. • Low housing vacancy rates contributing to higher rents • The cost of land being high along with a lack of vacant land for future growth • A backlog of infrastructure and public facilities investment needs • Ongoing recovery from economic conditions created by the Covid-19 Pandemic along with current shifting economic policies One singular action is not enough to relieve the impact of the stated factors, but the use of funds discussed in this plan, as well as other actions undertaken by the city, attempt to improve the lives of those affected, especially as it comes to affordable housing. 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 In response to the factors noted above, the City has an Anti-Displacement Task force, and has made significant progress on proposals made by this team. Some policies have already been implemented, such as strengthening the inclusionary zoning ordinance to create affordable housing units and generate revenue to support affordable housing. Affordable Housing and Job Creation Linkage fees for large projects help fund the Affordable Housing Trust Fund and Job Creation and Retention Trust Funds, respectively. Additional notable updates or milestones achieved include: • The Office of Housing Stability both assists at risk tenants directly to prevent evictions and is pursuing various anti-displacement policies & strategies. • The SCLT was formed and has acquired two properties. They are actively searching for new opportunities and have partnered with a local housing developer to create roughly 50 new affordable rental units. • The launch of a municipal voucher program with the goal of preventing the displacement of some of the most vulnerable members of the community by providing low barrier to entry mobile and project-based vouchers. 28 households are currently being supported through this program.

Annual Action Plan 42 OMB Control No: 2506-0117 (exp. 09/30/2021) • Re-filing a Home Rule petition to the Commonwealth of MA to institute a locally based transfer fee on real estate transactions that is being deliberated at the state legislature. • Re-filing Home Rule Petitions for a local right of first refusal ordinance and to expand the eligible activities available for funding under the Affordable Housing Trust fund. • Re-filing a Home Rule Petition for rent stabilization. • The adoption of a new zoning ordinance in 2019 to strengthen and promote additional affordable housing creation. • The adoption of zoning changes in compliance with the state’s MBTA Zoning requirement that facilitates the construction of new multifamily housing. • The continued expansion of the pipeline of housing development projects. • New direct assistance programs that have continued after ARPA funding such as Flex Rental Assistance (Flex-SAHTF) and Universal Basic Income programs. UBI will stop providing payments as of 6/1/25. • The approval of an Urban Center Housing Tax Increment Financing (UCH-TIF) agreement for redevelopment of a blighted site at 299 Broadway which will help finance the full mixed income/mixed use project and add more affordable units than with traditional zoning. 136 of the 319 units are affordable, and 12% of those are deeply affordable at 30% or below AMI. • Providing the Somerville Community Corporation with tax abatements for their affordable units which will help maintain long-term affordability. • The launch of an Anti-Displacement Task Force made up of local subject matter experts including City Council, residents, and small business members. The Task Force efforts focused on residential, small enterprise, and artist/creative community displacement. Recommendations were released in January 2025. • Partnering in the Clarendon Hill Redevelopment which will replace 216 units of state public housing as well as add 80 affordable units in a mixed-income development. • Creating a working group on unlocking housing production which is investigating tax policies and other methods to close the financing gap on housing projects struggling with escalating construction and financing costs. Discussion The city continues to take a multi-faceted approach to improving the lives of low to moderate income residents that extends beyond housing policy. Workforce development and infrastructure improvements will alleviate some of the conditions that disproportionately impact low to moderate income residents living in high cost of living regions such as Somerville and the greater Boston area. This multi-faceted approach is intended to not only stabilize the cost pressures being experienced in the housing market but also create opportunities for low to moderate income residents to improve their earnings potential and standard of living.

Annual Action Plan 43 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-85 Other Actions – 91.220(k) Introduction The City of Somerville, along with other partnership agencies, will continue to develop programs and initiatives designed to improve existing programs and identify additional sources of funding to better serve those in need of affordable housing and related services. This section will address the actions and strategies to be undertaken to address underserved needs, foster and maintain affordable housing, evaluate and reduce lead-based paint hazards, and reduce the number of poverty level families. The City is also working to enhance coordination efforts between public and private housing and social service agencies and identify additional sources of funding to better serve those in need of affordable housing and related services. Actions planned to address obstacles to meeting underserved needs The City will address obstacles to meeting the underserved needs by collaborating with public and private agencies and pursuing funding sources as they become available for specific priority activities. OSPCD will strive to overcome the main obstacles of the underserved by: • Leveraging its resources and partnering with housing and service organizations to create supportive housing units for the chronically homeless to help federal dollars touch more projects • Seeking partnerships with developers to apply for more tax credit applications and other grants • Helping households increase their income and assets through job readiness and other assistance programs and to help individuals secure a job to increase their family income • Helping families build assets by providing financial assistance to income eligible households who otherwise could not afford to purchase a home due to lack of funds for down payment and other fees associated with the purchase • Making housing and services available to underserved populations and populations with special needs when possible • Supporting services for senior citizens and persons with disabilities by providing medical and nutritional shopping to promote access to essential community services by providing health, wellness, and nutrition • Supporting groups with the goal to increase mobility for senior citizens and persons with disabilities to continue to be active and social • Providing supportive services to low and low-moderate income working families to include affordable camps and after-school enrichment programs for disadvantaged and underserved youth • Supporting domestic violence and abuse prevention and treatment for survivors of domestic violence through counseling, safety-net, planning, and legal representation • Advertising available services to the underserved through translated materials to reach non- English speaking residents • Exploring different methods of outreach to communicate with residents who have disabilities • Aiming to have publicly held hearings in low-income neighborhoods. The above listed action items all fall under the umbrella of maximizing the efficacy of all of planned activities by leveraging as diverse a set of funding streams as possible to sustain and augment these

Annual Action Plan 44 OMB Control No: 2506-0117 (exp. 09/30/2021) initiatives. In recent years, the City has been able to provide increased funding and services by growing its Affordable Housing Trust and Jobs Creation Trust funding bases. Actions planned to foster and maintain affordable housing OSPCD and its partnership agencies aim to foster and maintain affordable housing through many methods, including: • Monitoring the existing stock of affordable housing units through property inspections and continued relationships with property managers • Reinvestment in aging housing stock to ensure units remain safe, healthy, and energy-efficient • Exploring additional funding sources for affordable housing such as private and local/regional/state funding opportunities • Encouraging higher density mixed use developments • Collaborating with regional public and private agencies working to promote affordable housing • Fostering the Community Land Trust and other developers seeking to acquire and create new affordable housing units • Requiring long-term affordability restrictions, including in-perpetuity restrictions for large new development projects or as a condition of public investment • Preservation of affordability for units with expiring restrictions. Actions planned to reduce lead-based paint hazards Childhood lead poisoning remains the most serious environmental health threat facing children today. Unlike many other health concerns, lead poisoning is entirely preventable—and the City of Somerville is committed to taking action. To help eliminate lead hazards in local homes, the City has allocated a portion of its Community Development Block Grant (CDBG) funding to address lead-based paint through its Home Improvement Program. Recognizing the critical need to protect children, the City prioritizes funding for eligible units that are seeking to address lead paint risks. As part of the City’s commitment to lead safety, any property participating in the Home Improvement Program that does not have a valid Letter of Full De-leading Compliance from a licensed and insured lead inspector must undergo a lead paint inspection. Additionally, any project that exceeds a certain cost threshold or is currently occupied by children must correct any identified lead hazards as part of the project’s scope. To meet lead compliance requirements, the following steps must be completed: 1. Lead Inspection & Risk Assessment: A licensed lead inspector performs a full inspection and risk assessment to identify the presence of lead hazards. 2. Hazard Mitigation: A licensed lead contractor carries out the required lead hazard control work to eliminate risks and ensure compliance with state and federal lead laws.

Annual Action Plan 45 OMB Control No: 2506-0117 (exp. 09/30/2021) 3. Final Compliance Inspection: A follow-up inspection, including dust wipe sampling, is conducted by a licensed inspector to verify that all lead hazards have been effectively addressed. Through these efforts, the City of Somerville is working to ensure safer homes and healthier futures for our children. Actions planned to reduce the number of poverty-level families The City and other agencies will continue to collaborate in pooling necessary resources to assist individuals and families with obtaining the tools to overcome poverty. These anti-poverty goals will include: • Increasing effective income through activities such as funding job training and educational programs to increase a person’s potential income and promoting awareness of tax filing credits • Supporting asset accumulation by working with organizations to increase financial education, home-buyer counseling and general financial literacy concerns • Promoting small businesses and economic development by providing technical assistance and support to microenterprises to encourage their success, expansion of small businesses and job creation • Providing case management, emergency assistance and information/referral services to low income and poverty level families to include financial assistance for education or job training to help clients get better jobs with higher income potential • Supporting employment, transportation and training programs to improve academic, basic and technical skills of low-income persons so they can find jobs/improve their earning capacity • Providing funding to childcare service providers • Providing emergency utility assistance to income eligible families in financial stress, including weatherization and urgently needed home repairs • Providing public services to very low-income families and at-risk youth to support education, training and employment programs • Creating mixed income communities to encourage the de-concentration of poverty, as well as supporting the creation of stable mixed income neighborhoods through the development of affordable housing outside of low-income areas. Actions planned to develop institutional structure The City hopes that the coordination of federal and private resources will improve access to community development resources that serve high priority areas and initiatives. Close communication with providers of housing programs will improve program coordination and facilitate the implementation of new housing policies and programs. As part of conformance to the HEARTH Act, the City and its CoC sub- recipients are required to participate in the Coordinated Access System for all that receive ESG funding. Participating sub-recipients must adhere to the Coordinated Entry (CE) policy and procedures to coordinate and strengthen access to diversion, housing and shelter services for families and individuals who are homeless or at risk of homelessness. The CE institutes consistent and uniform assessment and referral processes to determine and secure the most appropriate response to each individual and family’s immediate and long-term housing needs.

Annual Action Plan 46 OMB Control No: 2506-0117 (exp. 09/30/2021) The City’s Anti-Displacement Task Force, approached displacement holistically by convening subject matter experts, City Council, residents, small business owners, non-profits, and creative enterprises to develop recommendations to reduce the rate of displacement. These recommendations were released to the public in January 2025. One of those recommendations, a Home Rule Petition to enable the establishment of a rent stabilization policy aimed to slow the rate of housing cost escalation, is pending at the state house. Actions planned to enhance coordination between public and private housing and social service agencies Housing and social service providers collaborate regularly through participation in the Balance of State CoC’s monthly meetings and its various subcommittee meetings. A Housing Division staff member serves as a representative for City of Somerville and serves as a liaison between the City and housing and social service agencies. These meetings also include representatives from agencies serving a broader group of residents at the poverty level, such as Community Action Agency of Somerville, Somerville Homeless Coalition, RESPOND, Cambridge and Somerville Legal Services, as well as other organizations that provide non-housing services. The CoC also maintains an inventory of housing and social service providers and collects information about subpopulations served and the services provided. Several social service agencies have offices located at public housing sites and coordinate with the housing authority to identify potential problems and help resolve any problems immediately. Discussion The City of Somerville is continuously refining its strategies to foster affordable housing, reduce lead- based paint hazards, offer microenterprise and entrepreneurship technical assistance, reduce the number of families in poverty, and enhance overall coordination. City of Somerville will continue to work to create an environment that serves the need of the low- and moderate-income community effectively and with minimal barriers.

Annual Action Plan 47 OMB Control No: 2506-0117 (exp. 09/30/2021) Program Specific Requirements AP-90 Program Specific Requirements – 91.220(l)(1,2,4) 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 – $50,000 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives 1. identified in the grantee's strategic plan –$ 495586.25 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 - $545,586.25 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. - 80% HOME Investment Partnership Program (HOME) Reference 24 CFR 91.220(l)(2) A description of other forms of investment being used beyond those identified in Section 92.205 is as follows: Not applicable. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows: See Appendix. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows: See Appendix. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows: See Appendix If applicable to a planned HOME TBRA activity, a description of the preference for persons with special needs or disabilities. (See 24 CFR 92.209(c)(2)(i) and CFR 91.220(l)(2)(vii)).

Annual Action Plan 48 OMB Control No: 2506-0117 (exp. 09/30/2021) Not Applicable If applicable to a planned HOME TBRA activity, a description of how the preference for a specific category of individuals with disabilities (e.g. persons with HIV/AIDS or chronic mental illness) will narrow the gap in benefits and the preference is needed to narrow the gap in benefits and services received by such persons. (See 24 CFR 92.209(c)(2)(ii) and 91.220(l)(2)(vii)). Not Applicable If applicable, a description of any preference or limitation for rental housing projects. (See 24 CFR 92.253(d)(3) and CFR 91.220(l)(2)(vii)). Note: Preferences cannot be administered in a manner that limits the opportunities of persons on any basis prohibited by the laws listed under 24 CFR 5.105(a). Not Applicable Emergency Solutions Grant (ESG) Reference 91.220(l)(4) Include written standards for providing ESG assistance (may include as attachment) See Appendix. If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment system. The Continuum of Care has a centralized assessment form. Evaluation criteria and performance outcomes related to monitoring protocols have been developed, and the goal of the coordinated assessment system is to enable agencies to make rapid, effective and consistent matches with clients and housing and services, regardless of the client’s location within the CoC’s geographic area, by standardizing the access and assessment process and by coordinating referrals. The coordinated entry tool takes into consideration factors such as inventory of resources, assessment tools, and populations to be prioritized, as well as various strategies, procedures and approaches to access inventory, centralized access, coordinated assessment/no wrong door, etc. Due to the diverse range of emergency shelter programs within the region, shelter standards governing length of stay, safety and needs of special populations are a part of the process. Each program funded by City of Somerville ESG dollars is mandated to have their own written shelter policies and procedures concerning matters that meet, or exceed, the City and federal regulations. Housing priorities and services for individuals and families can be recommended using a vulnerability index. Permanent Supportive Housing is recommended for individuals and families who need permanent housing with ongoing access to services and case management to remain stably housed. Identify the process for making sub-awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith-based organizations)

Annual Action Plan 49 OMB Control No: 2506-0117 (exp. 09/30/2021) OSPCD coordinates with the Balance of State CoC to prioritize ESG objectives. Currently these include Rapid Re-Housing, Homeless Prevention, Essential Services/ Operations, HMIS, and Administration. These priorities are evaluated annually. OSPCD issued a Request for Proposals (RFP) for the ESG program with the intent of providing funding to sub-grantees. The RFP was posted on the City’s website where it could be accessed and downloaded by interested agencies. The RFP was also emailed to agencies who had expressed interest previously. If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction must specify its plan for reaching out to and consulting with homeless or formerly homeless individuals in considering policies and funding decisions regarding facilities and services funded under ESG. The City of Somerville meets the homeless participation requirement 24 CFR 576.405(a). OSPCD consults with each agency receiving ESG funds to ensure the intended homeless individuals receive services. Sub-grantees recognize the importance of involving past and present participants of the programs in planning and agency policy making activities, although the practicality of doing so is often difficult. The City meets the homeless participation requirements by including homeless and formerly homeless individuals through participation and consultation with the Balance of State Continuum of Care, an entity that includes formerly homeless individuals as members. Sub-grantees involve program participants in activities and planning. Some formerly homeless persons have become board members, staff members and/or volunteers in various organizations. Others are invited to speak publicly about their personal stories to raise awareness in the community. Shelter residents can provide input on programs at house meetings and at exit interviews. Before departure, residents have an opportunity to complete written evaluations and comment on and provide suggestions for changes or improvements in service. Describe performance standards for evaluating ESG. ESG proposals are evaluated based on the applicant’s previous experience providing services to the homeless community, and on their ability to address one or more of the needs highlighted in the Consolidated Plan. Proposals are also evaluated based on the response to the criteria in the Request for Proposals, their stated capacity, timeliness of application, and quality of work. ESG proposals that adhere to HUD’s Housing First Model are viewed favorably. All ESG recipients are required to participate in HMIS and continued analysis is expected to provide real time data to evaluate the impact of programs.