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Home My WebLink About013 of 2020 - Approving Notice of Funding Availability (NOFA) for Affordable Housing Funding Allocations1 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ Citywide Affordable Housing – Notice of Funding Availability (NOFA) Funding Allocations RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY APPROVING CITYWIDE AFFORDABLE HOUSING PROJECT FUNDING ALLOCATIONS. WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) was created to transact the business and exercise the powers provided for in the Utah Community Reinvestment Agency Act (the “Act”). WHEREAS, the Act provides that tax increment funds may be used for the purpose of increasing the affordable housing supply within the boundaries of Salt Lake City. WHEREAS, the RDA Board of Directors (the “Board”) has set aside $3,953,799 for a Notice of Funding Availability (“NOFA”), contingent upon an application and review process administered by the RDA to facilitate funding of qualified projects that meet the goals established by the NOFA guidelines. The funding sources for this amount includes $2,590,000 in Funding Our Future revenues and $1,363,779 in tax-increment funds. WHEREAS, the RDA facilitated a loan application and review process pursuant to the RDA’s NOFA policy set forth in resolution R-17-2018 (the “NOFA Policy”) that resulted in two requests for funding totaling $2,420,000. WHEREAS, on August 27, 2020, a selection committee reviewed the NOFA applications and recommended funding allocations and preliminary terms as further described in on Exhibit A. WHEREAS, based on the selection committee’s recommendations, the RDA staff recommends that the Board approve the funding allocations and preliminary terms described on Exhibit A, and that the RDA shall provide a conditional commitment period determined by the RDA, during which the approved applicant shall have the opportunity to obtain needed financial, legal, and regulatory approvals as well as satisfy other conditions determined by the RDA in order to finalize the loan terms. WHEREAS, pursuant to the NOFA Policy, projects that successfully meet the conditions of the conditional commitment shall be invited to execute a Letter of Commitment to finalize the loan terms, subject to a set of conditions precedent to closing of the loan. R-13-2020 R 20-2 2 NOW THEREFORE, BE IT RESOLVED BY THE BOARD that it approves the funding allocations and preliminary terms as further described in Exhibit B, subject to revisions that do not materially affect the rights and obligations of the RDA hereunder. For approved applicants that successfully meet the required conditions, the Board authorizes the Executive Director to negotiate and execute the conditional commitment letter, the Letter of Commitment, and the loan agreements and other relevant documents consistent with the funding allocations and terms contained on Exhibit B, and incorporating such other terms and conditions as recommended by the City Attorney’s office. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this _______ day of September 2020. ________________________________ Amy Fowler, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Kimberly K. Chytraus Date:____________________________ The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. ________________________________ Erin Mendenhall, Executive Director Attest: ________________________ City Recorder September 2, 2020 29th Amy Fowler (Oct 20, 2020 14:45 MDT) Erin Mendenhall (Oct 20, 2020 18:23 MDT) 4 Cindy Trishman (Oct 21, 2020 01:18 MDT) 3 EXHIBIT A: NOFA SELECTION COMMITTEE RECOMMENDED FUNDING ALLOCATIONS The NOFA selection committee (“Committee”) recommends the following: 1.$1,500,000 Loan Request for 144 Place Apartments at 144 S. 500 East from 144 South Apartments, LLC: The Committee recommends approval of the $1,500,000 loan request from Red Gate Properties for the 144 Place apartment development at 144 S. 500 East with a non-extendable 12-month conditional commitment period, subject to the following conditions: •The loan shall be provided as a construction to permanent loan to close with primary financing. •The primary financing, HUD 221(d)4 Loan, shall be approved and close within the conditional commitment period. If this funding is not received, the RDA’s commitment shall terminate. •The Olene Walker loan shall be subordinate to the RDA loan. •Repayment of and return on equity shall be made secondary to RDA debt payments. •Affordable unit rents must be set at 50% AMI and shall include rent, utilities and parking costs. •Affordable units must be maintained as rent and income eligible. •The project’s design and development plan shall be reviewed and approved by RDA staff. •Final loan terms and conditions shall be approved by RDA staff. The loan request shall be funded with Funding our Future sales tax revenues. 2.$920,000 Loan Request for Pendleton Place Housing Project at1725 S. Jefferson Street from the Housing Authority of Salt Lake City: The Committee recommends against approval of the $920,000 funding request from the Housing Authority of Salt Lake City for the Pendleton Place development at 1725 S. Jefferson Street. The Committee does recognize the value this particular project would add to the community; however, due to the project’s noncompliance with zoning that is a threshold requirement of the NOFA, the committee would recommend that the applicant address this zoning noncompliance and reapply for funding in the future. 4 EXHIBIT B: NOFA RDA BOARD FUNDING ALLOCATIONS 4 EXHIBIT B: NOFA RDA BOARD FUNDING ALLOCATIONS The RDA Board of Directors (“Board”) approved with the conditions listed below that $1,500,000 to be allocated to the 144 Place Apartments as recommended by the NOFA Selection Committee (“Committee”): $1,500,000 Loan Request for 144 Place Apartments at 144 S. 500 East from 144 South Apartments, LLC: The Committee recommends approval of the $1,500,000 loan request from 144 South Apartments, LLC for the 144 Place apartment development at 144 S. 500 East with a non- extendable 12-month conditional commitment period, subject to the following conditions: • The loan shall be provided as a construction to permanent loan to close with primary financing. • The primary financing, HUD 221(d)4 Loan, shall be approved and close within the conditional commitment period. If this funding is not received, the RDA’s commitment shall terminate. • The Olene Walker loan shall be subordinate to the RDA loan. • Repayment of and return on equity shall be made secondary to RDA debt payments. • Affordable unit rents must be set at 50% AMI and shall include rent, utilities and parking costs. • Affordable units must be maintained as rent and income eligible. • The project’s design and development plan shall be reviewed and approved by RDA staff. • Final loan terms and conditions shall be approved by RDA staff. The loan request shall be funded with Funding our Future sales tax revenues. The Board denied the request for funding for Pendelton Place as recommended by the Committee: $920,000 Loan Request for Pendelton Place Housing Project at1725 S. Jefferson Street from the Housing Authority of Salt Lake City: The Committee recommends against approval of the $920,000 funding request from the Housing Authority of Salt Lake City for the Pendleton Place development at 1725 S. Jefferson Street. The Committee does recognize the value this particular project would add to the community; however, due to the project’s noncompliance with zoning that is a threshold requirement of the NOFA, the committee would recommend that the applicant address this zoning noncompliance and reapply for funding in the future. RDA Resolution R-13-2020 - Approved 9-29-20 Final Audit Report 2020-10-21 Created:2020-10-01 By:DeeDee Robinson (deedee.robinson@slcgov.com) Status:Signed Transaction ID:CBJCHBCAABAADxZJ0plByaLHWhGLQ7TttTgYm4K0ILPV "RDA Resolution R-13-2020 - Approved 9-29-20" History Document created by DeeDee Robinson (deedee.robinson@slcgov.com) 2020-10-01 - 9:41:06 PM GMT- IP address: 204.124.13.151 Document emailed to Amy Fowler (amy.fowler@slcgov.com) for signature 2020-10-01 - 9:45:04 PM GMT Email viewed by Amy Fowler (amy.fowler@slcgov.com) 2020-10-20 - 8:45:15 PM GMT- IP address: 136.36.122.143 Document e-signed by Amy Fowler (amy.fowler@slcgov.com) Signature Date: 2020-10-20 - 8:45:25 PM GMT - Time Source: server- IP address: 136.36.122.143 Document emailed to Erin Mendenhall (erin.mendenhall@slcgov.com) for signature 2020-10-20 - 8:45:27 PM GMT Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com) 2020-10-21 - 0:23:45 AM GMT- IP address: 97.117.110.184 Document e-signed by Erin Mendenhall (erin.mendenhall@slcgov.com) Signature Date: 2020-10-21 - 0:23:57 AM GMT - Time Source: server- IP address: 97.117.110.184 Document emailed to Cindy Trishman (cindy.trishman@slcgov.com) for signature 2020-10-21 - 0:23:59 AM GMT Document e-signed by Cindy Trishman (cindy.trishman@slcgov.com) Signature Date: 2020-10-21 - 7:18:23 AM GMT - Time Source: server- IP address: 204.124.13.222 Agreement completed. 2020-10-21 - 7:18:23 AM GMT