HomeMy WebLinkAbout02/08/2022 - Meeting MaterialsBoard of Directors of the
REDEVELOPMENT AGENCY OF
SALT LAKE CITY
AGENDA
February 8,2022 Tuesday 2:00 PM
This Meeting Will be an Electronic Meeting Pursuant to the Chair’s
Determination.
SLCRDA.com
This is a discussion among RDA Board Directors and select presenters.The public is welcome to listen,
unless otherwise specified as a public comment period.Items scheduled may be moved and /or discussed
during a different portion of the Meeting based on circumstance or availability of speakers.Item start
times and durations are approximate and are subject to change at the Chair’s discretion.
Generated:09:26:52
This meeting will be an electronic meeting pursuant to the
Chair’s determination.
As Salt Lake City Redevelopment Agency (RDA)Chair,I hereby determine that
conducting the RDA Board meeting at an anchor location presents a substantial risk to the
health and safety of those who may be present.The decision to meet online follows a local
increase in COVID-19 cases in the City and elsewhere and will be re-evaluated weekly.
The change in meeting attendance is a precautionary measure for the safety of the public
and City employees based on the latest reports from the Centers for Disease Control and
the Salt Lake County Health Department.The Board will return with hybrid or in-person
meetings when appropriate
We encourage those interested in participating in meetings to do so how they feel most
comfortable.Board meetings are available on the following platforms:
•Facebook Live:www.facebook.com/slcCouncil/
•YouTube:www.youtube.com/slclivemeetings
•Web Agenda:www.slc.gov/council/agendas/
•SLCtv Channel 17 Live:www.slctv.com/livestream/SLCtv-Live/2
If you are interested in participating during the general comment period,you may do so
through the Webex platform.To learn how to connect through Webex,or if you need call-
in phone options,please visit our website or call us at 801-535-7607 to learn more.
We welcome and encourage your comments.You may provide comments by calling our
24-Hour comment line,801-535-7654 or emailing
council.comments@slcgov.com.Council staff monitors voicemail and email inboxes to
ensure all comments received are shared with Board Members and added to the public
meeting record.View agenda-related comments at www.slc.gov/council/agendas.
More information including Board meeting information and resources can be found at
www.SLCCouncil.com.
A.Comments:
1.General Comments to the Board ~2:00 p.m.
5 min
The RDA Board of Directors will receive public comments regarding Redevelopment
Agency business in the following formats:
1.Written comments submitted to RDA offices,451 South State Street,Suite 118,P.O.
Box 145455,Salt Lake City,UT.84114-5455.
2.Comments to the RDA Board of Directors.(Comments are taken on any item not
scheduled for a public Hearing,as well as on any other RDA Business.Comments are
limited to two minutes.)
B.Public Hearing -individuals may speak to the Board once per public hearing topic
for two minutes,however written comments are always accepted:
NONE.
C.Redevelopment Agency Business -The RDA Board of Directors will receive
information and/or hold discussions and/or take action on:
1.Approval of Minutes ~2:05 p.m.
5 min.
The Board will approve the meeting minutes of Tuesday,June 9,2020.
2.Resolution:Repealing and Replacing the Housing Allocation Funds
Policy Follow-up
~2:10
p.m.
40 min.
The Board will receive a follow-up briefing,and consider adopting a resolution repealing
and replacing the Housing Allocation Funds Policy.RDA staff has incorporated the
priorities for the WCI into the Housing Allocation Funds policy along with other
amendments that address broader housing goals and activities.Staff presented the basic
terms for a Westside Community Initiative (“WCI”)program to the Board in September
2021,and a first discussion of this proposed ordinance change was held during the
January 18,2022 RDA Board meeting.
3.Resolution:Amendments to the Housing Development Loan
Program
~2:50
p.m.
20 min.
The Board will receive a briefing about,and consider adopting a resolution that would
amend the Housing Development Loan Program policy.The proposed amendment would
add standards for the distribution of Emergency Gap Financing Funds,and charge the
RDA Finance Committee with review of applications for this funding.The purpose is to
ensure these funding requests are reviewed in a consistent matter.
4.Report and Announcements from the Executive Director TENTATIVE
5 min.
Report of the Executive Director,including a review of information items,
announcements,and scheduling items.The Board of Directors may give feedback or
policy input.
5.Report and Announcements from RDA Staff TENTATIVE
5 min.
The Board may review Board information and announcements.The Board may give
feedback on any item related to City business,including but not limited to;
•Project Updates;and
•Scheduling Items.
D.Written Briefings –the following briefings are informational in nature and
require no action of the Board.Additional information can be provided to the Board
upon request:
NONE.
E.Consent –the following items are listed for consideration by the Board and can be
discussed individually upon request.A motion to approve the consent agenda is
approving all of the following items:
NONE.
F.Closed Session
The Board will consider a motion to enter into Closed Session.A closed meeting described under
Section 52-4-205 may be held for specific purposes including,but not limited to:
1.discussion of the character,professional competence,or physical or mental health of
an individual;
2.strategy sessions to discuss pending or reasonably imminent litigation;
3.strategy sessions to discuss the purchase,exchange,or lease of real property:
(i)disclose the appraisal or estimated value of the property under consideration;or
(ii)prevent the public body from completing the transaction on the best possible
terms;
4.strategy sessions to discuss the sale of real property,including any form of a water
right or water shares,if:
(i)public discussion of the transaction would:
(A)disclose the appraisal or estimated value of the property under consideration;
or
(B)prevent the public body from completing the transaction on the best possible
terms;
(ii)the public body previously gave public notice that the property would be offered
for sale;and<
(iii)the terms of the sale are publicly disclosed before the public body approves the
sale
5.discussion regarding deployment of security personnel,devices,or systems;and
6.investigative proceedings regarding allegations of criminal misconduct.
A closed meeting may also be held for attorney-client matters that are privileged pursuant to
Utah Code §78B-1-137,and for other lawful purposes that satisfy the pertinent requirements of
the Utah Open and Public Meetings Act.
G.Adjournment
CERTIFICATE OF POSTING
On or before 5:00 p.m.on February 3,2022,the undersigned,duly appointed City Recorder,does hereby certify
that the above notice and agenda was (1)posted on the Utah Public Notice Website created under Utah Code
Section 63F-1-701,and (2)a copy of the foregoing provided to The Salt Lake Tribune and/or the Deseret News
and to a local media correspondent and any others who have indicated interest.
CINDY LOU TRISHMAN
SALT LAKE CITY RECORDER
Final action may be taken in relation to any topic listed on the agenda,including but not limited
to adoption,rejection,amendment,addition of conditions and variations of options discussed.
People with disabilities may make requests for reasonable accommodation,which may include alternate
formats,interpreters,and other auxiliary aids and services.Please make requests at least two business days in
advance.To make a request,please contact the City Council Office at council.comments@slcgov.com,
801-535-7600,or relay service 711.
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 9, 2020
20 - 1
The Board of Directors of the Redevelopment Agency (RDA) of Salt Lake
City, Utah, met on Tuesday, June 9, 2020 in an electronic meeting
pursuant to the Salt Lake City Emergency Proclamation.
Virtual Attendance: Directors Amy Fowler, Daniel Dugan, Chris Wharton,
Analia Valdemoros, Andrew Johnston, James Rogers, and Darin Mano.
Staff in Virtual Attendance: Jennifer Bruno, Council Executive Deputy
Director; Mayor Mendenhall, Lisa Shaffer, Mayor’s Deputy Chief of Staff,
Danny Walz, RDA Chief Operating Officer; Jill Wilkerson-Smith, Deputy
Chief Operating Officer; Katherine Lewis, City Attorney; Tom Millar,
Transportation Planner; Cara Lindsley, Project Manager; Tracy Tran,
Project Manager; Robert Nutzman, Council Staff; and Scott Crandall,
Deputy City Recorder.
Guests in Attendance: Jonathon Bates, University of Utah - Executive
Director of Real Estate Administration; and Andrew King, University of
Utah - Associate Director of Campus Planning.
Director Fowler presided at and conducted the meeting.
The meeting was called to order at 2:05 p.m.
A. GENERAL COMMENTS TO THE BOARD
There were no public comments. B. PUBLIC HEARINGS
None.
C. REDEVELOPMENT AGENCY BUSINESS
#1. Informational: Central Station Pre-Disposition Property Report. The Board will be briefed about the Administration’s plans for
disposition of about 4 acres of property located at approximately 100
South and 600 West in the Central Station area. This property is located
in the Depot District Project Area.
Item not held. #2. Informational: University of Utah Research Park Master Plan.
The Board will be briefed about the University of Utah’s Vision Plan for
a Research Park Master Plan. In January 2020, the Board adopted a
resolution authorizing a survey boundary for a potential Community
Reinvestment Area (CRA) at the University of Utah Research Park. The
resolution, required under State statute, started the process to
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 9, 2020
20 - 2
determine whether project area development is feasible within the survey
area. Tracy Tran provided a brief introduction regarding the plan.
Jonathon Bates and Andrew King provided information regarding:
• Historical Points Regarding Research Park: established in 1968 (land
grant from Federal Government), the City having invested in
infrastructure (roadways, storm/water/sewer) for the project (50 years
ago), and Master Planning process having started in April 2019 (“Phase
I Vision”)
• Guiding Principles: establish a vibrant, interdisciplinary mixed-use
environment, facilitate partnerships to enable a dynamic innovation
ecosystem, promote a compact and human-scale environment, attract
innovative businesses (sustainable/resilient development and design
strategies), prioritize multi-modal circulation to/through the
campus, and foster intentional University connections and build
neighborhood relationships
• Potential New Development: offices/labs, residential, retail, hotel,
civic/community structures, and parking (four community-based garages
for employees and visitors; on-street and off-street parking for
residents
• Phased Infrastructure Plan:
o Years 0-5 – Wakara/Chipeta intersections, innovation
storefronts, improving Colorow road, mixed-use redevelopment for
375/391 Chipeta Way properties, implementation of the first
mobility hub in Research Park, etc.
o Years 5-10 – Improving transit accessibility, Arapeen Connector
(better continuity between campuses), implementing open space
amenities, potential for bus rapid-transit access off Foothill
into core of Research Park, etc.
o Years 10-20 – Long-term high-capacity transit improvements,
expanding open space amenities, etc.
• Ecological Framework: protecting and restoring high value habitat,
creating safe, comfortable, and sustainable streets, establishing a
permanent “Heart of the Park” to connect the community
• Innovation Ecosystem: expanding types of employment spaces, allowing
housing development, creating a Research Park Innovation hub
(storefront in existing building with planned long-term expansion into
the Convergence Hall)
• Giving Back to the Community: providing jobs in the district to nearby
residents, providing training and job fairs, offering access to
everyday needs (gym, daycare, dining, and retail), providing safe and
accessible public spaces
• Campus Mobility & Community Parking: strategic mobility hubs, “Park
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 9, 2020
20 - 3
Once” strategy, prioritizing streets for emerging mobility (more
equitable approach to all forms of transportation), transit
improvements
• Connecting Research Park land to the West Village land in
collaboration with Utah Department of Transportation (UDOT) and the
City for pedestrians and bicycles - through a potential bridge or a
tunnel
• Expansion of Wakara Way into West Village to further connect the two
sites (Research Park/West Village) for vehicular use
3. Informational: Folsom Trail Supplemental Funding for Landscaping, Lighting and Decorative Elements. The Board will be briefed
about a proposal to use funds previously appropriated for the Folsom
Trail and North Temple Catalytic Projects. The Folsom Trail is a planned
off- street, paved walking and bicycling path connecting the Jordan River
to downtown Salt Lake City through the RDA’s North Temple and Depot
District project areas. Construction of the Folsom Trail is scheduled to
begin later this year and finish in 2021.
Danny Walz, Tom Millar, and Cara Lindsley briefed the Board
regarding:
• Location and elements of Folsom Trail: one-mile trail, paved walking
and bicycling path connecting Jordan River to downtown, running
through RDA’s North Temple and Depot District Project Areas)
• Funding Sources: Federal Tiger Grant - $1.96 M (First and Last Mile
Active Transportation Connections, City match from General Fund and
Parks Impact Fees - $482,000, and Salt Lake County Quarter Cent Sales
Tax - $1.02 M
• Supplemental funding sought: $97,974 RDA FY 19 Budget Amendment
(“Enhanced Trail and Landscape Design”), and $250,000 – RDA FY20
budget appropriation for North Temple Catalytic Project
• Public outreach efforts to identify priority projects and online
survey gathering feedback on landscaping, lighting, and decorative
elements
• Construction of the trail scheduled to begin this year (fall) and
expected completion by end of 2021
• Maintenance for the trail to be provided by Public Lands (Parks/Urban
Forestry/Trails and Natural Lands) through the General Fund budget
amendment process or the following year’s budget process as a line
item/increase the line-item cost to include maintenance for all City
trails
Straw Poll: Support to move forward with the suggested funding
sources for the trail. All Directors were in favor. (Director Wharton
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 9, 2020
20 - 4
was absent for the vote.)
#4. Report and Announcements from the Executive Director. Report
of the Executive Director, including a review of information items,
announcements, and scheduling items. The Board of Directors may give
feedback or policy input.
None.
#5. Report and Announcements from RDA Staff. The Board may review
Board information and announcements. The Board may give feedback on any
item related to City business, including but not limited to scheduling
items.
Danny Walz recognized Jill Wilkerson-Smith (her last Board meeting)
for her 30 years of service and offered congratulations on her retirement
from the City and said she would be missed.
Jill Wilkerson-Smith thanked Mr. Walz, RDA Staff, and all who were
involved in her RDA journey.
Director Fowler and Mayor Mendenhall offered gratitude for Ms.
Wilkerson-Smith’s outstanding work over the years and congratulated her
on her retirement.
#6. Report of the Chair and Vice Chair.
Councilmember Fowler reminded the Board they would be considering
adopting the RDA Budget during this evening’s Formal Meeting.
D. WRITTEN BRIEFINGS
#1. Informational: Redevelopment Agency Semi-Annual Property Report. The Board will receive a written briefing of all Tier 1 and Tier
2 properties owned by the RDA, as per the Land Disposition Policy. The
report includes the description, address, parcel ID, size, zoning and
tier category of each property. In addition, the report details
approximate acquisition date, current category of disposition, interim
use and proposed permanent use for each property.
Written briefing only. No discussion was held. E. CONSENT
None.
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 9, 2020
20 - 5
F. CLOSED SESSION. The Board will consider a motion to enter into
Closed Session, in keeping with Utah Code §52-4-205 for any allowed
purpose.
Item not held.
This portion of the meeting recessed at 3:04 p.m.
The meeting reconvened at 7:12 p.m. to conduct additional business.
The following Board Directors were present electronically.
Andrew Johnston James Rogers Daniel Dugan
Amy Fowler Darin Mano Chris Wharton
Analia Valdemoros
Cindy Gust-Jenson, Council Executive Director; Jennifer Bruno,
Council Executive Deputy Director; Erin Mendenhall, Mayor; Rachel Otto,
Mayor’s Chief of Staff; Katherine Lewis, City Attorney; Cindy Lou
Trishman; City Recorder; and Scott Crandall, Deputy City Recorder;
participated electronically.
Director Fowler presided at and conducted the meeting.
OPENING CEREMONY #1. Pledge of Allegiance (A moment of silence was held while the
American Flag/Anthem was displayed on the video screen.)
#2. Welcome and Review of Standards of Conduct.
Note: Opening Ceremonies were held as part of the June 9, 2020
combined Local Building Authority, Redevelopment Agency, and City
Council Formal agenda.
D. POTENTIAL ACTION ITEMS:
#1. Approving a resolution adopting the final budget for the Redevelopment Agency of Salt Lake City for Fiscal Year 2020-2021.
Director Wharton moved and Director Johnston seconded to adopt Resolution R-12-2020, adopting the FY21 RDA Budget reflected in the attached Key Changes spreadsheet with the clarifications shown on the motion sheet: RDA Capital Projects – $1,551,748 in capital projects are approved which do not lapse to Fund Balance with the understanding that these
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY TUESDAY, JUNE 9, 2020
20 - 6
will return to the Board when specific project/program proposals are available as follows: a. $250,000 from Central Business District for Japan Town placed into a holding account b. $100,000 from Block 70 for Regent Street Parking Structure Reserve account c. $388,981 from Depot District for 100 South Utilities placed into a holding account d. $42,681 from North Temple for the required 10% school fund e. $270,086 from North Temple for a catalytic development project f. $250,000 from Program Income Fund for project area art g. $250,000 from Program Income Fund for Gallivan repairs placed into a holding account, which motion carried, all members voted aye (roll
call).
Director Wharton moved and Director Dugan seconded to adjourn as the Redevelopment Agency Board and convene as the City Council, which
motion carried, all directors voted aye (roll call).
The meeting adjourned at 7:16 p.m.
Minutes Approved:
______________________________
Redevelopment Agency Chair
______________________________
Secretary
Due to the 2020 events, minutes were delayed for approval. The links
and audio file are available similarly to those in 2021. To listen to
the audio recording of the meeting or view meeting materials, please
visit Salt Lake City Public Body Minutes library, available at
www.data.slc.gov, selecting the Public Body Minutes hyperlink. If you
are viewing this file in the Minutes library, use the links on the right
of your screen within the ‘Document Relationships’ information to listen
to the audio or view meeting materials.
This document along with the digital recording constitute the
official minutes of the Salt Lake City Redevelopment Agency meetings
(afternoon and evening) held June 9, 2020.
1
BOARD STAFF REPORT
THE REDEVELOPMENT AGENCY of SALT LAKE CITY
TO:RDA Board Members
FROM: Allison Rowland
Budget & Policy Analyst
DATE:January 18, 2022
RE: RESOLUTION: REPEALING AND REPLACING THE RDA HOUSING ALLOCATION
FUNDS POLICY
ISSUE AT-A-GLANCE
The RDA Housing Allocation Funds Policy was adopted by the Board in early 2021 as part of its multi-year
process of establishing, refining, and implementing guidelines for the use of several different revenue streams. It
defined four Housing Funds based on the revenue sources of each and the Board’s policy priorities for their use,
along with an annual budgeting process and annual reporting requirements (see Attachment C1). RDA staff now
has proposed a set of revisions, most of which relate to incorporating the Westside Community Initiative (WCI)
into the Housing Allocation Funds Policy. (For additional information on the WCI, see Attachments C2 and C3)
RDA Staff indicates that the Board does not need to adopt this policy at the January 18 meeting, but it can be a
first step towards identifying any potential adjustments prior to adoption at the February board meeting.
More specifically, the intent is as follows:
1. Simplify staff’s previous plan to set up a stand-alone WCI policy;
2. Preserve the Board’s established policy priorities and goals for the WCI;
3. Integrate the WCI into the Housing Funds Allocation Policy’s overall funding strategy and reporting
structure; and
4. Allow some of the WCI’s broader goals and activities, like reporting requirements and the forthcoming
Shared Equity Housing Program policy, to apply to the other three Housing Funds, as well.
5. Broaden the eligible uses of WCI funds to reflect the Board’s priority that they be used throughout the
Westside.
The other proposed revisions address broader aspects of the Housing Allocation Funds Policy, providing
additional definitions, references, and clarifications. A summary of proposed changes can be found on pages 2
and 3 of the transmittal.
Item Schedule:
Briefing: January 18, 2022
Set Date: n/a
Public Hearing: n/a
Potential Action: January 18, 2022
Page | 2
1
9
7
5
8
The Redevelopment Advisory Committee (RAC) was briefed on these proposed revisions in their January 5,
2022, meeting. RDA staff will present any feedback from RAC during the Board’s briefing on this topic.
Goal of the briefing: Discuss the proposed revisions to the Housing Funds Allocation Policy, identify any
edits needed and if no edits are desired, consider adopting the Resolution entitled Repealing and Replacing the
RDA Housing Funds Policy.
ADDITIONAL INFORMATION
1.RDA Community Engagement. As part of its Equity Framework and Project Area Implementation
Plans, RDA staff has been working on the process for increasing community engagement and
stakeholder participation.
2.Next Step. RDA staff anticipates presenting a “shared equity” model of development and financing to
the Board for approval as the next step to implement the Board’s priorities for the WCI.
POLICY QUESTIONS
1. Board Members may wish to discuss potential options to the specific wording proposed in the first of the
WCI Policy Priorities listed. As proposed, it reads:
“Address potential impacts from Inland Port development activities and
improve opportunity indicators within the westside.”
Some options could include explicit references to equity and historical practices that have disadvantaged
Westside residents.
2. The Board might wish to ask the Administration about progress in the broader efforts to establish and
measure City “opportunity indicators,” since these currently are not available at a city scale or on an annual
basis.
3.The Board may wish to inquire about the new RDA Data Manager position, whose role will be to establish an
internal data management plan, including the metrics for housing. This information is designed to be
incorporated into the Board’s annual Housing Development Funding Strategy to help inform priorities and
budget decisions.
4.The Reporting Requirements include a reference to “An accounting of programs and projects funded from
the Housing Funds over the last fiscal year […].” Many of the types of projects envisioned for the Housing
Funds would take several years to complete, and their impacts may not be perceptible in annual data. Would
the Board like to consider changes to this language to explicitly incorporate a cumulative accounting of
programs and projects as well?
ATTACHMENTS
Attachment C1. 2021 Resolution adopting RDA Housing Allocation Funds Policy
Attachment C2. Staff Report Westside Community Initiative
Attachment C3. RDA Transmittal Westside Community Initiative
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______________
RDA Housing Allocation Funds Policy
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF
SALT LAKE CITY ADOPTING A POLICY FOR THE ALLOCATION OF HOUSING FUNDS
WITH RESPECT TO DEDICATING AND DIRECTING RESOURCES FOR THE DEVELOPMENT
AND PRESERVATION OF HOUSING.
WHEREAS, Salt Lake City has an adopted housing plan that identifies housing needs,
priorities, and goals on a citywide basis (“Housing Plan”).
WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) has adopted project
area plans that identify housing needs, priorities, and goals on a project area basis (“Project Area
Plans”).
WHEREAS, the RDA supports the implementation of the Housing Plan and Project Area
Plans through various funding allocations that are utilized for the development and preservation of
housing.
WHEREAS, Utah Code Title 17C Community Reinvestment Agency Act (the “CRA Act”)
provides that a portion of tax increment is required to be allocated for housing and used for the
purposes described in Section 17C-1-412.
WHEREAS, the CRA Act provides that additional tax increment may be allocated on a
discretionary basis for housing and used for the purposes described in Section 17C-1-411.
WHEREAS, Utah Code Title 11-58 Utah Inland Port Authority Act (the “Inland Port Act”)
provides that a portion of tax differential generated within Inland Port Authority Jurisdictional Land
shall be paid to the RDA to be allocated for housing and used for the purposes described in Section
11-58-601(6)(b).
WHEREAS, the Salt Lake City Council and the RDA Board of Directors (“Board”) may
allocate other revenue sources, including but not limited to sales tax revenues, for the development
and preservation of housing.
WHEREAS, the Board desires to establish a policy with respect to dedicating and directing
resources for the development and preservation of housing.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
REDEVELOPMENT AGENCY OF SALT LAKE CITY, as follows:
1.Scope. The RDA Housing Allocation Policy (“Policy”) contains the processes and guidelines for
coordinating and allocating tax increment, tax differential, sales tax, and other revenues for the
development and preservation of housing.
2020-5566
R-4-2021
2.RDA Housing Funds. The RDA shall establish and maintain multiple housing funds based on
the fund source and separately account for the revenues, expenditures, interest, payments and
repayments for each fund source (collectively the “Housing Funds”). Maintaining separate
Housing Funds will allow the RDA to provide control and oversight to comply with the various
statutory requirements for each funding source and to allow for the prioritization within each
funding source for a specific purpose, need, or policy objective. The Housing Funds include:
a.Primary Housing Fund
i.Source of Funds: Tax increment required to be allocated for housing pursuant
to the CRA Act.
ii.Eligible Uses of Funds: Funds shall be utilized for the purposes described in
Section 17C-1-412 of the CRA Act.
iii.Policy Priorities: Funds shall be prioritized to address citywide housing goals
and objectives as identified in the Housing Plan.
b.Secondary Housing Fund
i.Source of Funds: Additional tax increment that may be allocated on a
discretionary basis for housing pursuant to the CRA Act.
ii.Eligible Uses of Funds: Funds shall be utilized for the purposes described in
Section 17C-1-411 of the CRA Act.
iii.Policy Priorities: Funds shall be prioritized to address the housing goals and
needs identified in Project Area Plans.
c.Northwest Quadrant Housing Fund
i.Source of Funds: A portion of the property tax differential collected by the
Inland Port Authority to be allocated to the RDA for affordable housing.
ii.Eligible Uses of Funds: Funds shall be utilized for the purposes described in
Section 11-58-601(6)(b) of the Inland Port Act.
iii.Policy Priorities: Funds shall be prioritized for the neighborhoods adjacent to
the Inland Port Jurisdictional Land (generally defined as neighborhoods west
of I-15) to 1) address and mitigate potential impacts from Inland Port
development activities and 2) improve opportunity indicators within these
neighborhoods.
d.Housing Development Fund
i.Source of Funds: Additional funds, including but not limited to sales tax
revenues, that may be allocated to or obtained by the RDA for the
development and preservation of housing.
ii.Eligible Uses of Funds: Activities to promote the development and
preservation of affordable and mixed-income housing, including costs
associated with site acquisition, site remediation, capital improvements, new
construction, and rehabilitation.
iii.Policy Priorities: Funds shall be prioritized to address the housing goals and
needs of identified in the Housing Plan.
3.Annual Budgeting Process. The following steps shall be utilized to budget Housing Funds on an
annual basis:
a.Funding Strategy: Prior to the annual budget process, the RDA shall annually present to
the Board a Housing Development Funding Strategy (“Funding Strategy”) that includes:
i.A projected amount of revenue to be allocated to the Housing Funds for the
upcoming fiscal year.
ii.Proposed funding allocations for housing activities (i.e. gap financing loans,
property acquisition, etc.) and funding priorities for the upcoming fiscal year.
Proposed funding allocations shall be targeted to address current needs,
leverage available opportunities, be coordinated with other City resources,
and align with the standards and priorities for the Housing Funds as
established in Section 2 herein.
b.Annual Budget Allocations: The Board shall consider the Funding Strategy as part of the
annual budget adoption process.
c.Implementation: Once budget allocations are finalized, the RDA will implement projects
and programs according to applicable RDA policies and procedures.
4.Reporting Requirements. The RDA shall provide a written briefing to the Board, within 60
days of the end of each fiscal year, which contains the following information:
a.The year-end balance of the Housing Funds.
b.An accounting of programs and projects funded from the Housing Funds over the last
fiscal year, including the following information itemized by project:
i.Project address
ii.Development partner
iii.Amount of Housing Funds committed
iv.Total project cost
v.The scope and status of improvements
vi.The total number of residential units with a corresponding accounting of
affordability levels by area median income (AMI).
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this _______ day
of ________________, 20__.
________________________________
Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Allison Parks
Date:____________________________
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
________________________________
Erin Mendenhall, Executive Director
Attest:
________________________
City Recorder
December 20, 2020
9thFebruary 21
Ana Valdemoros (May 17, 2021 13:31 MDT)
Erin Mendenhall (May 17, 2021 13:36 MDT)
4
Cindy Trishman (May 17, 2021 16:22 MDT)
RDA Resolution R-4-2021 (Housing Allocation
Funds Policy) adopted 2-9-21
Final Audit Report 2021-05-17
Created:2021-03-02
By:Kory Solorio (kory.solorio@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAAHe6z6wf-1vvCLLkAwG3dXBWbHwCPnGH3
"RDA Resolution R-4-2021 (Housing Allocation Funds Policy) ad
opted 2-9-21" History
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1
BOARD STAFF REPORT
THE REDEVELOPMENT AGENCY of SALT LAKE CITY
TO:RDA Board Members
FROM: Allison Rowland
Budget & Policy Analyst
DATE:September 14, 2021
RE: INFORMATIONAL: WESTSIDE COMMUNITY INITIATIVE
ISSUE AT-A-GLANCE
The Board agreed in May 2021 to use Inland Port Housing Funds specifically to promote Westside
homeownership and new opportunities for small businesses. In response, RDA staff has developed a proposal to
meet this goal, which it has tentatively named the Westside Community Initiative (WCI). For these purposes, the
Westside is defined as the City area west of I-15. The RDA proposal states that the program is intended to be
broader than a typical community land trust or cooperative housing development to allow it to carry out projects
in addition to housing, like infrastructure improvements, economic development, and redevelopment of
undesirable land uses, which are consistent with State statute. The long-term approach to development projects
would allow the RDA to balance the provision of public benefits with the generation of new revenue for
reinvestment on the Westside.
RDA staff has identified existing policies that would need to be updated or created to implement the program, a
list of proposed goals for it, and its primary activities. It also recommends a number of “next steps,” which
include revision of the RDA Housing Allocation Funds Policy, a new policy resolution to establish the program,
and a new policy to guide a proposed “shared equity housing development” program. A summary version of the
proposed WCI framework can be found on the final page of the transmittal.
Goal of the briefing: Review, discuss and provide direction to RDA staff on the proposed Westside
Community Initiative.
POLICY QUESTIONS
1. Is the Board comfortable with the purpose of the Initiative being defined as “building community
cohesion and personal wealth”?
Item Schedule:
Briefing: September 14, 2021
Set Date: n/a
Public Hearing: n/a
Potential Action: n/a
Page | 2
1
9
7
5
5
2. Does the Board wish to discuss or request clarification of any of the concepts or terms used in the Goals
section of the proposal? For example,
a. Community-defined purpose
b. Opportunities for revenue generation
c. Mitigating gentrification and displacement
d. Collective Impact Approach
3. The transmittal mentions that the RDA would identify and acquire outside funding and professional
resources for the WCI by bringing together other partners. The Board may wish to ask whether the
RDA staff anticipates the need for additional FTEs as a result of this program, and whether current staff
may need training in new areas to expand their own expertise.
4. The transmittal mentions (in the Strategic Acquisition section) that redeveloped properties would have
“profound impacts on people, particularly low-income and vulnerable populations, in order to uplift
others, create economic opportunities, improve health outcomes, and influence the physical and
socioeconomic landscape of Salt Lake City.” The Board may wish to consider whether this list might
prove useful for developing metrics to assess the program (for example, are reliable data readily
available to track these changes annually), and whether measurable progress in these areas is a
reasonable expectation for a real estate development project.
5. In the May 2021 RDA work session conversation, Board Members expressed interest specifically in
using Inland Port Housing Funds to promote Westside homeownership and new opportunities for small
businesses. The Board may wish to discuss whether this proposal satisfies those interests, or whether it
prefers that staff narrow the scope of allowed development.
SALT LAKE CITY CORPORATION
451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM
P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245
MAYOR ERIN MENDENHALL
Executive Director
DANNY WALZ
Director
REDEVELOPMENT AGENCY of SALT LAKE CITY
STAFF MEMO
DATE: August 26, 2021
PREPARED BY: Tammy Hunsaker
RE: Westside Community Initiative – Initial Briefing
REQUESTED ACTION: Briefing on the framework for a new program intended to utilize Inland
Port Housing Funds to advance development activities on the City’s
Westside.
POLICY ITEM: Affordable housing; 9 Line and North Temple project area
development.
BUDGET IMPACTS: Inland Port Housing Funds.
EXECUTIVE SUMMARY: Earlier this year, the Board of Directors of the Redevelopment Agency
of Salt Lake City (“RDA”) directed staff to develop a proposed program for the utilization of funds
received by the RDA from the Inland Port Authority. These funds are received pursuant to Utah
Code Title 11-58 Utah Inland Port Authority Act, which provides that a portion of tax differential
generated within Inland Port Authority Jurisdictional Land shall be paid to the RDA to be utilized for
housing. As such, RDA staff is working to develop a new program, tentatively called the Westside
Community Initiative (“WCI”). While the proposed WCI is based on community land trust and
cooperative-style housing development, it is broader in nature to carry out other project types for a
collective impact.
As proposed, the WCI shall facilitate the implementation of transformative housing and mixed-use
projects with a focus on affordable homeownership as a way of building community cohesion and
personal wealth. The geographic scope of the initiative is proposed to be the City’s Westside defined
as west of I-15. The RDA’s 9 Line and North Temple project areas are included in this larger
geographic area. Affordable and mixed-income housing projects will be leveraged with additional
public benefits including neighborhood services, economic opportunity, and transit-oriented
development. By taking a long-term approach to development projects, the WCI will balance the
implementation of public benefits with the ability to generate revenue to be reinvested back into the
community.
Inland Port Housing Funds are required to be utilized for the purposes outlined in Utah 17C -
Community Reinvestment Agency Act, section 17-C-1-412 – Use of Housing Allocation, which
generally limits eligible activities to the development and preservation of housing targeted to
households at or below 80% of the area median income (“AMI”). Under the statute, funds can be
utilized to implement mixed-income projects, mixed-use projects, and related improvements. As
such, funds can be leveraged as part of housing projects for a broad array of other public benefits,
including infrastructure improvements, economic development, sustainable building practices, and
the redevelopment of undesirable land uses. While the primary source of revenue for the initiative is
anticipated to be Inland Port Housing Funds, the Board would be able to allocate other revenue
sources to the WCI. In addition, the RDA would actively work to acquire outside funding sources
and resources to collaborate on projects and activities. This could broaden the eligible uses of
funding dedicated to the WCI.
This memorandum includes initial information on the proposed framework for the WCI , including
the budget and policy structure, goals, and activities. RDA staff will incorporate the Board’s
feedback as specific details of the initiative are developed for the Board’s consideration at a future
date.
ANALYSIS & ISSUES: Additional details on the proposed framework of the WCI are as follows:
I. Budget & Policy Structure: To implement the WCI, the following efforts would need to be
carried out by the Board:
1. Update the RDA Housing Allocation Funds Policy, resolution R-4-2021, to earmark
the Inland Port Housing Funds for the WCI and to allow for allocations from other
revenue sources. This would be a minor change to the existing policy.
2. Create a new policy for the WCI that establishes the purpose, goals, activities,
metrics, and reporting requirements for the initiative. If the Board is supportive, this
policy would be based on the information contained herein.
While the WCI policy would identify the purposes, goals, and activities of the initiative,
projects would be administered pursuant to existing RDA programs and tools. Additionally, a
new policy would be developed for a Shared Equity Development program. Programs and
tools the WCI would be administered pursuant to are as follows:
• RDA Loan Program Policy: Resolution R-37-2016
• Tax Increment Reimbursement Program Policy: Resolution R-9-2017
• RDA Real Property Disposition Policy: Resolution R-6-2021
• Housing Development Loan Program: Resolution R-7-2021
• Shared Equity Housing Program: Resolution Forthcoming
Refer to Attachment A for a chart depicting the proposed structure of the WCI.
II. Goals: The goals for the WCI are proposed as follows:
• Develop Land with a Long-Term Approach to Continuously Serve a Community-
Defined Purpose
WCI will take a long-term approach to land development and community building so that the
RDA may retain the fee ownership to and a reversionary interest in the property. By ground
leasing to development partners, the RDA will provide an opportunity to receive revenue
generation to serve other public benefits.
• Create Opportunities for Revenue Generation while Balancing the Implementation of
Public Benefits
WCI will strive to balance the development of property with the incorporation of public
benefits. Benefits such as affordable housing and below-market commercial space which
generate limited or no cash flow would potentially be subsidized with land uses that generate
positive cash flow. Revenue generated by projects and received by the RDA will then be
reinvested back into the WCI with the goal of furthering shared prosperity.
• Assist the Westside in Mitigating Gentrification and Displacement
WCI will acquire land with the goal of holding it for the community in perpetuity, thereby
removing land from the speculative market so that it serves low and moderate -income
residents in perpetuity. Housing will remain affordable even as neighborhood change occurs
and gentrification pressures mount, which protects families from displacement.
• Give Lower Income Households the Opportunity to Build Wealth Through Ownership
WCI will create opportunities for families to buy homes at affordable prices by focusing on a
shared-equity model. A shared equity model offers an alternative form of ownership that
provides benefits traditional markets cannot, such as long-term housing affordability and the
ability for low and moderate-income families to build equity. When families decide to sell,
they will receive their portion of the appreciation but the RDA remains as the land owner and
is in the position to continue to sell the home at a below-market price, making it affordable to
another family of limited means. Keeping the home affordable, from family to family, will
benefit future generations by acting as a steppingstone for low-income families to go from
renting to building wealth.
• Engage Community Members in Development Decisions
The RDA will involve the community in the planning and goals regarding long term land use
and housing development. This can translate into residents actively involved in creating
positive change within their communities and projects that reflect the value of its residents.
The result will be projects that incorporate a shared mission and vision with the community.
• Leverage Resources for Other Neighborhood Development Purposes
Revenues acquired through ground leases or partnerships could contribute to other purposes,
including subsidizing deeply affordable housing, below-market commercial space,
infrastructure, public art, etc.
• Collaborate with Other Partners to Broaden the Pool of Funding and Expertise
The RDA would actively work to acquire outside funding sources and professional resources
by bringing together financial institutions, the private sector, nonprofits, public officials,
other government agencies, researchers, and practitioners to collaborate on community and
economic development activities.
• Carry Out Efforts with a “Collective Impact” Approach
The RDA will continuously evaluate how projects work together to address common goals
through a “collective impact” approach that produces measurable results. These measurable
results will be tracked and reported on to promote data-driven and outcome-based decisions.
III. Activities: The activities of the WCI are proposed as follows:
• Strategic Acquisitions
Strategic property acquisitions that may include distressed properties characterized by high
crime rates, properties that are located at target locations, and other opportunities that align
with the City’s objectives and meet predefined policy priorities. Properties will be
redeveloped as elevated real estate development projects that have profound impacts on
people, particularly low-income and vulnerable populations, in order to uplift others, create
economic opportunities, improve health outcomes, and influence the physical and
socioeconomic landscape of Salt Lake City.
• Shared Equity Models of Development
o Land Trust Development
The RDA will retain ownership of land and provide for the sale or rental of housing
to lower-income households. To make certain would-be homeowners and renters
benefit from the arrangement for years to come, the resale prices and rents of the
housing will be capped, maintaining affordability for the next family.
o Multifamily Cooperative Housing Development
The RDA will facilitate the development of cooperative housing projects to provide a
framework for homeownership by bringing people together to own the building in
which they live. A housing cooperative or "co-op" is a type of residential housing
option that is a corporation whereby the owners do not own their units outright.
Instead, each resident is a shareholder in the corporation based in part on the relative
size of the unit that they live in. The co-op housing model provides low-income
households with a way to accumulate personal wealth, through equity accumulation
and mortgage interest deductions.
• Residential and Mixed-Use Rental Housing Development
The RDA will facilitate the development of rental mixed-income and mixed-use projects that
are part of a larger coordinated effort to co-locate housing with the services and resources to
increase a person’s likelihood for upward mobility.
• Other Public Benefits
While it is anticipated that the WCI will focus on affordable housing due to certain funding
source restrictions, there is opportunity to leverage housing projects with broader public
benefits. Furthermore, there is opportunity to broaden the WCI’s funding sources, with both
internal and external sources, to expand the eligible activities funded through the WCI. Other
public benefits could include infrastructure improvements (both street and green
infrastructure), housing for a broad array of AMIs, job creation, small-business development,
street activation, publicly visible art, historic preservation, adaptive reuse, neighborhood
services, among others.
IV. Next Steps
RDA staff will incorporate the Board’s feedback on the information contained herein and
will return to the Board with the following:
1. Revisions to the RDA Housing Allocation Funds Policy, resolution R-4-2021, to
earmark Inland Port Funds for the WCI. The policy will also be revised to allow for
allocations of other sources of revenue to the initiative.
2. A new policy resolution for the WCI that establishes the purpose, goals, activities,
metrics, and reporting requirements for the initiative.
3. A new policy for a Shared Equity Housing Development program that provides for
homeownership by bringing people together to own the building in which they live
while the land is owned by the RDA, or another entity, to preserve affordability in
perpetuity.
PREVIOUS BOARD ACTION:
• May 2021 – The RDA Board directed RDA staff to develop a proposed program for a
community land trust type program for the City’s Westside that utilizes Inland Port funds.
ATTACHMENTS:
• A – Westside Community Initiative: Proposed Framework Chart
WESTSIDE COMMUNITY INITIATIVE (WCI)
PROPOSED FRAMEWORK
Note: The Initiative’s activities shall be administered pursuant to the following policies:
RDA Loan Program Policy: Resolution R-37-2016
Tax Increment Reimbursement Program Policy: Resolution R-9-2017
RDA Real Property Disposition Policy: Resolution R-6-2021
Housing Development Loan Program: Resolution R-7-2021
Shared Equity Housing Program: Resolution Forthcoming
• Develop Land with a Long-Term Approach to Continuously Serve a Community-Defined Purpose
• Create Opportunities for Revenue Generation while Balancing the Implementation of Public Benefits
• Assist the Westside in Mitigating Gentrification and Displacement
• Give Lower Income Households the Opportunity to Build Wealth Through Ownership
• Engage Community Members in Development Decisions
• Leverage Resources for Other Neighborhood Development Purposes
• Collaborate with Other Partners to Broaden the Pool of Funding and Expertise
• Carry Out Efforts with a “Collective Impact” Approach
GOALS
PURPOSE
The implementation of transformative housing and mixed-use projects with a focus
on homeownership and affordability as a way of building community cohesion and personal wealth.
Housing projects will be leveraged with additional public benets including
neighborhood services, economic opportunities, and transit-oriented development.
A Westside Community Initiative policy will be created that identies the purpose, goals, and activities of the initiative.
Projects will align with the intent of the WCI and will be administered through RDA programs and polices.
INLAND PORT
HOUSING
DIFFERENTIAL
OTHER
SOURCES
ALLOCATED BY
BOARD
WCI
REVENUE
WCI
HOUSING
FUND
FUNDING SOURCES
(revenues)
ACTIVITIES
(expenses)
STRATEGIC
ACQUISITION
SHARED
EQUITY
DEVELOPMENT
OTHER
PUBLIC
BENEFITS
RESIDENTIAL
&
MIXED-USE
DEVELOPMENT
Note: The RDA Housing Allocation Funds
policy, resolution R-4-2021, will be updated
to provide for the earmarking of Inland Port
Housing Funds, WCI revenue, and other funds
as determined by the BOD for the WCI. As the
Policy currently stands, there is a NWQ Housing
Fund that receives Inland Port Housing revenue.
This fund would be renamed to the WCI Housing
Fund.
REDEVELOPMENT AGENCY of SALT LAKE CITY
SALT LAKE CITY CORPORATION
451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM
P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245
MAYOR ERIN MENDENHALL
Executive Director
DANNY WALZ
Director
STAFF MEMO
DATE: January 21, 2022
PREPARED BY: Danny Walz
RE: Proposed Revisions to the Agency’s Housing Allocation Funds Policy
REQUESTED ACTION: Consideration of a resolution repealing and replacing the RDA
Housing Allocation Funds Policy
POLICY ITEM: RDA Housing Allocation Funds Policy, Resolution No. R-4-2021
BUDGET IMPACTS: Not applicable
EXECUTIVE SUMMARY: Agency staff requests the Board of Directors (“Board”)
consideration of a resolution that would repeal and replace the Housing Allocation Funds policy,
which establishes the guidelines for allocating and directing resources for the development and
preservation of housing. Staff presented the revised policy to the Board in January 2022 which
incorporated the priorities for the proposed Westside Community Initiative (“WCI”) into the
Housing Allocation Funds policy along with other amendments that address broader housing
goals and activities.
REDEVELOPMENT ADVISORY COMMITTEE RECOMMENDATION: Staff presented
the proposed revisions to the Housing Allocation Funds policy to the Redevelopment Advisory
Committee (RAC) on January 5, 2022. RAC forwarded a positive recommendation to approve
the policy with no revisions.
ANALYSIS & ISSUES: On February 9, 2021, the Board of Directors adopted the RDA
Housing Allocation Funds policy. The policy provides for the establishment of four housing
funds based on the fund source and allows for the prioritization of a specific purpose, need or
policy objective within each fund. The revenues, expenditures, interest, payments and repayments
for each fund are accounted for separately in order to provide oversight to comply with the various
statutory requirements. The policy also provides that on an annual basis, the RDA shall present a
Housing Development Funding Strategy for the Board’s consideration that projects revenues for the
upcoming fiscal year and proposes funding priorities and allocations. This annual report is also
2
intended to include a summary on housing expenditures, projects, and outcomes. The current policy
is included as Attachment A of the proposed resolution.
In September, 2021, staff briefed the Board on the proposed framework for the WCI. This initial
briefing was in response to the Board’s direction to develop a community land trust type
program for the utilization of funds received by the RDA from the Inland Port Authority. To
implement the WCI, it was intended that a separate policy would be created to establish the
specific purpose, goals, activities and reporting requirements for the initiative. It was also
anticipated that the RDA Housing Allocation Funds Policy would be updated to specifically
earmark the Inland Port Housing Funds for the WCI, along with allocations from other revenue
sources. Instead, staff is proposing an amended Housing Allocation Funds Policy that
incorporates the specific priorities for the initiative while integrating it into the overall funding
strategy and reporting structure provided for in policy. Incorporating the WCI into Housing
Allocation Funds Policy allows for some of the broader housing goals and activities, such as the
reporting requirements and the forthcoming Shared Equity Housing Program, to apply to the
other existing housing funds.
Following is a summary of the revisions included in the updated Housing Allocation Funds
Policy along with a description of the specific priorities for the WCI. The redlined changes to
the 2021 policy are included as Attachment B of the proposed resolution.
Proposed revisions to the policy Scope (Section 1): The Scope section has been renamed
to “Purpose” to expand its impact. The description now contains an additional statement
on leveraging resources to incorporate a high level of public benefits to further align with
the Agency’s Guiding Framework and Mission.
Proposed revisions to the housing funds descriptions (Section 2): The descriptions for
the three housing funds, excluding the WCI, now include definitions and references to
State statute, the City’s Housing Plan and the RDA Project Area Plans that were
previously in the recitals.
Proposed revisions to housing activities (Sections 2.d.ii & 3.a.ii): Within the housing
funds description as well as the Funding Strategy section, the referenced housing
activities have been revised to provide general examples rather than a detailed list of
eligible activities. The reasoning is that Agency housing activities are already authorized
and defined within State statute.
Proposed revisions to reporting requirements (Section 4): The written briefing and
associated information have been incorporated within the annual Funding Strategy rather
than a separate report. This allows the previous year’s funding, activities and metrics to
be included along with the priorities and overall strategy for the proposed budget.
Proposed revisions to Northwest Quadrant Housing Fund (Section 2.c): The fund has
been renamed the Westside Community Initiative Fund. It earmarks the Inland Port
Housing funds, along with any revenue from projects, to the City’s westside. The specific
policy priorities for the WCI are as follows:
3
• Address the potential impacts from Inland Port development activities and
improve opportunity indicators within the westside
It is the intent to utilize the Inland Port Housing Funds to build community
wealth, promote affordable homeownership, and expand opportunity throughout
the City’s westside. The RDA will carry out efforts with a collective impact
approach and measurable results.
• Develop and allow for the RDA to maintain ownership of land to ensure
long-term, community serving uses
The WCI will take a long-term approach to land development and community
building by retaining the fee ownership to land and providing opportunities to
receive revenue generation to serve other public benefits.
• Create opportunities for revenue generation that can be reinvested back into
the community while balancing the incorporation of public benefits and
other neighborhood development purposes
The WCI will strive to balance the development of property with the
incorporation of public benefits. Benefits such as affordable housing and below-
market commercial space which generate limited, or no cash flow would
potentially be subsidized with land uses that generate positive cash flow.
Revenue generated by projects will then be reinvested back into the WCI with the
goal of furthering shared prosperity.
• Mitigate gentrification and displacement on the westside
WCI will acquire land with the goal of holding it for the community, thereby
removing land from the speculative market so that it serves low and moderate-
income residents in perpetuity. Housing will remain affordable even as
neighborhood change occurs and gentrification pressures mount, which may
protect families from displacement.
• Give lower income households the opportunity to build wealth through
homeownership and shared equity models of development
WCI will create opportunities for families to buy homes at affordable prices by
focusing on a shared-equity model. A shared-equity model offers an alternative
form of ownership that provides benefits traditional markets cannot, such as long-
term housing affordability and the ability for low and moderate-income families
to go from renting to building wealth.
• Facilitate the implementation of transformative housing and mixed-use
rental housing development projects
Under the statute, funds can be utilized to implement mixed-income projects,
mixed-use projects and related improvements. As such, the WCI will leverage
funds as part of housing projects for a broader array of other public benefits,
including infrastructure improvements, economic opportunity, sustainable
building practices and the redevelopment of undesirable land uses.
4
Staff presented the revised policy to the Board in January 2022 for consideration and discussion.
Board members expressed interest in determining to what extent the availability of future
affordable units could be prioritized to residents of the west side as well as City first responders.
The Board also discussed the availability and collection of data on the existing housing stock and
utilizing the information to help inform future decisions. As future annual strategies are
presented, staff will endeavor to incorporate these priorities into the proposed funding
allocations.
PREVIOUS BOARD ACTION:
• The Board adopted Resolution No. R-04-2021, RDA Housing Allocation
Funds Policy, February 9, 2021.
• May 2021 – The Board directed RDA staff to develop a proposed program for
a community land trust type program for the City’s westside that utilizes
Inland Port Housing Funds.
• September 2021 – RDA Staff briefed the Board on the proposed framework
for the Westside Community Initiative.
• January 2022 – RDA staff presented a revised RDA Housing Allocation
Funds Policy incorporating priorities for the proposed Westside Community
Initiative along with other amendments that address broader housing goals and
activities.
ATTACHMENTS:
A. Resolution
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______________
Repealing and Replacing the Housing Allocation Funds Policy
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF
SALT LAKE CITY REPEALING AND REPLACING THE RDA HOUSING FUNDS POLICY
WHEREAS, on February 9, 2021, pursuant to Resolution No. R-04-2021, the Board of
Directors of the Redevelopment Agency of Salt Lake City (“Board”) passed the Housing Allocation
Funds Policy (“2021 Policy”, attached to this resolution as Attachment A for reference), which
established a policy dedicating and directing resources for the development and preservation of
housing.
WHEREAS, the 2021 Policy established four different housing funds, including the
Northwest Quadrant Housing Fund, which dedicated housing funds received pursuant to Section 11-
58-601(6)(b) of the Utah Inland Port Authority Act (“Inland Port Housing Funds”) to
neighborhoods adjacent to the proposed location of the Inland Port.
WHEREAS, the Board now desires to repeal and replace the 2021 Policy in order to clarify
the terms of the policy and replace the Northwest Quadrant Housing Fund with a new housing fund
entitled the Westside Community Initiative Fund in order to better direct housing funds to the City’s
westside (the redline version of the 2021 Policy is attached to this resolution as Attachment B for
reference).
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
REDEVELOPMENT AGENCY OF SALT LAKE CITY, the Housing Allocation Funds Policy
adopted pursuant to Resolution No. R-4-2021 is repealed in its entirety and replaced with the f ollowing:
1. Purpose. The purpose of the RDA Housing Allocation Funds Policy (“Policy”) is to establish the
processes and guidelines for coordinating and allocating tax increment, tax differential, sales tax,
and other revenues for the development and preservation of housing. The RDA will leverage
resources and collaborate with public and private partners to incorporate a high level of public
benefits within housing developments and broaden the pool of available housing funds and
expertise.
2. RDA Housing Funds. The RDA shall establish and maintain multiple housing funds based on
the fund source and separately account for the revenues, expenditures, interest, payments and
repayments for each fund source (collectively the “Housing Funds”). Maintaining separate
Housing Funds will allow the RDA to provide control and oversight to comply with the various
statutory requirements for each funding source and to allow for the prioritization within each
funding source for a specific purpose, need, or policy objective. The Housing Funds include:
a. Primary Housing Fund
i. Source of Funds: Tax increment required to be allocated for housing pursuant
to the Utah Code Title 17C Community Reinvestment Agency Act (the
“CRA Act”).
ii. Eligible Uses of Funds: Funds shall be utilized for the purposes described in
Section 17C-1-412 of the CRA Act.
iii. Policy Priorities: Funds shall be prioritized to address citywide housing goals
and objectives as identified in the City’s housing plan identifying needs,
priorities and goals on a citywide basis (“Housing Plan”) and the adopted
project area plans identifying housing needs, priorities, and goals on a project
area basis (“Project Area Plans”).
b. Secondary Housing Fund
i. Source of Funds: Additional tax increment that may be allocated on a
discretionary basis for housing pursuant to the CRA Act.
ii. Eligible Uses of Funds: Funds shall be utilized for the purposes described in
Section 17C-1-411 of the CRA Act.
iii. Policy Priorities: Funds shall be prioritized to address the housing goals and
needs identified in Project Area Plans.
c. Westside Community Initiative Fund ("WCI")
i. Source of Funds: Inland Port Housing Funds and additional funds including
revenue generated by projects.
ii. Eligible Uses of Funds: Funds shall be utilized for the purposes described in
Section 11-58-601(6)(b) of the Inland Port Act and allocated for projects on
the City’s westside defined as municipal boundaries west of I-15.
iii. Policy Priorities: Funds shall be prioritized to:
1. Address the potential impacts from Inland Port development activities
and improve opportunity indicators within the westside.
2. Develop and allow for the RDA to maintain ownership of land to
ensure long-term, community serving uses.
3. Create opportunities for revenue generation that can be reinvested
back into the community while balancing the incorporation of public
benefits and other neighborhood development purposes.
4. Mitigate gentrification and displacement on the westside.
5. Give lower income households the opportunity to build wealth
through homeownership and shared equity models of development.
6. Facilitate the implementation of transformative housing and mixed-
use rental housing development projects.
d. Housing Development Fund
i. Source of Funds: Additional funds, including but not limited to sales tax
revenues, that may be allocated to or obtained by the RDA for the
development and preservation of housing.
ii. Eligible Uses of Funds: Funds shall be utilized to promote the development
and preservation of affordable and mixed-income housing.
iii. Policy Priorities: Funds shall be prioritized to address the housing goals and
needs of identified in the Housing Plan and Project Area Plans.
3. Annual Budgeting Process. The following steps shall be utilized to budget Housing Funds on an
annual basis:
a. Funding Strategy: Prior to the annual budget process, the RDA shall annually present to
the Board a Housing Development Funding Strategy (“Funding Strategy”) that includes:
i. A projected amount of revenue to be allocated to the Housing Funds for the
upcoming fiscal year.
ii. Proposed funding allocations for housing activities (i.e. gap financing loans,
property acquisition, shared equity financing, development or site costs, etc.)
and funding priorities for the upcoming fiscal year. Proposed funding
allocations shall be targeted to address current needs, leverage available
opportunities, be coordinated with other City resources, and align with the
standards and priorities for the Housing Funds as established in Section 2
herein.
b. Annual Budget Allocations: The Board shall consider the Funding Strategy as part of the
annual budget adoption process.
c. Implementation: Once budget allocations are finalized, the RDA will implement projects
and programs according to applicable RDA policies and procedures.
4. Reporting Requirements. The RDA intends to carry out these housing efforts with a collective
impact that produces measurable results. As part of the Funding Strategy, the RDA shall provide
a written briefing to the Board which contains the following information:
a. The year-end balance of the Housing Funds.
b. An accounting of programs and projects funded from the Housing Funds over the last
fiscal year, including the following information itemized by project:
i. Project address
ii. Development partner
iii. Amount of Housing Funds committed
iv. Total project cost
v. The scope and status of improvements
vi. The total number of residential units with a corresponding accounting of
affordability levels by area median income (AMI).
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this _______ day
of , 2022.
________________________________
Chair
Approved as to form: _ _________________________________
Salt Lake City Attorney’s Office
Allison Parks
Date:____________________________
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Attest:
________________________
City Recorder
January 3, 2022
December 20, 2020
Attachment B
Redline Changes to the 2021 Policy
1. ScopePurpose. The purpose of the RDA Housing Allocation Funds Policy (“Policy”) containsis
to establish the processes and guidelines for coordinating and allocating tax increment, tax
differential, sales tax, and other revenues for the development and preservation of housing. The
RDA will leverage resources and collaborate with public and private partners to incorporate a
high level of public benefits within housing developments and broaden the pool of available
housing funds and expertise.
2. RDA Housing Funds. The RDA shall establish and maintain multiple housing funds based on
the fund source and separately account for the revenues, expenditures, interest, payments and
repayments for each fund source (collectively the “Housing Funds”). Maintaining separate
Housing Funds will allow the RDA to provide control and oversight to comply with the various
statutory requirements for each funding source and to allow for the prioritization within each
funding source for a specific purpose, need, or policy objective. The Housing Funds include:
a. Primary Housing Fund
i. Source of Funds: Tax increment required to be allocated for housing pursuant
to the CRA Act. Utah Code Title 17C Community Reinvestment Agency Act
(the “CRA Act”).
ii. Eligible Uses of Funds: Funds shall be utilized for the purposes described in
Section 17C-1-412 of the CRA Act.
iii. Policy Priorities: Funds shall be prioritized to address citywide housing goals
and objectives as identified in the Housing Plan.City’s housing plan
identifying needs, priorities and goals on a citywide basis (“Housing Plan”)
and the adopted project area plans identifying housing needs, priorities, and
goals on a project area basis (“Project Area Plans”).
b. Secondary Housing Fund
i. Source of Funds: Additional tax increment that may be allocated on a
discretionary basis for housing pursuant to the CRA Act.
ii. Eligible Uses of Funds: Funds shall be utilized for the purposes described in
Section 17C-1-411 of the CRA Act.
iii. Policy Priorities: Funds shall be prioritized to address the housing goals and
needs identified in Project Area Plans.
c. Northwest Quadrant Housing Fund
c. Westside Community Initiative Fund ("WCI")
i. Source of Funds: A portion of the property tax differential collected by the
Inland Port Authority to be allocated to the RDA for affordable
housing.Housing Funds and additional funds including revenue generated by
projects.
ii. Eligible Uses of Funds: Funds shall be utilized for the purposes described in
Section 11-58-601(6)(b) of the Inland Port Act. and allocated for projects on
the City’s westside defined as municipal boundaries west of I-15.
iii. Policy Priorities: Funds shall be prioritized for the neighborhoods adjacent to
the Inland Port Jurisdictional Land (generally defined as neighborhoods west
of I-15) to 1) address and mitigateto:
1. Address the potential impacts from Inland Port development activities
and 2) improve opportunity indicators within these neighborhoods.
the westside.
2. Develop and allow for the RDA to maintain ownership of land to
ensure long-term, community serving uses.
3. Create opportunities for revenue generation that can be reinvested
back into the community while balancing the incorporation of public
benefits and other neighborhood development purposes.
4. Mitigate gentrification and displacement on the westside.
5. Give lower income households the opportunity to build wealth
through homeownership and shared equity models of development.
6. Facilitate the implementation of transformative housing and mixed-
use rental housing development projects.
d. Housing Development Fund
i. Source of Funds: Additional funds, including but not limited to sales tax
revenues, that may be allocated to or obtained by the RDA for the
development and preservation of housing.
ii. Eligible Uses of Funds: ActivitiesFunds shall be utilized to promote the
development and preservation of affordable and mixed-income housing,
including costs associated with site acquisition, site remediation, ca pital
improvements, new construction, and rehabilitation.
iii. Policy Priorities: Funds shall be prioritized to address the housing goals and
needs of identified in the Housing Plan and Project Area Plans.
3. Annual Budgeting Process. The following steps shall be utilized to budget Housing Funds
on an annual basis:
a. Funding Strategy: Prior to the annual budget process, the RDA shall annually present to
the Board a Housing Development Funding Strategy (“Funding Strategy”) that includes:
i. A projected amount of revenue to be allocated to the Housing Funds for the
upcoming fiscal year.
ii. Proposed funding allocations for housing activities (i.e. gap financing loans,
property acquisition, etc.)shared equity financing, development or site costs,
etc.) and funding priorities for the upcoming fiscal year. Proposed funding
allocations shall be targeted to address current needs, leverage available
opportunities, be coordinated with other City resources, and align with the
standards and priorities for the Housing Funds as established in Section 2
herein.
b. Annual Budget Allocations: The Board shall consider the Funding Strategy as part of the
annual budget adoption process.
c. Implementation: Once budget allocations are finalized, the RDA will implement projects
and programs according to applicable RDA policies and procedures.
4. Reporting Requirements. The RDA intends to carry out these housing efforts with a
collective impact that produces measurable results. As part of the Funding Strategy, the
RDA shall provide a written briefing to the Board, within 60 days of the end of each fiscal
year, which contains the following information:
a. The year-end balance of the Housing Funds.
b. An accounting of programs and projects funded from the Housing Funds over the last
fiscal year, including the following information itemized by project:
i. Project address
ii. Development partner
iii. Amount of Housing Funds committed
iv. Total project cost
v. The scope and status of improvements
vi. The total number of residential units with a corresponding accounting of
affordability levels by area median income (AMI).
REDEVELOPMENT AGENCY OF SLC
HOUSING ALLOCATION FUNDS POLICY
WESTSIDE COMMUNITY INITIATIVE
BOARD MEETING –FEBRUARY 8, 2022
•The Board of Directors of the Redevelopment Agency directed staff to develop a proposed
program to utilize funds received from the Inland Port Authority.
•Funds are received pursuant to Utah Code Title 11-58 Utah Inland Port Authority Act, which
provides that a portion of tax differential generated within the Inland Port Authority jurisdictional
land be paid to the RDA to be utilized for housing.
•Staff first presented new program, the Westside Community Initiative (“WCI”), in September to the
RAC and Board.
•The amended policy was presented to the RAC on January 5th and received a positive
recommendation for approval with no comments.
•Staff presented the amended Housing Allocation Funds Policy to the Board on January 18th for
discussion.
BACKGROUND
WCI –DIRECTION
•Community Land Trust model –RDA as long-term landowner
•Focus on westside –West of I-15
•Perpetual housing affordability –Ownership and Rental; priority on ownership
•Additional opportunities for community –Economic development, small businesses, non-
profits
•Mixed Use Developments –Market rate units/sf to subsidize affordable
•Reuse revenue and continue to grow fund
•Metrics –Demonstrate funds being used to accomplish State and City goals
HOUSING ALLOCATION FUNDS POLICY
•Adopted by the Board in February of 2021
•Establishes guidelines for allocating and directing resources for the development and preservation
of housing
•Created four housing funds based on fund source with associated purpose, requirements and
priorities for each
•Primary Housing Fund
•Secondary Housing Fund
•Northwest Quadrant Housing Fund
•Housing Development Fund
•Includes presentation of annual Housing Development Funding Strategy to Board that projects
revenues and proposes funding priorities and allocations for upcoming fiscal year.
PROPOSED REVISIONS
•Housing activities (Sections 2.d.ii & 3.a.ii): Within the housing funds description as well as the
Funding Strategy section, the referenced housing activities have been revised to provide general
examples rather than a detailed list of eligible activities. The reasoning is that Agency housing
activities are already authorized and defined within State statute.
•Reporting requirements (Section 4): The written briefing and associated information have been
incorporated within the annual Funding Strategy rather than a separate report. This allows the
previous year’s funding, activities and metrics to be included along with the priorities and overall
strategy for the proposed budget.
WCI –PRIORITIES
Address the potential impacts from Inland Port development activities and improve
opportunity indicators within the westside
It is the intent to utilize the Inland Port Housing Funds to build community wealth, promote
affordable homeownership, and expand opportunity throughout the City’s westside. The
RDA will carry out efforts with a collective impact approach and measurable results.
Develop and allow for the RDA to maintain ownership of land to ensure long-term,
community serving uses
The WCI will take a long-term approach to land development and community building by
retaining the fee ownership to land and providing opportunities to receive revenue generation
to serve other public benefits.
WCI –PRIORITIES
Create opportunities for revenue generation that can be reinvested back into the
community while balancing the incorporation of public benefits and other
neighborhood development purposes
The WCI will strive to balance the development of property with the incorporation of public
benefits. Benefits such as affordable housing and below market commercial space which
generate limited, or no cash flow would potentially be subsidized with land uses that
generate positive cash flow. Revenue generated by projects will then be reinvested back into
the WCI with the goal of furthering shared prosperity.
Mitigate gentrification and displacement on the westside
WCI will acquire land with the goal of holding it for the community, thereby removing land
from the speculative market so that it serves low-and moderate-income residents in
perpetuity. Housing will remain affordable even as neighborhood change occurs and
gentrification pressures mount, which may protect families from displacement.
WCI –PRIORITIES
Give lower income households the opportunity to build wealth through homeownership
and shared equity models of development
WCI will create opportunities for families to buy homes at affordable prices by focusing on a
shared-equity model. A shared-equity model offers an alternative form of ownership that
provides benefits traditional markets cannot, such as long-term housing affordability and the
ability for low-and moderate-income families to go from renting to building wealth.
Facilitate the implementation of transformative housing and mixed-use rental housing
development projects
Under the statute, funds can be utilized to implement mixed-income projects, mixed-use
projects and related improvements. As such, the WCI will leverage funds as part of housing
projects for a broader array of other public benefits, including infrastructure improvements,
economic opportunity, sustainable building practices and the redevelopment of undesirable
land uses.
NEXT STEPS
•January 2022: Board reviews draft policy and provides feedback
•March 2022: Board considers the policy for adoption
•Q3 2022 (Tentative): Staff proposes structure for shared equity models of development
QUESTIONS?
1
BOARD STAFF REPORT
THE REDEVELOPMENT AGENCY of SALT LAKE CITY
TO:RDA Board Members
FROM:Allison Rowland
Budget & Policy Analyst
DATE:February 8, 2022
RE: RESOLUTION: AMENDMENTS TO THE HOUSING DEVELOPMENT LOAN PROGRAM
ISSUE AT-A-GLANCE
Last December, the Board requested clarification on how the RDA staff determines which housing projects to
recommend for Emergency Gap Funding through the Housing Development Loan Program (HDLP). The Board
allocated nearly $2 million to this type of funding in 2021. RDA staff has proposed a set of uniform standards to
be included in the existing HDLP policy resolution; these would evaluate Emergency Gap Funding applicants on
a rolling basis according to specific criteria (see below) to determine eligibility and ensure the funds are used as
intended. Staff also has proposed clarifying that the RDA Finance Committee would be the body charged with
analyzing and ranking applications for all HDLP funding requests, including but not limited to emergency gap
funding.
The RAC (Redevelopment Advisory Committee) met on February 2 to discuss these proposals, and RDA staff
will discuss their recommendations with the Board during the February 8 meeting.
Goal of the briefing: Discuss the proposed amendments to the Housing Development Loan Program, identify
any edits needed, and consider adopting the resolution transmitted.
ADDITIONAL INFORMATION
A.Proposed Evaluation Standards for Emergency Gap Funding. The specific criteria to determine
project eligibility and ensure that Emergency Gap Funds are used as intended are that the applicant(s)
would:
1. Be ready to break ground on the project within six months;
2. Have secured financial commitments from funding sources for at least 90% of total project costs;
3. Submit a funding gap analysis detailing the cause of the gap and providing supporting documents.
B.Role of the RDA Finance Committee. In the existing resolution “a general review committee comprised
of professionals” is listed as the body that would analyze and rank applications for HDLP funding as the
Item Schedule:
Briefing: February 8, 2022
Set Date: n/a
Public Hearing: n/a
Potential Action: February 8, 2022
Page | 2
basis for recommendations to the RDA Board. In its place, the proposed amendment would designate the
RDA Finance Committee as the official review body for all applications for HDLP funding, including
competitive and open-ended NOFAs, like the emergency gap funds.
The intention is to streamline and simplify the HDLP funding review process since “the Finance Committee
meets monthly and is charged with providing recommendations for requests related to items such as loans,
tax increment reimbursements and land write downs.” This also differentiates it from the Redevelopment
Advisory Committee (RAC), which provides recommendations on RDA policy, rather than evaluating
funding requests. Final approval for any funds is a Board prerogative.
RDA policy states that two RAC members serve on the Finance Committee along with Salt Lake City
representatives. Typically, RDA staff includes the following in Finance Committee meetings: RDA Director
(or designee); the Director of Economic Development (or designee); the Director of Finance (or designee);
the Director of CAN (or designee); and the Director of Housing Stability (or designee). This conforms with
the description of the “general review committee” in the existing resolution which states that members
should have “experience relevant to the affordable housing industry, and may be comprised of RDA/City
staff, finance professionals, affordable housing experts, and/or real estate development professionals.” See
Policy Question below.
POLICY QUESTION
Would Board Members like to discuss whether to adjust the membership of the RDA Finance
Committee?
SALT LAKE CITY CORPORATION
451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM
P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245
MAYOR ERIN MENDENHALL
Executive Director
DANNY WALZ
Director
REDEVELOPMENT AGENCY of SALT LAKE CITY
STAFF MEMO
DATE: January 21, 2022
PREPARED BY: Tracy Tran and Lauren Parisi, RDA Project Managers
RE: Consideration and Adoption of a Resolution Approving an Amendment to the
Housing Development Loan Program (HDLP) Adding Emergency Gap
Financing Standards and directing application reviews to the Finance
Committee
REQUESTED ACTION: Consider adopting an amendment to the Housing Development Loan
Program Policy to add standards for the distribution of Emergency Gap
Financing Funds and directing application reviews to the RDA Finance
Committee.
POLICY ITEM: Affordable housing.
BUDGET IMPACTS: n/a
EXECUTIVE SUMMARY: As part of the discussion from the Housing Development Loan
Program funding allocations item at the December 9, 2021 Salt Lake City Redevelopment Agency
(“RDA”) Board of Directors (“Board”) Meeting, the Board and RDA staff discussed the RDA’s
emergency housing funds and how we determine and assess whether a project is in need of
emergency funds. RDA staff has returned with proposed emergency gap financing standards to
include as an amendment within the Housing Development Loan Program (“HDLP”) Policy to
ensure these funding requests are reviewed in a consistent matter.
The HDLP is being administered pursuant to the Housing Allocation Funds Policy (“Funds Policy”),
resolution R-4- 2021, and the HDLP Policy, resolution R-7-2021. The Funds Policy establishes
policies for allocating and directing resources for the development and preservation of housing by
various funding sources. Highlights of the Funds Policy include:
• Housing Funds: The Policy establishes four housing funds based on fund source. The
revenues, expenditures, interest, and payments for each fund source shall be separately
accounted for to ensure the RDA control and oversight to comply with statutory
requirements.
• Annual Budgeting Process: The policy provides that on an annual basis, the RDA shall
present for the Board’s consideration a Housing Development Funding Strategy (“Funding
Strategy”) that projects revenues for the upcoming fiscal year and proposes funding priorities
and allocations. This will allow the RDA to be flexible to address current needs, leverage
current opportunities, coordinate with other city resources, and allow funding priorities to
align with evolving plans and policies. Through this year’s Funding Strategy, the RDA would
release a Notice of Funding Availability (“NOFA”) for the following:
o Citywide (competitive) – completed December 2021
o Emergency Gap (open-ended) – The proposed standards within this memo are
specific to these requests. The intent of these funds is that they are reserved for
projects far along in the pre-development process that run into emergency, or last-
minute gap financing needs due to cost overruns, senior lender requirements, etc.
o High Opportunity – (open-ended)
Housing Development Loan Program Amendments:
1. Emergency Gap Financing Criteria. The HDLP Policy provides low-cost financial assistance
to incentivize the development and preservation of affordable housing within Salt Lake City
municipal boundaries. The HDLP provides a centralized application, underwriting, and
approval process regardless of the fund source and includes basic eligibility requirements for
all projects funded through the program. Because emergency gap funds are intended for a
more specific purpose than other funds, additional standards have been proposed to ensure
these funds are dispersed in a consistent manner for projects that have a real, immediate need.
The proposed standards require that:
• Projects are ready to break ground within 6 months
• Projects have secured financial commitments from their funding sources for at least
90% of their total project costs
• Projects submit a funding gap analysis detailing the cause of the gap and providing
supporting documents.
2. HDLP Designated Review Committee. The HDLP also provides direction for the evaluation
and approval process for these funds, indicating that a general review committee comprised
of professionals must analyze and rank applications to make a recommendation to the RDA
Board. The proposed HDLP amendment clarifies and designates that reviews will go to the
RDA Finance Committee.
ANALYSIS & ISSUES:
Below is an overview of the proposed emergency gap financing additions and proposed amendment
directing review to the RDA Finance Committee related to the HDLP Policy:
Emergency Gap Financing Additions:
1. Timeliness: Projects are ready to break ground within 6 months.
Typical affordable housing developments involve federal low-income housing tax credits
(“LIHTC”) and funding from additional public entities. Typically, once a project receives tax
credits, the majority of their funding source is secured and the project moves closer to
construction. In addition, projects at this stage should have more detailed construction
drawings.
2. Financial Commitments Secured: Projects have secured financial commitments from their
funding sources for at least 90% of their total project costs.
Related to the previous standard, projects that are further along in the development schedule
will have financial commitments from senior lenders and other sources. This standard would
require that projects have evidence of financial commitments.
3.Funding Gap Analysis: Projects shall submit a funding gap analysis that explains what is
causing the gap and provide supporting documents that demonstrate need for the specific
amount being requested.
By understanding the reason for the gap, RDA can require that the developer submit the
appropriate documentation. For example, if construction costs have gone up, we could ask
for a construction bid that is dated within the last 30 days. This additional information would
better justify the use of emergency funds if the construction bids have increased and have
caused an unexpected gap for a project.
Amendment to Designated Review Committee
During the review of this policy, it was noted that it may make sense to designate the RDA Finance
Committee as the review body of these requests pursuant to resolution R-35-2016. The current
language provides general criteria for a review committee, but does not explicitly designate an
official body. The proposal would direct the RDA Finance Committee as the official review body
for HDLP fund requests. This would include the reviews of competitive and open-ended NOFAs
like the emergency gap financing funds. The RDA Finance Committee meets monthly and is
charged with providing recommendations for requests related to items such as loans, tax increment
reimbursements and land write downs and; therefore, should review HDLP loan requests. This
would allow a more streamlined review process and simplified administrative procedures.
PREVIOUS BOARD ACTION:
•December 2021: The Board approved $5.3 million in funding allocations for 4 affordable
housing developments.
•August 2021: The Board adopted FY21-22 Affordable Housing Funding Priorities.
•March 2021: The Board adopted the Housing Development Loan Program Policy
•February 2021: The Board adopted the Housing Allocation Funds Policy
ATTACHMENTS:
A.Resolution and Proposed HDLP Amendments
1
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _____________
Amending the Housing Development Loan Program Policy to Add Standards for the
Distribution of Emergency Gap Financing Funds and Directing Review of
Applications to the RDA Finance Committee
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT
AGENCY OF SALT LAKE CITY AMENDING THE HOUSING DEVELOPMENT
LOAN PROGRAM POLICY TO ADD STANDARDS FOR THE DISTRIBUTION OF
EMERGENCY GAP FINANCING FUNDS AND DIRECTING REVIEW OF
APPLICATIONS TO THE RDA FINANCE COMMITTEE
WHEREAS, on March 23, 2021, pursuant to Resolution No. R-7-2021, the Board
of Directors of the Redevelopment Agency of Salt Lake City (“Board”) passed the
Housing Development Loan Program (“2021 Policy, attached to this resolution as
Attachment A), which centralized the application, underwriting, and approval process
across all funding sources identified in the Housing Allocation Funds Policy, providing a
one-stop-shop for community partners to access resources for the development and
preservation of affordable housing.
WHEREAS, the Board now desires to amend the 2021 Policy to add standards for
emergency gap financing funds and direct review of applications for the RDA Finance
Committee. A redline version of the 2021 Policy is attached to this resolution as Attachment
B and a clean version of the amended 2021 Policy is attached to this resolution as
Attachment C.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, that the Housing
Development Loan Program Policy, adopted pursuant to Resolution R-7-2021, is hereby
amended as follows:
SECTION 1. That the 2021 Policy is amended to insert a new section entitled
Emergency Gap Financing Funds. The new section shall be inserted at section 8 without
deleting any existing sections and all subsequent sections shall be renumbered sequentially.
The newly renumbered section 8 shall read as follows:
8.EMERGENCY GAP FINANCING FUNDS
If allocated by the Board in the annual Funding Strategy, emergency gap financing funds
may be available as a part of a NOFA for projects that have an unanticipated and
immediate need for financial assistance. To be eligible for emergency gap financing
funds, projects must meet the following criteria in addition to the basic eligibility
requirements set forth in Section 7:
a.Projects must be ready to break ground within 6 months of applying for the
emergency gap financing NOFA.
Attachment A: Resolution and Proposed HDLP Amendments
2
b. Projects must have secured financing for at least 90% of the total project cost and
provide proof of such secured financing upon submission of the NOFA
application.
c. Projects shall submit a funding gap analysis that explains what is causing the
gap and provide supporting documents that demonstrate need for the specific
amount being requested.
SECTION 2. That the 2021 Policy is amended to replace the Review Committee with
the RDA Finance Committee. As such, the newly renumbered Section 10, Evaluation and
Approval Process, is hereby amended to read as follows:
10. EVALUATION & APPROVAL PROCESS
For each issued NOFA, the RDA shall evaluate and consider applications for approval
as follows:
a. Eligibility Review: Funding applications shall be reviewed and evaluated in
detail by RDA staff based on the requirements listed herein, specific Housing
Funds requirements, and additional criteria published in the relevant NOFA.
b. RDA Finance Committee (“Committee”): For applications that meet the basic
eligibility requirements, applications and supporting materials shall be forwarded
to the Committee. The Committee will analyze and rank applications, as
applicable, based on the policies contained herein and the criteria published in
the NOFA. The Committee shall make a recommendation to the RDA Board for
a funding allocation.
c. RDA Board of Directors: The RDA Board of Directors shall make the final
selection of projects to receive a funding allocation.
d. Funding Commitment: The project funding process shall be carried out in two
subparts as follows:
i. Conditional Commitment Period: The RDA shall issue a Conditional
Commitment letter to those applications that are selected for a funding
allocation by the RDA Board. The Conditional Commitment letter
between the RDA and the applicant shall contain the covenants, terms
and conditions upon which the RDA may provide financial assistance to
the proposed project once financial, legal, and regulatory approvals are
obtained.
ii. Firm Commitment & Loan Closing: Projects that successfully meet
conditions shall be invited to execute a Letter of Commitment that
finalizes the loan terms, subject to a set of conditions precedent to closing.
SECTION 3. That the 2021 Policy is amended to modify the references to the Review
Committee. As such, the newly renumbered Section 12, Loan Modifications, shall read as
follows:
3
12. LOAN MODIFICATIONS
In the event of extenuating circumstances, the RDA may provide payment forbearance,
payment deferment, or loan write-down. Such adjustment to loan terms shall be
considered on a case-by-case basis and shall be subject to a thorough review of the
project’s financial standing and other relevant information. The process for providing
loan modifications shall be considered and authorized as follows:
a. Forbearance/Deferment: The Executive Director of the RDA may elect to
provide the Borrower a temporary forbearance or deferment of payment for up
to one (1) year. For periods of forbearance or deferment longer than one (1)
year, the Committee shall provide a recommendation that is forwarded to the
Board, who shall consider and act upon all such requests.
b. Loan Write-down: The Committee shall provide a recommendation that is
forwarded to the Board, who shall consider and act upon all such requests.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
_______ day of ________________, 2022.
________________________________
Ana Valdemoros, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Date:____________________________
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
________________________________
Erin Mendenhall, Executive Director
Attest:
________________________
City Recorder
January 21, 2022
4
Attachment A
2021 Policy
[Insert Adopted 2021 Policy]
1
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _____________
Housing Development Loan Program Policy
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT
AGENCY OF SALT LAKE CITY ADOPTING A HOUSING DEVELOPMENT LOAN
PROGRAM POLICY AND REPEALING THE AFFORDABLE HOUSING NOTICE OF
FUNDING AVAILABILITY POLICY
WHEREAS, Salt Lake City has an adopted housing plan that identifies housing
needs, priorities, and goals on a citywide basis (“Housing Plan”).
WHEREAS, the Board of Directors (the “Board”) of the Redevelopment Agency
of Salt Lake City (“RDA”) has adopted project area plans that identify housing needs,
priorities, and goals on a project area basis (“Project Area Plans”).
WHEREAS, on June 12, 2018, the Board adopted Resolution R-17-2018,
Affordable Housing Notice of Funding Availability Policy (“NOFA Policy”).
WHEREAS, the RDA supports the implementation of the Housing Plan and
Project Area Plans through various funding sources that are further described in the RDA
Housing Allocation Funds Policy adopted by the Board on February 9, 2021 (“Funds
Policy”).
WHEREAS, through the Funds Policy, the Board may dedicate funds to be
administered for the development and preservation of affordable housing.
WHEREAS, the Board desires to repeal the NOFA Policy and to establish a housing
development loan program to centralize the application, underwriting, and approval process
across all funding sources identified in the Funds Policy, providing a one-stop-shop for
community partners to access resources for the development and preservation of affordable
housing.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, that the NOFA Policy
adopted pursuant to Resolution R-17-2018 is repealed in its entirety and the following policy
for a Housing Development Loan Program is adopted:
1.PURPOSE
The purpose of the Housing Development Loan Program (“HDLP”) is to provide low
cost financial assistance to incentivize the development and preservation of affordable
housing within Salt Lake City municipal boundaries. The HDLP shall provide a
centralized application, underwriting, and approval process regardless of the fund
source.
R-7-2021
2
2.INTENT
The Board intends that funds allocated through the HDLP:
a.Provide a mix of affordable housing, serving a range of households and income
levels, consistent with income limits and affordability requirements for each fund
source, to promote housing opportunity and choice throughout the City for
household sizes ranging from single persons to families of various sizes.
b.Foster a mix of household incomes in projects and neighborhoods and to disperse
affordable housing projects throughout the City to encourage a balance of
incomes in all neighborhoods and communities.
c.Promote equity and anti-displacement efforts through the development and
preservation of affordable housing in low-income neighborhoods where
underserved groups have historic ties, including neighborhoods where low
income individuals and families are at high risk of displacement.
d.Contribute to the development of sustainable, walkable neighborhoods to expand
housing choice near transportation, services, and economic opportunity.
e.Support an array of scale of project types, including detached housing, accessory
dwelling units, rowhouses, and small to large scale multifamily buildings, that
contribute to neighborhood context and livability.
f.Incorporate green-building elements and energy efficiency to lower housing
expenses, conserve resources, and promote resiliency.
g.Leverage private and non-city funding sources to ensure the greatest number of
quality affordable housing units are preserved or produced.
h.Be provided as loans that are repaid over time and not grants, forgivable loans,
or indefinitely deferred loans.
3.SOURCE OF FUNDS
HDLP activities shall be funded through a combination of fund sources (collectively the
Housing Funds”) as established through the Funds Policy. Funding allocations shall be
administered through the HDLP to a project directly from an individual fund source with
revenues, expenditures, interest, payments, and repayments accounted for from the fund
source.
Each of the individual fund sources that comprise the Housing Funds operates under
separate state or local laws and regulations. Laws and regulations include restrictions on
the incomes of households served, maximum allowable rents, and eligible activities.
4.ANNUAL BUDGET PROCESS
As further described in the Funds Policy, the RDA shall present an Annual Housing
Development Funding Strategy (“Funding Strategy”) prior to the annual budget process
that shall include proposed funding priorities and revenues to be administered through
3
the HDLP for the next fiscal year. The Board shall consider the Funding Strategy as part
of the annual budget adoption process.
5.FUNDING PRIORITIES
To provide flexibility to address current needs and policies, funding priorities shall be
proposed on an annual basis through the Funding Strategy, subject to approval by the
Board. Funding priorities shall align with policies as adopted by the Board and Salt Lake
City Council including the Housing Plan, Project Area Plans, RDA Guiding Framework,
and Funds Policy.
6.FUNDS ADMINISTRATION PROCESS
Funding shall be administered through a transparent notice of funding availability
NOFA”) process and shall incorporate the funding priorities as determined annually
by the Board. Funds from multiple fund sources may be combined into a consolidated
NOFA or a NOFA may be issued from one fund source. NOFAs may be offered on an
annual basis or multiple times per year and can be competitive or open-ended depending
on availability of funds, priorities, and demand.
7.BASIC ELIGIBILITY
Projects eligible for funding through the HDLP shall at a minimum meet these basic
eligibility requirements, as well as specific requirements that may be set forth in
individual NOFAs as they are issued.
a.Applicant Types: Eligible applicants include entities and organizations with
affordable housing development experience, as follows:
i.For-profit corporations, partnerships, joint ventures, or sole proprietors.
ii.Private incorporated non-profit agencies with IRS 501(c) designation.
iii.Public housing agencies or units of local government.
b.Project Types: The new construction or substantial rehabilitation of affordable,
mixed-use and/or mixed-income housing.
c.Uses of Funds: Land/property acquisition, hard construction costs, site
improvements, and related soft costs.
d.Area Median Income (“AMI”): AMI requirements shall reflect the policies and
regulations of the Housing Funds as defined through the Funds Policy.
e.Financing Gap: Projects shall demonstrate that RDA funding is necessary for the
project to succeed and that the request is reasonable. Applicants must obtain
commercial loans sized with the highest loan-to-value and lowest debt service
parameters that are commercially available in the marketplace and aggressively
pursue other funding sources to the fullest extent possible to minimize the HDLP
funding request.
f.Site Control: Evidence of site control must be demonstrated through ownership,
option, sale agreement, long-term lease, or equivalent.
4
g.Policies and Master Plans: Projects shall align with the Housing Plan, Project
Area Plans, Master Plans, and other applicable adopted plans and policies.
h.Good Standing: Applicants and affiliated entities must be in good standing on all
existing contracts administered by Salt Lake City, the RDA, Utah Housing
Corporation, and other State and local entities.
i.Relocation Plan (if applicable): Displacement is strongly discouraged. However,
if it is necessary and unavoidable, the developer must submit a relocation plan
that complies with applicable federal, state, and local policies for temporary or
permanent displacement.
j.Design: Projects shall align with applicable design guidelines and comply with
all applicable Salt Lake City building and zoning codes and ordinances.
8.UNDERWRITING STANDARDS
Funding shall expand housing opportunities for low-and moderate-income households by
reducing a project’s financing cost. Flexibility shall be provided to accommodate a wide
range of projects that may be dependent upon myriad of underwriting standards by outside
lenders. With this flexibility in mind, funding shall generally be provided as loans
pursuant to the terms and conditions outlined in Exhibit A.
9.EVALUATION & APPROVAL PROCESS
For each issued NOFA, the RDA shall evaluate and consider applications for approval
as follows:
a.Eligibility Review: Funding applications shall be reviewed and evaluated in
detail by RDA staff based on the requirements listed herein, specific Housing
Funds requirements, and additional criteria published in the relevant NOFA.
b.Review Committee: For applications that meet the basic eligibility requirements,
applications and supporting materials shall be forwarded to a review committee
that shall be comprised of members with experience relevant to the affordable
housing industry, and may be comprised of RDA/City staff, finance
professionals, affordable housing experts, and/or real estate development
professionals. The review committee shall analyze and rank applications based
on the polices contained herein and the criteria published in the NOFA. Projects
that the Committee finds to rank competitively compared with other proposed
projects of similar type shall be recommended to the RDA Board for a funding
allocation.
c.RDA Board of Directors: The RDA Board of Directors shall make the final
selection of projects to receive a funding allocation.
d.Funding Commitment: The project funding process shall be carried out in two
subparts as follows:
i.Conditional Commitment Period: The RDA shall issue a Conditional
Commitment letter to those applications that are selected for a funding
5
allocation by the RDA Board. The Conditional Commitment letter between
the RDA and the applicant shall contain the covenants, terms and conditions
upon which the RDA may provide financial assistance to the proposed project
once financial, legal, and regulatory approvals are obtained.
ii.Firm Commitment & Loan Closing: Projects that successfully meet
conditions shall be invited to execute a Letter of Commitment that finalizes
the loan terms, subject to a set of conditions precedent to closing.
10.MONITORING AND COMPLIANCE
The RDA shall be required to monitor, or contract with a third party to monitor, the
projects funded through the HDLP. Monitoring shall evaluate and ensure that projects
are complying with affordability requirements and other requirements as determined in
the loan agreement.
11.LOAN MODIFICATIONS
In the event of extenuating circumstances, the RDA may provide payment forbearance,
payment deferment, or loan write-down. Such adjustment to loan terms shall be
considered on a case-by-case basis and shall be subject to a thorough review of the
project’s financial standing and other relevant information. The process for providing
loan modifications shall be considered and authorized as follows:
a.Forbearance/Deferment: The Executive Director of the RDA may elect to
provide the Borrower a temporary forbearance or deferment of payment for up
to one (1) year. For periods of forbearance or deferment longer than one (1)
year, the Review Committee shall provide a recommendation that is forwarded
to the Board, who shall consider and act upon all such requests.
b.Loan Write-down: The Review Committee shall provide a recommendation that
is forwarded to the Board, who shall consider and act upon all such requests.
6
EXHIBIT A: Standard Loan Terms and Conditions
Standard loan terms and conditions for I) Gap Financing: Rental Construction to Permanent,
II) Property Acquisition, and III) Gap Financing: Homeownership Construction are as
follows:
I. GAP FINANCING: RENTAL CONSTRUCTION TO PERMANENT
Limits to Assistance:
Maximize Other Sources: Applicants must demonstrate that they have
maximized other available financing sources thereby limiting HDLP funding to
the lowest amount necessary to close the funding gap and assure project
feasibility.
Loan to Value: A loan-to-value limit is not applicable. However, land and project
costs shall be reasonable as compared similar projects in size, scope, and
location.
Debt Service Coverage Ratio (DSCR): Repayment terms for amortizing HDLP
loans shall be calculated as described herein and shall be based on a DSCR of
1.10 inclusive of the RDA’s loan and all senior debt.
Cash Flow: For loans that qualify for a cash flow repayment structure, pursuant
to the standards contained herein, applicants must demonstrate that the HDLP
loan can be repaid within its scheduled term or at the end of the term.
Proportion to Affordability: Funding shall be sized in proportion to the affordable
component, taking into consideration the AMI structure and number of units in
the project.
Repayment:
Depending on the project’s capacity for repayment, loans may be repaid as an
amortized loan, a cash flow loan based on available cash flow, or a combination
of both types of loan.
o Amortized Loan: The RDA shall determine what portion of its loan can
be paid on an amortized schedule with required payments using the
DSCR standards contained herein and the DSCR requirements of the
senior lender.
o Cash Flow Loan: If full amortization is not feasible due to limited cash
flow, funds shall be repaid from an agreed upon percentage split of
surplus cash flow. Cash flow loans shall be considered only for projects
that provide a high level of affordability, target a difficult to serve
population, or include other significant public benefit.
At the RDA’s discretion, payments may not be required and interest may not
accrue or accrue at a reduced interest rate during the construction and lease-up
phase. Upon completion of construction, lease-up, project stabilization, or other
fixed date, loans shall begin to accrue interest and shall be subject to repayment.
7
Any accrued but unpaid interest and principal is due in full at loan maturity.
Loans can be prepaid in whole or in part at any time without penalty. Prepayment
does not end the affordability period before its original end date.
Term:
RDA loan terms shall generally match the term of permanent senior debt,
generally up to a maximum of 30-years for projects with non-HUD financing and
up to a maximum of 40 years for projects with HUD financing.
Commencement of the loan term and/or repayment period may be deferred for a
period of time to allow for completion of construction and lease-up phase.
Interest Rate:
Base Interest Rate: The base interest rate shall be as follows:
o Amortized Loans: The current U.S. Treasury Yield Curve Rate for the
loan term plus 1%, locked in within a month of loan closing, with a
maximum base interest rate of 3%. The interest rate for loans with a term
longer than 30 years shall utilize the 30-year U.S. Treasury Yield Curve
Rate in this calculation.
o Cash Flow Loans: The current U.S. Treasury Yield Curve Rate for the
loan term plus 2%, locked in within a month of loan closing, with a
maximum base interest rate of 4%. The interest rate for loans with a term
longer than 30 years shall utilize the 30-year U.S. Treasury Yield Curve
Rate in this calculation.
Interest shall accrue as simple interest.
Funding Priority Incentives: Projects shall have the ability to reduce the Base
Interest Rate if the project meets the current funding priorities as established
annually pursuant to the Funds Policy. For each funding priority met, the project
is eligible to receive a .5% reduction from the Base Interest Rate, with the ability
to reduce the interest rate to a minimum of 1%.
Interest rates are subject to an adjustment, of up a 1% deviation, based on project
cash flow and debt coverage ratio calculated at time of application and
underwriting.
Affordability Restriction:
A restriction shall be recorded against the property that requires continued use of
the specified units as affordable housing for at least the same period as the senior
financing or a minimum of 30 years, whichever is greater. Both a rent and income
restriction shall be included to limit the maximum rent that can be charged for a
unit and to require that the unit be made available only to households with
qualifying incomes.
Subordination to Senior Debt:
8
HDLP loans may be subordinated to leverage private financing, with the priority
among subsidy lenders typically established based upon size of the loans.
Security:
Adequate security shall be required, generally in the form of a deed of trust,
promissory note, and guarantees.
Developer Fee:
Given the rent restrictions on affordable housing projects, affordable housing
developments typically do not have substantial cash flow after debt service on
their primary loans. As such, developer fees are recognized as a significant part
of the income on which affordable housing organizations depend for their
operations. For projects utilizing a low-income housing tax credit (“LIHTC”)
program, the calculation to determine a maximum developer fee shall be
consistent with Utah Housing Corporation’s policy, which caps the maximum
developer fee. The maximum developer fee for projects not utilizing LIHTC shall
be evaluated on a case-by-case basis in the context of the proportion of affordable
units and AMIs.
Borrower Contribution:
Borrowers shall contribute a source of financing to the project, whether through
an equity contribution or a deferred developer fee or a combination of both. The
level of borrower contribution shall be considered on a case-by-case basis and
shall be evaluated based on the type of ownership entity and level of public
benefit provided by the project.
For Low Income Housing Tax Credit (“LIHTC”) projects that are requesting a
cash flow loan, the borrower shall maximize the amount of deferred developer
fee allowed under Utah Housing Corporation’s standards to be allowed in tax
credit basis and acceptable for their tax credit investor in that this amount must
be payable within a time frame allowed by the LIHTC program as approved by
the project’s tax counsel.
Projects that have not maximized a developer fee, pursuant to the standards
contained herein, or that serve lower AMIs or special populations, such as
permanent supportive housing, may have the ability to waive the borrower
contribution.
Disbursement of Funds:
Funding shall be disbursed as construction draws evidenced by supporting
documentation demonstrating that work has been completed and that the project
is in good financial and legal standing.
Other
Loans are non-assumable without written permission from the RDA.
9
II.PROPERTY ACQUISITION
Limits to Assistance:
Maximize Other Sources: Applicants must demonstrate that they have
maximized other available financing sources thereby limiting HDLP funding to
the lowest amount necessary to close the funding gap and assure project
feasibility.
Loan to Value: Loans shall be sized to a loan-to-value limit of 90% of the as-is
appraised value inclusive of the RDA’s loan and all senior debt.
Repayment:
Depending on the applicant’s capacity for repayment, loans may be repaid as a
deferred or interest-only loan.
Any accrued but unpaid interest and principal is due in full at loan maturity.
Loans can be prepaid in whole or in part at any time without penalty. Prepayment
does not end the affordability period before its original end date.
Term:
The maximum loan term shall be 24-months with the ability for one 12-month
extension if the project is demonstrating a progression toward construction.
Interest Rate:
Base Interest Rate: The base interest rate shall be the current U.S. Treasury Yield
for the loan term plus 2.5%, locked in within a month of loan closing, with a
maximum base interest rate of 3%.
Interest shall accrue as simple interest.
Funding Priority Incentives: Projects shall have the ability to reduce the Base
Interest Rate if the project meets the current funding priorities as established
pursuant to the Funds Policy. For each funding priority met, the project is eligible
to receive a .5% reduction from the Base Interest Rate, with the ability to reduce
the interest rate to a minimum of 1%.
Interest shall accrue on all loan proceeds disbursed commencing on the date of
disbursement.
Interest rates are subject to an adjustment, of up a 1% deviation, based on project
cash flow and debt coverage ratio calculated at time of application and
underwriting.
Affordability Restriction:
A restriction shall be recorded against the property that requires continued use of
the specified units as affordable housing for at least the same period as the senior
financing or a minimum of 30 years, whichever is greater. Both a rent and income
10
restriction shall be included to limit the maximum rent that can be charged for a
unit and to require that the unit be made available only to households with
qualifying incomes.
Subordination to Senior Debt:
HDLP loans may be subordinated to leverage private financing, with the priority
among subsidy lenders is typically established based upon size of the loans.
Security:
Adequate security shall be required, generally in the form of a deed of trust,
promissory note, and guarantees.
Developer Fee:
Developer fees are not an eligible cost for a property acquisition loan.
Disbursement of Funds:
Funding may be disbursed at loan closing.
Other
Loans are non-assumable without written permission from the RDA.
11
III.GAP FINANCING: HOMEOWNERSHIP CONSTRUCTION
Limits to Assistance:
Maximize Other Sources: Applicants must demonstrate that they have
maximized other available financing sources thereby limiting HDLP funding to
the lowest amount necessary to close the funding gap and assure project
feasibility.
Loan to Value: Loans shall be sized to a loan-to-value limit of 90% of the as-is
appraised value inclusive of the RDA’s loan and all senior debt.
Proportion to Affordability: Funding shall be sized in proportion to the affordable
component, taking into consideration the AMI structure and number of units in
the project.
Repayment:
Loans shall be repaid from the sale of housing units in the project. HDLP funds
may be repaid after payout to senior loans have been accounted for.
Any accrued but unpaid interest and principal is due in full at loan maturity.
Loans can be prepaid in whole or in part at any time without penalty.
Prepayment does not end the affordability period before its original end date.
Term:
The maximum loan term shall be 36-months with the ability for one 12-month
extension if the project is demonstrating a progression toward completion.
Interest Rate:
Base Interest Rate: The base interest rate shall be the current U.S. Treasury
Yield for the loan term plus 2.5%, locked in within a month of loan closing,
with a maximum base interest rate of 3%. Interest shall accrue as simple
interest.
Funding Priority Incentives: Projects shall have the ability to reduce the Base
Interest Rate if the project meets the current funding priorities as established
pursuant to the Funds Policy. For each funding priority met, the project is
eligible to receive a .5% reduction from the Base Interest Rate, with the ability
to reduce the interest rate to a minimum of 1%.
Interest shall accrue on all loan proceeds disbursed commencing on the date of
disbursement.
Interest rates are subject to an adjustment, of up a 1% deviation, based on
project cash flow and debt coverage ratio calculated at time of application and
underwriting.
12
Affordability Restriction:
A restriction shall be recorded against the property that requires continued use of
the specified units as affordable housing for at least the same period as the senior
financing or a minimum of 15 years, whichever is greater. Both a sales price and
income restriction shall be included to limit the maximum sales price that can be
charged for a unit and to require that the unit be made available only to
households with qualifying incomes.
Subordination to Senior Debt:
HDLP loans may be subordinated to leverage private financing, with the
priority among subsidy lenders is typically established based upon size of the
loans.
Security:
Adequate security shall be required, generally in the form of a deed of trust,
promissory note, and guarantees.
Developer Fee:
Maximum developer fees shall be considered on a case-by-case basis and shall
be evaluated based on the affordability levels of the project, type of ownership
entity, and level of public benefit provided by the project.
Borrower Contribution:
Borrowers shall contribute a source of financing to the project, whether through
an equity contribution or a deferred developer fee or a combination of both. The
level of borrower contribution shall be considered on a case-by-case basis and
shall be evaluated based on the affordability levels of the project, type of
ownership entity, and level of public benefit provided by the project.
Deferred developer fees shall be paid after the HDLF loan has been fully
repaid.
Disbursement of Funds:
Funding shall be disbursed as construction draws evidenced by supporting
documentation demonstrating that work has been completed and that the project
is in good financial and legal standing.
Other
Loans are non-assumable without written permission from the RDA.
13
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
day of ________________, 2021.
Ana Valdemoros, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Allison Parks
Date:____________________________
The Executive Director:
does not request reconsideration
requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Attest:
City Recorder
March 24, 2021
23 March
Ana Valdemoros (May 17, 2021 13:32 MDT)
Erin Mendenhall (May 17, 2021 13:37 MDT)
4
Cindy Trishman (May 17, 2021 16:21 MDT)
RDA Resolution R-7-2021 (Establishing the
Housing Development Loan Program Policy)
adopted 03-23-21
Final Audit Report 2021-05-17
Created:2021-04-05
By:Kory Solorio (kory.solorio@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAAInbPVjRTFBvmBeNQJ1-3Z0H2hHGhVuPA
RDA Resolution R-7-2021 (Establishing the Housing Developm
ent Loan Program Policy) adopted 03-23-21" History
Document created by Kory Solorio (kory.solorio@slcgov.com)
2021-04-05 - 10:34:23 PM GMT- IP address: 204.124.13.151
Document emailed to Ana Valdemoros (ana.valdemoros@slcgov.com) for signature
2021-04-05 - 10:38:21 PM GMT
Email viewed by Ana Valdemoros (ana.valdemoros@slcgov.com)
2021-05-05 - 1:36:44 AM GMT- IP address: 136.60.130.16
Email viewed by Ana Valdemoros (ana.valdemoros@slcgov.com)
2021-05-17 - 7:13:55 PM GMT- IP address: 67.182.249.63
Document e-signed by Ana Valdemoros (ana.valdemoros@slcgov.com)
Signature Date: 2021-05-17 - 7:32:46 PM GMT - Time Source: server- IP address: 136.60.130.16
Document emailed to Erin Mendenhall (erin.mendenhall@slcgov.com) for signature
2021-05-17 - 7:32:48 PM GMT
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Document e-signed by Erin Mendenhall (erin.mendenhall@slcgov.com)
Signature Date: 2021-05-17 - 7:37:37 PM GMT - Time Source: server- IP address: 136.36.67.177
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Signature Date: 2021-05-17 - 10:21:20 PM GMT - Time Source: server- IP address: 204.124.13.151
Agreement completed.
2021-05-17 - 10:21:20 PM GMT
5
Attachment B
Redline Changes to the 2021 Policy
1. PURPOSE
The purpose of the Housing Development Loan Program (“HDLP”) is to provide low
cost financial assistance to incentivize the development and preservation of affordable
housing within Salt Lake City municipal boundaries. The HDLP shall provide a
centralized application, underwriting, and approval process regardless of the fund
source.
2. INTENT
The Board intends that funds allocated through the HDLP:
a. Provide a mix of affordable housing, serving a range of households and income
levels, consistent with income limits and affordability requirements for each fund
source, to promote housing opportunity and choice throughout the City for
household sizes ranging from single persons to families.
b. Foster a mix of household incomes in projects and neighborhoods and to disperse
affordable housing projects throughout the City to encourage a balance of
incomes in all neighborhoods and communities.
c. Promote equity and anti-displacement efforts through the development and
preservation of affordable housing in low-income neighborhoods where
underserved groups have historic ties, including neighborhoods where low
income individuals and families are at high risk of displacement.
d. Contribute to the development of sustainable, walkable neighborhoods to expand
housing choice near transportation, services, and economic opportunity.
e. Support an array of scale of project types, including detached housing, accessory
dwelling units, rowhouses, and small to large scale multifamily buildings, that
contribute to neighborhood context and livability.
f. Incorporate green-building elements and energy efficiency to lower housing
expenses, conserve resources, and promote resiliency.
g. Leverage private and non-city funding sources to ensure the greatest number of
quality affordable housing units are preserved or produced.
h. Be provided as loans that are repaid over time and not grants, forgivable loans,
or indefinitely deferred loans.
3. SOURCE OF FUNDS
HDLP activities shall be funded through a combination of fund sources (collectively the
“Housing Funds”) as established through the Funds Policy. Funding allocations shall be
6
administered through the HDLP to a project directly from an individual fund source with
revenues, expenditures, interest, payments, and repayments accounted for from the fund
source.
Each of the individual fund sources that comprise the Housing Funds operates under
separate state or local laws and regulations. Laws and regulations include restrictions on
the incomes of households served, maximum allowable rents, and eligible activities.
4. ANNUAL BUDGET PROCESS
As further described in the Funds Policy, the RDA shall present an Annual Housing
Development Funding Strategy (“Funding Strategy”) prior to the annual budget process
that shall include proposed funding priorities and revenues to be administered through
the HDLP for the next fiscal year. The Board shall consider the Funding Strategy as part
of the annual budget adoption process.
5. FUNDING PRIORITIES
To provide flexibility to address current needs and policies, funding priorities will be
proposed on an annual basis through the Funding Strategy, subject to approval by the
Board. Funding priorities shall align with policies as adopted by the Board and Salt Lake
City Council including the Housing Plan, Project Area Plans, RDA Guiding Framework,
and Funds Policy.
6. FUNDS ADMINISTRATION PROCESS
Funding shall be administered through a transparent notice of funding availability
(“NOFA”) process and shall incorporate the funding priorities as determined annually
by the Board. Funds from multiple fund sources may be combined into a consolidated
NOFA or a NOFA may be issued from one fund source. NOFAs may be offered on an
annual basis or multiple times per year and can be competitive or open-ended depending
on availability of funds, priorities, and demand.
7. BASIC ELIGIBILITY
Projects eligible for funding through the HDLP shall at a minimum meet these basic
eligibility requirements, as well as specific requirements that may be set forth in
individual NOFAs as they are issued.
a. Applicant Types: Eligible applicants include entities and organizations with
affordable housing development experience, as follows:
i. For-profit corporations, partnerships, joint ventures, or sole proprietors.
ii. Private incorporated non-profit agencies with IRS 501(c) designation.
iii. Public housing agencies or units of local government.
b. Project Types: The new construction or substantial rehabilitation of affordable,
mixed-use and/or mixed-income housing.
c. Uses of Funds: Land/property acquisition, hard construction costs, site
improvements, and related soft costs.
7
d. Area Median Income (“AMI”): AMI requirements shall reflect the policies and
regulations of the Housing Funds as defined through the Funds Policy.
e. Financing Gap: Projects shall demonstrate that RDA funding is necessary for the
project to succeed and that the request is reasonable. Applicants must obtain
commercial loans sized with the highest loan-to-value and lowest debt service
parameters that are commercially available in the marketplace and aggressively
pursue other funding sources to the fullest extent possible to minimize the HDLP
funding request.
f. Site Control: Evidence of site control must be demonstrated through ownership,
option, sale agreement, long-term lease, or equivalent.
g. Policies and Master Plans: Projects shall align with the Housing Plan, Project
Area Plans, Master Plans, and other applicable adopted plans and policies.
h. Good Standing: Applicants and affiliated entities must be in good standing on all
existing contracts administered by Salt Lake City, the RDA, Utah Housing
Corporation, and other State and local entities.
i. Relocation Plan (if applicable): Displacement is strongly discouraged. However,
if it is necessary and unavoidable, the developer must submit a relocation plan
that complies with applicable federal, state, and local policies for temporary or
permanent displacement.
j. Design: Projects shall align with applicable design guidelines and comply with
all applicable Salt Lake City building and zoning codes and ordinances.
8. EMERGENCY GAP FINANCING FUNDS
If allocated by the Board in the annual Funding Strategy, emergency gap financing funds
may be available as a part of a NOFA for projects that have an unanticipated and
immediate need for financial assistance. To be eligible for emergency gap financing
funds, projects must meet the following criteria in addition to the basic eligibility
requirements set forth in Section 7:
a. Projects must be ready to break ground within 6 months of applying for the
emergency gap financing NOFA.
b. Projects must have secured financing for at least 90% of the total project cost
and provide proof of such secured financing upon submission of the NOFA
application.
c. Projects shall submit a funding gap analysis that explains what is causing the gap
and provide supporting documents that demonstrate need for the specific amount
being requested.
98. UNDERWRITING STANDARDS
Funding shall expand housing opportunities for low-and moderate-income households by
reducing a project’s financing cost. Flexibility shall be provided to accommodate a wide
range of projects that may be dependent upon myriad of underwriting standards by outside
8
lenders. With this flexibility in mind, funding shall generally be provided as loans
pursuant to the terms and conditions outlined in Exhibit A.
109. EVALUATION & APPROVAL PROCESS
For each issued NOFA, the RDA shall evaluate and consider applications for approval
as follows:
a. Eligibility Review: Funding applications shall be reviewed and evaluated in
detail by RDA staff based on the requirements listed herein, specific Housing
Funds requirements, and additional criteria published in the relevant NOFA.
b. Review RDA Finance Committee (“Committee”): For applications that meet the
basic eligibility requirements, applications and supporting materials shall be
forwarded to a reviewthe cCommittee. that shall be comprised of members with
experience relevant to the affordable housing industry, and may be comprised of
RDA/City staff, finance professionals, affordable housing experts, and/or real
estate development professionals. The review cCommittee will analyze and rank
applications, as applicable, based on the polices contained herein and the criteria
published in the NOFA. Projects that the Committee finds to rank competitively
compared with other proposed projects of similar type shall be recommended The
Committee shall make a recommendation to the RDA Board for a funding
allocation.
c. RDA Board of Directors: The RDA Board of Directors shall make the final
selection of projects to receive a funding allocation.
d. Funding Commitment: The project funding process shall be carried out in two
subparts as follows:
i. Conditional Commitment Period: The RDA shall issue a Conditional
Commitment letter to those applications that are selected for a funding
allocation by the RDA Board. The Conditional Commitment letter between
the RDA and the applicant shall contain the covenants, terms and conditions
upon which the RDA may provide financial assistance to the proposed project
once financial, legal, and regulatory approvals are obtained.
ii. Firm Commitment & Loan Closing: Projects that successfully meet
conditions shall be invited to execute a Letter of Commitment that finalizes
the loan terms, subject to a set of conditions precedent to closing.
110. MONITORING AND COMPLIANCE
The RDA shall be required to monitor, or contract with a third party to monitor, the
projects funded through the HDLP. Monitoring shall evaluate and ensure that projects
are complying with affordability requirements and other requirements as determined in
the loan agreement.
121. LOAN MODIFICATIONS
9
In the event of extenuating circumstances, the RDA may provide payment forbearance,
payment deferment, or loan write-down. Such adjustment to loan terms shall be
considered on a case-by-case basis and shall be subject to a thorough review of the
project’s financial standing and other relevant information. The process for providing
loan modifications shall be considered and authorized as follows:
c. Forbearance/Deferment: The Executive Director of the RDA may elect to
provide the Borrower a temporary forbearance or deferment of payment for up
to one (1) year. For periods of forbearance or deferment longer than one (1)
year, the Review Committee shall provide a recommendation that is forwarded
to the Board, who shall consider and act upon all such requests.
d. Loan Write-down: The Review Committee shall provide a recommendation that
is forwarded to the Board, who shall consider and act upon all such requests.
10
EXHIBIT A: Standard Loan Terms and Conditions
Standard loan terms and conditions for I) Gap Financing: Rental Construction to Permanent,
II) Property Acquisition, and III) Gap Financing: Homeownership Construction are as
follows:
I. GAP FINANCING: RENTAL CONSTRUCTION TO PERMANENT
Limits to Assistance:
• Maximize Other Sources: Applicants must demonstrate that they have
maximized other available financing sources thereby limiting HDLP funding to
the lowest amount necessary to close the funding gap and assure project
feasibility.
• Loan to Value: A loan-to-value limit is not applicable. However, land and project
costs shall be reasonable as compared similar projects in size, scope, and
location.
• Debt Service Coverage Ratio (DSCR): Repayment terms for amortizing HDLP
loans will be calculated as described herein and will be based on a DSCR of 1.10
inclusive of the RDA’s loan and all senior debt.
• Cash Flow: For loans that qualify for a cash flow repayment structure, pursuant
to the standards contained herein, applicants must demonstrate that the HDLP
loan can be repaid within its scheduled term or at the end of the term.
• Proportion to Affordability: Funding shall be sized in proportion to the affordable
component, taking into consideration the AMI structure and number of units in
the project.
Repayment:
• Depending on the project’s capacity for repayment, loans may be repaid as an
amortized loan, a cash flow loan based on available cash flow, or a combination
of both types of loan.
o Amortized Loan: The RDA will determine what portion of its loan can be
paid on an amortized schedule with required payments using the DSCR
standards contained herein and the DSCR requirements of the senior
lender.
o Cash Flow Loan: If full amortization is not feasible due to limited cash
flow, funds shall be repaid from an agreed upon percentage split of
surplus cash flow. Cash flow loans shall be considered only for projects
that provide a high level of affordability, target a difficult to serve
population, or include other significant public benefit.
• At the RDA’s discretion, payments may not be required and interest may not
accrue or accrue at a reduced interest rate during the construction and lease-up
phase. Upon completion of construction, lease-up, project stabilization, or other
fixed date, loans shall begin to accrue interest and shall be subject to repayment.
11
• Any accrued but unpaid interest and principal is due in full at loan maturity.
• Loans can be prepaid in whole or in part at any time without penalty. Prepayment
does not end the affordability period before its original end date.
Term:
• RDA loan terms will generally match the term of permanent senior debt,
generally up to a maximum of 30-years for projects with non-HUD financing and
up to a maximum of 40 years for projects with HUD financing.
• Commencement of the loan term and/or repayment period may be deferred for a
period of time to allow for completion of construction and lease-up phase.
Interest Rate:
• Base Interest Rate: The base interest rate shall be as follows:
o Amortized Loans: The current U.S. Treasury Yield Curve Rate for the
loan term plus 1%, locked in within a month of loan closing, with a
maximum base interest rate of 3%. The interest rate for loans with a term
longer than 30 years will utilize the 30-year U.S. Treasury Yield Curve
Rate in this calculation.
o Cash Flow Loans: The current U.S. Treasury Yield Curve Rate for the
loan term plus 2%, locked in within a month of loan closing, with a
maximum base interest rate of 4%. The interest rate for loans with a term
longer than 30 years will utilize the 30-year U.S. Treasury Yield Curve
Rate in this calculation.
• Interest will accrue as simple interest.
• Funding Priority Incentives: Projects shall have the ability to reduce the Base
Interest Rate if the project meets the current funding priorities as established
annually pursuant to the Funds Policy. For each funding priority met, the project
is eligible to receive a .5% reduction from the Base Interest Rate, with the ability
to reduce the interest rate to a minimum of 1%.
• Interest rates are subject to an adjustment, of up a 1% deviation, based on project
cash flow and debt coverage ratio calculated at time of application and
underwriting.
Affordability Restriction:
• A restriction shall be recorded against the property that requires continued use of
the specified units as affordable housing for at least the same period as the senior
financing or a minimum of 30 years, whichever is greater. Both a rent and income
restriction shall be included to limit the maximum rent that can be charged for a
unit and to require that the unit be made available only to households with
qualifying incomes.
Subordination to Senior Debt:
12
• HDLP loans may be subordinated to leverage private financing, with the priority
among subsidy lenders typically established based upon size of the loans.
Security:
• Adequate security shall be required, generally in the form of a deed of trust,
promissory note, and guarantees.
Developer Fee:
• Given the rent restrictions on affordable housing projects, affordable housing
developments typically do not have substantial cash flow after debt service on
their primary loans. As such, developer fees are recognized as a significant part
of the income on which affordable housing organizations depend for their
operations. For projects utilizing a low-income housing tax credit (“LIHTC”)
program, the calculation to determine a maximum developer fee shall be
consistent with Utah Housing Corporation’s policy, which caps the maximum
developer fee. The maximum developer fee for projects not utilizing LIHTC will
be evaluated on a case-by-case basis in the context of the proportion of affordable
units and AMIs.
Borrower Contribution:
• Borrowers shall contribute a source of financing to the project, whether through
an equity contribution or a deferred developer fee or a combination of both. The
level of borrower contribution will be considered on a case-by-case basis and will
be evaluated based on the type of ownership entity and level of public benefit
provided by the project.
• For Low Income Housing Tax Credit (“LIHTC”) projects that are requesting a
cash flow loan, the borrower shall maximize the amount of deferred developer
fee allowed under Utah Housing Corporation’s standards to be allowed in tax
credit basis and acceptable for their tax credit investor in that this amount must
be payable within a time frame allowed by the LIHTC program as approved by
the project’s tax counsel.
• Projects that have not maximized a developer fee, pursuant to the standards
contained herein, or that serve lower AMIs or special populations, such as
permanent supportive housing, may have the ability to waive the borrower
contribution.
Disbursement of Funds:
• Funding shall be disbursed as construction draws evidenced by supporting
documentation demonstrating that work has been completed and that the project
is in good financial and legal standing.
Other
• Loans are non-assumable without written permission from the RDA.
13
II. PROPERTY ACQUISITION
Limits to Assistance:
• Maximize Other Sources: Applicants must demonstrate that they have
maximized other available financing sources thereby limiting HDLP funding to
the lowest amount necessary to close the funding gap and assure project
feasibility.
• Loan to Value: Loans will be sized to a loan-to-value limit of 90% of the as-is
appraised value inclusive of the RDA’s loan and all senior debt.
Repayment:
• Depending on the applicant’s capacity for repayment, loans may be repaid as a
deferred or interest-only loan.
• Any accrued but unpaid interest and principal is due in full at loan maturity.
• Loans can be prepaid in whole or in part at any time without penalty. Prepayment
does not end the affordability period before its original end date.
Term:
• The maximum loan term shall be 24-months with the ability for one 12-month
extension if the project is demonstrating a progression toward construction.
Interest Rate:
• Base Interest Rate: The base interest rate shall be the current U.S. Treasury Yield
for the loan term plus 2.5%, locked in within a month of loan closing, with a
maximum base interest rate of 3%.
• Interest will accrue as simple interest.
• Funding Priority Incentives: Projects shall have the ability to reduce the Base
Interest Rate if the project meets the current funding priorities as established
pursuant to the Funds Policy. For each funding priority met, the project is eligible
to receive a .5% reduction from the Base Interest Rate, with the ability to reduce
the interest rate to a minimum of 1%.
• Interest shall accrue on all loan proceeds disbursed commencing on the date of
disbursement.
• Interest rates are subject to an adjustment, of up a 1% deviation, based on project
cash flow and debt coverage ratio calculated at time of application and
underwriting.
Affordability Restriction:
• A restriction shall be recorded against the property that requires continued use of
the specified units as affordable housing for at least the same period as the senior
financing or a minimum of 30 years, whichever is greater. Both a rent and income
14
restriction shall be included to limit the maximum rent that can be charged for a
unit and to require that the unit be made available only to households with
qualifying incomes.
Subordination to Senior Debt:
• HDLP loans may be subordinated to leverage private financing, with the priority
among subsidy lenders is typically established based upon size of the loans.
Security:
• Adequate security shall be required, generally in the form of a deed of trust,
promissory note, and guarantees.
Developer Fee:
• Developer fees are not an eligible cost for a property acquisition loan.
Disbursement of Funds:
• Funding may be disbursed at loan closing.
Other
• Loans are non-assumable without written permission from the RDA.
15
III. GAP FINANCING: HOMEOWNERSHIP CONSTRUCTION
Limits to Assistance:
• Maximize Other Sources: Applicants must demonstrate that they have
maximized other available financing sources thereby limiting HDLP funding to
the lowest amount necessary to close the funding gap and assure project
feasibility.
• Loan to Value: Loans will be sized to a loan-to-value limit of 90% of the as-is
appraised value inclusive of the RDA’s loan and all senior debt.
• Proportion to Affordability: Funding shall be sized in proportion to the affordable
component, taking into consideration the AMI structure and number of units in
the project.
Repayment:
• Loans shall be repaid from the sale of housing units in the project. HDLP funds
may be repaid after payout to senior loans have been accounted for.
• Any accrued but unpaid interest and principal is due in full at loan maturity.
• Loans can be prepaid in whole or in part at any time without penalty.
Prepayment does not end the affordability period before its original end date.
Term:
• The maximum loan term shall be 36-months with the ability for one 12-month
extension if the project is demonstrating a progression toward completion.
Interest Rate:
• Base Interest Rate: The base interest rate shall be the current U.S. Treasury
Yield for the loan term plus 2.5%, locked in within a month of loan closing,
with a maximum base interest rate of 3%. Interest will accrue as simple interest.
• Funding Priority Incentives: Projects shall have the ability to reduce the Base
Interest Rate if the project meets the current funding priorities as established
pursuant to the Funds Policy. For each funding priority met, the project is
eligible to receive a .5% reduction from the Base Interest Rate, with the ability
to reduce the interest rate to a minimum of 1%.
• Interest shall accrue on all loan proceeds disbursed commencing on the date of
disbursement.
• Interest rates are subject to an adjustment, of up a 1% deviation, based on
project cash flow and debt coverage ratio calculated at time of application and
underwriting.
16
Affordability Restriction:
• A restriction shall be recorded against the property that requires continued use of
the specified units as affordable housing for at least the same period as the senior
financing or a minimum of 15 years, whichever is greater. Both a sales price and
income restriction shall be included to limit the maximum sales price that can be
charged for a unit and to require that the unit be made available only to
households with qualifying incomes.
Subordination to Senior Debt:
• HDLP loans may be subordinated to leverage private financing, with the
priority among subsidy lenders is typically established based upon size of the
loans.
Security:
• Adequate security shall be required, generally in the form of a deed of trust,
promissory note, and guarantees.
Developer Fee:
• Maximum developer fees will be considered on a case-by-case basis and will be
evaluated based on the affordability levels of the project, type of ownership
entity, and level of public benefit provided by the project.
Borrower Contribution:
• Borrowers shall contribute a source of financing to the project, whether through
an equity contribution or a deferred developer fee or a combination of both. The
level of borrower contribution will be considered on a case-by-case basis and
will be evaluated based on the affordability levels of the project, type of
ownership entity, and level of public benefit provided by the project.
• Deferred developer fees shall be paid after the HDLF loan has been fully
repaid.
Disbursement of Funds:
• Funding shall be disbursed as construction draws evidenced by supporting
documentation demonstrating that work has been completed and that the project
is in good financial and legal standing.
Other
• Loans are non-assumable without written permission from the RDA.
17
Attachment C
Clean Version of Amended Policy
1. PURPOSE
The purpose of the Housing Development Loan Program (“HDLP”) is to provide low
cost financial assistance to incentivize the development and preservation of affordable
housing within Salt Lake City municipal boundaries. The HDLP shall provide a
centralized application, underwriting, and approval process regardless of the fund
source.
2. INTENT
The Board intends that funds allocated through the HDLP:
i. Provide a mix of affordable housing, serving a range of households and income
levels, consistent with income limits and affordability requirements for each fund
source, to promote housing opportunity and choice throughout the City for
household sizes ranging from single persons to families.
j. Foster a mix of household incomes in projects and neighborhoods and to disperse
affordable housing projects throughout the City to encourage a balance of
incomes in all neighborhoods and communities.
k. Promote equity and anti-displacement efforts through the development and
preservation of affordable housing in low-income neighborhoods where
underserved groups have historic ties, including neighborhoods where low
income individuals and families are at high risk of displacement.
l. Contribute to the development of sustainable, walkable neighborhoods to expand
housing choice near transportation, services, and economic opportunity.
m. Support an array of scale of project types, including detached housing, accessory
dwelling units, rowhouses, and small to large scale multifamily buildings, that
contribute to neighborhood context and livability.
n. Incorporate green-building elements and energy efficiency to lower housing
expenses, conserve resources, and promote resiliency.
o. Leverage private and non-city funding sources to ensure the greatest number of
quality affordable housing units are preserved or produced.
p. Be provided as loans that are repaid over time and not grants, forgivable loans,
or indefinitely deferred loans.
3. SOURCE OF FUNDS
HDLP activities shall be funded through a combination of fund sources (collectively the
“Housing Funds”) as established through the Funds Policy. Funding allocations shall be
administered through the HDLP to a project directly from an individual fund source with
18
revenues, expenditures, interest, payments, and repayments accounted for from the fund
source.
Each of the individual fund sources that comprise the Housing Funds operates under
separate state or local laws and regulations. Laws and regulations include restrictions on
the incomes of households served, maximum allowable rents, and eligible activities.
4. ANNUAL BUDGET PROCESS
As further described in the Funds Policy, the RDA shall present an Annual Housing
Development Funding Strategy (“Funding Strategy”) prior to the annual budget process
that shall include proposed funding priorities and revenues to be administered through
the HDLP for the next fiscal year. The Board shall consider the Funding Strategy as part
of the annual budget adoption process.
5. FUNDING PRIORITIES
To provide flexibility to address current needs and policies, funding priorities will be
proposed on an annual basis through the Funding Strategy, subject to approval by the
Board. Funding priorities shall align with policies as adopted by the Board and Salt Lake
City Council including the Housing Plan, Project Area Plans, RDA Guiding Framework,
and Funds Policy.
6. FUNDS ADMINISTRATION PROCESS
Funding shall be administered through a transparent notice of funding availability
(“NOFA”) process and shall incorporate the funding priorities as determined annually
by the Board. Funds from multiple fund sources may be combined into a consolidated
NOFA or a NOFA may be issued from one fund source. NOFAs may be offered on an
annual basis or multiple times per year and can be competitive or open-ended depending
on availability of funds, priorities, and demand.
7. BASIC ELIGIBILITY
Projects eligible for funding through the HDLP shall at a minimum meet these basic
eligibility requirements, as well as specific requirements that may be set forth in
individual NOFAs as they are issued.
k. Applicant Types: Eligible applicants include entities and organizations with
affordable housing development experience, as follows:
iv. For-profit corporations, partnerships, joint ventures, or sole proprietors.
v. Private incorporated non-profit agencies with IRS 501(c) designation.
vi. Public housing agencies or units of local government.
l. Project Types: The new construction or substantial rehabilitation of affordable,
mixed-use and/or mixed-income housing.
m. Uses of Funds: Land/property acquisition, hard construction costs, site
improvements, and related soft costs.
19
n. Area Median Income (“AMI”): AMI requirements shall reflect the policies and
regulations of the Housing Funds as defined through the Funds Policy.
o. Financing Gap: Projects shall demonstrate that RDA funding is necessary for the
project to succeed and that the request is reasonable. Applicants must obtain
commercial loans sized with the highest loan-to-value and lowest debt service
parameters that are commercially available in the marketplace and aggressively
pursue other funding sources to the fullest extent possible to minimize the HDLP
funding request.
p. Site Control: Evidence of site control must be demonstrated through ownership,
option, sale agreement, long-term lease, or equivalent.
q. Policies and Master Plans: Projects shall align with the Housing Plan, Project
Area Plans, Master Plans, and other applicable adopted plans and policies.
r. Good Standing: Applicants and affiliated entities must be in good standing on all
existing contracts administered by Salt Lake City, the RDA, Utah Housing
Corporation, and other State and local entities.
s. Relocation Plan (if applicable): Displacement is strongly discouraged. However,
if it is necessary and unavoidable, the developer must submit a relocation plan
that complies with applicable federal, state, and local policies for temporary or
permanent displacement.
t. Design: Projects shall align with applicable design guidelines and comply with
all applicable Salt Lake City building and zoning codes and ordinances.
8. EMERGENCY GAP FINANCING FUNDS
If allocated by the Board in the annual Funding Strategy, emergency gap financing funds
may be available as a part of a NOFA for projects that have an unanticipated and
immediate need for financial assistance. To be eligible for emergency gap financing
funds, projects must meet the following criteria in addition to the basic eligibility
requirements set forth in Section 7:
a. Projects must be ready to break ground within 6 months of applying for the
emergency gap financing NOFA.
b. Projects must have secured financing for at least 90% of the total project cost and
provide proof of such secured financing upon submission of the NOFA
application.
c. Projects shall submit a funding gap analysis that explains what is causing the gap
and provide supporting documents that demonstrate need for the specific amount
being requested.
9. UNDERWRITING STANDARDS
Funding shall expand housing opportunities for low-and moderate-income households by
reducing a project’s financing cost. Flexibility shall be provided to accommodate a wide
range of projects that may be dependent upon myriad of underwriting standards by outside
20
lenders. With this flexibility in mind, funding shall generally be provided as loans
pursuant to the terms and conditions outlined in Exhibit A.
10. EVALUATION & APPROVAL PROCESS
For each issued NOFA, the RDA shall evaluate and consider applications for approval
as follows:
a. Eligibility Review: Funding applications shall be reviewed and evaluated in
detail by RDA staff based on the requirements listed herein, specific Housing
Funds requirements, and additional criteria published in the relevant NOFA.
b. RDA Finance Committee (“Committee”): For applications that meet the basic
eligibility requirements, applications and supporting materials shall be forwarded
to the Committee. The Committee will analyze and rank applications, as
applicable, based on the polices contained herein and the criteria published in the
NOFA. The Committee shall make a recommendation to the RDA Board for a
funding allocation.
c. RDA Board of Directors: The RDA Board of Directors shall make the final
selection of projects to receive a funding allocation.
d. Funding Commitment: The project funding process shall be carried out in two
subparts as follows:
i. Conditional Commitment Period: The RDA shall issue a Conditional
Commitment letter to those applications that are selected for a funding
allocation by the RDA Board. The Conditional Commitment letter between
the RDA and the applicant shall contain the covenants, terms and conditions
upon which the RDA may provide financial assistance to the proposed project
once financial, legal, and regulatory approvals are obtained.
ii. Firm Commitment & Loan Closing: Projects that successfully meet
conditions shall be invited to execute a Letter of Commitment that finalizes
the loan terms, subject to a set of conditions precedent to closing.
11. MONITORING AND COMPLIANCE
The RDA shall be required to monitor, or contract with a third party to monitor, the
projects funded through the HDLP. Monitoring shall evaluate and ensure that projects
are complying with affordability requirements and other requirements as determined in
the loan agreement.
12. LOAN MODIFICATIONS
In the event of extenuating circumstances, the RDA may provide payment forbearance,
payment deferment, or loan write-down. Such adjustment to loan terms shall be
considered on a case-by-case basis and shall be subject to a thorough review of the
project’s financial standing and other relevant information. The process for providing
loan modifications shall be considered and authorized as follows:
21
a. Forbearance/Deferment: The Executive Director of the RDA may elect to
provide the Borrower a temporary forbearance or deferment of payment for up
to one (1) year. For periods of forbearance or deferment longer than one (1)
year, the Committee shall provide a recommendation that is forwarded to the
Board, who shall consider and act upon all such requests.
b. Loan Write-down: The Committee shall provide a recommendation that is
forwarded to the Board, who shall consider and act upon all such requests.
22
EXHIBIT A: Standard Loan Terms and Conditions
Standard loan terms and conditions for I) Gap Financing: Rental Construction to Permanent,
II) Property Acquisition, and III) Gap Financing: Homeownership Construction are as
follows:
IV. GAP FINANCING: RENTAL CONSTRUCTION TO PERMANENT
Limits to Assistance:
• Maximize Other Sources: Applicants must demonstrate that they have
maximized other available financing sources thereby limiting HDLP funding to
the lowest amount necessary to close the funding gap and assure project
feasibility.
• Loan to Value: A loan-to-value limit is not applicable. However, land and project
costs shall be reasonable as compared similar projects in size, scope, and
location.
• Debt Service Coverage Ratio (DSCR): Repayment terms for amortizing HDLP
loans will be calculated as described herein and will be based on a DSCR of 1.10
inclusive of the RDA’s loan and all senior debt.
• Cash Flow: For loans that qualify for a cash flow repayment structure, pursuant
to the standards contained herein, applicants must demonstrate that the HDLP
loan can be repaid within its scheduled term or at the end of the term.
• Proportion to Affordability: Funding shall be sized in proportion to the affordable
component, taking into consideration the AMI structure and number of units in
the project.
Repayment:
• Depending on the project’s capacity for repayment, loans may be repaid as an
amortized loan, a cash flow loan based on available cash flow, or a combination
of both types of loan.
o Amortized Loan: The RDA will determine what portion of its loan can be
paid on an amortized schedule with required payments using the DSCR
standards contained herein and the DSCR requirements of the senior
lender.
o Cash Flow Loan: If full amortization is not feasible due to limited cash
flow, funds shall be repaid from an agreed upon percentage split of
surplus cash flow. Cash flow loans shall be considered only for projects
that provide a high level of affordability, target a difficult to serve
population, or include other significant public benefit.
• At the RDA’s discretion, payments may not be required and interest may not
accrue or accrue at a reduced interest rate during the construction and lease-up
phase. Upon completion of construction, lease-up, project stabilization, or other
fixed date, loans shall begin to accrue interest and shall be subject to repayment.
23
• Any accrued but unpaid interest and principal is due in full at loan maturity.
• Loans can be prepaid in whole or in part at any time without penalty. Prepayment
does not end the affordability period before its original end date.
Term:
• RDA loan terms will generally match the term of permanent senior debt,
generally up to a maximum of 30-years for projects with non-HUD financing and
up to a maximum of 40 years for projects with HUD financing.
• Commencement of the loan term and/or repayment period may be deferred for a
period of time to allow for completion of construction and lease-up phase.
Interest Rate:
• Base Interest Rate: The base interest rate shall be as follows:
o Amortized Loans: The current U.S. Treasury Yield Curve Rate for the
loan term plus 1%, locked in within a month of loan closing, with a
maximum base interest rate of 3%. The interest rate for loans with a term
longer than 30 years will utilize the 30-year U.S. Treasury Yield Curve
Rate in this calculation.
o Cash Flow Loans: The current U.S. Treasury Yield Curve Rate for the
loan term plus 2%, locked in within a month of loan closing, with a
maximum base interest rate of 4%. The interest rate for loans with a term
longer than 30 years will utilize the 30-year U.S. Treasury Yield Curve
Rate in this calculation.
• Interest will accrue as simple interest.
• Funding Priority Incentives: Projects shall have the ability to reduce the Base
Interest Rate if the project meets the current funding priorities as established
annually pursuant to the Funds Policy. For each funding priority met, the project
is eligible to receive a .5% reduction from the Base Interest Rate, with the ability
to reduce the interest rate to a minimum of 1%.
• Interest rates are subject to an adjustment, of up a 1% deviation, based on project
cash flow and debt coverage ratio calculated at time of application and
underwriting.
Affordability Restriction:
• A restriction shall be recorded against the property that requires continued use of
the specified units as affordable housing for at least the same period as the senior
financing or a minimum of 30 years, whichever is greater. Both a rent and income
restriction shall be included to limit the maximum rent that can be charged for a
unit and to require that the unit be made available only to households with
qualifying incomes.
Subordination to Senior Debt:
24
• HDLP loans may be subordinated to leverage private financing, with the priority
among subsidy lenders typically established based upon size of the loans.
Security:
• Adequate security shall be required, generally in the form of a deed of trust,
promissory note, and guarantees.
Developer Fee:
• Given the rent restrictions on affordable housing projects, affordable housing
developments typically do not have substantial cash flow after debt service on
their primary loans. As such, developer fees are recognized as a significant part
of the income on which affordable housing organizations depend for their
operations. For projects utilizing a low-income housing tax credit (“LIHTC”)
program, the calculation to determine a maximum developer fee shall be
consistent with Utah Housing Corporation’s policy, which caps the maximum
developer fee. The maximum developer fee for projects not utilizing LIHTC will
be evaluated on a case-by-case basis in the context of the proportion of affordable
units and AMIs.
Borrower Contribution:
• Borrowers shall contribute a source of financing to the project, whether through
an equity contribution or a deferred developer fee or a combination of both. The
level of borrower contribution will be considered on a case-by-case basis and will
be evaluated based on the type of ownership entity and level of public benefit
provided by the project.
• For Low Income Housing Tax Credit (“LIHTC”) projects that are requesting a
cash flow loan, the borrower shall maximize the amount of deferred developer
fee allowed under Utah Housing Corporation’s standards to be allowed in tax
credit basis and acceptable for their tax credit investor in that this amount must
be payable within a time frame allowed by the LIHTC program as approved by
the project’s tax counsel.
• Projects that have not maximized a developer fee, pursuant to the standards
contained herein, or that serve lower AMIs or special populations, such as
permanent supportive housing, may have the ability to waive the borrower
contribution.
Disbursement of Funds:
• Funding shall be disbursed as construction draws evidenced by supporting
documentation demonstrating that work has been completed and that the project
is in good financial and legal standing.
Other
• Loans are non-assumable without written permission from the RDA.
25
V. PROPERTY ACQUISITION
Limits to Assistance:
• Maximize Other Sources: Applicants must demonstrate that they have
maximized other available financing sources thereby limiting HDLP funding to
the lowest amount necessary to close the funding gap and assure project
feasibility.
• Loan to Value: Loans will be sized to a loan-to-value limit of 90% of the as-is
appraised value inclusive of the RDA’s loan and all senior debt.
Repayment:
• Depending on the applicant’s capacity for repayment, loans may be repaid as a
deferred or interest-only loan.
• Any accrued but unpaid interest and principal is due in full at loan maturity.
• Loans can be prepaid in whole or in part at any time without penalty. Prepayment
does not end the affordability period before its original end date.
Term:
• The maximum loan term shall be 24-months with the ability for one 12-month
extension if the project is demonstrating a progression toward construction.
Interest Rate:
• Base Interest Rate: The base interest rate shall be the current U.S. Treasury Yield
for the loan term plus 2.5%, locked in within a month of loan closing, with a
maximum base interest rate of 3%.
• Interest will accrue as simple interest.
• Funding Priority Incentives: Projects shall have the ability to reduce the Base
Interest Rate if the project meets the current funding priorities as established
pursuant to the Funds Policy. For each funding priority met, the project is eligible
to receive a .5% reduction from the Base Interest Rate, with the ability to reduce
the interest rate to a minimum of 1%.
• Interest shall accrue on all loan proceeds disbursed commencing on the date of
disbursement.
• Interest rates are subject to an adjustment, of up a 1% deviation, based on project
cash flow and debt coverage ratio calculated at time of application and
underwriting.
Affordability Restriction:
• A restriction shall be recorded against the property that requires continued use of
the specified units as affordable housing for at least the same period as the senior
financing or a minimum of 30 years, whichever is greater. Both a rent and income
26
restriction shall be included to limit the maximum rent that can be charged for a
unit and to require that the unit be made available only to households with
qualifying incomes.
Subordination to Senior Debt:
• HDLP loans may be subordinated to leverage private financing, with the priority
among subsidy lenders is typically established based upon size of the loans.
Security:
• Adequate security shall be required, generally in the form of a deed of trust,
promissory note, and guarantees.
Developer Fee:
• Developer fees are not an eligible cost for a property acquisition loan.
Disbursement of Funds:
• Funding may be disbursed at loan closing.
Other
• Loans are non-assumable without written permission from the RDA.
27
VI. GAP FINANCING: HOMEOWNERSHIP CONSTRUCTION
Limits to Assistance:
• Maximize Other Sources: Applicants must demonstrate that they have
maximized other available financing sources thereby limiting HDLP funding to
the lowest amount necessary to close the funding gap and assure project
feasibility.
• Loan to Value: Loans will be sized to a loan-to-value limit of 90% of the as-is
appraised value inclusive of the RDA’s loan and all senior debt.
• Proportion to Affordability: Funding shall be sized in proportion to the affordable
component, taking into consideration the AMI structure and number of units in
the project.
Repayment:
• Loans shall be repaid from the sale of housing units in the project. HDLP funds
may be repaid after payout to senior loans have been accounted for.
• Any accrued but unpaid interest and principal is due in full at loan maturity.
• Loans can be prepaid in whole or in part at any time without penalty.
Prepayment does not end the affordability period before its original end date.
Term:
• The maximum loan term shall be 36-months with the ability for one 12-month
extension if the project is demonstrating a progression toward completion.
Interest Rate:
• Base Interest Rate: The base interest rate shall be the current U.S. Treasury
Yield for the loan term plus 2.5%, locked in within a month of loan closing,
with a maximum base interest rate of 3%. Interest will accrue as simple interest.
• Funding Priority Incentives: Projects shall have the ability to reduce the Base
Interest Rate if the project meets the current funding priorities as established
pursuant to the Funds Policy. For each funding priority met, the project is
eligible to receive a .5% reduction from the Base Interest Rate, with the ability
to reduce the interest rate to a minimum of 1%.
• Interest shall accrue on all loan proceeds disbursed commencing on the date of
disbursement.
• Interest rates are subject to an adjustment, of up a 1% deviation, based on
project cash flow and debt coverage ratio calculated at time of application and
underwriting.
28
Affordability Restriction:
• A restriction shall be recorded against the property that requires continued use of
the specified units as affordable housing for at least the same period as the senior
financing or a minimum of 15 years, whichever is greater. Both a sales price and
income restriction shall be included to limit the maximum sales price that can be
charged for a unit and to require that the unit be made available only to
households with qualifying incomes.
Subordination to Senior Debt:
• HDLP loans may be subordinated to leverage private financing, with the
priority among subsidy lenders is typically established based upon size of the
loans.
Security:
• Adequate security shall be required, generally in the form of a deed of trust,
promissory note, and guarantees.
Developer Fee:
• Maximum developer fees will be considered on a case-by-case basis and will be
evaluated based on the affordability levels of the project, type of ownership
entity, and level of public benefit provided by the project.
Borrower Contribution:
• Borrowers shall contribute a source of financing to the project, whether through
an equity contribution or a deferred developer fee or a combination of both. The
level of borrower contribution will be considered on a case-by-case basis and
will be evaluated based on the affordability levels of the project, type of
ownership entity, and level of public benefit provided by the project.
• Deferred developer fees shall be paid after the HDLF loan has been fully
repaid.
Disbursement of Funds:
• Funding shall be disbursed as construction draws evidenced by supporting
documentation demonstrating that work has been completed and that the project
is in good financial and legal standing.
Other
• Loans are non-assumable without written permission from the RDA.
REDEVELOPMENT AGENCY OF SALT LAKE CITY
Amendments to the Housing Development Loan Program
Emergency Gap Financing Criteria & Review
RDA BOARD OF DIRECTORS MEETING | FEBRUARY 8, 2022
BACKGROUND
•At December 2021 Board meeting, Board discussed how loan applications would be reviewed when the RDA releases a
Notice of Funding Availability (NOFA) for emergency funding through the Housing Development Loan Program (HDLP).
•RDA Staff has proposed additions/amendments for emergency funding requests within the HDLP.
HOUSING DEVELOPMENT LOAN PROGRAM (HDLP)
PURPOSE
Provides a centralized process and application for all RDA Housing funds to provide low-interest loans to incentivize the
development and preservation of affordable housing within Salt Lake City municipal boundaries.
ANNUAL FUNDING PRIORITIES & ALLOCATIONS
The RDA presents an Annual HDLP “Funding Strategy” prior to the annual budget process that includes proposed revenues
and funding priorities to be administered through the HDLP for the next fiscal year.
HOUSING DEVELOPMENT LOAN PROGRAM (HDLP)
ADMINISTRATIVE PROCESS
Funding administered through a transparent notice of funding availability (“NOFA”) process and incorporates the funding
priorities as determined annually by the Board. This fiscal year housing strategy offers three NOFAs:
-Competitive Citywide
-High Opportunity Area
-Emergency Gap Financing
EVALUATION & APPROVAL PROCESS
For each issued NOFA, the RDA evaluates and considers applications for approval as follows:
1.Eligibility Review
2.Review Committee Recommendation
3.RDA Board of Directors Approval
4.Funding Commitment
PROPOSED HDLP LANGUAGE ADDITION
EMERGENCY GAP FINANCING FUNDS
If allocated by the Board in the annual Funding Strategy, emergency gap financing funds may be available as a part of a
NOFA for projects that have an unanticipated and immediate need for financial assistance. To be eligible for emergency gap
financing funds, projects must meet the following criteria in addition to the basic eligibility requirements set forth in Section 7:
a.Projects must be ready to break ground within 6 months of applying for the emergency gap financing NOFA.
b.Projects must have secured financing for at least 90% of the total project cost and provide proof of such secured
financing upon submission of the NOFA application.
c.Projects shall submit a funding gap analysis that explains what is causing the gap and provide supporting documents that
demonstrate need for the specific amount being requested.
PROPOSED HDLP REVIEW COMMITTEE
EVALUATION & APPROVAL PROCESS
For each issued NOFA, the RDA shall evaluate and consider applications for approval as follows:
a.Eligibility Review: Funding applications shall be reviewed and evaluated in detail by RDA staff based on the
requirements listed herein, specific Housing Funds requirements, and additional criteria published in the relevant NOFA.
b.RDA Finance Committee (“Committee”): For applications that meet the basic eligibility requirements, applications and
supporting materials shall be forwarded to the Committee. The Committee will analyze and rank applications, as
applicable, based on the policies contained herein and the criteria published in the NOFA. The Committee shall make a
recommendation to the RDA Board for a funding allocation.
RAC RECOMENDATION
RECOMMEND APPROVAL WITH THE FOLLOWING CONSIDERATIONS:
1.Re-evaluate criteria such that the 6-month window is shortened to a much shorter timeframe that represents a truly
ready-to-close timeframe (90 days at most)
2.Re-evaluate approval process to allow for very quick action, very quick approval process, maybe contingent approval
first and then finance committee approval (remove Board approval?)
3.Consider a matching fund component from developer to the emergency fund
QUESTIONS/DISCUSSION
1.RAC recommendation would require a change in the current process.
2.Would the Board like to create a shorter process for emergency requests?
3.Would additional details in the standards make the Board comfortable to delegate authority for emergency funding
requests?
4.Accomplishing an emergency funding process is difficult with the current process. If it does not make sense to establish
a shorter timeframe, it may make sense to allocate these funds for another NOFA use.
SALT LAKE CITY CORPORATION
SWORN STATEMENT SUPPORTING CLOSURE OF MEETING
I, Ana Valdemoros, acted as the presiding member of the Redevelopment Agency of Salt Lake City, which met on
February 8, 2022 in an electronic meeting pursuant to the Chair's determination.
Appropriate notice was given of the Redevelopment Agency meeting as required by §52-4-202.
A quorum of the Council was present at the meeting and voted by at least a two-thirds vote, as detailed in the minutes of
the open meeting, to close a portion of the meeting to discuss the following:
§52-4-205(l)(a) discussion of the character, professional competence, or physical or mental health of an
individual;
§52 -4-205(1)(b) strategy sessions to discuss collective bargaining;
§52-4-205(l)(c) strategy sessions to discuss pending or reasonably imminent litigation;
§52-4-205(l)(d) strategy sessions to discuss the purchase, exchange, or lease of real property, including
any form of a water right or water shares, if public discussion of the transaction would: (i) disclose the
appraisal or estimated value of the property under consideration; or (ii) prevent the public body from
completing the transaction on the best possible terms;
§52-4-205(l)(e) strategy sessions to discuss the sale of real property, including any form of a water right
or water shares if: (i) public discussion of the transaction would: (A) disclose the appraisal or estimated
value of the property under consideration; or (B) prevent the public body from completing the transaction
on the best possible terms; (ii) if the public body previously gave public notice that the property would be
offered for sale; and (iii) the terms of the sale are publicly disclosed before the public body approves the
sale;
§52-4-205(1)(f) discussion regarding deployment of security personnel, devices, or systems; and
§52-4-205(1)(g) investigative proceedings regarding allegations of criminal misconduct.
A Closed Meeting may also be held for Attorney-Client matters that are privileged pursuant to Utah Code
§78B-1-137, and for other lawful purposes that satisfy the pertinent requirements of the Utah Open and
Public Meetings Act.
Other, described as follows: _____________________________________________________________
The content of the closed portion of the Council meeting was restricted to a discussion of the matter(s) for which the
meeting was closed.
With regard to the closed meeting, the following was publicly announced and recorded, and entered on the minutes of the
open meeting at which the closed meeting was approved:
(a)the reason or reasons for holding the closed meeting;
(b)the location where the closed meeting will be held; and
(c)the vote of each member of the public body either for or against the motion to hold the closed meeting.
The recording and any minutes of the closed meeting will include:
(a)the date, time, and place of the meeting;
(b)the names of members Present and Absent; and
(c)the names of all others present except where such disclosure would infringe on the confidentiality
necessary to fulfill the original purpose of closing the meeting.
Pursuant to §52-4-206(6), a sworn statement is required to close a meeting under §52-4-205(1)(a) or (f), but a record by
tape recording or detailed minutes is not required; and Pursuant to §52-4-206(1), a record by tape recording and/or
detailed written minutes is required for a meeting closed under §52-4-205(1)(b),(c),(d),(e),and (g):
A record was not made.
A record was made by: : Electronic
recording
Detailed written minutes
I hereby swear or affirm under penalty of perjury that the above information is true and correct to the best of my
knowledge.
Presiding Member Date of Signature
X
X
X
X X
Ana Valdemoros (Feb 8, 2022 16:02 MST)Feb 8, 2022
February 8, 2022 - RDA Sworn Statement
Final Audit Report 2022-02-08
Created:2022-02-08
By:DeeDee Robinson (deedee.robinson@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAA5gNeAv_O6j-RmT3fMuCoOZyZEf0WQpWI
"February 8, 2022 - RDA Sworn Statement" History
Document created by DeeDee Robinson (deedee.robinson@slcgov.com)
2022-02-08 - 10:52:20 PM GMT
Document emailed to Ana Valdemoros (ana.valdemoros@slcgov.com) for signature
2022-02-08 - 10:53:54 PM GMT
Email viewed by Ana Valdemoros (ana.valdemoros@slcgov.com)
2022-02-08 - 11:02:09 PM GMT
Document e-signed by Ana Valdemoros (ana.valdemoros@slcgov.com)
Signature Date: 2022-02-08 - 11:02:40 PM GMT - Time Source: server
Agreement completed.
2022-02-08 - 11:02:40 PM GMT