HomeMy WebLinkAbout03/08/2022 - Meeting MaterialsBoard of Directors of the
REDEVELOPMENT AGENCY OF
SALT LAKE CITY
AGENDA
March 8,2022 Tuesday 2:00 PM
Council Work Room
451 South State Street Room 326
Salt Lake City,UT 84111
SLCRDA.com
In accordance with State Statute,City Ordinance and Salt Lake City Council Policy,one or more RDA
Board Members may be connected via speakerphone.After 5:00 p.m.,please enter the City &County
Building through the main east entrance.
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:09:56:46
The RDA Board has returned to a hybrid meeting approach.The hybrid meeting
enables people joining remotely or in-person to listen to the Board meeting and
participate during public comment items.
Public Comments:The public can give comments to the Board during the
meetings online through Webex or in-person in Room 326 of the City and County
Building.In-person attendees can fill out a comment card and online participants
will register through Webex in order to be added to the comment queue.
Agenda &Registration Information:For more information,including
Webex connection information,please visit www.slc.gov/council/virtual-meetings.
(A phone line will also be available for people whose only option is to call in.)
Public Health Information:Masks are no longer required in City Facilities,
but are welcome for any attendees who prefer to continue using them.We will
continue to monitor the situation take any reasonable precautions for the public
and staff.
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 May 4,2021;May 18,2021;June 8,2021;
January 18,2022;and February 8,2022.
2.Resolution:Amendments to the Housing Development Loan
Program Follow-up
~2:10
p.m.
20 min.
The Board will receive a follow-up 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.
3.Informational:Housing Development Funding Strategy for Fiscal
Year 2022-23
~2:30
p.m.
20 min.
The Board will receive an introductory briefing about the proposed Housing Development
Funding Strategy for Fiscal Year 2022-23.The Housing Development Funding Strategy
includes:a projected amount of revenue to be allocated to each Housing Fund for the
upcoming fiscal year;proposed housing funding priorities for the upcoming fiscal year;
and,the proposed funding allocations for specific housing activities for the upcoming
fiscal year.
4.Resolution:RDA Budget Amendment No.2 for Fiscal Year 2021-22 ~2:50 p.m.
45 min
The Board will receive a briefing about a resolution that would amend the final budget of
the Redevelopment Agency of Salt Lake City for Fiscal Year 2021-22.Budget amendments
happen several times each year to reflect adjustments in the Redevelopment Agency’s
budget,including proposed project additions and modifications,and staffing changes.The
amendment includes funding for development around the Ballpark,an accessory dwelling
unit pilot program in the 9-Line project area,and transferring the Housing Trust Fund to
the RDA among other items.
5.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.
6.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;
•Staff Updates;
•Project Status;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:
1.Set Date -Resolution:RDA Budget Amendment No.2 for Fiscal Year 2021-22 -
-
The Board will set the date of Tuesday,April 12,2022 at 2 p.m.to accept public comment
about,and consider adopting a resolution that would amend the final budget of the
Redevelopment Agency of Salt Lake City for Fiscal Year 2021-22.Budget amendments
happen several times each year to reflect adjustments in the Redevelopment Agency’s
budget,including proposed project additions and modifications,and staffing changes.The
amendment includes funding for development around the Ballpark,an accessory dwelling
unit pilot program in the 9-Line project area,and transferring the Housing Trust Fund to
the RDA among other items.
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 Thursday,March 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.
The City &County Building is an accessible facility.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.
PENDING MINUTES –NOT APPROVED
The Local Building Authority,the Redevelopment Agency,and the Salt Lake City Council of Salt
Lake City,Utah met in Formal Session on Tuesday,May 18,2021 in an Electronic Meeting,
pursuant to the Redevelopment Agency and City Council Chairs’determination.
The following Board Directors/Council Members were present:
Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers,
Dennis Faris
Present Legislative leadership:
Cindy Gust-Jenson,Executive Director;Jennifer Bruno,Deputy Director;Lehua
Weaver,Associate Deputy Director
Present Administrative leadership:
Mayor Erin Mendenhall;Rachel Otto,Chief of Staff;Lisa Shaffer,Chief Administrative Officer;
Danny Walz,Redevelopment Agency Chief Operating Officer
Present City Staff:
Katherine Lewis –City Attorney,Cindy Lou Trishman –City Recorder,Ben Luedtke –Senior
Public Policy Analyst,Brian Fullmer –Constituent Liaison,Policy Analyst,Robert Nutzman
–Administrative Assistant,Taylor Hill –Council Office
Council Member Amy Fowler presided at and conducted the meeting.
The meeting was called to order at 7:00 pm
A.LBA OPENING CEREMONY:
1.Council/Board Member Amy Fowler will conduct the formal meetings.
Minutes:
Council Member Fowler welcomed everyone in attendance to the meeting.
2.Pledge of Allegiance.
Minutes:
A moment of silence was held while the American Flag and Pledge text was displayed on
the screen.
3.Welcome and Public Meeting Rules.
Minutes:
Councilmember Fowler reviewed the rules of decorum.
B.LBA PUBLIC HEARINGS:
1.Resolution:Budget for the Capital Projects Fund of the Local Building
Authority for Fiscal Year 2021-22
The Board will accept public comment and consider approving a resolution
adopting the final budget for the Capital Projects Fund of the Local Building
Authority of Salt Lake City for Fiscal Year 2021-22.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 and Tuesday,
June 1,2021 at 7 p.m.
TENTATIVE Action -TBD
Staff Recommendation -Close hearing and refer to public hearing
on June 1,2021
Minutes:
Jennifer Bruno clarified that the Local Building Authority budget was related to the
Glendale and Marmalade Libraries as Capital Projects by the Local Building Authority for
Fiscal Year 2021-22.
Deborah Chaltron spoke to the need to keep the tennis courts at Liberty Park;it kept
her connected to her community and requested support for the funding for the tennis
facilities.
Motion:
Moved by Board Member Rogers,seconded by Board Member Dugan to close
this public hearing and refer to the public hearing on June 1,2021.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers,
Dennis Faris
Final Result:7 –0 Pass
C.LBA NEW BUSINESS
1.Resolution:Electronic Meetings
The Board will consider adopting a resolution which permits the Local Building
Authority Board of Directors to meet electronically pursuant to the Utah Open and
Public Meetings Act.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -n/a
Set Public Hearing Date -n/a
Hold hearing to accept public comment -n/a
TENTATIVE Action -Tuesday,May 18,2021
Staff Recommendation -Refer to motion sheet(s).
Motion:
Moved by Board Member Rogers,seconded by Board Member Dugan to adopt
Resolution 2 of 2021,which permits the Local Building Authority Board of
Directors to meet electronically pursuant to the Utah Open Public Meetings
Act
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers,
Dennis Faris
Final Result:7 –0 Pass
D.LBA ADJOURNMENT:
Motion:
Moved by Board Member Rogers,seconded by Board Member Wharton to adjourn
and reconvene as the Redevelopment Agency Board.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers,Dennis
Faris
Final Result:7 –0 Pass
REDEVELOPMENT AGENCY of
SALT LAKE CITY,UTAH MEETING
Please note:Dates not identified in the FYI -Project Timeline are either not applicable or not yet
determined.
E.RDA PUBLIC HEARINGS:
1.Resolution:Budget for the Redevelopment Agency of Salt Lake City for
Fiscal Year 2021-22
The Board will accept public comment and consider approving a resolution
adopting the final budget for the Redevelopment Agency of Salt Lake City for Fiscal
Year 2021-22.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,May 18,2021
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 and Tuesday,
June 1,2021 at 7 p.m.
TENTATIVE Action -TBD
Staff Recommendation -Close hearing and refer to public hearing
on June 1,2021
Minutes:
Jennifer Bruno presented the Budget for the Redevelopment Agency of Salt Lake City
for Fiscal Year 2021-22.
George Chapman spoke to the Redevelopment Agency and the implementation of their
goals,the need for funding for parks and affordable housing,smaller sidewalks should not
be allowed in the City.
Motion:
Moved by Board Member Dugan,seconded by Board Member Valdemoros to
close the public hearing and refer to the public hearing on June 1,2021
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers,
Dennis Faris
Final Result:7 –0 Pass
F.RDA ADJOURNMENT:
Motion:
Moved by Board Member Rogers,seconded by Board Member Wharton to adjourn
the Redevelopment Agency and reconvene as the City Council.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers,Dennis
Faris
Final Result:7 –0 Pass
SALT LAKE CITY COUNCIL MEETING
Please note:Dates not identified in the FYI -Project Timeline are either not applicable or not yet
determined.
G.OPENING CEREMONY:
1.The Council will approve the work session meeting minutes of Tuesday,January
12,2021;February 2,2021;and Tuesday,February 9,2021.
Motion:
Moved by Council Member Rogers,seconded by Council Member Dugan to
approve the Work Session meeting minutes of Tuesday,January 12,2021;
February 2,2021 and February 9,2021.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers,
Dennis Faris
Final Result:7 –0 Pass
H.PUBLIC HEARINGS:
1.Ordinance:Learned Alley Vacation (1025 West North Temple and 1022,
1028,1030,and 1032 West Learned Avenue)
The Council will accept public comment and consider adopting an ordinance that
would vacate a City-owned alley adjacent to properties at 1025 West North Temple
and 1022,1028,1030 and 1032 West Learned Avenue.The applicant petitioned to
vacate the 180-foot long section of public alley to consolidate the properties
immediately abutting the alley.If approved,the applicant plans to consolidate the
lots adjacent to the alley and construct a multi-family residential structure.The
proposed project would still need to meet relevant zoning requirements and the
applicant would need to submit a separate petition.The closure will not impact
traffic or access.Petition No.:PLNPCM2020-00572.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,April 6,2021
Set Public Hearing Date -Tuesday,April 6,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 at 7 p.m.
TENTATIVE Council Action -Tuesday,June 1,2021
Staff Recommendation -Refer to motion sheet(s).
Minutes:
Brian Fullmer presented the Learned Alley Vacation (1025 West North Temple and
1022,1028,1030 and 1032 West Learned Avenue).
Carolyn Fleming spoke in favor of the proposal.
Morgan Call spoke in opposition to the ordinance.
Pachuco Lautaro requested the Council deny the ordinance.
John Kivlovitz stated the development was destroying a community that had been there
for years.
Devin O’Donnell asked the Council to find a better solution for the property,affordable
housing was not promised,the projects kept moving residents and not finding solutions.
Taylor Monney stated the ordinance would allow further gentrification of the
community and urged the Council to vote no on the ordinance.
Anne Charles stated this was not wanted by members of the community and would
further hurt the community.
Riley Rogers stated he understood the concerns of the community,residents were paid
for the properties,assisted with moving and everyone was able to find better housing than
what they were currently living in.
Emily Alworth spoke in opposition to the ordinance and alley vacation and said people
in the community were speaking out against this ordinance and did not want the
development.
Motion:
Moved by Council Member Rogers,seconded by Council Member Mano to
close the Public Hearing and defer action to a future Council meeting.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers,
Dennis Faris
Final Result:7 –0 Pass
2.Ordinance:Fern Subdivision Alley Vacation
The Council will accept public comment and consider adopting an ordinance that
would vacate a City-owned alley known as the Fern Subdivision Alley,located
between 1000 East and 1100 East and between Wood Avenue and Logan Avenue.
The east-west portion of the alley runs behind eight homes between 1019 East and
1053 East Logan Avenue.Petition No.:PLNPCM2018-0046
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,April 6,2021
Set Public Hearing Date -Tuesday,April 6,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 at 7 p.m.
TENTATIVE Council Action -Tuesday,June 1,2021
Staff Recommendation -Refer to motion sheet(s).
Minutes:
Brian Fullmer presented the Fern Subdivision Alley Vacation.
Devin O’Donnell asked why the alley needed to be vacated and what the alley would be
used for.
Kathleen A.Bratcher reviewed the reasoning for vacating the alley and using it for
access to adjacent properties.
Rachel Bicknell spoke in support of vacating the alley as it would create a quiet and
secure location.
Joshua Lenhart spoke in support of the ordinance,asked that once the alley was
vacated the property lines did not get moved.
Janet Cortez suggested that the alley be maintained to help traffic congestion.
Roni Danish spoke in favor of vacating the alley,said it would be good for the City
and help control the crime in the area.
Motion:
Moved by Council Member Rogers,seconded by Council Member Dugan to
close the Public Hearing and defer action to a future Council meeting.
AYE:Amy Fowler,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers,Dennis Faris
ABSENT:Ana Valdemoros
Final Result:6 –0 Pass
3.Ordinance:Budget Amendment No.9 for Fiscal Year 2020-21
The Council will accept public comment and consider adopting an ordinance
amending the final budget of Salt Lake City,including the employment staffing
document,for Fiscal Year 2020-21.The proposed amendment includes funding for
building office space to accommodate expansion of the Emergency Management
Division,technology upgrades for the 911 Department,and reimbursements to the
Fire Department,among other changes.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,May 4,2021
Set Public Hearing Date -Tuesday,May 4,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 at 7 p.m.
TENTATIVE Council Action -Tuesday,June 1,2021
Staff Recommendation -Refer to motion sheet(s).
Ordinances listed below (H4-H15)are associated with the
implementation of the Mayor’s Recommended Budget for Salt Lake
City,including the Library Fund,for the Fiscal Year (FY)2021-22.All
ordinances will be heard as one public hearing item during the May
18th and June 1st public hearings.
Minutes:
Ben Luedtke presented Budget Amendment No.9 for Fiscal Year 2020-21.
Anne Charles spoke to the Raise Up SLC funds that were not allocated and urged the
Council to allocate the funding to individuals that needed it;expressed opposition to
the Convention hotel tax incentives.
George Chapman stated refunding police impact fees to developers was not the answer,
providing the east side police precinct should be a higher priority.
Emily Alworth stated impact fees were mismanaged and police funds needed to be
reviewed.
Motion:
Moved by Council Member Rogers,seconded by Council Member Dugan to
continue the public hearing to June 1,2021.
AYE:Amy Fowler,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers,Dennis Faris
ABSENT:Ana Valdemoros
Final Result:6 –0 Pass
4.Ordinance:Appropriating Necessary Funds to Implement Provisions
of an MOU between Salt Lake City and AFSCME for Fiscal Year 2021-22
The Council will accept public comment and consider adopting an ordinance
appropriating necessary funds to implement,for Fiscal Year 2021-22,the
provisions of the Memorandum of Understanding (MOU)between Salt Lake City
Corporation and the American Federation of State,County,and Municipal
Employees (AFSCME)Local 1004,representing eligible employees.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 and Tuesday,
June 1,2021 at 7 p.m.
TENTATIVE Council Action -TBD
Staff Recommendation -Close hearing and refer to public hearing
on June 1,2021
5.Ordinance:Approving an MOU between Salt Lake City and the
International Association of Firefighters for Fiscal Year 2021-22
The Council will accept public comment and consider adopting an ordinance
approving a Memorandum of Understanding (MOU)between Salt Lake City
Corporation and the International Association of Firefighters Local 81,
representing eligible employees pursuant to the Collective Bargaining and
Employee Representation Joint Resolution dated March 22,2011,which shall
become effective on proper ratification and signature.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 and Tuesday,
June 1,2021 at 7 p.m.
TENTATIVE Council Action -TBD
Staff Recommendation -Close hearing and refer to public hearing
on June 1,2021
6.Ordinance:Appropriating Necessary Funds to Implement Provisions
of the MOU between Salt Lake City and the International Association of
Firefighters for Fiscal Year 2021-22
The Council will accept public comment and consider adopting an ordinance
appropriating the necessary funds to implement,for Fiscal Year 2021-22,the
provisions of the Memorandum of Understanding (MOU)between Salt Lake City
Corporation and the International Association of Firefighters Local 81,
representing eligible employees.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 and Tuesday,
June 1,2021 at 7 p.m.
TENTATIVE Council Action -TBD
Staff Recommendation -Close hearing and refer to public hearing
on June 1,2021
7.Ordinance:Compensation Plan for All Non-represented employees of
Salt Lake City for Fiscal Year 2021-22
The Council will accept public comment and consider adopting an ordinance
approving a compensation plan for all non-represented employees of Salt Lake
City.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 and Tuesday,
June 1,2021 at 7 p.m.
TENTATIVE Council Action -TBD
Staff Recommendation -Close hearing and refer to public hearing
on June 1,2021
8.Ordinance:Appropriating Necessary Funds to Implement Provisions
of the MOU between Salt Lake City and the Salt Lake City Police
Association for Fiscal Year 2021-22
The Council will accept public comment and consider adopting an ordinance
appropriating necessary funds to implement,for Fiscal Year 2021-22,the
provisions of the Memorandum of Understanding (MOU)between Salt Lake City
Corporation and the Salt Lake Police Association,representing eligible employees.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 and Tuesday,
June 1,2021 at 7 p.m.
TENTATIVE Council Action -TBD
Staff Recommendation -Close hearing and refer to public hearing
on June 1,2021
9.Ordinance:Approving an MOU between Salt Lake City and the Salt
Lake City Police Association
The Council will accept public comment and consider adopting an ordinance
approving a Memorandum of Understanding (MOU)between Salt Lake City and
the Salt Lake City Police Association,representing eligible employees for Fiscal
Year 2021-22.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 and Tuesday,
June 1,2021 at 7 p.m.
TENTATIVE Council Action -TBD
Staff Recommendation -Close hearing and refer to public hearing
on June 1,2021
10.Ordinance:Adopting the rate of tax levy,including the levy for the
Library Fund,for Fiscal Year 2021-22
The Council will accept public comment and consider approving an ordinance
adopting the rate of tax levy,including the levy for the Library Fund,upon all real
and personal property within Salt Lake City made taxable by law for Fiscal Year
2021-22.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 and Tuesday,
June 1,2021 at 7 p.m.
TENTATIVE Council Action -TBD
Staff Recommendation -Close hearing and refer to public
hearing on June 1,2021
11.Ordinance:Adopting the Budget for the Library Fund of Salt Lake City,
Utah for Fiscal Year 2021-22
The Council will accept public comment and consider approving an ordinance
adopting the budget for the Library Fund of Salt Lake City,Utah for Fiscal Year
2021-22.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 and Tuesday,
June 1,2021 at 7 p.m.
TENTATIVE Council Action -TBD
Staff Recommendation -Close hearing and refer to public hearing
on June 1,2021
12.Ordinance:Amendments to the Salt Lake City Consolidated Fee
Schedule for Fiscal Year 2021-22
The Council will accept public comment and consider approving an ordinance
amending various fees and fee information set forth in the Salt Lake City
Consolidated Fee Schedule.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 and Tuesday,
June 1,2021 at 7 p.m.
TENTATIVE Council Action -TBD
Staff Recommendation -Close hearing and refer to public
hearing on June 1,2021
13.Ordinance:Work in the Public Way Fees
The Council will accept public comment and consider adopting an ordinance
amending sections of the Salt Lake City Code relating to definitions and fees of
work in the public way.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 and Tuesday,
June 1,2021 at 7 p.m.
TENTATIVE Council Action -TBD
Staff Recommendation -Refer to motion sheet(s).
14.Ordinance:City Departments Organizational Changes
The Council will accept public comment and consider adopting an ordinance
amending sections of the Salt Lake City Code relating to the organizational
changes with the Department of Public Services,the proposed Department of
Public Lands,and the Department of Community and Neighborhoods (CAN).The
Mayor's proposed budget would transfer the Engineering Division and Youth and
Family Division between the CAN and Public Services Departments.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 and Tuesday,
June 1,2021 at 7 p.m.
TENTATIVE Council Action -TBD
Staff Recommendation -Refer to motion sheet(s).
15.Ordinances relating to the Fiscal Year 2021-22 City Budget,excluding
the budget for the Library Fund
The Council will accept public comment and consider approving an ordinance
adopting the budget for Salt Lake City,Utah,excluding the budget for the Library
Fund which is separately adopted,and the employment staffing document of Salt
Lake City,Utah for Fiscal Year 2021-22.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 and Tuesday,
June 1,2021 at 7 p.m.
TENTATIVE Council Action -TBD
Staff Recommendation -Close hearing and refer to public
hearing on June 1,2021
This concludes the public hearings for the Mayor's Recommended
Budget for Salt Lake City,including the Library Fund,for FY 2021-22.
All ordinances will be heard as one public hearing item during the
May 18th and June 1st public hearings.
Minutes:
Jennifer Bruno presented the following items:
4.Appropriating Necessary Funds to Implement Provisions of an MOU between Salt
Lake City and AFSCME for Fiscal Year 2021-22
5.Approving an MOU between Salt Lake City and the International Association of
Firefighters for Fiscal Year 2021-22
6.Appropriating Necessary Funds to Implement Provisions of the MOU between Salt
Lake City and the International Association of Firefighters for Fiscal Year 2021-22
7.Compensation Plan for All Non-represented employees of Salt Lake City for Fiscal
Year 2021-22
8.Appropriating Necessary Funds to Implement Provisions of the MOU between Salt
Lake City and the Salt Lake City Police Association for Fiscal Year 2021-22
9.Approving an MOU between Salt Lake City and the Salt Lake City Police Association
10.Adopting the rate of tax levy,including the levy for the Library Fund,for Fiscal Year
2021-22
11.Adopting the Budget for the Library Fund of Salt Lake City,Utah for Fiscal Year
2021-22
12.Amendments to the Salt Lake City Consolidated Fee Schedule for Fiscal Year
2021-22
13.Work in the Public Way Fees
14.City Departments Organizational Changes
15.Ordinances relating to the Fiscal Year 2021-22 City Budget,excluding the budget for
the Library Fund
Council Member Fowler stated additional work session meetings in 2021 would be held
for the budget on:May 25,June 1,June 3,and one additional in June (TBD)before the
budget was adopted.
George Chapman spoke to the need to increase funding for police officers;City should
stop using consultants;pocket libraries were needed;suggested separating budget items
to allow the public to comment on each item.
Tyeer Houser asked the Council to support the budget for the Liberty Hills tennis
courts.
Kali Mower spoke to the CIP budget recommendation for Odyssey House that was
underfunded by $200k and expressed concern about the general safety of the people that
used the services due to the buildings condition.
Ainsley Moench spoke to de-funding the police.
Anne Charles stated the Odyssey House needed additional funding and increasing the
police budget did not reconstruct the system.
Emily Alworth spoke in opposition to the increase of funding for the police
department.
Deborah Chaltron stated tennis centers were in need of attention and it was time for
the City to invest in their amenities.
Motion:
Moved by Council Member Rogers,seconded by Council Member Mano to
close the Public Hearings for items H4-H15 and refer to the public Hearings
on June 1,2021.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers,
Dennis Faris
Final Result:7 –0 Pass
I.POTENTIAL ACTION ITEMS:
1.Ordinance:Budget Amendment No.8 for Fiscal Year 2020-21
The Council will consider adopting an ordinance amending the final budget of Salt
Lake City,including the employment staffing document,for Fiscal Year 2020-21.
The proposed amendment includes funding for Crisis Intervention Team (CIT)
training certifications and re-certifications,hiring a class of lateral police officers,
and a donation to Switchpoint to create a shelter for low-income seniors and
veterans,among other changes.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,April 20,2021
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 4,2021 at 7 p.m.
TENTATIVE Council Action -Tuesday,May 18,2021
Staff Recommendation -Refer to motion sheet(s).
Motion:
Moved by Council Member Rogers,seconded by Council Member Mano to
adopt Ordinance 15 of 2021,amending the FY 2020-21 final budget of Salt
Lake City including the employment staffing document.
•A-1:Hire Lateral Class of Police Officers –($314,899 –Fund Balance)
•A-2:Crisis Intervention Team (CIT)Training for Police Department –
($117,400 –General Fund
•$322,800 Training Holding Account)
•A-3:Donation to Switchpoint to Create Shelter for Low-Income Seniors
and Veterans –($2 million;–
•$1 million each from General Fund’s Fund Balance and Funding Our
Future’s Fund Balance
•I-1:(Tentative)Ranked Choice Voting (RCV)($100,000 –$50,000 from
Fund Balance and $50,000 budget created to accept external funding)
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
ABSTAIN:Dennis Faris
Final Result:6 –0 Pass
2.Ordinance:2058 North 2200 West Zoning Map Amendment
The Council will consider adopting an ordinance that would rezone property at
2058 North 2200 West from Agricultural District (AG-2)to Light Manufacturing
(M-1).The amendment would accommodate future commercial land uses such as
retail and service type businesses not permitted under the current zoning.No
specific site development proposal has been submitted at this time.Although the
applicant has requested that the property be rezoned to M-1,consideration may be
given to rezoning the property to another zoning district with similar
characteristics.Petition No.PLNPCM2018-00657.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,March 26,2019 and Tuesday,May 4,2021
Set Public Hearing Date -Tuesday,June 11,2019
Hold hearing to accept public comment -Tuesday,July 9,2019 at 7 p.m.
TENTATIVE Council Action -Tuesday,May 18,2021
Staff Recommendation -Refer to motion sheet(s).
Motion:
Moved by Council Member Rogers,seconded by Council Member Dugan to
adopt Ordinance 16 of 2021,amending the zoning map pertaining to the
parcel at approximately 2058 North 2200 West from AG-2,Agricultural to
M-1,Manufacturing.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
ABSTAIN:Dennis Faris
Final Result:6 –0 Pass
J.COMMENTS:
1.Questions to the Mayor from the City Council.
Minutes:
There were no questions.
2.Comments to the City Council.(Comments are taken on any item not scheduled for
a public hearing,as well as on any other City business.Comments are limited to
two minutes.)
Minutes:
Beverly Cooper,Hilary Jacobs,Daniel Schelling,Steven Stepanek,Debbie
Feder,and Scott Williams spoke about the Foothills trails projects,trails needing to be
done correctly and accountability emphasized,requested the Council halt construction for
further assessments and proper discovery,to reconsider the plan,protect the area and
revegetate what had been removed.
Natalia Southham,Anne Charles,Chris Butler,Alexandra Paretta,and Josh
Campbell spoke to de-funding police and using the funds to subsidize housing for the
unsheltered community,lack of usefulness of the police presence,and funding adjusted to
employ social workers.
Mark Barrett spoke to the issues with animal control services,tethering animals should
not be regulated when an animal was on its own property and enjoyed being outside.
George Chapman spoke in support of funding the police,social workers were not
appropriate for homeless issues where drugs were involved;needed properly trained
police officers that know how to address mental health issues.
Council and Staff discussed access to the police documents and the current pause for
assessment regarding the Foothills trail plan.
K.NEW BUSINESS:
1.Advice and Consent:Debbie Lyons –Director of Sustainability
The Council will consider approving the appointment of Debbie Lyons as the
Director of the Sustainability Department.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,May 18,2021
Set Public Hearing Date -n/a
Hold hearing to accept public comment -n/a
TENTATIVE Council Action -Tuesday,May 18,2021
Staff Recommendation -Suspend the rules and consider motions.
Motion:
Moved by Council Member Wharton,seconded by Council Member Dugan to
approve advice and consent of Debbie Lyons as the Director of Sustainability.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers,
Dennis Faris
Final Result:7 –0 Pass
L.UNFINISHED BUSINESS:
1.Ordinance:SQF,LLC Master License Agreement for Small Cell
Installation in the Right-of-Way
The Council will consider adopting an ordinance that would grant a master license
agreement for wireless facilities in the public way to SQF,LLC,a Delaware limited
liability company.The agreement would allow this small cell provider to install and
maintain small cell infrastructure within the City rights-of-way,subject to
conditions in the agreement and after securing specific site approvals.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,May 11,2021
Set Public Hearing Date -n/a
Hold hearing to accept public comment -n/a
TENTATIVE Council Action -Tuesday,May 18,2021
Staff Recommendation -Refer to motion sheet(s).
Motion:
Moved by Council Member Wharton,seconded by Council Member Rogers to
adopt Ordinance 17 of 2021,granting a Master License Agreement to SQF,
LLC.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
ABSTAIN:Dennis Faris
Final Result:6 –0 Pass
2.Ordinance:SQF,LLC Telecommunications Franchise Agreement
The Council will consider adopting an ordinance that would grant a
telecommunication franchise agreement to SQF,LLC.The agreement would allow
the company to place its facilities within the City rights-of-way,governed by
certain conditions and after securing permits,and provides for the payment of the
telecommunications tax pursuant to State statute.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,May 11,2021
Set Public Hearing Date -n/a
Hold hearing to accept public comment -n/a
TENTATIVE Council Action -Tuesday,May 18,2021
Staff Recommendation -Refer to motion sheet(s).
Motion:
Moved by Council Member Rogers,seconded by Council Member Mano to
adopt Ordinance 18 of 2021,granting a Telecommunication Franchise
Agreement to SQF,LLC.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
ABSTAIN:Dennis Faris
Final Result:6 –0 Pass
3.Ordinance:Google Fiber Utah Amended and Restated Broadband
Services Franchise
The Council will consider adopting an ordinance that would approve an amended
and restated broadband services franchise agreement to Google Fiber Utah,LLC.
Google Fiber intends to discontinue video services to its customer base.The
amended and restated franchise agreement has been negotiated to omit video
services,change the fee structure and authorize broadband for a 15-year term.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,May 11,2021
Set Public Hearing Date -n/a
Hold hearing to accept public comment -n/a
TENTATIVE Council Action -Tuesday,May 18,2021
Staff Recommendation -Refer to motion sheet(s).
Motion:
Moved by Council Member Rogers,seconded by Council Member Mano to
adopt Ordinance 19 of 2021,approving the Amended and Restated Broadband
Services Franchise agreement with Google Fiber Utah,LLC.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
ABSTAIN:Dennis Faris
Final Result:6 –0 Pass
4.Resolution:Housing Trust Fund Loan Amendment to Garden Lofts
Holdings,LP,at 154 West 600 South
The Council will consider adopting a resolution that would authorize two changes
to the original loan agreement between the City’s Housing Trust Fund and Garden
Lofts Holding,LP.The loan was originally granted in December 2017 to help fund
an affordable multi-family development that consists of 272 units,all at or below
60%of the Area Median Income (AMI).The proposed amendments would change
future rental rates to reflect an “income-averaging”approach,as well as the City’s
loan position,which would shift to third,behind a new private loan to the
developers to cover increased construction charges.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,May 11,2021
Set Public Hearing Date -n/a
Hold hearing to accept public comment -n/a
TENTATIVE Council Action -Tuesday,May 18,2021
Staff Recommendation -Refer to motion sheet(s).
Motion:
Moved by Council Member Rogers,seconded by Council Member Mano to
adopt Resolution 18 of 2021,authorizing the loan amendment from the
Housing Trust Fund to Garden Lofts Holdings,LP.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers,
Dennis Faris
Final Result:7 –0 Pass
M.CONSENT:
1.Ordinance:Library Budget Amendment No.2 for Fiscal Year 2020-21
The Council will set the date of Tuesday,June 8,2021 to accept public comment
and consider adopting an ordinance that would amend the budget for the Library
Fund for Fiscal Year 2020-21.Budget amendments happen several times each year
to reflect adjustments to the City’s budgets,including proposed project additions
and modifications.The proposed amendment includes a request to increase the
Library’s General Fund budget to account for pass-through property tax revenue
collected by Salt Lake County which goes directly to the Utah Inland Port Authority
and the Convention Facility.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,May 18,2021
Set Public Hearing Date -Tuesday,May 18,2021
Hold hearing to accept public comment -Tuesday,June 8,2021 at 7 p.m.
TENTATIVE Council Action -TBD
Staff Recommendation -Set date.
Motion:
Moved by Council Member Rogers,seconded by Council Member Wharton to
approve the consent agenda.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers,Dennis
Faris
Final Result:7 –0 Pass
N.ADJOURNMENT:
Meeting adjourned at 9:15 pm
Minutes Approved
_______________________________
Local Building Authority
_______________________________
Redevelopment Agency Chair
_______________________________
City Council Chair
_______________________________
City Recorder
This document is not intended to serve as a full transcript as other items may have been
discussed;please refer to the audio or video for entire content pursuant to Utah Code
§52-4-203(2)(b).
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 constitutes the official minutes of the City
Council Formal Session meeting held Tuesday,May 18,2021.
PENDING MINUTES –NOT APPROVED
The Local Building Authority,the Redevelopment Agency,and the Salt Lake City Council of Salt
Lake City,Utah met in Formal Session on Tuesday,June 8,2021 in an Electronic Meeting,
pursuant to the Redevelopment Agency and City Council Chairs’determination.
The following Board Directors/Council Members were present:
Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers,
Dennis Faris
Present Legislative leadership:
Cindy Gust-Jenson,Executive Director;Jennifer Bruno,Deputy Director;Lehua
Weaver,Associate Deputy Director
Present Administrative leadership:
Mayor Erin Mendenhall;Rachel Otto,Chief of Staff;Lisa Shaffer,Chief Administrative Officer;
Danny Walz,Redevelopment Agency Chief Operating Officer
Present City Staff:
Katherine Lewis –City Attorney,Cindy Lou Trishman –City Recorder,DeeDee Robinson
–Minutes and Records Clerk,Robert Nutzman –Administrative Assistant,Russell Weeks
–Senior Advisor,Taylor Hill –Council Staff
Councilmember Amy Fowler presided at and conducted the meeting.
The meeting was called to order at 7:00 pm
A.OPENING CEREMONY:
1.Council Member Amy Fowler will conduct the formal meeting.
Minutes:
Councilmember Fowler welcomed attendees and began the meeting.
2.Pledge of Allegiance.
Minutes:
A moment of silence was held while the American Flag and Pledge text was displayed on
the screen.
3.Welcome and Public Meeting Rules.
Minutes:
Councilmember Fowler welcomed attendees to the meeting and gave a brief discription of
the meeting rules.
4.The Council will approve the work session meeting minutes of Tuesday,October
13,2020 and Tuesday,October 20,2020.
Motion:
Moved by Councilmember Rogers,seconded by Councilmember Dugan to
Motion to Approve the work session meeting minutes of Tuesday,October 13,
2020 and Tuesday,October 20,2020.
AYE:Amy Fowler,Ana Valdemoros,Daniel Dugan,Darin Mano,James Rogers,Dennis
Faris
ABSENT:Chris Wharton
Final Result:6 –0 Pass
B.PUBLIC HEARINGS:
1.Ordinance:Library Budget Amendment No.2 for Fiscal Year 2020-21
The Council will accept public comment and consider adopting an ordinance that
would amend the budget for the Library Fund for Fiscal Year 2020-21.Budget
amendments happen several times each year to reflect adjustments to the City’s
budgets,including proposed project additions and modifications.The proposed
amendment includes a request to increase the Library’s General Fund budget to
account for pass-through property tax revenue collected by Salt Lake County which
goes directly to the Utah Inland Port Authority and the Convention Facility.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,May 18,2021
Set Public Hearing Date -Tuesday,May 18,2021
Hold hearing to accept public comment -Tuesday,June 8,2021 at 7 p.m.
TENTATIVE Council Action -Tuesday,June 15,2021
Staff Recommendation -Refer to motion sheet(s).
Minutes:
Russell Weeks reviewed the proposed ordinance for the Library Budget Amendment
No.2 for fiscal year 2020-21.
Annie Charles expressed concern over the proposed budget amendment specifically
funding the inland port and convention hotel.
Emily Alworth spoke in opposition to funding earmarked for the library being used for
the inland port and asked Council to defund the police.
Hailey Lumber suggested increasing the library funds to serve the community.
Motion:
Moved by Councilmember Rogers,seconded by Councilmember Dugan to
Close the Public Hearing and consider the ordinance at a future meeting.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James
Rogers,Dennis Faris
Final Result:7 –0 Pass
C.POTENTIAL ACTION ITEMS:
NONE.
D.COMMENTS:
NONE.
E.NEW BUSINESS:
NONE.
F.UNFINISHED BUSINESS:
NONE.
G.CONSENT:
1.Resolution:Capital Improvement Program Projects
The Council will set the dates of Tuesday,July 13,2021 at 7 p.m.and Tuesday,
August 17,2021 at 6 p.m.to accept public comment and consider adopting a
resolution for project funding allocations in the Capital Improvement Program,
which involves the construction,purchase or renovation of buildings,parks,streets
or other physical structures.Generally,projects have a useful life of five or more
years and cost $50,000 or more.The Council approves debt service and overall CIP
funding in the annual budget process,while project-specific funding is approved by
September 1 of the same year.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,June 1,2021
Set Public Hearing Date -Tuesday,June 8,2021
Hold hearing to accept public comment -Tuesday,July 13,2021 at 7 p.m.and
Tuesday,August 17,2021 at 6 p.m.
TENTATIVE Council Action -TBD
Staff Recommendation -Set date.
2.Ordinance:Rezone at Approximately 860 and 868 East 3rd Avenue
The Council will set the date of July 13,2021 at 7 p.m.to accept public comment
and consider adopting an ordinance that would amend the zoning map for
property at 860 and 868 East 3rd Avenue.The proposal would rezone the parcels
from CN (Neighborhood Commercial District)and SR-1A (Special Development
Pattern Residential District)to R-MU-35 (Residential/Mixed Use District).The
applicant would like to build a multi-family development on the lots,however the
request is not tied to a development proposal.The properties are located within
the Avenues Local Historic District and any demolition or construction must be
approved by the Historic Landmark Commission.Consideration may be given to
rezoning the property to another zoning district with similar characteristics.Other
sections of Title 21A –Zoning may also be amended as part of this petition.
Petition No.:PLNPCM2020-00703
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,June 8,2021
Set Public Hearing Date -Tuesday,June 8,2021
Hold hearing to accept public comment -Tuesday,July 13,2021 at 7 p.m.
TENTATIVE Council Action -Tuesday,July 20,2021
Staff Recommendation -Set date.
3.Board Appointment:Police Civilian Review Board (PCRB)–Justin
Rodriguez
The Council will consider approving the appointment of Justin Rodriguez to the
PCRB for a term ending September 2,2024.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,June 8,2021
Set Public Hearing Date -n/a
Hold hearing to accept public comment -n/a
TENTATIVE Council Action -Tuesday,June 8,2021
Staff Recommendation -Approve.
4.Board Appointment:Police Civilian Review Board (PCRB)–Raheem
Bennett
The Council will consider approving the appointment of Raheem Bennett to the
PCRB for a term ending September 2,2024.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,June 8,2021
Set Public Hearing Date -n/a
Hold hearing to accept public comment -n/a
TENTATIVE Council Action -Tuesday,June 8,2021
Staff Recommendation -Approve.
5.Board Appointment:Housing Authority of Salt Lake City –Tina Padilla
The Council will consider approving the appointment of Tina Padilla to the
Housing Authority of Salt Lake City for a term ending June 8,2025.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,June 8,2021
Set Public Hearing Date -n/a
Hold hearing to accept public comment -n/a
TENTATIVE Council Action -Tuesday,June 8,2021
Staff Recommendation -Approve.
6.Board Appointment:Housing Authority of Salt Lake City –Amy
Hawkins
The Council will consider approving the appointment of Amy Hawkins to the
Housing Authority of Salt Lake City for a term ending June 8,2025.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,June 8,2021
Set Public Hearing Date -n/a
Hold hearing to accept public comment -n/a
TENTATIVE Council Action -Tuesday,June 8,2021
Staff Recommendation -Approve.
7.Board Reappointment:Planning Commission –Brenda Scheer
The Council will consider approving the reappointment of Brenda Scheer to the
Planning Commission for a term ending June 8,2025.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -n/a
Set Public Hearing Date -n/a
Hold hearing to accept public comment -n/a
TENTATIVE Council Action -Tuesday,June 8,2021
Staff Recommendation -Approve.
8.Board Reappointment:Bicycle Advisory Committee –Joshua Poppel
The Council will consider approving the reappointment of Joshua Poppel to the
Bicycle Advisory Committee for a term ending June 8,2024.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -n/a
Set Public Hearing Date -n/a
Hold hearing to accept public comment -n/a
TENTATIVE Council Action -Tuesday,June 8,2021
Staff Recommendation -Approve.
9.Board Reappointment:Housing Authority of Salt Lake City –Cindy
Gust-Jenson
The Council will consider approving the reappointment of Cindy Gust-Jenson to
the Housing Authority of Salt Lake City for a term ending June 8,2025.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -n/a
Set Public Hearing Date -n/a
Hold hearing to accept public comment -n/a
TENTATIVE Council Action -Tuesday,June 8,2021
Staff Recommendation -Approve.
Motion:
Moved by Councilmember Rogers,seconded by Councilmember Faris to approve the consent
agenda except item G-3 as the interview had not taken place.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers,
Dennis Faris
Final Result:7 –0 Pass
H.ADJOURNMENT:
Meeting adjourned at 7:25 pm
Minutes Approved:
_______________________________
Local Building Authority and City Council Chair
_______________________________
Redevelopment Agency Chair
_______________________________
City Recorder
This document is not intended to serve as a full transcript as other items may have been
discussed;please refer to the audio or video for entire content pursuant to Utah Code
§52-4-203(2)(b).
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 City Council
Work Session meeting held Tuesday,June 8,2021.
PENDING MINUTES –NOT APPROVED
The The Local Building Authority,the Redevelopment Agency,and the Salt Lake City Council of
Salt Lake City,Utah met in Formal Session on Tuesday,May 4,2021 in an Electronic Meeting,
pursuant to the Redevelopment Agency and City Council Chairs’determination and Salt Lake
City Emergency Proclamation No.2 of 2020(2)(b).
The following Board Directors/Council Members were present:
Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
Present Legislative leadership:
Cindy Gust-Jenson,Executive Director;Jennifer Bruno,Deputy Director;Lehua
Weaver,Associate Deputy Director
Present Administrative leadership:
Mayor Erin Mendenhall;Rachel Otto,Chief of Staff;Lisa Shaffer,Chief Administrative Officer;
Danny Walz,Redevelopment Agency Chief Operating Officer
Present City Staff:
Katherine Lewis –City Attorney,Cindy Lou Trishman –City Recorder,Ben Luedtke –Senior
Public Policy Analyst,Robert Nutzman –Administrative Assistant,Sylvia Richards –Public
Policy Analyst,Thais Stewart –Minutes &Records Clerk,Michelle Barney –Minutes &Records
Clerk,Taylor Hill –Council Staff
Council Member Fowler presided at and conducted the meeting.
The meeting was called to order at 7:00 pm
A.LBA OPENING CEREMONY:
1.Council/Board Member Amy Fowler Ana Valdemoros will conduct the formal
meetings.
Council Member Fowler welcomed everyone in attendance to the meeting.
2.Pledge of Allegiance.
A moment of silence was held while the American Flag and Pledge text was
displayed on the screen
3.Welcome and Public Meeting Rules.
Council Member Fowler stated the meeting rules would be reviewed during the
public comment portion of the meetng,as the Local Building Authority was not
accepting public comment.
The Local Building Authority convened.
B.LBA UNFINISHED BUSINESS:
1.Resolution:Tentative Budget for the Capital Projects Fund of the Local
Building Authority for Fiscal Year 2021-22
The Board will consider approving a resolution adopting the tentative budget for
the Capital Projects Fund of the Local Building Authority of Salt Lake City,Utah for
Fiscal Year 2021-22.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 and Tuesday,
June 1,2021 at 7 p.m.
TENTATIVE Action -Tuesday,May 4,2021
Staff Recommendation -Refer to motion sheet(s).
Motion:
Moved by Board Member Rogers,seconded by Board Member Dugan to
approve Resolution 1 of 2021,adopting the tentative budget for the Capital
Projects Fund of the Local Building Authority of Salt Lake City,Utah for Fiscal
Year 2021-22.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
Final Result:6 –0 Pass
C.LBA ADJOURNMENT:
Motion:
Moved by Board Member Rogers,seconded by Board Member Dugan to adjourn as
the Local Building Authority and convene as the Redevelopment Agency.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
Final Result:6 –0 Pass
REDEVELOPMENT AGENCY of
SALT LAKE CITY,UTAH MEETING
Please note:Dates not identified in the FYI -Project Timeline are either not applicable or not yet
determined.
D.RDA UNFINISHED BUSINESS:
1.Resolution:Tentative Budget for the Redevelopment Agency of Salt
Lake City for Fiscal Year 2021-22
The Board will consider approving a resolution adopting the tentative budget for
the Redevelopment Agency of Salt Lake City for Fiscal Year 2021-22.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 and Tuesday,
June 1,2021 at 7 p.m.
TENTATIVE Action -Tuesday,May 4,2021
Staff Recommendation -Refer to motion sheet(s).
Motion:
Moved by Board Member Rogers,seconded by Board Member Dugan to
approve Resolution R-9 of 2021,to adopt the tentative budget for the
Redevelopment Agency of Salt Lake City,Utah for Fiscal Year 2021-22.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
Final Result:6 –0 Pass
The Redevelopment Agency convened.
E.RDA ADJOURNMENT:
Motion:
Moved by Board Member Rogers,seconded by Board Member Wharton to adjourn
as Redevelopment Agency and convene as the Salt Lake City Council.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
Final Result:6 –0 Pass
SALT LAKE CITY COUNCIL MEETING
Please note:Dates not identified in the FYI -Project Timeline are either not applicable or not yet
determined.
F.OPENING CEREMONY:
1.The Council will approve the work session meeting minutes of Tuesday,September
1,2020 and Tuesday,October 6,2020.
Motion:
Moved by Council Member Rogers,seconded by Council Member Wharton to
approve the work session meeting minutes of Tuesday,September 1,2020
and Tuesday,October 6,2020.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
Final Result:6 –0 Pass
2.Mayor Mendenhall will present the proposed Salt Lake City budget,including the
Library Fund,for Fiscal Year 2021-22.
Mayor Mendenhall outlined the budget plan including topics of homeless
services,commitment to affordable housing,road improvement programs,social
workers employeed by the Police Department,and the implementation of the
Community Reinvestment Plan.
The City Council of Salt Lake City met in Formal Session.
G.PUBLIC HEARINGS:
Items G1-G6 will be heard as one public hearing
1.Grant Application:200 South Transit Priority Signal System –Transit
Transportation Investment Fund Grant
The Council will accept public comment for a grant application request from the
Division of Transportation to the Utah Department of Transportation (UDOT).If
awarded,this grant would fund the installation of a transit signal priority (TSP)
system,traffic signal upgrades,and transit-focused technology to allow the 200
South transit corridor to accommodate twelve bus routes with 1,100 bus trips per
day.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -n/a
Set Public Hearing Date -n/a
Hold hearing to accept public comment -Tuesday,May 4,2021 at 7 p.m.
TENTATIVE Council Action -n/a
Staff Recommendation -Close and refer to future consent agenda.
2.Grant Application:200 South Transit Hub End-of-Line Facilities -
Transit Transportation Investment Fund Grant
The Council will accept public comment for a grant application request from the
Division of Transportation to the Utah Department of Transportation (UDOT).If
awarded,this grant would fund the construction of bus parking and layover
infrastructure for the 200 South East Downtown Transit Hub.These amenities will
allow drivers to leave their vehicles and take a break between routes.The
Administration indicates the leasing,operating,and maintenance agreements
between the City and the Utah Transit Authority (UTA)are not yet determined.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -n/a
Set Public Hearing Date -n/a
Hold hearing to accept public comment -Tuesday,May 4,2021 at 7 p.m.
TENTATIVE Council Action -n/a
Staff Recommendation -Close and refer to future consent agenda.
3.Grant Application:North Temple Active Transportation –Transit
Transportation Investment Fund –First and Last Mile Grant
The Council will accept public comment for a grant application request from the
Division of Transportation to the Utah Department of Transportation (UDOT).If
awarded,this grant would fund the construction of a paved trail,improve and
shorten pedestrian crossings,widen sidewalks,and add trees and shading
elements for the five-block stretch of North Temple from the North Temple
Frontrunner stop to downtown Salt Lake City.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -n/a
Set Public Hearing Date -n/a
Hold hearing to accept public comment -Tuesday,May 4,2021 at 7 p.m.
TENTATIVE Council Action -n/a
Staff Recommendation -Close and refer to future consent agenda.
4.Grant Application:West Temple Walk Bike Transit Connections -
Transit Transportation Investment Fund-First and Last Mile Grant
The Council will accept public comment for a grant application request from the
Division of Transportation to the Utah Department of Transportation (UDOT).If
awarded,this grant would fund the addition of physically separated bike lanes,
pedestrian crossing improvements,and narrow pedestrian crossing distances with
curb extensions and refuge islands.These improvements will be made as part of
the West Temple Street Reconstruction scheduled for 2024.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -n/a
Set Public Hearing Date -n/a
Hold hearing to accept public comment -Tuesday,May 4,2021 at 7 p.m.
TENTATIVE Council Action -n/a
Staff Recommendation -Close and refer to future consent agenda.
5.Grant Application:Westpointe/Jordan Meadows Neighborhood Byway
Grant -Transit Transportation Investment Fund-First and Last Mile
Grant
The Council will accept public comment for a grant application request from the
Division of Transportation to the Utah Department of Transportation (UDOT).If
awarded,this grant would fund the construction of a north-south transportation
route through the Westpointe and Jordan Meadows neighborhoods running west
of and parallel to Redwood Road.Amenities planned for this location include mini-
roundabouts at larger street intersections,curb extension,bike ramps,bike lane
striping,speed humps,and wayfinding signage.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -n/a
Set Public Hearing Date -n/a
Hold hearing to accept public comment -Tuesday,May 4,2021 at 7 p.m.
TENTATIVE Council Action -n/a
Staff Recommendation -Close and refer to future consent agenda.
6.Grant Application:Parley’s Trail Gap in Sugar House –Transportation
Investment Fund-Active Transportation Grant
The Council will accept public comment for a grant application request from the
Division of Transportation to the Utah Department of Transportation (UDOT).If
awarded,this grant would fund the construction of a two-way bike facility in the
public right-of-way on the west side of Highland Drive,and the construction of
200 feet of a trail along Sugarmont Drive just west of Highland Drive.This work
will be completed as part of the reconstruction of Highland Drive planned for
2023.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -n/a
Set Public Hearing Date -n/a
Hold hearing to accept public comment -Tuesday,May 4,2021 at 7 p.m.
TENTATIVE Council Action -n/a
Staff Recommendation -Close and refer to future consent agenda.
Council Member Fowler outlined the Public Meeting Guidelines.
Sylvia Richards presented the grant applicatons for:
1.200 South Transit Priority Signal Sysytem –Transit Transportation
Investment Fund.
2.200 South Transit Hub End-of-Line Facilities –Transit Transportation
Investment Fund Grant
3.North Temple Active Transportation –Transit Transportation Investment
Fund –First and Last Mile Grant
4.West Temple Walk Bike Transit Connections –Transit Transportation
Investment Fund First and Last Mile Grant
5.Westpointe/Jordan Meadows Neightborhood Byway Grant –Transit
Transportation Investment fund –First and Last Mile Grant
6.Parley’s Trail Gap in Sugar House –Transportation Investment Fund –Active
Transportation Grant
George Chapman spoke to applications 1 and 3 regarding traffic issues and
vehicle pollution,limiting traffic on Capitol Hill was a must;application 2 –a
transit hub was useless for bus routes on 200 South,the money should be used for
street maintenance rather than for parking buses;application 4 regarding bike
lanes was not necessary;separated bike lanes were not a benefit to the City.
Emily Alworth spoke in support of application 1 for the transit priority signal
system,stating it might limit emissions through shared commuting.
Motion:
Moved by Council Member Dugan,seconded by Council Member Wharton to
close the public hearing and defer action to a future Consent agenda.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
Final Result:6 –0 Pass
7.Ordinance:Budget Amendment No.8 for Fiscal Year 2020-21
The Council will accept public comment and consider adopting an ordinance
amending the final budget of Salt Lake City,including the employment staffing
document,for Fiscal Year 2020-21.The proposed amendment includes funding for
Crisis Intervention Team (CIT)training certifications and re-certifications,hiring a
class of lateral police officers,and a donation to Switchpoint to create a shelter for
low-income seniors and veterans,among other changes.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,May 4,2021
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 4,2021 at 7 p.m.
TENTATIVE Council Action -Tuesday,May 18,2021
Staff Recommendation -Refer to motion sheet(s).
Ben Luedtke presented the Budget Amendment 8 for Fiscal Year 2020-2021
which included:
1.Hiring a lateral class of police officers
2.Critical response training police officers
3.$2M donation to create low-income housing for seniors and vets
4.Public Awareness Campaign funding for the City election method of Ranked
Choice Voting
Beverly Hawkins,Nigel Swaby,and George Champan expressed support,
including comments regarding lateral hires,increased critical response training,
supporting recommendations of the Racial Equity in Policing Commission,with
increased crime came an increased need for officers,low number of officers at
present with a concern for service,and to increase diversity in the police force.
Anne Charles spoke in opposition of the amendment for funding the police,
suggested money could go toward housing and mental health initiatives.
Emily Alworth spoke in opposition to the amendment,requested consideration
of community policing,and addressing the systematic issues causing the problems
Katie Mulligan spoke in opposition to the amendment,specifically the continual
increase to police funding despite a committment to re-evaluate services provided.
Council and Staff discussed the timeframe for approval of the budget specifically
the Overflow shelter and Police classes.
Council Member Rogers made a motion to close the public hearing and
adopt the ordinance amending the FY 2020-21 final budget,except for
Item I-1 which is the ranked choice voting awareness campaign
funding.
Speaking to the motion,Council Member Rogers indicated he disagreed with the
ranked choice voting approach and did not want to proceed with funding the item.
Council Member Fowler stated there was no second to the motion,so the motion
proposed failed.
Motion:
Moved by Council Member Wharton,seconded by Council Member Dugan to
close the public hearing and refer the item to a future date for action.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
Final Result:6 –0 Pass
H.POTENTIAL ACTION ITEMS:
NONE.
I.COMMENTS:
1.Questions to the Mayor from the City Council.
Council Member Rogers requested input from Mayor Mendenhall regarding her
opinion on the ranked choice voting method and funding.
Mayor Mendenhall stated that her belated caution was in direct relation to the
elimination of a Primary election.Mayor Mendenhall included,the Primary
election could be used a measuring guide for the candidates in their campaign
efforts.She additionally added that including the timeline of a campaign being
“shortened”by the timeline through the use of ranked choice voting did not
adequately convey the necessary time campaigning takes with the community.
Council Member Wharton expressed interest in the development process for the
Tiny Home Village,inquiring if public donation opportunities and engagement
had been considered.
Mayor Mendenhall shared that the Other Side Academy (contracted entity for the
Tiny Home Village)had an individual specifically designated for the coordination
and her office would provide information to the Council.
Council Member Fowler stated an FAQ regrading the Tiny Home Village was being
developed for the Council and City’s website.
2.Comments to the City Council.(Comments are taken on any item not scheduled for
a public hearing,as well as on any other City business.Comments are limited to
two minutes.)
Council Member Fowler summarized the Public Meeting Guidelines.
Cindy Cromer thanked Council Member Johnston for his service on the Council.
Emily Alworth spoke in support of Ranked Choice Voting,encouraged all
candidates to put their best foot forward on every single election and allow lower-
income individuals to participate as candidates;creating a better Salt Lake City.
Anne Charles spoke in support of Ranked Choice Voting,stating it helped people
be able to vote for the candidate they generally supported instead of choosing
between the top two candidates;did not support the Tiny Home Village,
particularly serviced by the Other Side Academy because they did not provide
needed services;should provide doctors and help with mental health issues.
Katie Mulliken expressed concern about the City’s partnership with The Other
Side Academy for the Tiny House Village;that the housing materials would be
substandard and have a constant security presence;(security presence was a
traumatizing aspect for people in this circumstance);supported affordable housing
with a supportive community aspect and in doing so it should be comprehensive
plan involving each part of the person and not just their ability to work.
George Chapman expressed agreement with the Mayor and Council
Member Rogers regarding Ranked Choice Voting;City should not be approving
skinny sidewalks (as the RDA did)–as the approved project violated complete
streets standards;COVID funds should be used for an after-hours child care
service at Bennion School;pocket libraries or a park (Fleet Block),and RDA should
not be expanding TRAX when the money was needed for other things.
J.NEW BUSINESS:
1.Motion:Meeting Remotely Without an Anchor Location
The Council will consider a motion to ratify the determination that the Council will
continue to meet remotely and without an anchor location under HB5002.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -n/a
Set Public Hearing Date -n/a
Hold hearing to accept public comment -n/a
TENTATIVE Council Action -Tuesday,May 4,2021
Staff Recommendation -Refer to motion sheet(s).
Motion:
Moved by Council Member Wharton,seconded by Council Member Rogers to
Council ratify the Council Chair’s decision to meet remotely without an anchor location
due to the City’s local emergency.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
Final Result:6 –0 Pass
Council Member Fowler read the statement stating meeting at the anchor location
was a risk to the health and safety of those attending the meetings.
2.Resolution:Local Emergency Declaration Extension –COVID-19
The Council will consider adopting a resolution that would extend the Mayor’s
March 10,2020 proclamation declaring a local emergency relating to COVID-19
(coronavirus).The Council’s most recent extension of the local emergency relating
to COVID-19 terminates May 5,2021.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -n/a
Set Public Hearing Date -n/a
Hold hearing to accept public comment -n/a
TENTATIVE Council Action -Tuesday,May 4,2021
Staff Recommendation -Refer to motion sheet(s).
Item not held due to information provided on the meeting day.
3.Ordinance:Permitting Certain Outdoor Business Activities and Use of
Certain Temporary Structures
The Council will consider adopting a temporary land use ordinance
that would allow restaurants and retail establishments that hold a
current business license to conduct temporary outdoor restaurant
dining and retail activities on private property and utilize temporary
structures to facilitate outdoor dining and retail activities.The
proposed ordinance would allow the land use aspects of the Mayor’s
emergency proclamations related to outdoor dining and retail to
continue once the emergency proclamation allowed under H.B.294
expires.The temporary ordinance would be in effect for six months.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,May 4,2021
Set Public Hearing Date -n/a
Hold hearing to accept public comment -n/a
TENTATIVE Council Action -Tuesday,May 4,2021
Staff Recommendation -Refer to motion sheet(s).
Motion:
Moved by Council Member Dugan,seconded by Council Member Rogers to
adopt a temporary land use ordinance that would allow restaurants and retail
establishments that hold a current business license to conduct temporary
outdoor restaurant dining and retail activities on private property and utilize
temporary structures to facilitate outdoor dining and retail activities.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
Final Result:6 –0 Pass
Council,Attorney and Recorder clarified the ordinance language included
businesses with existing City licenses.
K.UNFINISHED BUSINESS:
1.Resolution:Tentative Budget of Salt Lake City,including the Tentative
Budget of the Library Fund,for Fiscal Year 2021-22
The Council will consider approving a resolution adopting the tentative budgets of
Salt Lake City,Utah,including the tentative budget of the Library Fund,for Fiscal
Year 2021-22.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -
Set Public Hearing Date -Tuesday,April 20,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 and Tuesday,
June 1,2021 at 7 p.m.
TENTATIVE Council Action -Tuesday,May 4,2021
Staff Recommendation -Refer to motion sheet(s).
Motion:
Moved by Council Member Dugan,seconded by Council Member Rogers to
adopt Resolution 15 of 2021,adopting the tentative budget for Salt Lake City,
Utah,including the tentative budget of the Library Fund,for Fiscal Year
2021-22.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
Final Result:6 –0 Pass
2.Ordinance:Zoning Map Amendment located at approximately 706 to
740 West 900 South 710 to 739 West Genesee Avenue
The Council will reconsider*adopting ordinances that would rezone properties at
706 to 740 West 900 South and 710 to 739 West Genesee Avenue,including
portions of two alleys,from M-1 (Light Manufacturing)to R-MU (Residential
Mixed Use).The applicant intends to develop the remaining portion of the site
with multi-family residential housing that is not currently permitted under the
existing zoning designation.The developer has not proposed a specific
development plan as part of the rezone application.The applicant also intends to
renovate two vacant commercial buildings on the site for commercial uses.
Consideration may be given to rezoning the property to another zoning district
with similar characteristics.Other sections of Title 21A –Zoning may also be
amended as part of this petition.Petition Nos.:PLNPCM2019-01137 and
PLN2020-00442
*The Council is reconsidering this item to clarify for the public record which of the
two proposed ordinances is being considered.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,February 16,2021
Set Public Hearing Date -Tuesday,February 16,2021
Hold hearing to accept public comment -Tuesday,March 2,2021 at 7 p.m.
TENTATIVE Council Action -Tuesday,April 20,2021 and Tuesday,May 4,2021
Staff Recommendation -Refer to motion sheet(s).
Motion:
Moved by Council Member Dugan,seconded by Council Member Rogers to to
reconsider the vote made at the April 20,2021 Formal meeting.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
Final Result:6 –0 Pass
Motion:
Moved by Council Member Rogers,seconded by Council Member Dugan to
adopt Ordinance 10 of 2021,rezoning the properties from M-1 to R-MU
subject to the developers entering into a development agreement with the
City with the following conditions recommended by the Planning
Commission:
1.the applicant enters into a purchase agreement with the City to acquire
the vacated portions of the alleys that are the subjects of petition
numbers PLNPCM2019-00813 and PLNPCM2020-00268;and
2.Design standards currently applicable in the D-2 zone shall be applied to
any new development on the properties subject to this zoning map
amendment.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
Final Result:6 –0 Pass
Council held a discussion on the order of necessary motions,provided this item
was considered at the April 20,2021 Formal meeting.The reason identified by City
Council staff requiring the reconsideration was that the transmittal had included
two ordinances for consideration for the Council,and the motion on April 20,2021
did not provide specificity of which ordinance was adopted.
L.CONSENT:
1.Ordinance:Budget Amendment No.9 for Fiscal Year 2020-21
The Council will set the date of Tuesday,May 18,2021 at 7 p.m.to accept public
comment and consider adopting an ordinance amending the final budget of Salt
Lake City,including the employment staffing document,for Fiscal Year 2020-21.
The proposed amendment includes funding for building office space to
accommodate expansion of the Emergency Management Division,technology
upgrades for the 911 Department,and reimbursements to the Fire Department,
among other changes.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,May 4,2021
Set Public Hearing Date -Tuesday,May 4,2021
Hold hearing to accept public comment -Tuesday,May 18,2021 at 7 p.m.
TENTATIVE Council Action -Tuesday,June 1,2021
Staff Recommendation -Set date.
2.Grant Holding Account Item (Batch No.5)Associated with Budget
Amendment No.9 for Fiscal Year 2020-21
The Council will consider approving Grant Holding Account Item (Batch No.5)for
Fiscal Year 2020-21 Associated with Budget Amendment No.9.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -n/a
Set Public Hearing Date -n/a
Hold hearing to accept public comment -n/a
TENTATIVE Council Action -Tuesday,May 4,2021
Staff Recommendation -Approve.
3.Board Appointment:Public Utilities Advisory Committee (PUAC)
–Dani Cepernich
The Council will consider approving the appointment of Dani Cepernich to the
PUAC for a term ending January 20,2025.
FYI –Project Timeline:(subject to change per Chair direction or Council
discussion)
Briefing -Tuesday,May 4,2021
Set Public Hearing Date -n/a
Hold hearing to accept public comment -n/a
TENTATIVE Council Action -Tuesday,May 4,2021
Staff Recommendation -Approve.
Motion:
Moved by Council Member Rogers,seconded by Council Member Wharton to
approve the Consent agenda.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,James Rogers
Final Result:6 –0 Pass
M.ADJOURNMENT:
Meeting adjourned at 8:40 p.m.
Minutes Approved
_______________________________
Local Building Authority
_______________________________
Redevelopment Agency Chair
_______________________________
City Council Chair
_______________________________
City Recorder
This document is not intended to serve as a full transcript as other items may have been
discussed;please refer to the audio or video for entire content pursuant to Utah Code
§52-4-203(2)(b).
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 constitutes the official minutes of the City
Council Formal Session meeting held Tuesday,May 4,2021.
PENDING MINUTES –NOT APPROVED
The Board of Directors of the Redevelopment Agency (RDA)of Salt Lake City met on Tuesday,
January 18,2022 in an Electronic Meeting,pursuant to the Chair’s determination.
The following Board Members were present:
Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,Victoria Petro-
Eschler,Alejandro Puy
Present Agency Leadership:
Mayor Erin Mendenhall,Danny Walz –Chief Operating Officer
Present City Staff:
Katherine Lewis –City Attorney,Allison Parks –Senior City Attorney,Tracy Tran –Project
Manager,Cindy Lou Trishman –City Recorder,DeeDee Robinson –Minutes and Records
Clerk,Keith Reynolds –Deputy City Recorder,Allison Rowland –Council Staff,Cindy Gust-
Jenson –Council Executive Director,Taylor Hill –City Council Staff,Isaac Canedo –Council
Staff,Jennifer Bruno –Council Deputy Director
Director Chair Valdemoros presided at and conducted the meeting.
The meeting was called to order at 2:10 pm.
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday,January 18,2022
1
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.)
Minutes:
There were no public comments.
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 March 23,2021;April 13,2021;May 18,
2021;June 1,2021;June 8,2021;and December 14,2021.
Motion:
Moved by Director Dugan,seconded by Director Puy to approve the meeting
minutes.
AYE:Ana Valdemoros,Daniel Dugan,Darin Mano,Victoria Petro-Eschler,Alejandro Puy
ABSENT:Amy Fowler,Chris Wharton
Final Result:5 –0 Pass
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday,January 18,2022
2
2.Election for Vice-Chairperson ~2:10 p.m.
10 min.
The Board will nominate and elect a member to serve as Vice-Chairperson of the RDA.
Minutes:
Director Petro-Eschler nominated Director Puy for RDA Vice Chairperson.
Director Puy accepted the nomination and said he was interested in working to re-
energize neighborhoods/business districts for economic growth/adding neighborhood
vibrancy and saw great opportunity in holding the seat.
Directors Wharton,Dugan,Mano,Valdemoros,Petro-Eschler,and Puy voted in
agreement for Director Puy’s placement as RDA Vice-Chair.Director Fowler was absent
for the vote.
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday,January 18,2022
3
3.Utah Open Meetings Law Training and Government Records Access
and Management Act (GRAMA)Training
~2:20
p.m.
30
min.
The Board will receive a briefing from the City Attorney’s Office about the Utah Open
Meetings Law,and from the Recorder's Office about the Government Records Access and
Management Act (GRAMA).This briefing will serve as the annual trainings for both the
City Council and the Board of Directors of the Redevelopment Agency.
Minutes:
Director Fowler joined the meeting during this agenda item.
Keith Reynolds provided an overview of Government Records Access Management Act
(GRAMA)and 2021 statistics,including:
•GRAMA –Title 63G,Chapter 2;enacted into law in 1991
•Types of records included:Books,letters,documents,photos,etc.
•Classification types:public,private,controlled,and protected
•City website for records requests
•GRAMA specifics;requirement of 10 business days to respond/five business days if
expedited,extensions could be requested,fee waivers granted
•2021 GRAMA requests –nearly 16,000 requests
•GRAMA statistics for Airport,City,Fire and Police
•Process of denials and appeals
•Correspondence being a public record –depending on content and recipients
Katherine Lewis and Cindy Lou Trishman provided information regarding:
•Policy and clarification on retention of text messaging/electronic correspondence
•Confidentiality of closed meeting topics
Allison Parks provided information regarding Open &Public Meetings Act (OPMA),
including:
•Applicable to public bodies –meetings of a public body,retreats,workshops,field
trips
•Not applicable to chance meetings,social gatherings,situations where no quorum
was present
•Meeting requiring the convening of at least a quorum to discuss,receive comments
or act on a matter over which the board has jurisdiction or advisory power
•Requirements of OPMA:providing notice to the public,publishing annual meeting
schedule,every meeting to be noticed with pertinent information (agenda,date,time,
place)with 24 hour notice,emergency meeting requirements,electronic meeting
requirements (with and without anchor locations),meeting records (open vs.closed
meetings)
•Closed meeting topics and procedures for entering into closed meetings
•Public comment and participation;State law or City Code requirements,discretion of
the Chair to discuss items not on the agenda,no final action if not on the agenda
•Disruption of meetings;removal of individuals from meeting if willfully disrupting
meetings
•Consequences of violating the Act:Class B misdemeanor –knowingly violating the
closed meeting provisions of the Act,and private individuals could bring lawsuit for
violation of the Act
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday,January 18,2022
4
4.Resolution:Repealing and Replacing the Housing Allocation Funds
Policy
~2:50
p.m.
40 min.
The Board will receive a briefing,and consider adopting a resolution repealing and
replacing the Housing Allocation Funds Policy.RDA Staff presented the basic terms for a
Westside Community Initiative (“WCI”)program to the Board in September 2021.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.
Minutes:
Allison Rowland provided an introduction to the resolution,indicated action was not
necessary today by the Board,and reiterated policy questions for the Board.
Danny Walz provided information regarding the WCI,including:
•Background;staff developed a proposed program to utilize funds received from
Inland Port Authority (providing for a portion of tax differential generated within the
Inland Port Authority jurisdictional land be paid to the RDA to be utilized for
housing)
•Direction;structured after the Community Land Trust model,RDA as a long-term
landowner,focus on the westside (west of I-15),priority to provide perpetual
affordability (ownership),reuse revenue and continue to grow funding,metrics to
demonstrate funds being used according to State/City goals
•Purpose,goals,funding sources,and activities
•Housing Allocation Funds Policy;adopted by the Board in February 2021,
established guidelines for allocating/directing resources for the development and
preservation of housing,created four housing funds based on fund source with
associated purpose,requirements,and priorities (Primary Housing Fund,Secondary
Housing Fund,Northwest Quadrant Housing Fund,Housing Development Fund),
includes presentation of annual Housing Development Funding Strategy to Board
projecting revenues and proposed funding priorities and allocations for upcoming
fiscal year
•Overview of proposed revisions
•Priorities:addressing potential impacts from Inland Port development activities and
improve opportunity indicators within the westside,develop and allow for RDA to
maintain ownership of land,creating opportunities for revenue generation to be
reinvested back into the community,mitigating gentrification and displacement on
the westside,facilitate the implementation of transformative housing/mixed-use
rental housing projects,etc.
•Next steps;January 2022 –review by the Board,March 2022 –Board
considering policy for adoption,and Q3 (Quarter three)–staff proposes structure for
shared equity models of development
Mayor Mendenhall,Board Members,and Staff discussed residents of these projects
not being displaced from their community,positive rental history providing
homeownership opportunities,homeownership/rental opportunities to emergency
responders and teachers,definition of shared equity,and gathering data regarding
housing stock needs to make future decisions.
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday,January 18,2022
5
5.Informational:Verbal Update on Project Area Creation -State Street
and Research Park
~3:30
p.m.
30 min.
The Board will receive a verbal update from RDA staff on the process to create the State
Street and Research Park project areas.
Minutes:
Danny Walz provided information regarding:
•State Street Project Area;agency staff working with Salt Lake County Economic
Development staff,recommendation to be made to the Salt Lake County Council for
consideration (within the next few months)
•Research Park;agency staff working with university and research park staff,selection
and engagement of a consultant,incorporation of agency and university
considerations –further steps required from the university to move forward (no
established timeline)
Director Mano inquired about how he or his constituents could assist with the State Street
Project Area process and what it would look like if Salt Lake County did not participate the
project.Mr.Walz indicated if the County did not participate,it would reduce the tax
increment available to the City (project area budget),and added that constituents could
help by reaching out to County elected officials and offer support for the project.
Director Mano expressed interest in seeing projections of future revenue for the State
Street Project Area (over the 20 year time period)and inquired what the appropriate time
was (as a Board)to weigh in on all the priorities within the project area (how to distribute
and prioritize funding).Director Valdemoros spoke in agreement to Director Mano’s
inquiry and said it would also be helpful to know how past RDA Boards
prioritized/approved funding for projects.Mr.Walz said when the annual budget was
provided to the Board,along with staff recommendations for funding (based on provided
priorities),the Board and staff could then discuss priorities/make decisions within the
project areas.He added this would be the upcoming process for the 9-Line and State
Street Project areas this year.
Director Valdemoros provided clarification of the Research Park project area;previously
federal owned land granted to the University of Utah –opportunity for the City to review
the area’s proposed master plan and participate in a possible Community Redevelopment
Area (CRA)in coordination with the university.
Director Dugan expressed concerns regarding environmental impact of development in
Research Park and asked how the City envisioned working with the University of Utah to
complete an environmental impact study of the proposed development (air quality,water
use.etc.)and be more supportive of public transportation and mitigating traffic patterns
within the development.Tracy Tran said she would follow up with the Research Park
team regarding an environmental impact analysis;however,in terms of transit –in
collaboration with Utah Transit Authority,the City,and University of Utah,a RAISE grant
was recently awarded (November 2021)for a transit analysis (including transit
alternatives)that included the Innovation Hub,downtown Salt Lake,and Research Park.
Mr.Walz added that transit/transportation improvement priorities could also be
incorporated into the Research Park CRA plan as what the priorities would be for agency
participation.
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday,January 18,2022
6
6.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.
Minutes:
Item not held.
7.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 scheduling
items.
Minutes:
Item not held.
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.
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday,January 18,2022
7
F.Tentative 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.
Minutes:
Item not held.
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday,January 18,2022
8
G.Adjournment
CERTIFICATE OF POSTING
On or before 5:00 p.m.on Thursday,January 13,2022,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,January 18,2022
9
Meeting adjourned at:4:00 pm.
Minutes Approved:
______________________________
Redevelopment Agency Chair
______________________________
City Recorder
This document is not intended to serve as a full transcript as other items may have been
discussed;please refer to the audio or video for entire content pursuant to Utah Code
§52-4-203(2)(b).
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 constitutes the official minutes of the Salt Lake
City Redevelopment Agency meeting held Tuesday,January 18,2022.
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday,January 18,2022
10
PENDING MINUTES –NOT APPROVED
The Board of Directors of the Redevelopment Agency (RDA)of Salt Lake City met on Tuesday,
February 8,2022 in an Electronic Meeting,pursuant to the Chair’s determination.
The following Board Members were present:
Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,Alejandro Puy,
Victoria Petro-Eschler
Present Agency Leadership:
Danny Walz –Chief Operating Officer
Mayor Mendenhall
Present City Staff:
Katherine Lewis –City Attorney,Danny Walz –Chief Operating Officer,Lauren Parisi –Project
Manager,Tracy Tran –Project Manager,Cindy Lou Trishman –City Recorder,DeeDee
Robinson –Minutes and Records Clerk,Thais Stewart –Deputy City Recorder ,Allison
Rowland –Council Staff,Jennifer Bruno –Council Deputy Director,Taylor Hill –City Council
Staff,Isaac Canedo –Council Staff
Director Chair Valdemoros presided at and conducted the meeting.
The meeting was called to order a 2:06 pm.
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday,February 8,2022
1
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.)
Minutes:
Item not held.
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.
Motion:
Moved by Director Dugan,seconded by Director Mano to approve the meeting
minutes of June 9,2020.
AYE:Amy Fowler,Ana Valdemoros,Daniel Dugan,Darin Mano,Alejandro Puy,Victoria
Petro-Eschler
ABSENT:Chris Wharton
Final Result:6 –0 Pass
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday,February 8,2022
2
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.
Minutes:
Allison Rowland provided a brief introduction to the resolution.
Danny Walz mentioned the previous discussions regarding the WCI,said the policy
contained higher level goals and direction received from the Board that applied to all the
housing funds and specifically it renamed the Northwest Quadrant Fund into the
Westside Community Initiative (WCI)Fund (which also carried goals and objectives from
the Board).He indicated the presentation from the January 18,2022 RDA meeting was
available in the Council’s packet for review.
Mr.Walz described the process of how the policy and the Housing Development Loan
Program both pointed to the Annual Housing Strategy where the Board provided
input/direction on overall housing goals –more specifically the budget funding request
for each fiscal year,provided information regarding a $409,000 balance for Northwest
Quadrant (NWQ)Fund (along with a $4M Council approved allocation from ARPA).
Director Mano said the Community Land Trust (affordable homeownership)model being
in place would be high on his priority list this year when discussing the Annual Housing
Strategy and encouraged more focus on it and what it looked like for the City.Mr.Walz
assurred Director Mano that staff was working now on what the Community Land Trust
model could look like for the City and that during the forthcoming Annual Housing
Strategy discussions the Board could present initiatives/priorities for the funding at that
time.
Director Wharton joined the meeting at 2:30 pm.
Motion:
Moved by Director Fowler,seconded by Director Dugan to adopt Resolution
1 of 2022,Repealing and Replacing the Housing Allocation Funds Policy.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,
Alejandro Puy,Victoria Petro-Eschler
Final Result:7 –0 Pass
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday,February 8,2022
3
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.
Minutes:
Allison Rowland provided a brief introduction to the resolution and policy questions
for the Board.
Tracy Tran and Lauren Parisi provided information regarding:
Emergency Gap Financing Criteria &Review
•Background;Board discussed loan application process for emergency funding
through Housing Development Loan Program (HLDP)when RDA releases a Notice
of Funding Availability (NOFA)in December 2021,RDA Staff having
proposed additions/amendments for emergency funding requests with the HLDP
•Purpose;Housing Development Loan Program (HDLP)being adopted 2021 –
providing a centralized process/application for all RDA Housing funds to provide
low-interest loans to incentivize the development and preserve affordable housing in
the City
•Annual Funding Priorities and Allocations;annual HDLP funding strategy prior to
the annual budget process for the next fiscal year
•Administrative process;funding administered through NOFA process (incorporating
Board determined priorities),this fiscal year housing strategy offered three NOFA:
Competitive Citywide,High Opportunity Area,and Emergency Gap Funding
•Evaluation and approval process;each NOFA to receive an eligibility review,review
committee recommendation,RDA Board of Directors approval,and funding
commitment
•Proposed Emergency Gap Financing Fund eligibility criteria (in addition to basic
eligibility requirements)
•RAC having recommended approval and details of their considerations
•Questions for the Board to consider
Board Members and Staff discussed Emergency Gap Funding;options for
approval,balance of account,90-day window for approval,interest rates on loans,how
many loans issued a year,terms of the loans,requirements of matching funds process,
restrictions on who could apply,etc.
Director Petro-Eschler said clarification should be made that RDA money should be going
towards affordability/family-sized units (those items set as Board priorities),even for
Emergency Funding.Mr.Walz said it was the Boards discretion to apply terms/conditions
on Emergency Funds and could be determined during the Annual Housing Strategy
discussions.
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday,February 8,2022
4
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.
Minutes:
Item not held.
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.
Minutes:
Danny Walz provided updates regarding:
•Recently executed lease amendment with Utah Jazz (extending lease for Vivint
Arena)
•Re-opening event for Jackson Apartments was rescheduled for Thursday,February
24,2022 at 10:00 am (RDA having provided Jackson Apartments a $1M loan for
renovations/code compliance/ADA improvements for 80 senior apartments)
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.
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday,February 8,2022
5
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.
Motion:
Moved by Director Dugan,seconded by Director Puy to enter into Closed Session
for the purposes of discussing pending or reasonably imminent litigation,
discussion regarding deployment of security personnel,devices or systems;and
attorney-client matters that are privileged pursuant to Utah Code 78B-1-137.
AYE:Amy Fowler,Ana Valdemoros,Chris Wharton,Daniel Dugan,Darin Mano,Alejandro Puy,
Victoria Petro-Eschler
Final Result:7 –0 Pass
Minutes:
Closed Session Started at 3:15 pm
Board Directors in Attendance:Directors Dugan,Fowler,Petro-Eschler,Puy,Mano,Wharton,
and Valdemoros.
City Staff in Attendance:Mayor Mendenhall,Katherine Lewis,Cindy Gust-Jenson,Rachel Otto,
Lisa Shaffer,Danny Walz,Jennifer Bruno,Lehua Weaver,Mary Beth Thompson,Andrew
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday,February 8,2022
6
Johnston,Allison Parks,Samantha Slark,Cindy Lou Trishman,Amanda Greenland,Robyn
Stine,Allison Rowland,Beatrix Sieger,Ben Luedtke,Nick Tarbet,Sam Owen,and Taylor Hill.
Director Wharton moved,and Director Fowler seconded to exit the Closed Session
and adjourn as the Redevelopment Agency.A roll call vote was held and
unanimous by all present.
Closed Session ended at 4:20 pm.
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday,February 8,2022
7
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,February 8,2022
8
Meeting adjourned at:4:20 pm.
Minutes Approved:
______________________________
Redevelopment Agency Chair
______________________________
City Recorder
This document is not intended to serve as a full transcript as other items may have been
discussed;please refer to the audio or video for entire content pursuant to Utah Code
§52-4-203(2)(b).
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 meeting held Tuesday,February 8,2022.
MINUTES OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY
Tuesday,February 8,2022
9
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
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2021-05-17 - 7:13:55 PM GMT- IP address: 67.182.249.63
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Signature Date: 2021-05-17 - 7:32:46 PM GMT - Time Source: server- IP address: 136.60.130.16
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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.
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• 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:
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• 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.
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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
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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.
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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.
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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.
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: February 18, 2022
PREPARED BY: Tracy Tran and Lauren Parisi, RDA Project Managers
RE: Follow-Up on Housing Development Loan Program Emergency Gap
Financing Discussion and Directing Review to the RDA Finance Committee
REQUESTED ACTION: In consideration of the discussion from the February Board meeting and
reviewing the Housing Development Loan Program Policy, staff
recommends not adding emergency gap financing standards, but
directing reviews of applications to the RDA Finance Committee.
POLICY ITEM: Affordable housing.
BUDGET IMPACTS: n/a
EXECUTIVE SUMMARY: At the February 8, 2022, Salt Lake City Redevelopment Agency
(“RDA”) Board of Directors (“Board”) meeting, RDA staff discussed proposed amendments to the
Housing Development Loan Program (“HDLP”) Policy that would add Emergency Gap Financing
Criteria and direct the RDA Finance Committee as the review body for HDLP applications. The
proposed Emergency Gap Financing Criteria included:
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.
In addition, the Board also discussed the Redevelopment Advisory Committee’s (“RAC’s”)
recommendation:
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
The Board discussed emergency funding and the HDLP, which included:
•Desire to maintain control and Board approval in the process.
•Options to expedite in the front end and include strict requirements and require report at the
end.
•Acknowledgement that the current market is volatile with increasing and unstable
construction costs.
•Possibility of convening RDA meetings during other City Council nights to allow for
additional meeting days for emergency requests.
•Loan amounts, interest rates, and anticipated number of applications.
•90 days process from time of application to groundbreaking seems tight – consider requests
under these emergency funds would need to close withing 90 days of approval.
•Emergency funds should meet the priorities for the board.
•Consider making process easier but affordability and thresholds stricter.
•Desire to include additional requirements for projects asking for emergency funds.
•Emergency funds must meet HDLP requirements anyway. Acknowledged that creating an
emergency process but then including additional standards may be counterintuitive.
Based on the discussion and desire for the Board to provide final approval, RDA staff recommends to
not amend the HDLP to include emergency standards, but only amend the language that would direct
application reviews to the RDA Finance Committee.
ANALYSIS & ISSUES:
RDA Recommendation
Emergency Funds
RDA staff considered the Board’s discussion and how changes would impact the HDLP Policy. For
funds to be truly “emergency” to respond to requests that need to fill a gap within weeks and to
prevent further price escalations to occur during that period, a quicker and more nimble process
would need to exist. Given the importance of the process, RDA staff recommends maintaining a set
of funds that could be used on an open-ended until expended basis but would not be subject to a
shortened process. These funds could be accessed by developers who have come across a financing
gap and/or were unable to apply during the competitive Notice of Funding Availability (“NOFA”)
process.
Additionally, these non-competitive, open-ended until expended funds could be subject to a shorter
conditional commitment period and staff would ensure loan closing would happen quickly after
Board approval. This limited conditional commitment period would naturally support projects that
are further along in the process that have financial commitments in place. This along with the
developer’s project details would meet the intent of RDA staff’s initial emergency gap financing
criteria without having to add language to the HDLP.
Review Committee
RDA Staff recommends amending the HDLP to clarify and direct reviews of applications to the RDA
Finance Committee. 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.
HDLP Process and Annual Housing Funding Strategy: Regardless of the NOFA offering, whether
it’s offered on a competitive or on an open-ended until expended basis, all applications would be
subject to the HDLP requirements and process. The HDLP Process allows for a consistent method to
administer the allocation of affordable housing funding requests. The HDLP requirements and
process ensures projects meet a range of threshold requirements including developer experience,
affordability, eligible activities, sustainability, financing standards.
Additionally, as part of the annual housing funding strategy (“Strategy”), the Board approves the
budget that would determine which type of funds staff would offer each year. Given the Board
discussion at the February Board meeting, the Board could offer open-ended until expended funds
and as part these funds, staff would ensure that projects seeking this type of funding would need to
break ground within a certain period of closing. If they do not, the condition would not be met, and
the applicant would need to re-apply if they still need funding.
In addition, the Strategy allows for flexibility in how NOFAs could be offered each year. Given the
volatility and rising construction costs in the current market, having funds that are available on open-
ended until expended basis may currently make sense. For other years, given the status of the
market, it may make more sense to conduct only competitive NOFAs. The current HDLP policy
provides a consistent framework and process for either a NOFA for competitive funds or for funds
that could be offered on an open-ended until expended basis.
PREVIOUS BOARD ACTION:
•February 2022; The Board discussed emergency funds and provided feedback regarding
proposed amendments to the HDLP.
•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
1
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _____________
Amending and Restating the Housing Development Loan Program Policy to Direct
Review of Applications to the RDA Finance Committee
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT
AGENCY OF SALT LAKE CITY AMENDING AND RESTATING THE HOUSING
DEVELOPMENT LOAN PROGRAM POLICY TO DIRECT 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 direct review of
applications to the RDA Finance Committee. A redline version of the 2021 Policy is attached
to this resolution as Attachment B.
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 and restated to read as follows:
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.
ATTACHMENT A: RESOLUTION
2
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
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
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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.
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.
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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.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.
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.
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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 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.
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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.
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 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:
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 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, su ch 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 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
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 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.
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 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.
13
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
February 18, 2022
14
Attachment A
2021 Policy
[Insert Adopted 2021 Policy]
15
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
16
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.
17
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.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 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
18
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.
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.
19
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.
20
• 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:
21
• 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.
22
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
23
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.
24
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.
25
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.
CITY COUNCIL OF SALT LAKE CITY
451 SOUTH STATE STREET, ROOM 304
P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476
SLCCOUNCIL.COM
TEL 801-535-7600 FAX 801-535-7651
BOARD STAFF REPORT
THE REDEVELOPMENT AGENCY of SALT LAKE CITY
TO:RDA Board Members
FROM:Allison Rowland
Budget & Policy Analyst
DATE:March 8, 2022
RE: INFORMATIONAL: FISCAL YEAR 2022-23 HOUSING DEVELOPMENT FUNDING
STRATEGY
ISSUE-AT-A-GLANCE
This briefing is designed as an introduction for Board Members to the proposed Fiscal Year 2023 Housing
Development Funding Strategy. This briefing will focus on Annual Housing Priorities and Housing Activities
(that is, the tools used to advance the Priorities). RDA staff proposes to reduce the number of Housing Priorities
that were adopted by the Board in the FY22 Strategy, reducing from eleven to four or fewer (See item C below).
The longer list of Priorities from FY22, reproduced in the transmittal’s Attachment A, would still allow
developers to receive 0.5% discounts from the standard loan interest rates. At this time, no funding proposals
are provided by RDA staff, though they suggest the Board consider discussing potential funding levels for the
Housing Activities (perhaps as percentages of a total) as a preliminary step.
Goal of the briefing: Discuss the proposed Fiscal Year 2023 Housing Priorities and Housing Activities and
provide direction to RDA staff.
BACKGROUND AND ADDITIONAL INFORMATION
A. Background. The guiding polices for the annual Affordable Housing Strategy are the Housing Allocation
Funds Policy and Housing Development Loan Program (HDLP) Policy, which were adopted by the Board
in 2021. As outlined in these policies, RDA staff prepares a proposed Strategy—including a resolution and
funding allocations—for the Board’s consideration and approval. During the broader City budget discussions
(typically in May) the Board would finalize the funding amounts outlined in the Strategy.
1.Housing Allocation Funds Policy. The Housing Allocation Funds Policy (Attachment C1) sets up
four housing funds (Primary; Secondary; the Housing Development Fund; and the Westside
Item Schedule:
Briefing: March 8, 2022
Set Date: N/A
Public Hearing: N/A
Potential Action: N/A
Page | 2
Community Initiative). RDA staff account for the revenues, expenditures, interest, payments, and
repayments for each fund source separately. The annual budgeting process laid out in the policy
includes the Housing Development Funding Strategy. Per policy, the Strategy includes:
a. a projected revenue amount proposed by RDA staff to be allocated to the Housing Funds, and
b. a proposed funding allocation among the Housing Activities (for example, gap financing loans,
property acquisition) approved annually by the Board.
2.Housing Development Loan Program (HDLP) Policy. The Housing Development Loan
Program (HDLP) Policy (Attachment C2) defines one of the four typical Activities used to implement
the Annual Priorities: the Housing Development Loan Program. The purpose of this program is to
provide low-cost financial assistance to incentivize the development and preservation of affordable
housing in Salt Lake City. Other Activities in the proposed FY23 Annual Priorities are Land Acquisition;
Shared Equity Housing; and ADU Assistance.
B. Board Prerogatives. After adopting the annual Housing Development Funding Strategy, the RDA Board
retains the option to make policy changes among adopted housing Activities or budget allocations at any
time during the year. In addition, the Board reviews and considers each specific loan project proposal before
it may be approved for funding. The Board also can suspend any adopted policies under special
circumstances for a specific project proposal.
C. FY23 Proposed Funding Priorities. For FY23, RDA staff recommends limiting the annual housing
priorities to the four listed here, or fewer:
1. Affordable Homeownership;
2. Family Housing (units with 3 or more bedrooms);
3. Deeply Affordable Housing (units at or below 40% AMI);
4. Missing Middle or Unique Housing Types (tiny, modular, prefab, ADUs).
Policy Question: Does the Board wish to approve the proposed list of FY23 Priorities, or
omitting or adding items to the proposed list?
D. FY23 Proposed Funding Activities. RDA staff would use the following tools to advance the proposed
Priorities:
1. A shared equity model to promote Affordable Home Ownership, and Family Housing;
2. Land acquisition to promote Affordable Home Ownership, Family Housing, and Missing Middle
Housing;
3. The Housing Development Loan Program for Family Housing, and Deeply Affordable Housing;
4. Assistance for Accessory Dwelling Units (ADUs) for Missing Middle Housing.
Policy Question: Does the Board wish to approve the proposed list of FY23 Activities, or
discuss omitting or adding items to the proposed list?
E. Results of the FY22 Project Selection Process. The RDA’s transmittal notes two limitations in the
extent to which annual Priorities are reflected in specific projects proposed by staff to the Board for funding.
1. The highest-ranking Priorities are not necessarily incorporated in project submissions more
frequently than other priorities, because of "other important review standards besides the priorities
that projects are evaluated against such as having other sources of financing secured.” These review
standards are contained in the 2021 NOFA guidelines and application handbook, as follows:
a. Alignment with project priorities;
b. Content and quality of the project narrative;
Page | 3
c. Qualifications and experience of the applicant and development team;
d. Content, effectiveness, and appropriateness of the budget, sources and uses, operating
proforma, and related assumptions;
e. The readiness of the project to proceed to construction;
f. Any and all content regarding building and site design;
Policy Question: Some Board Members have noted this limitation and suggested that re-
evaluation of the review standards could reveal ways to address how this apparent mismatch
may be remedied, as well as to expand opportunities for RDA funding to a wider variety of
developers. The Board may wish to ask RDA staff how each review standard is
weighted, whether any since standard results in automatic rejection of an
application, and other related questions. Alternatively, the Board could request RDA
staff conduct a deeper analysis of these issues and report back to them in a future
meeting.
2. Another limitation noted by RDA staff is that home ownership projects don’t necessarily qualify for
NOFA: “[G]uidelines state that RDA funds should be limited to 10% or less of the project’s financing
sources, but homeownership projects tend to need a larger, initial subsidy to reduce a home’s price
[to] below market value.”
Policy Question: Would the Board like to consider the costs and benefits of changing
this percentage for homeownership projects? Alternatively, the Board could request
RDA staff analyze options to address this limitation and report back to them in a
future meeting.
POLICY QUESTIONS
1.The Board may wish to clarify with RDA staff their preference for the timing of a
presentation of proposed Housing Fund Allocations—that is, the estimated amount of
revenue in each of the four existing housing funds and how this is allocated to each
Housing Activity. The Board may wish to review estimated dollar amounts in April, in tandem with a
proposed FY23 Housing Development Funding Strategy resolution, which would allow the Board to
consider allocations before budget discussions begin in May. Both the proposed total funding dedicated to
affordable housing projects, and the allocation of this amount among different program categories are
subject to Board approval as part of the RDA’s annual budget process.
2.Does the Board wish to be informed of updated balances in each of the four Housing Fund
before making decisions about allocations? Similarly, The Board may wish to ask about the
plan for dealing with any surpluses or shortfalls in actual revenue compared to the revenue
estimates. Will the RDA staff return to the Board for authorization to make changes to the
amounts allocated to each Activity, for example, through budget amendments?
3.The Board may wish to ask for an update from RDA staff on guiding policies for the
Westside Community Initiative.
4. For the FY22 Housing Funding Strategy, the Board requested RDA staff research and consider alternative
ways to encourage ADU construction across the City. The Board may wish to request a briefing on
the results of this research, and specifically whether there a way to further the City’s equity
goals through programs to assist homeowners to build ADUs?
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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Agreement completed.
2021-05-17 - 10:22:47 PM GMT
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
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2021-05-05 - 1:36:44 AM GMT- IP address: 136.60.130.16
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Document e-signed by Ana Valdemoros (ana.valdemoros@slcgov.com)
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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
HOUSING
FRAMEWORK
HOUSING FUNDS
ALLOCATION POLICY
PRIMARY
HOUSING
FUND $$$
ALLOCATIONS
ANNUAL
HOUSING
PRIORITIES
HOUSING
ACTIVITIES
ANNUAL HOUSING
FUNDING STRATEGY
HOUSING
DEVELOPMENT
FUND
WESTSIDE
COMMUNITY
INITIATIVE
SECONDARY
ADOPTED Q1 2021 YEARLY BOD APPROVAL
This policy established
guidelines for
allocating/directing
resources for housing
by funding source.
Also requires "Annual
Housing Funding
Strategy" (right) be
brought in front of
Board every year.
Bringing estimated
amounts to Board for
review next month
For your feedback today
For your feedback today
PRIMARY
HOUSING
DEVELOPMENT
FUND
WESTSIDE
COMMUNITY
INITIATIVE
SECONDARY
HOUSING
FUND $$$
ALLOCATIONS
housing fund allocations
Will bring projected fund balances to April Board meeting
$___
TBD
$___
TBD
$___
TBD
$___
TBD
ANNUAL
HOUSING
PRIORITIES
HOUSING
ACTIVITIES
ANNUAL HOUSING
FUNDING STRATEGY
AFFORDABLE
HOMEOWNER
-SHIP
annual housing priorities
Four priorities to focus on this FY; Seeking Board feedback today
MISSING
MIDDLE
HOUSING
FAMILY
HOUSING
DEEPLY
AFFORDABLE
UNITS
HOUSING
FUND $$$
ALLOCATIONS
ANNUAL
HOUSING
PRIORITIES
HOUSING
ACTIVITIES
ANNUAL HOUSING
FUNDING STRATEGY
ADU
ASSISTANCE
HOUSING
DEVELOPMENT
LOAN
PROGRAM
LAND
ACQUISITION
SHARED
EQUITY
HOUSING
housing ACTIVItIES
Tools/programs by which to achieve Priorities; Seeking Board feedback today
HOUSING
FUND $$$
ALLOCATIONS
ANNUAL
HOUSING
PRIORITIES
HOUSING
ACTIVITIES
ANNUAL HOUSING
FUNDING STRATEGY
housing ACTIVItIES
Housing Development Loan Program
Competitive NOFA
HOUSING
FUND $$$
ALLOCATIONS
ANNUAL
HOUSING
PRIORITIES
HOUSING
ACTIVITIES
ANNUAL HOUSING
FUNDING STRATEGY
Utilize interest rate reduction benchmarks for
competitive NOFA (Alignment with RDA's
Guiding Framework)
Board may choose to require family housing
and/or deeply affordable housing as threshold
FY23 Housing ActivitY IMPACT
HOUSING PRIORITIES
Affordable Home
Ownership
Family Housing
Deeply Affordable
Housing
Missing Middle
Housing
Shared Equity Model Land AcquisitionHousing Development
Loan Program
ADU Assistance
HOUSING ACTIVITIES
HOUSING
DEVELOPMENT
FUND
SECONDARYPRIMARY
WESTSIDE
COMMUNITY
INITIATIVE
housing fund
allocationsSTEP
FY23 ANNUAL HOUSING FUNDING STRATEGY
FAMILY
HOUSING
MISSING
MIDDLE
HOUSING
AFFORDABLE
HOME
OWNERSHIP
DEEPLY
AFFORDABLE
HOUSING
ANNUAL HOUSING
PRIORITIES
HOUSING
ACTIVITIESSTEPSTEP
LAND
ACQUISITION
ADU
ASSISTANCE
SHARED
EQUITY
HOUSING
HOUSING
DEV. LOAN
PROGRAM
For the RDA Board's Consideration
Is the Board in alignment with the proposed housing funding priorities?
Is the Board in alignment with the proposed housing activities?
Would the Board like to consider making family housing and/or deeply
affordable housing threshold for the competitive NOFA?
Next Steps
Projected housing fund balances and proposed allocations to housing activities
will be brought to the Board with the budget presentation in April.
Housing activities are approved as a part of the RDA budget approval.
Housing priorities are approved via resolution to be brought back to the Board.
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
DATE: February 18, 2022
PREPARED BY: Lauren Parisi & Tracy Tran, RDA Project Managers
RE: FY 2022-23 Housing Development Funding Strategy
REQUESTED ACTION: Briefing on the FY 2022-23 Housing Development Funding Strategy
POLICY ITEM: Affordable Housing
BUDGET IMPACTS: N/A
EXECUTIVE SUMMARY: In 2021, the Board of Directors (“Board”) of the Redevelopment Agency of
Salt Lake City (“RDA”) adopted two policies to facilitate the funding and development of affordable
housing within City boundaries. First, the RDA Housing Allocations Funds Policy (“Funds Policy”)
establishes guidelines for allocating and directing resources for the development and preservation of
housing by funding source. Second, the Housing Development Loan Program (“HDLP”) Policy creates a
program that centralizes the application, underwriting, and approval process across all funding sources,
providing a one-stop-shop for community partners to access resources for the development and
preservation of affordable housing.
Both policies contemplate that annually, prior to the annual budget process, the RDA shall present to the
Board a Housing Development Funding Strategy (“Funding Strategy”) that includes:
• A projected amount of revenue to be allocated to each Housing Fund for the upcoming fiscal year
(approved as a part of RDA budget)
• Proposed housing funding priorities (“Funding Priorities”) for the upcoming fiscal year (approved
as separate resolution)
• Proposed funding allocations for specific housing activities (i.e. gap financing loans, property
acquisition, etc.) for the upcoming fiscal year (approved as a part of RDA budget)
See Figure 1 for a process step-by-step graphic.
2
Figure 1:
This memo reviews the proposed Funding Priorities and housing activities for FY23. These priorities and
activities are reviewed and approved on an annual basis to incorporate priorities of the Administration and
Board. The projected revenue to be allocated to each of the four Housing Funds (Primary Housing Fund,
Secondary Housing Fund, Westside Community Initiative Fund and Housing Development Fund) as well
as allocations of funding to each housing activity will be brought back to the Board as a part of the annual
budget discussion.
The Board may wish to discuss the proposed Funding Priorities and housing activities as described in this
memo and provide any feedback or direction on potential funding levels to certain housing activities when
the budget is brought for their review.
ANALYSIS & ISSUES:
1. FY22 Funding Strategy Process/Outcomes – During the 2021-2022 fiscal year, the Board
adopted a list of 13 affordable housing funding priorities (i.e. family housing, neighborhood safety,
etc.) ranked in importance – those ranked by a “3” being the highest priority, those ranked by a “2”
being mid-range priority, and those ranked by a “1” being the lowest priority for the fiscal year.
These priorities were utilized as a part of last year’s competitive affordable housing notice of
funding availability (NOFA) to score projects competitively. A .5% interest rate reduction was
then earned for every priority met, regardless of the ranking. Comprehensively, projects were
evaluated based on the following as stated in the 2021 NOFA guidelines and application handbook:
• Alignment with project priorities
• Content and quality of the project narrative
• Qualifications and experience of the applicant and development team
• Content, effectiveness, and appropriateness of the budget, sources and uses, operating proforma,
and related assumptions
3
• The readiness of the project to proceed to construction
• Any and all content regarding building and site design
The RDA’s competitive affordable housing NOFA is a very important program that affordable
housing developers rely on an annual basis; however, the highest-ranking priorities are not
necessarily incorporated in project submissions more frequently than other priorities. A reason for
this is, as listed above, there are other important review standards besides the priorities that projects
are evaluated against such as having other sources of financing secured. Additionally,
homeownership products may not qualify for the competitive NOFA. For example, the guidelines
state that RDA funds should be limited to 10% or less of the project’s financing sources, but
homeownership projects tend to need a larger, initial subsidy to reduce a home’s price below
market value.
Thus, this year’s Funding Strategy contemplates restructuring how the Funding Priorities are
applied to the competitive NOFA as well as utilizing other tools in the RDA’s toolbox such as land
acquisition to target certain housing goals more directly.
2. FY23 Proposed Funding Priorities – To be more intentional with affordable housing funds and
address the Board’s and Administration’s most pressing housing goals, RDA staff recommends
limiting the annual housing priorities to four or fewer. These goals address Mayor Mendenhall’s
goal within the 2022 Work Plan to maximize opportunities for perpetual housing affordability on
the westside in both rental housing and home ownership as well as limited commercial uses within
mixed use developments.
The four Funding Priorities proposed for the FY23 Funding Strategy are listed in bold below as
subsets of the RDA’s Livability Benchmark Public Benefits.
• Benchmark #1 Ownership – To encourage the creation of opportunities for residents/business
owners to building wealth and/or establish permanent roots through affordable home/commercial
ownership.
o AFFORDABLE HOMEOWNERSHIP
• Benchmark #2 Housing for Everyone – To promote housing for families, underserved populations
and extremely low income.
o FAMILY HOUSING (units with 3+ bedrooms)
o DEEPLY AFFORDABLE HOUSING (units at or below 40% AMI)
• Benchmark #3 Missing Middle & Unique Housing Types. Projects are either a missing middle
housing type (i.e. townhomes, courtyard apartments, small scale apartments) or a housing type that
is not commonly built: tiny homes, modular homes, pre-fab homes, accessory dwelling units
(ADUs).
o MISSING MIDDLE HOUSING
4
3. FY23 Housing Activities – To encourage the incorporation of the four proposed Funding Priorities
in RDA-funded housing projects, RDA staff proposes allocating funding to the following programs
and tactics as part of the RDA’s FY23 budget. Some of the housing activities may achieve multiple
Funding Priorities.
HOUSING PRIORITY HOUSING ACTIVITIES
1. AFFORDABLE
HOME OWNERSHIP
Shared Equity Model A shared equity housing model such as a
community land trust provides the opportunity to hold title to land to
preserve its long-term availability for affordable housing. This model
allows for both home ownership and shared equity. As part of the Westside
Community Initiative (WCI), the RDA will explore some form of a shared
equity program or partnership to facilitate affordable ownership.
Land Acquisition The RDA will seek opportunities to acquire land to
accommodate ownership products. Land could potentially be contributed to
a community land trust or marketed by an RFP to partner on
homeownership projects or other housing priorities.
2. FAMILY HOUSING
Shared Equity Model This model will also be utilized to facilitate family
housing with 3+ bedrooms in particular. Family housing is likely to take
the form of missing-middle type housing or condominiums.
Land Acquisition Similar to homeownership, land acquisition can be used
to facilitate family-sized units through a targeted RFP.
Housing Development Loan Program (gap financing)* Although not the
most direct tool to encourage family-sized units, these units will be
prioritized by weighting their importance as a “3” or top priority. Staff also
suggests updating the benchmark to meet this priority by requiring 20%
family-sized units of total units – up from 10%. Finally, the Board could
consider requiring family-sized units as a threshold to qualify for the
competitive NOFA.
3. DEEPLY
AFFORDABLE
HOUSING
Housing Development Loan Program (gap financing)*These units will
be prioritized by weighting their importance as a “3” or top priority. Staff
also suggests updating the benchmark to meet this priority by requiring at
least 20% of the units are set aside for special populations [i.e. for
populations making 40% AMI or below] of total units – up from 10%.
Finally, the Board could consider requiring deeply affordable units as a
threshold to qualify for the competitive NOFA.
4. MISSING MIDDLE
HOUSING
Land Acquisition Similar to homeownership, land acquisition can be used
to facilitate missing middle housing such as small-scale apartment
buildings and townhomes through a targeted RFP.
5
Accessory Dwelling Unit (ADUs) Assistance ADU assistance was
proposed as a strategy within the FY22 budget and should be carried over
to FY23. ADUs are considered as a type of missing middle housing /unique
housing type as they can be added to a lot without changing the character of
a neighborhood. These units accommodate different walks of life from
young professionals to retirees looking to age in place. The RDA will work
to establish some form of an ADU program or partnership to facilitate the
construction of ADUs on the City’s westside or citywide. Staff
recommends allocating more funding to this program in addition to the
$250,000 allocated is last year’s budget, especially as the average ADU
costs $140,000 (including utilities) + $8,000 in permit fees.
* Housing Development Loan Program (“HDLP”) – In its essence, the HDLP is a gap financing tool for affordable
housing projects. This financing can be marketed for specific project types (i.e. family housing NOFA); however, this year
staff is proposing to allocate funding to the following activities:
• Competitive Affordable Housing NOFA (see Priorities Ranking under Attachment A)
• Open-Ended Affordable Housing NOFA
• High Opportunity Affordable Housing NOFA
Figure 2:
6
NEXT STEPS:
• As a part of the budget presentation, RDA staff will present the proposed FY23 Funding Strategy
including the projected amount of revenue to be allocated to each of the four housing funds; the
Funding Priorities; and the funding allocations for each housing activity.
• The Board shall consider the Funding Strategy as part of the annual budget adoption process.
• Pursuant to the Housing Development Loan Program Policy, the Board must also approve the
proposed Funding Priorities via a separate resolution.
ATTACHMENTS:
• Attachment A – Competitive Affordable Housing NOFA – Priorities Ranking
7
Attachment A - Competitive Affordable Housing NOFA –
Priorities Ranking
CATEGORY
POLICY OBJECTIVE
NOFA
RANKING
WEIGHT
0.5%
INTEREST
RATE
REDUCTION
1 Homeownership Create opportunities for those who have historically rented
in the community to build wealth and establish permanent
roots through homeownership.
3
X
2 Family Housing Provide opportunities for families to enjoy the many
benefits of urban living by encouraging the development of
housing that is more conducive to larger household sizes.
3
(Potential
Threshold)
X
3 Target
Populations
Expand the availability of units for extremely low-income
households and special populations, thereby providing
housing options for individuals or families that are homeless
or at risk of homelessness.
3
(Potential
Threshold)
X
4 Missing Middle &
Unique
Housing
Types
Promote an array of scale of project types to diversify the
City’s housing stock/forms and provide more affordable
living options for residents.
3 X
5 Sustainability Achieve green building and energy conservation
standards to lower housing expenses, conserve resources,
and promote resiliency.
1 X
6 Transportation
Opportunities
Promote a multimodal transportation network and ensure
convenient and equitable access to a variety of
transportation options.
1 X
7 Neighborhood
Safety
Utilize the development of housing as a method to remove
blight, reduce crime, revitalize neighborhoods, and stabilize
communities.
1 X
8 Expand
Opportunity
Provide for Neighborhoods of Opportunity by promoting
the economic diversity of the housing stock within
neighborhoods.
1 X
9 Neighborhood
Impact
Encourage housing that is high-quality, enduring, and that
contributes to neighborhood context and livability through
architectural and urban design best practices.
1 X
10 Commercial
Vitality
Foster a mix of land uses and unique neighborhood business
districts that adequately meet the local community’s needs.
1 X
11 Historic
Preservation
/Adaptive Reuse
Encourage the preservation and/or reuse of buildings to
preserve the character of neighborhoods.
1 X
12 Public Art Promote cultural expression and add to the experience and
value of the built environment through art that is publicly
visible or accessible for all to experience.
1 X
CITY COUNCIL OF SALT LAKE CITY
451 SOUTH STATE STREET, ROOM 304
P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476
COUNCIL.SLCGOV.COM
TEL 801-535-7600 FAX 801-535-7651
COUNCIL STAFF REPORT
CITY COUNCIL of SALT LAKE CITY
TO:RDA Board Members
FROM: Ben Luedtke
Budget and Policy Analyst
DATE:March 8, 2022
RE: Redevelopment Agency (RDA)
Budget Amendment Number Two FY2022
________________________________________________________________________________
RDA Budget Amendment Number Two includes requested changes to 14 project areas and funds and two
reallocations of past appropriations. Total expenditures are $13,762,458 for 53 items in this amendment. Most of
the proposed items are true-up adjustments based on preliminary property tax increment numbers from Salt Lake
County. Actual tax increment received could be adjusted up or down by the end of March. An updated transmittal
will be sent later this month or next when the final numbers are available.
The annual budget uses a conservative forecasting of property tax increment which results in an end of fiscal year
amendment to recognize and adjust budgets based on actual tax increment revenues. Preliminary tax increment
numbers significantly increased in all project areas except the Northwest Quadrant. This is the first fiscal year
budgeting for Northwest Quadrant tax increment so the amount in the annual budget was an educated guess since
there were no prior year revenues to use as a basis.
The additional and background information section near the end of this staff report includes project area expiration
dates and allowable uses of RDA funds per state law.
LEGALLY REQUIRED ITEMS
Many items in the budget amendment are legal requirements for the RDA which mostly fall into three categories:
Taxing entity payments which are pass throughs from the RDA to the School District or Salt Lake County as
required by interlocal agreements.
Property tax increment reimbursements to property owners that have agreements with the RDA. If certain
conditions are met, then a portion of their property taxes is reimbursed. This is called post-performance
because the reimbursement is only provided after the property owner has met the conditions and the
County Assessor confirms higher property values.
State law affordable housing set aside which is required only for some project areas which mostly goes to
the primary housing fund (can be used citywide for units with rent affordable to 80).
DISCRETIONARY ITEMS
The items below are not legal requirements of the RDA. If desired, the Board could decide to take additional time to
consider some or all the items below and could decline to fund any of the items. The Board may wish to reference
Attachment 1 – The RDA’s Guiding Framework for evaluating and prioritizing budget requests. Note that holding
Project Timeline:
Set Date & 1st Briefing: March 8, 2022
Public Hearing & 2nd Briefing: April 12, 2022
Potential Action: TBD
Page | 2
accounts are typically for capital projects so the funding does not lapse to fund balance at the end of the fiscal year,
and the Board would need to approve specific use of the funds in a future budget opening.
Central Business District (CBD)
A. $306,360 request for additional funding to the Storefront Revitalization Pilot Program holding account which
has an existing budget of $83,832. If approved, then the new total budget would be $390,192. During the
FY2022 annual budget, the program was described as facilitating visible improvements to properties,
decreasing vacancy rates, providing missing retail or services, retaining, or creating jobs, and/or establishing
new commercial space. The RDA staff will return to the Board with a draft program policy before the funds are
available for use.
Policy Questions:
Pending Policy Feedback – The Board may wish to discuss preferences they would like incorporated
into the pending program policy.
Timeline – The Board may wish to ask the Administration for a timeline when the program would be
implemented and how interested businesses would hear about it and how funds would be approved /
disbursed.
B. $400,000 request for Gallivan Center repairs including sewer lines and HVAC systems at several RDA-owned
properties that are leased to restaurants. Note this holding account is separate from another Gallivan Center
holding account for repairs to the underground parking structure and staircase.
Policy Question:
Total Cost and Funding Sources – The Board may wish to ask the Administration if this budget would
fully fund the project and if other entities are contributing funding. See Additional Info section below
for background on the Gallivan Center management structure.
West Capitol Hill (note this project area no longer collects property tax increment)
C. $150,000 for a construction cost overrun holding account and reduce an equivalent amount from the
administration budget which mostly covers personnel expenses. The holding account is to help cover potential
cost overruns for two construction projects in the area: Marmalade Library Plaza and 300 West streetscape
improvements from North Temple to 1000 North.
Policy Questions:
Traffic Calming on 300 West – The Board may wish to discuss with the Administration to what extent
the 300 West streetscape improvements include traffic calming improvements since the City’s
prioritization of traffic calming efforts has increased since the project’s original designs, particularly in
that area.
Timeline – The Board may wish to ask the Administration for a timeline when the Marmalade Library
Plaza and 300 West streetscape improvements will be constructed.
D. $338,141 for a construction cost overrun holding account and reduce an equivalent amount from the Arctic
Court infill home budget. If approved, then there would be no funding remaining for constructing a home on
Arctic Court. This funding is for the same cost overruns mentioned in item C above. The Arctic Court infill
home was originally funded from the Program Income Fund.
Policy Question:
Housing Type and Affordability – The Board may wish to discuss with the Administration what type of
housing would be built on Arctic Court, if there’s an affordability level identified and what development
options are available since the project was originally funded several years ago.
Depot District
E. $694,847 for a new Central Station property development holding account. These funds could be used for
infrastructure improvements. The RDA owns several properties covering approximately four acres in the
Page | 3
Central Station area between Dansie Drive, 600 West, 100 South and Interstate 15. (Staff note: this is a distinct
project from the “Station Center” area which is west of the Rio Grande Depot) A request for proposals (RFP)
may be issued asking interested parties to submit redevelopment proposals. Note that this RFP would be
separate from a larger RFP which the RDA is coordinating with the Utah Transit Authority (UTA).
Granary District
F. $234,183 request for additional funding to the Community & Cultural Initiative Pilot Program holding account
which has an existing budget of $443,731. If approved, then the new total budget would be $677,915. During the
FY2022 annual budget, the program was described as supporting public arts and cultural programming to
support community organizations in better carrying out their missions.
Policy Questions:
Pending Policy Feedback – The Board may wish to discuss if any movement was made towards
implementing this project in FY 22, or if it is still in the planning phases. If not, the Board may wish to
indicate preferences that could be included in the pending program policy.
Timeline – The Board may wish to ask the Administration for a timeline when the program would be
implemented, how interested organizations would hear about it, and how funds would be approved /
disbursed.
Fleet Block – The Board may wish to discuss with the Administration whether this pilot program could
contribute to redevelopment of the Fleet Block. The Granary District stops collecting tax increment in
2025. The Administration recently released a Fleet Block Request for Information and will be
evaluating the responses.
North Temple
G. $150,422 in additional funding for the North Temple Strategic Intervention Fund holding account. If approved,
then the new total funding available would be $4,047,080. The Board created this holding account as part of
the FY2022 annual budget. The funds were left intentionally flexible so the agency could take advantage of
opportunities that arise in the project area. Note that the Board would need to approve release of the funds in a
future budget opening once specific uses are identified.
Block 70
H. $163,681 in additional funding for the Regent Street Parking Structure Capital Reserve holding account which
has a current budget of $100,000. If approved, then the new total budget would be $263,681.
Policy Question:
Regent Street Parking Structure Responsibility – The Board may wish to ask the Administration to
what extent is the RDA and other entities responsible for maintenance of the parking structure. Note
that the agreement for maintenance is related to the guarantee of a certain number of parking spaces to
serve the Eccles Theater.
North Temple Viaduct
I. $1,409,681 debt service payment to the General Fund. This is an ongoing annual payment to reimburse the
General Fund for fronting annual bond payments when the property tax increment revenues were insufficient
to cover the debt service. Note that the General Fund carries the responsibility to cover the debt service each
year, but when the debt was issued, the understanding was that the RDA would eventually fully cover those
payments.
Policy Question:
Fully Reimbursing the General Fund – The Board may wish to ask the Administration when is the
General Fund projected to be fully reimbursed for earlier bond payments? The Board may also wish to
have a discussion with the Administration about policy goals for these funds. In the FY2022 annual
budget the Council transferred $1 million from that year’s reimbursement to the General Fund to the
North Temple Strategic Intervention Fund, as it was more than what was needed to cover the General
Fund’s bond obligation.
Page | 4
Northwest Quadrant (note this is the first year of property tax increment collection)
J. $-296,900 reduction in the shared costs holding account because of property tax increment revenues being less
than budgeted. The shared costs holding account is intended to be used for projects that benefit multiple
properties. No specific projects are currently identified for use. Note this is the first year the RDA budgeted
revenues from the Northwest Quadrant so the $1.5 million budget was a best guess without having prior year
actuals as a reference.
State Street (note this is the first year of property tax increment collection; also note that negotiations are
ongoing for the County to participate, so as of now increment only includes the City and School District portions)
K. $500,000 for a new public infrastructure improvements holding account. The funds could be used for capital
improvement projects in the public right of way such as traffic calming, street lighting or utilities.
L. $500,000 for a new Commercial Loan Program holding account.
Policy Questions:
Pending Policy Feedback – The Board may wish to discuss preferences for this program that the
Administration could add to the pending program policy.
Difference from Revolving Loan Fund – The Board may wish to ask the Administration how is the
Commercial Loan Program different than the RDA’s Revolving Loan Fund?
M. $1,631,183 for a new Ballpark Strategic Development holding account. Specific projects are to be determined
and may be informed by the Ballpark Station Area Plan recommendations. The Administration is currently
evaluating public input on the draft plan and it will then be presented to the Planning Commission. The City
Council would ultimately review and adopt the plan. Note that the Ballpark and adjacent parking lot are not
included in the State Street project area but are part of a separate and inactive project area. State law does
allow project area funds to be spent outside of the boundaries if it will benefit the contributing
project area and is approved by the RDA Board and City Council.
Policy Question:
Ballpark Not in State Street Project Area – The Board may wish to discuss with the Administration
whether the Ballpark should be moved into the State Street project area.
Council Review of Draft Plan – The Board may wish to ask the Administration if the Council will have
opportunity to review/comment before it is sent to the Planning Commission, consistent with the
“midpoint check in” process outlined in the Council’s resolution on master plans.
9-Line (note this is the first year of property tax increment collection)
N. $962,708 for a new property acquisition holding account. The funds are proposed to be left intentionally
flexible so the agency could take advantage of opportunities for property acquisition that arise in the project
area.
Policy Question:
Property Acquisition Guidance – The Board may wish to provide the Administration policy guidance
about which properties might be preferable to acquire (example – properties for the community land
trust/westside community initiative, commercial properties to guarantee rent affordability, business
districts / nodes identified in the Westside Master Plan). The Board may also wish to consider how this
funding could be leveraged to implement aspects of the pending gentrification study.
O. $300,000 for a new Accessory Dwelling Unit (ADU) Pilot Program holding account. Note that an ADU
assistance program in the 9-Line is an identified performance benchmark in the interlocal agreement with the
County. If the RDA successfully implements this program, then it’s one of the conditions needed to increase the
County’s level of participation, that is, increase the percentage of tax increment available for use in the 9-Line.
Page | 5
Program Income Fund
P. $100,000 for an increase to the Miscellaneous Property Expenses line item. Note that $50,000 is coming from
an insurance reimbursement for fire damage at the Overniter Motel on North Temple. The other $50,000 is
coming from fund balance to cover the insurance deductible.
Administration Budget
Q. $436,402 increase to the Charges and Services line item. Proposed uses include:
$155,000 for a second round of construction mitigation grants to businesses in Central Ninth. Note that
the first round of grants was provided by the General Fund through the Economic Development
Department. The construction schedule has been extended by six months or longer because of electrical
undergrounding delays.
$100,000 for Ballpark redevelopment efforts which are TBD
$25,000 for a RAISE grant contribution to study potential TRAX extensions. The total grant
application is requesting $950,000. The Rebuilding American Infrastructure with Sustainability and
Equity grant is funded by the recently passed bipartisan infrastructure law.
$156,402 for other expenses
Policy Questions:
Construction Mitigation Grants – The Board may wish to ask the Administration if any funding
remains from the $200,000 from the General Fund for construction mitigation that could be used for a
second round of grants at Central Ninth. The Board may also wish to ask how are businesses allowed to
use the grant funds and how are funds approved / disbursed?
Other Expenses – The Board may wish to ask the Administration what the remaining $156,402 would
be used for.
Transfer of Housing Trust Fund from the Community and Neighborhoods Development
Department to the RDA
R. $2 million from the Housing Trust Fund to be used in the Housing Development Loan Program. This step
continues implementation of the Council’s direction to create a one-stop shop for housing development in the
City. Note this step will transfer the Fund Balance and make it available for use. Additional steps to transfer the
Housing Trust Fund are expected to include a resolution to the RDA Board, an ordinance amendment to the
Council and the administrative transfer of all related records.
Policy Question:
Details of Housing Trust Fund Portfolio – The Board may wish to ask the Administration for details on
the funds’ portfolio such as how many loans exist, what is the total future repayments, is an aging
report being developed so the agency knows how much revenue to budget each year from repayments,
etc.
Revolving Loan Fund
S. $550,000 reappropriation for previously discussed property acquisition. The Revolving Loan Fund would be
reimbursed for fronting this cost from the property sale or ground lease revenues in future years. The Revolving
Loan Fund would have $4,853,577 available to lend.
ADDITIONAL & BACKGROUND INFORMATION
Gallivan Utah Center Owners Association (GUCOA)
GUCOA is the managing agency for the entire block through Covenants, Conditions & Restrictions (CCRs) and is
responsible for maintenance and programming. The RDA is the majority owner (over 51%). The CCRs originally
contemplated a contractor to provide maintenance and programming which has been provided by the Public
Services Department after an RFP process. An assessment is levied on the first floor of adjacent commercial
properties to contribute funding to administration, programming, and events. The programming contract has
requirements for a set number of events that must be open to the public annually. Gallivan also provides many free
events to activate the space consistent with the Council/Board’s public policy goals for downtown.
Page | 6
Project Area Expiration Dates
Project areas have a designated expiration (aka sunset) date. State law allows RDAs to continue spending tax
increment already collected in expired project areas such as Sugar House. Sometimes project areas can be
extended/renewed for a longer length which happened to the Central Business District. The table below
summarizes project area timeframes from creation to expiration.
Project Area Initial Collection
Year
Last Collection
Year
Central Business District*†1983 2042
West Capitol Hill**1998 2022
Depot District†1999 2024
Granary District†2000 2025
North Temple†2012 2039
North Temple Viaduct CDA 2012 2037
Northwest Quadrant 2019 2038
Block 70 CDA 2016 2040
Stadler Rail 2019 2038
Block 67 2021 2040
9-Line 2021 2040
State Street 2021 2040
NOTE: Only project areas that generate tax increment are listed in the table
*The RDA Board extended the CBD from the original expiration year of 2007
** The RDA Board extended the original expiration year to focus on 300 West streetscape
improvements
†In October 2021 the Board approved two-year extensions for these project areas. State law was
changed to allow extensions for projects areas negatively impacted by the COVID-19 pandemic
Statutory Definition of Project Area Development (Utah Code 17C-1-102(48))
The section of Utah Code below is a key list of allowable uses of RDA funds. The Utah Legislature updated this
statute in the 2016 General Session.
(47)"Project area development" means activity within a project area that, as determined by the board, encourages,
promotes, or provides development or redevelopment for the purpose of implementing a project area plan,
including:
(a)promoting, creating, or retaining public or private jobs within the state or a community;
(b)providing office, manufacturing, warehousing, distribution, parking, or other facilities or improvements;
(c)planning, designing, demolishing, clearing, constructing, rehabilitating, or remediating environmental
issues;
(d)providing residential, commercial, industrial, public, or other structures or spaces, including recreational
and other facilities incidental or appurtenant to the structures or spaces;
(e)altering, improving, modernizing, demolishing, reconstructing, or rehabilitating existing structures;
(f)providing open space, including streets or other public grounds or space around buildings;
(g)providing public or private buildings, infrastructure, structures, or improvements;
(h)relocating a business;
(i)improving public or private recreation areas or other public grounds;
(j)eliminating blight or the causes of blight;
(k)redevelopment as defined under the law in effect before May 1, 2006; or
(l)any activity described in Subsections (48)(a) through (k) outside of a project area that the board
determines to be a benefit to the project area.
ATTACHMENTS
1. RDA Guiding Framework
Page | 7
ACRONYMS
CBD – Central Business District
FY – Fiscal Year
HVAC – Heating, Ventilation, and Air Conditioning
PIF – Program Income Fund
RDA – Redevelopment Agency
RFP – Request for Proposals
TBD – To Be Determined
UTA – Utah Transit Authority
11.24.21 Guiding Framework This Guiding Framework is a strategic operational document outlining the methodology for evaluating and prioritizing projects requesting RDA financial assistance. The RDA’s Mission and Values form the foundation of the Guiding Framework, declaring the RDA’s purpose and the intended economic, social, and physical outcomes expected of RDA projects and partnerships. MISSION: The Redevelopment Agency of Salt Lake City strengthens neighborhoods and business districts to improve livability, create economic opportunity and foster authentic, equitable communities, serving as a catalyst for strategic development projects that enhance the City’s housing opportunities, commercial vitality, public spaces, and environmental sustainability. VALUES: Economic Opportunity- We invest in the long-term prosperity and growth of our local economy. Equity & Inclusion- We prioritize people-focused projects and programs that encourage everyone to participate in and benefit from development decisions that shape their communities. Neighborhood Vibrancy- We cultivate distinct and livable places that are contextually sensitive, durable, connected, and sustainable. PROJECT EVALUATION PROCESS: The RDA prioritizes projects that demonstrate a commitment to the Mission and Values, evaluating projects via three steps, which answer the following questions: 1.) Does the project meet the minimum THRESHOLDS required for RDA participation? 2.) To what degree does the project benefit the public by achieving defined LIVABILITY BENCHMARKS, thereby warranting RDA assistance? 3.) Does the project meet the CRITERIA outlined in existing RDA programs and policies, such as the RDA Loan Program or Tax Increment Reimbursement Program? *Spanning a 1-3 year time frame, Project Area Work Plans identify redevelopment objectives and strategic redevelopment projects for each project area, along with a corresponding schedule & budget for each project. The Project Area Work Plans will be based on relevant City policies and plans and the Project Area Plans that were adopted when the project area was created and will provide direction for the annual RDA budget process. Step 1: THRESHOLDS Alignment with adopted City policies & plans Alignment with RDA Project Area Work Plans* Financial viability with a demonstrated and reasonable need for public assistance Step 2: LIVABILITY BENCHMARKS Economic Opportunity Leveraging Timeliness Return of Investment Permanent Job Creation & Retention Affordable Commercial Spaces Ownership Equity & Inclusion Transit Opportunities Mixed-Income Neighborhoods Neighborhood Safety Community Engagement & Support Housing for Everyone Displacement Mitigation Affordable Housing Preservation Neighborhood Vibrancy Public Space Public Art Architecture & Urban Design Sustainability Walkability Building Preservation, rehabilitation, or adaptive reuse Missing Middle & Unique Building Types Step 3: PROGRAM CRITERIA Evaluation of project according to respective RDA policies, programs and procedures Exhibit A to the Resolution
Preliminary Budget Amendment #2
March 8, 2022
Update to Original Recommendations
**Preliminary**
West Temple Gateway Approved BA #1 Change Recommended
BA #2 Notes
Revenue and Other Sources
Tax Increment ---
Interest Income 50,000 -50,000
Total Revenue and Other Sources 50,000 -50,000
Expenses and Other Uses --
Transfer to Administration 50,000 (40,000)🔻🔻10,000
Capital Expenditures {Holding Accounts}--
West Temple Gateway Construction Mitigation -40,000 🔺🔺40,000 New holding account.
Total Expenses and Other Uses 50,000 (40,000)🔻🔻10,000
Total Over / (Under)-40,000 🔺🔺40,000
Update to Original Recommendations
**Preliminary**
Block 70 Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources --
Tax Increment 1,922,323 233,830 🔺🔺2,156,154
Interest Income ---
Release of Cash Bond -Eccles Theater -700,000 🔺🔺700,000
Internal Transfers In --
CBD Taxing Entity Payments 4,109,200 -4,109,200
CBD Eccles Debt Service RDA match 3,107,740 -3,107,740
CBD Eccles Debt Service Reserve Account 1,800,000 -1,800,000
Total Revenue and Other Sources 10,939,263 933,831 🔺🔺11,873,094
Expenses and Other Uses
Taxing Entity Payments 576,697 70,149 🔺🔺646,846
Eccles Theater Debt Service 8,068,209 -8,068,209
Reserve for Eccles Debt Service 90,617 -90,617
Regent Street Bond Debt Service 1,448,740 -1,448,740
Fundraising Fulfillment 100,000 -100,000
Eccles Theater-Operating Reserve for Ancillary Spaces 475,000 -475,000
Regent Street Maintenance 80,000 -80,000
Capital Expenditures {Holding Accounts}---
Regent Street Parking Structure Capital Reserves 100,000 163,681 🔺🔺263,682
Bennion Jewelers Relocation Agreement 100,000 🔺🔺100,000
Eccles Theater/Site Improvements 600,000 🔺🔺600,000
Total Expenses and Other Uses 10,939,263 933,831 🔺🔺11,873,094
--
Total Over / (Under)---
Fund FY22 Amended Budget Projected Amount Variance
Central Business District 27,573,150 29,339,051 1,765,901
West Capitol Hill - - -
West Temple Gateway - - -
Depot District 3,921,164 5,212,664 1,291,500
Granary District 621,124 981,407 360,282
North Temple 435,346 674,112 238,765
Block 70 1,922,323 2,156,154 233,830
North Temple Viaduct 1,181,479 2,612,628 1,431,148
Northwest Quadrant 1,500,000 1,128,875 (371,125)
Stadler Rail 71,000 108,327 37,327
State Street - 3,288,979 3,288,979
9-Line - 1,847,159 1,847,159
Total 37,225,586 47,349,356 10,123,766
Revenue projections provided by the County are not final. Actual revenue will be received in March 2022
and may vary from the projected amounts given above.
Tax Increment
Revenue
Projections
Key Changes
**Preliminary**
Central Business District Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources
Tax Increment 27,573,150 1,765,901 🔺🔺29,339,051
Interest Income 350,000 -350,000
Total Revenue and Other Sources 27,923,150 1,765,901 🔺🔺29,689,051
Expenses and Other Uses -
Taxing Entity Payments 16,543,890 1,059,540 🔺🔺17,603,431
TI Reimbursements 1,477,398 -1,477,398
Transfer to Block 70 Debt Service -
Eccles Debt Service Block 70 RDA Match 3,107,740 -3,107,740
Eccles Debt Service Reserve 1,800,000 -1,800,000
Miscellaneous Property Expenses 975,000 -975,000
Parking Ramp Leases 64,355 -64,355
Gallivan Maintenance 523,138 -523,138
Gallivan Programming 250,000 -250,000
Gallivan Administration 340,482 -340,482
Transfer to Administration 2,757,315 -2,757,315 Hold flat to budget.
Capital Expenditures {Holding Accounts}--
Storefront Revitalization 83,832 306,360 🔺🔺390,192 Remainder of funds added to this program.
Gallivan Repairs -400,000 🔺🔺400,000 New holding account.
Total Expenses and Other Uses 27,923,150 1,765,901 🔺🔺29,689,051
Total Over / (Under)---
Key Changes
**Preliminary**
West Capitol Hill Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources
Tax Increment ---
Interest Income 150,000 -150,000
Total Revenue and Other Sources 150,000 -150,000
Expenses and Other Uses -
Transfer to Administration 150,000 (150,000)🔻🔻
Capital Expenditures {Holding Accounts}--
West Capitol Hill Projects -150,000 🔺🔺150,000 New holding account.
Total Expenses and Other Uses 150,000 -150,000
Total Over / (Under)---
Key Changes
**Preliminary**
West Temple Gateway Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources
Tax Increment ---
Interest Income 50,000 -50,000
Total Revenue and Other Sources 50,000 -50,000
Expenses and Other Uses --
Transfer to Administration 50,000 -50,000
Total Expenses and Other Uses 50,000 -50,000
Total Over / (Under)---
Key Changes
**Preliminary**
Depot District Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources
Tax Increment 3,921,164 1,291,500 🔺🔺5,212,664
Interest Income 200,000 -200,000
Total Revenue and Other Sources 4,121,164 1,291,500 🔺🔺5,412,664
Expenses and Other Uses --
TI Reimbursements 1,820,977 144,628 🔺🔺1,965,606
Transfer to Primary Housing Fund 784,233 258,300 🔺🔺1,042,533
Miscellaneous Property Expenses 120,000 -120,000
Debt Service --
Grant Tower Debt Service 275,600 -275,600
Transfer to Administration 588,175 193,725 🔺🔺781,900
Capital Expenditures {Holding Accounts}--
Station Center Infrastructure 332,179 -332,179
Environmental Remediation 200,000 -200,000
Central Station (100 S)-694,847 🔺🔺694,847 Remaining funds go to this program.
Total Expenses and Other Uses 4,121,163 1,291,500 🔺🔺5,412,664
Total Over / (Under)---
Key Changes
**Preliminary**
Granary District Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources
Tax Increment 621,124 360,282 🔺🔺981,407
Interest Income 45,000 -45,000
Total Revenue and Other Sources 666,124 360,282 🔺🔺1,026,407
--
Expenses and Other Uses --
Transfer to Primary Housing Fund 124,225 72,056 🔺🔺196,281
Miscellaneous Property Expenses 5,000 -5,000
Transfer to Administration 93,169 54,042 🔺🔺147,211
Capital Expenditures {Holding Accounts}--
Community/Cultural Initiative 443,731 234,183 🔺🔺677,915 Remaining funds go to this program.
Total Expenses and Other Uses 666,124 360,282 🔺🔺1,026,407
--
Total Over / (Under)---
Key Changes
**Preliminary**
North Temple Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources
Tax Increment 435,346 238,765 🔺🔺674,112
Interest Income 15,000 -15,000
External Transfers In
Debt Service Fund Class 81 North Temple Viaduct Bond
RDA Reimbursement (One-time)1,000,000 -1,000,000
General Fund Investments in Underserved
Neighborhoods Holding Account (One-time)669,138 -669,138
Internal Transfers In
Total Revenue and Other Sources 2,119,484 238,765 🔺🔺2,358,250
Expenses and Other Uses --
Transfer to Primary Housing Fund 87,069 47,753 🔺🔺134,822
Transfer to Administration 43,535 23,876 🔺🔺67,411
Capital Expenditures {Holding Accounts}--
10% School Construction Fund 30,474 16,713 🔺🔺47,188
North Temple Strategic Intervention Fund 1,958,406 150,422 🔺🔺2,108,829 Remaining funds go to this program.
Total Expenses and Other Uses 2,119,484 238,765 🔺🔺2,358,250
--
Total Over / (Under)---
Key Changes
**Preliminary**
Block 70 Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources --
Tax Increment 1,922,323 233,830 🔺🔺2,156,154
Interest Income ---
Internal Transfers In --
CBD Taxing Entity Payments 4,109,200 -4,109,200
CBD Eccles Debt Service RDA match 3,107,740 -3,107,740
CBD Eccles Debt Service Reserve Account 1,800,000 -1,800,000
Total Revenue and Other Sources 10,939,263 233,831 🔺🔺11,173,094
Expenses and Other Uses
Taxing Entity Payments 576,697 70,149 🔺🔺646,846
Eccles Theater Debt Service 8,068,209 -8,068,209
Reserve for Eccles Debt Service 90,617 -90,617
Regent Street Bond Debt Service 1,448,740 -1,448,740
Fundraising Fulfillment 100,000 -100,000
Eccles Theater-Operating Reserve for Ancillary Spaces 475,000 -475,000
Regent Street Maintenance 80,000 -80,000
Capital Expenditures {Holding Accounts}---
Regent Street Parking Structure Capital Reserves 100,000 163,681 🔺🔺263,682 Remaining funds go to this program.
Total Expenses and Other Uses 10,939,263 233,831 🔺🔺11,173,094
--
Total Over / (Under)---
Key Changes
**Preliminary**
North Temple Viaduct Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources --
Tax Increment 1,181,479 1,431,148 🔺🔺2,612,628
Interest Income 7,500 -7,500
Total Revenue and Other Sources 1,188,979 1,431,148 🔺🔺2,620,128
--
Expenses and Other Uses --
Debt Service Payment to Salt Lake City 1,171,257 1,409,681 🔺🔺2,580,939 Remaining funds to this debt service.
Transfer to Administration 17,722 21,467 🔺🔺39,189
Total Expenses and Other Uses 1,188,979 1,431,148 🔺🔺2,620,128
Total Over / (Under)---
Key Changes
**Preliminary**
Northwest Quadrant Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources
Tax Increment 1,500,000 (371,125)🔻🔻1,128,875 Less increment projected than budgeted.
Interest Income --
Total Revenue and Other Sources 1,500,000 (371,125)🔻🔻1,128,875
Expenses and Other Uses
TI Reimbursement NWQ Phase I 500,000 -500,000
Transfer to Secondary Housing Fund 350,000 -350,000
Transfer to Primary Housing Fund 150,000 (37,112)🔻🔻112,888
Transfer to Administration 150,000 (37,112)🔻🔻112,888
Capital Expenditures {Holding Accounts}
Shared Costs 350,000 (296,900)🔻🔻53,100
Total Expenses and Other Uses 1,500,000 (371,125)🔻🔻1,128,875
--
Total Over / (Under)---
Key Changes
**Preliminary**
Stadler Rail Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources --
Tax Increment 71,000 37,327 🔺🔺108,327
Interest Income --
Total Revenue and Other Sources 71,000 37,327 🔺🔺108,327
Expenses and Other Uses
TI Reimbursements 56,800 29,861 🔺🔺86,662
Transfer to Primary Housing Fund 7,100 3,732 🔺🔺10,833
Transfer to Administration 7,100 3,732 🔺🔺10,833
Total Expenses and Other Uses 71,000 37,327 🔺🔺108,327
Total Over / (Under)---
Key Changes
**Preliminary**
State Street Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources
Tax Increment -3,288,979 🔺🔺3,288,979
Interest Income ---
Total Revenue and Other Sources -3,288,979 🔺🔺3,288,979
Expenses and Other Uses
Transfer to Primary Housing Fund -328,897 🔺🔺328,898 School District contribution must go to family and
workforce housing.
Transfer to Administration -328,897 🔺🔺328,898
Capital Expenditures {Holding Accounts}
Infrastructure Improvements -500,000 🔺🔺500,000
Commercial Loan Program -500,000 🔺🔺500,000
Ballpark Strategic Development -1,631,183 🔺🔺1,631,183 Remainder of funds to this program.
Total Expenses and Other Uses -3,288,979 🔺🔺3,288,979
Total Over / (Under)---
Key Changes
**Preliminary**
9 Line Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources --
Tax Increment -1,847,159 🔺🔺1,847,159
Interest Income ---
Total Revenue and Other Sources -1,847,159 🔺🔺1,847,159
Expenses and Other Uses
Taxing Entity Payments -224,966 🔺🔺224,966 Annual Mitigation payment to County.
County Administration and Operations -26,995 🔺🔺26,996 6% of the County TI contribution.
Transfer to Primary Housing Fund -184,715 🔺🔺184,716 School District contribution must go to family and
workforce housing.
Transfer to Administration -147,772 🔺🔺147,773
Capital Expenditures {Holding Accounts}
Property Acquisition -962,708 🔺🔺962,708
Accessory Dwelling Unit Program -300,000 🔺🔺300,000
Total Expenses and Other Uses -1,847,159 🔺🔺1,847,159
Total Over / (Under)---
Key Changes
**Preliminary**
Revolving Loan Fund Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources
Interest on Investment 470,000 -470,000
Principal Payments 55,000 -55,000
Interest on Loans 25,000 25,000
Total Revenue and Other Sources 550,000 -550,000
Expenses and Other Uses
Available to Lend 434,000 -434,000
Utah Theater Tenant Relocation 116,000 -116,000
Total Expenses and Other Uses 550,000 -550,000
Total Over / (Under)---
Key Changes
**Preliminary**
Program Income Fund Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources
Parking Structure Income 1,242,335 -1,242,335
Rents 215,700 -215,700
Interest Income 250,000 -250,000
Loan Repayments 28,000 -28,000
Interest on Loans 6,500 -6,500
Insurance Reimbursement -50,000 🔺🔺50,000 Overnighter insurance claim.
Internal Transfers In ---
Use of North Temple Catalytic Project Holding Account
(One-time)---
Total Revenue and Other Sources 1,742,535 50,000 🔺🔺1,792,535
Expenses and Other Uses
Professional Services 300,000 -300,000
Miscellaneous Property Expense 300,000 100,000 🔺🔺400,000 +$100K Overnighter expense due to fire.
Marketing and Sales 25,000 -25,000
Transfer Out to North Temple Project Area (One-time)---
Capital Expenditures {Holding Accounts}
Gallivan Repairs 250,000 -250,000
Commercial Revitalization Program 667,535 -667,535
Sustainability Technical Assistance Program 200,000 -200,000
Total Expenses and Other Uses 1,742,535 100,000 🔺🔺1,842,535
Total Over / (Under)-(50,000)🔻🔻(50,000)
Key Changes
**Preliminary**
Secondary Housing Fund Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources
Interest Income 44,000 -44,000
Internal Transfers In
Northwest Quadrant 350,000 -350,000
Total Revenue and Other Sources 394,000 -394,000
Expenses and Other Uses
Capital Expenditures {Holding Accounts}
Accessory Dwelling Unit Program 394,000 -394,000
Total Expenses and Other Uses 394,000 -394,000
Total Over / (Under)---
Key Changes
**Preliminary**
Primary Housing Fund Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources
Interest Income 225,000 -225,000
Loan Repayments 51,000 -51,000
Interest on Loans 70,000 -70,000
Internal Transfers In ---
Depot District 784,233 258,300 🔺🔺1,042,533
Granary District 124,225 72,056 🔺🔺196,281
North Temple 87,069 47,753 🔺🔺134,822
Northwest Quadrant 150,000 (37,112)🔻🔻112,888
State Street -328,897 🔺🔺328,898
9 Line -184,715 🔺🔺184,716
Total Revenue and Other Sources 1,491,527 854,610 🔺🔺2,346,138
Expenses and Other Uses
Transfer Out to North Temple Project Area (One-time)---
Capital Expenditures {Holding Accounts}
Housing Development Loan Program 491,527 854,610 🔺🔺1,346,138 Remaining funds to this program.
North Temple Strategic Intervention Fund 1,000,000 -1,000,000
Total Expenses and Other Uses 1,491,527 854,610 🔺🔺2,346,138
Total Over / (Under)---
Key Changes
**Preliminary**
Westside Community Initiative Fund
(Northwest Quadrant Housing Fund)Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources
UIPA Housing Allocation 250,000 159,031 🔺🔺409,031
Interest Income ---
Total Revenue and Other Sources 250,000 159,031 🔺🔺409,031
Expenses and Other Uses
Capital Expenditures {Holding Accounts}--
West Side Urban Land Fund 250,000 (250,000)🔻🔻-
Housing Development Loan Program 347,676 🔺🔺347,676 Move all funds to the HDLP.
Total Expenses and Other Uses 250,000 97,676 🔺🔺347,676
--
Total Over / (Under)-61,354 🔺🔺61,355 Retain 15% in fund balance.
Key Changes
**Preliminary**
Housing Development Fund Approved BA #1 Change Recommended BA #2 Notes
Funding Our Future Land Discounts and Financing 2,590,000 -2,590,000
Transfer from Housing Trust Fund -2,000,000 🔺🔺2,000,000 Estimated funds available to lend.
Total Revenue and Other Sources 2,590,000 2,000,000 🔺🔺4,590,000
Expenses and Other Uses --
Capital Expenditures {Holding Accounts}--
Housing Development Loan Program 2,590,000 2,000,000 🔺🔺4,590,000
Total Expenses and Other Uses 2,590,000 2,000,000 🔺🔺4,590,000
Total Over / (Under)---
Key Changes
**Preliminary**
Administration Approved BA #1 Change Recommended BA #2 Notes
Revenue and Other Sources
Internal Transfers In
Revenue and Other Sources 2,757,315 -2,757,315
West Capitol Hill 150,000 (150,000)🔻🔻-
West Temple Gateway 50,000 -50,000
Depot District 588,175 193,725 🔺🔺781,900
Granary District 93,169 54,042 🔺🔺147,211
North Temple 43,535 23,876 🔺🔺67,411
Block 70 ---
North Temple Viaduct 17,722 21,467 🔺🔺39,189
Northwest Quadrant 150,000 (37,112)🔻🔻112,888
Stadler Rail 7,100 3,732 🔺🔺10,833
State Street -328,897 🔺🔺328,898
9 Line -147,772 🔺🔺147,773
Program Income Fund ---
Total Revenue and Other Sources 3,857,015 586,402 🔺🔺4,443,417
Expenses and Other Uses
RDA Personnel 2,254,632 -2,254,632
Administrative Fees 939,683 150,000 🔺🔺1,089,683
Operating & Maintenance 360,000 -360,000
Charges and Services 202,700 436,402 🔺🔺639,102 RAISE Grant, 900 S Improvements Shortfall, Ballpark Legacy
Project Visioning.
Furniture, Fixtures and Equipment 100,000 -100,000
Total Expenses and Other Uses 3,857,015 586,402 🔺🔺4,443,417
Total Over / (Under)---
Budget Reallocations
Request Source of Funds*Amount
Central Station Property Acquisition Revolving Loan Fund set aside from previous years.$550,000
West Capitol Hill Projects Arctic Court Infill Home funds in the Program Income
Fund $338,141
*The sources are from holding accounts the Board approved in previous years’ budgets.
DEPARTMENT OF FINANCE
POLICY AND BUDGET DIVISION
451 SOUTH STATE STREET, ROOM 238
PO BOX 145467, SALT LAKE CITY, UTAH 84114-5455 TEL 801-535-6394
ERIN MENDENHALL
Mayor
MARY BETH THOMPSON
Chief Financial Officer
CITY COUNCIL TRANSMITTAL
___________________________________ Date Received: ________________
Rachel Otto, Chief of Staff Date sent to Council: ___________
______________________________________________________________________________
TO: Salt Lake City RDA Board DATE: February 22, 2022
Ana Valdemoros, RDA Chair
FROM: Mary Beth Thompson, Chief Financial Officer
Danny Walz, RDA Director
SUBJECT: RDA Budget Amendment #2, FY2021-22
SPONSOR: NA
STAFF CONTACT: John Vuyk, Budget Director (801) 535-6394 or
Mary Beth Thompson (801) 535-6403 or
Mike Burns (801) 565-6461 or
Danny Walz (801) 535-7209
DOCUMENT TYPE: Budget Amendment Resolution
RECOMMENDATION: Review and discuss the proposed First Amendment to the Annual
RDA Budget for Fiscal Year 2022. Set public hearing date for adoption of the amendment.
BUDGET IMPACT:
REVENUE EXPENSE
RDA FUND $ 11,773,813.00 $ 13,762,458.00
RDA CIP FUND 0.00 0.00
TOTAL $ 11,773,813.00 $ 13,762,458.00
rachel otto (Feb 22, 2022 21:18 MST)2/23/22
2/23/22
EXECUTIVE SUMMARY:
The purpose of the second amendment (“amendment”) is to addresses the following items:
1. True-up TI to be received in the current fiscal year and allocate to current year initiatives.
2. Transfer budget for HTF from HAND to RDA for current fiscal year use.
3. Record receipt of NT project area Overnighter Motel fire insurance proceeds and allocate
to cleanup of site.
4. True-up prior year UIPA housing allocation.
5. Reallocated RLF funding to Central Station Property Acquisition.
6. Reallocate PIF Arctic Court Infill Home funding to Marmalade Plaza.
A summary spreadsheet document, outlining proposed budget changes is attached. The
Administration requests this document be modified based on the decisions of the Board. The
budget opening is separated in eight different categories:
A. New Budget Items
B. Grants for Existing Staff Resources
C. Grants for New Staff Resources
D. Housekeeping Items
E. Grants Requiring No New Staff Resources
F. Donations
G. Council Consent Agenda Grant Awards
I. Council Added Items
ATTACHMENTS:
A. Resolution
B. Budget Amendment #1 Summary Spreadsheet
C. RDA Transmittal
PUBLIC PROCESS: Public Hearing
REDEVELOPMENT AGENCY of SALT LAKE CITY
SALT LAKE CITY CORPORATION
451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV ꞏ WWW.SLCRDA.COM
P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 ꞏ FAX 801-535-7245
MAYOR ERIN MENDENHALL
Executive Director
DANNY WALZ
Director
STAFF MEMO
DATE: February 18, 2022
PREPARED BY: Erin Cunningham
RE: Preliminary Briefing of RDA Budget Amendment #2, FY 2021-2022
REQUESTED ACTION: Written Briefing
BUDGET IMPACTS: The preliminary Second Amendment identifies appropriations for Agency
operations and projects across multiple funds.
EXECUTIVE SUMMARY: The purpose of the briefing is to provide preliminary budget proposals for
the Second Amendment (“Amendment”). The proposed budget changes fall into three main categories:
1. Changes to budgets based on Property Tax Increment projections received from the County.
These amounts will be adjusted when the Agency receives the final distribution in March. The
proposals below are primarily driven by:
a. Fixed expenses that are often percentages of Tax Increment as defined by statutory or
contractual obligations or other consistent expenses, such as:
i. Taxing Entity Payments
ii. Tax Increment Reimbursements
iii. Primary Housing Contributions
iv. Administrative Expenses
v. Operations and Maintenance Expenses
b. Discretionary expenses that fall into the following types:
i. Holding accounts for programs and projects previously approved by the Board
ii. Holding accounts for new programs and projects recommended by the Agency
iii. Other expenses specific to needs of the fund
2. Transfer of the Housing Trust Fund currently managed by the Department of Community and
Neighborhoods' Housing Stability Division into the Agency’s Housing Development Fund
(formerly Housing Development Trust Fund).
3. Reallocation of funds in holding accounts from previous years’ budgets.
ANALYSIS & ISSUES: This Budget Amendment provides for adjustments across multiple funds within
the Agency budget for Fiscal Year 2022. The adjustments by fund are described below.
1. Tax Increment and Other Revenue Adjustments
Central Business District
As shown in the table below, increased Tax Increment revenue received in the Central Business District
will result in increased Taxing Entity Payments. The remainder of the prosed changes include:
Gallivan Retail Repairs – Sewer line and HVAC repair costs have increased.
Storefront Revitalization – After funding the Gallivan repairs, the Agency is proposing adding the
remainder of the funds to this Storefront Revitalization program. This program was funded
during the Fiscal Year 2022 budget to provide funding to businesses in CBD to complete building
renovation projects. The program will be established as part of an updated Commercial Loan
Program that will come before the Board for future consideration.
Central Business District Current
Budget Change Proposed
Budget
Revenue and Other Sources
Tax Increment 27,573,150 1,765,901 🔺 29,339,051
Interest Income 350,000 ‐ 350,000
Total Revenue and Other Sources 27,923,150 1,765,901 🔺 29,689,051
Expenses and Other Uses ‐
Taxing Entity Payments 16,543,890 1,059,540 🔺 17,603,431
TI Reimbursements 1,477,398 ‐ 1,477,398
Transfer to Block 70 Debt Service ‐
Eccles Debt Service Block 70 RDA Match 3,107,740 ‐ 3,107,740
Eccles Debt Service Reserve 1,800,000 ‐ 1,800,000
Miscellaneous Property Expenses 975,000 ‐ 975,000
Parking Ramp Leases 64,355 ‐ 64,355
Gallivan Maintenance 523,138 ‐ 523,138
Gallivan Programming 250,000 ‐ 250,000
Gallivan Administration 340,482 ‐ 340,482
Transfer to Administration 2,757,315 ‐ 2,757,315
Capital Expenditures {Holding Accounts} ‐ ‐
Storefront Revitalization 83,832 306,360 🔺 390,192
Gallivan Repairs ‐ 400,000 🔺 400,000
Total Expenses and Other Uses 27,923,150 1,765,901 🔺 29,689,051
Total Over / (Under) ‐ ‐ ‐
West Capitol Hill
While the West Capitol Hill Project Area is no longer receiving Tax Increment, interest income is
expected. During the Fiscal Year 2022 budget, the funds were directed towards Administration.
However, given the volatile nature of construction cost during this time, the Agency is proposing setting
those funds aside in a holding account specific to projects that are currently underway in the project area.
These projects include the 300 West streetscape improvements and construction of the plaza incorporated
into the Marmalade library and adjacent housing development.
West Capitol Hill Current
Budget Change Proposed
Budget
Revenue and Other Sources
Tax Increment ‐ ‐ ‐
Interest Income 150,000 ‐ 150,000
Total Revenue and Other Sources 150,000 ‐ 150,000
Expenses and Other Uses ‐
Transfer to Administration 150,000 (150,000) 🔻
Capital Expenditures {Holding Accounts} ‐ ‐
West Capitol Hill Projects ‐ 150,000 🔺 150,000
Total Expenses and Other Uses 150,000 ‐ 150,000
Total Over / (Under) ‐ ‐ ‐
Depot District
The increased Tax Increment revenue received in the Depot District Project Area will result in increased
Tax Increment Reimbursement payments, as well as increased contributions to the Primary Housing Fund
and Administration. After fulfilling those obligations, the Agency is recommending the creation of a new
holding account for Central Station property development on 100 South and adding the remainder of the
funds to it.
Depot District Current
Budget Change Proposed
Budget
Revenue and Other Sources
Tax Increment 3,921,164 1,291,500 🔺 5,212,664
Interest Income 200,000 ‐ 200,000
Total Revenue and Other Sources 4,121,164 1,291,500 🔺 5,412,664
Expenses and Other Uses ‐ ‐
TI Reimbursements 1,820,977 144,628 🔺 1,965,606
Transfer to Primary Housing Fund 784,233 258,300 🔺 1,042,533
Miscellaneous Property Expenses 120,000 ‐ 120,000
Debt Service ‐ ‐
Grant Tower Debt Service 275,600 ‐ 275,600
Transfer to Administration 588,175 193,725 🔺 781,900
Capital Expenditures {Holding Accounts} ‐ ‐
Station Center Infrastructure 332,179 ‐ 332,179
Environmental Remediation 200,000 ‐ 200,000
Central Station (100 S) ‐ 694,847 🔺 694,847
Total Expenses and Other Uses 4,121,163 1,291,500 🔺 5,412,664
Total Over / (Under) ‐ ‐ ‐
Granary District
The increased Tax Increment revenue received in the Granary District Project Area will result in
increased contributions to the Primary Housing Fund and Administration. The Community/Cultural
Initiative is the recommended recipient of the remainder of the funds. This program was funded during
the Fiscal Year 2022 budget to support public arts and cultural programming. Agency staff will bring the
proposed Community/Cultural Initiative program to the Board for future consideration.
Granary District Current
Budget Change Proposed
Budget
Revenue and Other Sources ‐ ‐
Tax Increment 621,124 360,282 🔺 981,407
Interest Income 45,000 ‐ 45,000
Total Revenue and Other Sources 666,124 360,282 🔺 1,026,407
‐ ‐
Expenses and Other Uses ‐ ‐
Transfer to Primary Housing Fund 124,225 72,056 🔺 196,281
Miscellaneous Property Expenses 5,000 ‐ 5,000
Transfer to Administration 93,169 54,042 🔺 147,211
Capital Expenditures {Holding Accounts} ‐ ‐
Community/Cultural Initiative 443,731 234,183 🔺 677,915
Total Expenses and Other Uses 666,124 360,282 🔺 1,026,407
‐ ‐
Total Over / (Under) ‐ ‐ ‐
North Temple
The increased Tax Increment revenue received in the North Temple Project Area will result in increased
contributions to the Primary Housing Fund, Administration, and the 10% School Construction Fund. The
remaining funds are proposed to go to the North Temple Strategic Intervention Fund.
North Temple Current
Budget Change Proposed
Budget
Revenue and Other Sources
Tax Increment 435,346 238,765 🔺 674,112
Interest Income 15,000 ‐ 15,000
External Transfers In
Debt Service Fund Class 81 North Temple
Viaduct Bond RDA Reimbursement (One‐time) 1,000,000 ‐ 1,000,000
General Fund Investments in
Underserved Neighborhoods Holding Account
(One‐time)
669,138 ‐ 669,138
Total Revenue and Other Sources 2,119,484 238,765 🔺 2,358,250
‐ ‐
Expenses and Other Uses ‐ ‐
Transfer to Primary Housing Fund 87,069 47,753 🔺 134,822
Transfer to Administration 43,535 23,876 🔺 67,411
Capital Expenditures {Holding Accounts} ‐ ‐
10% School Construction Fund 30,474 16,713 🔺 47,188
North Temple Strategic Intervention
Fund 1,958,406 150,422 🔺 2,108,829
Total Expenses and Other Uses 2,119,484 238,765 🔺 2,358,250
‐ ‐
Total Over / (Under) ‐ ‐ ‐
Block 70
The increased Tax Increment revenue received in the Block 70 Project Area will result in increased
Taxing Entity Payments. After the fulfilling that obligation, the Agency recommends adding the
remainder of the funds to Regent Street Parking Structure Capital Reserves. This reserve was established
to meet potential obligations in the future that are required under the contract with PRI which provides
parking for the Eccles Theater. Under the agreement, the Agency is required to contribute towards the
maintenance and long-term capital repairs of the parking structure.
Block 70 Current
Budget Change Proposed
Budget
Revenue and Other Sources ‐ ‐
Tax Increment 1,922,323 233,830 🔺 2,156,154
Interest Income ‐ ‐ ‐
Internal Transfers In ‐ ‐
CBD Taxing Entity Payments 4,109,200 ‐ 4,109,200
CBD Eccles Debt Service RDA match 3,107,740 ‐ 3,107,740
CBD Eccles Debt Service Reserve Account 1,800,000 ‐ 1,800,000
Total Revenue and Other Sources 10,939,263 233,831 🔺 11,173,094
Expenses and Other Uses
Taxing Entity Payments 576,697 70,149 🔺 646,846
Eccles Theater Debt Service 8,068,209 ‐ 8,068,209
Reserve for Eccles Debt Service 90,617 ‐ 90,617
Regent Street Bond Debt Service 1,448,740 ‐ 1,448,740
Fundraising Fulfillment 100,000 ‐ 100,000
Eccles Theater‐ Operating Reserve for
Ancillary Spaces 475,000 ‐ 475,000
Regent Street Maintenance 80,000 ‐ 80,000
Capital Expenditures {Holding Accounts} ‐ ‐
‐
Regent Street Parking Structure Capital
Reserves 100,000 163,681 🔺 263,682
Total Expenses and Other Uses 10,939,263 233,831 🔺 11,173,094
Total Over / (Under) ‐ ‐ ‐
North Temple Viaduct
The increased Tax Increment revenue received in the North Temple Viaduct Project Area will result in an
increased contribution to Administration. The remainder of the funds are proposed to go the Debt Service
Payment to the City.
North Temple Viaduct Current
Budget Change Proposed
Budget
Revenue and Other Sources
Tax Increment 1,181,479 1,431,148 🔺 2,612,628
Interest Income 7,500 ‐ 7,500
Total Revenue and Other Sources 1,188,979 1,431,148 🔺 2,620,128
‐ ‐
Expenses and Other Uses ‐ ‐
Debt Service Payment to Salt Lake City 1,171,257 1,409,681 🔺 2,580,939
Transfer to Administration 17,722 21,467 🔺 39,189
Total Expenses and Other Uses 1,188,979 1,431,148 🔺 2,620,128
Total Over / (Under) ‐ ‐ ‐
Northwest Quadrant
The Tax Increment revenue is projected to come in lower than originally budgeted in the Northwest
Quadrant. The result will decrease contributions to the Primary Housing Fund and Administration. The
remainder of the decrease will impact the Shared Costs reserve account that was established to set aside a
portion of the tax increment expected to be used for redevelopment activities that benefit the entire
Project Area, are system wide, or that benefit multiple property owners or parcels.
Northwest Quadrant Current
Budget Change Proposed
Budget
Revenue and Other Sources
Tax Increment 1,500,000 (371,125) 🔻 1,128,875
Interest Income ‐ ‐
Total Revenue and Other Sources 1,500,000 (371,125) 🔻 1,128,875
Expenses and Other Uses
TI Reimbursement NWQ Phase I 500,000 ‐ 500,000
Transfer to Secondary Housing Fund 350,000 ‐ 350,000
Transfer to Primary Housing Fund 150,000 (37,112) 🔻 112,888
Transfer to Administration 150,000 (37,112) 🔻 112,888
Capital Expenditures {Holding Accounts}
Shared Costs 350,000 (296,900) 🔻 53,100
Total Expenses and Other Uses 1,500,000 (371,125) 🔻 1,128,875
Total Over / (Under) ‐ ‐ ‐
Stadler Rail
The increased Tax Increment revenue in the Stadler Rail Project Area will result in increased Tax
Increment Reimbursements expenses, as well as increased contributions to the Primary Housing Fund and
Administration.
Stadler Rail Current
Budget Change Proposed
Budget
Revenue and Other Sources ‐ ‐
Tax Increment 71,000 37,327 🔺 108,327
Interest Income ‐ ‐
Total Revenue and Other Sources 71,000 37,327 🔺 108,327
Expenses and Other Uses
TI Reimbursements 56,800 29,861 🔺 86,662
Transfer to Primary Housing Fund 7,100 3,732 🔺 10,833
Transfer to Administration 7,100 3,732 🔺 10,833
Total Expenses and Other Uses 71,000 37,327 🔺 108,327
Total Over / (Under) ‐ ‐ ‐
State Street
As seen in the table below, while not budgeted in Fiscal Year 2022, the County is projecting a significant
Tax Increment payment for the State Street Project Area. The current obligations for this fund include
contributions to the Primary Housing Fund and Administration. The Agency is proposing splitting the
rest of the funds into holding accounts for Infrastructure Improvements ($500K), a Commercial Loan
Program ($500K), and Ballpark Strategic Development (remaining funds not allocated).
State Street Current
Budget Change Proposed
Budget
Revenue and Other Sources
Tax Increment ‐ 3,288,979 🔺 3,288,979
Interest Income ‐ ‐ ‐
Total Revenue and Other Sources ‐ 3,288,979 🔺 3,288,979
Expenses and Other Uses
Transfer to Primary Housing Fund
(Note: School District contribution must be set aside for
family and workforce housing)
‐ 328,897 🔺 328,898
Transfer to Administration ‐ 328,897 🔺 328,898
Capital Expenditures {Holding Accounts}
Infrastructure Improvements ‐ 500,000 🔺 500,000
Commercial Loan Program ‐ 500,000 🔺 500,000
Ballpark Strategic Development ‐ 1,631,183 🔺 1,631,183
Total Expenses and Other Uses ‐ 3,288,979 🔺 3,288,979
Total Over / (Under) ‐ ‐ ‐
9 Line
Also not in the Fiscal Year 2022 budget, the County is projecting the following Tax Increment revenue in
the 9 Line Project Area. According to the Interlocal Agreement, the Agency shall reimburse 50% of the
County’s Tax Increment contribution, as well as 6% of their contribution for County Administration and
Operations expenses. The other obligations for this fund include contributions to the Primary Housing
Fund and Administration. The Agency is proposing splitting the rest of the funds into holding accounts
for the Accessory Dwelling Unit Program ($300K), and Property Acquisition (remaining funds not
allocated).
9 Line Current
Budget Change Proposed
Budget
Revenue and Other Sources ‐ ‐
Tax Increment ‐ 1,847,159 🔺 1,847,159
Interest Income ‐ ‐ ‐
Total Revenue and Other Sources ‐ 1,847,159 🔺 1,847,159
Expenses and Other Uses
Taxing Entity Payments ‐ 224,966 🔺 224,966
County Administration and Operations ‐ 26,995 🔺 26,996
Transfer to Primary Housing Fund
(Note: School District contribution must be set aside for
family and workforce housing)
‐ 184,715 🔺 184,716
Transfer to Administration ‐ 147,772 🔺 147,773
Capital Expenditures {Holding Accounts}
Property Acquisition ‐ 962,708 🔺 962,708
Accessory Dwelling Unit Program ‐ 300,000 🔺 300,000
Total Expenses and Other Uses ‐ 1,847,159 🔺 1,847,159
Total Over / (Under) ‐ ‐ ‐
Program Income Fund
A fire during the demolition of the Overnighter Motel resulted in $100K of remediation expenses not
budgeted in the Program Income Fund during the Fiscal Year 2022 Budget. An insurance claim was filed
but has a $50K deductible. The resulting impact to the fund’s budget is the receipt of the $50K insurance
claim reimbursement, and the use fund balance to cover the other $50K of the total remediation expense.
The difference will be absorbed by fund balance.
Program Income Fund Current
Budget Change Proposed
Budget
Revenue and Other Sources
Parking Structure Income 1,242,335 ‐ 1,242,335
Rents 215,700 ‐ 215,700
Interest Income 250,000 ‐ 250,000
Loan Repayments 28,000 ‐ 28,000
Interest on Loans 6,500 ‐ 6,500
Insurance Reimbursement ‐ 50,000 🔺 50,000
Internal Transfers In ‐ ‐ ‐
Use of North Temple Catalytic Project
Holding Account (One‐time) ‐ ‐
‐
Total Revenue and Other Sources 1,742,535 50,000 🔺 1,792,535
Expenses and Other Uses
Professional Services 300,000 ‐ 300,000
Miscellaneous Property Expense 300,000 100,000 🔺 400,000
Marketing and Sales 25,000 ‐ 25,000
Transfer Out to North Temple Project Area
(One‐time) ‐ ‐
‐
Capital Expenditures {Holding Accounts}
Gallivan Repairs 250,000 ‐ 250,000
Commercial Revitalization Program 667,535 ‐ 667,535
Sustainability Technical Assistance
Program 200,000 ‐ 200,000
Total Expenses and Other Uses 1,742,535 100,000 🔺 1,842,535
Total Over / (Under) ‐ (50,000) 🔻 (50,000)
Primary Housing Fund
The changes to the Primary Housing Fund contributions from each project area are in the table below.
The Agency is recommending the remainder of the funds be added to the Housing Development Loan
Program, a permanent and annually renewable program that consolidates and centralizes resources for the
development and preservation of affordable housing. Loans provided through the HDLP shall be funded
directly from an individual fund source, with revenues, expenditures, interest, payments and repayments
accounted for from the fund source to comply with applicable State and Local statutes.
Primary Housing Fund Current
Budget Change Proposed
Budget
Revenue and Other Sources
Interest Income 225,000 ‐ 225,000
Loan Repayments 51,000 ‐ 51,000
Interest on Loans 70,000 ‐ 70,000
Internal Transfers In ‐ ‐ ‐
Depot District 784,233 258,300 🔺 1,042,533
Granary District 124,225 72,056 🔺 196,281
North Temple 87,069 47,753 🔺 134,822
Northwest Quadrant 150,000 (37,112) 🔻 112,888
State Street ‐ 328,897 🔺 328,898
9 Line ‐ 184,715 🔺 184,716
Total Revenue and Other Sources 1,491,527 854,610 🔺 2,346,138
Expenses and Other Uses
Transfer Out to North Temple Project Area
(One‐time) ‐ ‐
‐
Capital Expenditures {Holding Accounts}
Housing Development Loan Program 491,527 854,610 🔺 1,346,138
North Temple Strategic Intervention
Fund 1,000,000 ‐ 1,000,000
Total Expenses and Other Uses 1,491,527 854,610 🔺 2,346,138
Total Over / (Under) ‐ ‐ ‐
Westside Community Initiative Fund
The UIPA Housing Allocation was deposited in the Westside Community Initiative Fund in June 2021,
after the adoption of the Fiscal Year 2022 budget. The Agency is proposing to shift the funds from the
Westside Urban Land Fund into the Housing Development Loan Program, as well as retain 15% in fund
balance. This shift aligns with the newly amended Housing Allocation Funds Policy and will still be
utilized as part of the Westside Community Initiative priorities.
Westside Community Initiative Fund
(Northwest Quadrant Housing Fund)
Current
Budget Change Proposed
Budget
Revenue and Other Sources
UIPA Housing Allocation 250,000 159,031 🔺 409,031
Interest Income ‐ ‐ ‐
Total Revenue and Other Sources 250,000 159,031 🔺 409,031
Expenses and Other Uses
Capital Expenditures {Holding Accounts} ‐ ‐
West Side Urban Land Fund 250,000 (250,000) 🔻 ‐
Housing Development Loan Program 347,676 🔺 347,676
Total Expenses and Other Uses 250,000 97,676 🔺 347,676
‐ ‐
Total Over / (Under) ‐ 61,354 🔺 61,355
Administration
The impact of the Tax Increment and other revenue adjustments to the Administration Fund detailed
above can be seen in the table below, under Internal Transfers In. Expenses have been adjusted to include
an expected increase in Administrative Fees the Agency will receive from the City. In addition, the
Charges and Services line description has been adjusted for increased expenses that include a $25K
RAISE Grant Contribution, a 900 S Improvements project shortfall of $155K, and $100K for Ballpark
development efforts.
Administration Current
Budget Change Proposed
Budget
Revenue and Other Sources
Internal Transfers In
Revenue and Other Sources 2,757,315 ‐ 2,757,315
West Capitol Hill 150,000 (150,000) 🔻 ‐
West Temple Gateway 50,000 ‐ 50,000
Depot District 588,175 193,725 🔺 781,900
Granary District 93,169 54,042 🔺 147,211
North Temple 43,535 23,876 🔺 67,411
Block 70 ‐ ‐
‐
North Temple Viaduct 17,722 21,467 🔺 39,189
Northwest Quadrant 150,000 (37,112) 🔻 112,888
Stadler Rail 7,100 3,732 🔺 10,833
State Street ‐ 328,897 🔺 328,898
9 Line ‐ 147,772 🔺 147,773
Program Income Fund ‐ ‐
‐
Total Revenue and Other Sources 3,857,015 586,402 🔺 4,443,417
Expenses and Other Uses
RDA Personnel 2,254,632 ‐ 2,254,632
Administrative Fees 939,683 150,000 🔺 1,089,683
Operating & Maintenance 360,000 ‐ 360,000
Charges and Services 202,700 436,402 🔺 639,102
Furniture, Fixtures and Equipment 100,000 ‐ 100,000
Total Expenses and Other Uses 3,857,015 586,402 🔺 4,443,417
Total Over / (Under) ‐ ‐ ‐
2. Transfer of Housing Trust Fund
Housing Development Fund
The Housing Development Fund (formerly known as the Housing Development Trust Fund) was
established in the Fiscal Year 2020. The intent of establishing this fund was to evaluate further codifying
the consolidation of housing development loan programs by ordinance, to confirm that all the City's
housing development loan funds, regardless of funding source and regardless of which entity
administered the program, are deployed in a transparent manner. Funding Our Future Land Discounts and
Finance funds have been transferred into this fund each fiscal year since its establishment, with the intent
of transferring the Housing Trust Fund currently managed by the Department of Community and
Neighborhoods' Housing Stability Division into the Agency’s Housing Development Fund.
Finance has recently finished reconciling the loans in the Housing Trust Fund in preparation of the
transfer and will prepare a Budget Amendment Ordinance to move all assets and liabilities to the Agency.
The expected fund balance available to lend is approximately $2 million, and it is proposed to add the full
amount to the Housing Development Loan Program, as referenced in the table below.
When the final Second Amendment is presented, the corresponding Budget Resolution will be presented
for approval. Once the Ordinance and Amendments are approved, the administrative tasks of transferring
the management of the loans may proceed.
Housing Development Fund Current
Budget Change Proposed
Budget
Revenue and Other Sources ‐ ‐
Funding Our Future Land Discounts and
Financing 2,590,000 ‐ 2,590,000
Transfer from Housing Trust Fund ‐ 2,000,000 🔺 2,000,000
Total Revenue and Other Sources 2,590,000 2,000,000 🔺 4,590,000
‐ ‐
Expenses and Other Uses ‐ ‐
Capital Expenditures {Holding Accounts} ‐ ‐
Housing Development Loan Program 2,590,000 2,000,000 🔺 4,590,000
Total Expenses and Other Uses 2,590,000 2,000,000 🔺 4,590,000
‐ ‐
Total Over / (Under) ‐ ‐ ‐
3. Reallocation
Central Station Property Acquisition
The Agency currently owns approximately 4 acres of land in what is referred to as Central Station located
at approximately 600 West and 100 South. As previously directed by the Board, RDA staff is working to
acquire additional property for future development. This budget amendment would reallocate $550,000
from the RDA’s Revolving Loan Fund to purchase this property. The intention would be to repay this
contribution from the proceeds or lease payments as part of the future project.
Budget Impact: The proposed change would reduce the Revolving Loan Fund’s current available to lend
balance from $5,403,577.35 to 4,853,577.35.
West Capitol Hill Projects
In addition to the budget reallocation requests in the West Capitol Hill Project Area above, the Agency is
requesting to reallocate $338,141of funds previously set aside in the Program Income Fund for the Arctic
Court Infill Home project to projects in West Capitol Hill, as a contingency for expected increases in
construction costs.
Budget Impact: The Program Income Fund for the Arctic Court Infill Home project would be reduced to
zero. It is anticipated the Agency would request the use of housing funds in the future to finish the infill
housing project.
PREVIOUS BOARD ACTION:
1. Approval of the Fiscal Year 2021-2022 Budget.
2. Approval of the Fiscal Year 2021-2022 Budget Amendment #1.
ATTACHMENTS: N/A
1
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO__________
Second Budget Amendment
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY (“RDA”) AMENDING THE FINAL BUDGET OF THE RDA FOR
FISCAL YEAR 2021-2022
WHEREAS, on June 15, 2020, the RDA Board of Directors (“Board”) adopted the final
budget of the RDA, effective for the fiscal year beginning July 1, 2021 and ending June 30, 2022,
in accordance with the requirements of Section 17C-1-601.5 of the Utah Code.
WHEREAS, all conditions precedent to amend the RDA's budget have been accomplished.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Redevelopment Agency of Salt Lake City:
1. Purpose. The purpose of this Resolution is to amend the final budget of the RDA,
as approved, ratified and finalized by the RDA Board on June 15, 2021.
2. Adoption of Amendments. The budget amendments shown on Exhibit A as “Board
Approved” are hereby adopted and incorporated into the budget of the RDA.
3. Filing of copies of the Budget Amendments. The Salt Lake City Finance
Department, on behalf of the RDA, is authorized and directed to certify and file a copy of said
budget amendments in the office of the Finance Department, the RDA, and the office of the City
Recorder which amendments shall be available for public inspection.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah,
this ___ day of ______________, 2021, to be effective upon adoption.
________________________________
Ana Valdemoros, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Allison Parks
Date:____________________________
2
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
_________________________________
Erin Mendenhall, Executive Director
Attest:
_________________________
City Recorder
3
EXHIBIT A TO RESOLUTION
[Attach Board’s Final Approved Budget Amendment]
1
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO__________
Second Budget Amendment
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY (“RDA”) AMENDING THE FINAL BUDGET OF THE RDA FOR
FISCAL YEAR 2021-2022
WHEREAS, on June 15, 2020, the RDA Board of Directors (“Board”) adopted the final
budget of the RDA, effective for the fiscal year beginning July 1, 2021 and ending June 30, 2022,
in accordance with the requirements of Section 17C-1-601.5 of the Utah Code.
WHEREAS, all conditions precedent to amend the RDA's budget have been accomplished.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Redevelopment Agency of Salt Lake City:
1. Purpose. The purpose of this Resolution is to amend the final budget of the RDA,
as approved, ratified and finalized by the RDA Board on June 15, 2021.
2. Adoption of Amendments. The budget amendments shown on Exhibit A as “Board
Approved” are hereby adopted and incorporated into the budget of the RDA.
3. Filing of copies of the Budget Amendments. The Salt Lake City Finance
Department, on behalf of the RDA, is authorized and directed to certify and file a copy of said
budget amendments in the office of the Finance Department, the RDA, and the office of the City
Recorder which amendments shall be available for public inspection.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah,
this ___ day of ______________, 2021, to be effective upon adoption.
________________________________
Ana Valdemoros, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Allison Parks
Date:____________________________
February 22, 2022
2
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
_________________________________
Erin Mendenhall, Executive Director
Attest:
_________________________
City Recorder
3
EXHIBIT A TO RESOLUTION
[Attach Board’s Final Approved Budget Amendment]
Signature:
Email:
Garrett A. Danielson (Feb 23, 2022 10:17 MST)
Garrett A. Danielson
garett.danielson@slcgov.com
DEPARTMENT OF FINANCE
POLICY AND BUDGET DIVISION
451 SOUTH STATE STREET, ROOM 238
PO BOX 145467, SALT LAKE CITY, UTAH 84114-5455 TEL 801-535-6394
ERIN MENDENHALL
Mayor
MARY BETH THOMPSON
Chief Financial Officer
CITY COUNCIL TRANSMITTAL
___________________________________ Date Received: ________________
Rachel Otto, Chief of Staff Date sent to Council: ___________
______________________________________________________________________________
TO: Salt Lake City RDA Board DATE: February 22, 2022
Ana Valdemoros, RDA Chair
FROM: Mary Beth Thompson, Chief Financial Officer
Danny Walz, RDA Director
SUBJECT: RDA Budget Amendment #2, FY2021-22
SPONSOR: NA
STAFF CONTACT: John Vuyk, Budget Director (801) 535-6394 or
Mary Beth Thompson (801) 535-6403 or
Mike Burns (801) 565-6461 or
Danny Walz (801) 535-7209
DOCUMENT TYPE: Budget Amendment Resolution
RECOMMENDATION: Review and discuss the proposed First Amendment to the Annual
RDA Budget for Fiscal Year 2022. Set public hearing date for adoption of the amendment.
BUDGET IMPACT:
REVENUE EXPENSE
RDA FUND $ 11,773,813.00 $ 13,762,458.00
RDA CIP FUND 0.00 0.00
TOTAL $ 11,773,813.00 $ 13,762,458.00
rachel otto (Feb 22, 2022 21:18 MST)2/23/22
2/23/22
EXECUTIVE SUMMARY:
The purpose of the second amendment (“amendment”) is to addresses the following items:
1. True-up TI to be received in the current fiscal year and allocate to current year initiatives.
2. Transfer budget for HTF from HAND to RDA for current fiscal year use.
3. Record receipt of NT project area Overnighter Motel fire insurance proceeds and allocate
to cleanup of site.
4. True-up prior year UIPA housing allocation.
5. Reallocated RLF funding to Central Station Property Acquisition.
6. Reallocate PIF Arctic Court Infill Home funding to Marmalade Plaza.
A summary spreadsheet document, outlining proposed budget changes is attached. The
Administration requests this document be modified based on the decisions of the Board. The
budget opening is separated in eight different categories:
A. New Budget Items
B. Grants for Existing Staff Resources
C. Grants for New Staff Resources
D. Housekeeping Items
E. Grants Requiring No New Staff Resources
F. Donations
G. Council Consent Agenda Grant Awards
I. Council Added Items
ATTACHMENTS:
A. Resolution
B. Budget Amendment #1 Summary Spreadsheet
C. RDA Transmittal
PUBLIC PROCESS: Public Hearing
REDEVELOPMENT AGENCY of SALT LAKE CITY
SALT LAKE CITY CORPORATION
451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV ꞏ WWW.SLCRDA.COM
P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 ꞏ FAX 801-535-7245
MAYOR ERIN MENDENHALL
Executive Director
DANNY WALZ
Director
STAFF MEMO
DATE: February 18, 2022
PREPARED BY: Erin Cunningham
RE: Preliminary Briefing of RDA Budget Amendment #2, FY 2021-2022
REQUESTED ACTION: Written Briefing
BUDGET IMPACTS: The preliminary Second Amendment identifies appropriations for Agency
operations and projects across multiple funds.
EXECUTIVE SUMMARY: The purpose of the briefing is to provide preliminary budget proposals for
the Second Amendment (“Amendment”). The proposed budget changes fall into three main categories:
1. Changes to budgets based on Property Tax Increment projections received from the County.
These amounts will be adjusted when the Agency receives the final distribution in March. The
proposals below are primarily driven by:
a. Fixed expenses that are often percentages of Tax Increment as defined by statutory or
contractual obligations or other consistent expenses, such as:
i. Taxing Entity Payments
ii. Tax Increment Reimbursements
iii. Primary Housing Contributions
iv. Administrative Expenses
v. Operations and Maintenance Expenses
b. Discretionary expenses that fall into the following types:
i. Holding accounts for programs and projects previously approved by the Board
ii. Holding accounts for new programs and projects recommended by the Agency
iii. Other expenses specific to needs of the fund
2. Transfer of the Housing Trust Fund currently managed by the Department of Community and
Neighborhoods' Housing Stability Division into the Agency’s Housing Development Fund
(formerly Housing Development Trust Fund).
3. Reallocation of funds in holding accounts from previous years’ budgets.
ANALYSIS & ISSUES: This Budget Amendment provides for adjustments across multiple funds within
the Agency budget for Fiscal Year 2022. The adjustments by fund are described below.
1. Tax Increment and Other Revenue Adjustments
Central Business District
As shown in the table below, increased Tax Increment revenue received in the Central Business District
will result in increased Taxing Entity Payments. The remainder of the prosed changes include:
Gallivan Retail Repairs – Sewer line and HVAC repair costs have increased.
Storefront Revitalization – After funding the Gallivan repairs, the Agency is proposing adding the
remainder of the funds to this Storefront Revitalization program. This program was funded
during the Fiscal Year 2022 budget to provide funding to businesses in CBD to complete building
renovation projects. The program will be established as part of an updated Commercial Loan
Program that will come before the Board for future consideration.
Central Business District Current
Budget Change Proposed
Budget
Revenue and Other Sources
Tax Increment 27,573,150 1,765,901 🔺 29,339,051
Interest Income 350,000 ‐ 350,000
Total Revenue and Other Sources 27,923,150 1,765,901 🔺 29,689,051
Expenses and Other Uses ‐
Taxing Entity Payments 16,543,890 1,059,540 🔺 17,603,431
TI Reimbursements 1,477,398 ‐ 1,477,398
Transfer to Block 70 Debt Service ‐
Eccles Debt Service Block 70 RDA Match 3,107,740 ‐ 3,107,740
Eccles Debt Service Reserve 1,800,000 ‐ 1,800,000
Miscellaneous Property Expenses 975,000 ‐ 975,000
Parking Ramp Leases 64,355 ‐ 64,355
Gallivan Maintenance 523,138 ‐ 523,138
Gallivan Programming 250,000 ‐ 250,000
Gallivan Administration 340,482 ‐ 340,482
Transfer to Administration 2,757,315 ‐ 2,757,315
Capital Expenditures {Holding Accounts} ‐ ‐
Storefront Revitalization 83,832 306,360 🔺 390,192
Gallivan Repairs ‐ 400,000 🔺 400,000
Total Expenses and Other Uses 27,923,150 1,765,901 🔺 29,689,051
Total Over / (Under) ‐ ‐ ‐
West Capitol Hill
While the West Capitol Hill Project Area is no longer receiving Tax Increment, interest income is
expected. During the Fiscal Year 2022 budget, the funds were directed towards Administration.
However, given the volatile nature of construction cost during this time, the Agency is proposing setting
those funds aside in a holding account specific to projects that are currently underway in the project area.
These projects include the 300 West streetscape improvements and construction of the plaza incorporated
into the Marmalade library and adjacent housing development.
West Capitol Hill Current
Budget Change Proposed
Budget
Revenue and Other Sources
Tax Increment ‐ ‐ ‐
Interest Income 150,000 ‐ 150,000
Total Revenue and Other Sources 150,000 ‐ 150,000
Expenses and Other Uses ‐
Transfer to Administration 150,000 (150,000) 🔻
Capital Expenditures {Holding Accounts} ‐ ‐
West Capitol Hill Projects ‐ 150,000 🔺 150,000
Total Expenses and Other Uses 150,000 ‐ 150,000
Total Over / (Under) ‐ ‐ ‐
Depot District
The increased Tax Increment revenue received in the Depot District Project Area will result in increased
Tax Increment Reimbursement payments, as well as increased contributions to the Primary Housing Fund
and Administration. After fulfilling those obligations, the Agency is recommending the creation of a new
holding account for Central Station property development on 100 South and adding the remainder of the
funds to it.
Depot District Current
Budget Change Proposed
Budget
Revenue and Other Sources
Tax Increment 3,921,164 1,291,500 🔺 5,212,664
Interest Income 200,000 ‐ 200,000
Total Revenue and Other Sources 4,121,164 1,291,500 🔺 5,412,664
Expenses and Other Uses ‐ ‐
TI Reimbursements 1,820,977 144,628 🔺 1,965,606
Transfer to Primary Housing Fund 784,233 258,300 🔺 1,042,533
Miscellaneous Property Expenses 120,000 ‐ 120,000
Debt Service ‐ ‐
Grant Tower Debt Service 275,600 ‐ 275,600
Transfer to Administration 588,175 193,725 🔺 781,900
Capital Expenditures {Holding Accounts} ‐ ‐
Station Center Infrastructure 332,179 ‐ 332,179
Environmental Remediation 200,000 ‐ 200,000
Central Station (100 S) ‐ 694,847 🔺 694,847
Total Expenses and Other Uses 4,121,163 1,291,500 🔺 5,412,664
Total Over / (Under) ‐ ‐ ‐
Granary District
The increased Tax Increment revenue received in the Granary District Project Area will result in
increased contributions to the Primary Housing Fund and Administration. The Community/Cultural
Initiative is the recommended recipient of the remainder of the funds. This program was funded during
the Fiscal Year 2022 budget to support public arts and cultural programming. Agency staff will bring the
proposed Community/Cultural Initiative program to the Board for future consideration.
Granary District Current
Budget Change Proposed
Budget
Revenue and Other Sources ‐ ‐
Tax Increment 621,124 360,282 🔺 981,407
Interest Income 45,000 ‐ 45,000
Total Revenue and Other Sources 666,124 360,282 🔺 1,026,407
‐ ‐
Expenses and Other Uses ‐ ‐
Transfer to Primary Housing Fund 124,225 72,056 🔺 196,281
Miscellaneous Property Expenses 5,000 ‐ 5,000
Transfer to Administration 93,169 54,042 🔺 147,211
Capital Expenditures {Holding Accounts} ‐ ‐
Community/Cultural Initiative 443,731 234,183 🔺 677,915
Total Expenses and Other Uses 666,124 360,282 🔺 1,026,407
‐ ‐
Total Over / (Under) ‐ ‐ ‐
North Temple
The increased Tax Increment revenue received in the North Temple Project Area will result in increased
contributions to the Primary Housing Fund, Administration, and the 10% School Construction Fund. The
remaining funds are proposed to go to the North Temple Strategic Intervention Fund.
North Temple Current
Budget Change Proposed
Budget
Revenue and Other Sources
Tax Increment 435,346 238,765 🔺 674,112
Interest Income 15,000 ‐ 15,000
External Transfers In
Debt Service Fund Class 81 North Temple
Viaduct Bond RDA Reimbursement (One‐time) 1,000,000 ‐ 1,000,000
General Fund Investments in
Underserved Neighborhoods Holding Account
(One‐time)
669,138 ‐ 669,138
Total Revenue and Other Sources 2,119,484 238,765 🔺 2,358,250
‐ ‐
Expenses and Other Uses ‐ ‐
Transfer to Primary Housing Fund 87,069 47,753 🔺 134,822
Transfer to Administration 43,535 23,876 🔺 67,411
Capital Expenditures {Holding Accounts} ‐ ‐
10% School Construction Fund 30,474 16,713 🔺 47,188
North Temple Strategic Intervention
Fund 1,958,406 150,422 🔺 2,108,829
Total Expenses and Other Uses 2,119,484 238,765 🔺 2,358,250
‐ ‐
Total Over / (Under) ‐ ‐ ‐
Block 70
The increased Tax Increment revenue received in the Block 70 Project Area will result in increased
Taxing Entity Payments. After the fulfilling that obligation, the Agency recommends adding the
remainder of the funds to Regent Street Parking Structure Capital Reserves. This reserve was established
to meet potential obligations in the future that are required under the contract with PRI which provides
parking for the Eccles Theater. Under the agreement, the Agency is required to contribute towards the
maintenance and long-term capital repairs of the parking structure.
Block 70 Current
Budget Change Proposed
Budget
Revenue and Other Sources ‐ ‐
Tax Increment 1,922,323 233,830 🔺 2,156,154
Interest Income ‐ ‐ ‐
Internal Transfers In ‐ ‐
CBD Taxing Entity Payments 4,109,200 ‐ 4,109,200
CBD Eccles Debt Service RDA match 3,107,740 ‐ 3,107,740
CBD Eccles Debt Service Reserve Account 1,800,000 ‐ 1,800,000
Total Revenue and Other Sources 10,939,263 233,831 🔺 11,173,094
Expenses and Other Uses
Taxing Entity Payments 576,697 70,149 🔺 646,846
Eccles Theater Debt Service 8,068,209 ‐ 8,068,209
Reserve for Eccles Debt Service 90,617 ‐ 90,617
Regent Street Bond Debt Service 1,448,740 ‐ 1,448,740
Fundraising Fulfillment 100,000 ‐ 100,000
Eccles Theater‐ Operating Reserve for
Ancillary Spaces 475,000 ‐ 475,000
Regent Street Maintenance 80,000 ‐ 80,000
Capital Expenditures {Holding Accounts} ‐ ‐
‐
Regent Street Parking Structure Capital
Reserves 100,000 163,681 🔺 263,682
Total Expenses and Other Uses 10,939,263 233,831 🔺 11,173,094
Total Over / (Under) ‐ ‐ ‐
North Temple Viaduct
The increased Tax Increment revenue received in the North Temple Viaduct Project Area will result in an
increased contribution to Administration. The remainder of the funds are proposed to go the Debt Service
Payment to the City.
North Temple Viaduct Current
Budget Change Proposed
Budget
Revenue and Other Sources
Tax Increment 1,181,479 1,431,148 🔺 2,612,628
Interest Income 7,500 ‐ 7,500
Total Revenue and Other Sources 1,188,979 1,431,148 🔺 2,620,128
‐ ‐
Expenses and Other Uses ‐ ‐
Debt Service Payment to Salt Lake City 1,171,257 1,409,681 🔺 2,580,939
Transfer to Administration 17,722 21,467 🔺 39,189
Total Expenses and Other Uses 1,188,979 1,431,148 🔺 2,620,128
Total Over / (Under) ‐ ‐ ‐
Northwest Quadrant
The Tax Increment revenue is projected to come in lower than originally budgeted in the Northwest
Quadrant. The result will decrease contributions to the Primary Housing Fund and Administration. The
remainder of the decrease will impact the Shared Costs reserve account that was established to set aside a
portion of the tax increment expected to be used for redevelopment activities that benefit the entire
Project Area, are system wide, or that benefit multiple property owners or parcels.
Northwest Quadrant Current
Budget Change Proposed
Budget
Revenue and Other Sources
Tax Increment 1,500,000 (371,125) 🔻 1,128,875
Interest Income ‐ ‐
Total Revenue and Other Sources 1,500,000 (371,125) 🔻 1,128,875
Expenses and Other Uses
TI Reimbursement NWQ Phase I 500,000 ‐ 500,000
Transfer to Secondary Housing Fund 350,000 ‐ 350,000
Transfer to Primary Housing Fund 150,000 (37,112) 🔻 112,888
Transfer to Administration 150,000 (37,112) 🔻 112,888
Capital Expenditures {Holding Accounts}
Shared Costs 350,000 (296,900) 🔻 53,100
Total Expenses and Other Uses 1,500,000 (371,125) 🔻 1,128,875
Total Over / (Under) ‐ ‐ ‐
Stadler Rail
The increased Tax Increment revenue in the Stadler Rail Project Area will result in increased Tax
Increment Reimbursements expenses, as well as increased contributions to the Primary Housing Fund and
Administration.
Stadler Rail Current
Budget Change Proposed
Budget
Revenue and Other Sources ‐ ‐
Tax Increment 71,000 37,327 🔺 108,327
Interest Income ‐ ‐
Total Revenue and Other Sources 71,000 37,327 🔺 108,327
Expenses and Other Uses
TI Reimbursements 56,800 29,861 🔺 86,662
Transfer to Primary Housing Fund 7,100 3,732 🔺 10,833
Transfer to Administration 7,100 3,732 🔺 10,833
Total Expenses and Other Uses 71,000 37,327 🔺 108,327
Total Over / (Under) ‐ ‐ ‐
State Street
As seen in the table below, while not budgeted in Fiscal Year 2022, the County is projecting a significant
Tax Increment payment for the State Street Project Area. The current obligations for this fund include
contributions to the Primary Housing Fund and Administration. The Agency is proposing splitting the
rest of the funds into holding accounts for Infrastructure Improvements ($500K), a Commercial Loan
Program ($500K), and Ballpark Strategic Development (remaining funds not allocated).
State Street Current
Budget Change Proposed
Budget
Revenue and Other Sources
Tax Increment ‐ 3,288,979 🔺 3,288,979
Interest Income ‐ ‐ ‐
Total Revenue and Other Sources ‐ 3,288,979 🔺 3,288,979
Expenses and Other Uses
Transfer to Primary Housing Fund
(Note: School District contribution must be set aside for
family and workforce housing)
‐ 328,897 🔺 328,898
Transfer to Administration ‐ 328,897 🔺 328,898
Capital Expenditures {Holding Accounts}
Infrastructure Improvements ‐ 500,000 🔺 500,000
Commercial Loan Program ‐ 500,000 🔺 500,000
Ballpark Strategic Development ‐ 1,631,183 🔺 1,631,183
Total Expenses and Other Uses ‐ 3,288,979 🔺 3,288,979
Total Over / (Under) ‐ ‐ ‐
9 Line
Also not in the Fiscal Year 2022 budget, the County is projecting the following Tax Increment revenue in
the 9 Line Project Area. According to the Interlocal Agreement, the Agency shall reimburse 50% of the
County’s Tax Increment contribution, as well as 6% of their contribution for County Administration and
Operations expenses. The other obligations for this fund include contributions to the Primary Housing
Fund and Administration. The Agency is proposing splitting the rest of the funds into holding accounts
for the Accessory Dwelling Unit Program ($300K), and Property Acquisition (remaining funds not
allocated).
9 Line Current
Budget Change Proposed
Budget
Revenue and Other Sources ‐ ‐
Tax Increment ‐ 1,847,159 🔺 1,847,159
Interest Income ‐ ‐ ‐
Total Revenue and Other Sources ‐ 1,847,159 🔺 1,847,159
Expenses and Other Uses
Taxing Entity Payments ‐ 224,966 🔺 224,966
County Administration and Operations ‐ 26,995 🔺 26,996
Transfer to Primary Housing Fund
(Note: School District contribution must be set aside for
family and workforce housing)
‐ 184,715 🔺 184,716
Transfer to Administration ‐ 147,772 🔺 147,773
Capital Expenditures {Holding Accounts}
Property Acquisition ‐ 962,708 🔺 962,708
Accessory Dwelling Unit Program ‐ 300,000 🔺 300,000
Total Expenses and Other Uses ‐ 1,847,159 🔺 1,847,159
Total Over / (Under) ‐ ‐ ‐
Program Income Fund
A fire during the demolition of the Overnighter Motel resulted in $100K of remediation expenses not
budgeted in the Program Income Fund during the Fiscal Year 2022 Budget. An insurance claim was filed
but has a $50K deductible. The resulting impact to the fund’s budget is the receipt of the $50K insurance
claim reimbursement, and the use fund balance to cover the other $50K of the total remediation expense.
The difference will be absorbed by fund balance.
Program Income Fund Current
Budget Change Proposed
Budget
Revenue and Other Sources
Parking Structure Income 1,242,335 ‐ 1,242,335
Rents 215,700 ‐ 215,700
Interest Income 250,000 ‐ 250,000
Loan Repayments 28,000 ‐ 28,000
Interest on Loans 6,500 ‐ 6,500
Insurance Reimbursement ‐ 50,000 🔺 50,000
Internal Transfers In ‐ ‐ ‐
Use of North Temple Catalytic Project
Holding Account (One‐time) ‐ ‐
‐
Total Revenue and Other Sources 1,742,535 50,000 🔺 1,792,535
Expenses and Other Uses
Professional Services 300,000 ‐ 300,000
Miscellaneous Property Expense 300,000 100,000 🔺 400,000
Marketing and Sales 25,000 ‐ 25,000
Transfer Out to North Temple Project Area
(One‐time) ‐ ‐
‐
Capital Expenditures {Holding Accounts}
Gallivan Repairs 250,000 ‐ 250,000
Commercial Revitalization Program 667,535 ‐ 667,535
Sustainability Technical Assistance
Program 200,000 ‐ 200,000
Total Expenses and Other Uses 1,742,535 100,000 🔺 1,842,535
Total Over / (Under) ‐ (50,000) 🔻 (50,000)
Primary Housing Fund
The changes to the Primary Housing Fund contributions from each project area are in the table below.
The Agency is recommending the remainder of the funds be added to the Housing Development Loan
Program, a permanent and annually renewable program that consolidates and centralizes resources for the
development and preservation of affordable housing. Loans provided through the HDLP shall be funded
directly from an individual fund source, with revenues, expenditures, interest, payments and repayments
accounted for from the fund source to comply with applicable State and Local statutes.
Primary Housing Fund Current
Budget Change Proposed
Budget
Revenue and Other Sources
Interest Income 225,000 ‐ 225,000
Loan Repayments 51,000 ‐ 51,000
Interest on Loans 70,000 ‐ 70,000
Internal Transfers In ‐ ‐ ‐
Depot District 784,233 258,300 🔺 1,042,533
Granary District 124,225 72,056 🔺 196,281
North Temple 87,069 47,753 🔺 134,822
Northwest Quadrant 150,000 (37,112) 🔻 112,888
State Street ‐ 328,897 🔺 328,898
9 Line ‐ 184,715 🔺 184,716
Total Revenue and Other Sources 1,491,527 854,610 🔺 2,346,138
Expenses and Other Uses
Transfer Out to North Temple Project Area
(One‐time) ‐ ‐
‐
Capital Expenditures {Holding Accounts}
Housing Development Loan Program 491,527 854,610 🔺 1,346,138
North Temple Strategic Intervention
Fund 1,000,000 ‐ 1,000,000
Total Expenses and Other Uses 1,491,527 854,610 🔺 2,346,138
Total Over / (Under) ‐ ‐ ‐
Westside Community Initiative Fund
The UIPA Housing Allocation was deposited in the Westside Community Initiative Fund in June 2021,
after the adoption of the Fiscal Year 2022 budget. The Agency is proposing to shift the funds from the
Westside Urban Land Fund into the Housing Development Loan Program, as well as retain 15% in fund
balance. This shift aligns with the newly amended Housing Allocation Funds Policy and will still be
utilized as part of the Westside Community Initiative priorities.
Westside Community Initiative Fund
(Northwest Quadrant Housing Fund)
Current
Budget Change Proposed
Budget
Revenue and Other Sources
UIPA Housing Allocation 250,000 159,031 🔺 409,031
Interest Income ‐ ‐ ‐
Total Revenue and Other Sources 250,000 159,031 🔺 409,031
Expenses and Other Uses
Capital Expenditures {Holding Accounts} ‐ ‐
West Side Urban Land Fund 250,000 (250,000) 🔻 ‐
Housing Development Loan Program 347,676 🔺 347,676
Total Expenses and Other Uses 250,000 97,676 🔺 347,676
‐ ‐
Total Over / (Under) ‐ 61,354 🔺 61,355
Administration
The impact of the Tax Increment and other revenue adjustments to the Administration Fund detailed
above can be seen in the table below, under Internal Transfers In. Expenses have been adjusted to include
an expected increase in Administrative Fees the Agency will receive from the City. In addition, the
Charges and Services line description has been adjusted for increased expenses that include a $25K
RAISE Grant Contribution, a 900 S Improvements project shortfall of $155K, and $100K for Ballpark
development efforts.
Administration Current
Budget Change Proposed
Budget
Revenue and Other Sources
Internal Transfers In
Revenue and Other Sources 2,757,315 ‐ 2,757,315
West Capitol Hill 150,000 (150,000) 🔻 ‐
West Temple Gateway 50,000 ‐ 50,000
Depot District 588,175 193,725 🔺 781,900
Granary District 93,169 54,042 🔺 147,211
North Temple 43,535 23,876 🔺 67,411
Block 70 ‐ ‐
‐
North Temple Viaduct 17,722 21,467 🔺 39,189
Northwest Quadrant 150,000 (37,112) 🔻 112,888
Stadler Rail 7,100 3,732 🔺 10,833
State Street ‐ 328,897 🔺 328,898
9 Line ‐ 147,772 🔺 147,773
Program Income Fund ‐ ‐
‐
Total Revenue and Other Sources 3,857,015 586,402 🔺 4,443,417
Expenses and Other Uses
RDA Personnel 2,254,632 ‐ 2,254,632
Administrative Fees 939,683 150,000 🔺 1,089,683
Operating & Maintenance 360,000 ‐ 360,000
Charges and Services 202,700 436,402 🔺 639,102
Furniture, Fixtures and Equipment 100,000 ‐ 100,000
Total Expenses and Other Uses 3,857,015 586,402 🔺 4,443,417
Total Over / (Under) ‐ ‐ ‐
2. Transfer of Housing Trust Fund
Housing Development Fund
The Housing Development Fund (formerly known as the Housing Development Trust Fund) was
established in the Fiscal Year 2020. The intent of establishing this fund was to evaluate further codifying
the consolidation of housing development loan programs by ordinance, to confirm that all the City's
housing development loan funds, regardless of funding source and regardless of which entity
administered the program, are deployed in a transparent manner. Funding Our Future Land Discounts and
Finance funds have been transferred into this fund each fiscal year since its establishment, with the intent
of transferring the Housing Trust Fund currently managed by the Department of Community and
Neighborhoods' Housing Stability Division into the Agency’s Housing Development Fund.
Finance has recently finished reconciling the loans in the Housing Trust Fund in preparation of the
transfer and will prepare a Budget Amendment Ordinance to move all assets and liabilities to the Agency.
The expected fund balance available to lend is approximately $2 million, and it is proposed to add the full
amount to the Housing Development Loan Program, as referenced in the table below.
When the final Second Amendment is presented, the corresponding Budget Resolution will be presented
for approval. Once the Ordinance and Amendments are approved, the administrative tasks of transferring
the management of the loans may proceed.
Housing Development Fund Current
Budget Change Proposed
Budget
Revenue and Other Sources ‐ ‐
Funding Our Future Land Discounts and
Financing 2,590,000 ‐ 2,590,000
Transfer from Housing Trust Fund ‐ 2,000,000 🔺 2,000,000
Total Revenue and Other Sources 2,590,000 2,000,000 🔺 4,590,000
‐ ‐
Expenses and Other Uses ‐ ‐
Capital Expenditures {Holding Accounts} ‐ ‐
Housing Development Loan Program 2,590,000 2,000,000 🔺 4,590,000
Total Expenses and Other Uses 2,590,000 2,000,000 🔺 4,590,000
‐ ‐
Total Over / (Under) ‐ ‐ ‐
3. Reallocation
Central Station Property Acquisition
The Agency currently owns approximately 4 acres of land in what is referred to as Central Station located
at approximately 600 West and 100 South. As previously directed by the Board, RDA staff is working to
acquire additional property for future development. This budget amendment would reallocate $550,000
from the RDA’s Revolving Loan Fund to purchase this property. The intention would be to repay this
contribution from the proceeds or lease payments as part of the future project.
Budget Impact: The proposed change would reduce the Revolving Loan Fund’s current available to lend
balance from $5,403,577.35 to 4,853,577.35.
West Capitol Hill Projects
In addition to the budget reallocation requests in the West Capitol Hill Project Area above, the Agency is
requesting to reallocate $338,141of funds previously set aside in the Program Income Fund for the Arctic
Court Infill Home project to projects in West Capitol Hill, as a contingency for expected increases in
construction costs.
Budget Impact: The Program Income Fund for the Arctic Court Infill Home project would be reduced to
zero. It is anticipated the Agency would request the use of housing funds in the future to finish the infill
housing project.
PREVIOUS BOARD ACTION:
1. Approval of the Fiscal Year 2021-2022 Budget.
2. Approval of the Fiscal Year 2021-2022 Budget Amendment #1.
ATTACHMENTS: N/A
1
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO__________
Second Budget Amendment
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY (“RDA”) AMENDING THE FINAL BUDGET OF THE RDA FOR
FISCAL YEAR 2021-2022
WHEREAS, on June 15, 2020, the RDA Board of Directors (“Board”) adopted the final
budget of the RDA, effective for the fiscal year beginning July 1, 2021 and ending June 30, 2022,
in accordance with the requirements of Section 17C-1-601.5 of the Utah Code.
WHEREAS, all conditions precedent to amend the RDA's budget have been accomplished.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Redevelopment Agency of Salt Lake City:
1. Purpose. The purpose of this Resolution is to amend the final budget of the RDA,
as approved, ratified and finalized by the RDA Board on June 15, 2021.
2. Adoption of Amendments. The budget amendments shown on Exhibit A as “Board
Approved” are hereby adopted and incorporated into the budget of the RDA.
3. Filing of copies of the Budget Amendments. The Salt Lake City Finance
Department, on behalf of the RDA, is authorized and directed to certify and file a copy of said
budget amendments in the office of the Finance Department, the RDA, and the office of the City
Recorder which amendments shall be available for public inspection.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah,
this ___ day of ______________, 2021, to be effective upon adoption.
________________________________
Ana Valdemoros, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Allison Parks
Date:____________________________
2
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
_________________________________
Erin Mendenhall, Executive Director
Attest:
_________________________
City Recorder
3
EXHIBIT A TO RESOLUTION
[Attach Board’s Final Approved Budget Amendment]
1
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO__________
Second Budget Amendment
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY (“RDA”) AMENDING THE FINAL BUDGET OF THE RDA FOR
FISCAL YEAR 2021-2022
WHEREAS, on June 15, 2020, the RDA Board of Directors (“Board”) adopted the final
budget of the RDA, effective for the fiscal year beginning July 1, 2021 and ending June 30, 2022,
in accordance with the requirements of Section 17C-1-601.5 of the Utah Code.
WHEREAS, all conditions precedent to amend the RDA's budget have been accomplished.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Redevelopment Agency of Salt Lake City:
1. Purpose. The purpose of this Resolution is to amend the final budget of the RDA,
as approved, ratified and finalized by the RDA Board on June 15, 2021.
2. Adoption of Amendments. The budget amendments shown on Exhibit A as “Board
Approved” are hereby adopted and incorporated into the budget of the RDA.
3. Filing of copies of the Budget Amendments. The Salt Lake City Finance
Department, on behalf of the RDA, is authorized and directed to certify and file a copy of said
budget amendments in the office of the Finance Department, the RDA, and the office of the City
Recorder which amendments shall be available for public inspection.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah,
this ___ day of ______________, 2021, to be effective upon adoption.
________________________________
Ana Valdemoros, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Allison Parks
Date:____________________________
February 22, 2022
2
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
_________________________________
Erin Mendenhall, Executive Director
Attest:
_________________________
City Recorder
3
EXHIBIT A TO RESOLUTION
[Attach Board’s Final Approved Budget Amendment]
Signature:
Email:
Garrett A. Danielson (Feb 23, 2022 10:17 MST)
Garrett A. Danielson
garett.danielson@slcgov.com
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 March
8, 2022 in a hybrid (in-person/electronic) meeting pursuant to Salt Lake City Proclamation.
Appropriate notice was given of the Redevelopment Agency meeting as required by §52-4-202.
A quorum of the Board of Directors 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 RDA 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
Ana Valdemoros (Mar 8, 2022 17:08 MST)Mar 8, 2022
RDA Sworn Statement - Closed Session 3/8/22
Final Audit Report 2022-03-09
Created:2022-03-08
By:DeeDee Robinson (deedee.robinson@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAAam1LMfpiXkKVNROkpLNxve62Hy6hpZf8
"RDA Sworn Statement - Closed Session 3/8/22" History
Document created by DeeDee Robinson (deedee.robinson@slcgov.com)
2022-03-08 - 11:14:32 PM GMT
Document emailed to Ana Valdemoros (ana.valdemoros@slcgov.com) for signature
2022-03-08 - 11:15:38 PM GMT
Email viewed by Ana Valdemoros (ana.valdemoros@slcgov.com)
2022-03-09 - 0:08:02 AM GMT
Document e-signed by Ana Valdemoros (ana.valdemoros@slcgov.com)
Signature Date: 2022-03-09 - 0:08:35 AM GMT - Time Source: server
Agreement completed.
2022-03-09 - 0:08:35 AM GMT