Loading...
03/19/2024 - Meeting Materials    Board of Directors of the REDEVELOPMENT AGENCY OF SALT LAKE CITY REVISED AGENDA   March 19, 2024 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 and City Ordinance, the meeting may be held electronically.  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: 11:15:59 Comments:A.   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 the RDA Board offices: 451 South State Street, Suite 304, P.O. Box 145476, Salt Lake City, UT. 84114-5476. 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.Informational: Housing Development Funding Strategy Fiscal Year 2024-25 ~ 2:05 p.m.  20 min. The Board will receive an introductory briefing about the proposed Housing Development Funding Strategy for Fiscal Year 2024-25. 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.    Items C2 & C3 will be heard as one item. 2.Resolution: Housing Development Loan Program (HDLP) Funding Allocation for High Opportunity Areas ~ 2:25 p.m.  45 min. The Board will consider adopting a resolution that would approve up to $2.7 million for affordable housing projects located in “high opportunity areas.” These funds are available through a special allocation within the RDA’s HDLP. Two applicants responded to the Notice of Funding Availability (NOFA), requesting a total of $5.35 million in low interest loans. 3.Resolution: Housing Development Loan Program (HDLP) Funding Allocations for Gap Financing -  - The Board will be briefed about and will consider adopting a resolution that would approve up to $15.4 million in affordable housing funding allocations as selected through a competitive Notice of Funding Availability (NOFA) for the HDLP. This year, Federal Department of Housing and Urban Development (HUD) funds from the City’s Housing Stability Division have been incorporated into the competitive NOFA through the HDLP. The HDLP funds are available to projects located anywhere within Salt Lake City municipal boundaries.   4.Resolution: RDA Budget Amendment No.2 for Fiscal Year 2023- 24 ~ 3:10 p.m.  30 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 2023-24. 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 re-appropriating funding for several previous projects in the Depot District and Station Center areas. The changes consolidate appropriations to align with the City's new Workday financial system structure. Most of the funding is for public infrastructure improvements in Station Center which is located between 200 South to 400 South and 500 West to 600 West.  5.Informational: Japantown Visioning Process Update ~ 3:40 p.m.  30 min. The Board will receive a briefing about the Japantown visioning process update. In 2018, the RDA Board began supporting the revitalization of Salt Lake City's historic Japantown, located at 100 South between 200 and 300 West, through funding and staffing a “visioning process” for the Japanese-American community. Institutions including the Salt Lake Buddhist Temple, the Japanese Church of Christ, and the Japanese Community Preservation Committee have worked since then to develop a shared vision of how Japantown Street could be restructured to better serve the community, particularly the key annual festivals of Obon, Nihon Matsuri and Aki Matsuri.  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. 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: •Project Updates; •Request for Proposal Updates; and •Scheduling items.  8.Report of the Chair and Vice Chair TENTATIVE  5 min. Report of the Chair and Vice Chair.   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:   1.Informational: Semiannual Status Report on RDA Commercial Loan Portfolio Written Briefing  - The Board will receive a written briefing about the status of the RDA’s commercial loan portfolio. This report identifies the following:  •New loans approved between July 1, 2023 and December 31, 2023 •Remaining amount available in the existing portfolio •Outstanding principal for the Revolving Loan Fund •Any delinquencies   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 2023- 24 -  - The Board will set the date of Tuesday, April 16, 2024 at 2 p.m. to accept public comment and consider adopting a resolution that would amend the final budget of the Redevelopment Agency of Salt Lake City for Fiscal Year 2023-24. 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 re-appropriating funding for several previous projects in the Depot District and Station Center areas. The changes consolidate appropriations to align with the City's new Workday financial system structure. Most of the funding is for public infrastructure improvements in Station Center which is located between 200 South to 400 South and 500 West to 600 West.  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. Adjournment  G.   CERTIFICATE OF POSTING On or before 2:00 p.m. on Monday, March 18, 2024, 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. Annual HOUSING FUNDING strategy Fy 2024-25 HOUSING DEVELOPMENT FUND WESTSIDE COMMUNITY INITIATIVE FUND SECONDARY HOUSING FUND ADOPTED Q1 2021 YEARLY BOD APPROVAL PRIMARY HOUSING FUND HOUSING ALLOCATION FUNDS POLICY HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY 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 FUND WESTSIDE COMMUNITY INITIATIVE FUND HOUSING DEVELOPMENT FUND SECONDARY HOUSING FUND housing fund allocations $$$$ HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY FY24 Housing ActivitY RECAP 2024 HOUSING PRIORITIES Wealth Building Opportunity Affordable Family Housing Deeply Affordable Housing Missing Middle Housing FY 2023-24 Housing Development Loan Program $13.7 released ($4.2 in RDA Funds, $9.5 in HUD funds) - In process and to be reviewed by RDA Board in March ADU Partnership Request for Information, NOFA for ADU program to follow Prep Work on Acquisitions/Dispositions West Montrose Deseret Industries/Fire Station Site - Sugar House 400 South/900 West Equity Building Model RDA Board allocated $10 million in ARPA funds the Perpetual Housing Fund of Utah to carry out a tenant wealth building program Data - current and future slc deed-restricted affordable housing developments map Data - city supported Affordable housing constructed since 2015 and future developments Data - city supported Affordable housing units constructed since 2015 and future developments Housing Units by Unit Size Data - Salt Lake City Housing Snapshot MEDIAN HOUSEHOLD INCOME $72,3571 MEDIAN HOME VALUE2 LOW-INCOME HOUSEHOLDS3 COST-BURDENED HOUSEHOLDS4 AFFORDABLE UNIT GAP5 MEDIAN RENT $458,600 $1,254 -17,366 39,320 (earning < 80% AMI) 24,285 (spending 30% or more income on housing costs) MEDIAN HOUSEHOLD INCOME $66,6581 MEDIAN HOME VALUE2 LOW-INCOME HOUSEHOLDS3 COST-BURDENED HOUSEHOLDS4 AFFORDABLE UNIT GAP5 MEDIAN RENT $459,800 $1,037 (1 Bed) -15,877 39,475 (earning < 80% AMI) 23,597 (spending 30% or more income on housing costs) FY 2023-2024 FY 2022-2023 Source: Census Bureau's 2017-2022 ACS 5-Year Estimates (1,2) Dept. of Housing and Urban Development’s Comprehensive Housing Affordability Strategy 2016-2020 (3,4) 1 Source: Census Bureau's 2017-2022 ACS 5-Year Estimates HOMEOWNERSHIP RATE IS GROWING AT A SLOWER PACE THAN RENTAL RATE Data - other metrics 2 Source: Census Bureau's 2017-2022 ACS 5-Year Estimates AT LEAST 8,341 RENTING HOUSEHOLDS FALL IN THE "EXTREMELY LOW INCOME” LIMIT SET BY HUD FOR FY23. Data - other metrics 3 Source: Census Bureau's 2017-2022 ACS 5-Year Estimates PERCENTAGE OF FAMILY HOUSEHOLDS HAVE BEEN DECREASING SINCE 2018 Data - other metrics 4 Source: Census Bureau's 2017-2022 ACS 5-Year Estimates HIGHER INCOME HOUSEHOLDS MAKING $75K OR MORE HAVE INCREASED WITHIN SALT LAKE CITY THROUGH THE YEARS, LOWER INCOME HOUSEHOLD MAKING LESS THAN $50K HAVE DECREASED. Data - other metrics 5 Salt Lake County Assessor (5) NUMBER OF COMMERCIAL PARCELS HAVE DECREASED WITHIN SALT LAKE CITY Data - other metrics 6 CoStar Group (6) COMMERCIAL GROWTH RATE IS SLOWING, WHILE OCCUPANCY AND LEASE RATES HAVE INCREASED Data - other metrics 2 3 4 5 6 Source: Census Bureau's 2017-2022 ACS 5-Year Estimates (1,2, 3, 4) Salt Lake County Assessor (5) CoStar Group (6) HIGHER INCOME HOUSEHOLDS MAKING $75K OR MORE HAVE INCREASED WITHIN SALT LAKE CITY THROUGH THE YEARS, LOWER INCOME HOUSEHOLD MAKING LESS THAN $50K HAVE DECREASED. NUMBER OF COMMERCIAL PARCELS HAVE DECREASED WITHIN SALT LAKE CITY COMMERCIAL GROWTH RATE IS SLOWING, WHILE OCCUPANCY AND LEASE RATES HAVE INCREASED PERCENTAGE OF FAMILY HOUSEHOLDS HAVE BEEN DECREASING SINCE 2018 AT LEAST 8,431 RENTING HOUSEHOLDS FALL IN THE "EXTREMELY LOW INCOME” LIMIT SET BY HUD FOR FY23. 1 HOMEOWNERSHIP RATE IS GROWING AT A SLOWER PACE THAN RENTAL RATE Data - other metrics salt lake City Housing Goals HOUSING SLCMAYOR'S 2024 GOALS RDA LIVABILITY BENCHMARKS Begin implementation on Thriving in Place’s two-year action plan (anti-displacement) Create and submit to the RDA Board a program to support the creation of more Accessory Dwelling Units (ADUs) Explore funding resources and program ideas to preserve naturally occurring affordable housing with the goal of keeping people in their homes and stabilizing neighborhoods Support projects that allow tenants to build wealth and/or gain equity Continue to release housing funds through RDA for development or acquisition of moderate income housing Promote the development of affordable family- sized units with 3+ bedrooms Provide funding for programs and/or initiatives that build wealth and/or provide equity sharing opportunities for residents Utilize Inland Port Housing Funds to expand affordable housing options Ownership - Create opportunities for residents/business owners to building wealth and/or establish permanent roots Housing for Everyone - Promote housing for families, underserved populations and extremely low income Affordable Commercial Spaces - Support mixed- use projects with space for commercial uses that serve the community WEALTH BUILDING OPPORTUNITY recommended annual housing priorities Four priorities to focus on this FY; Seeking Board feedback today NEIGHBORHOOD COMMERCIAL AND SERVICES AFFORDABLE FAMILY HOUSING w/ AMENITIES for CHILDREN DEEPLY AFFORDABLE HOUSING HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY LAND ACQUISITION/ DISPOSITION HOUSING DEVELOPMENT LOAN PROGRAM EQUITY BUILDING NOFA recommended 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 Require affordable family housing and/or deeply affordable housing as threshold Utilize interest rate reduction benchmarks for competitive NOFA (Alignment with RDA's Guiding Framework); annual priorities will have greater ranking weight HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY FY25 Housing Activity IMPACT HOUSING PRIORITIES Wealth Building Opportunity Affordable Family Housing w/ Amenities for Children Deeply Affordable Housing Neighborhood Commercial & Services Equity Building NOFA Land Acquisition/ Disposition Housing Development Loan Program HOUSING ACTIVITIES HOUSING DEVELOPMENT FUND SECONDARYPRIMARY WESTSIDE COMMUNITY INITIATIVE FUND housing fund allocations FY25 ANNUAL HOUSING FUNDING STRATEGY ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES NEIGHBORHOOD COMMERCIAL AND SERVICES DEEPLY AFFORDABLE HOUSING WEALTH BUILDING OPPORTUNITY AFFORDABLE FAMILY HOUSING HOUSING DEV. LOAN PROGRAM LAND ACQUISITION/ DISPOSITION EQUITY BUILDING NOFA Redevelopment Advisory Committee Establish standard benchmarks/measures of success to review as a part of funding strategy process Allow more time to understand if measures are met Units for families don’t necessarily need 3 bedrooms Ground floor walk-ups are conducive to families Requiring commercial space as part of the HDLP may be difficult - encourage instead Financial incentives for affordable housing should be coupled with zoning incentives RAC next steps The RDA Board may wish to discuss and provide feedback regarding the proposal The RDA Board will consider approval of the FY25 housing priorities at their April meeting Proposed funding allocations to housing activities will be brought to the RDA Board with the budget presentation in May Housing activities are approved as a part of the RDA budget approval HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY HOUSING DEVELOPMENT FUND SECONDARYPRIMARY WESTSIDE COMMUNITY INITIATIVE FUND housing fund allocations FY25 ANNUAL HOUSING FUNDING STRATEGY ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES NEIGHBORHOOD COMMERCIAL AND SERVICES DEEPLY AFFORDABLE HOUSING WEALTH BUILDING OPPORTUNITY AFFORDABLE FAMILY HOUSING HOUSING DEV. LOAN PROGRAM LAND ACQUISITION/ DISPOSITION EQUITY BUILDING NOFA 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: March 1, 2024 PREPARED BY: Lauren Parisi & Tracy Tran, RDA Senior Project Managers RE: FY 2024-25 Housing Development Funding Strategy REQUESTED ACTION: Briefing on the FY 2024-25 Housing Development Funding Strategy POLICY ITEM: Affordable Housing BUDGET IMPACTS: N/A EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City’s (“RDA”) Housing Allocations Funds Policy (“Funds Policy”) establishes guidelines for allocating and directing resources for the development and preservation of housing by funding source. Additionally, the RDA’s 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 gap financing 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) This memo reviews the Funding Priorities and housing activities adopted in Fiscal Year 2023-2024 (“FY 24”) as well as the proposal for Fiscal Year 2024-2025 (“FY 25”). 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 RDA Board of Directors (“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. 1 BACKGROUND: FY 24 Annual Housing Funding Strategy Progress/Outcomes – Last year, the Board adopted four housing funding priorities including family housing, deeply affordable housing, missing middle housing and affordable homeownership to guide housing funding decisions for the rest of the fiscal year. Progress has been made to further each of these priorities as follows: Priority Objective Activities Implementation Impact/Status Affordable Family Housing Provide opportunities for families to enjoy the many benefits of urban living by encouraging the development of affordable housing that is more conducive to larger household sizes. Family housing is generally defined as units with three or more bedrooms. HDLP, property acquisition/dispositi on, shared equity Threshold requirement for HDLP*, higher weighted score in HDLP The total units funded will be available after the RDA Board reviews the funding allocations for the competitive HDLP applications at an upcoming meeting. Deeply Affordable Housing Expand the availability of units for extremely low- income households, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. Deeply affordable housing is generally defined as housing affordable to those earning 40% of the area median income (AMI) or below. HDLP Threshold requirement for HDLP*, higher weighted score in HDLP The total units funded will be available after the RDA Board reviews the funding allocations for the competitive HDLP applications at an upcoming meeting. Missing Middle Housing Promote an array of housing forms to diversify the City’s housing stock and provide more affordable living ADU assistance Released RFI to facilitate construction of ADUs. Higher weighted score in HDLP* In August of 2023, Procurement advised the RDA to release a request for information (RFI) regarding how vendors could help the city 2 options for residents. facilitate the construction of ADUs. Six responses were received that highlighted the need for flexible financing for construction and utility work, education regarding zoning and becoming a landlord, standardized production, and pre-vetted contractors among other items. The RDA is working to utilize this information to put out an ADU RFP or NOFA in the 9 Line as soon as feasible. RDA Staff will return to the Board as progress is made on this item. Wealth Building Opportunity Facilitate the ability for low-moderate income households to build wealth through different pathways such as homeownership, supplemental income opportunities, stipends for renters, cooperative housing, and other wealth building models. Allocation of funds for wealth building. Allocation of Funds. Higher weighted score in HDLP Through the City’s American Rescue Act Plan (ARPA) funds, the RDA Board allocated $10 million to the Perpetual Housing Fund of Utah, LLC to purchase a property and to develop additional projects that carry out a tenant wealth building program. RDA staff is working through legal agreements to close on the funds and will finalize once conditions of the approval have been met. *In addition to this requirement, all HDLP applicants must comply with the RDA’s Sustainable Development Policy which requires all new construction and rehab projects receiving $900,000 or more in funding must the following: • Energy Star score of 90+ • 100% electric (no on-site fuel combustion) • Participation in Salt Lake City’s Energy Benchmarking Program 3 Housing and Data Snapshot 4 Citywide Housing Plans and Goals The RDA is guided by and charged with implementing citywide plans and goals. Additionally, the RDA is guided by its own project area plans, Guiding Framework and Livability Benchmarks. Current housing plans and goals that the RDA’s annual Housing Development Funding Strategy should consider include: Mayor Mendenhall’s 2024 Goals •Begin implementation efforts on the 16 priorities outlined in Thriving in Place’s two-year action plan. •Create and submit to the RDA Board a program to support the creation of more Accessory Dwelling Units. •Explore funding resources and program ideas to preserve naturally occurring affordable housing with the goal of keeping people in their homes and stabilizing neighborhoods. Housing SLC (Citywide 5-year housing plan) – Strategies •Support projects that allow tenants to build wealth and/or gain equity in their building based on tenure 5 • Work with community development partners to acquire priority properties for permanently affordable housing • Continue to release housing funds through Redevelopment Agency of Salt Lake City (RDA) for development or acquisition of moderate income housing. • Utilize Inland Port Housing Funds (pursuant to Utah Code Section 11-58-601(6)(b) of the Inland Port Act) and other housing set-aside funds received by the Redevelopment Agency (RDA) to expand affordable housing options, including tenant equity opportunities throughout the city, especially on the west side • Develop a financing program for low-income homeowner Accessory Dwelling Unit (ADU) construction • Promote the development of affordable family-sized housing units with 3+ bedrooms • Establish at least one housing and transit reinvestment zone (HTRZ) in the city • Expand workforce, artist, and essential worker housing, up to 125% AMI, so that these populations can live in the city in which they serve • Provide funding for programs and/or initiatives that build wealth and/or provide equity sharing opportunities for residents Thriving in Place (anti-displacement framework) – Strategic priorities relevant to the RDA include: • Protect tenants from displacement, especially the most vulnerable o Help tenants become owners. • Preserve the affordable housing we have o Acquire and rehabilitate unsubsidized housing o Invest in Community Land Trust Models • Produce more housing, especially affordable housing. o Create more diverse housing choices in all areas o Utilize publicly owned property o Prioritize long-term affordability, support services, and transit access. • Expand Capacity for tenant support and affordable housing o Develop new funding sources and leverage existing resources RDA Livability Benchmarks (3 of 21 benchmarks) • Ownership – Encourage the creation of opportunities for residents/business owners to building wealth and/or establish permanent roots through affordable home/commercial ownership. • Housing for Everyone – Promote housing for families, underserved populations and extremely low income. • Affordable Commercial Spaces – Projects are mixed-use and include spaces within the development for commercial uses. Housing Funds Housing funds within the RDA’s various housing funds for the upcoming fiscal are currently not available and will be shared when available. 6 ANALYSIS: FY 25 Proposed Funding Priorities – Reviewing city plans, current housing data, commercial data, and remarks from the RDA Board, housing funding priorities and associated activities have been proposed to guide FY 25. To make the greatest impact, staff recommend limiting the adopted Funding Priorities to four or fewer. To note, staff determined that FY 24’s Funding Priorities are still very relevant in addressing the city’s current housing needs. Many of the programs and initiatives introduced in the last two fiscal years to further each FY 24’s Funding Priorities are currently underway or ongoing and more time is needed for implementation. For these reasons, the proposed priorities are very similar to last year’s proposal. 1. WEALTH BUILDING OPPORTUNITY – This priority supports different forms of wealth building opportunities for low-moderate income households. Although homeownership is a path to wealth building, it is not the only form that the RDA could potentially support to help individuals and families meet this goal. Wealth building can be accomplished through different forms of shared equity models such as rental subsidies where tenants earn a portion of a development’s return and community land trust models. Supporting ADUs also supports wealth building by supporting mortgage payments and increasing income and property values. This priority will encompass a variety of options for residents to build wealth. 2. AFFORDABLE FAMILY HOUSING WITH AMENITIES FOR CHILDREN – This priority promotes affordable, larger housing units for tenant populations with children that have at least three or more bedrooms and includes amenities for children. There is a need for affordable family- sized units, especially as more families look outside of Salt Lake City boundaries for affordable housing options and enrollment in Salt Lake City schools decreases. Per the interlocal agreements with the School District for the State Street and 9 Line project areas, the RDA must also prioritize affordable family and workforce housing described as: • Affordable Family Housing: Development of new housing units that include 3+ bedrooms and are affordable to households at or below 80% of the area median income as defined by the U.S. Department of Housing and Urban Development. • Workforce Housing: Development of new housing units affordable to low and middle- income workers, including teachers and school district employees. 3. DEEPLY AFFORDABLE HOUSING – This priority promotes housing units affordable for those earning 40% AMI and below. While the city has made progress facilitating the development of deeply affordable units, there is still a shortage of over 5,500 units for those earning 30% AMI or less in particular and it’s proposed to continue to promote this priority through FY 25 (Housing SLC - Housing Needs Analysis). 4. NEIGHBORHOOD COMMERCIAL AND SERVICES – This priority ensures that as housing continues to be built throughout the City, residents and neighbors continue to have access to 7 neighborhood services and amenities such as daycares, restaurant, and retail spaces. These commercial and retail spaces should not be exclusive to the housing development. For permanent supportive housing projects targeting 30% AMI, onsite supportive services may be substituted for commercial retail space. FY 25 Proposed 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 activities and tactics as part of the RDA’s FY25 budget. Some of the housing activities may achieve multiple Funding Priorities. See Figure 2 for summary. HOUSING ACTIVITIES HOUSING PRIORITIES Wealth Building Opportunity Affordable Family Housing and Amenities for Children Deeply Affordable Housing Neighborhood Commercial and Services Equity Building NOFA: With the primary goal of removing barriers to wealth building and creating generational wealth, the RDA will release a notice of funding availability (NOFA) to support external programs and/or developments that build equity for lower- moderate income individuals and families. This model could take on different forms such as a shared profit, shared equity program, or mortgage assistance. There are various community organizations with programs that support wealth building and homeownership in need of financial assistance where the RDA could leverage existing funding, which is why the RDA is proposing this approach as opposed to creating a new program. Guidelines with funding objectives will be released in conjunction with the NOFA and proposals will be reviewed on a competitive basis. The RDA will release a request for proposals (RFP) prioritizing the inclusion of homeownership products and/or a shared equity component on the West Montrose site ✓ ✓ 8 located off the northeast corner of 800 South and 300 West. This site is approximately two acres and could potentially accommodate a significant number of units. ADU Financing Program: The RDA will continue to work towards developing an RDA program to facilitate the construction of ADUs, with initial focus on the 9 Line Project Area. This activity could provide a wealth building opportunity for homeowners in the 9 Line area. Land Acquisition/Disposition: The RDA will release requests for proposals (RFP) on RDA- owned land. For properties that contemplate housing as a land use, the RDA may require that affordable family-sized units, deeply affordable units, and/or neighborhood commercial and services are incorporated within proposals. Additionally, the RDA has been actively looking to purchase properties to implement RDA goals. ✓ ✓ ✓ ✓ Housing Development Loan Program(“HDLP”): The HDLP is a gap financing program for affordable housing developments. The RDA releases funds annually through a competitive Notice of Funding Availability (NOFA). Similar to the last two years, at least 10% of a development’s units must be deeply affordable or affordable family-sized with amenities for children to qualify for the RDA’s competitive NOFA. In addition, neighborhood commercial and services will also be a requirement for the HDLP. All the project priorities will also be weighted heavier as a part of the competitive NOFA review process. ✓ ✓ ✓ ✓ 9 NEXT STEPS: • The RDA Board should consider whether the proposed Funding Priorities align with their goals for the upcoming fiscal year. • The finalized Funding Priorities will be brought back for the Board’s consideration to adopt via resolution in April. • RDA staff will present the final Funding Strategy to the Board as a part of the budget presentation, which includes the projected amount of revenue to be allocated to each of the four housing funds. The Board should consider whether to adopt the final Funding Strategy as part of the annual budget adoption process. ATTACHMENTS: Attachment A – Data Attachment B – RDA Affordable & Mixed-Income Housing Summary: 2010/11 - 2023/24 10 ATTACHMENT A – DATA EXISTING AFFORDABLE HOUSING DATA Current and Future Salt Lake City Deed-Restricted Affordable Housing Developments Map Source: SLC Affordable Housing Pilot Report 11 All City-Supported Affordable Housing Constructed Since 2015 and Future Developments Source: SLC Affordable Housing Pilot Report City-Supported Housing Units Constructed Since 2015 and Future Projects with Allocated Funds 12 SALT LAKE CITY AFFORDABLE HOUSING AND COMMERCIAL TRENDS Source: Census Bureau’s 2017-2022 ACS 5-Year Estimates 13 Source: Census Bureau’s 2017-2022 ACS 5-Year Estimates 14 Salt Lake City Households Source: Census Bureau’s 2017-2022 ACS 5-Year Estimates 15 Household Income Levels Source: Census Bureau’s 2017-2022 ACS 5-Year Estimates 16 Commercial Data Source: Salt Lake County Assessor Source: CoStar Group 17 RDA Affordable Housing Funding Allocations by Fiscal Year RDA Affordable Housing – Other Funding Project Address Project Area Tool FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total Artspace Commons 423 W 800 S Granary District TI Reimbursement $48,880 $38,843 $36,237 $38,364 $38,431 $38,813 $21,194 $100,025 $34,000 $394,787 Northgate Apartments 135 S 500 W Depot District TI Reimbursement $802,648 $838,207 $856,452 $696,064 $708,427 $586,103 $426,209 $521,038 $600,000 $712,922 $653,790 $7,401,860 West Montrose 300 W 800 S West Temple Gateway Acquistion (FY2010)$0 Arctic Court 528 N Arctic Ct West Capitol Hill Acquistion $200,000 $200,000 Housing Trust Fund HTF Transfer $109,000 $208,578 $124,350 $899,902 $518,393 $0 $3,000,000 $4,860,223 $960,528 $1,085,628 $1,017,039 $1,834,330 $1,265,251 $624,916 $3,447,403 $621,063 $634,000 $712,922 $653,790 $0 $0 $12,856,870 ATTACHMENT B - RDA AFFORDABLE HOUSING SUMMARY: 2010/11 -2023/24* 1 RDA Affordable Housing Development Details *Developments funded in FY 2023-24 will be added after the Board has approved funding allocations through the Housing Development Loan Program  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 Senior Budget & Policy Analyst DATE:March 19, 2024 RE: RESOLUTION: HOUSING DEVELOPMENT LOAN FUNDING ALLOCATIONS FOR AFFORDABLE HOUSING ISSUE-AT-A-GLANCE The Board will review and potentially approve recommendations for allocating up to $15.4 million in affordable housing funds offered through a Notice of Funding Availability (NOFA) issued last year. The purpose of these low-interest loans is to incentivize the inclusion of affordable housing in new construction and in preservation/ rehabilitation projects. The unusually large size of this NOFA allocation reflects the combination of $4.2 million in committed RDA funds with $9.5 million of “dormant” Federal Housing and Urban Development (HUD) Home Investment Partnership (HOME) funds, which were shifted by the Council from the Housing Stability Division to the RDA’s Housing Development Loan Program (HDLP) in the Fiscal Year 2024 (FY24) budget. In addition, RDA staff proposes including another $1.7 million of additional funding to the NOFA from two rescinded FY23 HDLP loans. The 15 applications forwarded to the Board requested a total of nearly $27.5 million, and the RDA Finance Committee recommended funding 14 of these (see Attachment C1 for summary). In addition, two applications were received in response to a separate NOFA specifically for projects in High Opportunity Areas. These two applications were discussed in the February RDA meeting but the Board deferred action to be able to make funding decisions in the context of all the projects at once. The Board makes the final determination of which applications to fund and for what amount. Together, the projects recommended for funding would provide 1,540 units of new or refurbished affordable housing. Goal of the briefing: Discuss and consider adopting the Resolution entitled Affordable Housing – FY2023- 2024 Competitive Housing Development Loan Program (HDLP) Funding Allocations. Item Schedule: Briefing: March 19, 2024 Set Date: N/A Public Hearing: N/A Potential Action: March 19, 2024 Page | 2 ADDITIONAL INFORMATION A. Process Overview. Since 2018, the RDA has released multiple NOFAs to facilitate the development of affordable housing units in Salt Lake City. This year, the 15 “competitive” HDLP applications recommended to the Board requested a total of nearly $27.5 million. RDA staff indicated that five other applications also were submitted but because they did not meet the eligibility criteria for NOFA funds they were not included in the ranking process (see Attachment C2). All eligible applications were reviewed and ranked by the RDA Finance Committee, and their specific recommendations for allocating $15.1 million of the $15.4 million available are summarized in Attachment C1. Of the 15, all but one (Bumper House) were recommended for HDLP funding. Nine of these were recommended for the full amounts requested, and five were recommended for less than the full amount. A summary of all 20 applications appears in Attachment C1. The NOFA recommendations reached the Board in March this year, rather than earlier, due to the incorporation of the dormant HUD HOME funds, which involved determining a process that would comply to Federal regulations. The FY24 NOFA was released on November 17, 2023, and applications were due on January 3, 2024. B. Available Funding. The $15.4 million funding available this year includes $4.2 million approved by the Board in 2023 as part of the FY24 RDA budget, plus one-time funding provided by the Council’s allocation of $9.5 million in dormant HUD Home Investment Partnership (HOME) funds from the Housing Stability Division. If the Board chooses, an additional $1.7 million, which became available when loans for two projects approved last year were rescinded (see below), would also be included. FY24 HDLP Funding Sources Total Available Recommended Funding Funds Remaining RDA Committed Funds $4,241,714 $4,241,714 $0 Possible Additional RDA Funds $1,665,000 $1,665,000 $0 HOME Program Income $6,939,710 $6,939,710 $0 HOME Development Fund $726,291 $726,29 $0 HOME ARP Development $1,501,608 $1,501,608 $0 HOME Community Housing Development Organization Funds $351,841 $0 $351,841 Total Potential HDLP Funds $15,426,164 $15,074,323 $351,841 In FY23, two HDLP awardees (for Liberty Corner and Book Cliffs Lodge) failed to receive 9% tax credits through LIHTC, the Federal Low-Income Housing Tax Credit in the subsequent allocation cycle, which was a condition of the loans. Both these projects applied for HDLP funds again in FY24, as can be seen in Attachment C1, and Liberty Corner was since awarded 4% LIHTC credits. Book Cliffs Lodge plans to use other funding sources for their project. The $351,841 remaining in the HDLP results from receiving no applications that would meet the relatively narrow criteria for the HOME Community Housing Development Organization Funds. These funds may be used only for projects that are owned, developed, or sponsored by a nonprofit that qualifies as a Community Housing Development Organization (CHDO), as defined in Federal regulations. The Housing Stability Division in the Community and Neighborhoods Department (CAN) has worked to recruit new CHDOs over the years, but local organizations typically do not meet the regulatory requirements. Still, since no qualified applications for these funds have been received in the past two years, HUD regulations will now allow them Page | 3 to be recaptured and proposed for reallocation during the next annual HUD application process through the HDLP as regular HOME funds. C. Project Evaluation. As part of the application review process, RDA staff first analyzes applications to ensure they meet the HDLP eligibility requirements. The RDA Finance Committee (see below) then considers the Board’s funding priorities, along with factors related to the feasibility and technical qualities of each application. These include developer experience, the completeness and quality of the application, the amount of requested funding per affordable unit, the unit mix, community impact, and the financial and regulatory readiness of the proposed project. This year, the Finance Committee recommended full funding for the five applications that ranked most highly. For the next eight highest-ranked applications, the Finance Committee considered the minimum funding needed for the projects to advance, as reported by the applicants. RDA staff reported, “This approach recognized the readiness of the top ranked applications while providing at least minimum funding needs to most other projects.” The only project that the Finance Committee did not recommend for any funding was Bumper House which had the lowest Weighted Project Priority Score of all the applications. D. Applications for Projects in High Opportunity Areas. The 515 Tower - Conversion Phase I, which the Board was briefed on in February, is included on the list of recommended projects. It ranked third among the 14 projects recommended by the RDA Finance Committee. Funding for this project would be drawn from the High Opportunity Areas HDLP—or, if the Board prefers, it could award funding to the other application received, for Fairmont Heights II. These two applications were discussed in the February RDA meeting but the Board deferred action to be able to make funding decisions in the context of all of the projects at once. Summaries of the two applications in high opportunity areas are below. Additional information can be found in the Board staff report for that item, which is included as Attachment C2. 1.515 Tower - Conversion Phase I at 515 East 100 South. The request is for $2,650,000 for 96 units of “shared-equity” affordable housing to be developed by the Perpetual Housing Fund of Utah. This developer also applied for competitive HDLP funding and would use any funds granted from either source for this project. On February 1, the RDA Finance Committee recommended fully funding the 515 Tower - Conversion Phase I. 2.Fairmont Heights II at 2257 South 1100 East. The request is for $2,700,000 for affordable housing to be developed by Lincoln Avenue Capital. This developer also applied for $3.2 million from the general competitive HDLP funding for their Fairmont Heights I project, for a total of $5,900,000. This project did not apply for general HDLP funding, but a related project planned for the same property did. Fairmont Heights I ranked second-to-lowest among the other applications, but was recommended by the RDA Finance Committed for a $1 million loan. The allocation of funds for “high opportunity areas” dates from 2017, when the Board authorized $4.5 million for projects located in neighborhoods that provide residents with improved chances at upward economic mobility, like good schools, public transit access, and health care facilities. Two years later, the Board approved a $1.8 million loan for the Richmond Flats development, leaving the current balance at $2.7 million. Page | 4 E. Potential Additional City Funding. Two of the projects in the HDLP application pool also applied for Fiscal Year 2025 HUD grant funding. 1.Alliance House 1805 Rebuild. In addition to the $500,000 recommended for the Alliance House 1805 Rebuild, the project applied for two of the City’s annual HUD grants, which the Council is currently considering. It was recommended for partial funding for both these grants: - CDBG Housing: recommended to receive $221,000 of $300,000 requested to demolish and rebuild the existing facility with 16 deeply affordable housing units. -HOME-ARPA: recommended to receive $97,000 of $150,000 requested to provide short- term rental assistance to the current residents while the housing structure is demolished and rebuilt. 2.New City Plaza Apartments. Along with the $895,000 recommended for the New City Plaza Apartments the project also applied for $2 million from the City’s annual HUD grants. Neither the resident advisory board nor the Mayor recommended funding this project. POLICY QUESTIONS 1. Some Board Members have mentioned an interest in exploring how ownership units might be funded through the RDA. The Board may wish to discuss questions like those listed below. a. Is the HDLP structured in a way that facilitates applications for home ownership projects? b. Are there differences between rental projects and home ownership projects, for example, income and wealth levels of potential residents, unit sizes, etc.? c. What are the potential benefits and disadvantages for the City of funding home ownership projects versus rental projects? d. Are there models of home ownership or wealth-building that Board Members have encountered elsewhere which they would like RDA staff to research? e. Would the Board like to schedule an RDA briefing on options for promoting home ownership? 2. The projects reviewed by the RDA Finance Committee would be charged interest rates that range from 1% to 2.5%. In the context of continued high interest rates in the broader economy (relative to recent previous decades), would the Board like to discuss the potential advantages and disadvantages of changing how the Base Interest Rate is set for HDLP loans? ATTACHMENTS Attachment C1. Summary of RDA Finance Committee Recommended FY24 HDLP Funding. Attachment C2. Applications that Did Not Meet FY24 HDLP Eligibility Requirements. Attachment C3. RDA Board Staff Report, Funding Allocation for Gap Financing for High Opportunity Areas, February 13, 2024. RDA BOARD MEETING – MARCH 19, 2024 AFFORDABLE HOUSING NOTICE OF FUNDING AVAILABILITY (NOFA) HIGH OPPORTUNITY AREA & FY2023-24 COMPETITIVE APPLICATIONS FUNDS AVAILABLE •Total: $2.7M o 2017: RDA Board set aside $4.5M to incentivize affordable housing developments located in High Opportunity Areas o High Opportunity Areas: Neighborhoods that provide access to resources that improve chances at economic mobility o 2023: Map was updated to reflect newer data and metrics APPLICATION PROCESS •Funds available since 2018 and remain open until expended APPLICATION SUMMARY •2 applications received for requests of $5.35M o 515 Tower – Conversion Phase I - $2.65M o Fairmont Heights II - $2.7M HIGH OPPORTUNITY AREA APPLICATIONS OVERVIEW APPLICATIONS HIGH OPPORTUNITY AREA FUNDS OVERVIEW PROJECT DEVELOPER ADDRESS FUNDING REQUEST PRELIMINARY TERMS RESIDENTIAL UNITS PRIORITIES MET (WEIGHTED POINTS) 515 Tower – Conversion Phase 1 Perpetual Housing Fund 515 E 100 S Salt Lake City, UT 84102 $2,650,000 Construction to perm: 2% interest rate, 15-year term/am, cash flow repayments 96: 20@ ≤40% AMI, 76 @ 41- 60% AMI; includes studios, 1, 3, and 4 bedrooms. 10 Fairmont Heights II Lincoln Avenue Capital 2257 S 1100 E Salt Lake City, UT 84106 $2,700,000 Acquisition: 1% interest rate, 2- year term, balloon payment or conversion to permanent loan. Construction to perm: 16- year term, 40-year am, hard repayments 55: 27 @ ≤40% AMI, 19 @ 41- 60% AMI, 9@ 61- 80% AMI; includes 1 and 2 bedrooms. 6 $5,350,000 •RDA Finance Committee Recommendation: Fund full $2.65M Request for 515 Tower Conversion – Phase I •RDA Sustainable Development Policy Clarification FUNDS AVAILABLE •Total: $13.76M* o *$4.24M of RDA funds were combined with $9.52M of HUD HOME funds o Additional $1.665M in funds from previous HDLP applications may be available, subject to Board approval FY2023-24 COMPETITIVE HDLP NOFA OVERVIEW COMPETITIVE FUNDS CATEGORY AMOUNT RDA Housing Development Loan Program $4,241,714 HOME Program Income $6,939,710 HOME ARP Development $1,501,608 HOME Development Funds $726,291 HOME Community Housing Development Organization Funds $351,841 TOTAL: $13,761,164 APPLICATION PROCESS •Competitive Process •Applications Released: November 17, 2023 •Information Session: December 1, 2023 •Applications Due: January 3, 2024 APPLICATION SUMMARY •20 applications received •15 applications eligible, 5 applications ineligible for HDLP funding •$27,464,243 total eligible funding request FY2023-24 COMPETITIVE HDLP NOFA OVERVIEW MAP OF DEVELOPMENT: MAP 1 of 2 MAP OF DEVELOPMENT: MAP 2 of 2 THRESHOLDS REQUIREMENTS SUSTAINABILITY: Projects required to be designed to achieve a “Designed to Earn the Energy Star” Score of 90 or higher, contain no onsite fossil fuel combustion, and participate in the City’s Elevate Buildings program once the building is operating. AND ONE OF THE FOLLOWING: FAMILY -SIZED UNITS: At least 10% of the total residential units shall have 3+ bedrooms and shall be rent restricted to those earning 60% AMI. asd OR asd DEEPLY AFFORDABLE UNITS: At least 10% of the total residential units shall be restricted as affordable to households earning 40% AMI. PROJECT PRIORITIES PROJECT PRIORITIES: USED TO EVALUATE PROJECTS & PROVIDE INTEREST RATE REDUCTIONS •Family Housing •Target Populations •Homeownership •Missing Middle and Unique Housing Types •Sustainability •Transportation Opportunities •Neighborhood Safety •Expand Opportunity •Architecture and Urban Design •Commercial Vitality •Historic Preservation/Adaptive Reuse •Public Art PROJECT EVALUATION •Alignment with project priorities •Content & Quality of Application •Qualifications & Experience of Development Team •Content, Effectiveness & Financial Details Appropriateness •Project Readiness •Building & Site Design APPLICATION REVIEW APPLICATIONS OVERVIEW Application #1 2 3 4 5 6 7 Project Norbridge Court Bumper House New City Plaza Apartments 515 Tower - Conversion Phase I 2nd South Apartments The Catherine Phase 1 The Catherine Phase 2 Developer Artspace SMH Builders Housing Connect Perpetual Housing Fund Hermes Affordable Services, LLC 22 Communities 22 Communities Address 511 W 200 S 269 W Brooklyn Ave 1966 S 200 E 515 E 100 S 934-948 W 200 S 1881 W N Temple 1881 W N Temple Preliminary Terms 1%, 30/30 1.5%, 17/40 2.5%, 40/40 2%, 15/15 2%, 30/30 2%, 16/40 2%, 16/40 Repayment Type Hard Hard Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow RDA Request Amount $ 895,000 $3,000,000 $ 3,000,000 $895,000 $ 895,000 $2,650,000 $ 2,650,000 Funding Recommendations $895,000 $0 $895,000 $2,650,000***$2,420,000 $1,000,000 $134,323 Previous RDA Commitment $ - $ - $ - $ - $ - $ - $ - Project Cost $18,774,027 $60,701,174 $60,701,174 $89,615,717 $89,615,717 $39,231,648 $39,231,648 RDA % of Total Project Cost 4.8%4.9%1.0%6.8%8.1%3.6%3.5% RDA Requested Funds per Affordable Unit $14,435 $12,658 $10,033 $9,323 $8,524 $11,623 $18,403 RDA FC Recommended Funding per Affordable Unit $14,435 $0 $2,993 $27,604 $23,048 $4,386 $933 Tax Credits?Yes, 9%Yes, 4%Yes, 4%Yes, 9%Yes, 4%Applying, 4%Applying, 4% Affordable Units Breakdown 40% AMI & Below..32 24 224 20 16 - - 41-60% AMI..22 158 75 76 88 228 - 61%-80% AMI..8 55 - - - - 144 >81% AMI & Above. (Market) ..- - - - 1 - - Total. 62 237 299 96 105 228 144 Percent Affordable (60% AMI & below)87%77%100%100%99%100%0% Unit Mix Studio..- 182 - 40 36 80 45 1bd.. - 18 298 8 37 44 30 2bd.. 59 37 1 - 16 80 45 3bd.. 3 - - 32 16 24 24 4bd.. - - - 16 - - - Weighted Project .. Priority Score..8 3 5 10 8 4 6 APPLICATIONS OVERVIEW CONTINUED Application #8 9 10 11 12 13 14 15 TOTALProjectCitizens West 4 Fairmont Heights I Project Open 3 Pharos Apartments Book Cliffs Lodge Liberty Corner 9Ten West Alliance House 1805 Rebuild Developer Developed. By Women. & Ivan Carroll Lincoln Avenue Communities Perpetual Housing Fund Housing Authority of Salt Lake City Housing Authority of Salt Lake City Cowboy Partners Great Lakes Capital Alliance House & Cowboy Partners ..Address 515 W 300 N 2557 S 1100 E 529 W 400 N 915 W 200 N 1159 S W Temple 1265 S 300 W 910 W N Temple 1805 S Main St ..Preliminary Terms 1%, 15/30 1%, 2yr balloon or 16/40 1%, 18 month 2.5%, 15/40 2.5%, 15/30 2%, 40/40 2%, 16/40 2.5%, 40/40 ..Repayment Type Hard Balloon or convert to hard Balloon Payment Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow RDA Request Amount $3,000,000 $ 3,000,000 $2,524,802 $ 2,524,802 $1,569,441 $ 1,569,441 $400,000 $ 400,000 $ 28,973,486 Funding Recommendations $400,000 $1,000,000 $710,000 $880,000 $740,000 $4,500,000 $1,000,000 $500,000 $15,074,323 Previous RDA Commitment $ - $ - $ - $ - $1,000,000 $ - $ - $ - $1,000,000 Project Cost $37,177,859 $37,177,859 $69,452,555 $69,452,555 $45,194,612 $45,194,612 $25,514,260 $25,514,260 $752,549,677 RDA % of Total Project Cost 1.6%9.2%9.9%8.5%10.0%3.8%4.6%8.3% RDA Requested Funds per Affordable Unit $57,692 $54,545 $109,774 $74,259 $28,535 $7,847 $2,222 $25,000 RDA FC Recommended Funding per Affordable Unit $7,692 $18,182 $30,870 $25,882 $13,455 $22,500 $5,556 $31,250 Tax Credits?Yes, 9%Applying, 9%No No No Yes, 4%Yes, 4%No Affordable Units Breakdown 40% AMI & Below..10 27 - 5 9 44 27 16 454 41-60% AMI..40 19 - 19 20 78 138 - 961 61%-80% AMI..- 9 23 10 20 78 15 - 362 >81% AMI & Above.(Market) ..2 - - - 6 - - - 9 Total.. 52 55 23 34 55 200 180 16 1,786 Percent Affordable (60% AMI & below)96%84%0%71%53%61%92%100% Unit Mix Studio..10 - - - - - 165 - 558 1bd.. - 40 4 34 55 - 15 16 599 2bd.. 16 15 - - - 96 - - 365 3bd.. 20 - 12 - - 80 - - 211 4bd.. 6 - 7 - - 24 - - 53 Weighted Project .. Priority Score..10 6 12 5 5 10 7 7 PROJECT/APPLICANT ADDRESS WEIGHTED PROJECT PRIORITY SCORE FUNDING REQUEST RDA Committed Funds Possible Additional RDA Funds HOME Program Income HOME Development Fund HOME ARP Development TOTAL FUNDING RECOMMENDATION FUNDING RANKINGNorbridge Court 511 W 200 S 8 $895,000 $895,000 $895,000 7Artspace Bumper House 269 W Brooklyn Ave 3 $3,000,000 $0 14SMH Builders New City Plaza Apartments 1966 S 200 E 5 $895,000 $895,000 $895,000 5Housing Connect 515 Tower - Conversion Phase I 515 E 100 S 10 $2,650,000 $0***3Perpetual Housing Fund 2nd South Apartments 934-948 W 200 S 8 $3,000,000 $2,420,000 $2,420,000 6Hermes Affordable Services, LLC The Catherine Phase 1 1881 W N Temple 4 $2,524,802 $1,000,000 $1,000,000 1022 Communities The Catherine Phase 2 1881 W N Temple 6 $1,569,441 $134,323 $134,323 1022 Communities Citizens West 4 515 W 300 N 10 $400,000 $400,000 $400,000 2Developed. By Women. & Ivan Carroll Fairmont Heights I 2557 S 1100 E 6 $3,200,000 $1,000,000 $1,000,000 13Lincoln Avenue Communities Project Open 3 529 W 400 N 12 $710,000 $710,000 $710,000 1Perpetual Housing Fund Pharos Apartments 915 W 200 N 5 $880,000 $47,101 $726,291 $106,608 $880,000 12Housing Authority of Salt Lake City Book Cliffs Lodge 1159 S W Temple 5 $740,000 $740,000 $740,000 11Housing Authority of Salt Lake City Liberty Corner 1265 S 300 W 10 $4,500,000 $1,236,714 $1,530,677 $1,732,609 $4,500,000 4Cowboy Partners 9Ten West 910 W N Temple 7 $2,000,000 $1,000,000 $1,000,000 9Great Lakes Capital Alliance House 1805 Rebuild 1805 S Main St 7 $500,000 $500,000 $500,000 8Alliance House & Cowboy Partners TOTAL $27,464,243 $4,241,714 $1,665,000 $6,939,710 $726,291 $1,501,608 $15,074,323 FINANCE COMMITTEE RECOMMENDATION <40%41- 60% 61- 80% Market Rate 1 Project Open 3 - Homeownership D3 $710,000 $710,000 23 0 0 23 0 12 No IR: 1%. Term: 18 months. Repaymt: Balloon.49 2 Citizens West 4 D3 $400,000 $400,000 52 10 40 0 2 10 9%IR: 1%. Term: 15 years with 30 year amortization. Repaymt: Hard.41 3 515 Tower - Conversion Phase I - Recommended for High Opportunity NOFA funding D4 $2,650,000 $2,650,000 96 20 76 0 0 10 9%IR: 2%. Term: 15 years. Repaymt: Cash Flow.24 4 Liberty Corner D5 $4,500,000 $4,500,000 200 44 78 78 0 10 4%IR: 2%. Term: 40 years. Repaymt: Cash Flow.60 5 New City Plaza Apartments - Historic Preservation/ Adaptive Reuse D5 $895,000 $895,000 299 223 75 0 0 5 4%IR: 2.5%. Term: 40 years. Repaymt: Cash Flow.20 6 2nd South Apartments D2 $3,000,000 $2,420,000 105 16 88 0 1 8 4%IR: 2%. Term: 30 years. Repaymt: Cash Flow.28 7 Norbridge Court - Historic Preservation/ Adaptive Reuse D2 $895,000 $895,000 62 32 22 8 0 8 9%IR: 1%. Term: 30 years. Repaymt: Hard.12 8 Alliance House 1805 Rebuild D5 $500,000 $500,000 16 16 0 0 0 7 No IR: 2.5%. Term: 40 years. Repaymt: Cashflow.68 9 9Ten West D2 $2,000,000 $1,000,000 180 27 138 15 0 7 4%IR: 2%. Term: 16 years with 40 year amortization. Cash Flow.64 10 The Catherine Phase 1 D1 $2,524,802 $1,000,000 228 0 228 0 0 4 No (applying for 4%) IR: 2%. Term: 16 years with 40 year amortization. Repaymt: Cash Flow.33 10 The Catherine Phase 2 D1 $1,569,441 $134,323 144 0 144 0 0 6 No (applying for 4%) IR: 2%. Term: 16 years with 40 year amortization. Repaymt: Cash Flow.37 11 Book Cliffs Lodge D5 $740,000 $740,000 55 9 20 20 6 5 N/A IR: 2.5%. Term: 15 years with 30 year amortization. Repaymt: Cash Flow.56 12 Pharos Apartments D2 $880,000 $880,000 34 5 19 10 0 5 No IR: 2.5%. Term: 15 years with 40 year amortization. Repaymt: Cash Flow.52 13 Fairmont Heights I D7 $3,200,000 $1,000,000 55 27 19 9 0 6 No (applying for 9%) IR: 1%. Term: 2-year ballon or conversion to permanent, 16 years with 30 year amortization. Repaymt: Hard. 45 14 Bumper House D5 $3,000,000 $0 237 24 158 55 0 3 4%IR: 1.5%. Term: 17 years with 40 year amortization. Repaymt: Hard.16 Summary of RDA Finance Committee Recommended FY24 HDLP Funding. Weighted Priority Score Tax Credits Rec'd Preliminary terms Summary Page in Trans- mittal Units per AMI LevelRDA Finance Cmtee Ranking Project Funding Request Funding Recommend- ation Total Units Council District Funding Request $1,800,000 $300,000 $400,000 $800,000 $500,000 Saltair Requested loan for preconstruction design and soft costs Maven Flats Did not include family-sized and/or deeply affordable units Moda Griffin Did not include family-sized and/or deeply affordable units Palmer Court Redevelopment Requested loan for preconstruction design and soft costs Applications that Did Not Meet FY24 HDLP Eligibility Requirements. Project Basis for ineligibility Innovation Park Requested loan for "sleeping second mortgages" 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:February 13, 2024 RE: RESOLUTION: FUNDING ALLOCATION FOR GAP FINANCING FOR HIGH OPPORTUNITY AREAS ISSUE-AT-A-GLANCE The Board will consider funding allocations and preliminary terms for two affordable housing projects located in “high opportunity areas” through the RDA’s Housing Development Loan Program (HDLP). Together, the two projects requested $5.35 million in low interest loans, which exceeds the current allocation of $2.7 million for this type of project. The allocation of funds for “high opportunity areas” dates from 2017, when the Board authorized $4.5 million for projects located in neighborhoods that provide residents with improved chances at upward economic mobility, like good schools, public transit access, and health care facilities. RDA staff plans to transmit the remaining HDLP Notice of Funding Availability (NOFA) applications for discussion in the March meeting. The Board could decide on the high opportunity applications at the February or March RDA meetings. In summary, the two requests in high opportunity areas this year are: -515 Tower - Conversion Phase I at 515 East 100 South. The request is for $2,650,000 for 96 units of “shared-equity” affordable housing to be developed by the Perpetual Housing Fund of Utah. This developer also applied for competitive HDLP funding and would use any funds granted from either source for this project. -Fairmont Heights II at 2257 South 1100 East. The request is for $2,700,000 for affordable housing to be developed by Lincoln Avenue Capital. This developer also applied for $3.2 million from the general competitive HDLP funding for their Fairmont Heights 1 project, for a total of $5,900,000. On February 1, the RDA Finance Committee recommended fully funding the 515 Tower - Conversion Phase I. Item Schedule: Briefing: February 13, 2024 Set Date: N/A Public Hearing: N/A Potential Action: TBD Page | 2 Goal of the briefing: Discuss the two applications for HDLP funding in high opportunity areas and consider approving funds for one or both of the projects. BACKGROUND AND ADDITIONAL INFORMATION A. Project Descriptions. 1.515 Tower - Conversion Phase I. This phase of this project would involve the adaptive re-use of a former office building at 515 East 100 South. The RDA loan of $2,650,000 would help fund 96 units of affordable and deeply affordable units. One half of the total units (48) would have three or four bedrooms, with the remaining units mostly studios. The project received 9% Federal LIHTC housing credits. The interest rate would be 2% for this 15-year cash-flow loan. The Board priorities met with this project would be Family Housing, Target Populations (Deeply Affordable Units), Expand Opportunity, Adaptive Re-use, Transportation Opportunities, Commercial Vitality. See additional information on Sources and Uses of funding for this project below. This project would be the first to be developed through the recently created Perpetual Housing Fund of Utah, which purchased this property with funded with a $10 million allocation from the City’s American Rescue Act Plan (ARPA) funds. Under a “shared-equity” model, 75% of any profits or appreciation for this phase of the development would be shared among the residents through a tenant wealth-building program. This developer also applied for competitive HDLP funding and stated that it would use any funds granted from either source for this project. 2.Fairmont Heights II. This project would use $2,700,000 of HDLP funds for affordable senior housing at 2257 South 1100 East. Fifty-five one- and two-bedroom units would be constructed, including five units reserved for people who have experienced chronic homelessness, five units for mobility impaired individuals, and nine units for people with disabilities. The interest rate would be 1% for this two-year acquisition loan with a balloon payment or conversion at the end of that period. The Board priorities met with this project would be Target Populations (Deeply Affordable Units), Expand Opportunity, Transportation Opportunities, Architecture and Urban Design. See additional information on Sources and Uses of funding for this project below. The developer, Lincoln Avenue Capital seeks an acquisition-to-permanent financing loan, which means initial funds would be used to buy the property. The developer would need to obtain tax credits, financing, and building approvals within two years, or would be required to repay that loan. If the developer succeeds, the acquisition loan could be converted to a long-term (permanent) loan The developer also applied for $3.2 million from competitive HDLP funding for their Fairmont Heights 1 project, which is on the same property, for a total of $5.9 million. Page | 3 B. Background. 1.Housing Development Loan Program (HDLP) Policy. The HDLP provides low-interest loans to incentivize the development and preservation of affordable housing in Salt Lake City. Each year, RDA staff presents a Housing Development Funding Strategy that proposes funding priorities and allocations, as well as projecting revenues for the upcoming fiscal year. The process is designed to provide flexibility for meeting current needs, leverage current opportunities, coordinate with other City resources, and shift funding priorities to reflect evolving plans and policies. 2.Housing Priorities for Fiscal Year 2024. Applicants are required to meet the requirements laid out in the RDA’s HDLP Guidelines and Application Handbook, as well as the annual housing priorities set by the Board. For FY24, at least one of the following had to be met to qualify for consideration for funding: •Deeply Affordable Housing Threshold Requirement: at least 10% of the total residential units shall be income and rent restricted to households earning 40% of the area median income AND deed restricted for both rent and income •Family Housing Threshold Requirement: a minimum of 10% of the total residential units shall have three or more bedrooms and shall be income and rent restricted to those earning 60% AMI and below, with AMI limits as established by HUD. 3.High Opportunity Areas. In 2017, the RDA Board allocated $4.5 million to incentivize the development and preservation of affordable housing located within High Opportunity Areas. The High Opportunity Area map was updated in 2023, to reflect newer data and metrics, which resulted in an expanded area that qualifies for these funds. POLICY QUESTIONS 1. Does the Board wish to be informed of the RDA staff recommendations for other HDLP loans before making decisions on these two high-opportunity area projects? Page | 4 2. If the Board chooses to fully fund the 515 Tower - Conversion Phase I at the requested amount of $2,650,000, would it like to consider moving the $50,000 to the regular HDLP funding balance to help fund other affordable housing projects? 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 26, 2024 PREPARED BY: Tracy Tran, Senior Project Manager RE: Consideration and Adoption of a Resolution Approving Funding Allocation for Gap Financing through a Notice of Funding Availability for High Opportunity Areas through the Housing Development Loan Program REQUESTED ACTION: Consider approving affordable housing funding allocations as selected through a Notice of Funding Availability for High Opportunity Areas through the Housing Development Loan Program POLICY ITEM: Affordable Housing – Housing Development Loan Program BUDGET IMPACTS: $2,7000,000 of RDA funds set aside for affordable housing located within High Opportunity Areas EXECUTIVE SUMMARY: In 2017, the Redevelopment Agency of Salt Lake City (“RDA”) Board of Directors (“Board”) allocated $4.5 million to incentivize the development and preservation of affordable housing located within High Opportunity Areas, which are neighborhoods that provide access to resources that improve chances at upward economic mobility. In 2019, the RDA Board received and approved a $1.8 million loan application for these funds. The Board has directed staff to continue to solicit applications for projects within High Opportunity Areas on an ongoing basis until funds are expended. In late 2023, the High Opportunity Area map was updated to reflect newer data and metrics, which resulted in an expanded area that qualifies for these funds. $2.7 million remains in High Opportunity Area Funds (“HOAF”) through the Housing Development Loan Program (“HDLP”). Although the HOAF have not been advertised in a competitive manner like the RDA’s annual competitive HDLP Notice of Funding Availability (NOFA), RDA staff received two applications on January 3, 2024, with total requests of $5.35 million for the remaining $2.7 million. Guiding Policy The HOAF are being administered pursuant to the Housing Allocation Funds Policy (“Funds Policy”), resolution R-1-2022, and the Housing Development Loan Program Policy (“HDLP Policy”), resolution R-2-2022, which replaced the Affordable Housing Notice of Funding Availability Policy, resolution R-17-2018. 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 1 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 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. The HDLP provides low-cost financial assistance to incentivize the development and preservation of affordable housing within Salt Lake City municipal boundaries. The HDLP Policy provides a centralized application, underwriting, and approval process regardless of the fund source and also features: •Funding allocations and priorities determined on an annual basis. The funding priorities for these funds were based on the FY2023-24 Annual Housing Funding Priorities. •The transparent administration of funds through a Notice of Funding Availability (NOFA) process. Revenue from various funds may be combined into a consolidated NOFA or a NOFA may be issued for a specific funding source. NOFAs could 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. •A standardized process for approving applications and a uniform set of underwriting policies. FY2023-2024 Annual Housing Priorities In April 2023, the Board adopted the FY2023-2024 Annual Housing Funding Priorities. These priorities included Threshold Requirements for the HDLP, which requires developments to meet at least one of the following to qualify for funding in addition to threshold requirements laid out in the HOAF HDLP Guidelines + Application Handbook: •Deeply Affordable Housing Threshold Requirement o Policy Objective: Expand the availability of units for extremely low-income households, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. o HDLP Implementation: To meet the RDA’s deeply affordable threshold, at least 10% of the total residential units shall be income and rent restricted to households earning 40% of the area median income (“AMI”) and below as established by the U.S. Department of Housing and Urban Development (“HUD”). These units will be rent and income deed restricted. •Family Housing Threshold Requirement o Policy Objective: 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. o HDLP Implementation: For a development to qualify for these funds, a minimum of 10% of the total residential units shall have three or more bedrooms and shall be income and rent restricted to those earning 60% AMI and below, with AMI limits as established by HUD. 2 Application Submissions Pursuant to the policies, the RDA administered a transparent application process for the $2.7 million in HOAF. RDA staff received two (2) loan applications for funding totaling $5.35 million. Please refer to Attachment A: Applications Overview and Attachment B: Project Summary Sheets for additional information. The RDA has reviewed the application submittals, and the RDA Finance Committee (“Committee”) will provide recommended applications for funding. This memorandum includes a summary of application submittals and the Committee’s recommendations for the Board’s consideration and determination of funding allocations will be provided after the February 1 meeting. ANALYSIS & ISSUES: Below is an overview of the HOAF HDLP application process: I. Application Process In 2018, the RDA issued a NOFA to solicit applications for approximately $4.5 million available for affordable housing projects located within High Opportunity Areas or areas that provide resources that improve chances at upward economic mobility. In 2019, the RDA Board received and approved a $1.8 million loan application for these funds. The remaining $2.7 million in HOAF have been open and continued to be advertised. In November 2023, the High Opportunity Area map was updated to reflect newer data and metrics, which resulted in an expanded area that qualifies for these funds. A copy of HOAF Guidelines + Application Handbook that applicants used to apply can be found here. II.Project Review As part of the application review process, RDA staff analyzed applications according to the HDLP Policy’s eligibility requirements and project priorities, which can be found in Attachment C: Project Priorities and Interest Rate Reductions. The housing priorities include the ability for an applicant to receive an interest rate reduction if priorities are met. All HDLP loans will be available to selected projects for acquisition, construction, and/or development uses. The RDA recognizes that the construction sources and uses for projects may not be the same as the permanent sources and uses and that the amount of debt that the HDLP loans are subordinated to may vary depending on the status of the projects. The RDA Finance Committee will review and evaluate the applications and provide a recommendation to the RDA Board. III. Funding Allocations, Conditional Commitment, and Loan Closing Pursuant to the Policy, the Board will make the final determination of applications to fund. Subsequently, the RDA will issue a conditional commitment letter to those applications that are selected for funding. The conditional commitment letter between the RDA and the applicant will contain the covenants, terms and conditions upon which the RDA will provide financial assistance to the proposed project once financial, legal, regulatory, and design approvals are obtained. Prior to closing on a loan, RDA staff will ensure that the project is financially viable, underwriting standards are met, and the use of public funds is necessary for the project to succeed. 3 RDA STAFF REVIEW: As part of the initial application review process, RDA Staff verified that all applications meet the Threshold Requirements laid out in the HOAF Guidelines + Application Handbook. RDA staff affirms that all applications meet or will meet the Threshold Requirements. Below is an overview of the submitted applications: PROJECT DEVELOPER ADDRESS FUNDING REQUEST 1.515 Tower - Conversion Phase I* Perpetual Housing Fund of Utah 515 East 100 South Salt Lake City, UT 84102 $2,650,000 2.Fairmont Heights II**Lincoln Avenue Capital 2257 South 1100 East Salt Lake City, UT 84106 $2,700,000 TOTAL FUNDING REQUEST: $5,350,000 AVAILABLE FUNDING: $2,700,000 *This project also applied for funding through the competitive HDLP. They are seeking a total of $2,650,000 between the two applications. If they receive the full amount in this process, they will not need the amount within the competitive HDLP. **This project also applied for funding through the competitive HDLP. They are seeking a total of $5,900,000 between the two applications. Additional details of the HOAF HDLP applications can be found in Attachment A: Applications Overview and Attachment B: Project Summary Sheets. RDA FINANCE COMMITTEE RECOMMENDATION: The RDA Finance Committee will review the applications and provide their funding recommendation at their February 1, 2024 meeting. Refer to Attachment D: RDA Finance Committee Funding Recommendation for recommendation detail. PREVIOUS BOARD ACTION: •November 14, 2023: RDA Staff briefed the Board on the updated data set, methodology, and map for High Opportunity Areas. •April 12, 2023: The Board adopted the Affordable Housing Funding Priorities for Fiscal Year 2023-24. •March 8, 2022: The Board adopted revisions to the Housing Development Loan Program Policy to direct review of applications to the RDA Finance Committee. •February 9, 2022: The Board adopted revisions to the Housing Allocation Funds Policy. •March 2021: The Board adopted the Housing Development Loan Program Policy, which repealed the Affordable Housing Notice of Funding Availability Policy. •February 2021: The Board adopted the Housing Allocation Funds Policy. •May 2020: The Board adopted Resolution R-10-2020, which amended the loan terms to structure the loan into two phases with conditions. 4 • December 2019: The Board adopted Resolution R-25-2019, which allocated $1,800,000 and established a conditional commitment to the Community Development Corporation of Utah (CDCU) for an affordable housing project located within a high opportunity area. • June 2018: The Board adopted policy guidelines and funding priorities for the NOFA, Resolution R-17-2018 (Affordable Housing Notice of Funding Availability Policy). • December 2017: The Board adopted the third amendment for FY 2017-2018, which includes $4,500,000 for a high opportunity area NOFA. ATTACHMENTS: A. Applications Overview B. Project Summary Sheets C. Project Priorities and Interest Rate Reductions D. RDA Finance Committee Funding Recommendation E. High Opportunity Area Funding Allocation Resolution 5 Project 515 Tower ‐ Conversion Phase I Fairmont Heights II Developer Perpetual Housing Fund Lincoln Avenue Capital TOTAL Address 515 E 100 S 2257 S 1100 E RDA Loan Request RDA Request 2,650,000$ 2,700,000$ 5,350,000$ Total Project Cost 39,231,648$ 34,009,242$ RDA Loan to Cost 6.8%7.9%7.3%Average Acquisition Loan Interest Rate (w/ project priority deductions)n/a 1.0%1.0%Average Term n/a 2 Amortization n/a TBD Repayment Type n/a Balloon or conversion to permanent loan Construction to Permanent Loan Interest Rate (w/ project priority deductions)2.0%1.0% Term 15 16 Amortization 15 40 Repayment Type Cash Flow Hard Financial Metrics Deferred Developer Fee %22%40%31%Average Tax Credits Yes, 9% reserved Yes, 9%, applying for 2025 Cost per Unit 408,663$ 618,350$ 513,506$ Average Cost per SF 458$ 1,085$ 771$ Average Threshold Requirements Family-Sized Affordable or Deeply Affordable Units Both Deeply Affordable Energy Star Score 90+Cond. of Approval Cond. of Approval 100% Electric Cond. of Approval Cond. of Approval Housing Unit Details 40% AMI and Below Studio 15 - 15 1bd 2 18 20 2bd - 9 9 3bd 2 - 2 4bd 1 - 1 Total 40% AMI & Below 20 27 47 41%-60% AMI Studio 25 - 25 1bd 6 15 21 2bd - 4 4 3bd 30 - 30 4bd 15 - 15 Total 41%-60% AMI 76 19 95 61%-80% AMI Studio - - - 1bd - 7 7 2bd - 2 2 3bd - - - 4bd - - - Total 61%-80% AMI - 9 9 Total Residential Units Studio 40 - 40 1bd 8 40 48 2bd - 15 15 3bd 32 - 32 4bd 16 - 16 Total of the Total Residential Units 96 55 151 Priorities & Interest Rate Reductions Family Housing 3 Target Populations 3 3 Transportation Opportunities 1 1 Expand Opportunity 1 1 Architecture and Urban Design 1 Commercial Vitality 1 Historic Preservation/Adaptive Reuse 1 NOFA Ranking Weight Total 10 6 8 Average Priorities: The four Funding Priorities determined by the FY2023-2024 Annual Housing Funding Priorities include: Family Housing, Target Populations, Homeownership, and Missing Middle/Unique Housing Type. These receive a weighted ranking of 3 points each as compared to other priorities which receive 1 ranking point. Interest Rate Reductions: Projects receive a 0.5% interest rate reduction for each included priority. Sustainability allows for a 1% or 2% reduction. The maximum reduction per development application is 2%. ATTACHMENT A: APPLICATIONS OVERVIEW 6 ATTACHMENT B: PROJECT SUMMARY SHEETS 7 PROJECT NAME: 515 Tower - Conversion Phase I ADDRESS: 515 E 100 S OVERVIEW Developer Perpetual Housing Fund of Utah LLC Request Type HDLP Loan – High Opportunity Area Project Type Adaptive Reuse Existing Land Use Office RDA FUNDING REQUEST Funding Request $2,650,000 Total Project Cost $39,231,648 RDA Loan to Cost 6.75% PROPOSED TERMS Interest Rate 2% Term, Amortization 15 Yr Repayment Terms Cash Flow Lien Priority Subordinate to permanent debt HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Family-Sized Units and Deeply Affordable Units 90+ Energy Star Score Yes 100% Electric Yes Priorities Met Family Housing, Target Populations, Expand Opportunity, Historic Preservation/Adaptive Reuse, Transportation Opportunities, Commercial Vitality TIMELINE Construction Start May 1, 2024 Construction Completion December 31, 2024 LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Yes Tax Credits Reserved (Y/N) Yes, 9%, 2023 1 The Developer is committing an additional $625,000 of developer fee from the project to create an equity line of credit so that residents can access their equity prior to a refinance or sale event, for a total of $1,125,000 deferred developer fee. HOUSING UNITS Bedroom Count Total Units Market Rate 41-60% AMI <40% AMI Studio 40 - 25 15 1 Bed 8 - 6 2 2 Bed - - - - 3 Bed 32 - 30 2 4 Bed 16 - 15 1 Total 96 - 76 20 CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $16,960,000 PERMANENT SOURCES Source Amount % of Total Senior Debt $6,508,958 16.7% RDA Loan $2,650,000 6.8% OLWHLF $1,000,000 2.6% Utility Rebates $76,800 0.2% LIHTC Equity $27,696,083 71% SLCO ARPA Grant $598,584 1.5% Deferred Fee1 $500,000 1.3% Total $39,030,425 100% USES Use Amount % of Cost Land $16,000,000 41.0% Hard Costs $15,466,320 39.6% Soft Costs $1,097,907 2.8% Developer Fee $2,249,922 5.8% Financing Expense $1,921,418 4.9% Contingency $1,686,134 4.3% Reserves $608,724 1.6% Total $39,030,425 100% 8 PROJECT NAME: 515 Tower - Conversion Phase I ADDRESS: 515 E 100 S RDA APPLICATION NOTES The RDA, through the City’s American Rescue Act Plan (ARPA) funds, allocated $10,000,000 to the Perpetual Housing Fund of Utah, LLC to purchase this property for an affordable housing development with a tenant wealth building program. This $10,000,000 will be used for the purchase of the property that would then allow PHF to develop additional projects that carry out their goals to provide 1,000 affordable homes that will help families and individuals build wealth. This is a unique model in which the developer will be contributing their own profits, which they will share with the tenants of the building. This development also applied for funding through the competitive HDLP, which will be in front of the RDA Finance Committee at a future date. The 515 Tower needs a total of $2,650,000 and if the full amount is received through this round of high opportunity area funding, they will not need to request funds through the competitive HDLP process. PROJECT SUMMARY From Developer: 515 Conversion Phase I a mixed-income, sustainable, adaptive-reuse project located on the East side of Salt Lake City. The project is part of multi-phase, mixed-use project on the site and will be a beacon of affordable housing in the rapidly unattainable east side of Salt Lake City. The overall project is planned to include a mixed-income daycare, local retailers, and impact-focused commercial and co-working space. This project is being developed by Perpetual Housing Fund and all 96 units in this phase will feature a shared-equity model - sharing 75% of the phase's profits and appreciation with the residents living here. 515 will incorporate an array of amenities that will benefit the lives of its residents including a fitness center, a clubhouse, a Greenbike station on site (with annual passes included at no charge), indoor bike storage, a bike-repair station, and shared outdoor space. Located within walking distance of the project is an elementary school, a core bus route, and a public park. The project will also be fully electric, contributing to better air-quality in the area and improving the health and wellbeing of its tenants. The units will also be built within the criteria for Enterprise Green Communities 2020. DEVELOPER SUMMARY The project is being developed by Perpetual Housing Fund with Giv Communities as a development consultant. The team has successfully developed or consulted on over a thousand affordable housing units utilizing the Low- Income Housing Tax Credit, OWHLF, and SLC loan programs along the Wasatch Front. Recent affordable housing projects by the development team include: Exchange - Salt Lake City Project Open Phases 1 and 2 - Salt Lake City Citizens West Phase I - Salt Lake City Denver Street Apartments - Salt Lake City Pamela's Place - Salt Lake City Imagine Jefferson - Ogden Startup Crossing - Provo Harris Village Shelter and Permanent Supportive Housing - Tooele 9 PROJECT NAME: 515 Tower - Conversion Phase I ADDRESS: 515 E 100 S SITE MAP PROJECT RENDERINGS 10 PROJECT NAME: 515 Tower - Conversion Phase I ADDRESS: 515 E 100 S 11 PROJECT NAME: Fairmont Heights II ADDRESS: 2257 S 1100 E OVERVIEW Developer Lincoln Avenue Capital and Housing Authority of Salt Lake City Request Type HDLP Loan – High Opportunity Area Project Type New Construction Existing Land Use Office RDA FUNDING REQUEST Funding Request $2,700,000 Total Project Cost $34,009,242 RDA Loan to Cost 7.9% PROPOSED TERMS Interest Rate 1% Term, Amortization Acq: 2 Yr, Balloon or conversion Perm: 16 Yr, 40 Yr Repayment Terms Hard for construction to perm Lien Priority Subordinate to permanent debt HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Deeply Affordable Units 90+ Energy Star Score Yes 100% Electric Yes Priorities Met Target Populations, Expand Opportunity, Transportation Opportunities, Architecture and Urban Design TIMELINE Acquisition May 1, 2024 Construction Start 2025 HOUSING UNITS Bedroom Count Total Units Market Rate 41-60% AMI <40% AMI Studio - - - - 1 Bed 40 7 15 18 2 Bed 15 2 4 9 3 Bed - - - - 4 Bed - - - - Total 55 9 19 27 LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Yes, 9% Tax Credits Reserved (Y/N) No ACQUISITION SOURCES Source Amount % of Total RDA -HDLP Competitive $3,200,000 45.1% RDA High Opp Funds $2,700,000 38.1% HASLC Cash $800,000 11.3% LAC Cash $390,000 5.5% Total $7,090,000 100% ACQUISITION USES Source Amount % of Costs Acquisition $7,000,000 98.7% Insurance $40,000 0.6% Closing Costs $50,000 0.7% Total $7,090,000 100% CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $21,767,665 PERMANENT SOURCES Source Amount % of Total Senior Debt $3,790,000 11.1% RDA Loan $2,700,000 7.9% Utility Rebates $142,500 .42% LIHTC Equity $26,147,384 76.9% Deferred Fee $1,229,257 3.6% GP Capital Contribution $100 0.0% Total $34,009,242 100% PERMANENT USES Use Amount % of Cost Land $3,500,000 10.3% Hard Costs $23,702,904 69.7% Soft Costs $898,000 2.6% Tax Credit Fees $308,375 .9% Developer Fee $3,091,512 9.1% Financing Expense & Reserves $2,146,018 6.3% Escrow & Reserves $362,432 1.1% Total $34,009,242 100% 12 PROJECT NAME: Fairmont Heights II ADDRESS: 2257 S 1100 E RDA APPLICATION NOTES This project also applied for $3,200,000 for their Fairmont Heights I project through the competitive HDLP process. Both phases of the project will be located on the same parcel with Phase 1 being built first and Phase 2 to follow. The developer is seeking an acquisition to permanent financing loan, which means initial funds would be used to buy the property, but the developer would need to obtain tax credits, financing, and building approvals within 2 years. If successful, they would be able to convert their acquisition loan to a longer-term permanent financing loan. If they are not successful, they will be required to pay back the loan at the end of the acquisition loan term. This project is seeking funding from both sources of funds. PROJECT SUMMARY From Developer: This is Phase II of a two (2) phase project. Phase II is 55 units with 40 1 bed/1 bath units at 710 sf/unit, and 15 2 bed/2 bath units at 1038 sf/unit, with an emphasis on deeply affordable senior housing. The structure will be a 7-story midrise building comprised of a 2-story parking deck and a 5-story wooden structure containing the housing. The site is located near the Fairmont stop on the TRAX S-Line. 5 units will be set aside for the chronically homeless, 5 units for mobility impaired individuals, and 9 units for the disabled. The site presents an incredible opportunity to tie into the neighborhood fabric and locate housing near transit, employment, recreation, and services. Both phases are designed to mirror the surrounding neighborhood. The project transitions into the neighborhood using elements in both the contemporary form of the building and the materials that clad its skin. The space on the ground floor along Simpson Avenue and 1100 S will activate the building to the public and bring the design into the neighborhood. The pedestrian nature of the activities within and the rhythm of the living units help the project feel comfortable. DEVELOPER SUMMARY From Developer: Lincoln Avenue Communities was founded with the mission to expand access to high-quality, affordable homes for families, individuals, and seniors. This work is more important than ever amid historic inflation and a nationwide housing affordability crisis that have weighed heavily on communities across the country. These complex challenges have inspired us to continue developing innovative housing solutions that embody the bold and creative spirit of our growing company. Over the past year, we’ve reaffirmed our commitment to preserve and create thousands of affordable housing units, and we are excited to have recently broken ground on several ground-up developments, adding much-needed units to communities across the country. Today, we’re proud that more than 50,000 residents at 119 properties across 22 states call an LAC community their home. We’ve maintained a resident-first approach across our portfolio, connecting families, individuals, and seniors with local organizations, health resources, and opportunities to further their educational and career goals. 13 PROJECT NAME: Fairmont Heights II ADDRESS: 2257 S 1100 E SITE MAP PROJECT RENDERINGS 14 PROJECT NAME: Fairmont Heights II ADDRESS: 2257 S 1100 E 15 ATTACHMENT C: PROJECT PRIORITIES AND INTEREST RATE REDUCTIONS Project priority criteria will be utilized to evaluate applications as well as provide for interest rate reductions. CATEGORY POLICY OBJECTIVE BENCHMARK NOFA RANKIN G WEIGHT * 0.5% INTEREST RATE REDUCTION ** 1 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 Project provides at least 15%*** of the total units as 3+ bedroom units AND includes family-oriented community amenities, as approved by RDA Staff. 3 X 2 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 Project sets aside at least 15%*** of the units for extremely low-income households (40% AMI or less) and/or special populations in partnership with a governmental or nonprofit entity 3 X 3 Homeownership Create opportunities for those who have historically rented in the community to build wealth and establish permanent roots through homeownership Project is a for-sale product that will be sold to income qualified individuals/families 3 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 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) 3 X 16 5 Sustainability Achieve green building and energy conservation standards to lower housing expenses, conserve resources, and promote resiliency Projects must be built to Off- Site Net Zero or On-Site Net Zero standard as described in the RDA’s Sustainable Development Policy Resolution. 1 X**** 6 Transportation Opportunities Promote a multimodal transportation network and ensure convenient and equitable access to a variety of transportation options Projects must meet two of the following: •Includes a car sharing, bike sharing, or transit pass program that is widely available to employees/ residents •Includes a commercial project that includes employee shower, locker, and bicycle facilities •Is located within 1/3 mile walking distance of a TRAX station or S-Line station •Implements reduced parking strategies without negatively impacting the neighborhood •Incorporates majority of parking within a primary structure to minimize the need for a surface parking lot 1 X 7 Neighborhood Safety Utilize the development of housing to reduce the number of vacant and distressed buildings and lots to reduce crime and return land to a productive use Projects are located within an active RDA project area, refer to Attachment B: RDA Project Area Map and incorporate documented Crime Prevention through Environmental Design (CPTED) principles. RDA staff shall provide final review and approval. RDA staff may require Developer to provide approval from a certified professional. 1 X 8 Expand Opportunity Provide for Neighborhoods of Opportunity by promoting the economic diversity of the housing stock within neighborhoods Projects are located within a High Opportunity Area, which is defined as an area that provides conditions that expand a person’s likelihood for social mobility as identified through an 1 X 17 analysis of quality-of-life indicators. Refer to Attachment A: High Opportunity Area Map and Table 9 Architecture & Urban Design Encourage housing that is high-quality, enduring, and that contributes to neighborhood context and livability through architectural and urban design best practices Buildings shall include an active ground floor use, significant ground floor glass, durable building materials and engaging building entrances as determined by RDA staff 1 X 10 Commercial Vitality Foster a mix of land uses and unique neighborhood business districts that adequately meet the local community’s needs Projects are mixed-use and establish commercial spaces within the development that are lacking and desired. These spaces shall be open to the public and shall not be spaces that are exclusive to the development 1 X 11 Historic Preservation /Adaptive Reuse Encourage the preservation and/or reuse of buildings to preserve the character of neighborhoods Project acknowledges a neighborhood’s history and maintain its unique character through preservation, rehabilitation, or repurposing of historic or underutilized structures 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 Project contributes at least 1.5% of the RDA contribution towards the installation of art onsite or towards the RDA art fund as outlined in the RDA Art Policy 1 X *Note: NOFA Ranking Weight: Uses a number (the weight) between 1 and 3 to assess the importance of the funding priority, with 1 being of lower importance and 3 being of the highest importance. **Note: 0.5% Interest Rate Reductions: While 12 interest rate reductions are available, interest rates can be reduced by a maximum of 2.0%. Please see Attachment B for applicable standard loan terms and conditions. ***Note: Between the two threshold requirements laid out in Section 3.7, if a project includes both family housing units and deeply affordable units in accordance with this section, the project may receive the interest rate reduction by meeting the second threshold requirement at a percentage of 10% instead of 15%. ****Note: Sustainability Interest Rate Reduction: As per the RDA’s Sustainable Development Policy, projects built to an Off- Site Net Zero standard are eligible for a 1% interest rate reduction and projects built to an On-Site Net Zero standard are eligible for a 2% interest rate reduction. 18 PROJECT/APPLICANT ADDRESS PROJECT PRIORITIES/INTEREST RATE REDUCTION AND WEIGHTED PRIORITY SCORE** FUNDING REQUEST PRELIMINARY TERMS* HDLP High Opportunity Funds: $2,700,000 TOTAL $5,350,000 $2,650,000 Total Funds:2,700,000$ Recommended Funding: $ 2,650,000 Remaining Funds:$ 50,000 RDA FINANCE COMMITTEE FUNDING RECOMMENDATIONS 515 Tower - Conversion Phase I - Perpetual Housing Fund 515 E 100 S Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Expand Opportunity: 1 Commercial Vitality: 1 Historic Preservation/Adaptive Reuse: 1 TOTAL: 10 $2,650,000 2% interest rate, 15-year term, 15-year amortization, cash flow repayments $2,650,000 Fairmont Heights Phase II - Lincoln Avenue Capital and Housing Authority of Salt Lake City 2257 S 1100 E Target Populations: 3 Transportation Opportunities: 1 Expand Opportunity: 1 Architecture and Urban Design: 1 TOTAL: 6 $2,700,000 Acquisition: 1% interest rate, 2- year term, balloon payment or conversion to permanent loan. Construction to permanent: 16- year term, 40-year amortization, hard repayments *Final Terms shall comply with the requirements, standard loan terms and conditions, interest-rate reductions, and all other details laid out within the High Opportunity Area Housing Development Loan Program (HDLP) Guidelines (updated November 2023). Changes to repayment type may occur (hard repayment versus cash flow repayment) and shall be based on requirements listed in the HDLP Guidelines or if required by a senior lender. Changes in repayment type will cause a change in the base interest rate. Repayment priority and lien position shall be based on the size of the loans. Funds may be disbursed in a lump sum if required by senior lenders. **Projects receive a 0.5% interest rate reduction for each included priority. Sustainability allows for a 1% or 2% reduction. The maximum reduction per development is 2%. The interest rate is calculated as follows: Base Interest Rate minus (-) Interest Rate Reductions (up to 2%) = proposed interest rate; Base interest rate shall be locked within a month of closing. Projects shall maintain project priorities and the same weighted score at closing. Deviation from project priorites met may require Board approval. Attachment D: RDA Finance Committee Funding Recommendation 19 Attachment E: High Opportunity Area Funding Allocation Resolution 20 1 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ Housing Development Loan Program (HDLP) Funding Allocation for High Opportunity Area Affordable Housing RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY APPROVING CITYWIDE AFFORDABLE HOUSING PROJECT FUNDING ALLOCATIONS. WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) was created to transact the business and exercise the powers provided for in the Utah Community Reinvestment Agency Act (the “Act”). WHEREAS, the Act provides that tax increment funds may be used for the purpose of increasing the affordable housing supply within the boundaries of Salt Lake City. WHEREAS, pursuant to a motion adopted by the RDA Board of Directors (the “Board”) on December 5, 2017, the Board set aside $4,500,000 to be dedicated to funding for affordable housing in areas of high opportunity (the “High Opportunity Funds”). WHEREAS, the High Opportunity Funds were released for allocation pursuant to the Affordable Housing Notice of Funding Availability Policy (“NOFA Policy”), passed by the Board as Resolution R-17-2018. WHEREAS, the Board subsequently approved Resolution R-25-2019, which allocated $1,800,000 of the High Opportunity Funds to Community Development Corporation of Utah for affordable housing in a high opportunity area, leaving $2,700,000 of High Opportunity Funds to allocate to additional projects. WHEREAS, the Board approved the Housing Funds Allocation Policy (“Funds Policy”), Resolution R-1-2022, which establishes policies with respect to dedicating and directing resources for the development and preservation of housing based on funding source and the Housing Development Loan Program Policy (“HDLP Policy”), Resolution R-2-2022, which centralizes the application, underwriting, and approval process across all funding sources identified in the Funds Policy. The HDLP Policy repealed and replaced the NOFA Policy. WHEREAS, through a Notice of Funding Availability (“NOFA”), the RDA administered a loan application and review process pursuant to the HDLP Policy and the RDA’s Housing Funding Priorities for Fiscal Year 2023-2024 set forth in R-8-2023 (“Funding Priorities”) that resulted in two requests for funding totaling $5,350,000. 21 2 WHEREAS, on February 1, 2024, the RDA’s Finance Committee (“Finance Committee”) reviewed the HDLP applications and recommended funding allocations and preliminary terms for the remaining High Opportunity Funds, as further described in Exhibit A. WHEREAS, based on the Finance Committee’s recommendations, RDA staff recommends that the Board approve the funding allocations and preliminary terms described in Exhibit A. WHEREAS, following the Board’s approval of the funding allocations and preliminary terms as set forth on Exhibit B, the RDA shall provide a 24-month conditional commitment period during which the approved applicant shall have the opportunity to obtain needed financial, legal, and regulatory approvals, as well as satisfy other conditions determined by the RDA, to finalize the loan terms. WHEREAS, pursuant to the HDLP Policy, applicants that successfully meet the conditions of the conditional commitment shall be invited to execute a Letter of Commitment to finalize the loan terms, subject to a set of conditions precedent to closing of the loan. NOW THEREFORE, BE IT RESOLVED BY THE BOARD that it approves the funding allocations and preliminary terms as further described in Exhibit B, subject to revisions that do not materially affect the rights and obligations of the RDA hereunder. For approved applicants that successfully meet the required conditions, the Board authorizes the Executive Director to negotiate and execute the conditional commitment letter, the Letter of Commitment, the loan agreements, and other relevant documents consistent with the funding allocations and preliminary terms contained on Exhibit B and incorporating such other terms and conditions as recommended by the City Attorney’s office. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this _______ day of February 2024. ________________________________ Alejandro Puy, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Sara Montoya Date:____________________________ The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. January 26, 2024 22 3 ________________________________ Erin Mendenhall, Executive Director Attest: ________________________ City Recorder 23 PROJECT/APPLICANT ADDRESS PROJECT PRIORITIES/INTEREST RATE REDUCTION AND WEIGHTED PRIORITY SCORE** FUNDING REQUEST PRELIMINARY TERMS* HDLP High Opportunity Funds: $2,700,000 TOTAL $5,350,000 $2,650,000 Total Funds:$ 2,700,000 Recommended Funding: $ 2,650,000 Remaining Funds:$ 50,000 RDA FINANCE COMMITTEE FUNDING RECOMMENDATIONS 515 Tower - Conversion Phase I - Perpetual Housing Fund 515 E 100 S Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Expand Opportunity: 1 Commercial Vitality: 1 Historic Preservation/Adaptive Reuse: 1 TOTAL: 10 $2,650,000 2% interest rate, 15-year term, 15-year amortization, cash flow repayments $2,650,000 Fairmont Heights Phase II - Lincoln Avenue Capital and Housing Authority of Salt Lake City 2257 S 1100 E Target Populations: 3 Transportation Opportunities: 1 Expand Opportunity: 1 Architecture and Urban Design: 1 TOTAL: 6 $2,700,000 Acquisition: 1% interest rate, 2- year term, balloon payment or conversion to permanent loan. Construction to permanent: 16- year term, 40-year amortization, hard repayments *Final Terms shall comply with the requirements, standard loan terms and conditions, interest-rate reductions, and all other details laid out within the High Opportunity Area Housing Development Loan Program (HDLP) Guidelines (updated November 2023). Changes to repayment type may occur (hard repayment versus cash flow repayment) and shall be based on requirements listed in the HDLP Guidelines or if required by a senior lender. Changes in repayment type will cause a change in the base interest rate. Repayment priority and lien position shall be based on the size of the loans. Funds may be disbursed in a lump sum if required by senior lenders. **Projects receive a 0.5% interest rate reduction for each included priority. Sustainability allows for a 1% or 2% reduction. The maximum reduction per development is 2%. The interest rate is calculated as follows: Base Interest Rate minus (-) Interest Rate Reductions (up to 2%) = proposed interest rate; Base interest rate shall be locked within a month of closing. Projects shall maintain project priorities and the same weighted score at closing. Deviation from project priorites met may require Board approval. EXHIBIT A: RDA FINANCE COMMITTEE RECOMMENDED HIGH OPPORTUNITY AREA HDLP FUNDING ALLOCATIONS 4 24 5 EXHIBIT B: RDA BOARD APPROVED HIGH OPPORTUNITY AREA HDLP FUNDING ALLOCATIONS (To add after Board Meeting) 25 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 Senior Budget & Policy Analyst DATE:March 19, 2024 RE: RESOLUTION: HOUSING DEVELOPMENT LOAN FUNDING ALLOCATIONS FOR AFFORDABLE HOUSING ISSUE-AT-A-GLANCE The Board will review and potentially approve recommendations for allocating up to $15.4 million in affordable housing funds offered through a Notice of Funding Availability (NOFA) issued last year. The purpose of these low-interest loans is to incentivize the inclusion of affordable housing in new construction and in preservation/ rehabilitation projects. The unusually large size of this NOFA allocation reflects the combination of $4.2 million in committed RDA funds with $9.5 million of “dormant” Federal Housing and Urban Development (HUD) Home Investment Partnership (HOME) funds, which were shifted by the Council from the Housing Stability Division to the RDA’s Housing Development Loan Program (HDLP) in the Fiscal Year 2024 (FY24) budget. In addition, RDA staff proposes including another $1.7 million of additional funding to the NOFA from two rescinded FY23 HDLP loans. The 15 applications forwarded to the Board requested a total of nearly $27.5 million, and the RDA Finance Committee recommended funding 14 of these (see Attachment C1 for summary). In addition, two applications were received in response to a separate NOFA specifically for projects in High Opportunity Areas. These two applications were discussed in the February RDA meeting but the Board deferred action to be able to make funding decisions in the context of all the projects at once. The Board makes the final determination of which applications to fund and for what amount. Together, the projects recommended for funding would provide 1,540 units of new or refurbished affordable housing. Goal of the briefing: Discuss and consider adopting the Resolution entitled Affordable Housing – FY2023- 2024 Competitive Housing Development Loan Program (HDLP) Funding Allocations. Item Schedule: Briefing: March 19, 2024 Set Date: N/A Public Hearing: N/A Potential Action: March 19, 2024 Page | 2 ADDITIONAL INFORMATION A. Process Overview. Since 2018, the RDA has released multiple NOFAs to facilitate the development of affordable housing units in Salt Lake City. This year, the 15 “competitive” HDLP applications recommended to the Board requested a total of nearly $27.5 million. RDA staff indicated that five other applications also were submitted but because they did not meet the eligibility criteria for NOFA funds they were not included in the ranking process (see Attachment C2). All eligible applications were reviewed and ranked by the RDA Finance Committee, and their specific recommendations for allocating $15.1 million of the $15.4 million available are summarized in Attachment C1. Of the 15, all but one (Bumper House) were recommended for HDLP funding. Nine of these were recommended for the full amounts requested, and five were recommended for less than the full amount. A summary of all 20 applications appears in Attachment C1. The NOFA recommendations reached the Board in March this year, rather than earlier, due to the incorporation of the dormant HUD HOME funds, which involved determining a process that would comply to Federal regulations. The FY24 NOFA was released on November 17, 2023, and applications were due on January 3, 2024. B. Available Funding. The $15.4 million funding available this year includes $4.2 million approved by the Board in 2023 as part of the FY24 RDA budget, plus one-time funding provided by the Council’s allocation of $9.5 million in dormant HUD Home Investment Partnership (HOME) funds from the Housing Stability Division. If the Board chooses, an additional $1.7 million, which became available when loans for two projects approved last year were rescinded (see below), would also be included. FY24 HDLP Funding Sources Total Available Recommended Funding Funds Remaining RDA Committed Funds $4,241,714 $4,241,714 $0 Possible Additional RDA Funds $1,665,000 $1,665,000 $0 HOME Program Income $6,939,710 $6,939,710 $0 HOME Development Fund $726,291 $726,29 $0 HOME ARP Development $1,501,608 $1,501,608 $0 HOME Community Housing Development Organization Funds $351,841 $0 $351,841 Total Potential HDLP Funds $15,426,164 $15,074,323 $351,841 In FY23, two HDLP awardees (for Liberty Corner and Book Cliffs Lodge) failed to receive 9% tax credits through LIHTC, the Federal Low-Income Housing Tax Credit in the subsequent allocation cycle, which was a condition of the loans. Both these projects applied for HDLP funds again in FY24, as can be seen in Attachment C1, and Liberty Corner was since awarded 4% LIHTC credits. Book Cliffs Lodge plans to use other funding sources for their project. The $351,841 remaining in the HDLP results from receiving no applications that would meet the relatively narrow criteria for the HOME Community Housing Development Organization Funds. These funds may be used only for projects that are owned, developed, or sponsored by a nonprofit that qualifies as a Community Housing Development Organization (CHDO), as defined in Federal regulations. The Housing Stability Division in the Community and Neighborhoods Department (CAN) has worked to recruit new CHDOs over the years, but local organizations typically do not meet the regulatory requirements. Still, since no qualified applications for these funds have been received in the past two years, HUD regulations will now allow them Page | 3 to be recaptured and proposed for reallocation during the next annual HUD application process through the HDLP as regular HOME funds. C. Project Evaluation. As part of the application review process, RDA staff first analyzes applications to ensure they meet the HDLP eligibility requirements. The RDA Finance Committee (see below) then considers the Board’s funding priorities, along with factors related to the feasibility and technical qualities of each application. These include developer experience, the completeness and quality of the application, the amount of requested funding per affordable unit, the unit mix, community impact, and the financial and regulatory readiness of the proposed project. This year, the Finance Committee recommended full funding for the five applications that ranked most highly. For the next eight highest-ranked applications, the Finance Committee considered the minimum funding needed for the projects to advance, as reported by the applicants. RDA staff reported, “This approach recognized the readiness of the top ranked applications while providing at least minimum funding needs to most other projects.” The only project that the Finance Committee did not recommend for any funding was Bumper House which had the lowest Weighted Project Priority Score of all the applications. D. Applications for Projects in High Opportunity Areas. The 515 Tower - Conversion Phase I, which the Board was briefed on in February, is included on the list of recommended projects. It ranked third among the 14 projects recommended by the RDA Finance Committee. Funding for this project would be drawn from the High Opportunity Areas HDLP—or, if the Board prefers, it could award funding to the other application received, for Fairmont Heights II. These two applications were discussed in the February RDA meeting but the Board deferred action to be able to make funding decisions in the context of all of the projects at once. Summaries of the two applications in high opportunity areas are below. Additional information can be found in the Board staff report for that item, which is included as Attachment C2. 1.515 Tower - Conversion Phase I at 515 East 100 South. The request is for $2,650,000 for 96 units of “shared-equity” affordable housing to be developed by the Perpetual Housing Fund of Utah. This developer also applied for competitive HDLP funding and would use any funds granted from either source for this project. On February 1, the RDA Finance Committee recommended fully funding the 515 Tower - Conversion Phase I. 2.Fairmont Heights II at 2257 South 1100 East. The request is for $2,700,000 for affordable housing to be developed by Lincoln Avenue Capital. This developer also applied for $3.2 million from the general competitive HDLP funding for their Fairmont Heights I project, for a total of $5,900,000. This project did not apply for general HDLP funding, but a related project planned for the same property did. Fairmont Heights I ranked second-to-lowest among the other applications, but was recommended by the RDA Finance Committed for a $1 million loan. The allocation of funds for “high opportunity areas” dates from 2017, when the Board authorized $4.5 million for projects located in neighborhoods that provide residents with improved chances at upward economic mobility, like good schools, public transit access, and health care facilities. Two years later, the Board approved a $1.8 million loan for the Richmond Flats development, leaving the current balance at $2.7 million. Page | 4 E. Potential Additional City Funding. Two of the projects in the HDLP application pool also applied for Fiscal Year 2025 HUD grant funding. 1.Alliance House 1805 Rebuild. In addition to the $500,000 recommended for the Alliance House 1805 Rebuild, the project applied for two of the City’s annual HUD grants, which the Council is currently considering. It was recommended for partial funding for both these grants: - CDBG Housing: recommended to receive $221,000 of $300,000 requested to demolish and rebuild the existing facility with 16 deeply affordable housing units. -HOME-ARPA: recommended to receive $97,000 of $150,000 requested to provide short- term rental assistance to the current residents while the housing structure is demolished and rebuilt. 2.New City Plaza Apartments. Along with the $895,000 recommended for the New City Plaza Apartments the project also applied for $2 million from the City’s annual HUD grants. Neither the resident advisory board nor the Mayor recommended funding this project. POLICY QUESTIONS 1. Some Board Members have mentioned an interest in exploring how ownership units might be funded through the RDA. The Board may wish to discuss questions like those listed below. a. Is the HDLP structured in a way that facilitates applications for home ownership projects? b. Are there differences between rental projects and home ownership projects, for example, income and wealth levels of potential residents, unit sizes, etc.? c. What are the potential benefits and disadvantages for the City of funding home ownership projects versus rental projects? d. Are there models of home ownership or wealth-building that Board Members have encountered elsewhere which they would like RDA staff to research? e. Would the Board like to schedule an RDA briefing on options for promoting home ownership? 2. The projects reviewed by the RDA Finance Committee would be charged interest rates that range from 1% to 2.5%. In the context of continued high interest rates in the broader economy (relative to recent previous decades), would the Board like to discuss the potential advantages and disadvantages of changing how the Base Interest Rate is set for HDLP loans? ATTACHMENTS Attachment C1. Summary of RDA Finance Committee Recommended FY24 HDLP Funding. Attachment C2. Applications that Did Not Meet FY24 HDLP Eligibility Requirements. Attachment C3. RDA Board Staff Report, Funding Allocation for Gap Financing for High Opportunity Areas, February 13, 2024. RDA BOARD MEETING – MARCH 19, 2024 AFFORDABLE HOUSING NOTICE OF FUNDING AVAILABILITY (NOFA) HIGH OPPORTUNITY AREA & FY2023-24 COMPETITIVE APPLICATIONS FUNDS AVAILABLE •Total: $2.7M o 2017: RDA Board set aside $4.5M to incentivize affordable housing developments located in High Opportunity Areas o High Opportunity Areas: Neighborhoods that provide access to resources that improve chances at economic mobility o 2023: Map was updated to reflect newer data and metrics APPLICATION PROCESS •Funds available since 2018 and remain open until expended APPLICATION SUMMARY •2 applications received for requests of $5.35M o 515 Tower – Conversion Phase I - $2.65M o Fairmont Heights II - $2.7M HIGH OPPORTUNITY AREA APPLICATIONS OVERVIEW APPLICATIONS HIGH OPPORTUNITY AREA FUNDS OVERVIEW PROJECT DEVELOPER ADDRESS FUNDING REQUEST PRELIMINARY TERMS RESIDENTIAL UNITS PRIORITIES MET (WEIGHTED POINTS) 515 Tower – Conversion Phase 1 Perpetual Housing Fund 515 E 100 S Salt Lake City, UT 84102 $2,650,000 Construction to perm: 2% interest rate, 15-year term/am, cash flow repayments 96: 20@ ≤40% AMI, 76 @ 41- 60% AMI; includes studios, 1, 3, and 4 bedrooms. 10 Fairmont Heights II Lincoln Avenue Capital 2257 S 1100 E Salt Lake City, UT 84106 $2,700,000 Acquisition: 1% interest rate, 2- year term, balloon payment or conversion to permanent loan. Construction to perm: 16- year term, 40-year am, hard repayments 55: 27 @ ≤40% AMI, 19 @ 41- 60% AMI, 9@ 61- 80% AMI; includes 1 and 2 bedrooms. 6 $5,350,000 •RDA Finance Committee Recommendation: Fund full $2.65M Request for 515 Tower Conversion – Phase I •RDA Sustainable Development Policy Clarification FUNDS AVAILABLE •Total: $13.76M* o *$4.24M of RDA funds were combined with $9.52M of HUD HOME funds o Additional $1.665M in funds from previous HDLP applications may be available, subject to Board approval FY2023-24 COMPETITIVE HDLP NOFA OVERVIEW COMPETITIVE FUNDS CATEGORY AMOUNT RDA Housing Development Loan Program $4,241,714 HOME Program Income $6,939,710 HOME ARP Development $1,501,608 HOME Development Funds $726,291 HOME Community Housing Development Organization Funds $351,841 TOTAL: $13,761,164 APPLICATION PROCESS •Competitive Process •Applications Released: November 17, 2023 •Information Session: December 1, 2023 •Applications Due: January 3, 2024 APPLICATION SUMMARY •20 applications received •15 applications eligible, 5 applications ineligible for HDLP funding •$27,464,243 total eligible funding request FY2023-24 COMPETITIVE HDLP NOFA OVERVIEW MAP OF DEVELOPMENT: MAP 1 of 2 MAP OF DEVELOPMENT: MAP 2 of 2 THRESHOLDS REQUIREMENTS SUSTAINABILITY: Projects required to be designed to achieve a “Designed to Earn the Energy Star” Score of 90 or higher, contain no onsite fossil fuel combustion, and participate in the City’s Elevate Buildings program once the building is operating. AND ONE OF THE FOLLOWING: FAMILY -SIZED UNITS: At least 10% of the total residential units shall have 3+ bedrooms and shall be rent restricted to those earning 60% AMI. asd OR asd DEEPLY AFFORDABLE UNITS: At least 10% of the total residential units shall be restricted as affordable to households earning 40% AMI. PROJECT PRIORITIES PROJECT PRIORITIES: USED TO EVALUATE PROJECTS & PROVIDE INTEREST RATE REDUCTIONS •Family Housing •Target Populations •Homeownership •Missing Middle and Unique Housing Types •Sustainability •Transportation Opportunities •Neighborhood Safety •Expand Opportunity •Architecture and Urban Design •Commercial Vitality •Historic Preservation/Adaptive Reuse •Public Art PROJECT EVALUATION •Alignment with project priorities •Content & Quality of Application •Qualifications & Experience of Development Team •Content, Effectiveness & Financial Details Appropriateness •Project Readiness •Building & Site Design APPLICATION REVIEW APPLICATIONS OVERVIEW Application #1 2 3 4 5 6 7 Project Norbridge Court Bumper House New City Plaza Apartments 515 Tower - Conversion Phase I 2nd South Apartments The Catherine Phase 1 The Catherine Phase 2 Developer Artspace SMH Builders Housing Connect Perpetual Housing Fund Hermes Affordable Services, LLC 22 Communities 22 Communities Address 511 W 200 S 269 W Brooklyn Ave 1966 S 200 E 515 E 100 S 934-948 W 200 S 1881 W N Temple 1881 W N Temple Preliminary Terms 1%, 30/30 1.5%, 17/40 2.5%, 40/40 2%, 15/15 2%, 30/30 2%, 16/40 2%, 16/40 Repayment Type Hard Hard Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow RDA Request Amount $ 895,000 $3,000,000 $ 3,000,000 $895,000 $ 895,000 $2,650,000 $ 2,650,000 Funding Recommendations $895,000 $0 $895,000 $2,650,000***$2,420,000 $1,000,000 $134,323 Previous RDA Commitment $ - $ - $ - $ - $ - $ - $ - Project Cost $18,774,027 $60,701,174 $60,701,174 $89,615,717 $89,615,717 $39,231,648 $39,231,648 RDA % of Total Project Cost 4.8%4.9%1.0%6.8%8.1%3.6%3.5% RDA Requested Funds per Affordable Unit $14,435 $12,658 $10,033 $9,323 $8,524 $11,623 $18,403 RDA FC Recommended Funding per Affordable Unit $14,435 $0 $2,993 $27,604 $23,048 $4,386 $933 Tax Credits?Yes, 9%Yes, 4%Yes, 4%Yes, 9%Yes, 4%Applying, 4%Applying, 4% Affordable Units Breakdown 40% AMI & Below..32 24 224 20 16 - - 41-60% AMI..22 158 75 76 88 228 - 61%-80% AMI..8 55 - - - - 144 >81% AMI & Above. (Market) ..- - - - 1 - - Total. 62 237 299 96 105 228 144 Percent Affordable (60% AMI & below)87%77%100%100%99%100%0% Unit Mix Studio..- 182 - 40 36 80 45 1bd.. - 18 298 8 37 44 30 2bd.. 59 37 1 - 16 80 45 3bd.. 3 - - 32 16 24 24 4bd.. - - - 16 - - - Weighted Project .. Priority Score..8 3 5 10 8 4 6 APPLICATIONS OVERVIEW CONTINUED Application #8 9 10 11 12 13 14 15 TOTALProjectCitizens West 4 Fairmont Heights I Project Open 3 Pharos Apartments Book Cliffs Lodge Liberty Corner 9Ten West Alliance House 1805 Rebuild Developer Developed. By Women. & Ivan Carroll Lincoln Avenue Communities Perpetual Housing Fund Housing Authority of Salt Lake City Housing Authority of Salt Lake City Cowboy Partners Great Lakes Capital Alliance House & Cowboy Partners ..Address 515 W 300 N 2557 S 1100 E 529 W 400 N 915 W 200 N 1159 S W Temple 1265 S 300 W 910 W N Temple 1805 S Main St ..Preliminary Terms 1%, 15/30 1%, 2yr balloon or 16/40 1%, 18 month 2.5%, 15/40 2.5%, 15/30 2%, 40/40 2%, 16/40 2.5%, 40/40 ..Repayment Type Hard Balloon or convert to hard Balloon Payment Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow RDA Request Amount $3,000,000 $ 3,000,000 $2,524,802 $ 2,524,802 $1,569,441 $ 1,569,441 $400,000 $ 400,000 $ 28,973,486 Funding Recommendations $400,000 $1,000,000 $710,000 $880,000 $740,000 $4,500,000 $1,000,000 $500,000 $15,074,323 Previous RDA Commitment $ - $ - $ - $ - $1,000,000 $ - $ - $ - $1,000,000 Project Cost $37,177,859 $37,177,859 $69,452,555 $69,452,555 $45,194,612 $45,194,612 $25,514,260 $25,514,260 $752,549,677 RDA % of Total Project Cost 1.6%9.2%9.9%8.5%10.0%3.8%4.6%8.3% RDA Requested Funds per Affordable Unit $57,692 $54,545 $109,774 $74,259 $28,535 $7,847 $2,222 $25,000 RDA FC Recommended Funding per Affordable Unit $7,692 $18,182 $30,870 $25,882 $13,455 $22,500 $5,556 $31,250 Tax Credits?Yes, 9%Applying, 9%No No No Yes, 4%Yes, 4%No Affordable Units Breakdown 40% AMI & Below..10 27 - 5 9 44 27 16 454 41-60% AMI..40 19 - 19 20 78 138 - 961 61%-80% AMI..- 9 23 10 20 78 15 - 362 >81% AMI & Above.(Market) ..2 - - - 6 - - - 9 Total.. 52 55 23 34 55 200 180 16 1,786 Percent Affordable (60% AMI & below)96%84%0%71%53%61%92%100% Unit Mix Studio..10 - - - - - 165 - 558 1bd.. - 40 4 34 55 - 15 16 599 2bd.. 16 15 - - - 96 - - 365 3bd.. 20 - 12 - - 80 - - 211 4bd.. 6 - 7 - - 24 - - 53 Weighted Project .. Priority Score..10 6 12 5 5 10 7 7 PROJECT/APPLICANT ADDRESS WEIGHTED PROJECT PRIORITY SCORE FUNDING REQUEST RDA Committed Funds Possible Additional RDA Funds HOME Program Income HOME Development Fund HOME ARP Development TOTAL FUNDING RECOMMENDATION FUNDING RANKINGNorbridge Court 511 W 200 S 8 $895,000 $895,000 $895,000 7Artspace Bumper House 269 W Brooklyn Ave 3 $3,000,000 $0 14SMH Builders New City Plaza Apartments 1966 S 200 E 5 $895,000 $895,000 $895,000 5Housing Connect 515 Tower - Conversion Phase I 515 E 100 S 10 $2,650,000 $0***3Perpetual Housing Fund 2nd South Apartments 934-948 W 200 S 8 $3,000,000 $2,420,000 $2,420,000 6Hermes Affordable Services, LLC The Catherine Phase 1 1881 W N Temple 4 $2,524,802 $1,000,000 $1,000,000 1022 Communities The Catherine Phase 2 1881 W N Temple 6 $1,569,441 $134,323 $134,323 1022 Communities Citizens West 4 515 W 300 N 10 $400,000 $400,000 $400,000 2Developed. By Women. & Ivan Carroll Fairmont Heights I 2557 S 1100 E 6 $3,200,000 $1,000,000 $1,000,000 13Lincoln Avenue Communities Project Open 3 529 W 400 N 12 $710,000 $710,000 $710,000 1Perpetual Housing Fund Pharos Apartments 915 W 200 N 5 $880,000 $47,101 $726,291 $106,608 $880,000 12Housing Authority of Salt Lake City Book Cliffs Lodge 1159 S W Temple 5 $740,000 $740,000 $740,000 11Housing Authority of Salt Lake City Liberty Corner 1265 S 300 W 10 $4,500,000 $1,236,714 $1,530,677 $1,732,609 $4,500,000 4Cowboy Partners 9Ten West 910 W N Temple 7 $2,000,000 $1,000,000 $1,000,000 9Great Lakes Capital Alliance House 1805 Rebuild 1805 S Main St 7 $500,000 $500,000 $500,000 8Alliance House & Cowboy Partners TOTAL $27,464,243 $4,241,714 $1,665,000 $6,939,710 $726,291 $1,501,608 $15,074,323 FINANCE COMMITTEE RECOMMENDATION <40%41- 60% 61- 80% Market Rate 1 Project Open 3 - Homeownership D3 $710,000 $710,000 23 0 0 23 0 12 No IR: 1%. Term: 18 months. Repaymt: Balloon.49 2 Citizens West 4 D3 $400,000 $400,000 52 10 40 0 2 10 9%IR: 1%. Term: 15 years with 30 year amortization. Repaymt: Hard.41 3 515 Tower - Conversion Phase I - Recommended for High Opportunity NOFA funding D4 $2,650,000 $2,650,000 96 20 76 0 0 10 9%IR: 2%. Term: 15 years. Repaymt: Cash Flow.24 4 Liberty Corner D5 $4,500,000 $4,500,000 200 44 78 78 0 10 4%IR: 2%. Term: 40 years. Repaymt: Cash Flow.60 5 New City Plaza Apartments - Historic Preservation/ Adaptive Reuse D5 $895,000 $895,000 299 223 75 0 0 5 4%IR: 2.5%. Term: 40 years. Repaymt: Cash Flow.20 6 2nd South Apartments D2 $3,000,000 $2,420,000 105 16 88 0 1 8 4%IR: 2%. Term: 30 years. Repaymt: Cash Flow.28 7 Norbridge Court - Historic Preservation/ Adaptive Reuse D2 $895,000 $895,000 62 32 22 8 0 8 9%IR: 1%. Term: 30 years. Repaymt: Hard.12 8 Alliance House 1805 Rebuild D5 $500,000 $500,000 16 16 0 0 0 7 No IR: 2.5%. Term: 40 years. Repaymt: Cashflow.68 9 9Ten West D2 $2,000,000 $1,000,000 180 27 138 15 0 7 4%IR: 2%. Term: 16 years with 40 year amortization. Cash Flow.64 10 The Catherine Phase 1 D1 $2,524,802 $1,000,000 228 0 228 0 0 4 No (applying for 4%) IR: 2%. Term: 16 years with 40 year amortization. Repaymt: Cash Flow.33 10 The Catherine Phase 2 D1 $1,569,441 $134,323 144 0 144 0 0 6 No (applying for 4%) IR: 2%. Term: 16 years with 40 year amortization. Repaymt: Cash Flow.37 11 Book Cliffs Lodge D5 $740,000 $740,000 55 9 20 20 6 5 N/A IR: 2.5%. Term: 15 years with 30 year amortization. Repaymt: Cash Flow.56 12 Pharos Apartments D2 $880,000 $880,000 34 5 19 10 0 5 No IR: 2.5%. Term: 15 years with 40 year amortization. Repaymt: Cash Flow.52 13 Fairmont Heights I D7 $3,200,000 $1,000,000 55 27 19 9 0 6 No (applying for 9%) IR: 1%. Term: 2-year ballon or conversion to permanent, 16 years with 30 year amortization. Repaymt: Hard. 45 14 Bumper House D5 $3,000,000 $0 237 24 158 55 0 3 4%IR: 1.5%. Term: 17 years with 40 year amortization. Repaymt: Hard.16 Summary of RDA Finance Committee Recommended FY24 HDLP Funding. Weighted Priority Score Tax Credits Rec'd Preliminary terms Summary Page in Trans- mittal Units per AMI LevelRDA Finance Cmtee Ranking Project Funding Request Funding Recommend- ation Total Units Council District Funding Request $1,800,000 $300,000 $400,000 $800,000 $500,000 Saltair Requested loan for preconstruction design and soft costs Maven Flats Did not include family-sized and/or deeply affordable units Moda Griffin Did not include family-sized and/or deeply affordable units Palmer Court Redevelopment Requested loan for preconstruction design and soft costs Applications that Did Not Meet FY24 HDLP Eligibility Requirements. Project Basis for ineligibility Innovation Park Requested loan for "sleeping second mortgages" 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:February 13, 2024 RE: RESOLUTION: FUNDING ALLOCATION FOR GAP FINANCING FOR HIGH OPPORTUNITY AREAS ISSUE-AT-A-GLANCE The Board will consider funding allocations and preliminary terms for two affordable housing projects located in “high opportunity areas” through the RDA’s Housing Development Loan Program (HDLP). Together, the two projects requested $5.35 million in low interest loans, which exceeds the current allocation of $2.7 million for this type of project. The allocation of funds for “high opportunity areas” dates from 2017, when the Board authorized $4.5 million for projects located in neighborhoods that provide residents with improved chances at upward economic mobility, like good schools, public transit access, and health care facilities. RDA staff plans to transmit the remaining HDLP Notice of Funding Availability (NOFA) applications for discussion in the March meeting. The Board could decide on the high opportunity applications at the February or March RDA meetings. In summary, the two requests in high opportunity areas this year are: -515 Tower - Conversion Phase I at 515 East 100 South. The request is for $2,650,000 for 96 units of “shared-equity” affordable housing to be developed by the Perpetual Housing Fund of Utah. This developer also applied for competitive HDLP funding and would use any funds granted from either source for this project. -Fairmont Heights II at 2257 South 1100 East. The request is for $2,700,000 for affordable housing to be developed by Lincoln Avenue Capital. This developer also applied for $3.2 million from the general competitive HDLP funding for their Fairmont Heights 1 project, for a total of $5,900,000. On February 1, the RDA Finance Committee recommended fully funding the 515 Tower - Conversion Phase I. Item Schedule: Briefing: February 13, 2024 Set Date: N/A Public Hearing: N/A Potential Action: TBD Page | 2 Goal of the briefing: Discuss the two applications for HDLP funding in high opportunity areas and consider approving funds for one or both of the projects. BACKGROUND AND ADDITIONAL INFORMATION A. Project Descriptions. 1.515 Tower - Conversion Phase I. This phase of this project would involve the adaptive re-use of a former office building at 515 East 100 South. The RDA loan of $2,650,000 would help fund 96 units of affordable and deeply affordable units. One half of the total units (48) would have three or four bedrooms, with the remaining units mostly studios. The project received 9% Federal LIHTC housing credits. The interest rate would be 2% for this 15-year cash-flow loan. The Board priorities met with this project would be Family Housing, Target Populations (Deeply Affordable Units), Expand Opportunity, Adaptive Re-use, Transportation Opportunities, Commercial Vitality. See additional information on Sources and Uses of funding for this project below. This project would be the first to be developed through the recently created Perpetual Housing Fund of Utah, which purchased this property with funded with a $10 million allocation from the City’s American Rescue Act Plan (ARPA) funds. Under a “shared-equity” model, 75% of any profits or appreciation for this phase of the development would be shared among the residents through a tenant wealth-building program. This developer also applied for competitive HDLP funding and stated that it would use any funds granted from either source for this project. 2.Fairmont Heights II. This project would use $2,700,000 of HDLP funds for affordable senior housing at 2257 South 1100 East. Fifty-five one- and two-bedroom units would be constructed, including five units reserved for people who have experienced chronic homelessness, five units for mobility impaired individuals, and nine units for people with disabilities. The interest rate would be 1% for this two-year acquisition loan with a balloon payment or conversion at the end of that period. The Board priorities met with this project would be Target Populations (Deeply Affordable Units), Expand Opportunity, Transportation Opportunities, Architecture and Urban Design. See additional information on Sources and Uses of funding for this project below. The developer, Lincoln Avenue Capital seeks an acquisition-to-permanent financing loan, which means initial funds would be used to buy the property. The developer would need to obtain tax credits, financing, and building approvals within two years, or would be required to repay that loan. If the developer succeeds, the acquisition loan could be converted to a long-term (permanent) loan The developer also applied for $3.2 million from competitive HDLP funding for their Fairmont Heights 1 project, which is on the same property, for a total of $5.9 million. Page | 3 B. Background. 1.Housing Development Loan Program (HDLP) Policy. The HDLP provides low-interest loans to incentivize the development and preservation of affordable housing in Salt Lake City. Each year, RDA staff presents a Housing Development Funding Strategy that proposes funding priorities and allocations, as well as projecting revenues for the upcoming fiscal year. The process is designed to provide flexibility for meeting current needs, leverage current opportunities, coordinate with other City resources, and shift funding priorities to reflect evolving plans and policies. 2.Housing Priorities for Fiscal Year 2024. Applicants are required to meet the requirements laid out in the RDA’s HDLP Guidelines and Application Handbook, as well as the annual housing priorities set by the Board. For FY24, at least one of the following had to be met to qualify for consideration for funding: •Deeply Affordable Housing Threshold Requirement: at least 10% of the total residential units shall be income and rent restricted to households earning 40% of the area median income AND deed restricted for both rent and income •Family Housing Threshold Requirement: a minimum of 10% of the total residential units shall have three or more bedrooms and shall be income and rent restricted to those earning 60% AMI and below, with AMI limits as established by HUD. 3.High Opportunity Areas. In 2017, the RDA Board allocated $4.5 million to incentivize the development and preservation of affordable housing located within High Opportunity Areas. The High Opportunity Area map was updated in 2023, to reflect newer data and metrics, which resulted in an expanded area that qualifies for these funds. POLICY QUESTIONS 1. Does the Board wish to be informed of the RDA staff recommendations for other HDLP loans before making decisions on these two high-opportunity area projects? Page | 4 2. If the Board chooses to fully fund the 515 Tower - Conversion Phase I at the requested amount of $2,650,000, would it like to consider moving the $50,000 to the regular HDLP funding balance to help fund other affordable housing projects? 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: March 1, 2024 PREPARED BY: Tracy Tran, Senior Project Manager Kate Werrett, Project Manager Austin Taylor, Project Manager Lucas Goodrich, Project Coordinator Marcus Lee, Project Coordinator RE: Consideration and Adoption of a Resolution Approving Funding Allocations for Gap Financing through a Competitive Notice of Funding Availability for the Housing Development Loan Program REQUESTED ACTION: Consider approving affordable housing funding allocations as selected through a competitive Notice of Funding Availability for the Housing Development Loan Program POLICY ITEM: Affordable Housing – Housing Development Loan Program BUDGET IMPACTS: $4,241,714 of RDA affordable housing funds and $9,519,450 of Housing Stability Division’s HUD HOME funds issued through the Housing Development Loan Program EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City (“RDA”) recently issued a competitive Notice of Funding Availability (“NOFA”) to solicit applications for $13.76 million available through the Housing Development Loan Program (“HDLP”) to incentivize the development and preservation of affordable housing. This is the first year federal Department of Housing and Urban Development (“HUD”) funds from the City’s Housing Stability Division have been incorporated into the competitive NOFA through the HDLP. The HDLP funds are available to projects located anywhere within Salt Lake City municipal boundaries. After the release of the NOFA, an additional $1,665,000 became available to potentially include in this HDLP funding offering, subject to consideration and approval by the RDA Board of Directors (“Board”). Due to the number of applications received for funding, RDA staff proposed, and the Finance Committee recommends that the Board incorporate the $1,665,000 within this round of the competitive HDLP. If the Board determines to incorporate the $1,665,000, a total of $15,426,164 will be available to fund these applications. 1 Guiding Policy The HDLP is being administered pursuant to the Housing Allocation Funds Policy (“Funds Policy”), resolution R-1-2022, and the Housing Development Loan Program Policy (“HDLP Policy”), resolution R-2-2022. 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 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. The HDLP provides low-cost financial assistance to incentivize the development and preservation of affordable housing within Salt Lake City municipal boundaries. The HDLP Policy provides a centralized application, underwriting, and approval process regardless of the fund source and also features: • Funding allocations and priorities determined on an annual basis. The funding priorities for these funds were based on the FY2023-24 Annual Housing Funding Priorities. • The transparent administration of funds through a Notice of Funding Availability (NOFA) process. Revenue from various funds may be combined into a consolidated NOFA or a NOFA may be issued for a specific funding source. NOFAs could 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. • A standardized process for approving applications and a uniform set of underwriting policies. FY2023-2024 Annual Priorities In April 2023, the Board adopted the FY2023-2024 Annual Housing Funding Priorities. These priorities included Threshold Requirements for the HDLP. This HDLP application cycle is the second year that these two thresholds (including the new Sustainable Development Policy requirements) were required of development projects. Staff confirms that every application meets or will meet the Threshold Requirements. The paragraphs below detail this year’s Threshold Requirements; projects are required to include at least one of the following options: • Deeply Affordable Housing Threshold Requirement o Policy Objective: Expand the availability of units for extremely low-income households, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. o HDLP Implementation: To meet the RDA’s deeply affordable threshold, at least 10% of the total residential units shall be income and rent restricted to households earning 40% of the area median income (“AMI”) and below as established by the U.S. Department of Housing and Urban Development (“HUD”). These units will be rent and income deed restricted.  • Family Housing Threshold Requirement o Policy Objective: 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. o HDLP Implementation: For a development to qualify for these funds, a minimum of 10% of the total residential units shall have three or more bedrooms and shall be income and rent restricted to those earning 60% AMI and below, with AMI limits as established by HUD. For affordable homeownership developments, a minimum of 10% of the total residential units shall have three or more bedrooms. Application Submissions Pursuant to the policies, the RDA administered a transparent application process that resulted in twenty (20) requests; however, five applications were determined to be ineligible during the Threshold Requirement review phase. Eligible requests for funding total $27,464,243 – refer to Attachment A: Applications Overview, Attachment B: Map of Project Locations, and Attachment D: Project Summary Sheets for additional information. The RDA has evaluated the application submittals and the RDA Finance Committee (“Committee”) has recommended specific applications for funding. This memorandum includes a summary of application submittals and the Committee’s recommendations for the Board’s consideration and determination of funding allocations. ANALYSIS & ISSUES: Below is an overview of the HDLP application process: I. Application Process Applications were solicited with a NOFA released on November 17, 2023. A copy of the FY2023-2024 HDLP Annual Affordable Housing Funds Guidelines + Application Handbook that applicants used to apply can be found here. On December 1, 2023, RDA and Housing Stability staff hosted a virtual information session to provide an overview of the HDLP application, requirements, selection process, and HUD HOME funds. Staff recorded the video and posted the video on the RDA website for those unable to attend to watch. Staff also utilized press releases, website and email communications, social media, and notifications through secondary outlets to publicize the competitive HDLP NOFA. Applications were due on or before January 3, 2024. II. Project Review As part of the application review process, RDA staff analyzed applications according to the HDLP Policy’s eligibility requirements and funding priorities set by the Board, which can be found in Attachment F: Project Priorities and Interest Rate Reductions. The housing priorities include the ability for an applicant to receive an interest rate reduction if priorities are met. All awarded HDLP loans will have below market interest rates with funds available to selected projects for acquisition, construction and/or development uses. The RDA recognizes that the construction sources and uses for projects may not be the same as the permanent sources and  uses and that the amount of debt that the HDLP loans are subordinated to may vary depending on the status of the projects. The applications were forwarded to the RDA Finance Committee for their review and recommendation. When evaluating applications, the Committee considered developer experience, the completeness/quality of the application, the project’s ability to meet HDLP Threshold Requirements, the number of Project Priorities met, targeted AMIs, unit mix, community impact, and the financial and regulatory readiness of the proposed project. III. Funding Allocations, Conditional Commitment, and Loan Closing Pursuant to the Policy, the Board will make the final determination of applications to fund. Subsequently, the RDA will issue a conditional commitment letter to those applications that are selected for funding. The conditional commitment letter between the RDA and the applicant will contain the covenants, terms and conditions upon which the RDA will provide financial assistance to the proposed project once financial, legal, regulatory, and design approvals are obtained. Prior to closing on a loan, RDA staff will ensure that the project is financially viable, underwriting standards are met, and the use of public funds is necessary for the project to succeed. RDA STAFF REVIEW: As part of the initial application review process, RDA staff determined that fifteen (15) of the twenty (20) submitted applications are eligible for funding consideration by meeting or proving they will meet the Threshold Requirements laid out in the FY2023-2024 HDLP Annual Affordable Housing Funds Guidelines + Application Handbook. An overview of submitted applications in the order received is as follows: PROJECT DEVELOPER FUNDING REQUEST PREVIOUS HDLP COMMITMENTS CURRENT REQUEST 1. Norbridge Court Artspace - $895,000 2. Bumper House SMH Builders - $3,000,000 Innovation Park* Ivory Innovations - $1,800,000 3. New City Plaza Apartments Housing Connect - $895,000 4. 515 Tower - Conversion Phase I Perpetual Housing Fund - $2,650,000 5. 2nd South Apartments Hermes Affordable Services, LLC - $3,000,000 6. The Catherine Phase 1 22 Communities - $2,524,802 7. The Catherine Phase 2 22 Communities - $1,569,441 Maven Flats* Rise Development LLC - $300,000 Moda Griffin* J Fisher Companies - $400,000 8. Citizens West 4 Developed. By Women. & Ivan Carroll - $400,000 4 9. Fairmont Heights I Lincoln Avenue Capital - $3,200,000 10. Project Open 3 Perpetual Housing Fund - $710,000 11. Pharos Apartments Housing Authority of Salt Lake City - $880,000 12. Book Cliffs Lodge** Housing Authority of Salt Lake City $1,000,000 $740,000 Palmer Court Redevelopment* Shelter the Homeless - $800,000 Saltair* Valley Behavioral Health - $500,000 13. Liberty Corner Cowboy Partners - $4,500,000 14. 9Ten West Great Lakes Capital - $2,000,000 15. Alliance House 1805 Rebuild Alliance House & Cowboy Partners - $500,000 TOTAL FUNDING REQUEST: $31,264,243 TOTAL ELIGIBLE FUNDING REQUEST: $27,464,243 AVAILABLE FUNDING: $13,761,164*** * During the Threshold Review, this application was determined to be ineligible. ** This project has received other HDLP loan commitment(s) in a previous year. To streamline the administration of these loans, the loans will be consolidated if approved by the Board. *** Funds from previous HDLP applications may be available to include as an additional funding source. The Board will need to approve this addition, if desired. This may provide an additional $1,665,000 of funding. A more in-depth overview of the applications can be found in Attachment A: Applications Overview, Attachment D: Project Summary Sheets, and Attachment E: Ineligible Projects Summary. RDA Sustainable Development Policy Clarification: As part of reviewing these funding requests, RDA staff was asked whether the use of diesel or natural gas backup generators in case of emergencies conflicts with the RDA Sustainable Development Policy. Backup generators are a practical and sometimes required element in a building to ensure elements such as lighting and elevators are working so that people can get out of buildings safely. In reviewing the policy, our policy requires buildings to be designed to operate without fossil fuels, but it would not restrict the ability to have backup generators for emergencies. RDA FINANCE COMMITTEE RECOMMENDATION: On February 21, 2024, the Committee made recommendations regarding all applications. The Committee provided the Board funding recommendations for the five available categories of funds. The first category includes funding recommendations with the $4.2 million in RDA committed funds, the second category includes funding recommendations for the additional $1,665,000 in RDA funds if the Board decides to incorporate those funds into this round. Categories 3-5 include recommendations for the three Housing Stability Division’s HUD HOME funds that applicants qualified to receive. The Committee also provided an overall ranking of all the projects. While reviewing applications, the Committee took into consideration their February 1, 2024 High Opportunity Area HDLP funding recommendation and agreed to maintain their submitted recommendation to fund 515 Tower – Conversion 1 with High Opportunity Area funds. The Committee’s competitive HDLP funding recommendations incorporate the previously submitted High Opportunity Area recommendation. Refer to Attachment C: RDA Finance Committee Funding Recommendation for the Committee’s 5 recommendation detail. PREVIOUS BOARD ACTION: June 13, 2023: The Board adopted the FY2023-2024 budget, which allocated $4,241,714 in RDA funds to the Housing Development Loan Program. The City Council allocated an additional $9,519,450 of HUD funds to be included in this year’s affordable housing NOFA. The total of $13,761,164 in Competitive NOFA Funds come from five different categories as described below: COMPETITIVE FUNDS CATEGORY AMOUNT* RDA Housing Development Loan Program $4,241,714 HOME Program Income** $6,939,710 HOME ARP Development** $1,501,608 HOME Development Fund** $726,291 HOME Community Housing Development Organization Funds** $351,841 TOTAL: $13,761,164 *Note: Amounts are approximate. Total available funds may change after this document has been published. **Note: See Attachment G for additional information on federal requirements associated with these funds. •April 11, 2023: The Board adopted the Affordable Housing Funding Priorities for Fiscal Year 2023-2024. •March 8, 2022: The Board adopted revisions to the Housing Development Loan Program Policy to direct review of applications to the RDA Finance Committee. •February 9, 2022: The Board adopted revisions to the Housing Allocation Funds Policy. •March 2021: The Board adopted the Housing Development Loan Program Policy. •February 2021: The Board adopted the Housing Allocation Funds Policy. ATTACHMENTS: A.Applications Overview B. Map of Development Locations C. RDA Finance Committee Funding Recommendation D.Project Summary Sheets E.Ineligible Projects Summary F.Project Priorities and Interest Rate Reductions G.HOME Funds Requirements H.FY2023-2024 Competitive HDLP Funding Allocation Resolution  Application #1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Project Norbridge Court Bumper House New City Plaza Apartments 515 Tower - Conversion Phase I 2nd South Apartments The Catherine Phase 1 The Catherine Phase 2 Citizens West 4 Fairmont Heights I Project Open 3 Pharos Apartments Book Cliffs Lodge Liberty Corner 9Ten West Alliance House 1805 Rebuild Developer Artspace SMH Builders Housing Connect Perpetual Housing Fund Hermes Affordable Services, LLC 22 Communities 22 Communities Developed. By Women. & Ivan Carroll Lincoln Avenue Communities Perpetual Housing Fund Housing Authority of Salt Lake City Housing Authority of Salt Lake City Cowboy Partners Great Lakes Capital Alliance House & Cowboy Partners TOTAL Address 511 W 200 S 269 W Brooklyn Ave 1966 S 200 E 515 E 100 S 934-948 W 200 S 1881 W N Temple 1881 W N Temple 515 W 300 N 2557 S 1100 E 529 W 400 N 915 W 200 N 1159 S W Temple 1265 S 300 W 910 W N Temple 1805 S Main St RDA Loan Request RDA Request 895,000$ 3,000,000$ 895,000$ 2,650,000$ 3,000,000$ 2,524,802$ 1,569,441$ 400,000$ 3,200,000$ 710,000$ 880,000$ 740,000$ 4,500,000$ 2,000,000$ 500,000$ 27,464,243$ Previous RDA Commitments -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,000,000$ -$ -$ -$ 1,000,000$ Total RDA Request 895,000$ 3,000,000$ 895,000$ 2,650,000$ 3,000,000$ 2,524,802$ 1,569,441$ 400,000$ 3,200,000$ 710,000$ 880,000$ 1,740,000$ 4,500,000$ 2,000,000$ 500,000$ 28,464,243$ Total Project Cost 18,774,027$ 60,701,174$ 89,615,717$ 39,231,648$ 37,177,859$ 69,452,555$ 45,194,612$ 25,514,260$ 34,619,153$ 7,170,000$ 10,327,863$ 17,424,284$ 117,613,798$ 43,204,038$ 6,017,619$ RDA Loan to Cost 4.8%4.9%1.0%6.8%8.1%3.6%3.5%1.6%9.2%9.9%8.5%10.0%3.8%4.6%8.3%5.9%Average RDA Funding per Unit 14,435$ 12,658$ 2,993$ 27,604$ 28,571$ 11,074$ 10,899$ 7,692$ 58,182$ 30,870$ 25,882$ 31,636$ 22,500$ 11,111$ 31,250$ 21,824$ Average Other City Funds -$ -$ 2,000,000$ 10,000,000$ -$ -$ -$ -$ -$ -$ -$ 3,000,000$ -$ -$ -$ 15,000,000$ Interest Rate (w/ project priority deductions)1.0%1.5%2.5%2.0%2.0%2.0%2.0%1.0%1.0%1.0%2.5%2.5%2.0%2.0%2.5%1.8%Average Term 30 17 40 15 30 16 16 15 2, 16 18 mo 15 15 40 16 40 Amortization 30 40 40 15 30 40 40 30 40 18 mo 40 30 40 40 40 Repayment Terms Hard Hard Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Hard Balloon or convert to hard Balloon Payment Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Financial Metrics Owners' Equity 808,279$ -$ -$ -$ -$ -$ -$ -$ 100$ -$ 1,450,000$ 1,112,634$ 8,907,464$ -$ $360,000*12,278,477$ Tax Credits Yes, 9%Yes, 4%Yes, 4%Yes, 9%Yes, 4%Applying, 4%Applying, 4%Yes, 9%Applying, 9%No No No Yes, 4%Yes, 4%No Cost per Unit 302,807$ 256,123$ 299,718$ 408,663$ 354,075$ 304,616$ 313,851$ 490,659$ 629,439$ 311,739$ 303,761$ 316,805$ 588,069$ 240,022$ 376,101$ 366,430$ Average Threshold Requirements Family-Sized Affordable or Deeply Affordable Units Deeply Affordable Deeply Affordable Deeply Affordable Both Both Family-Sized Family-Sized Both Deeply Affordable Family-Sized Deeply Affordable Deeply Affordable Both Deeply Affordable Deeply Affordable Energy Star Score 90+ Cond. Of Approval 93 Cond. Of Approval 100 93 Cond. Of Approval Cond. Of Approval 100 Cond. Of Approval 100 100 95 92 90 92 100% Electric No Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Housing Unit Details 40% AMI and Below Studio - 24 - 15 8 - - 5 - - - - - 27 - 79 1bd - - 223 2 6 - - - 18 - 5 9 - - 16 279 2bd 31 - 1 - 1 - - 3 9 - - - 22 - - 67 3bd 1 - - 2 1 - - 1 - - - - 18 - - 23 4bd - - - 1 - - - 1 - - - - 4 - - 6 Total 40% AMI & Below 32 24 224 20 16 - - 10 27 - 5 9 44 27 16 454 41%-60% AMI Studio - 158 - 25 28 80 45 5 - - - - - 138 - 479 1bd - - 75 6 31 44 30 - 15 - 19 20 - - - 240 2bd 21 - - - 14 80 45 12 4 - - - 34 - - 210 3bd 1 - - 30 15 24 24 19 - - - - 32 - - 145 4bd - - - 15 - - - 4 - - - - 12 - - 31 Total 41%-60% AMI 22 158 75 76 88 228 144 40 19 - 19 20 78 138 - 1,105 61%-80% AMI Studio - - - - - - - - - - - - - - - - 1bd - 18 - - - - - - 7 4 10 20 - 15 - 74 2bd 7 37 - - - - - - 2 - - - 40 - - 86 3bd 1 - - - - - - - - 12 - - 30 - - 43 4bd - - - - - - - - - 7 - - 8 - - 15 Total 61%-80% AMI 8 55 - - - - - - 9 23 10 20 78 15 - 218 Market Rate (81% & above AMI) 1bd - - - - - - - - - - - 6 - - - 6 2bd - - - - 1 - - 1 - - - - - - - 2 4bd - - - - - - - 1 - - - - - - - 1 Total Market Rate (81% & above AMI)- - - - 1 - - 2 - - - 6 - - - 9 Priorities & Interest Rate Reductions Priorities: The four Funding Priorities determined by the FY2023-2024 Annual Housing Funding Priorities include: Family Housing, Target Populations, Homeownership, and Missing Middle/Unique Housing Type. These Funding Priorities receive a weighted ranking of 3 points each as compared to other priorities which receive 1 ranking point each for inclusion in projects. Interest Rate Reductions: Projects receive a 0.5% interest rate reduction for each included priority. Sustainability allows for a 1% or 2% reduction. The maximum reduction per development application is 2%. Family Housing 3 3 3 3 3 3 Target Populations 3 3 3 3 3 3 3 3 3 3 3 Homeownership 3 Missing Middle/Unique Housing Type 3 3 Transportation Opportunities 1 1 1 1 1 1 1 1 1 1 1 1 1 Neighborhood Safety 1 1 1 1 1 1 1 Expand Opportunity 1 1 Architecture and Urban Design 1 1 1 1 1 1 Commercial Vitality 1 1 1 1 1 1 1 1 Historic Preservation/Adaptive Reuse 1 1 Public Art 1 1 1 1 1 1 1 1 Sustainability NOFA Ranking Weight Total 8 3 5 10 8 4 6 10 6 12 5 5 10 7 7 7.1 Average *Anticipated Donation **This unit will not be deed restricted. This will be the property manager's residence and included as part of their compensation. ATTACHMENT A: APPLICATIONS OVERVIEW 7 400 S 200 S 9 0 0 W 3 0 0 W 600 N 600 S 300 S 300 N 4 0 0 W E S t North Temple St 2 0 0 W B S t S t a t e S t 100 S I- 1 5 S B F w y 2 0 0 E 3 0 0 E 4 0 0 E 5 0 0 E 6 0 0 E I-1 5 N B F w y 700 N M a i n S t I-80 WB Fwy I-80 EB Fwy I- 2 1 5 N B F w y 2nd Ave R e d w o o d R d I- 2 1 5 S B F w y South Temple St 3rd Ave W e s t T e m p l e S t 11th Ave I- 8 0 E B I - 1 5 S B R a m p V i c t o r y R d 500 S I-80 EB I-15 NB R a m p 1 2 0 0 W Co l u m b u s S t I - 2 1 5 S B 7 0 0 N O N R a m p R e d w o o d R d 500 S 100 S M a i n S t 500 S 1 2 0 0 W ¯ ATTACHMENT B: MAP OF DEVELOPMENT LOCATIONS (1 of 2) 0 0.25 0.5 0.75 10.125 Miles Eligible HDLP Application 6, 7 - THE CATHERINE PHASE 1 AND 2 11 - PHAROS APARTMENTS 14 - 9TEN WEST 5 - 2ND SOUTH APARTMENTS 10 - PROJECT OPEN 3 8 - CITIZENS WEST 4 1 - NORBRIDGE COURT 4 - 515 TOWER - CONVERSION PHASE 1  1700 S 2100 S 1300 S 7 0 0 E 9 0 0 E 5 0 0 E 1 3 0 0 E 3 0 0 W S t a t e S t 11 0 0 E M a i n S t 7 0 0 W I - 1 5 S B F w y W e s t T e m p l e S t I- 1 5 S B C o l l e c t o r R a m p I- 1 5 N B F w y I-15 NB 900 S Off Ramp I-15 SB SR-201 WB Ramp H i g h l a n d D r 7 0 0 W 1300 S I - 1 5 N B F w y ¯0 0.25 0.5 0.75 10.125 Miles Eligible HDLP Application ATTACHMENT B: MAP OF DEVELOPMENT LOCATIONS (2 of 2) 2 - BUMPER HOUSE 12 - BOOK CLIFFS LODGE 13 - LIBERTY CORNER 15 - ALLIANCE HOUSE 3 - NEW CITY PLAZA 9 - FAIRMONT HEIGHTS I  ATTACHMENT C: RDA FINANCE COMMITTEE FUNDING RECOMMENDATIONS The RDA Finance Committee recommends that funding be allocated to projects in the order of Funding Ranking. PROJECT/APPLICANT ADDRESS WEIGHTED PROJECT PRIORITY SCORE/INTEREST RATE REDUCTION*FUNDING REQUEST PRELIMINARY TERMS** RDA Committed Funds Possible Additional RDA Funds HOME Program Income HOME Development Fund HOME ARP Development TOTAL FUNDING RECOMMENDATION FUNDING RANKING Norbridge Court Artspace Bumper House SMH Builders New City Plaza Apartments Housing Connect 515 Tower - Conversion Phase I Perpetual Housing Fund 2nd South Apartments Hermes Affordable Services, LLC The Catherine Phase 1 22 Communities The Catherine Phase 2 22 Communities Citizens West 4 Developed. By Women. & Ivan Carroll Fairmont Heights I Lincoln Avenue Communities Project Open 3 Perpetual Housing Fund Pharos Apartments Housing Authority of Salt Lake City Book Cliffs Lodge Housing Authority of Salt Lake City Liberty Corner Cowboy Partners 9Ten West Great Lakes Capital Alliance House 1805 Rebuild Alliance House & Cowboy Partners TOTAL $27,464,243 $4,241,714 $1,665,000 $6,939,710 $726,291 $1,501,608 $15,074,323 Funds Availability Total Available Recommended Funding Funds Remaining RDA Committed Funds $4,241,714 $4,241,714 $- Grey box: Applicant qualifies for but doesn't want these funds. Possible Additional RDA Funds $1,665,000 $1,665,000 $- Black box: Applicant does not qualify for these funds. HOME Program Income $6,939,710 $6,939,710 $- HOME Development Fund $726,291 $726,291 $- HOME ARP Development $1,501,608 $1,501,608 $- HOME Community Housing Development Organization Funds $351,841 $0 $ 351,841 Total Potential HDLP Funds $15,426,164 $15,074,323 $351,841 *** While reviewing applications, the Committee took into consideration their February 1, 2024 High Opportunity Area HDLP funding recommendation and agreed to maintain their submitted recommendation to fund 515 Tower – Conversion 1 with High Opportunity Area funds. The Committee’s competitive HDLP funding recommendations incorporate the previously submitted High Opportunity Area recommendation. Legend: Target Populations: 3 Missing Middle: 3 Neighborhood Safety: 1 TOTAL: 7 * Projects receive a 0.5% interest rate reduction for each included priority. Sustainability allows for a 1% or 2% reduction. The maximum reduction per development is 2%. The interest rate is calculated as follows: Base Interest Rate minus (-) Interest Rate Reductions (up to 2%) = proposed interest rate; Base interest rate shall be locked within a month of closing. Projects shall maintain project priorities and the same weighted score at closing. Deviation from Project Priorities met may require Board approval. NOTE: For all loan awards greater than $899,999, the Sustainable Development Policy requires buildings to be designed to operate without fossil fuels, but it would not restrict the ability to have backup generators for emergencies. ** Final Terms shall comply with the requirements, standard loan terms and conditions, interest- rate reductions, and all other details laid out within the FY2023-2024 Housing Development Loan Program ( HDLP) Guidelines. Changes to repayment type may occur ( hard repayment versus cash flow repayment) and shall be based on requirements listed in the HDLP Guidelines or it required by a senior lender. Changes in repayment type will cause a change in the base interest rate. Repayment priority and lien position shall be based on the size of the loan; consideration may be made for other government entity loans if required through their policies. Funds may be disbursed in a lump sum if required by senior lender(s). Funding Recommended by Finance Committee Transportation Opportunities: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 4 Family Housing: 3 Transportation Opportunities: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 6 Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 10 Target Populations: 3 Expand Opportunity: 1 Transportation Opportunities: 1 Architecture & Urban Design: 1 TOTAL: 6 Family Housing: 3 Homeownership: 3 Missing Middle: 3 Transportation Opportunities: 1 Architecture & Urban Design: 1 Public Art: 1 TOTAL: 12 Target Populations: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 TOTAL: 5 Target Populations: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 TOTAL: 5 Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 TOTAL: 10 Target Populations: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 7 8 13 $500,000 $500,000 Target Populations: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 8 Interest Rate: 1.0% Term: 30 year Amortization: 30 year Hard Repayments Interest Rate: 1.5% Term: 17 year Amortization: 40 year Hard Repayments Interest Rate: 2.5% Term: 40 year Amortization: 40 year Cash Flow Repayments Interest Rate: 2.0% Term: 15 year Amortization: 15 year Cash Flow Repayments Interest Rate: 2.0% Term: 30 year Amortization: 30 year Cash Flow Repayments Interest Rate: 2.0% Term: 16 year Amortization: 40 year Cash Flow Repayments Interest Rate: 2.0% Term: 16 year Amortization: 40 year Cash Flow Repayments Interest Rate: 1.0% Term: 15 year Amortization: 30 year Hard Repayments Interest Rate: 1.0% Acquisition Term: 2-year Balloon or conversion to Permanent: Term: 16 year Amortization: 40 year Hard Repayments Interest Rate: 1.0% Term: 18 month Balloon Repayment Interest Rate: 2.5% Term: 15 year Amortization: 40 year Cash Flow Repayments Interest Rate: 2.5% Term: 15 year Amortization: 30 year Cash Flow Repayments Interest Rate: 2.0% Term: 40 year Amortization: 40 year Cash Flow Repayments Interest Rate: 2.0% Term: 16 year Amortization: 40 year Cash Flow Repayments Interest Rate: 2.5% Term: 40 year Amortization: 40 year Cash Flow Repayments Transportation Opportunities: 1 Neighborhood Safety: 1 Public Art: 1 TOTAL: 3 Target Populations: 3 Commercial Vitality: 1 Historic Preservation/Adaptive Reuse: 1 TOTAL: 5 4 9 12 11 1 10 2 7 14 5 3 10 6 511 W 200 S $895,000 $895,000 $0 $895,000 $3,000,000 $895,000 $0*** $1,000,000 $2,420,000 Family Housing: 3 Target Populations: 3 Expand Opportunity: 1 Historic Preservation/Adaptive Reuse: 1 Transportation Opportunities: 1 Commercial Vitality: 1 TOTAL: 10 Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Public Art: 1 TOTAL: 8 269 W Brooklyn Ave 1966 S 200 E 515 E 100 S 934-948 W 200 S 1881 W N Temple 1881 W N Temple 515 W 300 N 1805 S Main St 2557 S 1100 E 529 W 400 N 915 W 200 N 1159 S W Temple 1265 S 300 W 910 W N Temple $895,000$895,000 $2,650,000 $3,000,000 $2,524,802 $1,569,441 $2,000,000 $500,000 $134,323 $1,000,000 $400,000 $3,200,000 $710,000 $880,000 $740,000 $4,500,000 $1,000,000 $740,000 $1,236,714 $1,530,677 $134,323 $2,420,000 $1,000,000 $400,000 $400,000 $1,000,000 $710,000 $710,000 $47,101 $106,608$726,291 $1,000,000 $1,732,609 $880,000 $740,000 $4,500,000  ATTACHMENT D: PROJECT SUMMARY SHEETS 11 PROJECT NAME: 1 - Norbridge Court ADDRESS: 511 W 200 S OVERVIEW Developer Artspace Request Type HDLP Loan – Competitive Project Type Rehabilitation Existing Land Use Mixed Use RDA FUNDING REQUEST Funding Request $895,000 Total Project Cost $18,774,027 RDA Loan to Cost 4.8% PROPOSED TERMS Interest Rate 1.0% Term, Amortization 30 Yr, 30 Yr Repayment Terms Hard Lien Priority Subordinate to permanent debt HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Deeply Affordable Units 90+ Energy Star Score Condition of Approval 100% Electric No Priorities Met Target Populations, Transportation Opportunities, Neighborhood Safety, Architecture & Urban Design, Commercial Vitality, Public Art TIMELINE Construction Start Winter 2024 Construction Completion Summer 2026 LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Yes Tax Credits Reserved (Y/N) Yes, 9% HOUSING UNITS Bedroom Count Total Units Market Rate 61-80% AMI 41-60% AMI <40% AMI Studio - - - - - 1 Bed - - - - - 2 Bed 59 - 7 21 31 3 Bed 3 - 1 1 1 4 Bed - - - - - Total 62 - 8 22 32 CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $12,993,686 PERMANENT SOURCES Source Amount % of Total LIHTC Equity $12,508,749 66.6% Senior Debt $3,550,000 18.9% RDA Loan $895,000 4.8% Owner Equity $808,279 4.3% Grants $500,000 2.7% Utility Rebates $475,000 2.5% Deferred Fee $36,999 0.2% Total $18,774,027 100% USES Use Amount % of Cost Hard Costs $14,081,396 75.0% Soft Costs $1,157,601 6.2% Developer Fee $1,573,813 8.4% Financing $1,048,625 5.6% Contingency $648,775 3.5% Reserves $248,818 1.3% Public Art $15,000 0.1% Total $18,774,027 100% 12 PROJECT NAME: 1 - Norbridge Court ADDRESS: 511 W 200 S PROJECT SUMMARY From Developer: “Norbridge Court is a four-story, mixed-used building with street level commercial space and 3 exclusively residential floors above. By resyndicating the LIHTC, the existing substandard housing will be substantially rehabilitated to update and completely renovate all 62 residential units and common areas. The original building was completed in 2001 and has many deficiencies that will be addressed through the rehab. Major items include replacing all appliances, updating lighting and electrical, replacing windows, and installing a highly efficient mechanical system. The rehab will also add washers/dryers to each unit, secure indoor bike storage, and provide a furnished exercise room and a computer room with free internet for tenants. The project is transit-oriented, located directly adjacent to UTA's Trax Blue line, on a bus stop on 200 South, Utah’s busiest transit street, and a block from UTA's Central Station. The building will incorporate highly efficient design measures and will include a solar array of around 350kW with the goal of net zero. All residential units in the project will remain affordable and rent restricted.” DEVELOPER SUMMARY From Developer: “Norbridge Court will be owned by Bridge Projects, LLC, the current owner of the building of which Artspace is the sole managing member. Established in 1980, Artspace has developed 7 mixed-use projects in the RDA’s Granary and Depot District project areas. Artspace's portfolio includes 278 residential units affordable for households earning between 34-80% of AMI and over 125,000 SF of commercial space occupied by artists, nonprofits, and local small businesses. Artspace's projects include 3 historic preservation projects, 2 low-income housing tax credit projects, 2 net zero energy buildings including Utah's first net zero multi-family building with onsite solar production, and the first Gold LEED certified mixed-use building in Utah. Artspace has the demonstrated ability to maintain long-term viability and compliance of affordable housing projects. As a 501(c)3 nonprofit, we do not sell our buildings and ensure they remain affordable for the community. Artspace’s President, Jessica Norie, has been the President of Artspace since 2001 and will be Principal of this project. She has 27 years of experience developing mixed-use and affordable housing projects.” 13 PROJECT NAME: 1 - Norbridge Court ADDRESS: 511 W 200 S SITE MAP PROJECT RENDERINGS 14 PROJECT NAME: 1 - Norbridge Court ADDRESS: 511 W 200 S 15 PROJECT NAME: 2 - Bumper House ADDRESS: 269 W. Brooklyn Avenue OVERVIEW Developer SMH Builders Request Type HDLP Loan – Competitive Project Type New Construction Existing Land Use Industrial RDA FUNDING REQUEST Funding Request $3,000,000 Total Project Cost $60,701,174 RDA Loan to Cost 4.9% PROPOSED TERMS Interest Rate 1.5% Term, Amortization 17 Yr, 40 Yr Repayment Terms Hard Lien Priority Subordinate to permanent debt HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Deeply Affordable Units 90+ Energy Star Score 93 100% Electric Yes Priorities Met Transportation Opportunities, Neighborhood Safety, Public Art TIMELINE Construction Start June 2024 Construction Completion June 2026 LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Yes Tax Credits Reserved (Y/N) Yes, 4% HOUSING UNITS Bedroom Count Total Units Market Rate 61-80% AMI 41-60% AMI <40% AMI Studio 182 - - 158 24 1 Bed 18 - 18 - - 2 Bed 37 - 37 - - 3 Bed - - - - 4 Bed - - - - Total 237 - 55 158 24 CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $43,280,077 PERMANENT SOURCES Source Amount % of Total Senior Debt $27,300,000 45.0% LIHTC Equity $24,187,374 39.8% OWHLF $4,000,000 6.6% RDA Loan $3,000,000 4.9% State Tax Credit $1,629,800 2.7% Deferred Fee $508,000 0.8% Utility Rebates $76,000 0.1% Total $60,701,174 100% USES Use Amount % of Cost Acquisition $6,400,000 10.5% Hard Costs $42,491,254 70.0% Developer Fee $4,451,563 7.3% Financing $5,765,834 9.5% Reserves $1,592,523 2.6% Total $60,701,174 100% 16 PROJECT NAME: 2 - Bumper House ADDRESS: 269 W. Brooklyn Avenue PROJECT SUMMARY From Developer: “Bumper House is a proposed 237-unit family LIHTC project that will be restricted to households earning 40 and 60 percent of the Area Median Income (AMI) or less. Upon completion of construction, the project will consist of 182 studio units, 18 one-bedroom units, and 37 two-bedroom units contained within one, eight-story, elevator serviced, mid-rise residential building. The site currently consists of vacant, undeveloped land. The project consists of a three-level concrete podium with lobby, support spaces and enclosed parking on level 1, residential units and parking on level 2 and residential units and a landscaped courtyard on level 3. There are 5 levels of residential units above the podium. The developed roof offers outdoor recreation and gardening. The residential units feature large areas of glass opening onto balconies and mountain views, high-end finishes including stained concrete flooring, European style cabinets, quartz stone counters, LED lighting, wardrobe systems with interchangeable storage components and stainless-steel appliances including a dishwasher, microwave/fan, oven, and refrigerator. Refer to renderings and photos section for examples of typical residential units, Attachment 2.A. and 1.G. Project Amenities. Community amenity spaces include a 700 SF community clubhouse with kitchenette, 400 SF exercise room, 1,000 SF outdoor seating area, secure bike storage in the garage, and a 1,500 SF rooftop recreation area and communal garden with raised beds. Other amenities include EV charging station, central laundry rooms on every residential level, on-site management, and common area Wi-Fi.” DEVELOPER SUMMARY From Developer: “George Hauser and Jesse Curtis are owners of the property at 269 W. Brooklyn in Salt Lake City, they own 62 % and 38% respectively. Frederick H. Olsen has been engaged to provide low-income housing tax credit advisory services for the applicants. George Hauser, SMH Builders, Inc., President George F. Hauser has over 35 years of experience in the real estate industry. Mr. Hauser is a licensed Utah General Contractor and California General Contractor and Real Estate Broker. He is a Licensed Architect in Utah, California and New York and certified by the National Council of Architectural Registration Boards (NCARB). In 1988 he formed Hauser Architects and, subsequently, SMH Builders, a licensed Utah and California General Contractor, which designs, entitles, finances and constructs his real estate development projects. Jesse Curtis, JCI, President Jesse Curtis is a real estate developer with 15 years of extensive real estate experience. Jesse has devoted the past 10 years to multi-family & commercial development in Salt Lake and Davis counties. He has over 1,000+ multi- family units under construction or in planning and architectural phases. He sits on 3 advisory and consulting boards for other local businesses or developers.” 17 PROJECT NAME: 2 - Bumper House ADDRESS: 269 W. Brooklyn Avenue SITE MAP PROJECT RENDERINGS 18 PROJECT NAME: 2 - Bumper House ADDRESS: 269 W. Brooklyn Avenue 19 PROJECT NAME: 3 - New City Plaza Apartments ADDRESS: 1966 S 200 E OVERVIEW Developer Housing Connect Request Type HDLP Loan – Competitive Project Type Rehabilitation Existing Land Use Multifamily Housing RDA FUNDING REQUEST Funding Request $895,000 Total Project Cost $89,615,717 RDA Loan to Cost 1.0% PROPOSED TERMS Interest Rate 2.5% Term, Amortization 40 Yr, 40 Yr Repayment Terms Cash Flow Lien Priority Subordinate to permanent debt HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Deeply Affordable Units 90+ Energy Star Score Condition of Approval 100% Electric No Priorities Met Target Populations, Commercial Vitality, Historic Preservation/Adaptive Reuse TIMELINE Construction Start June 22, 2022 Construction Completion November 1, 2025 LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Yes Tax Credits Reserved (Y/N) Yes, 4% HOUSING UNITS Bedroom Count Total Units Market Rate 61-80% AMI 41-60% AMI <40% AMI Studio - - - - - 1 Bed 298 - - 75 223 2 Bed 1 - - - 1 3 Bed - - - - - 4 Bed - - - - - Total 299 - - 75 224 CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $45,683,393 PERMANENT SOURCES Source Amount % of Total Senior Debt $25,700,000 28.7% LIHTC Equity $32,858,269 36.7% Developer Financing $19,983,393 22.3% Deferred Fee $3,828,231 4.3% SLC HOME Funds $2,000,000 2.2% SLCO ARPA Funds $1,400,000 1.6% Cash Flow Prior to Conversion $1,325,849 1.5% OWHLF $1,000,000 1.1% RDA Loan $895,000 1.0% State Tax Credit $500,000 0.6% Utility Rebates $95,485 0.1% Interest $29,490 0.0% Total $89,615,717 100% USES Use Amount % of Cost Acquisition $19,398,000 21.6% Hard Costs $54,876,793 61.2% Soft Costs $9,415,068 10.5% Developer Fee $4,202,211 4.7% Reserves $1,723,645 1.9% Total $89,615,717 100% 20 PROJECT NAME: 3 - New City Plaza Apartments ADDRESS: 1966 S 200 E PROJECT SUMMARY From Developer: “New City Plaza consists of two apartment towers at 1966 and 1992 South 200 East with construction of a new building connector between the two towers to connect them and to add a community space to provide services. The project consists of two (2) buildings; the first building is a seven (7) story structure. That building’s features include a leasing office, community room, activities room, centralized laundry, and maintenance shop. The second residential building is a sixteen (16) story structure. This building’s features include a leasing office, community room, activity room, laundry, and maintenance shop. The proposed project will continue to operate as senior and non-elderly disabled housing for individuals whose rents are between 37% and 59% of the area median income (AMI). As the two towers were built in 1973 and 1974, the Developer will work with SLC Benchmarking Staff to ensure Energy requirements are met to perform better than 90% of other 50-year-old high-rise buildings. In addition, New City Plaza Partners worked with ICast to establish the anticipated energy rebates from Rocky Mountain Power and Dominion Energy. Please see Exhibit G for additional information. DEVELOPER SUMMARY From Developer: “Housing Connect and its affiliate Housing Opportunities, Inc. Real Estate and Property Management Departments focuses on acquiring, developing, managing, and owning multifamily housing developments that provide those we serve with affordable housing options that allow tenants to pay no more than 30% of their income towards rents; allowing them to meet their financial obligations and to strive towards self-sufficiency. As a housing developer, we equally understand that housing (brick & stick) is only one component of building a strong community. Housing Connect and its affiliate organizations support a total of 4,981 housing units under 28 different housing programs. Housing Connect owns 524 units in the Public Housing/RAD program. The organization has a proven track record in planning and developing Section 42 Low-Income Housing Tax Credit projects to provide PSH and workforce housing to Salt Lake City and County. Housing Connect can demonstrate extensive experience, capacity, and a strong commitment to developing and long-term managing extremely-low and low-income housing projects. Please see Exhibit H for additional information.” 21 PROJECT NAME: 3 - New City Plaza Apartments ADDRESS: 1966 S 200 E SITE MAP PROJECT RENDERINGS 22 PROJECT NAME: 3 - New City Plaza Apartments ADDRESS: 1966 S 200 E 23 PROJECT NAME: 4 - 515 Tower - Conversion Phase I ADDRESS: 515 E 100 S OVERVIEW Developer Perpetual Housing Fund of Utah LLC Request Type HDLP Loan – Competitive Project Type Adaptive Reuse Existing Land Use Office RDA FUNDING REQUEST Funding Request $2,650,000 Total Project Cost $39,030,425 RDA Loan to Cost 6.8% PROPOSED TERMS Interest Rate 2.0% Term, Amortization 15 Yr, 15 Yr Repayment Terms Cash Flow Lien Priority Subordinate to permanent debt HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Family-Sized Units & Deeply Affordable Units 90+ Energy Star Score Yes 100% Electric Yes Priorities Met Family Housing, Target Populations, Expand Opportunity, Historic Preservation/Adaptive Reuse, Transportation Opportunities, Commercial Vitality TIMELINE Construction Start May 1, 2024 Construction Completion December 31, 2024 LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Yes Tax Credits Reserved (Y/N) Yes, 9% HOUSING UNITS Bedroom Count Total Units Market Rate 41-60% AMI <40% AMI Studio 40 - 25 15 1 Bed 8 - 6 2 2 Bed - - - - 3 Bed 32 - 30 2 4 Bed 16 - 15 1 Total 96 - 76 20 CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $16,960,000 PERMANENT SOURCES Source Amount % of Total Senior Debt $6,508,958 16.7% RDA Loan $2,650,000 6.8% OWHLF $1,000,000 2.6% Utility Rebates $76,800 0.2% LIHTC Equity $27,696,083 71% SLCO ARPA Grant $598,584 1.5% Deferred Fee1 $500,000 1.3% Total $39,030,425 100% USES Use Amount % of Cost Acquisition $16,000,000 41.0% Hard Costs $15,466,320 39.6% Soft Costs $1,097,907 2.8% Developer Fee $2,249,922 5.8% Financing Expense $1,921,418 4.9% Contingency $1,686,134 4.3% Reserves $608,724 1.6% Total $39,030,425 100% 1 The Developer is committing an additional $625,000 of developer fee from the project to create an equity line of credit so that residents can access their equity prior to a refinance or sale event, for a total of $1,125,000 deferred developer fee. 24 PROJECT NAME: 4 - 515 Tower - Conversion Phase I ADDRESS: 515 E 100 S RDA APPLICATION NOTES The RDA, through the City’s American Rescue Act Plan (ARPA) funds, allocated $10 million to the Perpetual Housing Fund of Utah, LLC to purchase this property for an affordable housing development with a tenant wealth building program. This $10 million will be used for the purchase of the property that would then allow PHF to develop additional projects that carry out their goals to provide 1,000 affordable homes that will help families and individuals build wealth. This is a unique model in which the developer will be contributing their own profits, which they will share with the tenants of the building. This development also applied for funding through the High Opportunity Area NOFA. The 515 Tower needs a total of $2,650,000 and if the full amount is received through the high opportunity area funding, they will not need to request funds through the competitive HDLP process. PROJECT SUMMARY From Developer: “515 Conversion Phase I a mixed-income, sustainable, adaptive-reuse project located on the East side of Salt Lake City. The project is part of multi-phase, mixed-use project on the site and will be a beacon of affordable housing in the rapidly unattainable east side of Salt Lake City. The overall project is planned to include a mixed-income daycare, local retailers, and impact-focused commercial and co-working space. This project is being developed by Perpetual Housing Fund and all 96 units in this phase will feature a shared-equity model - sharing 75% of the phase's profits and appreciation with the residents living here. 515 will incorporate an array of amenities that will benefit the lives of its residents including a fitness center, a clubhouse, a Greenbike station on site (with annual passes included at no charge), indoor bike storage, a bike-repair station, and shared outdoor space. Located within walking distance of the project is an elementary school, a core bus route, and a public park. The project will also be fully electric, contributing to better air-quality in the area and improving the health and wellbeing of its tenants. The units will also be built within the criteria for Enterprise Green Communities 2020.” DEVELOPER SUMMARY From Developer: “The project is being developed by Perpetual Housing Fund with Giv Communities as a development consultant. The team has successfully developed or consulted on over a thousand affordable housing units utilizing the Low- Income Housing Tax Credit, OWHLF, and SLC loan programs along the Wasatch Front. Recent affordable housing projects by the development team include: Exchange - Salt Lake City Project Open Phases 1 and 2 - Salt Lake City Citizens West Phase I - Salt Lake City Denver Street Apartments - Salt Lake City Pamela's Place - Salt Lake City Imagine Jefferson - Ogden Startup Crossing - Provo Harris Village Shelter and Permanent Supportive Housing – Tooele” 25 PROJECT NAME: 4 - 515 Tower - Conversion Phase I ADDRESS: 515 E 100 S SITE MAP PROJECT RENDERINGS 26 PROJECT NAME: 4 - 515 Tower - Conversion Phase I ADDRESS: 515 E 100 S 27 PROJECT NAME: 5 - 2nd South Apartments ADDRESS: 934-948 W 200 S OVERVIEW Developer Hermes Affordable Services, LLC Request Type HDLP Loan – Competitive Project Type New Construction Existing Land Use 3 Single Family Homes & 1 Duplex RDA FUNDING REQUEST Funding Request $3,000,000 Total Project Cost $37,177,859 RDA Loan to Cost 8.1% PROPOSED TERMS Interest Rate 2.0% Term, Amortization 30 Yr, 30 Yr Repayment Terms Cash Flow Lien Priority Subordinate to permanent debt HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Family-Sized Units & Deeply Affordable Units 90+ Energy Star Score Yes 100% Electric Yes Priorities Met Family Housing, Target Populations, Transportation Opportunities, Public Art TIMELINE Construction Start October 2024 Construction Completion June 2026 LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Yes Tax Credits Reserved (Y/N) Yes, 4% 1 One 2-bedroom unit will be the property manager’s residence and included as part of their compensation, therefore only 104 units will be rented at the respective AMIs to the public. HOUSING UNITS Bedroom Count Total Units Market Rate 61-80% AMI 41-60% AMI <40% A8MI Studio 36 - - 28 8 1 Bed 37 - - 31 6 2 Bed 16 1 1 - 14 1 3 Bed 16 - - 15 1 4 Bed - - - - - Total 105 1 - 88 16 CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $27,479,842 PERMANENT SOURCES Source Amount % of Total Senior Debt $11,160,000 30.0% Senior Debt $1,250,000 3.4% RDA Loan $3,000,000 8.1% OWHLF HOME $2,000,000 5.4% LIHTC Equity $15,772,525 42.4% State Tax Credit Equity $2,899,710 7.8% Deferred Fee $853,659 2.3% Solar Equity $166,965 0.4% Rocky Mtn Rebates $75,000 0.2% Total $37,177,859 100% USES Use Amount % of Cost Land $3,120,100 8.6% Hard Costs $22,162,722 59.6% Soft Costs $1,699,723 4.6% Developer Fee $3,232,424 8.7% Financing Expense $4,482,474 12.1% Contingency $2,074,923 5.6% Reserves $315,493 0.8% Total $37,177,859 100% 28 PROJECT NAME: 5 - 2nd South Apartments ADDRESS: 934-948 W 200 S PROJECT SUMMARY From Developer: “2nd Street Apartments will appeal to a wide variety of households and provide larger units that are mostly missing in the Fairpark Neighborhood. While most of the new affordable and market rate housing in the Fairpark Neighborhood is providing studio and one-bedroom apartments, 2nd South will also provide two- and three- bedroom homes. In addition to the variety of apartment sizes, we will appeal to even more households with rents from 40% of area median income to 60% of AMI. Located in the Fairpark neighborhood, 2nd South will provide much needed affordable housing in this quickly transforming part of Salt Lake City. The site is only 1.3 miles from the heart of downtown and 2 miles from the international airport. The Jackson/Euclid TRAX Sta�on is only a half mile north of the site while multiple bus stops are a third of a mile to the south along 400S/Poplar Grove Blvd S. Parks and the Folsom Trail are located nearby.” DEVELOPER SUMMARY From Developer: “EXECUTIVE TEAM Charles A. Schmid Chief Executive Officer Charles has been with Chelsea since 1986 and serves as President of Chelsea’s affiliated general contractor, Emmerson Construction. He applies experience with real estate finance, development, and management to facilitate the needs of both companies. Charles, a licensed general contractor, has supervised the construction of more than 8,000 units throughout California and Arizona. With a degree from UC San Diego, he has a thorough understanding of the life cycle of apartment development, from feasibility analysis through lease-up. Cheri Hoffman President Cheri has been part of the Chelsea development team since 1994 and has participated in the development of close to 100 affordable apartment communities, involving over $2 billion in financing. She is an authority in financial modeling incorporating tax credits and tax-exempt bonds, and has extensive experience securing multiple forms of local, state, federal and private funding sources. She is involved throughout the development process, from early feasibility analysis to lease up and stabilization. Cheri received her degree in Accounting from California State University in Fullerton and continued her education with finance studies at California Polytechnic University in Pomona. Eric Paul Chief Financial Officer Eric has over 20 years of experience in a variety of areas of the real estate industry including real estate investment and development, finance, construction, and asset management. He oversees financial planning and analysis, financial reporting, treasury, tax strategy and risk management for Chelsea Investment Corporation, Emmerson Construction, CIC Management and affiliates. Eric began his professional career at Ernst & Young and most recently served as Finance Director for Southwest Value Partners. Eric graduated with honors from San Jose State University where he earned a Bachelor’s in Business Administration; he also holds a Master’s in Accounting from the University of Virginia. Eric is a Certified Public Accountant and real estate broker.  PROJECT NAME: 5 - 2nd South Apartments ADDRESS: 934-948 W 200 S Jim Andersen Chief Financial Officer Jim serves as the CFO of Chelsea Investment Corporation. He has over 30 years of experience in a variety of roles in the Real Estate industry. Proficient in both Financial Management and Development, Jim has served as a Development Partner and executive for Legacy Partners, Del Mar Development, Trammell Crow Company, and NMS Properties. In his career, he has sourced, entitled, financed and/or completed several thousand units in California. In addition, Jimwas Chief Financial Officer for Bay Apartment Communities (predecessor to Avalon Bay), and Trammell Crow Company. Jim is very active in the industry as a member of ULI and NMHC. He earned his CPA while at Peat Marwick and Company and graduated from Loyola Marymount University with a Bachelor of Science in Accounting. MANAGEMENT TEAM Heidi W. Mather Director of Development Heidi W. Mather has been a real estate professional for over 30 years. Early in her career, Heidi’s responsibilities included land use planning for the city of San Diego and private sector entitlement processing. For the last 22 years she has focused on market-rate apartment development. Heidi has been responsible for the entire life cycle of a deal: due diligence, investment approvals, project design, consultant management, the entitlement and public approval process, permit processing, government and stakeholder interface, capitalization, and loan management. She has also acted as the Owner’s Representative during the construction and lease-up phases and assisted with project disposition. Heidi has developed nearly 9,000 homes in California and Arizona represented by a variety of product types with an aggregate capitalization value in excess of $2.5 billion. With an Urban Studies and Planning degree from the University of California, San Diego, she has a deep understanding of the multi-family development process. Shannon Vanderhei Capital Transactions Manager Shannon Vanderhei has over 15 years of experience working for real estate development, syndication, lending, and property management companies. Her experience includes acquisitions, dispositions, financing, property management, asset management, construction, rehabilitation, and due diligence. Her role at Chelsea Investment Corporation includes financing and financial modeling of projects along with managing the closing and conversion transactions. Shannon earned a B.B.A. in Real Estate and Marketing from the University of Wisconsin at Milwaukee. Jeffrey A. Ryan Senior Development Manager Jeff has over 23 years of experience in affordable housing development and real estate, working with both non- profit and for-profit developers. He has managed a range of multifamily projects for large families, mixed-use, and special needs housing. His experience developing spans across multiple states. As Senior Development Executive, he leads each project from conception to completion, and his responsibilities include due diligence, entitlements, design team management, loan closing, and funding applications. Jeffrey earned his B.A. in Political Science and studied Urban Development Planning at Indiana University-Indianapolis.” 30 PROJECT NAME: 5 - 2nd South Apartments ADDRESS: 934-948 W 200 S SITE MAP PROJECT RENDERINGS 31 PROJECT NAME: 5 - 2nd South Apartments ADDRESS: 934-948 W 200 S 32 PROJECT NAME: 6 - The Catherine Phase 1 ADDRESS: 1881 W North Temple OVERVIEW Developer 22 Communities Request Type HDLP Loan – Competitive Project Type New Construction Existing Land Use Industrial RDA FUNDING REQUEST Funding Request $2,524,802 Total Project Cost $69,452,555 RDA Loan to Cost 3.6% PROPOSED TERMS Interest Rate 2.0% Term, Amortization 16 Yr, 40 Yr Repayment Terms Cash Flow Lien Priority Subordinate to permanent debt HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Family-Sized Units 90+ Energy Star Score Condition of Approval 100% Electric Yes Priorities Met Transportation Opportunities, Architecture & Urban Design, Commercial Vitality, Public Art TIMELINE Construction Start September 2024 Construction Completion July 2026 LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Yes Tax Credits Reserved (Y/N) No, 4% HOUSING UNITS Bedroom Count Total Units Market Rate 61-80% AMI 41-60% AMI <40% AMI Studio 80 - - 80 - 1 Bed 44 - - 44 - 2 Bed 80 - - 80 - 3 Bed 24 - - 24 - 4 Bed - - - - - Total 228 - - 228 - CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $52,189,043 PERMANENT SOURCES Source Amount % of Total Senior Debt $27,541,202 39.7% OWHLF $3,000,000 4.3% SLC RDA $2,524,802 3.6% LIHTC Equity $30,627,027 44.1% State Tax Credit Equity $4,759,524 6.9% Deferred Fee $1,000,000 1.4% Total $69,452,555 100% USES Use Amount % of Cost Acquisition $5,710,000 8.2% Hard Costs $43,906,872 63.2% Soft Costs $3,225,662 4.6% Developer Fee $5,636,749 8.1% Financing Expense $7,889,000 11.4% Contingency $2,504,272 3.6% Reserves $580,000 0.8% Total $69,452,555 100% 33 PROJECT NAME: 6 - The Catherine Phase 1 ADDRESS: 1881 W North Temple PROJECT SUMMARY From Developer: “This phase of the project will include 228 units, all of which will be restricted units. There will be 80 studio units, 44 one-bedroom units, 80 two-bedroom units, and 24 three-bedroom units. The units will be available to tenants living at 60% AMI or below. The project will provide eighteen (18) "Type A" units for persons with long-term mobility impairments.” DEVELOPER SUMMARY From Developer: “Jake has over a decade of development, design, and project management experience with public, for-profit, and nonprofit entities. While at the Salt Lake City Housing and Neighborhood Development Department, Jake planned the disposition and redevelopment of city-owned assets and oversaw CDBG funded construction projects. Following that, Jake spearheaded the creation and early growth of CW Urban, a fast-growing Utah development company. He stayed on as the Director of Acquisition and Development, overseeing acquisitions, entitlements, and design for all infill and mixed-use developments. Next, Jake was the Director of Real Estate Development at Neighborhood Housing Solutions, a non-profit Real Estate Development company. He was responsible for all single-family subdivisions and multi-family tax credit developments. This work included the acquisition and initial concept planning for a 100-acre master-planned community in Smithfield Utah, and the development and management of a LIHTC multi-family portfolio. Most recently he was a managing member of Defy Co.labs where he was the Director of Development and Design and spearheaded a 140- unit LIHTC project called Colony B along with multiple other entitlement projects. Jake has been the development lead on over 20 development projects and underwritten hundreds more equating to over 1000 units over multiple Utah communities. Each project has had its unique challenges from environmental clean up to mechanical parking garages or unique entitlement processes. Jake has faced each challenge with creativity, passion and joy for the privilege to participate in the building of communities where people will live out their lives. Jake holds a bachelor’s degree in Business Management, a master’s degree in Real Estate Development, and an Urban Planning Certificate from the University of Utah.” 34 PROJECT NAME: 6 - The Catherine Phase 1 ADDRESS: 1881 W North Temple SITE MAP PROJECT RENDERINGS 35 PROJECT NAME: 6 - The Catherine Phase 1 ADDRESS: 1881 W North Temple 36 PROJECT NAME: 7 - The Catherine Phase 2 ADDRESS: 1881 W North Temple OVERVIEW Developer 22 Communities Request Type HDLP Loan – Competitive Project Type New Construction Existing Land Use Industrial RDA FUNDING REQUEST Funding Request $1,569,441 Total Project Cost $45,194,612 RDA Loan to Cost 3.5% PROPOSED TERMS Interest Rate 2.0% Term, Amortization 16 Yr, 40 Yr Repayment Terms Cash Flow Lien Priority Subordinate to permanent debt HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Family Sized Units 90+ Energy Star Score Condition of Approval 100% Electric Yes Priorities Met Family Housing, Transportation Opportunities, Commercial Vitality, Public Art TIMELINE Construction Start September 2024 Construction Completion July 2026 LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Yes Tax Credits Reserved (Y/N) No, 4% HOUSING UNITS Bedroom Count Total Units Market Rate 61-80% AMI 41-60% AMI <40% AMI Studio 45 - - 45 - 1 Bed 30 - - 30 - 2 Bed 45 - - 45 - 3 Bed 24 - - 24 - 4 Bed - - - - - Total 144 - - 144 - CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $37,095,412 PERMANENT SOURCES Source Amount % of Total Senior Debt $17,033,754 37.7% OWHLF $2,500,000 5.5% SLC RDA $1,569,441 3.5% LIHTC Equity $20,011,725 44.3% State Tax Credit Equity $3,079,692 6.8% Deferred Fee $1,000,000 2.2% Total $45,194,612 100% USES Use Amount % of Cost Acquisition $3,600,000 8.0% Hard Costs $29,314,459 64.9% Soft Costs $2,169,453 4.8% Developer Fee $4,014,863 8.9% Financing Expense $4,062,000 9.0% Contingency $1,733,837 3.8% Reserves $300,000 0.7% Total $45,194,612 100% 37 PROJECT NAME: 7 - The Catherine Phase 2 ADDRESS: 1881 W North Temple PROJECT SUMMARY From Developer: “22 Communities LLC (22) (Applicant, Sponsor, Developer, Owner) and KTG Holdings, LLC (KTG) acting as the Sponsor, and Developer, Owner (collectively as "Parties”) are pleased to apply for the April 2024 Private Activity Bond round for the new construction of The Catherine Phase 1. The Catherine will be a 2-phase 2-building 378 unit apartment project directly southeast of the 1940 W North Temple Trax station at 1881 W North Temple, Salt Lake City, Utah. Of the 378 units listed above,144 units will be a part of this Phase 2 Application and will be restricted to incomes at 60% of the Area Median Income (AMI). DEVELOPER SUMMARY From Developer: “Jake has over a decade of development, design, and project management experience with public, for-profit, and nonprofit entities. While at the Salt Lake City Housing and Neighborhood Development Department, Jake planned the disposition and redevelopment of city-owned assets and oversaw CDBG funded construction projects. Following that, Jake spearheaded the creation and early growth of CW Urban, a fast-growing Utah development company. He stayed on as the Director of Acquisition and Development, overseeing acquisitions, entitlements, and design for all infill and mixed-use developments. Next, Jake was the Director of Real Estate Development at Neighborhood Housing Solutions, a non-profit Real Estate Development company. He was responsible for all single-family subdivisions and multi-family tax credit developments. This work included the acquisition and initial concept planning for a 100-acre master-planned community in Smithfield Utah, and the development and management of a LIHTC multi-family portfolio. Most recently he was a managing member of Defy Co.labs where he was the Director of Development and Design and spearheaded a 140- unit LIHTC project called Colony B along with multiple other entitlement projects. Jake has been the development lead on over 20 development projects and underwritten hundreds more equating to over 1000 units over multiple Utah communities. Each project has had its unique challenges from environmental clean up to mechanical parking garages or unique entitlement processes. Jake has faced each challenge with creativity, passion and joy for the privilege to participate in the building of communities where people will live out their lives. Jake holds a bachelor’s degree in Business Management, a master’s degree in Real Estate Development, and an Urban Planning Certificate from the University of Utah.” 38 PROJECT NAME: 7 - The Catherine Phase 2 ADDRESS: 1881 W North Temple SITE MAP PROJECT RENDERINGS 39 PROJECT NAME: 7 - The Catherine Phase 2 ADDRESS: 1881 W North Temple 40 PROJECT NAME: 8 - Citizens West 4 ADDRESS: 515 W 300 N OVERVIEW Developer Developed. By Women. & Ivan Carroll Request Type HDLP Loan – Competitive Project Type New Construction Existing Land Use Office RDA FUNDING REQUEST Funding Request $400,000 Total Project Cost $25,514,260 RDA Loan to Cost 1.6% PROPOSED TERMS Interest Rate 1.0% Term, Amortization 15 Yr, 30 Yr Repayment Terms Hard Lien Priority Subordinate to permanent debt HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Family-Sized Units & Deeply Affordable Units 90+ Energy Star Score Yes 100% Electric Yes Priorities Met Family Housing, Target Populations, Transportation Opportunities, Architecture & Urban Design, Commercial Vitality, Public Art TIMELINE Construction Start October 1, 2024 Construction Completion May 1, 2026 LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Yes Tax Credits Reserved (Y/N) Yes, 9% HOUSING UNITS Bedroom Count Total Units Market Rate 61-80% AMI 41-60% AMI <40% AMI Studio 10 - - 5 5 1 Bed - - - - - 2 Bed 16 1 - 12 3 3 Bed 20 - - 19 1 4 Bed 6 1 - 4 1 Total 52 2 - 40 10 CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $9,715,984 PERMANENT SOURCES Source Amount % of Total Senior Debt $3,591,261 14.1% RDA Loan $400,000 1.6% Utility Rebates $15,600 0.1% LIHTC Equity $20,007,399 78.4% SLCO ARPA Grant $1,000,000 3.9% Deferred Fee $500,000 2.0% Total $25,514,260 100% USES Use Amount % of Cost Acquisition $2,420,000 9.5% Hard Costs $17,298,836 67.8% Soft Costs $726,690 2.8% Developer Fee $2,032,901 8.0% Financing Expense $1,689,432 6.6% Contingency $998,006 3.9% Reserves $348,385 1.4% Total $25,514,260 100% 41 PROJECT NAME: 8 - Citizens West 4 ADDRESS: 515 W 300 N PROJECT SUMMARY From Developer: “Citizens West 4 completes the Citizens West block, bringing sorely-needed affordable housing with retail and recreational amenities to a rapidly gentrifying part of SLC. This phase will provide homes for large-household, multi-generational, refugee, and un-housed populations that have a particularly difficult time finding suitable housing in our state. This transit-oriented project provides quick access to public transit, employment, and schools, and is a perfect location for affordable family housing. This phase will provide additional outdoor recreation amenities such as a sport court and gym while maintaining access to those already built by the previous phases of the overall project. Together with a local community serving non-profit, the project will build a public- facing plaza that connects the street outside to the recreational and outdoor uses on the site. The property will be fully-electric, utilizing high efficiency heat pump technology for space and water heating/cooling. International Rescue Committee (IRC) will provide access to services for the refugees and formerly homeless individuals living at the property.” DEVELOPER SUMMARY From Developer: “The project team has successfully completed several 9% tax credit projects including Imagine Jefferson (phases 1 & 2), North Sixth, Startup Crossing, Project Open (phases 1 & 2), and Diamond Rail Apartments (OBA Citizens West phase 1 ). The owners and developers of the project have a track record of more than a decade in utilizing the LIHTC program to bring high-quality affordable housing to multiple communities, particularly on the west side of SLC. Now partnering with Developed. By Women., a non-profit focusing on elevating female decision-making and ownership in real estate, the team brings a well-rounded, experienced, and diverse background to the project. Evergreen Management Group (EMG) will do property management, having section 42 compliance experience for decades on numerous different properties across the state of Utah.” 42 PROJECT NAME: 8 - Citizens West 4 ADDRESS: 515 W 300 N SITE MAP PROJECT RENDERINGS 43 PROJECT NAME: 8 - Citizens West 4 ADDRESS: 515 W 300 N 44 PROJECT NAME: 9 - Fairmont Heights I ADDRESS: 2257 S 1100 E OVERVIEW Developer Lincoln Avenue Communities Request Type HDLP Loan – Competitive Project Type New Construction Existing Land Use Office RDA FUNDING REQUEST Funding Request $3,200,000 Total Project Cost $34,619,153 RDA Loan to Cost 9.2% PROPOSED TERMS Interest Rate 1% Term, Amortization Acq: 2 Yr, Balloon or Conversion Perm: 16 Yr, 40 Yr Repayment Terms Hard for construction to perm Lien Priority Subordinate to permanent debt HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Deeply Affordable Units 90+ Energy Star Score Condition of Approval 100% Electric Yes Priorities Met Target Populations, Expand Opportunity, Transportation Opportunities, Architecture & Urban Design TIMELINE Acquisition May 1, 2024 Construction Start October 2025 HOUSING UNITS Bedroom Count Total Units Market Rate 61- 80% AMI 41- 60% AMI <40% AMI Studio - - - - - 1 Bed 40 - 7 15 18 2 Bed 15 - 2 4 9 3 Bed - - - - - 4 Bed - - - - - Total 55 - 9 19 27 LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Yes, 9% Tax Credits Reserved (Y/N) No ACQUISITION SOURCES Source Amount % of Total RDA -HDLP Competitive $3,200,000 45.1% RDA High Opp Funds $2,700,000 38.1% HASLC Cash $800,000 11.3% LAC Cash $390,000 5.5% Total $7,090,000 100% ACQUISITION USES Source Amount % of Costs Acquisition $7,000,000 98.7% Insurance $40,000 0.6% Closing Costs $50,000 0.7% Total $7,090,000 100% CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $21,767,665 PERMANENT SOURCES Source Amount % of Total Senior Debt $3,790,000 11.1% RDA Loan $3,200,000 9.2% Utility Rebates $142,500 .42% LIHTC Equity $26,147,384 76.9% Deferred Fee $1,339,296 3.6% GP Capital Contribution $100 0.0% Total $34,619,280 100% PERMANENT USES Use Amount % of Cost Acquisition $3,900,000 11.3% Hard Costs $23,888,751 69.0% Soft Costs $898,000 2.6% Developer Fee $3,113,699 9.0% Financing Expense $2,456,398 7.1% Contingency $0 0.0% Reserves $362,432 1.0% Total $34,619,280 100% 45 PROJECT NAME: 9 - Fairmont Heights I ADDRESS: 2257 S 1100 E RDA APPLICATION NOTES This project also applied for $2,700,000 for their Fairmont Heights II project through the High Opportunity Area HDLP process. Both phases of the project will be located on the same parcel with Phase 1 being built first and Phase 2 to follow. The developer is seeking an acquisition to permanent financing loan, which means initial funds would be used to buy the property, but the developer would need to obtain tax credits, financing, and building approvals within 2 years. If successful, they would be able to convert their acquisition loan to a longer-term permanent financing loan. If they are not successful, they will be required to pay back the loan at the end of the acquisition loan term. This project is seeking funding from both sources of funds. PROJECT SUMMARY From Developer: “Fairmont Heights I has engaged the seasoned LIHTC architectural group of Encompass to design a high quality, cost effective mid rise building (1 building, 2 stories of structured parking and 5 stories of wood constructed units above the parking deck, serviced by an elevator) that blends well with the surrounding neighborhood, paying particular attention to the relationship of the ground floor space and the adjacent Fairmont Park. This site is an A+ location for an affordable site. The site presents an incredible opportunity to tie into the neighborhood fabric and locate housing near transit, employment, recreation and services. Both phases are designed to mirror the surrounding neighborhood. The project transitions into the neighborhood using elements in both the contemporary form of the building and the materials that clad its skin. The space on the ground floor along Simpson Avenue and 1100 S will activate the building to the public and bring the design into the neighborhood. The pedestrian nature of the activities within and the rhythm of the living units help the project feel comfortable.” DEVELOPER SUMMARY From Developer: “Fairmont Heights Apartments, LP is a Utah limited partnership that blends both local and national LIHTC development experience. Lincoln Avenue Capital (“LAC”) is the project sponsor with national experience in the development and ownership of affordable housing. LAC was formed in 2016 and currently has a portfolio of over 22,000 units over 20 states across the country. LAC's extensive experience is specific to the development and acquisition of LIHTC multifamily projects across the US. This includes taking a project from the conceptual stage, through awarding of tax credits (for LIHTC projects), negotiating agreements with equity investors and lenders, construction, and final hand off to the property management company, Asset Living/Shelton Residential. LAC is responsible for the development of affordable multifamily, independent senior living, tax credit acquisition and rehabilitation. Please see attached 2022 Impact Report for more information on LAC.” 46 PROJECT NAME: 9 - Fairmont Heights I ADDRESS: 2257 S 1100 E SITE MAP PROJECT RENDERINGS 47 PROJECT NAME: 9 - Fairmont Heights I ADDRESS: 2257 S 1100 E 48 PROJECT NAME: 10 - Project Open 3 ADDRESS: 529 W 400 N OVERVIEW Developer Perpetual Housing Fund of Utah LLC Request Type HDLP Loan – Competitive Project Type New Construction Existing Land Use Vacant RDA FUNDING REQUEST Funding Request $710,000 Total Project Cost $7,170,000 RDA Loan to Cost 9.9% PROPOSED TERMS Interest Rate 1.0% Term, Amortization 18-month Repayment Terms Balloon Repayment Lien Priority Subordinate to permanent debt HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Family-Sized Units 90+ Energy Star Score Yes 100% Electric Yes Priorities Met Family Housing, Homeownership, Missing Middle, Transportation Opportunities, Architecture & Urban Design, Public Art TIMELINE Construction Start July 1, 2024 Construction Completion May 1, 2025 LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) No Tax Credits Reserved (Y/N) N/A HOUSING UNITS Bedroom Count Total Units Market Rate 61-80% AMI 41-60% AMI <40% AMI Studio - - - - - 1 Bed 4 - 4 - - 2 Bed - - - - - 3 Bed 12 - 12 - - 4 Bed 7 - 7 - - Total 23 - 23 - - CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $5,328,480 PERMANENT SOURCES Source Amount % of Total Senior Debt $5,328,480 74.3% RDA Loan $710,000 9.9% Utility Rebates $18,400 0.3% SLCO ARPA Grant $813,120 11.3% Donated Fee $300,000 4.2% Total $7,170,000 100% USES Use Amount % of Cost Acquisition $483,000 6.7% Hard Costs $5,356,350 74.7% Soft Costs $650,000 9.1% Developer Fee $300,000 4.2% Financing Expense $120,000 1.7% Contingency $250,000 3.5% Public Art $10,650 0.1% Total $7,170,000 100% 49 PROJECT NAME: 10 - Project Open 3 ADDRESS: 529 W 400 N PROJECT SUMMARY From Developer: Project Open is a transit-oriented, carbon-neutral, mixed-income, development in Salt Lake City’s rapidly gentrifying Guadalupe neighborhood. It serves as a diverse home to over 200 households that span across income, family size, and demographic spectrums. Phase 3 of the development looks to further this effort by developing homes for families at a price-point that is currently not available in Salt Lake City’s market. According to Kem C. Gardner Institute, the mortgage payment in October 2022 for the median price single-family in the Wasatch Front Counties was $4,276/month. This is double the payment that is affordable to a family making 80% of AMI and double the payment amount that new three-bedroom condos in this proposal will provide. This project will provide 23 new condos and town homes that are affordable to individuals and families making 80% of AMI. The development team has discounted the land value and eliminated its fees to bring this product to market. We see this as a demonstration project, showing a path for new construction, for-sale, unsubsidized housing product that is actually affordable to those currently unable to afford a home. DEVELOPER SUMMARY From Developer: The project is being developed by the Perpetual Housing Fund. The team has successfully developed or consulted on over a thousand affordable housing units utilizing the Low-Income Housing Tax Credit, OWHLF, and SLC loan programs along the Wasatch Front. Recent affordable housing projects by the development team include: Exchange – Salt Lake City, Pamela’s Place – Salt Lake City, Imagine Jefferson – Ogden, Startup Crossing – Provo, and Harris Village Shelter and Permanent Supportive Housing – Tooele. The development team also has experience developing for-sale attached housing across the Salt Lake Valley. SITE MAP 50 PROJECT NAME: 10 - Project Open 3 ADDRESS: 529 W 400 N PROJECT RENDERINGS 51 PROJECT NAME: 11 - Pharos Apartments ADDRESS: 915 W 200 N OVERVIEW Developer Housing Authority of Salt Lake City Request Type HDLP Loan – Competitive Project Type New Construction Existing Land Use Vacant Single-Family Home RDA FUNDING REQUEST Funding Request $880,000 Total Project Cost $10,327,863 RDA Loan to Cost 8.5% PROPOSED TERMS Interest Rate 2.5% Term, Amortization 15 Yr, 40 Yr Repayment Terms Cash Flow Lien Priority Subordinate to primary lender HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Deeply Affordable 90+ Energy Star Score Yes 100% Electric Yes Priorities Met Target Populations, Transportation Opportunities, Neighborhood Safety TIMELINE Construction Start April 5, 2024 Construction Completion June 1, 2025 LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) No Tax Credits Reserved (Y/N) N/A HOUSING UNITS Bedroom Count Total Units Market Rate 61-80% AMI 41-60% AMI <40% AMI Studio - - - - - 1 Bed 34 - 10 19 5 2 Bed - - - - - 3 Bed - - - - - 4 Bed - - - - Total 34 - 10 19 5 CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $6,403,275 PERMANENT SOURCES Source Amount % of Total Senior Debt $5,013,745 48.5% RDA Loan $880,000 8.5% OWHLF $500,000 4.8% Utility Rebates $21,500 0.2% Office of Homeless Services Grant $2,000,000 19.4% Deferred Fee $462,618 4.5% Owner Equity $1,450,000 14.0% Total $10,327,863 100% USES Use Amount % of Cost Acquisition $1,400,000 13.6% Hard Costs $6,737,937 65.2% Soft Costs $283,000 2.7% Developer Fee $929,570 9.0% Financing Expense $168,742 1.6% Contingency $393,215 3.8% Reserves $415,399 4.0% Total $10,327,863 100% 52 PROJECT NAME: 11 - Pharos Apartments ADDRESS: 915 W 200 N PROJECT SUMMARY From Developer: “The Housing Authority of Salt Lake City is proposing a new 34-unit apartment complex called Pharos Apartments. Pharos will have 33 resident units, one live-in managers unit and a dedicated service space/wellness room. Located just a few blocks from the Jackson/Euclid Trax station and adjacent to the Utah State Fairgrounds, this property is situated in a growth area that provides easy access to the Downtown corridor. Additionally, this property is just blocks away from a large Rocky Mountain Power property that is slated for significant retail and entertainment development. This unique location that is both transit oriented and in an opportunity zone, will provide residents the convenience of living in close proximity to services, shopping, recreation and employment. Five of the units at this unique property will be permanent supportive housing with appropriate direct services and service connections to support a McKinney–Vento homeless population that may have physical or mental challenges or have a dual-diagnosis. The property will also have 3 ADA units for any residents that may also have physical or mobility related challenges. Additionally, the property will serve additional low income and workforce tenants by providing units aimed at the 41-60% AMI population and some units aimed at 61-80% AMI tenants. The 450 square foot one-bedroom units will be perfectly suited to low and very low-income tenants in the 30-80% AMI range buy providing an excellent entry into the Salt Lake rental market in an up-and-coming neighborhood with convenient access to public transportation. The low rent threshold and priority population will allow the development to directly address several pressing community needs. All apartments will be well equipped with amenities such as air conditioning, energy star appliances, microwaves and vent hoods, self-cleaning ovens, garbage disposals, water saving fixtures, ample light and balconies that give each unit some private outdoor space. Efficient design, ample storage, durable and quality finishes and purposeful community spaces combine to make a welcoming and healing environment for residents calling the development home.” DEVELOPER SUMMARY From Developer: “Housing Assistance Management Enterprise (HAME) will act as development consultant for the development of the proposed property. Over the last several years HAME has constructed and managed hundreds of LIHTC affordable housing units that vary in style, population served and location throughout Salt Lake City. Our familiarity and knowledge of the local building process will help facilitate the completion of this project. HAME is the nonprofit affiliate of the Housing Authority of Salt Lake City; an entity that is consistently cited as one of the most financially sound and well-managed public housing authorities in the U.S.” 53 PROJECT NAME: 11 - Pharos Apartments ADDRESS: 915 W 200 N SITE MAP PROJECT RENDERINGS 54 PROJECT NAME: 11 - Pharos Apartments ADDRESS: 915 W 200 N 55 PROJECT NAME: 12 - Book Cliffs Lodge ADDRESS: 1159 S W Temple OVERVIEW Developer Housing Authority of Salt Lake City Request Type HDLP Loan – Competitive Project Type New Construction Existing Land Use Vacant RDA FUNDING REQUEST Funding Request $740,000 Previous RDA Commitment $1,000,000 Total Project Cost $17,424,284 RDA Loan to Cost 10% PROPOSED TERMS Interest Rate 2.5% Term, Amortization 15 Yr, 30 Yr Repayment Terms Cash Flow Lien Priority Subordinate to primary lender HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Deeply Affordable 90+ Energy Star Score Yes 100% Electric Yes Priorities Met Target Populations, Transportation Opportunities, Neighborhood Safety TIMELINE Construction Start April 15, 2024 Construction Completion June 15, 2025 LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) No Tax Credits Reserved (Y/N) N/A HOUSING UNITS Bedroom Count Total Units Market Rate 61-80% AMI 41-60% AMI <40% AMI Studio - - - - - 1 Bed 55 6 20 20 9 2 Bed - - - - - 3 Bed - - - - - 4 Bed - - - - - Total 55 6 20 20 9 CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $10,315,400 PERMANENT SOURCES Source Amount % of Total Senior Debt $9,230,757 53.0% RDA Loans $1,740,000 10.0% OWHLF $1,000,000 5.7% Owner Equity $1,112,634 6.4% Utility Rebates $39,000 0.2% Federal Home Loan Bank $1,000,000 5.7% SLC Grant $3,000,000 17.2% Deferred Fee $301,893 1.7% Total $17,424,284 100% USES Use Amount % of Cost Acquisition $1,700,000 9.6% Hard Costs $13,995,238 79.0% Soft Costs $507,676 2.9% Developer Fee $701,893 4.0% Financing Expense $66,424 0.4% Contingency $293,215 1.7% Reserves $159,838 0.9% Total $17,424,284 100% 56 PROJECT NAME: 12 - Book Cliffs Lodge ADDRESS: 1159 S W Temple PROJECT SUMMARY From Developer: “The Housing Authority of Salt Lake City is proposing a new 55-unit apartment complex named Book Cliffs Lodge. Book Cliffs Lodge will feature one-bedroom units for low income individuals that live in an area of Salt Lake City that has experienced substantial growth in recent years. The unit mix at Book Cliffs Lodge will be composed of 55 standard one-bedroom units. The development will provide a mix of 30% up to 80% of AMI rents. The broad range of rent and income targeting will allow the development to address the community need. Additionally, through the tenant selection plan, the development is committed to setting aside 5 units for persons experiencing homelessness and 5 units for veterans. All apartments will be well equipped with amenities such as air conditioning, energy star appliances, microwaves and vent hoods, self-cleaning ovens, garbage disposals and water saving fixtures. The project is located at 1159 South West Temple in Salt Lake City, which will provide residents the convenience of living in close proximity to services, shopping, recreation and employment. The site is within an easy walk to public transportation, including the Ball Park Station TRAX line, which is 0.3 miles from the site. Additionally, the site has achieved a walk-score of 83, or "very walkable", which will allow residents to accomplish most errands by foot if they choose. Within a half mile radius of the site, there are many restaurants, parks, grocery stores, and numerous employment opportunities.” DEVELOPER SUMMARY From Developer: “Housing Assistance Management Enterprise (HAME) will act as development consultant for the development of the proposed properties. As the landowner, HAME has/will executed a land lease option for the property and will oversee the entitlement process as well as provide local support. Over the last several years HAME has constructed and managed hundreds of LIHTC affordable housing units that vary in style, population served and location throughout Salt Lake City. Our familiarity and knowledge of the local building process will help facilitate the entitlement, permitting and plan review processes with the City. HAME is the nonprofit affiliate of the Housing Authority of Salt Lake City; an entity that is consistently cited as one of the most financially sound and well- managed public housing authorities in the U.S. Recently, HAME was awarded tax credits in partnership with Volunteers of America for a special needs renovation project in Salt Lake City.” 57 PROJECT NAME: 12 - Book Cliffs Lodge ADDRESS: 1159 S W Temple SITE MAP PROJECT RENDERINGS 58 PROJECT NAME: 12 - Book Cliffs Lodge ADDRESS: 1159 S W Temple 59 PROJECT NAME: 13 - Liberty Corner ADDRESS: 1265 S 300 W OVERVIEW Developer Cowboy Partners Request Type HDLP Loan – Competitive Project Type New Construction Existing Land Use Commercial RDA FUNDING REQUEST Funding Request $4,500,000 Total Project Cost $117,613,798 RDA Loan to Cost 3.8% PROPOSED TERMS Interest Rate 2.0% Term, Amortization 40 Yr, 40 Yr Repayment Terms Cash Flow Lien Priority Subordinate to permanent debt HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Family-Sized Units & Deeply Affordable Units 90+ Energy Star Score Yes 100% Electric Yes Priorities Met Family Housing, Target Populations, Transportation Opportunities, Neighborhood Safety, Architecture & Urban Design, Commercial Vitality TIMELINE Construction Start June 12, 2023 Construction Completion June 11, 2026 LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Yes Tax Credits Reserved (Y/N) Yes, 4% HOUSING UNITS Bedroom Count Total Units Market Rate 61-80% AMI 41-60% AMI <40% AMI Studio - - - - - 1 Bed - - - - - 2 Bed 96 - 40 34 22 3 Bed 80 - 30 32 18 4 Bed 24 - 8 12 4 Total 200 - 78 78 44 CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $27,151,960 PERMANENT SOURCES Source Amount % of Total Senior Debt $27,151,960 23.1% SLCO HTF $6,976,632 5.9% RDA Loan $4,500,000 3.8% OWHLF $2,000,000 1.7% UCNS HOME $1,500,000 1.3% SLCO HOME $461,000 0.4% LIHTC Equity $49,577,269 42.2% State Tax Credit $5,500,000 4.7% Owner Equity $8,907,464 7.6% Deferred Fee $11,039,473 9.4% Total $117,613,798 100% USES Use Amount % of Cost Acquisition $14,900,000 12.7% Hard Costs $78,932,816 67.1% Soft Costs $3,268,878 2.8% Developer Fee $11,039,473 9.4% Financing Expense $4,637,368 3.9% Contingency $3,981,412 3.4% Reserves $853,852 0.7% Total $117,613,798 100% 60 PROJECT NAME: 13 - Liberty Corner ADDRESS: 1265 S 300 W PROJECT SUMMARY From Developer: “Liberty Corner is a mixed-use development located on the Northeast corner of the 1300 South 300 West intersection. The community will feature 200 affordable units with the purpose of providing deeply targeted, family-sized units. The unit mix will feature a majority of 3- and 4- bedroom units along with 96 2-bedroom units. All units in the project will have at least 2 bedrooms. Liberty Corner is unique in that it not only provides family housing units in an urban setting, but includes deeply targeted affordable units, reaching to provide housing at 30% AMI. Liberty Corner is designed for the family. In addition to large, family-sized units, the community will feature indoor and outdoor amenities and spaces meant to serve a broad range of ages, interests, and needs. Liberty Corner will also be a sustainable community. The community will promote accessible and equitable transportation options as the Ballpark TRAX Station is within walking distance, at less than 1/3 of a mile away. In addition, the community will feature bicycle amenities to encourage alternative means of transportation. The community will be all electric and achieve Energy Star certification.” DEVELOPER SUMMARY From Developer: “Cowboy Partners is a multifamily developer based out of Salt Lake City, Utah. Cowboy Partners was established in 2001, rebranded from a company that had been developing housing in the Salt Lake Valley since the 1960s. Cowboy Partners is a recognized leader in the development, construction, and management of affordable housing; the company has experience in developing luxury, market rate, mixed-income and affordable housing communities through its development of dozens of communities within Salt Lake and across the State of Utah. Cowboy Properties, the sister company to Cowboy Partners, operates as the property management company for these communities. Cowboy Properties has deep experience with multifamily property management, including affordable housing and compliance, as the sole operator of Cowboy communities for decades.” 61 PROJECT NAME: 13 - Liberty Corner ADDRESS: 1265 S 300 W SITE MAP PROJECT RENDERINGS 62 PROJECT NAME: 13 - Liberty Corner ADDRESS: 1265 S 300 W 63 PROJECT NAME: 14 - 9Ten West ADDRESS: 910 W N Temple OVERVIEW Developer Great Lakes Capital Request Type HDLP Loan – Competitive Project Type New Construction Existing Land Use Vacant Commercial RDA FUNDING REQUEST Funding Request $2,000,000 Total Project Cost $43,204,038 RDA Loan to Cost 4.6% PROPOSED TERMS Interest Rate 2.0% Term, Amortization 16 Yr, 40 Yr Repayment Terms Cash Flow Lien Priority Subordinate to primary lender HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Deeply Affordable 90+ Energy Star Score Yes 100% Electric Yes Priorities Met Target Populations, Transportation Opportunities, Neighborhood Safety, Commercial Vitality, Public Art TIMELINE Construction Start May 1, 2024 Construction Completion January 1, 2026 LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Yes Tax Credits Reserved (Y/N) Yes, 4% HOUSING UNITS Bedroom Count Total Units Market Rate 61-80% AMI 41-60% AMI <40% AMI Studio 165 - - 138 27 1 Bed 15 - 15 - - 2 Bed - - - - - 3 Bed - - - - - 4 Bed - - - - - Total 180 - 15 138 27 CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $32,592,698 PERMANENT SOURCES Source Amount % of Total Senior Debt $16,268,000 37.7% RDA Loan $2,000,000 4.6% OWHLF $1,903,121 4.4% SLCO Loan $1,091,590 2.5% Utility Rebates $90,000 0.2% LIHTC Equity $20,201,424 46.8% Deferred Fee $1,382,937 3.2% 45L & ITC Equity $266,976 0.6% Total $43,204,038 100% USES Use Amount % of Cost Acquisition $3,735,000 8.6% Hard Costs $25,668,559 59.4% Soft Costs $1,593,701 3.7% Developer Fee $3,296,715 7.6% Financing Expense $6,535,154 15.1% Contingency $1,415,784 3.3% Reserves $959,125 2.2% Total $43,204,038 100% 64 PROJECT NAME: 14 - 9Ten West ADDRESS: 910 W N Temple PROJECT SUMMARY From Developer: “9Ten West has been designed to be energy efficient, transit-oriented, decent, safe, affordable housing. The project is a single six story building (five stories of wood frame construction over one concrete podium). The podium contains 31 parking spaces (including ADA and EV chargers), building services, community room (aka clubhouse), gym, property leasing, maintenance, bathrooms, mailroom, and space for a community service facility to provide needed services to low-income neighborhood residents. Each of the five residential floors above the podium will contain 36 residential units (3 one-bedroom and 33 studio units, ranging in size from 250 - 611 square feet), a laundry room, mechanical rooms, and two elevators. The 2nd floor includes a large Xeriscaped plaza for resident gatherings and a pet relief area. The project has been designed to utilize non-combustible sources of energy and will include solar PV panels, will certify under ENERGY STAR and Enterprise Green Community Standards, and provide residents with needed deeply affordable units in a transit-oriented context.” DEVELOPER SUMMARY From Developer: “Great Lakes Capital is a prominent Real Estate Development and Private Equity Firm with several core development types including Multifamily, Industrial, Mixed-Use, Flex, Office, Medical & Life Science, and Hotel Properties. With a core focus on the development of Multifamily, Industrial, and Mixed-Use properties, GLC has established itself as a leader in these high-growth segments. Since its inception in 2005, GLC has demonstrated excellence by successfully spearheading billions of dollars' worth of real estate projects. With a current development pipeline exceeding $923 million, GLC's commitment to innovation and expansion remains unwavering. Fueling its success are six principals with a cumulative experience of over 170 years, leveraging their expertise to navigate and execute commercial real estate investments. Having closed deals surpassing $7 billion, panning various property types, geographies, and economic cycles, GLC stands as a beacon of resilience and achievement in the dynamic world of real estate development.” 65 PROJECT NAME: 14 - 9Ten West ADDRESS: 910 W N Temple SITE MAP PROJECT RENDERINGS 66 PROJECT NAME: 14 - 9Ten West ADDRESS: 910 W N Temple 67 PROJECT NAME: 15 - Alliance House 1805 Rebuild ADDRESS: 1805 S Main OVERVIEW Developer Alliance House & Cowboy Partners Request Type HDLP Loan – Competitive Project Type New Construction Existing Land Use Housing RDA FUNDING REQUEST Funding Request $500,000 Total Project Cost $6,017,619 RDA Loan to Cost 8.3% PROPOSED TERMS Interest Rate 2.5% Term, Amortization 40 Yr, 40 Yr Repayment Terms Cash Flow Lien Priority Subordinate to permanent debt HDLP THRESHOLDS AND PRIORITIES Family-Sized Units and/or Deeply Affordable Units Deeply Affordable 90+ Energy Star Score Yes 100% Electric Yes Priorities Met Target Populations, Missing Middle, Neighborhood Safety TIMELINE Construction Start August 12, 2024 Construction Completion Spring 2026 LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) No Tax Credits Reserved (Y/N) N/A HOUSING UNITS Bedroom Count Total Units Market Rate 61-80% AMI 41-60% AMI <40% AMI Studio - - - - - 1 Bed 16 - - - 16 2 Bed - - - - - 3 Bed - - - - - 4 Bed - - - - - Total 16 - - - 16 CONSTRUCTION DEBT AHEAD OF RDA Source Amount Senior Debt $0 PERMANENT SOURCES Source Amount % of Total OWHLF NHTF $1,000,000 16.6% OWHLF HOME $631,864 10.5% SLC RDA $500,000 8.3% SLCO HOME $499,848 8.3% Office of Homeless Services Grant $2,000,000 33.2% SLCO HTF Grant $241,000 4.0% Donations $360,000 6.0% Donated Developer Fee $784,907 13.0% Total $6,017,619 100% USES Use Amount % of Cost Acquisition $0 0% Hard Costs $4,059,282 67.5% Soft Costs $517,553 8.6% Developer Fee $784,907 13% Financing Expense $218,150 3.6% Contingency $437,727 7.3% Reserves $0 0% Total $6,017,619 100% 68 PROJECT NAME: 15 - Alliance House 1805 Rebuild ADDRESS: 1805 S Main PROJECT SUMMARY From Developer: “The housing is open to any person who is a member of Alliance House. Members living in the apartments pay 30% of income with a one-time allowance of $0 rent for up to six months for those coming out of homelessness or waiting to be approved for Social Security or other benefits. The building is an old motel that has exceeded its life expectancy. The Alliance House Board of Directors has approved a campaign to demolish the old building and construct a new 16 unit deeply affordable complex on the existing property. Cowboy Partners is providing the development management services on a pro bono basis for the rebuild of the property. THINK Architects has been engaged to develop the architectural drawings and Bonneville Builders has been retained as the contractor. The project has been approved by the city planning commission. The new facility will consist of 16 Deeply Affordable single occupancy units that will be 100% subsidized at 30% of income by Alliance House on a permanent basis. Eligibility for tenancy will be for those who are members of Alliance House. Membership is open to anyone in the community with a SPMI. All members living in the 1805 apartments receive intensive wrap around support services available every day at Alliance House including case management, vocational training, education support, social support. DEVELOPER SUMMARY From Developer: “Alliance House has owned this specific housing property since 1991. We have been the property managers the duration of this time. We also own a housing facility at 1736 South Main Street since 2014 that we manage. Members that live at the 1805 property pay 30% of their income. Members that live at the 1736 property can live there for up to 6 months rent free. After 6 months we ask for a good faith effort of $50 a month or 30% of income up to $200 monthly.” 69 PROJECT NAME: 15 - Alliance House 1805 Rebuild ADDRESS: 1805 S Main SITE MAP PROJECT RENDERINGS 70 PROJECT NAME: 15 - Alliance House 1805 Rebuild ADDRESS: 1805 S Main 71 ATTACHMENT E: INELIGIBLE PROJECTS SUMMARY Ineligible Applications A B C D E Project Name Innovation Park at Liberty Wells Maven Flats Moda Griffin Palmer Court Saltair Developer Ivory Innovations Rise Development J Fisher The Road Home Valley Behavioral Health Address 707 S 400 E 777 S 300 E 915 W North Temple 515 E 100 S 107 S 800 W HDLP Funding Request 1,800,000$ 300,000$ 400,000$ 800,000$ 500,000$ Total Project Cost 24,971,426$ 3,000,000$ 40,957,938$ 60,000,000$ 21,000,000$ INELIGIBILITY REASON Ineligible Activities: Requested HDLP funds to be used for "sleeping second mortgages" Did not meet Threshold Requirements: did not include family-sized and/or deeply affordable units Did not meet Threshold Requirements: did not include family-sized and/or deeply affordable units Ineligible Activities: Requested HDLP funds to be used for "pre-construction design and soft costs" Ineligible Activities: Requested HDLP funds to be used for "pre-construction design and soft costs" 72 ATTACHMENT F: PROJECT PRIORITIES AND INTEREST RATE REDUCTIONS Project priority criteria will be utilized to evaluate applications as well as provide for interest rate reductions. CATEGORY POLICY OBJECTIVE BENCHMARK NOFA RANKING WEIGHT* 0.5% INTEREST RATE REDUCTION** 1 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 Project provides at least 15%*** of the total units as 3+ bedroom units AND includes family-oriented community amenities, as approved by RDA Staff. 3 X 2 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 Project sets aside at least 15%*** of the units for extremely low-income households (40% AMI or less) and/or special populations in partnership with a governmental or nonprofit entity 3 X 3 Homeownership Create opportunities for those who have historically rented in the community to build wealth and establish permanent roots through homeownership Project is a for-sale product that will be sold to income qualified individuals/families 3 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 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) 3 X 5 Sustainability Achieve green building and energy conservation standards to lower housing expenses, Projects must be built to Off- Site Net Zero or On-Site Net Zero standard as described in the RDA’s Sustainable 1 X*** 73 conserve resources, and promote resiliency Development Policy Resolution. 6 Transportation Opportunities Promote a multimodal transportation network and ensure convenient and equitable access to a variety of transportation options Projects must meet two of the following: • Includes a car sharing, bike sharing, or transit pass program that is widely available to employees/ residents • Includes a commercial project that includes employee shower, locker, and bicycle facilities • Is located within 1/3 mile walking distance of a TRAX station or S-Line station • Implements reduced parking strategies without negatively impacting the neighborhood • Incorporates majority of parking within a primary structure to minimize the need for a surface parking lot 1 X 7 Neighborhood Safety Utilize the development of housing to reduce the number of vacant and distressed buildings and lots to reduce crime and return land to a productive use Projects are located within an active RDA project area and incorporate documented Crime Prevention through Environmental Design (CPTED) principals 1 X 8 Expand Opportunity Provide for Neighborhoods of Opportunity by promoting the economic diversity of the housing stock within neighborhoods Projects are located within a High Opportunity Area, which is defined as an area that provides conditions that expand a person’s likelihood for social mobility as identified through an analysis of quality-of-life indicators. 1 X 9 Architecture & Urban Design Encourage housing that is high-quality, enduring, and that contributes to neighborhood context and livability through architectural and urban design best practices Buildings shall include an active ground floor use, significant ground floor glass, durable building materials and engaging building entrances as determined by RDA staff 1 X  10 Commercial Vitality Foster a mix of land uses and unique neighborhood business districts that adequately meet the local community’s needs Projects are mixed-use and establish new services, or underrepresented business types in the neighborhood that the local community identifies as lacking and desired. These spaces shall be open to the public and shall not be spaces that are exclusive to the development 1 X 11 Historic Preservation /Adaptive Reuse Encourage the preservation and/or reuse of buildings to preserve the character of neighborhoods Project acknowledges a neighborhood’s history and maintain its unique character through preservation, rehabilitation, or repurposing of historic or underutilized structures 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 Project contributes at least 1.5% of the RDA contribution towards the installation of art onsite or towards the RDA art fund as outlined in the RDA Art Policy 1 X *Note: NOFA Ranking Weight: Uses a number (the weight) between 1 and 3 to assess the importance of the funding priority, with 1 being of lower importance and 3 being of the highest importance. **Note: 0.5% Interest Rate Reductions: While 12 interest rate reductions are available, interest rates can be reduced by a maximum of 2.0%. Please see Attachment B for applicable standard loan terms and conditions. ***Note: Between the two threshold requirements laid out in Section 3.7, if a project includes both family housing units and deeply affordable units in accordance with this section, the project may receive the interest rate reduction by meeting the second threshold requirement at a percentage of 10% instead of 15%. ****Note: Sustainability Interest Rate Reduction: As per the RDA’s Sustainable Development Policy, projects built to an Off-Site Net Zero standard are eligible for a 1% interest rate reduction and projects built to an On-Site Net Zero standard are eligible for a 2% interest rate reduction. 75 ATTACHMENT G: HOME FUNDS REQUIREMENTS As part of the FY2023-2024 NOFA, Numerous HUD HOME funds are available. An overview of the HOME Program is available here: https://www.hudexchange.info/programs/home/home-overview/ and is located within 24 CFR 92.1 of the Code of Federal Regulations. Details on the different categories of funds are available here: FUNDS CATEGORY AMOUNT* ADDITIONAL DETAILS HOME Program Income** $6,939,710 24 CFR 92 (F) https://www.hudexchange.info/programs/home/home-overview/ HOME ARP Development** $1,501,608 https://www.hudexchange.info/programs/home-arp/overview/ HOME Development Fund** $726,291 24 CFR 92.206(a): https://www.ecfr.gov/current/title-24/subtitle- A/part-92/subpart-E/subject-group-ECFRf448ea7bbdfb69a/section- 92.206 HOME Community Housing Development Organization Funds** $351,841 Additional Requirements are located here: • 24 CFR 92.208 • 24 CFR 92.300 • 24 CFR 92.301 *Note: Amounts are approximate. Total available funds may change after this document has been published.  ATTACHMENT H: HDLP FUNDING ALLOCATION RESOLUTION  1 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ Affordable Housing – FY2023-2024 Competitive Housing Development Loan Program (HDLP) Funding Allocations RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY APPROVING CITYWIDE AFFORDABLE HOUSING PROJECT FUNDING ALLOCATIONS. WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) was created to transact the business and exercise the powers provided for in the Utah Community Reinvestment Agency Act (the “Act”). WHEREAS, the Act provides that tax increment funds may be used for the purpose of increasing the affordable housing supply within the boundaries of Salt Lake City. WHEREAS, the RDA Board of Directors (“Board”) approved the Housing Funds Allocation Policy (“Funds Policy”), Resolution R-1-2022, which establishes policies with respect to dedicating and directing resources for the development and preservation of housing based on funding source (“Housing Funds”). WHEREAS, the Board has set aside $13,761,164 of Housing Funds for affordable housing through the RDA’s Competitive Housing Development Loan Program (“HDLP”). The Board may also allocate an additional $1,665,000, which is the result of loan commitments from FY2022- 2023 that were rescinded. The allocation of funds is contingent upon an application and review process administered by the RDA to facilitate funding of qualified projects that meet the goals established by the HDLP. WHEREAS, through a Notice of Funding Availability (“NOFA”), the RDA administered a loan application and review process pursuant to the HDLP policy set forth in resolution R-2-2022 (the “HDLP Policy”) and the RDA’s Housing Funding Priorities for Fiscal Year 2023-2024 set forth in R-3-2023 (“Funding Priorities”) that resulted in fifteen eligible requests for funding totaling $27,464,243. WHEREAS, on February 21, 2024, the RDA’s Finance Committee (“Finance Committee”) reviewed the Competitive HDLP applications, and recommended funding allocations and preliminary terms as further described in Exhibit A. WHEREAS, based on the Finance Committee’s recommendations, RDA staff recommends that the Board approve the funding allocations and preliminary terms described in Exhibit A. WHEREAS, following the Board’s approval of the funding allocations and preliminary terms as set forth on Exhibit B, the RDA shall provide a 24-month conditional commitment period during 78 2 which the approved applicant shall have the opportunity to obtain needed financial, legal, and regulatory approvals, as well as satisfy other conditions determined by the RDA, to finalize the loan terms. WHEREAS, pursuant to the HDLP Policy, applicants that successfully meet the conditions of the conditional commitment shall be invited to execute a Letter of Commitment to finalize the loan terms, subject to a set of conditions precedent to closing of the loan. NOW THEREFORE, BE IT RESOLVED BY THE BOARD that it approves the funding allocations and preliminary terms as further described in Exhibit B, subject to revisions that do not materially affect the rights and obligations of the RDA hereunder. For approved applicants that successfully meet the required conditions, the Board authorizes the Executive Director to negotiate and execute the conditional commitment letter, the Letter of Commitment, the loan agreements, and other relevant documents consistent with the funding allocations and preliminary terms contained on Exhibit B and incorporating such other terms and conditions as recommended by the City Attorney’s office. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this _______ day of March 2024. ________________________________ Alejandro Puy, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Sara Montoya Date:____________________________ The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. ________________________________ Erin Mendenhall, Executive Director Attest: ________________________ City Recorder February 29, 2024 79 3 EXHIBIT A: RDA FINANCE COMMITTEE RECOMMENDED COMPETITIVE HDLP FUNDING ALLOCATIONS The RDA HDLP Finance Committee recommends that funding be allocated to projects in order of funding ranking. 80 EXHIBIT A: RDA FINANCE COMMITTEE FUNDING RECOMMENDATIONS The RDA Finance Committee recommends that funding be allocated to projects in the order of Funding Ranking. PROJECT/APPLICANT ADDRESS WEIGHTED PROJECT PRIORITY SCORE/INTEREST RATE REDUCTION*FUNDING REQUEST PRELIMINARY TERMS** RDA Committed Funds Possible Additional RDA Funds HOME Program Income HOME Development Fund HOME ARP Development TOTAL FUNDING RECOMMENDATION FUNDING RANKING Norbridge Court Artspace Bumper House SMH Builders New City Plaza Apartments Housing Connect 515 Tower - Conversion Phase I Perpetual Housing Fund 2nd South Apartments Hermes Affordable Services, LLC The Catherine Phase 1 22 Communities The Catherine Phase 2 22 Communities Citizens West 4 Developed. By Women. & Ivan Carroll Fairmont Heights I Lincoln Avenue Communities Project Open 3 Perpetual Housing Fund Pharos Apartments Housing Authority of Salt Lake City Book Cliffs Lodge Housing Authority of Salt Lake City Liberty Corner Cowboy Partners 9Ten West Great Lakes Capital Alliance House 1805 Rebuild Alliance House & Cowboy Partners TOTAL $27,464,243 $4,241,714 $1,665,000 $6,939,710 $726,291 $1,501,608 $15,074,323 Funds Availability Total Available Recommended Funding Funds Remaining RDA Committed Funds $4,241,714 $4,241,714 $- Grey box: Applicant qualifies for but doesn't want these funds. Possible Additional RDA Funds $1,665,000 $1,665,000 $- Black box: Applicant does not qualify for these funds. HOME Program Income $6,939,710 $6,939,710 $- HOME Development Fund $726,291 $726,291 $- HOME ARP Development $1,501,608 $1,501,608 $- HOME Community Housing Development Organization Funds $351,841 $0 $ 351,841 Total Potential HDLP Funds $15,426,164 $15,074,323 $351,841 *** While reviewing applications, the Committee took into consideration their February 1, 2024 High Opportunity Area HDLP funding recommendation and agreed to maintain their submitted recommendation to fund 515 Tower – Conversion 1 with High Opportunity Area funds. The Committee’s competitive HDLP funding recommendations incorporate the previously submitted High Opportunity Area recommendation. Legend: Target Populations: 3 Missing Middle: 3 Neighborhood Safety: 1 TOTAL: 7 * Projects receive a 0.5% interest rate reduction for each included priority. Sustainability allows for a 1% or 2% reduction. The maximum reduction per development is 2%. The interest rate is calculated as follows: Base Interest Rate minus (-) Interest Rate Reductions (up to 2%) = proposed interest rate; Base interest rate shall be locked within a month of closing. Projects shall maintain project priorities and the same weighted score at closing. Deviation from Project Priorities met may require Board approval. NOTE: For all loan awards greater than $899,999, the Sustainable Development Policy requires buildings to be designed to operate without fossil fuels, but it would not restrict the ability to have backup generators for emergencies. ** Final Terms shall comply with the requirements, standard loan terms and conditions, interest- rate reductions, and all other details laid out within the FY2023-2024 Housing Development Loan Program ( HDLP) Guidelines. Changes to repayment type may occur ( hard repayment versus cash flow repayment) and shall be based on requirements listed in the HDLP Guidelines or it required by a senior lender. Changes in repayment type will cause a change in the base interest rate. Repayment priority and lien position shall be based on the size of the loan; consideration may be made for other government entity loans if required through their policies. Funds may be disbursed in a lump sum if required by senior lender(s). Funding Recommended by Finance Committee Transportation Opportunities: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 4 Family Housing: 3 Transportation Opportunities: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 6 Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 10 Target Populations: 3 Expand Opportunity: 1 Transportation Opportunities: 1 Architecture & Urban Design: 1 TOTAL: 6 Family Housing: 3 Homeownership: 3 Missing Middle: 3 Transportation Opportunities: 1 Architecture & Urban Design: 1 Public Art: 1 TOTAL: 12 Target Populations: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 TOTAL: 5 Target Populations: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 TOTAL: 5 Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 TOTAL: 10 Target Populations: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 7 8 13 $500,000 $500,000 Target Populations: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 8 Interest Rate: 1.0% Term: 30 year Amortization: 30 year Hard Repayments Interest Rate: 1.5% Term: 17 year Amortization: 40 year Hard Repayments Interest Rate: 2.5% Term: 40 year Amortization: 40 year Cash Flow Repayments Interest Rate: 2.0% Term: 15 year Amortization: 15 year Cash Flow Repayments Interest Rate: 2.0% Term: 30 year Amortization: 30 year Cash Flow Repayments Interest Rate: 2.0% Term: 16 year Amortization: 40 year Cash Flow Repayments Interest Rate: 2.0% Term: 16 year Amortization: 40 year Cash Flow Repayments Interest Rate: 1.0% Term: 15 year Amortization: 30 year Hard Repayments Interest Rate: 1.0% Acquisition Term: 2-year Balloon or conversion to Permanent: Term: 16 year Amortization: 40 year Hard Repayments Interest Rate: 1.0% Term: 18 month Balloon Repayment Interest Rate: 2.5% Term: 15 year Amortization: 40 year Cash Flow Repayments Interest Rate: 2.5% Term: 15 year Amortization: 30 year Cash Flow Repayments Interest Rate: 2.0% Term: 40 year Amortization: 40 year Cash Flow Repayments Interest Rate: 2.0% Term: 16 year Amortization: 40 year Cash Flow Repayments Interest Rate: 2.5% Term: 40 year Amortization: 40 year Cash Flow Repayments Transportation Opportunities: 1 Neighborhood Safety: 1 Public Art: 1 TOTAL: 3 Target Populations: 3 Commercial Vitality: 1 Historic Preservation/Adaptive Reuse: 1 TOTAL: 5 4 9 12 11 1 10 2 7 14 5 3 10 6 511 W 200 S $895,000 $895,000 $0 $895,000 $3,000,000 $895,000 $0*** $1,000,000 $2,420,000 Family Housing: 3 Target Populations: 3 Expand Opportunity: 1 Historic Preservation/Adaptive Reuse: 1 Transportation Opportunities: 1 Commercial Vitality: 1 TOTAL: 10 Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Public Art: 1 TOTAL: 8 269 W Brooklyn Ave 1966 S 200 E 515 E 100 S 934-948 W 200 S 1881 W N Temple 1881 W N Temple 515 W 300 N 1805 S Main St 2557 S 1100 E 529 W 400 N 915 W 200 N 1159 S W Temple 1265 S 300 W 910 W N Temple $895,000$895,000 $2,650,000 $3,000,000 $2,524,802 $1,569,441 $2,000,000 $500,000 $134,323 $1,000,000 $400,000 $3,200,000 $710,000 $880,000 $740,000 $4,500,000 $1,000,000 $740,000 $1,236,714 $1,530,677 $134,323 $2,420,000 $1,000,000 $400,000 $400,000 $1,000,000 $710,000 $710,000 $47,101 $106,608$726,291 $1,000,000 $1,732,609 $880,000 $740,000 $4,500,000  4 EXHIBIT B: RDA BOARD APPROVED COMPETITIVE HDLP FUNDING ALLOCATIONS (To add after Board Meeting) 82 Redevelopment Agency Budget Amendment #2 Current Appropriation and Project Budgets NPA: Non-Project Area. Funding does not have a legal or Board directed requirement to be spent within a specific project area. Status Appropriation Fund Program Region Project Budget Available FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD Unallocated 5,220,186.00 FY23-PIF-Infrastructure Improvements-DD Program Income Fund Infrastructure Improvements DD Unallocated 1,902,535.00 FY24-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD Unallocated 3,680,056.00 Available Total 10,802,777.00 Rescope FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD PRJ-000002 100 S Underground Powerlines 388,981.00 PRJ-000071 Depot District Environmental Remediation 200,000.00 PRJ-000072 Station Center Shared Parking 275,639.00 PRJ-000073 Central Station 414,121.00 FY23-PIF-Infrastructure Improvements-NPA Program Income Fund Infrastructure Improvements NPA PRJ-000068 SL Mattress Warehouse 86,064.62 Release Total 1,364,805.62 In Use FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD PRJ-000017 Artspace Stormwater Relocation 200,000.00 PRJ-000063 Station Center Design 331,313.11 FY23-DD-Infrastructure Studies and Planning-DD Depot District Infrastructure Studies and Planning DD PRJ-000054 Station Center Vision & Implementation Plan 434,696.00 FY23-DD-Other Housing-DD Depot District Other Housing DD PRJ-000064 Home Inn Rio Grande Maintenance 23,292.68 FY23-PIF-Infrastructure Improvements-NPA Program Income Fund Infrastructure Improvements NPA PRJ-000017 Artspace Stormwater Relocation 320,127.53 PRJ-000068 SL Mattress Warehouse 5,644.00 In Use Total 1,315,073.32 Total 13,482,655.94 Proposed Budget Changes by Appropriation Appropriation Fund Program Region Current Budget Change Proposed Budget FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD 7,030,240 (6,498,927)531,313 FY23-DD-Infrastructure Studies and Planning-DD Depot District Infrastructure Studies and Planning DD 434,696 - 434,696 FY23-DD-Other Housing-DD Depot District Other Housing DD 23,293 - 23,293 FY23-PIF-Infrastructure Improvements-DD Program Income Fund Infrastructure Improvements DD 1,902,535 (1,902,535)- FY23-PIF-Infrastructure Improvements-NPA Program Income Fund Infrastructure Improvements NPA 411,836 (86,065)325,772 FY24-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD 3,680,056 (3,680,056)- FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD - 1,000,000 1,000,000 FY23-DD-Commercial Property Disposition-DD Depot District Commercial Property Disposition DD - 5,498,927 5,498,927 FY23-PIF-Commercial Property Disposition-DD Program Income Fund Commercial Property Disposition DD - 1,601,073 1,601,073 FY23-PIF-Infrastructure Improvements-DD Program Income Fund Infrastructure Improvements DD - 301,462 301,462 FY23-PIF-Infrastructure Improvements-NPA Program Income Fund Infrastructure Improvements DD - 86,065 86,065 FY24-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD - 3,680,056 3,680,056 Total 13,482,656 - 13,482,656 New Project: Station Center Property Disposition & Site Work RDA-FY23-DD-Commercial Property Disposition-DD 5,498,927 RDA-FY23-DD-Infrastructure Improvements-DD 1,000,000 RDA-FY23-PIF-Commercial Property Disposition-DD 1,601,073 Proposed Appropriation Station Center Property Disposition & Site Work 8,100,000 New Project New Project: Depot District Infrastructure, Design, Construction, & Site Work RDA-FY24-DD-Infrastructure Improvements-DD 3,680,056 RDA-FY23-PIF-Infrastructure Improvements-DD 301,462 RDA-FY23-PIF-Infrastructure Improvements-DD 86,065 Proposed Appropriation Depot District Infrastructure, Design, Construction, & Site Work 4,067,583 New Project Workday Worktags & the RDA Budget Worktags allow for tracking of costs, revenues, and other operational metrics across different dimensions like departments, projects, or geographic locations. The Redevelopment Agency’s budget utilizes the following Worktags: Cost Center: Represents a specific department, unit, or division within an organization that is responsible for certain costs. The RDA is a cost center. Fiscal Year: The original year the funds were appropriated. Fund: Used to categorize and segregate financial transactions based on the origin of the funds, which is crucial for accurate financial reporting and compliance. The RDA has Project Area, Housing, Multi-Use, and Operations funds, with various legal and policy-related requirements that need to be monitored. Program: Enables the segregation and monitoring of financial data, which represents a specific pool of money that needs to be tracked for various legal, policy, or Board-directed initiatives related to RDA programs. The Program Worktags are designed to fit within program hierarchies such as Housing, Commercial, Infrastructure, and Operations programs. Region: Segments expenses based on location, which for the RDA is usually a Project Area. Not all expenses will be associated with a project area, which means this Worktag may not always be used. Appropriation: Combines the elements of Cost Center, Fund, Program, and Region into a single, comprehensive identifier, with the fiscal year as a prefix. Appropriation Cost Center FundFiscal Year Program Region Appropriations & Project Budgets Operations Appropriations Annual appropriations for operational expenses. Considered approved to spend when appropriated. If not spent or encumbered by the end of the fiscal year, drops to fund balance. Typically, these would be for RDA operating expenses. Occasionally may be associated with a project budget (for example, an office remodel). Capital Reserves Appropriations Appropriations for programs that carry forward each year. For instance, in the Housing Development Loan Program, a set amount is allocated for loans. Staff will request additional Board approval to use these funds for specific loan projects. Funds not awarded to projects roll forward to the next year, unless reappropriated by the Board. Project Budgets All project budgets must pull from appropriations. Once project budgets have been approved by the Board, the Agency can move forward with spending. Project budgets may have multiple appropriations. Each appropriation supports either the operations of the Agency or projects associated with its various programs. Redevelopment Agency Funds Project Area Funds Must be used within the boundaries of the project area, except for revenues transferred to Primary Housing (legally required), Secondary Housing (supplemental), Agency Operations (defined by interlocal agreements), or other legal reasons. •Central Business District (CBD) •Block 70 (B70) •Depot District (DD) •Granary District (GD) •North Temple (NT) •North Temple Viaduct (NTV) •Stadler Rail (SR) •Northwest Quadrant (NWQ) •State Street (SS) •9 Line (9L) •Block 67 North (B67N) Housing Funds May be used anywhere in the City, unless otherwise directed by the Board, except for the WCI, which must be used west of I-15. •Primary Housing (1H) •Secondary Housing (2H) •Housing Development Fund (HDF) •West Side Community Initiative (WCI) Multi-Use Funds Can be used across project areas (and potentially city-wide), unless otherwise directed by the Board. •Program Income Fund (PIF) •Revolving Loan Fund (RLF) Agency Operations Fund (OPS) •Receives transfers in from other funds to fund the Agency’s operational expenses. 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 ERINMENDENHALL Mayor MARY BETHTHOMPSON Chief Financial Officer RDABOARDTRANSMITTAL ___________________________________Date Received: ________________ Mayor Erin Mendenhall, Executive Director Date sent to Council: ___________ ______________________________________________________________________________ TO:Salt Lake City RDA Board DATE: March 4, 2024 Alejandro Puy, RDA Chair FROM:Mary Beth Thompson, Chief Financial Officer Danny Walz, RDA Director SUBJECT:RDA Budget Amendment #2, FY 2023-24 SPONSOR: NA STAFF CONTACT:Greg Cleary, Budget Director (801) 535-6394 or Mary Beth Thompson (801) 535-6403 or Mike Burns (801) 535-6461 or Erin Cunningham (801) 535-7246 Danny Walz (801) 535-7209 DOCUMENT TYPE: Budget Amendment Resolution RECOMMENDATION: The Administration recommends that subsequent to a public hearing, the RDA Board adopt the following amendment to the FY 2023-24 adopted budget. BUDGET IMPACT: The Second Amendment will not affect the Agency's overall budget total. Its purpose is to reappropriate several project budgets and reallocate funds previously appropriated at a program level and into two new project budgets. REVENUE EXPENSE RDAFUND $ 0.00 $ 0.00 TOTAL $ 0.00 $ 0.00 EXECUTIVE SUMMARY: This amendment proposes the reappropriation of budgets previously earmarked for various projects and reallocating program-level appropriations into two new projects. Identified project budgets are either complete with surplus funds or more effectively integrated into larger projects. It is recommended that program-level appropriations, including "Station Center Infrastructure Funds" and "Depot District Infrastructure Funds," be appropriated to two (2) new projects. The amendment maintains the total budget of appropriations but alters their distribution. There is a total of $10,802,277 in appropriations not currently allocated to projects. Additionally, there are five project budgets available for reappropriation, totaling $1,364,806. The combined total of $12,167,583 is proposed for allocation to two new projects. The staff memo, included below, outlines greater details of project reallocations, and provides additional staff analysis. A summary document outlining the proposed budget change is attached (Attachment C). The Administration requests this document be modified based on the decisions of the Board.The budget amendment contains one item in section D Housekeeping Items: 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. RDA Budget Amendment 2 Resolution B. Budget Amendment 2 Staff Memo C. Budget Amendment Summary PUBLIC PROCESS: Public Hearing 1 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO__________ Second Budget Amendment for Fiscal Year 2023-2024 RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY AMENDING THE FINAL BUDGET OF THE RDA FOR FISCAL YEAR 2023-2024. WHEREAS, on June 13, 2023, the Redevelopment Agency (RDA) Board of Directors (Board) adopted the final budget of the RDA, effective for the fiscal year beginning July 1, 2023, and ending June 30, 2024, in accordance with the requirements of Section 17C-1-601.5 of the Utah Code. WHEREAS, all conditions precedent to amend the RDA's final annual 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 annual budget of the RDA, as approved, ratified and finalized by the Board on June 13, 2023. 2. Adoption of Amendments. The budget amendments shown on Exhibit A as “Board Approved” are hereby adopted and incorporated into the annual 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 , 202 , to be effective upon adoption. ________________________________ , Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Allison Parks 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] REDEVELOPMENT AGENCY of SALT LAKE CITY SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director STAFF MEMO DATE:March 4, 2024 PREPARED BY:Erin Cunningham, Financial Analyst RE:RDA Budget Amendment #2, FY 2023-2024 REQUESTED ACTION: Discussion and approval of Budget Amendment #2 BUDGET IMPACTS:The Second Amendment will not affect the Agency's overall budget total. Its purpose is to reappropriate several project budgets and reallocate funds previously appropriated at a program level and into two new project budgets. EXECUTIVE SUMMARY: This amendment proposes the reappropriation of budgets previously earmarked for various projects and reallocating program-level appropriations into two new projects. Identified project budgets are either complete with surplus funds or more effectively integrated into larger projects. It is recommended that program-level appropriations, including "Station Center Infrastructure Funds" and "Depot District Infrastructure Funds," be appropriated to two (2) new projects. The amendment maintains the total budget of appropriations but alters their distribution. There is a total of $10,802,277 in appropriations not currently allocated to projects. Additionally, there are five project budgets available for reappropriation, totaling $1,364,806. The combined total of $12,167,583 is proposed for allocation to two new projects. ANALYSIS & ISSUES: The Agency is in the process of transitioning to the City's new Enterprise Resource Planning (ERP) software, Workday. In shifting to the new system for project funding, it becomes imperative to recognize that the financial plan for each project must align with designated appropriations. Each appropriation encapsulates details necessary for legal spending, thus ensuring compliance with regulations and policies to which the Agency must adhere. These appropriations represent pools of money set aside for specific purposes, each governed by clear rules regarding expenditure. The elements of each appropriation include the Department (Cost Center), Fiscal Year, Fund, and Project Area (Region). As funds from these appropriations are assigned to various projects, the remaining balance within each appropriation will decrease. Previously, the Agency possessed the flexibility to allocate funds directly from available funding sources to projects. With the adoption of the new system, the Agency's overall budget is perceived as a collection of these appropriations, necessitating that all project budgets derive their funding from them. This arrangement precludes the possibility of projects maintaining their own, independent budgets. The structure now adopts a two-tiered approach: the comprehensive budget comprising all appropriations, and the individual project budgets that must be funded in accordance with these appropriations. Reallocation of Appropriations This budget amendment pertains to the redistribution of funds formerly designated as "Station Center Infrastructure Funds" and "Depot District Infrastructure Funds." The table below illustrates the current appropriations. The amendment proposes to reappropriate funds from two categories: Appropriations with the "Available" status are not currently tied to any projects. Staff is seeking to reallocate $10,802,777 of these appropriations to support two (2) new projects described below. Appropriations and Project Budgets with the "Rescope" status are intended to be detached from their existing assignments and rescoped to support the same two (2) projects. This $1,364,805.62, combined with the amount above totals $12,167,583 Status Appropriation Project Budget Available Prior Year Balances through FY23-DD-Infrastructure Improvements-DD Capital Reserve - Infrastructure Improvements -{Holding Account}- 5,220,186.00 Prior Year Balances through FY23-PIF-Infrastructure Improvements-DD Capital Reserve - Infrastructure Improvements -{Holding Account}- 1,902,535.00 RDA Key Changes FY24-DD- Infrastructure Improvements-DD Capital Reserve - Infrastructure Improvements -{Holding Account}- 3,680,056.00 Available Total 10,802,777.00 Rescope FY23-DD-Infrastructure Improvements-DD Capital Project: PRJ-000002 100 S Underground Powerlines 388,981.00 Capital Project: PRJ-000071 Depot District Environmental Remediation 200,000.00 Capital Project: PRJ-000072 Station Center Shared Parking 275,639.00 Capital Project: PRJ-000073 Central Station 414,121.00 FY23-PIF-Infrastructure Improvements-NPA Capital Project: PRJ-000068 SL Mattress Warehouse 86,064.62 Rescope Total 1,364,805.62 Total 12,167,583 which are outlined in the table below. Fund Program Appropriation Current Budget Change Proposed Budget Depot District Commercial Property Disposition RDA-FY23-DD- Commercial Property Disposition-DD 0 5,498,927 5,498,927 Infrastructure Improvements RDA-FY23-DD- Infrastructure Improvements-DD 0 1,000,000 1,000,000 Program Income Fund Commercial Property Disposition RDA-FY23-PIF- Commercial Property Disposition-DD 0 1,601,073 1,601,073 Total 0 8,100,000 8,100,000 Fund Program Appropriation Current Budget Change Proposed Budget Depot District Infrastructure Improvements RDA-FY24-DD- Infrastructure Improvements-DD 0 3,680,056 3,680,056 Program Income Fund Infrastructure Improvements RDA-FY23-PIF- Infrastructure Improvements-DD 0 301,462 301,462 RDA-FY23-PIF- Infrastructure Improvements-DD (from NPA) 0 86,065 86,065 Total 0 4,067,583 4,067,583 PREVIOUS BOARD ACTION: 1. Approval of the Fiscal Year 2023-2024 Budget. 2. Approval of the Fiscal Year 2023-2024 Budget Amendment #1. ATTACHMENTS: 1. Supplemental Slides. Current Appropriation and Project Budgets NPA: Non-Project Area. Funding does not have a legal or Board directed requirement to be spent within a specific project area. Status Appropriation Fund Program Region Project Budget Available FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD Unallocated 5,220,186.00 FY23-PIF-Infrastructure Improvements-DD Program Income Fund Infrastructure Improvements DD Unallocated 1,902,535.00 FY24-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD Unallocated 3,680,056.00 Available Total 10,802,777.00 Rescope FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD PRJ-000002 100 S Underground Powerlines 388,981.00 PRJ-000071 Depot District Environmental Remediation 200,000.00 PRJ-000072 Station Center Shared Parking 275,639.00 PRJ-000073 Central Station 414,121.00 FY23-PIF-Infrastructure Improvements-NPA Program Income Fund Infrastructure Improvements NPA PRJ-000068 SL Mattress Warehouse 86,064.62 Rescope Total 1,364,805.62 In Use FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD PRJ-000017 Artspace Stormwater Relocation 200,000.00 PRJ-000063 Station Center Design 331,313.11 FY23-DD-Infrastructure Studies and Planning-DD Depot District Infrastructure Studies and Planning DD PRJ-000054 Station Center Vision & Implementation Plan 434,696.00 FY23-DD-Other Housing-DD Depot District Other Housing DD PRJ-000064 Home Inn Rio Grande Maintenance 23,292.68 FY23-PIF-Infrastructure Improvements-NPA Program Income Fund Infrastructure Improvements NPA PRJ-000017 Artspace Stormwater Relocation 320,127.53 PRJ-000068 SL Mattress Warehouse 5,644.00 In Use Total 1,315,073.32 Total 13,482,655.94 Proposed Budget Changes by Appropriation Appropriation Fund Program Region Current Budget Change Proposed Budget FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD 7,030,240 (6,498,927)531,313 FY23-DD-Infrastructure Studies and Planning-DD Depot District Infrastructure Studies and Planning DD 434,696 -434,696 FY23-DD-Other Housing-DD Depot District Other Housing DD 23,293 -23,293 FY23-PIF-Infrastructure Improvements-DD Program Income Fund Infrastructure Improvements DD 1,902,535 (1,902,535)- FY23-PIF-Infrastructure Improvements-NPA Program Income Fund Infrastructure Improvements NPA 411,836 (86,065)325,772 FY24-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD 3,680,056 (3,680,056)- FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD -1,000,000 1,000,000 FY23-DD-Commercial Property Disposition-DD Depot District Commercial Property Disposition DD -5,498,927 5,498,927 FY23-PIF-Commercial Property Disposition-DD Program Income Fund Commercial Property Disposition DD -1,601,073 1,601,073 FY23-PIF-Infrastructure Improvements-DD Program Income Fund Infrastructure Improvements DD -301,462 301,462 FY23-PIF-Infrastructure Improvements-NPA Program Income Fund Infrastructure Improvements DD -86,065 86,065 FY24-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD -3,680,056 3,680,056 Total 13,482,656 -13,482,656 New Project: Station Center Property Disposition & Site Work RDA-FY23-DD-Commercial Property Disposition-DD 5,498,927 RDA-FY23-DD-Infrastructure Improvements-DD 1,000,000 RDA-FY23-PIF-Commercial Property Disposition-DD 1,601,073 Proposed Appropriation Station Center Property Disposition & Site Work 8,100,000 New Project New Project: Depot District Infrastructure, Design, Construction, & Site Work RDA-FY24-DD-Infrastructure Improvements-DD 3,680,056 RDA-FY23-PIF-Infrastructure Improvements-DD 301,462 RDA-FY23-PIF-Infrastructure Improvements-DD 86,065 Proposed Appropriation Depot District Infrastructure, Design, Construction, & Site Work 4,067,583 New Project Workday Worktags & the RDA Budget Worktags allow for tracking of costs, revenues, and other operational metrics across different dimensions like departments, projects, or geographic locations. The Redevelopment Agency’s budget utilizes the following Worktags: Cost Center: Represents a specific department, unit, or division within an organization that is responsible for certain costs. The RDA is a cost center. Fiscal Year: The original year the funds were appropriated. Fund: Used to categorize and segregate financial transactions based on the origin of the funds, which is crucial for accurate financial reporting and compliance. The RDA has Project Area, Housing, Multi-Use, and Operations funds, with various legal and policy-related requirements that need to be monitored. Program: Enables the segregation and monitoring of financial data, which represents a specific pool of money that needs to be tracked for various legal, policy, or Board-directed initiatives related to RDA programs. The Program Worktags are designed to fit within program hierarchies such as Housing, Commercial, Infrastructure, and Operations programs. Region: Segments expenses based on location, which for the RDA is usually a Project Area. Not all expenses will be associated with a project area, which means this Worktag may not always be used. Appropriation: Combines the elements of Cost Center, Fund, Program, and Region into a single, comprehensive identifier, with the fiscal year as a prefix. Appropriation Cost Center FundFiscal Year Program Region Appropriations & Project Budgets Operations Appropriations Annual appropriations for operational expenses. Considered approved to spend when appropriated. If not spent or encumbered by the end of the fiscal year, drops to fund balance. Typically, these would be for RDA operating expenses. Occasionally may be associated with a project budget (for example, an office remodel). Capital Reserves Appropriations Appropriations for programs that carry forward each year. For instance, in the Housing Development Loan Program, a set amount is allocated for loans. Staff will request additional Board approval to use these funds for specific loan projects. Funds not awarded to projects roll forward to the next year, unless reappropriated by the Board. Project Budgets All project budgets must pull from appropriations. Once project budgets have been approved by the Board, the Agency can move forward with spending. Project budgets may have multiple appropriations. Each appropriation supports either the operations of the Agency or projects associated with its various programs. Redevelopment Agency Funds Project Area Funds Must be used within the boundaries of the project area, except for revenues transferred to Primary Housing (legally required), Secondary Housing (supplemental), Agency Operations (defined by interlocal agreements), or other legal reasons. •Central Business District (CBD) •Block 70 (B70) •Depot District (DD) •Granary District (GD) •North Temple (NT) •North Temple Viaduct (NTV) •Stadler Rail (SR) •Northwest Quadrant (NWQ) •State Street (SS) •9 Line (9L) •Block 67 North (B67N) Housing Funds May be used anywhere in the City, unless otherwise directed by the Board, except for the WCI, which must be used west of I-15. •Primary Housing (1H) •Secondary Housing (2H) •Housing Development Fund (HDF) •West Side Community Initiative (WCI) Multi-Use Funds Can be used across project areas (and potentially city-wide), unless otherwise directed by the Board. •Program Income Fund (PIF) •Revolving Loan Fund (RLF) Agency Operations Fund (OPS) •Receives transfers in from other funds to fund the Agency’s operational expenses. In i t i a t i v e N u m b e r / N a m e P r o j e c t A r e a R e v e n u e A m o u n t E x p e n d i t u r e Am o u n t R e v e n u e Am o u n t E x p e n d i t u r e Am o u n t On g o i n g o r O n e - ti m e FT E s 1 RD A R e a l l o c a t i o n o f P r o g r a m - L e v e l A p p r o p r i a t i o n s i n t o Tw o N e w P r o j e c t s De p o t D i s t r i c t - (1 0 , 1 7 8 , 9 8 3 . 0 0 ) On e - t i m e - 1 RD A R e a l l o c a t i o n o f P r o g r a m - L e v e l A p p r o p r i a t i o n s i n t o Tw o N e w P r o j e c t s De p o t D i s t r i c t - 1 0 , 1 7 8 , 9 8 3 . 0 0 O n e - t i m e - 1 RD A R e a l l o c a t i o n o f P r o g r a m - L e v e l A p p r o p r i a t i o n s i n t o Tw o N e w P r o j e c t s Pr o g r a m I n c o m e Fu n d - (1 , 9 8 8 , 6 0 0 . 0 0 ) On e - t i m e - 1 RD A R e a l l o c a t i o n o f P r o g r a m - L e v e l A p p r o p r i a t i o n s i n t o Tw o N e w P r o j e c t s Pr o g r a m I n c o m e Fu n d - 1 , 9 8 8 , 6 0 0 . 0 0 O n e - t i m e - - To t a l o f B u d g e t A m e n d m e n t I t e m s - - - - To t a l b y F u n d , B u d g e t A m e n d m e n t # 1 : Re d e v e l o p m e n t A g e n c y De p o t D i s t r i c t - - - - - Re d e v e l o p m e n t A g e n c y Pr o g r a m I n c o m e Fu n d - - To t a l o f B u d g e t A m e n d m e n t I t e m s - - - - - Fi s c a l Y e a r 2 0 2 3 - 2 4 R D A B u d g e t A m e n d m e n t # 2 Se c t i o n G : B o a r d C o n s e n t A g e n d a - - G r a n t A w a r d s Se c t i o n I : B o a r d A d d e d I t e m s Se c t i o n A : N e w I t e m s Se c t i o n B : G r a n t s f o r E x i s t i n g S t a f f R e s o u r c e s Se c t i o n C : G r a n t s f o r N e w S t a f f R e s o u r c e s Se c t i o n D : H o u s e k e e p i n g Se c t i o n E : G r a n t s R e q u i r i n g N o N e w S t a f f R e s o u r c e s Se c t i o n F : D o n a t i o n s Bo a r d A p p r o v e d Ad m i n i s t r a t i o n P r o p o s e d 1 In i t i a t i v e N u m b e r / N a m e P r o j e c t A r e a R e v e n u e A m o u n t E x p e n d i t u r e Am o u n t R e v e n u e Am o u n t E x p e n d i t u r e Am o u n t On g o i n g o r O n e - ti m e FT E s Fi s c a l Y e a r 2 0 2 3 - 2 4 R D A B u d g e t A m e n d m e n t # 2 Bo a r d A p p r o v e d Ad m i n i s t r a t i o n P r o p o s e d Cu r r e n t Y e a r B u d g e t S u m m a r y , p r o v i d e d f o r i n f o r m a t i o n o n l y FY 2 0 2 3 - 2 4 B u d g e t , I n c l u d i n g B u d g e t A m e n d m e n t s To t a l R e v e n u e RD A B A # 1 T o t a l RD A B A # 2 T o t a l To t a l T o - D a t e Re d e v e l o p m e n t A g e n c y 80 , 8 0 3 , 8 4 1 (6 , 4 7 6 , 0 1 4 ) - 7 4 , 3 2 7 , 8 2 7 T o t a l o f B u d g e t A m e n d m e n t I t e m s 80 , 8 0 3 , 8 4 1 (6 , 4 7 6 , 0 1 4 ) - 7 4 , 3 2 7 , 8 2 7 To t a l E x p e n s e RD A B A # 1 T o t a l RD A B A # 2 T o t a l To t a l T o - D a t e Re d e v e l o p m e n t A g e n c y 80 , 8 0 3 , 8 4 1 (6 , 4 7 6 , 0 1 4 ) - 7 4 , 3 2 7 , 8 2 7 T o t a l o f B u d g e t A m e n d m e n t I t e m s 80 , 8 0 3 , 8 4 1 (6 , 4 7 6 , 0 1 4 ) - 7 4 , 3 2 7 , 8 2 7 Ce r t i f i c a t i o n Bu d g e t M a n a g e r De p u t y D i r e c t o r , C i t y C o u n c i l / R D A B o a r d Co n t i n g e n t A p p r o p r i a t i o n a n d N o t e s 2 P R O J E C T U P D A T E : J A P A N T O W N S T R E E T March 19, 2024 Project Background The West Quarter Project The Japantown Design Strategy Board Involvement & Requirements Outcomes & Accomplishments Current Status & What’s Next IN THIS PRESENTATION THE WEST QUARTER PROJECT Project Background / Flow of Funds 2018 State legislation slated $15M in Transportation Funds for Regionally Significant Parking Structure. SL County and the Ritchie Group requested the creation of Block 67 Project Area and that the Agency pass through the Transportation Funds. The Agency would reimburse SL County on behalf of the Ritchie Group via tax increment from Developer’s parcels within Project Area. SL County would use the repaid funds for a Revolving Loan Fund to continue to fund Regionally Significant Transportation Projects. Block 67 North Project Area Map THE WEST QUARTER PROJECT Alignment with Downtown Master Plan Increased density and housing stock downtown Incorporation of midblock walkways into downtown through Agency funded projects Mixed-use development and retail spill out onto sidewalks Creation of a sports and entertainment area Parking for Delta Center, Salt Palace, and surrounding uses Partnering with Salt Lake County for long term viability of the Salt Palace Providing access to good jobs Rendering Japantown Community Concerns History of Urban Renewal & Historic Japantown Salt Palace Impacts West Quarter Design Good neighbor concerns for Church functions & festivals Board Actions (July 2018) Resolution adopting Block 67 boundary survey and authorization of a draft Project Area plan for Block 67 Request for Agency staff to facilitate discussions with the Ritchie Group, Salt Lake County, and the Community about mitigating the impacts of the proposed Block 67 development on the Community. Facilitation Process Agency staff establishes working group Main outcomes emerge: (1) “Wish list” of physical improvements for Japantown Street (2) Developer proposed changes to West Quarter project JAPANTOWN STREET BACKGROUND November 2018 Agency Staff Board Memo Graphic of West Quarter Project & Japantown Street Paths Forward Agency staff proposes two paths to address the concerns and implement the ideas identified through the facilitation process: Focus One: Mitigate potential impacts of the development & move the West Quarter project along in a timely manner, including proposed design changes and connectivity to Japantown Street. Focus Two: Articulate a vision for Japantown Street, including establishing a Working Group and partnering with a design consultant to create collaborative vision for Japantown Street. Board Actions (Dec 2018 - Dec 2019): Approved identified mitigation steps to move West Quarter project forward Adopted a resolution expressing support for the proposed visioning process and finalizes $100,000 in CBD placemaking funds for consultant Additionally, the Board conducted a straw poll for the City Council to vote to amend the Downtown Master Plan to recognize Japantown Approved City and County Interlocal Agreements Approved West Quarter Tax Increment Reimbursement Agreement JAPANTOWN STREET BACKGROUND BOARD REQUIREMENTS FOR PARTICIPATION Project Requirements: Midblock walkway Public parking stalls Phase II conditions Considerations for Japantown Tax increment set aside of 10% for Japantown Street improvements Japantown Requirements: Design Improvements Setback for NW corner Parking garage knock out panels Loading functions moved within building Good Faith Conditions Trash pickup Deliveries/festivals Retail along 100 South Landscaping along 100 South Adjacent Property Improvements Regrade, repave, connect storm drains SLBT & JCC parcels Create connection between Japantown Street and West Quarter Project Agency partners with GSBS Architects Extensive engagement process (2020 - 2021) Started with “wish list” from facilitation process Identified community Captains & Subcommittee Outcomes: Japantown vision, goals, & design guidelines Community priorites Preferred street design Phasing Preliminary budget estimate JAPANTOWN DESIGN STRATEGY JAPANTOWN DESIGN STRATEGY Preferred concept identifies Community priorities including functionality, safety, and place making Phase Progression: Each phase builds on itself, so as each phase is funded the improvements made in the previous phase do not need to be removed Each phase builds towards the final vision Each phase includes elements of each type of prioritized improvement so that the Community may see tangible progress in each area as early as the first phase, and throughout each phase. Preliminary estimates roughly $7.5M+ (2020) JAPANTOWN DESIGN STRATEGY Phases 1 through 3 of the Japantown Design Strategy JAPANTOWN DESIGN STRATEGY Existing Funds in Action: $250,000: Design Documents Phase 1-3 with GSBS Convening committee of City Departments for overall coordination $100,000: Public Art Working with Arts Council Alignment with potential implementation Proposed Funds for Next Steps: Budget FY25 Request $100k Construction documents, Phase I $300k public art Project Area Tax Increment Ongoing: Community partnership Tabling at Nihon Matsuri Festival (Sat., April 27) Features & Awards STATUS UPDATE Board Members, Agency Staff, & Community Members sharing the Japantown Design Strategy at the Obon Festival, July 2022 THANK YOU REDEVELOPMENT AGENCY of SALT LAKE CITY SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director REDEVELOPMENT AGENCY STAFF MEMO DATE: March 1, 2024 PREPARED BY: Erin Cunningham RE: Status Report on RDA Commercial Loan Portfolio REQUESTED ACTION: Written Briefing RECOMMENDATION: N/A BUDGET IMPACTS: None EXECUTIVE SUMMARY: Semiannually, the RDA provides an update to the Board on the status of the RDA’s commercial loan portfolio. This report identifies the following: • New loans approved between July 1, 2023 and December 31, 2023 • Remaining amount in the existing portfolio • Outstanding principal for the Revolving Loan Fund • Any delinquencies ANALYSIS & ISSUES: One new loan was approved for $2 million to the Front Climbing Club owned by Rocky Ventures, an S Corp 100% owned by Dustin Buckthal. This loan is currently paused and has not been disbursed. New Loans Approved July 1, 2023 – December 31, 2023 Fund Borrower Resolution Date Approved Amount Revolving Loan Fund Rocky Ventures, Inc. R-37-2016 2/12/2023 $2,000,000.00 Total New Loans $2,000,000.00 Available to lend as of December 31, 2023 Fund Program Amount Revolving Loan Fund Commercial Revolving Loans 2,719,280 State Street Commercial Revolving Loans 500,000 Granary District Commercial Adaptive Reuse Loans 882,176 Total 4,101,456 Outstanding Loan Balances as of December 31, 2023 Fund Number of Loans Balance Revolving Loan Fund 15 26,652,931 PREVIOUS BOARD ACTION: N/A ATTACHMENTS: None 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 ERINMENDENHALL Mayor MARY BETHTHOMPSON Chief Financial Officer RDABOARDTRANSMITTAL ___________________________________Date Received: ________________ Mayor Erin Mendenhall, Executive Director Date sent to Council: ___________ ______________________________________________________________________________ TO:Salt Lake City RDA Board DATE: March 4, 2024 Alejandro Puy, RDA Chair FROM:Mary Beth Thompson, Chief Financial Officer Danny Walz, RDA Director SUBJECT:RDA Budget Amendment #2, FY 2023-24 SPONSOR: NA STAFF CONTACT:Greg Cleary, Budget Director (801) 535-6394 or Mary Beth Thompson (801) 535-6403 or Mike Burns (801) 535-6461 or Erin Cunningham (801) 535-7246 Danny Walz (801) 535-7209 DOCUMENT TYPE: Budget Amendment Resolution RECOMMENDATION: The Administration recommends that subsequent to a public hearing, the RDA Board adopt the following amendment to the FY 2023-24 adopted budget. BUDGET IMPACT: The Second Amendment will not affect the Agency's overall budget total. Its purpose is to reappropriate several project budgets and reallocate funds previously appropriated at a program level and into two new project budgets. REVENUE EXPENSE RDAFUND $ 0.00 $ 0.00 TOTAL $ 0.00 $ 0.00 EXECUTIVE SUMMARY: This amendment proposes the reappropriation of budgets previously earmarked for various projects and reallocating program-level appropriations into two new projects. Identified project budgets are either complete with surplus funds or more effectively integrated into larger projects. It is recommended that program-level appropriations, including "Station Center Infrastructure Funds" and "Depot District Infrastructure Funds," be appropriated to two (2) new projects. The amendment maintains the total budget of appropriations but alters their distribution. There is a total of $10,802,277 in appropriations not currently allocated to projects. Additionally, there are five project budgets available for reappropriation, totaling $1,364,806. The combined total of $12,167,583 is proposed for allocation to two new projects. The staff memo, included below, outlines greater details of project reallocations, and provides additional staff analysis. A summary document outlining the proposed budget change is attached (Attachment C). The Administration requests this document be modified based on the decisions of the Board.The budget amendment contains one item in section D Housekeeping Items: 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. RDA Budget Amendment 2 Resolution B. Budget Amendment 2 Staff Memo C. Budget Amendment Summary PUBLIC PROCESS: Public Hearing 1 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO__________ Second Budget Amendment for Fiscal Year 2023-2024 RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY AMENDING THE FINAL BUDGET OF THE RDA FOR FISCAL YEAR 2023-2024. WHEREAS, on June 13, 2023, the Redevelopment Agency (RDA) Board of Directors (Board) adopted the final budget of the RDA, effective for the fiscal year beginning July 1, 2023, and ending June 30, 2024, in accordance with the requirements of Section 17C-1-601.5 of the Utah Code. WHEREAS, all conditions precedent to amend the RDA's final annual 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 annual budget of the RDA, as approved, ratified and finalized by the Board on June 13, 2023. 2. Adoption of Amendments. The budget amendments shown on Exhibit A as “Board Approved” are hereby adopted and incorporated into the annual 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 , 202 , to be effective upon adoption. ________________________________ , Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Allison Parks 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] REDEVELOPMENT AGENCY of SALT LAKE CITY SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director STAFF MEMO DATE:March 4, 2024 PREPARED BY:Erin Cunningham, Financial Analyst RE:RDA Budget Amendment #2, FY 2023-2024 REQUESTED ACTION: Discussion and approval of Budget Amendment #2 BUDGET IMPACTS:The Second Amendment will not affect the Agency's overall budget total. Its purpose is to reappropriate several project budgets and reallocate funds previously appropriated at a program level and into two new project budgets. EXECUTIVE SUMMARY: This amendment proposes the reappropriation of budgets previously earmarked for various projects and reallocating program-level appropriations into two new projects. Identified project budgets are either complete with surplus funds or more effectively integrated into larger projects. It is recommended that program-level appropriations, including "Station Center Infrastructure Funds" and "Depot District Infrastructure Funds," be appropriated to two (2) new projects. The amendment maintains the total budget of appropriations but alters their distribution. There is a total of $10,802,277 in appropriations not currently allocated to projects. Additionally, there are five project budgets available for reappropriation, totaling $1,364,806. The combined total of $12,167,583 is proposed for allocation to two new projects. ANALYSIS & ISSUES: The Agency is in the process of transitioning to the City's new Enterprise Resource Planning (ERP) software, Workday. In shifting to the new system for project funding, it becomes imperative to recognize that the financial plan for each project must align with designated appropriations. Each appropriation encapsulates details necessary for legal spending, thus ensuring compliance with regulations and policies to which the Agency must adhere. These appropriations represent pools of money set aside for specific purposes, each governed by clear rules regarding expenditure. The elements of each appropriation include the Department (Cost Center), Fiscal Year, Fund, and Project Area (Region). As funds from these appropriations are assigned to various projects, the remaining balance within each appropriation will decrease. Previously, the Agency possessed the flexibility to allocate funds directly from available funding sources to projects. With the adoption of the new system, the Agency's overall budget is perceived as a collection of these appropriations, necessitating that all project budgets derive their funding from them. This arrangement precludes the possibility of projects maintaining their own, independent budgets. The structure now adopts a two-tiered approach: the comprehensive budget comprising all appropriations, and the individual project budgets that must be funded in accordance with these appropriations. Reallocation of Appropriations This budget amendment pertains to the redistribution of funds formerly designated as "Station Center Infrastructure Funds" and "Depot District Infrastructure Funds." The table below illustrates the current appropriations. The amendment proposes to reappropriate funds from two categories: Appropriations with the "Available" status are not currently tied to any projects. Staff is seeking to reallocate $10,802,777 of these appropriations to support two (2) new projects described below. Appropriations and Project Budgets with the "Rescope" status are intended to be detached from their existing assignments and rescoped to support the same two (2) projects. This $1,364,805.62, combined with the amount above totals $12,167,583 Status Appropriation Project Budget Available Prior Year Balances through FY23-DD-Infrastructure Improvements-DD Capital Reserve - Infrastructure Improvements -{Holding Account}- 5,220,186.00 Prior Year Balances through FY23-PIF-Infrastructure Improvements-DD Capital Reserve - Infrastructure Improvements -{Holding Account}- 1,902,535.00 RDA Key Changes FY24-DD- Infrastructure Improvements-DD Capital Reserve - Infrastructure Improvements -{Holding Account}- 3,680,056.00 Available Total 10,802,777.00 Rescope FY23-DD-Infrastructure Improvements-DD Capital Project: PRJ-000002 100 S Underground Powerlines 388,981.00 Capital Project: PRJ-000071 Depot District Environmental Remediation 200,000.00 Capital Project: PRJ-000072 Station Center Shared Parking 275,639.00 Capital Project: PRJ-000073 Central Station 414,121.00 FY23-PIF-Infrastructure Improvements-NPA Capital Project: PRJ-000068 SL Mattress Warehouse 86,064.62 Rescope Total 1,364,805.62 Total 12,167,583 which are outlined in the table below. Fund Program Appropriation Current Budget Change Proposed Budget Depot District Commercial Property Disposition RDA-FY23-DD- Commercial Property Disposition-DD 0 5,498,927 5,498,927 Infrastructure Improvements RDA-FY23-DD- Infrastructure Improvements-DD 0 1,000,000 1,000,000 Program Income Fund Commercial Property Disposition RDA-FY23-PIF- Commercial Property Disposition-DD 0 1,601,073 1,601,073 Total 0 8,100,000 8,100,000 Fund Program Appropriation Current Budget Change Proposed Budget Depot District Infrastructure Improvements RDA-FY24-DD- Infrastructure Improvements-DD 0 3,680,056 3,680,056 Program Income Fund Infrastructure Improvements RDA-FY23-PIF- Infrastructure Improvements-DD 0 301,462 301,462 RDA-FY23-PIF- Infrastructure Improvements-DD (from NPA) 0 86,065 86,065 Total 0 4,067,583 4,067,583 PREVIOUS BOARD ACTION: 1. Approval of the Fiscal Year 2023-2024 Budget. 2. Approval of the Fiscal Year 2023-2024 Budget Amendment #1. ATTACHMENTS: 1. Supplemental Slides. Current Appropriation and Project Budgets NPA: Non-Project Area. Funding does not have a legal or Board directed requirement to be spent within a specific project area. Status Appropriation Fund Program Region Project Budget Available FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD Unallocated 5,220,186.00 FY23-PIF-Infrastructure Improvements-DD Program Income Fund Infrastructure Improvements DD Unallocated 1,902,535.00 FY24-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD Unallocated 3,680,056.00 Available Total 10,802,777.00 Rescope FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD PRJ-000002 100 S Underground Powerlines 388,981.00 PRJ-000071 Depot District Environmental Remediation 200,000.00 PRJ-000072 Station Center Shared Parking 275,639.00 PRJ-000073 Central Station 414,121.00 FY23-PIF-Infrastructure Improvements-NPA Program Income Fund Infrastructure Improvements NPA PRJ-000068 SL Mattress Warehouse 86,064.62 Rescope Total 1,364,805.62 In Use FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD PRJ-000017 Artspace Stormwater Relocation 200,000.00 PRJ-000063 Station Center Design 331,313.11 FY23-DD-Infrastructure Studies and Planning-DD Depot District Infrastructure Studies and Planning DD PRJ-000054 Station Center Vision & Implementation Plan 434,696.00 FY23-DD-Other Housing-DD Depot District Other Housing DD PRJ-000064 Home Inn Rio Grande Maintenance 23,292.68 FY23-PIF-Infrastructure Improvements-NPA Program Income Fund Infrastructure Improvements NPA PRJ-000017 Artspace Stormwater Relocation 320,127.53 PRJ-000068 SL Mattress Warehouse 5,644.00 In Use Total 1,315,073.32 Total 13,482,655.94 Proposed Budget Changes by Appropriation Appropriation Fund Program Region Current Budget Change Proposed Budget FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD 7,030,240 (6,498,927)531,313 FY23-DD-Infrastructure Studies and Planning-DD Depot District Infrastructure Studies and Planning DD 434,696 -434,696 FY23-DD-Other Housing-DD Depot District Other Housing DD 23,293 -23,293 FY23-PIF-Infrastructure Improvements-DD Program Income Fund Infrastructure Improvements DD 1,902,535 (1,902,535)- FY23-PIF-Infrastructure Improvements-NPA Program Income Fund Infrastructure Improvements NPA 411,836 (86,065)325,772 FY24-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD 3,680,056 (3,680,056)- FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD -1,000,000 1,000,000 FY23-DD-Commercial Property Disposition-DD Depot District Commercial Property Disposition DD -5,498,927 5,498,927 FY23-PIF-Commercial Property Disposition-DD Program Income Fund Commercial Property Disposition DD -1,601,073 1,601,073 FY23-PIF-Infrastructure Improvements-DD Program Income Fund Infrastructure Improvements DD -301,462 301,462 FY23-PIF-Infrastructure Improvements-NPA Program Income Fund Infrastructure Improvements DD -86,065 86,065 FY24-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD -3,680,056 3,680,056 Total 13,482,656 -13,482,656 New Project: Station Center Property Disposition & Site Work RDA-FY23-DD-Commercial Property Disposition-DD 5,498,927 RDA-FY23-DD-Infrastructure Improvements-DD 1,000,000 RDA-FY23-PIF-Commercial Property Disposition-DD 1,601,073 Proposed Appropriation Station Center Property Disposition & Site Work 8,100,000 New Project New Project: Depot District Infrastructure, Design, Construction, & Site Work RDA-FY24-DD-Infrastructure Improvements-DD 3,680,056 RDA-FY23-PIF-Infrastructure Improvements-DD 301,462 RDA-FY23-PIF-Infrastructure Improvements-DD 86,065 Proposed Appropriation Depot District Infrastructure, Design, Construction, & Site Work 4,067,583 New Project Workday Worktags & the RDA Budget Worktags allow for tracking of costs, revenues, and other operational metrics across different dimensions like departments, projects, or geographic locations. The Redevelopment Agency’s budget utilizes the following Worktags: Cost Center: Represents a specific department, unit, or division within an organization that is responsible for certain costs. The RDA is a cost center. Fiscal Year: The original year the funds were appropriated. Fund: Used to categorize and segregate financial transactions based on the origin of the funds, which is crucial for accurate financial reporting and compliance. The RDA has Project Area, Housing, Multi-Use, and Operations funds, with various legal and policy-related requirements that need to be monitored. Program: Enables the segregation and monitoring of financial data, which represents a specific pool of money that needs to be tracked for various legal, policy, or Board-directed initiatives related to RDA programs. The Program Worktags are designed to fit within program hierarchies such as Housing, Commercial, Infrastructure, and Operations programs. Region: Segments expenses based on location, which for the RDA is usually a Project Area. Not all expenses will be associated with a project area, which means this Worktag may not always be used. Appropriation: Combines the elements of Cost Center, Fund, Program, and Region into a single, comprehensive identifier, with the fiscal year as a prefix. Appropriation Cost Center FundFiscal Year Program Region Appropriations & Project Budgets Operations Appropriations Annual appropriations for operational expenses. Considered approved to spend when appropriated. If not spent or encumbered by the end of the fiscal year, drops to fund balance. Typically, these would be for RDA operating expenses. Occasionally may be associated with a project budget (for example, an office remodel). Capital Reserves Appropriations Appropriations for programs that carry forward each year. For instance, in the Housing Development Loan Program, a set amount is allocated for loans. Staff will request additional Board approval to use these funds for specific loan projects. Funds not awarded to projects roll forward to the next year, unless reappropriated by the Board. Project Budgets All project budgets must pull from appropriations. Once project budgets have been approved by the Board, the Agency can move forward with spending. Project budgets may have multiple appropriations. Each appropriation supports either the operations of the Agency or projects associated with its various programs. Redevelopment Agency Funds Project Area Funds Must be used within the boundaries of the project area, except for revenues transferred to Primary Housing (legally required), Secondary Housing (supplemental), Agency Operations (defined by interlocal agreements), or other legal reasons. •Central Business District (CBD) •Block 70 (B70) •Depot District (DD) •Granary District (GD) •North Temple (NT) •North Temple Viaduct (NTV) •Stadler Rail (SR) •Northwest Quadrant (NWQ) •State Street (SS) •9 Line (9L) •Block 67 North (B67N) Housing Funds May be used anywhere in the City, unless otherwise directed by the Board, except for the WCI, which must be used west of I-15. •Primary Housing (1H) •Secondary Housing (2H) •Housing Development Fund (HDF) •West Side Community Initiative (WCI) Multi-Use Funds Can be used across project areas (and potentially city-wide), unless otherwise directed by the Board. •Program Income Fund (PIF) •Revolving Loan Fund (RLF) Agency Operations Fund (OPS) •Receives transfers in from other funds to fund the Agency’s operational expenses. In i t i a t i v e N u m b e r / N a m e P r o j e c t A r e a R e v e n u e A m o u n t E x p e n d i t u r e Am o u n t R e v e n u e Am o u n t E x p e n d i t u r e Am o u n t On g o i n g o r O n e - ti m e FT E s 1 RD A R e a l l o c a t i o n o f P r o g r a m - L e v e l A p p r o p r i a t i o n s i n t o Tw o N e w P r o j e c t s De p o t D i s t r i c t - (1 0 , 1 7 8 , 9 8 3 . 0 0 ) On e - t i m e - 1 RD A R e a l l o c a t i o n o f P r o g r a m - L e v e l A p p r o p r i a t i o n s i n t o Tw o N e w P r o j e c t s De p o t D i s t r i c t - 1 0 , 1 7 8 , 9 8 3 . 0 0 O n e - t i m e - 1 RD A R e a l l o c a t i o n o f P r o g r a m - L e v e l A p p r o p r i a t i o n s i n t o Tw o N e w P r o j e c t s Pr o g r a m I n c o m e Fu n d - (1 , 9 8 8 , 6 0 0 . 0 0 ) On e - t i m e - 1 RD A R e a l l o c a t i o n o f P r o g r a m - L e v e l A p p r o p r i a t i o n s i n t o Tw o N e w P r o j e c t s Pr o g r a m I n c o m e Fu n d - 1 , 9 8 8 , 6 0 0 . 0 0 O n e - t i m e - - To t a l o f B u d g e t A m e n d m e n t I t e m s - - - - To t a l b y F u n d , B u d g e t A m e n d m e n t # 1 : Re d e v e l o p m e n t A g e n c y De p o t D i s t r i c t - - - - - Re d e v e l o p m e n t A g e n c y Pr o g r a m I n c o m e Fu n d - - To t a l o f B u d g e t A m e n d m e n t I t e m s - - - - - Fi s c a l Y e a r 2 0 2 3 - 2 4 R D A B u d g e t A m e n d m e n t # 2 Se c t i o n G : B o a r d C o n s e n t A g e n d a - - G r a n t A w a r d s Se c t i o n I : B o a r d A d d e d I t e m s Se c t i o n A : N e w I t e m s Se c t i o n B : G r a n t s f o r E x i s t i n g S t a f f R e s o u r c e s Se c t i o n C : G r a n t s f o r N e w S t a f f R e s o u r c e s Se c t i o n D : H o u s e k e e p i n g Se c t i o n E : G r a n t s R e q u i r i n g N o N e w S t a f f R e s o u r c e s Se c t i o n F : D o n a t i o n s Bo a r d A p p r o v e d Ad m i n i s t r a t i o n P r o p o s e d 1 In i t i a t i v e N u m b e r / N a m e P r o j e c t A r e a R e v e n u e A m o u n t E x p e n d i t u r e Am o u n t R e v e n u e Am o u n t E x p e n d i t u r e Am o u n t On g o i n g o r O n e - ti m e FT E s Fi s c a l Y e a r 2 0 2 3 - 2 4 R D A B u d g e t A m e n d m e n t # 2 Bo a r d A p p r o v e d Ad m i n i s t r a t i o n P r o p o s e d Cu r r e n t Y e a r B u d g e t S u m m a r y , p r o v i d e d f o r i n f o r m a t i o n o n l y FY 2 0 2 3 - 2 4 B u d g e t , I n c l u d i n g B u d g e t A m e n d m e n t s To t a l R e v e n u e RD A B A # 1 T o t a l RD A B A # 2 T o t a l To t a l T o - D a t e Re d e v e l o p m e n t A g e n c y 80 , 8 0 3 , 8 4 1 (6 , 4 7 6 , 0 1 4 ) - 7 4 , 3 2 7 , 8 2 7 T o t a l o f B u d g e t A m e n d m e n t I t e m s 80 , 8 0 3 , 8 4 1 (6 , 4 7 6 , 0 1 4 ) - 7 4 , 3 2 7 , 8 2 7 To t a l E x p e n s e RD A B A # 1 T o t a l RD A B A # 2 T o t a l To t a l T o - D a t e Re d e v e l o p m e n t A g e n c y 80 , 8 0 3 , 8 4 1 (6 , 4 7 6 , 0 1 4 ) - 7 4 , 3 2 7 , 8 2 7 T o t a l o f B u d g e t A m e n d m e n t I t e m s 80 , 8 0 3 , 8 4 1 (6 , 4 7 6 , 0 1 4 ) - 7 4 , 3 2 7 , 8 2 7 Ce r t i f i c a t i o n Bu d g e t M a n a g e r De p u t y D i r e c t o r , C i t y C o u n c i l / R D A B o a r d Co n t i n g e n t A p p r o p r i a t i o n a n d N o t e s 2