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HomeMy WebLinkAbout03/18/2025 - Work Session - Meeting MaterialsSALT LAKE CITY COUNCIL AGENDA WORK SESSION March 18, 2025 Tuesday 5:00 PM Council meetings are held in a hybrid meeting format. Hybrid meetings allow people to join online or in person at the City & County Building. Learn more at www.slc.gov/council/agendas. Council Work Room 451 South State Street, Room 326 Salt Lake City, UT 84111 SLCCouncil.com 5:00 PM Work Session Or immediately following the 2:00 PM Community Reinvestment Agency Meeting No Formal Meeting Please note: A general public comment period will not be held this day. This is the Council's monthly scheduled briefing meeting. Welcome and public meeting rules 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. The Work Session is a discussion among Council Members and select presenters. The public is welcome to listen. Items scheduled on the Work Session or Formal Meeting may be moved and / or discussed during a different portion of the Meeting based on circumstance or availability of speakers. The Website addresses listed on the agenda may not be available after the Council votes on the item. Not all agenda items will have a webpage for additional information read associated agenda paperwork. Generated: 17:20:48 Note: Dates not identified in the project timeline are either not applicable or not yet determined. Item start times and durations are approximate and are subject to change. Work Session Items   1.Informational: State Legislative Briefing Follow-up ~ 5:00 p.m.  30 min. The Council will receive a follow-up briefing about issues affecting the City that may arise during the 2025 Utah State Legislative Session. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, January 7, 2025; Tuesday, February 4, 2025; Tuesday, February 11, 2025; Tuesday, February 18, 2025; and March 18, 2025 Set Public Hearing Date - n/a Hold hearing to accept public comment - n/a TENTATIVE Council Action - n/a      2.Ordinance: Zoning Map Amendment at Approximately 273 East 800 South ~ 5:30 p.m.  20 min. The Council will receive a briefing about a proposal that would amend the zoning for the property at approximately 273 East 800 South from I (Institutional District) to RMF-45 (Moderate/High-Density Multi-Family Residential District). The proposal would enable a deeply affordable housing project development with 34 one-bedroom apartments available to those with 30% Area Median Income (AMI) or lower. The property currently contains a vacant office building. Consideration may be given to rezoning the property to another zoning district with similar characteristics. The project is within Council District 4. Petitioner: Harold Woodruff, on behalf of First Step House. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, March 18, 2025 Set Public Hearing Date - Tuesday, March 25, 2025 Hold hearing to accept public comment - Tuesday, April 15, 2025 at 7 p.m. TENTATIVE Council Action - Tuesday, May 6, 2025      3.Ordinance: Alley Vacation Near 1409 South Edison Street ~ 5:50 p.m.  20 min. The Council will receive a briefing about a proposal to vacate a portion of City-owned alley adjacent to properties at approximately 1409 South Edison Street and 1404 South 200 East. If approved, the alley segment property would be divided and transferred to the abutting property owners. The Planning Commission forwarded a negative recommendation. Located within Council District 5. Petitioner: Davis Oatway, an adjacent property owner.    FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, March 18, 2025 Set Public Hearing Date - Tuesday, March 25, 2025 Hold hearing to accept public comment - Tuesday, April 15, 2025 at 7 p.m. TENTATIVE Council Action - Tuesday, May 6, 2025   4.Dinner Break ~ 6:10 p.m.  30 min. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Set Public Hearing Date - Hold hearing to accept public comment - TENTATIVE Council Action -      5.Fiscal Year 2025-26 Funding Allocations for One-year Action Plan for Community Development Block Grant & Other Federal Grants ~ 6:40 p.m.  45 min. The Council will receive a briefing on recommendations for allocating grant funding provided through four federal Housing and Urban Development Department (HUD) programs. The recommendations are from a local-resident advisory board, as well as the Mayor, and are based on in-depth review of applications submitted by local organizations. These organizations, which are mostly non-profits, specialize in providing services to Salt Lake City’s most economically vulnerable residents. For fiscal year 2025- 26, approximately $7.7 million dollars is expected to flow through the Division of Housing Stability to the organizations ultimately selected by the Council. The HUD programs that provide this funding and oversee activities of grant recipients are: Community Development Block Grants (CDBG), the HOME Investment Partnership Program, Emergency Solutions Grants (ESG), and Housing Opportunities for Persons with AIDS (HOPWA). The resolution under consideration would also approve an Interlocal Cooperation Agreement between Salt Lake City and the U.S. Department of Housing and Urban Development (HUD), as well as the new fiscal year 2025-29 Consolidated Plan. For more information visit www.tinyurl.com/annualhudgrants. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, March 18, 2025 Set Public Hearing Date - Tuesday, February 18, 2025 Hold hearing to accept public comment - Tuesday, March 4, 2025 at 7 p.m.    TENTATIVE Council Action - Tuesday, April 15, 2025   6.Ordinance: Budget Amendment No.4 for Fiscal Year 2024-25 Written Briefing  - The Council will receive a written briefing about Budget Amendment No.4 for the Fiscal Year 2024-25 Budget. Budget amendments happen several times each year to reflect adjustments to the City’s budgets, including proposed project additions and modifications. The proposed amendment includes a grant to mitigate lead paint hazards. For more information visit tinyurl.com/SLCFY25. FYI – Project Timeline: (subject to change per Chair direction or Council discussion) Briefing - Tuesday, March 18, 2025 Set Public Hearing Date - Tuesday, March 4, 2025 Hold hearing to accept public comment - Tuesday, March 25, 2025 at 7 p.m. TENTATIVE Council Action - Tuesday, April 1, 2025      Standing Items   7.Report of the Chair and Vice Chair -  - Report of Chair and Vice Chair.     8.Report and Announcements from the Executive Director -  - Report of the Executive Director, including a review of Council information items and announcements. The Council may give feedback or staff direction on any item related to City Council business, including but not limited to scheduling items.     9.Tentative Closed Session -  - The Council 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: a. discussion of the character, professional competence, or physical or mental health of an individual; b. strategy sessions to discuss collective bargaining; c. strategy sessions to discuss pending or reasonably imminent litigation; d. strategy sessions to discuss the purchase, exchange, or lease of real property, including any form of a water right or water shares, if public discussion of the transaction would: (i) disclose the appraisal or estimated value of the property under consideration; or     (ii) prevent the public body from completing the transaction on the best possible terms; e. strategy sessions to discuss the sale of real property, including any form of a water right or water shares, if: (i) public discussion of the transaction would: (A) disclose the appraisal or estimated value of the property under consideration; or (B) prevent the public body from completing the transaction on the best possible terms; (ii) 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; f. discussion regarding deployment of security personnel, devices, or systems; and g. investigative proceedings regarding allegations of criminal misconduct. A closed meeting may also be held for attorney-client matters that are privileged pursuant to Utah Code § 78B-1-137, and for other lawful purposes that satisfy the pertinent requirements of the Utah Open and Public Meetings Act. CERTIFICATE OF POSTING On or before 5:00 p.m. on Thursday, March 13, 2025, 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. KEITH REYNOLDS 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@slc.gov, 801-535-7600, or relay service 711. 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 COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY TO:City Council Members FROM:Brian Fullmer Policy Analyst DATE:March 18, 2025 RE: First Step House Zoning Map Amendment at Approximately 273 East 800 South PLNPCM2024-01153 ISSUE AT A GLANCE The Council will be briefed about a proposal to amend the zoning map for the parcel at 273 East 800 South from its current I (Institutional) zoning to RMF-45 (Moderate/High Density Multi-Family Residential). First Step House, an organization that assists those with very low income and behavioral health conditions, owns the property and intends to construct a deeply affordable housing development with approximately 34 one-bedroom apartments available to those with incomes at 30% area median income (AMI) or lower. Multi-family housing is not permitted in the I zoning district unless adaptive reuse incentives are used. A vacant single story office building on the site was not large enough to be utilized for the intended housing and has been demolished. The Planning Commission reviewed the proposal at its December 11, 2024 meeting and held a public hearing at which six people spoke or had their comments read expressing opposition to the proposal. Concerns cited include: an oversaturation of homeless services in the area, the proposed building is out of character for the neighborhood, and a preference for family-sized for sale housing to help stabilize the neighborhood. Planning staff recommended and the Commission voted 6-0 to forward a positive recommendation to the Council with a condition that the applicant enter into a development agreement with the City requiring the housing to be available to those with incomes at 30% AMI or lower. Goal of the briefing: Review the proposed zoning map amendments, determine if the Council supports moving forward with the proposal. Item Schedule: Briefing: March 18, 2025 Set Date: March 25, 2025 Public Hearing: April 15, 2025 Potential Action: May 6, 2025 Page | 2 POLICY QUESTION 1. The Council may wish to discuss with the Administration how the proposed RMF-35/45 zoning consolidation project might affect the applicant’s request. This petition was on the Wednesday, March 12 Planning Commission agenda. (See Consideration 4 below for more information.) 2. The Council may wish to discuss the Planning Commission recommendation to include a development agreement restricting housing to those with incomes at 30% AMI or lower if a residential development is constructed on the property. ADDITIONAL INFORMATION The approximately 0.64-acre parcel is located on the northwest corner of 800 South and 300 East. Surrounding zoning is a mix of low and medium-density RMF-30, 35, and 45 multi-family, RB (Residential Business), and SR-3 (Special Development Pattern Residential) as shown in the area zoning map below. Single-family homes are located to the west of the subject property and fronting 800 South east of 300 East. Multi-family residential developments are located to the north, east, and south. First Step House also owns a facility at 440 South 500 East that provides treatment services for those recovering from addiction. The proposed building that is the subject of this request is not intended to provide treatment but would have onsite supportive services including move-in orientation, case management, and tenant rights education. Area zoning map with the subject property shaded in blue. Transit options in the area include bus lines on 900 South, and on State Street. Additionally, the red line Library Trax station is approximately a half mile to the north on 400 South. There is also a network of bike lanes in the area including a protected lane on 300 East. Page | 4 The Council is only being asked to consider rezoning the property. Because zoning of a property can outlast the life of a building, any rezoning application should be considered on the merits of changing the zoning of that property, not simply based on a potential project. KEY CONSIDERATIONS Planning staff identified five key considerations related to the proposal which are found on pages 3-5 of the Planning Commission staff report and summarized below. For the complete analysis, please see the staff report. Consideration 1 – How the Proposal Helps Implement City Goals & Policies Identified in Adopted Plans Planning staff reviewed the proposed zoning map amendment and how it aligns with Plan Salt Lake, Housing SLC, and Thriving in Place. They found the proposal would provide deeply affordable housing units in an area with needed infrastructure, services and nearby transit options. Although the Central Community Master Plan future land use map calls for this property to remain within the Institutional zoning district, Planning noted there is not demand for office space in the existing building. Consideration 2 – General Plan Amendment As discussed above, the Central Community Master Plan future land use map lists the property as Institutional. In most instances a general plan amendment would be required so the proposed zoning would align with the area’s community plan. However, City code does not require a general plan amendment when proposed zoning includes affordable housing that is consistent with an identified need in a housing plan adopted by the City. Consideration 3 – Comparison of Zoning Districts The following table found on pages 4-5 of the Planning Commission staff report compares current and proposed zoning designations. It is replicated here for convenience. Notable differences include reduced setbacks and buffers between the proposed building and adjacent single-family homes in the RB, and RMF-35 zones. Additionally, as discussed above, the Institutional zone allows residential uses only when adaptive reuse incentives are used for existing buildings. Zoning Standard Institutional (Current)RMF-45 (Proposed) Maximum Height 35 feet and up to 75 feet with design review and additional setbacks. 45 feet Front Yard 20 feet 25 feet Rear Yard 25 feet 30 feet Interior Side Yard 20 feet 8-10 feet Page | 5 Maximum Building Coverage 60%60% Landscape Buffers Required when abutting a residential district. Required when abutting a lot in a single-family or two-family residential district. Allowed Uses No residential uses allowed, unless utilizing incentives to reuse existing building(s). All forms of residential are allowed, except two-family and twin homes. Design Standards Required Exterior lighting None required Consideration 4 – Potential Future Zoning Changes Planning staff has been working on a proposal to combine the RMF-35 and RMF-45 zoning districts into a new RMF-40 zoning district with a maximum height of 40 feet. However, on March 12, 2025 the Planning Commission received a follow-up briefing on the proposed RMF-35/45 zoning consolidation and held a public hearing. The Commission voted to continue the public hearing and table the item. Planning staff was asked to continue working on the proposal. This will be reviewed again by the Commission before making a recommendation to the City Council. The proposed consolidation, as currently proposed, does not include an option to add additional height through the Affordable Housing Incentives. In terms of how these proposed changes affect this project, it is worth noting that a future development on the subject site would be vested under zoning regulations in place when a complete building permit application is submitted. The desired height of this applicant would currently work within the existing RMF45 zone. Consideration 5 –Public Input Planning staff received several emails and phone calls supporting and opposing the proposed development at the subject site. Those who are opposed cited concerns with the concentration of affordable housing, social services, and homeless resources in the neighborhood, parking, and crime. Those expressing support of the proposal noted the opportunity to help people who need services, the good work First Step House does, and the benefits of providing housing for unsheltered people in the community. The Central City Neighborhood Council submitted a letter to Planning expressing opposition to the proposed development if the property is rezoned. They cited concerns with an existing concentration of supportive services and low-income housing, the site’s proximity to Taufer Park and apartments that have a history of drug problems, and a desire to have for sale and/or family-sized housing, or retail uses on the site. Analysis of Standards Attachment D (pages 32-34) of the Planning Commission staff report outlines zoning map amendment standards that should be considered as the Council reviews this proposal. The standards and findings are summarized below. Please see the Planning Commission staff report for additional information. Factor Finding Page | 6 Whether a proposed map amendment is consistent with the purposes, goals, objectives, and policies of the city as stated through its various adopted planning documents. Complies Whether a proposed map amendment furthers the specific purpose statements of the zoning ordinance. Complies The extent to which a proposed map amendment will affect adjacent properties May affect abutting properties due to potential height. Some surrounding properties could be developed to similar heights and uses. Whether a proposed map amendment is consistent with the purposes and provisions of any applicable overlay zoning districts which may impose additional standards. Not applicable The potential impacts on the city to provide safe drinking water, storm water, and sewer to the property and other properties based on the additional development potential of future development including any impact that may result in exceeding existing or planned capacities that may be located further away from the subject property. Utilities already exist but the developer may need to upgrade. The status of existing transportation facilities, any planned changes to the transportation facilities, and the impact that the proposed amendment may have on the city’ s ability, need, and timing of future transportation improvements. Nearby bus, Trax, and bike lanes provide transportation options. The proximity of necessary amenities such as parks, open space, schools, fresh food, entertainment, cultural facilities, and the ability of current and future residents to access these amenities without having to rely on a personal vehicle. Parks, shops, restaurants, and the future Intermountain Health hospital are within walking or biking distance. The potential impacts to public safety resources created by the increase in development potential that may result from the proposed amendment. No concerns from police but recommended installing fencing, cameras and lighting. The potential for displacement of people who reside in any housing that is within the boundary of the Not applicable Page | 7 proposed amendment and the plan offered by the petitioner to mitigate displacement. The potential for displacement of any business that is located within the boundary of the proposed amendment and the plan offered by the petitioner to mitigate displacement. Not applicable The community benefits that would result from the proposed map amendment. Provides deeply affordable housing. City Department Review During City review of the petitions, no responding departments or divisions expressed concerns with the proposal but stated additional review, permits, and utility upgrades would be required if the property is developed. PROJECT CHRONOLOGY • October 8, 2024 – Petition for zoning map amendment received by Planning Division and assigned to Cassie Younger, Senior Planner. • October 15, 2024 – o Central City Community Council and additional recognized organizations sent notice informing them of the petition. o Early notification letters mailed to property owners and residents within 300 feet of the proposal. • October 20, 2024 – Proposal posted to the City’s online open house webpage. • November 6, 2024 – Applicant presented their proposal at the Central City Community Council meeting. • November 23, 2024 – Planning Commission public hearing notice posted on property. • November 27, 2024 – Public hearing notice posted to City and State websites and hearing notice mailed. • December 11, 2024 – Planning Commission public hearing. The Commission voted 6:0 to forward a positive recommendation to the City Council. • January 6, 2025 – Ordinance requested from City Attorney’s Office. • February 19,2025 – Planning received signed ordinance from the Attorney’s Office. • February 21, 2025 – Transmittal received in City Council Office. 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 COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY TO:City Council Members FROM:Brian Fullmer, Policy Analyst DATE:March 18, 2025 RE: Alley Vacation – Alley Section Adjacent to 1409 South Edison Street (PLNPCM2024-00439) ISSUE AT-A-GLANCE The Council will be briefed about a proposal to vacate an approximately 11-foot by 52-foot alley segment between the applicant’s property at 1409 South Edison Street, and property at 1404 South 200 East in City Council District Five. The alley begins at Cleveland Avenue and dead ends at the applicant’s north property line where it meets a concrete wall around property owned by the State of Utah. If approved by the City Council, the alley property would be divided and given to the two abutting property owners. Both owners are supportive of the alley vacation. Planning staff recommended the Planning Commission forward a positive recommendation to the City Council. The Commission reviewed this petition at its November 13, 2024 meeting and held a public hearing at which no one spoke. Commissioners discussed the potential for the adjacent State of Utah property being redeveloped at some point and benefits of an alley serving the property. The Commission voted unanimously to forward a negative recommendation to the City Council for the proposed alley vacation. Goal of the briefing: Review the alley closure and determine if the Council supports moving forward with the proposal. Item Schedule: Briefing: March 18, 2025 Set Date: March 25, 2025 Public Hearing: April 15, 2025 Potential Action: May 6, 2025 Page | 2 Aerial image showing separate alleys (in purple) north and south of State of Utah property (outlined in red). (An alley was never platted on the State property.) The subject alley vacation segment is indicated by a green check mark. A red “X” indicates where the north alley is blocked adjacent to Utah Power & Light property outlined in blue. A second red “X” indicates where Edison Street south of 1300 South terminates at the State property. Image courtesy of Salt Lake City Planning Division ADDITIONAL INFORMATION A gate blocking the alley at the south end of the applicant’s property was illegally constructed by a previous owner many years ago. The applicant did not realize the alley property was not his until he received a zoning enforcement notice for blocking the alley. Property owners to the south use the alley to access their properties and garages. This use will not be affected if the subject alley segment is vacated. During the Planning Commission briefing Commissioners expressed a desire for the applicant to be able to use the alley property while preserving options for future connectivity to the north. They asked about an easement that would accomplish this. The Attorney’s Office said that is a possibility but would be a process separate from the subject alley vacation. A different alley runs between the north side of the State of Utah property mentioned above and 1300 South. It is worth noting that an alley was not platted on the State property, so the two alley sections never connected to form a complete alley through the block between Cleveland Avenue and 1300 South. Utah Power & Light has a power facility adjacent to the State of Utah property that blocks the alley north of the State property. Page | 3 Rocky Mountain Power has an easement on the full length of the alley from Cleveland Avenue to the applicant’s property. This allows the company to service its overhead power lines. Access to these lines will need to be maintained if the Council adopts the alley vacation request. City Department Review Attachment G of the Planning Commission staff report includes comments from City department review of the proposal. These are summarized below. Please see the staff report for additional information. During City review of the petition, the Engineering Division said it is generally opposed to vacating public rights-of-way. The existing Rocky Mountain Power easement was also discussed and the requirement to maintain access for the company to service its lines. No other responding departments or divisions expressed concerns with the proposal. KEY CONSIDERATIONS Planning staff identified three key considerations during analysis of these proposals which are found on pages 5-6 of the Planning Commission staff report and summarized below. For the complete analysis please see the staff report. Consideration 1 – Property Owner Consent City code requires a minimum of 75% of property owners abutting alleys being considered for vacation sign a petition expressing support. As noted above, there are two properties abutting the subject alley segment and both property owners signed the petition. Consideration 2 – Policy Considerations Planning staff found the proposed alley vacation satisfies the Lack of Use policy consideration included in the table below. Consideration 3 – Master Plan Considerations Planning staff reviewed how the proposed alley vacation aligns with the Central Community Master Plan and Plan Salt Lake. Both plans support connectivity and circulation within neighborhoods. Alleys can help provide these connections, but because the subject alley does not connect through the block between Cleveland Avenue and 1300 South, it only serves abutting property owners. And as noted above, the proposed vacation would impact the two property owners next to the alley segment. ANALYSIS OF STANDARDS Attachment E (pages 13-15 of the Planning Commission staff report) includes factors to consider when reviewing alley vacation requests. The following is a summary of what is in the staff report. Please see the report for additional information. Factor Finding 14.52.020 - The City will not consider disposing of its interest in an alley, in whole or in part, unless it receives a petition in writing which demonstrates that the disposition satisfies at least one of the following policy considerations: A - Lack of Use- The City’s legal interest in the property appears of record or is reflected on an applicable plat; however, it is evident from an on-site inspection that the alley does not physically exist or has been materially blocked in a way that renders it unusable as a public right-of-way. Complies Planning staff found the alley vacation request is consistent with policy consideration A – Lack of Use. Page | 4 B - Public Safety- The existence of the alley is substantially contributing to crime, unlawful activity or unsafe conditions, public health problems, or blight in the surrounding area. C - Urban Design- The continuation of the alley does not serve as a positive urban design element. D - Community Purpose- The petitioners are proposing to restrict the general public from use of the alley in favor of a community use, such as a neighborhood play area or garden. Section 14.52.030.B Salt Lake City Code directs the Planning Division to analyze factors in the following table. Planning staff found the proposed alley meets six of the eight factors. Factor Planning Staff Finding The City Police Department, Fire Department, Transportation Division, and all other relevant City Departments and Divisions have no objection to the proposed disposition of the property. Does not comply. The Engineering Division noted it generally opposes any vacation of public rights-of-way. The petition meets at least one of the policy considerations stated above. Complies with Policy Consideration A – Lack of Use. The petition must not deny sole access or required off- street parking to any adjacent property. Complies The petition will not result in any property being landlocked. Complies The disposition of the alley property will not result in a use which is otherwise contrary to the policies of the City, including applicable master plans and other adopted statements of policy which address, but which are not limited to, mid-block walkways, pedestrian paths, trails, and alternative transportation uses. Complies No opposing abutting property owner intends to build a garage requiring access from the property, or has made application for a building permit, or if such a permit has been issued, construction has been completed within 12 months of issuance of the building permit. Complies The petition furthers the City preference for disposing of an entire alley, rather than a small segment of it; and Does not comply. The request is to vacate only a segment of the alley. The alley is optional for actual or potential rear access to residences or for accessory uses. Complies PROJECT CHRONOLOGY July 12, 2024 – Petition submitted to Salt Lake City Planning Division. July 18, 2024 – Petition assigned to Diana Martinez, Senior Planner. August 21, 2024 – o Early notification sent to the Liberty Wells Community Council Chair. o 45-day input period begins. August 22, 2024 – Early notification letter sent to abutting property owners and tenants within 300 feet of the alley segment requested to be vacated. Page | 5 October 7, 2024 – 45-day comment period for recognized organizations ends. November 1, 2024 – Public hearing notice signs with project information posted at the applicant’s address and at the beginning of the alley on Cleveland Avenue. December 13, 2023 – Planning Commission held a public hearing and forwarded a unanimous negative recommendation to the City Council for the proposed amendments. November 14, 2024 – Ordinance requested from Attorney’s Office February 21, 2025 – Ordinance received from Attorney’s Office. March 4, 2025 – Transmittal received in City Council Office. ALLEY CLOSURE PROCESS The alley closure process is dictated by Chapter 14.52 Salt Lake City Code which is included below for reference. 14.52.010: DISPOSITION OF CITY'S PROPERTY INTEREST IN ALLEYS: The City supports the legal disposition of Salt Lake City's real property interests, in whole or in part, with regard to City owned alleys, subject to the substantive and procedural requirements set forth herein. (Ord. 24-02 § 1, 2002) 14.52.020: POLICY CONSIDERATIONS FOR CLOSURE, VACATION OR ABANDONMENT OF CITY OWNED ALLEYS: The City will not consider disposing of its interest in an alley, in whole or in part, unless it receives a petition in writing which demonstrates that the disposition satisfies at least one of the following policy considerations: A. Lack Of Use: The City's legal interest in the property appears of record or is reflected on an applicable plat; however, it is evident from an on site inspection that the alley does not physically exist or has been materially blocked in a way that renders it unusable as a public right-of-way; B. Public Safety: The existence of the alley is substantially contributing to crime, unlawful activity, unsafe conditions, public health problems, or blight in the surrounding area; C. Urban Design: The continuation of the alley does not serve as a positive urban design element; or D. Community Purpose: The petitioners are proposing to restrict the general public from use of the alley in favor of a community use, such as a neighborhood play area or garden. (Ord. 24-02 § 1, 2002) 14.52.030: PROCESSING PETITIONS: There will be three (3) phases for processing petitions to dispose of City owned alleys under this section. Those phases include an administrative determination of completeness; a public hearing, including a recommendation from the Planning Commission; and a public hearing before the City Council. A. Administrative Determination Of Completeness: The City administration will determine whether or not the petition is complete according to the following requirements: 1. The petition must bear the signatures of no less than seventy five percent (75%) of the neighbors owning property which abuts the subject alley property; 2. The petition must identify which policy considerations discussed above support the petition; 3. The petition must affirm that written notice has been given to all owners of property located in the block or blocks within which the subject alley property is located; 4. A signed statement that the applicant has met with and explained the proposal to the appropriate community organization entitled to receive notice pursuant to title 2, chapter 2.60 of this Code; and 5. The appropriate City processing fee shown on the Salt Lake City consolidated fee schedule has been paid. B. Public Hearing And Recommendation From The Planning Commission: Upon receipt of a complete petition, a public hearing shall be scheduled before the Planning Commission to consider the proposed disposition of the City owned alley property. Following the conclusion of the public hearing, the Planning Commission shall make a report and recommendation to the City Council on the proposed disposition of the subject alley property. A positive recommendation should include an analysis of the following factors: 1. The City Police Department, Fire Department, Transportation Division, and all other relevant City departments and divisions have no reasonable objection to the proposed disposition of the property; 2. The petition meets at least one of the policy considerations stated above; Page | 6 3. Granting the petition will not deny sole access or required off street parking to any property adjacent to the alley; 4. Granting the petition will not result in any property being landlocked; 5. Granting the petition will not result in a use of the alley property which is otherwise contrary to the policies of the City, including applicable master plans and other adopted statements of policy which address, but which are not limited to, mid block walkways, pedestrian paths, trails, and alternative transportation uses; 6. No opposing abutting property owner intends to build a garage requiring access from the property, or has made application for a building permit, or if such a permit has been issued, construction has been completed within twelve (12) months of issuance of the building permit; 7. The petition furthers the City preference for disposing of an entire alley, rather than a small segment of it; and 8. The alley property is not necessary for actual or potential rear access to residences or for accessory uses. C. Public Hearing Before The City Council: Upon receipt of the report and recommendation from the Planning Commission, the City Council will consider the proposed petition for disposition of the subject alley property. After a public hearing to consider the matter, the City Council will make a decision on the proposed petition based upon the factors identified above. (Ord. 22-19, 2019: Ord. 58-13, 2013: Ord. 24-11, 2011) 14.52.040: METHOD OF DISPOSITION: If the City Council grants the petition, the City owned alley property will be disposed of as follows: A. Low Density Residential Areas: If the alley property abuts properties which are zoned for low density residential use, the alley will merely be vacated. For the purposes of this section, "low density residential use" shall mean properties which are zoned for single-family, duplex or twin home residential uses. B. High Density Residential Properties And Other Nonresidential Properties: If the alley abuts properties which are zoned for high density residential use or other nonresidential uses, the alley will be closed and abandoned, subject to payment to the City of the fair market value of that alley property, based upon the value added to the abutting properties. C. Mixed Zoning: If an alley abuts both low density residential properties and either high density residential properties or nonresidential properties, those portions which abut the low density residential properties shall be vacated, and the remainder shall be closed, abandoned and sold for fair market value. (Ord. 24-02 § 1, 2002) 14.52.050: PETITION FOR REVIEW: Any party aggrieved by the decision of the City Council as to the disposition of City owned alley property may file a petition for review of that decision within thirty (30) days after the City Council's decision becomes final, in the 3rd District Court. (Ord. 24-02 § 1, 2002) COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY TO:City Council Members FROM:Allison Rowland, Senior Policy Analyst DATE:March 18, 2025 RE: Fiscal Year 2025-26 Funding Allocations and One-year Action Plan for U.S. Housing and Urban Development Department Grants, including Community Development Block Grants & Others ISSUE AT-A-GLANCE Each year the Council is responsible for allocating millions of dollars in grants from the U.S. Housing and Urban Development Department (HUD) among local organizations that serve Salt Lake City residents. The organizations are primarily non-profits that specialize in providing services to the most economically vulnerable people in the City. For Fiscal Year 2025-26 (FY26), over $7.7 million dollars is expected to flow through the Division of Housing Stability to organizations selected by the Council. The HUD programs that provide this funding and define the eligible activities for grant recipients are: Community Development Block Grants (CDBG); the HOME Investment Partnership Program (HOME); Emergency Solutions Grants (ESG); and, Housing Opportunities for Persons with AIDS (HOPWA). Details on the proposed grants that make up these totals can be found in Attachment C1. FY26 Funding (Estimated) by Grant Category and Source Grant Source Amount Total HUD Award $3,335,779 Recaptured Funding $650,000CDBG Program Income $900,000 $4,885,779 HUD Award $298,628 ESG Recaptured Funding $0 $298,628 HUD Award $823,258 Recaptured Funding $122,000 HOME Program Income $700,000 $1,645,258 HUD Award $945,200 HOPWA Recaptured Funding $0 $945,200 Project Timeline: Set Date: February 18, 2025 1st Briefing & Public Hearing: March 4, 2025 2nd Briefing: March 18, 2025 3rd Briefing: April 1 or 8, 2025 (if needed) Potential Adoption Vote: April 15, 2025 The City’s longer-run funding goals and strategies for using HUD funds are guided by a five-year Consolidated Plan. The updated Plan, which was drafted by the Division of Housing Stability for the period FY2025 to 2029, is also under Council consideration (See Attachment C2). Along with the local goals and strategies that the successful applications must support to access annual grant funding, the draft Plan also proposes slight modifications to the geographical area that must be defined for targeted CDBG spending on public infrastructure and economic development. A map of the proposed target area appears in Attachment C3. Goal of the briefing: Discuss the Council’s federal grant priorities, ask questions about applications, and ultimately, award funding to eligible programs and projects. ADDITIONAL & BACKGROUND INFORMATION Grants offered through HUD provide substantial funding amounts to local organizations that serve people with low- and moderate-income (LMI) levels; people experiencing or on the verge of homelessness; potential homeowners; and people with AIDS/HIV who need affordable housing. Most of the funds are “passed through” the City to specific recipients or programs, including several programs that are administered by the City through an annual competitive grant process. A. Sources of Annual Funds. For FY26, the Division of Housing Stability (which is part of CAN, the Department of Communities and Neighborhoods) estimates that the total amount available in HUD funding for use in housing and related activities is nearly $7.8 million. These grants are considered “entitlement” funds—that is, Federal money provided on a recurring basis, with amounts linked to formulas that consider population and other demographics variables. The amount available to the City also varies each year because it draws from three different sources: new funding, recaptured funds, and program income. The total estimate is the sum of the grants awarded in the previous funding year, combined with any recaptured funds and program income (see below). Staff note: In the past, HUD award amounts have been received sometime between March and May. Since these funds depend on Congressional approval of an annual Federal budget and, as of this writing, Congress is still operating under a Continuing Resolution for Federal FY25, HUD cannot yet issue its finalized award notifications. HUD typically finalizes and announces awards within 30 days. POLICY QUESTION: The Council may wish to discuss potential options with the Administration, should adoption of a Federal budget be further postponed. 1.New Funding. Because the precise amount of new grants is typically not determined before the Council discussion and allocation process, the Division of Housing Stability provides estimates based on awards from the previous funding year. The funding amounts are updated by the Division once final notification is received from HUD, and these are adjusted for each grantee based on contingencies approved by the Council as part of the allocation process (see section E, below). Approximately $6,224,865 in new funds is estimated to be available through the four HUD programs for FY26. Specifically, - Community Development Block Grants (CDBG), $3,335,779; - HOME Investment Partnership Program, $1,645,258; - Emergency Solutions Grants (ESG), $298,628; and, - Housing Opportunities for Persons with AIDS (HOPWA), $945,200. 2. Recaptured Funds. At the close of each HUD program year, once agreements expire or projects are completed, funds available for “recapture” are identified. This occurs when, for example, a project is completed under budget, contracts expire before funds are used, or a project or program is somehow unsuccessful. The City can use these funds in the next round of allocations, subject to the federal requirements, eligibility criteria, and limitations of the original federal funding source. They are not allowed to be used for City administration and planning activities, or for CDBG Public Services programs. For FY26, recaptured CDBG funds amounted to $650,000, and HOME funds to $122,000 (details of specific programs, activities and funding amounts can be found on page 4 of the transmittal). 3. Program Income. Several income-generating programs are funded by CDBG and HOME, including downpayment assistance, first-time homebuyer mortgages, and certain home rehabilitation programs. The amounts fluctuate from year to year. All program income generated by HUD funding must be spent before any entitlement funds are drawn down, so the City typically allocates anticipated program income at the same time as annual entitlement funding. Contingencies are built in for differences between the estimates and actual revenue, since the amount of program income allocated is based on estimates of revenue not yet received. For FY26, the estimated amount of Program Income available for allocation are $900,000 in CDBG funds, and $700,000 in HOME funds. The transmittal notes: “Due to increasing administrative burden in the deployment and oversight of these funds, the Administration is requesting the full allowable 20% (including from Program Income) for the 2025-2026 program year.” B. Estimated Available FY26 Funding by Grant Category and Source. As noted above, any prior-year grant awards that remain unused by the grantee during the year are “recaptured” and made available for other use in the following HUD cycle. The City also adds any “program income” to the annual HUD grant allocations to ensure it is reallocated promptly, per HUD guidance. FY26 Funding (Estimated) by Grant Category and Source Grant Source Amount Total HUD Award $3,335,779 Recaptured Funding $650,000CDBG Program Income $900,000 $4,885,779 HUD Award $298,628 ESG Recaptured Funding $0 $298,628 HUD Award $823,258 Recaptured Funding $122,000 HOME Program Income $700,000 $1,645,258 HUD Award $945,200 HOPWA Recaptured Funding $0 $945,200 The City allocates these funds through an open and competitive process. Applications are evaluated based on HUD requirements and how well they align with the City’s Five-Year Consolidated Plan goals (see section F below). The Council considers all public comments received, along with the recommendations from the Mayor and the Community Development and Capital Improvement Program (CDCIP) advisory board before making funding decisions. All funding decisions made by the Council are ultimately subject to HUD approval. See section G, below, for trends in program funding for Salt Lake City over recent years. 4.Community Development and Block Grant (CDBG). This program provides annual grants to states, cities, and counties to create safe and affordable housing opportunities, expand neighborhood transportation and economic opportunities, invest in social service programs, and more. As noted in the chart above, in FY26 approximately $4,885,779 is available for allocation to CDBG programs. The total sum of local requests for these funds was $9,572,869, nearly double the amount available (see table in section C1 below). CDBG grants focus on community development with an emphasis on physical improvements. CDBG funds are allocated to organizations in three categories, listed below. City administration fees are limited to 20% of the annual grant award and program income received during the program year. a. Housing b. Neighborhood Improvements: This category funds transportation and economic development infrastructure (within the designated target area, see Attachment C3 for map). c. Public Services: This category focuses on services for individuals in need, and not necessarily on physical improvements as other CDBG categories do, and it is typically the most competitive category. Its total amount is limited to 15% of the annual CDBG award, and the recommendations for funding requests from the CDCIP Board and Mayor add up to this maximum. This means that if the Council would like to allocate money to any application beyond the Mayor’s recommended funding in this category, those funds must be shifted from another Public Services application. 5.Emergency Solutions Grant (ESG). The ESG program focuses on preventing homelessness and providing services to individuals who are experiencing homelessness. Examples are street outreach, emergency shelter, prevention efforts, and rapid re-housing assistance. As noted in the chart above, in FY26 approximately $298,628 is available for allocation to ESG programs. The total sum of local funding requests for these funds was $728,481, about two-and-a-half times the amount available (see table in section C1 below). ESG funds are allocated to organizations providing services in two categories. City administration fees are limited to 7.5% of the annual grant award. a. ESG Part 1: Street Outreach and Emergency Shelter (limited to 60% of the total annual grant award). b. ESG Part 2: Homelessness Prevention, Rapid Re-Housing, and Homeless Management Information Systems. 6.HOME Investment Partnership (HOME). This is the only grant program entirely focused on expanding the supply of quality affordable housing for low-to-moderate-income residents. It allows states and municipalities to fund a wide range of activities, such as building, buying, or rehabilitating affordable housing for rent or homeownership, and may provide direct rental assistance to renters. As noted in the chart above, approximately $1,645,258 is available in FY26 for allocation to CDBG programs. The total sum of local funding requests for these funds was $3,292,861, or double the amount available (see table in section C1 below). HOME funds are allocated to organizations providing services in two categories. City administration fees are limited to 10% of the annual grant award and program income received during the program year. a. Standard HOME Funds. b. Community Housing Development Organizations (CHDO). This program specifically, 15% of the annual grant award goes to certified projects for which create or develop affordable rental or homebuyer housing. Rental assistance, homeowner rehabilitation, and down payment assistance are not eligible expenses. For this reason, the Housing Stability Division is working with the Community Reinvestment Agency (CRA) to include these funds in the CRA’s annual Notice of Funding Availability (NOFA) process for funding affordable housing development. The Community Development Corporation of Utah is seeking certification as a CHDO in Salt Lake City, but the Housing Stability Division states that expanding the number of CHDOs remains challenging. Other areas of the country have similarly struggled to meet the certification criteria. 7.Housing Opportunities for Persons with AIDS (HOPWA). The HOPWA Program is the only Federal program dedicated to the housing needs of people living with HIV/AIDS. It provides funding for projects that address the needs and benefit individuals living with HIV/AIDS and their families. As noted in the chart above, approximately $945,200 is available in FY26 for allocation to CDBG programs. The sum of local funding requests for these funds was $812,720, or only 86% of the amount available so both the CDCIP Board and the Mayor recommend providing amounts larger than those requested for the two applicants. The Housing Stability Division is working with the two organizations to determine whether they will be able to make good use of these additional funds. City administration fees are limited to 3% of the annual grant award. C. The Funding Recommendation Process. The Council bases its selection of final HUD grant awards on information from the Division of Housing Stability, as well as the reviews and recommendations of the Community Development and Capital Improvement Program (CDCIP) resident advisory board, and the Mayor. These recommendations are presented in Attachment C1. An additional source of information is the public hearing held at a Formal Meeting early in the deliberation process. 1.A Competitive Process. Typically, the combined amount of total funding requested by applicants significantly exceeds available funds. For FY26, requests total 185% of available funding, with $14,406,932 requested, and only an estimated $7,774,865 available (see table below). As noted in section A above, HUD has not yet confirmed the City’s final award amounts, so at this stage the City works with estimates of available funding that are based on the previous year’s amounts. Estimated FY26 Funding from All Grant Programs Grant Available Funds Total Requests Requests as % of Available Funds CDBG $4,885,779 $9,572,869 196% ESG $298,628 $728,481 244% HOME $1,645,258 $3,292,861 200% HOPWA $945,200 $812,720 86% Total $7,774,865 $14,406,932 185% 2.Recommendations for the Council. In preparation for the Council’s decisions on grant amounts to specific organizations, each application receives a score and a funding recommendation from the CDCIP Advisory Board. These scores and recommendations are provided to the Mayor, who adds funding recommendations of her own. Attachment C4 shows each FY26 application ranked by score within each grant category. These scores are calculated by combining the advisory board's raw score with City staff's administrative and risk assessment scores. The resident advisory board also provides recommendations for funding contingencies, which are applied in the event that actual funding is more or less than estimated. These recommendations are listed in section E, below. These are also subject to Council approval. Additional details for applications in all four annual HUD grants are provided in Attachment C1. These details include project and program descriptions and prior-year award amounts for returning applications. 8.Minimum Funding Threshold. In a previous Council briefing, the Housing Stability Division proposed to increase the minimum funding threshold for HUD Grant applicants from $30,000 to $50,000 annually, which conforms to with best practices. This floor would be included in the new five-year Consolidated Plan and future Annual Action Plans, but the Housing Stability Division opted to keep the funding floor at $30,000 for FY26 since the application process was already underway. The Division reported that applicants and past recipients largely supported increasing the funding floor to $50,000, which is proposed to begin in FY27 to provide sufficient notice to potential applicants. POLICY QUESTION: Would the Council like to discuss the advantages and drawbacks of increasing the minimum funding threshold to $50,000? D. Overview of FY26 Funding Recommendations. 1.Mayoral versus Board Recommendations. As in most other years, the Board and the Mayor agree on the majority of their recommendations for FY26. The two sets of recommendations differ only for the items listed below. See Attachment C4 for the FY 2025-26 Grant Recommendations by score. a.CDGB #6. The board recommends fully funding the $600,000 requested for Habitat for Humanity’s Critical Home Repair Program, while the Mayor recommends funding only $500,000, and moving the remaining $100,000 to Salt Lake City NIS Team. (Also a new application.) b.CDGB #7. The Salt Lake City NIS Team requested $1,377,500 for the Home Repair Program and the Fix the Bricks Program, but both the board and the Mayor recommend much lower amounts, of $745,381 and $845,381, respectively. c.ESG #2 (Part 1). The board recommends fully funding the $60,000 Volunteers of America request for the Youth Resource Center, while the Mayor recommends funding only $50,000, and splitting the remaining $10,000 between items f. and g. below. d.ESG #3 (Part 1). The board recommends fully funding the $60,000 Volunteers of America request for the Geraldine E. King Women's Resource Center, while the Mayor recommends funding only $35,000, and splitting the remaining $25,000 between items f. and g. below. e.ESG #4 (Part 1). The board recommends funding $59,176 of the $60,000 First Step House request for its Resource Center Program, while the Mayor recommends funding only $34,176, and splitting the remaining $25,000 between items f. and g. below. f.ESG #6 (Part 1). The board does not recommend funding the $50,000 Shelter the Homeless request for its Shelter Operations, but the Mayor recommends funding it at $30,000, moving the amount from items c., d., and e. above. g.ESG #7 (Part 1). The board does not recommend funding the $30,800 Ruff Haven request for its Street Outreach, while the Mayor recommends funding it at $30,000, moving the amount from items c., d., and e. above. 9.Disqualified Applications. Two applications were determined to be ineligible this year because they were not eligible uses of the CDBG program funds. The applications are: a.CDGB #9. International Center for Appropriate and Sustainable Technology, Electric Vehicle Charger Installation. (Also a new application.) b.CDGB #44 (Public Services). English Skills Learning Center, Increasing Communication Capacity. (Also a new application.) 10.Returning Project Applications Not Recommended for FY26 Funding. There are 13 returning applications that received grant awards last year but did not receive a funding recommendation this year. a.CDGB #9. NeighborWorks Salt Lake, Home Repair Program and Fix the Bricks Program. $400,000. b.CDGB #25 (Public Services). Wasatch Community Gardens, Green Team Program. $40,000. c.CDBG #26 (Public Services). Boys and Girls Club of Salt Lake City, Childcare Services. $85,000. d.CDBG #27 (Public Services). First Step House, Employment Preparation Program. $68,518. e.CDBG #29 (Public Services). Neighborhood House. Childcare Staffing. $87,387. f.CDGB #31 (Public Services). First Step House, Peer Supportive Services. $90,000. g.CDGB #34 (Public Services). Community Development Corporation of Utah, Community Navigation Program. $75,000. h.CDGB #37 (Public Services). Advantage Services, Employment Services. $100,000. i.CDGB #38 (Public Services). The Road Home, Housing Staffing. $50,000. j.CDGB #39 (Public Services). Shelter the Homeless, Security and Food at Homeless Resource Centers. $50,000. k.CDGB #41 (Public Services). Catholic Community Services, Chef Trainer. $50,000. l.CDGB #42 (Public Services). Catholic Community Services, Employment/Life Skills Coordinator. $50,000. m.CDGB #43 (Public Services). Utah’s Promise, Connecting with Essential Resources. $45,000. 11.New Applications. This year there are 15 new applications for CDBG, which is more than usual. There are also three new applications for ESG. Note that some of these applications are for new programs that would be offered by returning organizations. a.CDGB #3. Odyssey House, Replace HVAC System. Recommended for $250,000. b.CDGB #5. Housing Authority of Salt Lake City. Revitalizing Riverside Apartments. Recommended for $146,625. c.CDGB #6. Habitat for Humanity, Critical Home Repair Program. The board recommends fully funding the $600,000 requested, while the Mayor recommends funding only $500,000, and moving the remaining $100,000 to Salt Lake City NIS Team. d.CDGB #9. International Center for Appropriate and Sustainable Technology, Electric Vehicle Charger Installation. Not recommended for funding. e.CDGB #11. Utah Film Center, Update Film Center. Not recommended for funding. f.CDGB #17 (Public Services). THRIVE Center for Survivors of Torture, Mental Health Services for Refugees. Recommended for $30,000. g.CDGB #20 (Public Services). Food Justice Coalition, Food Services. Recommended for $30,000. h.CDGB #22 (Public Services). International Rescue Committee, VESL Program. Recommended for $40,000. i.CDGB #28 (Public Services). Asian Association, Refugee Financial Education Program. Not recommended for funding. j.CDGB #30 (Public Services). Salt Lake City Public Library, Case Management. Not recommended for funding. k.CDGB #32 (Public Services). YWCA, Domestic Violence Shelter Meals. Not recommended for funding. l.CDGB #33 (Public Services). Salt Lake American, Refugee Services for Survival. Not recommended for funding. m.CDGB #35 (Public Services). Utah Community Action, Childcare Services. Not recommended for funding. n.CDGB #36 (Public Services). Big Brothers Big Sisters of Utah, Support Staffing. Not recommended for funding. o.CDGB #40 (Public Services). Odyssey House, Explorers Program. Not recommended for funding. p.ESG #5 (Part 1). YWCA, Shelter Advocacy. Not recommended for funding. q.ESG #9 (Part 2). Housing Authority of Salt Lake, Homeless Prevention. Not recommended for funding. r.ESG #11 (Part 2). Asian Association, Homeless Prevention. Not recommended for funding. Projects Recommended for More Funding than was Requested. Two applications, both in the HOPWA program, received recommendations from both the Board and the Mayor, for more funding than they had requested. Housing Stability Division staff is checking with the two organizations to ensure they can make use of the additional funding amount. HOPWA #2. Utah Community Action, HOPWA. Requested $191,585; recommended for $227,844. HOPWA #3. Housing Connect, Housing Assistance. Requested $589,779; recommended for $689,000. 12.Organizations with Multiple Applications. Some organizations submit a single application for a program for which they seek funding from multiple grants. Others submit multiple applications for different programs which are narrowly tailored to each grant. Organizations with multiple applications are listed alphabetically in Attachment C5, with total funding requested and the recommended award amounts. E. Funding Contingencies. Annual HUD program funding is allocated by the Council on the basis of estimates of funding that has not yet been received. For this reason, contingencies are needed to compensate for differences between estimates and actual grant amounts received. Each year the advisory board recommends specific contingencies, which are summarized in the table below. The Council may wish to review the contingencies listed below and identify any changes they wish to make in case HUD’s confirmation of final funding amounts is not available by the scheduled vote on April 15. FY26 Council Funding Contingencies If MORE funding is available If LESS funding is available CDBG Allocate 20% of the annual CDBG award to program administration. Allocate 15% of the annual award and estimated 2024- 25 CDBG Program Income to Public Services. Add additional funding to the highest-scoring applications up to the full ask before moving to the next highest- scoring application. As much as practicable, round to the nearest $1,000 or $10,000. Allocate 20% of the annual CDBG award to program administration. Allocate 15% of the annual award and estimated 2024-25 CDBG Program Income to Public Services. Remove funding from the lowest-scoring activities down to the minimum amount required to run the program, moving up from the lowest-scoring, funded activity. If you reach the top of the programs and funding still needs to be decreased, remove the lowest scoring, funded activity, and reallocate the funding to the highest scoring activity up to the board's recommended amounts, moving down the list. Round to the nearest $1,000 or $10,000. ESG Allocate 7.5% of the annual ESG award to program administration. Do not exceed the 60% Part 1 funding cap. Add additional funding to the highest-scoring applications up to the full ask before moving to the next highest-scoring application. As much as practicable, round to the nearest $1,000. Allocate 7.5% of the annual ESG award to program administration. Remove funding from the lowest-scoring activities down to the minimum amount required to run the program, moving up from the lowest-scoring, funded activity. If you reach the top of the programs and funding still needs to be decreased, remove the lowest scoring, funded activity, and reallocate the funding to the highest scoring activity up to the board's recommended amounts, moving down the list. Round to the nearest $1,000. HOME Allocate 10% of the annual HOME award to program administration. Allocate 15% of the annual award for the CHDO Set- Aside. Add additional funding to the highest-scoring applications up to the full ask before moving to the next highest- scoring application. As much as practicable, round to the nearest $1,000 or $10,000. Allocate 10% of the annual HOME award to program administration. Allocate 15% of the annual award and 15% of the estimated 2024-25 CDBG Program Income to Public Services. Remove funding from the lowest-scoring activities down to the minimum amount required to run the program, moving up from the lowest-scoring, funded activity. If you reach the top of the programs and funding still needs to be decreased, remove the lowest scoring, funded activity, and reallocate the funding to the highest scoring activity up to the board's recommended amounts, moving down the list. Round to the nearest $1,000 or $10,000. HOPWA Allocate 3% of the annual HOPWA award to program administration. Add additional funding to the highest-scoring applications up to the full ask before moving to the next highest-scoring application. As much as practicable, round to the nearest $1,000 or $10,000. Allocate 3% of the annual HOPWA award to program administration. Remove funding from the lowest-scoring activities down to the minimum amount required to run the program, moving up from the lowest-scoring, funded activity. If you reach the top of the programs and funding still needs to be decreased, remove the lowest scoring, funded activity, and reallocate the funding to the highest scoring activity up to the board's recommended amounts, moving down the list. Round to the nearest $1,000 or $10,000. F. FY26 HUD Entitlement Allocations and the FY25-29 Consolidated Plan 1.The FY25-29 Consolidated Plan. Each successive five-year Consolidated Plan spells out the goals and strategies that determine eligibility for HUD grant funding and identifies geographic target areas for the CDBG neighborhood improvement category funding (see below). A comparison of the goals and strategies of the current consolidated plan with the proposed FY25-29 Consolidated Plan can be found in Attachment C2. 2.CDBG Neighborhood Improvements Category Target Area in the 2025-2029 Consolidated Plan. The target area delineates the geographic boundaries for spending CDBG funding on economic development and public infrastructure improvements (Attachment C3). Focusing federal grants in specific target areas is intended to maximize community impact and stimulate investments from other entities in these neighborhoods. These applications are included in the CDBG Neighborhood Improvements category on the funding log. Examples of these project types include small business façade improvement grants, public transit improvements, and creation of ADA ramps. A city which does not fund applications that advance the five-year plan could be considered by as underperforming, which may lead to reductions in future grant awards, and audits of the program. Policy Question: Would the Council like to discuss the proposal to shift the current CDBG boundaries as depicted in Attachment C3? 3. Timeline for Allocations and New Consolidated Plan. FY26 HUD Entitlement Allocations FY25-29 Consolidated Plan April 15 Council adoption of FY26 HUD entitlement allocations Council adoption of Consolidated Plan April 1 Third briefing (if needed) March 25 Second briefing March 18 First briefing March 4 Mayor’s funding recommendations. Council public hearing. Council public hearing February 18 Set date for public hearing Set date for public hearing February 11 Follow-up briefing for Draft 5- year HUD Consolidated Plan FY25-2029 (initial briefing October 1, 2024). G. Trends in City Housing Funding. As seen in the chart below, HUD Grant funding has remained relatively stable throughout recent years. The largest exception is the sharp increase in HOPWA funding over the period, which resulted from 2016 Federal legislation that adjusted the funding formula to better reflect HIV epidemic data. Continued funding increases are not expected because the phased formula adjustment has now been fully implemented. POLICY QUESTION: The Council might wish to engage the Administration in a discussion about funding shifts in the other HUD Grant programs over this period. GENERAL POLICY QUESTIONS 1. Does the Council have any questions about the funding recommendations from the Advisory Board and the Mayor? 2. Would Council Members like to suggest any potential funding shifts among applications? ATTACHMENTS Attachment C1. Recommended Uses of FY2025-26 Federal Funding. Attachment C2. Proposed FY2025 to 2029 Consolidated Plan Goals and Strategies. Attachment C3. Target Area Map for CDBG Neighborhood Improvements (2025-2029 Consolidated Plan). Attachment C4. FY 2025-26 Grant Recommendations by Score. Attachment C5. Organizations with Multiple Applications. $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26* CDBG ESG HOME HOPWA Trends in Final Allocations from HUD Programs All data provided by the Housing Stability Division. *Allocation for FY26 is an estimate based on previous years' funding. Attachment CXX. Organizations with Multiple Applications. Where funding recommendations are the same for the Board and the Mayor, a single dollar figure appears. Exceptions are noted. Application Funding Requested Recommended for funding? CDBG #28 (Public Services). Refugee Financial Education Program $114,387 No Asian Association ESG #11 (Part 2). Homeless Prevention $49,669 No CDBG #41 (Public Services). Chef Trainer $50,000 NoCatholic Community Services CDBG #42 (Public Services). Employment/Life Skills Coordinator $50,000 No HOME #9. Down Payment Assistance $210,000 NoCommunity Development Corporation of Utah CDBG #34 (Public Services). Community Navigation Program $75,000 No CDBG #4. Building Renovations $330,000 $280,000 CDBG #27 (Public Services). Employment Preparation and Placement Program $68,518 No CDBG #31 (Public Services). Peer Supportive Services $90,000 No ESG #4 (Part 1). Resource Center Program $60,000 $59,176 by Board; $34,176 by Mayor First Step House HOME #6. Tenant-Based Rental Assistance $283,119 $283,119 ESG #9 (Part 2). Homeless Prevention $82,500 NoHousing Authority of Salt Lake City CDBG #5. Revitalizing Riverside Apartments $189,750 $146,625 HOME #10. New City Plaza Construction $1,000,000 No Housing Connect HOPWA #3. Housing Assistance $589,779 $689,000 HOME #8. Down Payment Assistance $200,000 NoNeighborWorks Salt Lake CDBG #8. Home Repair Program $400,000 No CDBG #3. Replace HVAC System $250,000 $250,000 CDBG #19 (Public Services). Treatment Support.$150,000 $75,000 CDBG #21 (Public Services). Bus Passes $90,000 $33,366Odyssey House CDBG #40 (Public Services). Explorers Program $112,000 No CDBG #7. Home Repair Program and Fix the Bricks Program $1,377,500 $745,381 by Board; $845,381 by MayorSalt Lake City NIS Team CDBG #10. Neighborhood Business Improvement Program $950,000 $650,000 CDBG #39 (Public Services). Security and Food at Housing Resource Centers $50,000 No Shelter the Homeless ESG #6 (Part 1). Shelter Operations $50,000 $0 by Board; $30,000 by Mayor CDBG #24 (Public Services). Domestic Violence Shelter Services $40,000 $30,000South Valley Services HOME #3. Tenant-Based Rental Assistance $178,431 $178,431 Application Funding Requested Recommended for funding? CDBG #23 (Public Services). Resource Center Staffing $101,048 $30,000 CDBG #38 (Public Services). Housing Staffing $50,000 No ESG #10 (Part 2). Rapid Re-Housing $91,888 $30,000The Road Home HOME #7. Tenant-Based Rental Assistance $350,000 $340,885 CDBG #35 (Public Services). Childcare Services $240,000 No ESG #8 (Part 2). Rapid Re-Housing $146,227 $67,054 HOME #4. Tenant-Based Rental Assistance $287,141 $287,141 Utah Community Action HOPWA #2. HOPWA $194,585 $227,844 ESG #2 (Part 1). Youth Resource Center $60,000 $60,000 ESG #3 (Part 1). Geraldine E King Women's Resource Center $60,000 $60,000 by Board; $35,000 by MayorVolunteers of America HOME #5. Tenant-Based Rental Assistance $174,867 4174,867 CDBG #32 (Public Services). Domestic Violence Shelter Meals $60,000 No YWCA ESG #5 (Part 1). Shelter Advocacy $75,000 No COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY tinyurl.com/SLCFY25 TO:Council Members FROM: Austin Kimmel, Sylvia Richards, and Allison Rowland Budget and Policy Analysts DATE: March 18, 2025 RE: Budget Amendment Number 4 of Fiscal Year (FY) 2025 Budget Amendment Number Four includes 1 proposed amendment, a grant for $3,998,800 in revenues and expenditures. The Administration is requesting approval from the Council because the size of the grant award exceeds the amount available through the Holding Account. As mentioned below the fund balance chart, with the adoption of Budget Amendment #4, the available fund balance will increase to 21.38 percent of the FY 2025 Adopted Budget. If the item is adopted as proposed, then Fund Balance would be $40,257,199 above the 13% minimum target. Fund Balance While the increased General Fund Balance is positive for the City’s fiscal position, it’s important to note that the annual budget has used an escalating amount of one-time General Fund Balance revenues to fill the annual budget structural deficit. The chart to the side was provided by the Finance Department to show how much General Fund Balance was used in the past seven fiscal years. Note the City’s current fiscal year is FY2025 so the FY2026 column is only for discussion purposes to show the impact of the trend continuing. The Council may wish to discuss with the Administration policy goals for the use of General Fund Balance in the next annual budget such as whether reducing the reliance on one-time funding to fill the structural deficit. Tracking New Ongoing General Fund Costs for the Next Annual Budget The table of potential new ongoing General Fund costs for the FY2026 annual budget is available as Attachment 1 at the end of this document. The total new ongoing costs from Budget Amendments 1 through 4 would be $6,381,054. Note that of the total cost, $4.1 million would be needed if the Homeless Shelter Cities State Mitigation grant is not available for FY2026. Project Timeline: Consent: March 4, 2025 1st Briefing: March 18, 2025 2nd Briefing (if needed) & Public Hearing: March 25, 2025 2025 Potential Adoption Vote: April 1, 2025 UPDATED Fund Balance Chart The table below presents updated Fund Balance numbers and percentages based on the proposed changes included in Budget Amendment #4. As mentioned earlier, with the complete adoption of Budget Amendment #4, the available fund balance will increase to 21.38 percent of the FY 2025 Adopted Budget. If all the items are adopted as proposed, then Fund Balance would be $40,257,199 above the 13% minimum target. The proposal includes one initiative for Council review. A summary spreadsheet outlining proposed budget changes is attached. The Administration requests this document be modified based on the decisions of the Council. PUBLIC PROCESS: Public Hearing Section E: Grants Requiring No Staff Resources E-1: Lead Hazard Reduction Grant Award – ($3,998,800 – Misc. Grant Fund) This item is to recognize a four-year grant award from Housing and Urban Development (HUD) in the amount of $3,998,800 for lead paint mitigation in homes within the Salt Lake City boundaries. The mitigation work will include exterior paint, windows, kitchen repairs and any other work requiring lead-based paint removal. As this grant is too large for the grant holding account, the Administration added it to a budget amendment. The original grant application submission memo from the Administration indicated that a new Housing Program Manager FTE would be added as part of the grant; however, the Administration has since determined that a new FTE will not be needed. The grant pays a portion of two existing FTE’s; one Rehabilitation Specialist II and one Rehabilitation Specialist I. The public hearing was held on October 1, 2024. Approximately 300 homes will benefit from this work from the Housing Stability division during the four-year grant period in conjunction with Housing Stability’s existing Home Rehabilitation and Repair program, funded through the CDBG (Community Development Block Grant) program. Originally, the city estimated that 120 homes would be rehabilitated; however, HUD indicates the city’s cost estimate per home was too high. HUD estimates that 300 homes can be abated. There is a required grant match of $443,353 which will be funded by existing budget for the Home Rehabilitation and Repair program, including staff costs and staff time spent on the projects. Applicants may apply through the Home Rehabilitation and Repair program. Additional budget detail: CATEGORY GRANT AMOUNT MATCH AMOUNT Salary $ 410,648.80 $ 78,150.00 Benefits $ 132,434.61 $ 25,203.00 Travel $ 21,094.96 Supplies and materials $ 22,200.00 Contracts $3,260,000.00 $340,000.00 Other direct costs $ 152,421.84 Total 3,998,800.21 $443,353.00 ATTACHMENTS 1. Ongoing Costs to the General Fund (See chart below) 2. Grant Application Submission Notification Memo 3. Lead Hazard Reduction Grant Abstract ACRONYMS CAFR – Comprehensive Annual Financial Report CIP – Capital Improvement Program CDBG – Community Development Block Grant Program FOF – Funding Our Future FTE – Full time Employee / Equivalent FY – Fiscal Year GF – General Fund HUD – Housing and Urban Development IMS – Information Management Services ATTACHMENT 1 Council Request: Tracking New Ongoing Costs to the General Fund Council staff has provided the following list of potential new ongoing costs to the General Fund. Many of these are new FTE’s approved during this fiscal year’s budget amendments, noting that each new FTE increases the City’s annual budget costs if positions are added to the staffing document. Note that some items in the table below are partially or fully funded by grants. If a grant continues to be awarded to the City in future years, then there may not be a cost to the General Fund but grant funding is not guaranteed year-over-year. Budget Amendment Item Potential Cost to FY2026 Annual Budget Full Time Employee (FTEs)Notes #1 Item A-1 Attorney’s Office Organizational Structure Change $722,888 3 FTEs: 1 City Prosecutor 1 Senior City Attorney 1 Deputy Director of Administration City Prosecutor $178,278 for 9 months/$237,704 annually Senior City Attorney Class 39 - $157,635.74 for 8 months/$236,454 annually Deputy Director of Administration Class 40 - $186,547 for 9 months or $248,730 annually. At the time of publishing this staff report, the cost to lease office space is unknown. The cost could be more or less than the current budget under the soon-to-be terminated interlocal agreement with the District Attorney’s Office. #1 Item D-8 $171,910 1 FTE: Capital Asset Planning Financial Analyst IV position Inadvertently left out of the Mayor’s Recommended FY2025 Budget. Position would be dedicated to impact fees compliance tracking and reporting for new state requirements. Impact fees fully reimburse the General Fund for the position’s cost. $2,945,957 grant funding* 4 FTEs: 3 Officer positions 1 Sergeant position *Amount of grant funding needed in order to fully cover the ongoing costs including the new FTEs. #1 Item E-1 Homeless Shelter Cities Mitigation Grant FY25 Costs currently paid for by the Homeless Shelter Cities Mitigation Grant in FY2024 that might be shifting to the General Fund in FY2025 $662,760 For ongoing costs related to 15 existing FTEs; the grant funds a total of 23 FTEs $662,760 is needed for ongoing equipment for all 15 officers. The Administration is checking whether existing budgets could absorb some of these costs. #2 Item A-2 Enhanced Security at Justice Court $200,000 A security report identified an issue needing to be addressed immediately. Budget Amendment Item Potential Cost to FY2026 Annual Budget Full Time Employee (FTEs)Notes #2 Item A-3 Community Oriented Policing Svcs or COPS Hiring Grant from U.S. Dept. of Justice for 2 new Sergeants & 10 new Officers FY 24-25 $1,285,642 in FY2026 For ongoing costs related to hiring 2 new Sergeant FTEs and 10 new Officers in the Police Dept. Ongoing costs include grant salary match plus vehicles, supplies & equipment. After the 48 month grant period ends, the estimated annual cost to retain the 12 police officers is $2,071,325. #2 Item A-4 Vehicles, Equip- ment & Related Police Officer costs not covered by the Homeless Shelter Cities State Mitigation Grant FY24-25 $498,692 is ongoing For ongoing costs related to the hiring of new officers Ongoing costs include ongoing salary increases, supplies, body cameras, vehicles, and computers. #1 & #2 D-7 Prosecutor’s Office Changes since Budget Amendment #1 (-$280,279) back to General Fund Balance 1 FTE Removed City Prosecutor FTE removed Reverses a portion of budgetary impacts & actions outlined in BAM#1, Item A-1. #3 A-2 IMS – Add 1 full-time Cybersecurity Engineer and convert 1 part-time Graphic Designer into full-time using funds from the elimination of additional part-time positions. $173,484 ongoing for Cybersecurity Engineer position Adds 1 Cybersecurity Engineer Position .50 Graphic Design position was requested but NOT approved by the Council. TOTAL $6,381,054 39 total FTEs of which 16 are New FTEs Note that of the total cost, $4.1 million would be needed if the Homeless Shelter Cities State Mitigation grant is not available for FY2026 SALT LAKE CITY CORPORATION SWORN STATEMENT SUPPORTING CLOSURE OF MEETING I, Chris Wharton, acted as the presiding member of the Salt Lake Council, which met on March 18, 2025 in a hybrid meeting pursuant to Salt Lake City Proclamation. Appropriate notice was given of the Council's meeting as required by §52-4-202. A quorum of the Council was present at the meeting and voted by at least a two-thirds vote, as detailed in the minutes of the open meeting, to close a portion of the meeting to discuss the following: §52-4-205(l)(a) discussion of the character, professional competence, or physical or mental health of an individual; §52 -4-205(1)(b) strategy sessions to discuss collective bargaining; §52-4-205(l)(c) strategy sessions to discuss pending or reasonably imminent litigation; §52-4-205(l)(d) strategy sessions to discuss the purchase, exchange, or lease of real property, including any form of a water right or water shares, if public discussion of the transaction would: (i) disclose the appraisal or estimated value of the property under consideration; or (ii) prevent the public body from completing the transaction on the best possible terms; §52-4-205(l)(e) strategy sessions to discuss the sale of real property, including any form of a water right or water shares if: (i) public discussion of the transaction would: (A) disclose the appraisal or estimated value of the property under consideration; or (B) prevent the public body from completing the transaction on the best possible terms; (ii) if the public body previously gave public notice that the property would be offered for sale; and (iii) the terms of the sale are publicly disclosed before the public body approves the sale; §52-4-205(1)(f) discussion regarding deployment of security personnel, devices, or systems; and §52-4-205(1)(g) investigative proceedings regarding allegations of criminal misconduct. A Closed Meeting may also be held for Attorney-Client matters that are privileged pursuant to Utah Code §78B-1-137, and for other lawful purposes that satisfy the pertinent requirements of the Utah Open and Public Meetings Act. Other, described as follows: _____________________________________________________________ The content of the closed portion of the Council meeting was restricted to a discussion of the matter(s) for which the meeting was closed. With regard to the closed meeting, the following was publicly announced and recorded, and entered on the minutes of the open meeting at which the closed meeting was approved: (a) the reason or reasons for holding the closed meeting; (b) the location where the closed meeting will be held; and (c) the vote of each member of the public body either for or against the motion to hold the closed meeting. The recording and any minutes of the closed meeting will include: (a) the date, time, and place of the meeting; (b) the names of members Present and Absent; and (c) the names of all others present except where such disclosure would infringe on the confidentiality necessary to fulfill the original purpose of closing the meeting. Pursuant to §52-4-206(6), a sworn statement is required to close a meeting under §52-4-205(1)(a) or (f), but a record by electronic recording or detailed minutes is not required; and Pursuant to §52-4-206(1), a record by electronic recording and/or detailed written minutes is required for a meeting closed under §52-4-205(1)(b),(c),(d),(e),and (g): A record was not made. A record was made by: : Electronic recording Detailed written minutes I hereby swear or affirm under penalty of perjury that the above information is true and correct to the best of my knowledge. Presiding Member Date of Signature Chris Wharton (Apr 1, 2025 15:52 MDT)Apr 1, 2025 March 18, 2025 Closed Meeting Sworn Statement Final Audit Report 2025-04-01 Created:2025-03-31 By:DeeDee Robinson (deedee.robinson@slc.gov) Status:Signed Transaction ID:CBJCHBCAABAA-B3-Et_5kUbtDkij5CjE3e-TLmGdHFK6 "March 18, 2025 Closed Meeting Sworn Statement" History Document created by DeeDee Robinson (deedee.robinson@slc.gov) 2025-03-31 - 10:31:00 PM GMT Document emailed to Chris Wharton (chris.wharton@slc.gov) for signature 2025-03-31 - 10:32:03 PM GMT Email viewed by Chris Wharton (chris.wharton@slc.gov) 2025-04-01 - 5:24:16 AM GMT Document e-signed by Chris Wharton (chris.wharton@slc.gov) Signature Date: 2025-04-01 - 9:52:41 PM GMT - Time Source: server Agreement completed. 2025-04-01 - 9:52:41 PM GMT