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2/3/2021 - Meeting Minutes MINUTES FROM THE HOUSING TRUST FUND BOARD MEETING Wednesday, February 3, 2021 at 12:00 p.m. WebEx Meeting: 146 019 7401 Salt Lake City, Utah Board Members Board Members Not Present Matt Pauly(Chair) Robert Rendon Paul Cherecwich Edward Makowski Amy Rowland Marty Biljanic Scott Cuthbertson Staff Present Tony Milner,HAND Amanda Best, HAND Heather Royall,HAND Tyler Durfee,HAND Kerry Thomas,HAND Erin Cunningham,RDA Kimberly Chytraus, Senior City Attorney Sam Evans,Wasatch Residential Group Members of Public Present 1. Welcome Matthew Pauly,board Chair,welcomed the board. Remote Meeting Statement read by Mr. Pauly: I,Matthew Pauly,Housing Trust Fund Advisory Board Chair,hereby determine that conducting the Housing Trust Fund Advisory Board meeting at the anchor location presents a substantial risk to the health and safety of those who may be present at the anchor location. The World Health Organization, the Governor of Utah,the Salt Lake County Health Department, Salt Lake County Mayor, and the Mayor of Salt Lake City have all recognized a global pandemic exists related to the new strain of the coronavirus, SARS-CoV-2. Due to the state of emergency caused by the global pandemic, I find that conducting a meeting at an anchor location under the current state of public health emergency constitutes a substantial risk to the health and safety of those who may be present at the location. 2. Approval of January 6th Meeting Minutes There was no discussion and Ms. Rowland moved to approve the minutes,Mr. Makowski seconded. Motion passed unanimously 3. Discuss Garden Lofts Subordination Amendment Sam Evans from Wasatch Residential Group was present at the meeting for questions. Mr. Cherecwich clarified that the request is for a shortfall in the developer fee,Mr. Evans confirmed that is correct. Mr. Cherecwich asked if this is a normal experience for developers,to have an overrun of costs. Mr. Evans said that the construction market and the rising costs in the market can lead to this. The original funding creates the expectation of the developer fee and costs but the market can increase more than expected. Mr. Cherecwich asked if the loan is not received will the developer fee be at risk to pay the overrun costs, Mr. Evans said that would be correct. Mr. Cherecwich stated that if Citibank has approved this loan there is no issue with him on subordinating to the Citibank additional loan. Ms. Best also clarified that Olene Walker funding for this development passed the updated subordination on February 28'. Mr. Biljanic asked why Citibank can't loan the money without repositioning our loan. Mr. Evans said that it is the way Citibank is securing the debt and requiring it to be structured. Mr. Makowski asked why the HTF loan position would have to change. Ms. Chytraus clarified that a new deed of trust will be in place which will bump the HTF loan to third position. There was clarification on the order of the loans, as it was incorrect in the packet,the order of the loans will not change just an additional loan will be put in second position pushing the City HTF loan to third position and the Olene Walker loan below the HTF loan in fourth position. Ms. Rowland mention the original model had a lower debt coverage ratio and the updated model has a higher debt coverage ratio and asked if the rent up is better or if vacancy is lower. Mr. Evans stated that there is very low vacancy and the rent has increased since 2017. Mr. Biljanic asked what a PAB bond is. Mr. Evans responded saying that it is a tax exempt bond, a private activity bond. Ms. Rowland also stated that kind of bond debt requires soft debt,which is why the HTF loan is a cash flow loan. Mr. Cherecwich motioned that the HTFAB accept the proposal to subordinate the debt in accordance with the documentation. Ms. Rowland seconds the motion. The board passed the motion unanimously,with Mr. Cuthbertson recusing himself due to a personal relationship. 4. Other Business Mr. Milner mentioned the new Treasury dollars and CV funding moving forward. HOPWA-CV is scheduled to be approved by the City Council on February 16'. Salt Lake City has also received Treasury dollars for COVID relief and the city is currently in discussion with the State of Utah to coordinate the funds.As a review body for similar funding,the Treasury funds will not be going through the HTFAB for review.Ms. Rowland asked how a person may access these funds. Mr. Milner said there may be a centralized portal through the state to prevent duplication. Mr. Cherecwich asked what may be on the agenda for next month. Ms. Best said that there was nothing planned at this point and will be updated through email, she also introduced Erin Cunningham,representing the RDA and transitioning to oversee the Housing Development Trust Fund portfolio. Ms. Best also updated the HTFAB that Centro Civico Apartments is now open and currently leasing up. Mr. Milner also introduced the HAND staff on the call. Ms. Cunningham introduced herself. The meeting was adjourned at 12:26pm. HTF B and Chair This document along with the digital recording constitute the official minutes of the HTF Board meeting held February 3,2021.