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4/7/2021 - Meeting Minutes MINUTES FROM THE HOUSING TRUST FUND BOARD MEETING Wednesday, April 7, 2021 at 12:00 p.m. WebEx Meeting: 187 963 9307 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 Shelley Bodily Jose Organista Staff Present Tony Milner,HAND Amanda Best, HAND Heather Royall,HAND Erin Cunningham,RDA Lauren Parisi, RDA Tammy Hunsaker, RDA Kimberly Chytraus, Senior City Attorney Josh Runhaar, Colony B Jake Williams, Colony B 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 February 3'Meetin2 Minutes Mr. Makowski had a question about a sentence in the Garden Lofts discussion,the word was changed from"idea"to"expectation". There was no other discussion and Mr. Cherecwich moved to approve the minutes,Mr. Makowski seconded. Motion passed with Mr. Organista and Ms. Bodily abstaining, as they were not present at the February 3'meeting. 3. Introduction of New HTFAB Members Ms. Bodily introduced herself to the group,representing District 4, explained her background and interest in the HTFAB. Mr. Organista introduced himself to the group,representing District 1, explained his background and interest in the HTFAB. The other board members then introduced themselves to the new members. 4. Discuss Neighborhood Nonprofit Housing Corporation Loan Request Ms. Parisi, RDA, opened the discussion with a presentation on the proposed development and loan request.Neighborhood Nonprofit Housing Corporation/Defy Co.Labs is requesting a$1,340,000 loan for the construction of affordable multi-family housing located at 228 West 1300 South,referred to as Colony B. The loan term would be 16 years,with a 40 year amortization and 1.2% interest rate. After the presentation HTFAB members asked questions to the RDA staff as well as the developers,Mr. Williams and Mr. Runhaar. Mr. Makowski asked about the youth transitioning from foster care set-aside units and Mr. Williams stated that they are working with Volunteers of America(VOA)to place individuals in those units. Mr. Cherecwich asked what the difference is between the eleven units for the youth transitioning from foster care and the other units. Mr.Williams stated that nothing is different. Mr. Cherecwich then asked why they chose the number eleven. Mr. Williams stated that it has to do with the tax credits the development has. Mr. Cherecwich also asked about the common areas and the manager on site. Mr. Williams stated that the common areas have a kitchen due to the size of the units,if many people come over to visit it is a more comfortable place to gather and make food. There will also be a manager office with staff on site during regular business hours and there will be an emergency number for after hours. Mr. Makowski asked how much parking fees currently are and Mr. Williams said it is set at$25 per month. Mr. Cherecwich asked about the payoff at 16 years with the balloon payment and if the developer/owner will be able to pay at that time. Mr.Williams stated the 16 year payoff relates to a refinance and Mr. Runhaar stated it is a requirement of the tax credit and a refinance is required at year 16.Neighborhood Nonprofit has done around six projects like this and does not see any issues with the payment at year 16. Mr. Cherecwich also stated that this looks like a terrific program. Mr. Cuthbertson asked about the location of the project and if it was near the C.W.Urban project,Lucy. Mr. Williams stated that it was next to the Lucy. Mr. Cuthbertson asked about the additional rate drop and what else was being looked at to try to negate the higher cost issues. Mr. Williams said Kier construction did a great job looking at their numbers to take into consideration the higher costs. Mr. Runhaar said that lumber on this project has gone up half a million dollars and they are hopeful that it will go back down but at the moment construction costs are very high. Mr. Cuthbertson also stated that this is a stronger project and addresses affordability. Ms. Bodily stated that as a ballpark resident she is glad to see this project come into the neighborhood. She also expressed that open and green space would be a great thing to include as amenities in the future. Ms. Bodily also expressed the need for open space and outdoor space in relation to micro-units. Mr. Williams stated that the development took that into consideration with their amenities spaces and have an 18 foot glass wall that is openable that will create an indoor/outdoor space as well as a front porch area for the units on the ground floor and they will continue to keep that in mind with future projects. Ms. Rowland asked staff to include the potential rents rather than the AMI percentages and RDA staff agreed to do that in the future.Ms. Rowland also asked about the units that are on the ground floor with the walls, are there any deterrents for individuals who are not residents to prevent sitting on those walls. Mr. Williams said that there will be landscape buffering and fencing on the wall that deters sitting on the wall. Ms. Rowland also stated that it is rare that the 16-year mark allows for full refinance and the developer tends to look for additional financing for repairs and updates. She cautioned against the 16- year loan and to look at something that is more towards a 40-year loan,especially with the potential wear and tear of this project after fifteen years. Mr. Biljanic had a question about the pricing of the land and relationship to the property to the North(The Lucy).Mr. Williams said that the $3.7 million is the appraisal of the land and there is an egress and recorded easement for the parking stalls for Colony B. The purchase was clarified that a middle partner purchased the property from CW Urban,Neighborhood Nonprofit then purchased from the middle partner. Mr. Biljanic also stated that the project is a good mix with the AMI percentages.Mr.Williams also stated that this project has more revenue than a typical affordable project and appreciates the word of caution from Ms. Rowland. Mr. Cherecwich motioned to recommend approval of the loan to Neighborhood Nonprofit Housing Corporation for Colony B with the terms as presented,Mr. Cuthbertson seconded. All members voted yes, and the loan was recommended for approval. 5. Other Business There was no other business from staff. The meeting was adjourned at 12:50pm. HTF Board Chair This document along with the digital recording constitute the official minutes of the HTFA Board meeting held April 7,2021.