5/3/2023 - Meeting Materials REGULAR MEETING OF THE
REDEVELOPMENT ADVISORY COMMITTEE
Wednesday, May 3, 2023
4:00 p.m.
451 S State Street Room 126 Salt Lake City, Utah 84111
To access and participate remotely, please visit
https:Hsaltlakecity.webex.com/saltlakecity/J*.php?MTID=mdOb675914890e452242fa27c02f4c7c8
Meeting Password: mHruA8Tsp24
AGENDA
1. Roll Call
2. Announcements by the Staff
A. Staff Updates
3. Approval of the minutes
A. Review and Approval of the February 1, 2023 Minutes
Members will review the February 1, 2023 meeting minutes and consider for approval.
4. Business
A. FY 2023-24 Housing Development Funding Strategy—TracyTran, Senior Project Manager and
Lauren Parisi, Senior Project Manager
RAC will receive a briefing on the FY2023-24 Housing Development Funding Strategy. Members
may provide comments and feedback to RDA staff.
5. Adjournment
People with disabilities may make requests for reasonable accommodation no later than 48 hours in advance
to attend this Redevelopment Advisory Committee. Accommodation may include alternate formats,
interpreters, and other auxiliary aids. This is an accessible facility. For questions, requests, or additional
information, please contact the RDA at 801-535-7240.
MINUTES OF THE
REDEVELOPMENT ADVISORY COMMITTEE
February 1, 2023
The following Members were present:
Brian Doughty, Mojdeh Sakaki,Amy Rowland, Baxter Reecer, Rosa Bandeirinha, Nic Peterson
The following Members were absent:
Mark Isaac
Present Agency Staff:
Danny Walz-Director, Tracy Tran-Senior Project Manager, Kate Werrett-Project Manager,Austin Taylor-Project Manager,
Lauren Parisi—Senior Project Manager, Makena Hawley-Project Manager, Marcus Lee-Project Coordinator, Lucas
Goodrich -Project Coordinator, Kathryn Hackman -Communications Coordinator, Robyn Stine-Office Manager
Present City Staff:
Allison Parks-Senior City Attorney
1. Announcements by the Staff
Danny Walz provided an update on the status of the Agency HTRZ application. Mr. Walz also expressed the Agency's
gratitude to Mr. Doughty for serving for two years as Chair.
2. Approval of the Minutes
Members will review the September 7, 2022 and December 7, 2022 Redevelopment Advisory Committee meeting minutes
and consider for approval.
Mojdeh Sakaki made a motion to approve the minutes from the September 7, 2022, and December 7, 2022, Minutes
meetings.Amy Rowland seconded the motion. Upon roll call, the motion passed unanimously.
3. Election of Chairperson and Vice-Chairperson
Members will nominate and elect a member to be Chair and nominate and elect a member to be Vice-Chair of the
Redevelopment Advisory Committee for 2023.
Mojdeh Sakaki was nominated for Chairperson by Mr. Doughty and seconded by Ms. Rowland. Baxter Reecer nominated
himself for Vice Chairperson and seconded by Ms. Rowland. Upon roll call, the motions passed unanimously.
4. State Street Project Area Update
Lauren Parisi and Makena Hawley provided an update on the State Street Project Area:
• Ms. Parisi explained the terms of the interlocal agreement approved by the Salt Lake County council in December
2022 and adopted by the RDA Board of Directors (Board) in January 2023 include:
o Base Taxable Year: 2021
o Base Taxable Value: $1,420,601,199
o Collection Period: 20 years
o Participation Rate: 75%
o Contribution Cap: $8,194,813
o Allowable Uses of County Increment:
■ State Street Housing
■ Citywide Housing (17C Mandate)
■ Environmental Remediation
■ RDA Administration
o The ILA specifies that County increment may not be used in a revolving loan fund or any other type of
loan products.
o The County requested 2% of their contribution be returned to them on an annual basis to cover
administrative costs associated with the CRA.
• Ms. Hawley explained the budget amendment changes which included the following:
o Reduced Project Area term from 25 years to 20 years
o Fewer participating taxing entities
o Updated tax increment revenue projections (see presentation—attached)
5. Notice of Funding Availability for Housing Development Loan Program Update
Tracy Tran, Kate Werrett and Austin Taylor provided an update on the NOFA for the Housing Development Loan
Program.
• Mr. Taylor provided an overview of the 2022 NOFA application process
o Received 11 applications
o One application was withdrawn
o Total funding requested was$16,760,000
• Threshold requirements include
o Sustainable development designed to achieve a"Designed to Earn the Energy Star"score of 90 or
higher,contain no onsite fossil fuel combustion, and participate in the City's Elevate Buildings program
once the building is operating.
And one of the following:
o Family-Sized Units: at least 10%of the total residential units shall have 3+ bedrooms and shall be rent
restricted to those earning 60%AMI; OR
o Deeply Affordable Units: at least 10%of the total residential units shall be restricted as affordable to
households earning 40%AMI.
• Mr. Taylor described the RDA Board's housing priorities:
o Family Housing
o Target Populations
o Homeownership
o Missing Middle&Unique Housing Types
o Sustainability
o Transportation Opportunities
o Neighborhood Safety
o Expand Opportunity
o Architecture&Urban Design
o Commercial Vitality
o Historic Preservation/Adaptive Reuse
o Public Art
• Ms. Tran detailed the application review process,the considerations and the applications recommended for
funding by Staff.
Application Considerations:
o Funding Priorities
o Project Readiness
o Content&Quality of Application
o Qualifications&Experience of Development Team
o Content, Effectiveness& Financial Details Appropriateness
o Building &Site Design
Applications Recommended for Funding:
o Meet threshold requirements
o Have secured financing &tax credits
o Readiness to build
o Project priorities met
• The RDA Finance Committee and Board approval tables were shared (see attached).
6. Adjournment
There being no further business the meeting was adjourned.
Mojdeh Sakaki, Chairperson
This document along with the digital recording constitute the official minutes of the Redevelopment Advisory Committee held
February 1, 2023.
PMEpl
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State Street CRA Update
Redevelopment Advisory Committee
February 1, 2023
STATE STREET PROJECT AREA KH
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State Street CRA — County ILA Terms
Requested Participation Terms 2020 Final Participation Terms within ILA 2022
Base Taxable Year 2016 2021
Base Taxable Value $889,305,536 $1,420,601,199
Collection Period 20 Years 20 Years
Participation Rate 75% 75%
Contribution Cap $18,224,000 $8,194,813
Allowable Uses of County • Project Area Development • State Street Housing
Increment 0Citywide Housing 0 Citywide Housing (17C Mandate)
• RDA Administration • Environmental Remediation
• RDA Administration
• Loan Restriction — ILA specifies that the RDA may not use County increment in a
revolving loan fund or for any other type of loan products.
• County Administrative Fee — The County has requested that 2% of their contribution
be returned to them on an annual basis (up to a maximum of $156,092) to cover
their administrative costs associated with the CRA.
Budget
PROJECTED AMOUNT OF TIF
TABLE 2.1: INCREMENTAL PROPERTY TAX REVENUES
• Reduced Project Area Term — GENERATED
25 years to 20 years Current Budget —25 Years
Incremental Tax Revenues - ii%
• Fewer Participating Taxing
Salt Lake County $12,6559703
Entities — The Salt Lake Library, Salt Lake City School District $3299879028
Salt Lake Metropolitan Water
District, Salt Lake Mosquito Salt Lake City $24,323,930
Salt Lake Library $3,763,083
Abatement District and the
Central Utah Water Salt Lake Metropolitan Water District $1,862,860
Conservancy District are no Salt Lake City Mosquito Abatement District $9129748
longer participating Central Utah Water Conservancy District $291359083
• Updated Tax Increment TOTAL $78,64%435
Revenue Projections —
Reflecting denser, transit- Budget as Amended — 20 Years
oriented development patterns Incremental � Revenues � �
and specific terms requested by Salt Lake County $24,298,120
Salt Lake County. Salt Lake City School District $67,790,876
Salt Lake City $489747,083
TOTAL $1401,8369079
Budget
PERCENTAGE OF TIF ALTTHORIZED TO REC'EIN'E
TABLE 2.3: PARTIC'IPATION FROM TAXING ENTITIES
Current Budget —
TaxingEntity PercentageLength
Salt Lake County 75% 25 Years
Salt Lake City School District 75% 25 Years
Salt Lake City 75% 25 Years
Salt Lake Library 75% 25 Years
Salt Lake Metropolitan Water District 75% 25 Years
Salt Lake City Mosquito Abatement District 75% 25 Years
Central Utah Water Conservancy District 75% 25 Years
Budget as Amended Taxing Entity PercentageLength
Salt Lake County* 100% 20 Years
Salt Lake City School District 75% 20Years
Salt Lake City 75% 20Years
*Note: The RDA will collect 100%of Salt Lake County tax increment and pay Salt Lake County a mitigation payment of
25% and an administrative fee of 2%up to a maximum of$156,092. Accordingly, the percentage retained by the RDA
will be approximately 73%up to the contribution cap of$8,194,813 or the $8,350,905 including the County
Administrative fee as specified in the interlocal agreement.
Budget Changes
'I XINIUM CUMULATIVE DOLLAR AMOTINT
TABLE 2.4: TAX INCREMENT REVENUES TO RD A
Current Budget —
Incremental Tax Revenues i RDA
i
Salt Lake County $99491977
Salt Lake City School District $2497409271
Salt Lake City $189242994
Salt Lake Library $2,822931
Salt Lake Metropolitan Water District $15397,14
Salt Lake Mosquito Abatement District $6849561
Salt Lake Utah Water Conservancy District $1,601,31
TOTAL $581980,32
Budget as Amended—
Incremental Tax Revenues to RDA Total-20 Years
Salt Lake County* $89194,81
Salt Lake City School District $509843,15
Salt Lake City $36,560931
TOTAL $959598,28
*Based upon the mumni m contribution cap as specified in the County interlocal agreement.
State Street CRA — Tentative Schedule
January 2023
1. Transmitted for the Board's consideration —
• RDA resolution approving the interlocal agreement between the Salt Lake County and the RDA for
the State Street CRA
February 2023
1. Briefing Regarding State Street CRA Budget Amendment
2. Board may set date for public hearing to amend State Street CRA Budget
March 2023
1. Board to hold public hearing for the State Street CRA budget amendment
2. Transmitted for the Board's consideration —
• RDA resolution amending the State Street CRA budget
EXHIBIT A: RDA FINANCE COMMITTEE RECOMMENDED HDLP FUNDING
ALLOCATIONS
The RDA Finance Committee recommends that funding be allocated to projects in order of priority ranking.
FUNDING RECOMMENDATIONS
PROJECT PRIORITIESIINTEREST POSSIBLE
RATE REDUCTION AND FUNDING HDLP COMMITTED ADDITIONAL HDLP TOTAL FUNDING FUNDING
PROJECTIAPPLICANT ADDRESS WEIGHTED NOFA RANKING" REQUEST PRELIMINARY TERMS* FUNDS:$6M FUNDS:$2.36M RECOMMENDATION RANKING
2-Victory Heights I Family Housing: 3
BCG Holdings Target Populations: 3
Transportation Opportunities: 1 1%interest rate,40-year
1060 E 100 S Architecture&Urban Design: 1 $1,865,000 term,40-year amortization, $1,865,000 $1,865,000 1
Adaptive Reuse: 1 hard repayments
Public Art: 1
TOTAL: 10
Family Housing: 3
Target Populations: 3
BCG Holdings Transportation Opportunities: 1 1%interest rate,40-year
1060 E 100 S Architecture&Urban Design: 1 $280,000 term,40-year amortization, $280,000 $280,000 2
Adaptive Reuse: 1 hard repayments
Public Art: 1
TOTAL: 10
4-Atkinson StacksJ Target Populations: 3
HAME Unique Housing Types: 3 1%interest rate,40-year
543 S 500 W Architecture&Urban Design: 1 $2,500,000 term,40-year amortization, $500000 $500,000 8
Sustainability: 1 hard repayments
TOTAL: 8
Family Housing: 3
HA 1159 S West Target Populations: 3 1%interest rate,40-year
Temple Transportation Opportunities: 1 $540,000 term,40-year amortization, $540000 $540,000 7
Neighborhood Safety: 1 hard repayments
TOTAL: 8
Family Housing: 3
r. Target Populations: 3
Transportation Opportunities: 1 1%interest rate,40-year
509 W 300 N Architecture&Urban Design: 1 $1,850,000 term,40-year amortization, $1,850000 $1,850,000 3
Commercial Vitality: 1 hard repayments
Public Art. 1
TOTAL: 10
Family Housing: 3
r, Target Populations: 3
Transportation Opportunities: 1 1%interest rate,40-year
509 W 300 N Architecture&Urban Design: 1 $1,200,000 term,40-year amortization, $1,200,000 $1,200,000 4
Commercial Vitality: 1 hard repayments
Public Art. 1
TOTAL: 10
Unique Housing Type: 3 2.5%interest rate,40-year
1025 N 900 W Commercial Vitality: 1 $1,700,000 term,40-year amortization, $0 9110
Adaptive Reuse. 1
TOTAL: 5 cash Bow repayment
Target Populations: 3
Unique Housing Type: 3 2%interest rate,40-year
1659 W North Transportation Opportunities: 1
Temple Commercial Vitality: 1 $1,825,000 term,40-year amortization, $805,000 $195,000 $1,000,000 5
Adaptive Reuse. 1 cash flow repayment
TOTAL: 8
Family Housing: 3
Target Populations: 3
Missing Middle: 3 2%interest rate,40-year
265 W 1300 S Transportation Opportunities: 1 Neighborhood Safety: 1 $3,000,000 term,40-year amortization, $1,125,000 $1,125,000 6
Architecture&Urban Design: 1 cash flow repayment
Commercial Vitality: 1
TOTAL: 13
Transportation Opportunities: 1
Neighborhood Safety: 1 2%interest rate,16-year
910 W North Architecture&Urban Design: 1 $2,000,000 term,30-year amortization, $0 9110
Temple Commercial Vitality: 1
Public Art: 1 cash flow repayment
TOTAL: 5
TOTAL $16,760,000 $6,000,000 $2,360,000 $8,360,000
'Final Terms shall comply with the requirements,standard loan terms and conditions,interest-rate reductions,and all other details laid out within the 2022 Housing Development Loan Program(HDLP)Guidelines.Changes to
repayment type may occur(hard repayment versus cash flow repayment)and shall be based on requirements listed in the HDLP Guidelines or if required by a senior lender.Changes in repayment type will cause a change in
the base interest rate.Repayment priority and lien position shall be based on the size of the loans.
"Projects receive a 0.5%interest rate reduction for each included priority.Sustainability allows for a 1%or 2%reduction. The maximum reduction per development is 2%.The interest rate is calculated as follows:Base
Interest Rate minus(-)Interest Rate Reductions(up to 2%)=proposed interest rate;Base interest rate shall be locked within a month of closing.Projects shall maintain project priorities and the same weighted score at
closing. Deviation from project priorites met may require Board approval.
—Finance Committee Recommendation:If these projects do not receive 9%tax credits in the next Utah Housing Corporation allocation cycle,these funding commitments shall be returned to the RDA's Housing Development
Loan Program.
Funds Availability Funds Recommended by Finance Committee
HDLP Committed Funds $6,000,000 $ 600,000 Recommended Funding:HDLP Committed Funds
Possible Additional HDLP Funds $2,360,000 $0 Funds Remaining:HDLP Committed Funds
Total Potential HDLP Funds $8,360,000 $ 2,360,000 Recommended Funding:Possible Additional HDLP Funds
$0 Funds Remaining:Possible Additional HDLP Funds
$ 8,360,000 Recommended:Total Potential HDLP Funds
$0 Funds Remaining-Total Potential HDLP Funds
16
EXHIBIT B: HDLP RDA BOARD FUNDING ALLOCATIONS
PROJECT PRIORITIES/INTEREST
RATE REDUCTION AND FUNDING TOTAL FUNDING FUNDING
PROJECT/APPLICANT ADDRESS WEIGHTED NOFA RANKING** REQUEST PRELIMINARY TERMS* ALLOCATION RANKING
2-Victory Heights 1 Family Housing: 3
BCG Holdings Target Populations: 3
Transportation Opportunities: 1 1%interest rate,40-year
1060 E 100 S Architecture&Urban Design: 1 $1,865,000 term,40-year amortization, $1,865,000 1
Adaptive Reuse: 1 hard repayments
Public Art: 1
TOTAL: 10
Family Housing: 3
Target Populations: 3
BCG Holdings Transportation Opportunities: 1 1%interest rate,40-year
1060 E 100 S Architecture&Urban Design: 1 $280,000 term,40-year amortization, $280,000 2
Adaptive Reuse: 1 hard repayments
1 4 Public Art: 1
TOTAL: 10
4-Atkinson Stacks— Target Populations: 3
HAME Unique Housing Types: 3 1%interest rate,40-year
543 S 500 W Architecture&Urban Design: 1 $2,500,000 term,40-year amortization, $500,000 8
Sustainability: 1 hard repayments
TOTAL: 8
5-Book Cliffs Lodge— Family Housing: 3
1159 S West Target Populations: 3 1%interest rate,40-year
HAME Temple Transportation Opportunities: 1 $540,000 term,40-year amortization, $540,000 7
Neighborhood Safetv: 1 hard repayments
TOTAL: 8
Family Housing: 3
DevelopmentGiv Target Populations: 3
Transportation Opportunities: 1 1%interest rate,40-year
509 W 300 N Architecture&Urban Design: 1 $1,850,000 term,40-year amortization, $1,850,000 3
Commercial Vitality: 1 hard repayments
Public Art: 1
r I TOTAL: 10
Family Housing: 3
Giv Development Target Populations: 3
Transportation Opportunities: 1 1%interest rate,40-year
509 W 300 N Architecture&Urban Design: 1 $1,200,000 term,40-year amortization, $1,200,000 4
Commercial Vitality: 1 hard repayments
Public Art: 1
TOTAL: 10
r .
Unique Housing Type: 3 2.5%interest rate,40-year
1025 N 900 W Commercial Vitality: 1 $1 700,000 term,40-year amortization, $0 9/10
Adaptive Reuse: 1
TOTAL: 5 cash flow repayment
Target Populations: 3
Unique Housing Type: 3 2%interest rate,40-year
1659 W North Transportation Opportunities: 1
$1,825,000 term,40-year amortization, $1,000,000 5
Temple Commercial Vitality: 1
Adaptive Reuse: 1 cash flow repayment
TOTAL: 9
10-Liberty Comer— Family Housing: 3
Target Populations: 3
Cowboy Partners Missing Middle: 3 2%interest rate,40-year
265 W 1300 S Transportation Opportunities: 1 $3,000,000 term,40-year amortization, $1,125,000 6
Neighborhood Safety: 1
Architecture&Urban Design: 1 cash flow repayment
Commercial Vitality: 1
TOTAL: 13
Transportation Opportunities: 1
Neighborhood Safety: 1 2%interest rate,16-year
910 W North Architecture&Urban Design: 1
Temple Commercial Vitality: 1 $2,000,000 term,30-year amortization, $0 9110
Public Art: 1 cash flow repayment
TOTAL: 5
TOTAL $16,760,000 $8,360,000
*Final Terms shall comply with the requirements,standard loan terms and conditions,interest-rate reductions,and all other details laid out within the 2022 Housing Development Loan
Program(HDLP)Guidelines.Changes to repayment type may occur(hard repayment versus cash flow repayment)and shall be based on requirements listed in the HDLP Guidelines or
if required by a senior lender.Changes in repayment type will cause a change in the base interest rate.Repayment priority and lien position shall be based on the size of the loans.
**Projects receive a 0.5%interest rate reduction for each included priority.Sustainability allows for a 1%or 2%reduction. The maximum reduction per development is 2%.The interest
rate is calculated as follows:Base Interest Rate minus(-)Interest Rate Reductions(up to 2%)=proposed interest rate,Base interest rate shall be locked within a month of closing.
Projects shall maintain project priorities and the same weighted score at closing.Deviation from project priorites met may require Board approval.
***If these projects do not receive 9%tax credits in the next Utah Housing Corporation allocation cycle,these funding commitments shall be returned to the RDA's Housing
Development Loan Program.
Funds Availability
HDLP Committed Funds $6,000,000
Additional HDLP Funds Approved by Board $2,360,000
Total Potential HDLP Funds $8,360,000
57
IF
\1\11 It
1R
MAYOR ERIN MENDENHALL
Executive Director '""' _ DANNY WALZ
�� '" �� - Director
REDEVELOPMENT AGENCY of SALT LAKE CITY
DATE: May 3, 2023
TO: Redevelopment Advisory Committee (RAC)
PREPARED BY: Lauren Parisi & Tracy Tran, RDA Senior Project Managers
RE: FY 2023-24 Housing Development Funding Strategy
REQUESTED ACTION: Briefing on the FY 2023-24 Housing Development Funding Strategy
POLICY ITEM: Affordable Housing
BUDGET IMPACTS: N/A
EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City's ("RDA")Housing
Allocations Funds Policy("Funds Policy") establishes guidelines for allocating and directing resources for
the development and preservation of housing by funding source. Additionally, the RDA's Housing
Development Loan Program "HDLP") Policy creates a program that centralizes the application,
underwriting, and approval process across all funding sources,providing a one-stop-shop for community
partners to access gap financing for the development and preservation of affordable housing. Both policies
contemplate that annually,prior to the annual budget process,the RDA shall present to the Board a
Housing Development Funding Strategy("Funding Strategy")that includes:
• A projected amount of revenue to be allocated to each Housing Fund for the upcoming fiscal year
(approved as a part of RDA budget)
• Proposed housing funding priorities ("Funding Priorities") for the upcoming fiscal year (approved
as separate resolution)
• Proposed funding allocations for specific housing activities (i.e. gap financing loans,property
acquisition, etc.) for the upcoming fiscal year (approved as apart of RDA budget)
This memo reviews the Funding Priorities and housing activities adopted in Fiscal Year 2022-2023 ("FY
23") as well as the proposal for Fiscal Year 2023-2024 ("FY 24"). The projected revenue to be allocated to
each of the four Housing Funds (Primary Housing Fund, Secondary Housing Fund, Westside Community
Initiative Fund and Housing Development Fund) as well as allocations of funding to each housing activity
will be brought back to the Board as a part of the annual budget discussion.
The Redevelopment Advisory Committee ("RAC")may wish to discuss the proposed Funding Priorities
and housing activities as described in this memo and provide any feedback for the RDA Board of
Director's("Board") consideration.
SALT LAKE CITY CORPORATION
451 SOUTH STATE STREET,ROOM 118 WWW.SLC.GOV-WWW.SLCRDA.COM
P.O.BOX 145518,SALT LAKE CITY,UTAH 84114-5518 TEL 801-535-7240-FAX 801-535-7245
BACKGROUND:
FY 23 Annual Housing Funding Strategy Progress/Outcomes—Last year, the Board adopted four
housing funding priorities including family housing, deeply affordable housing,missing middle housing
and affordable homeownership to guide housing funding decisions for the rest of the fiscal year. Progress
has been made to further each of these priorities as follows:
DefinitionPriority Purpose and Activities Implementation Impact/Status
Family Housing Provide HDLP,property Threshold Funded
opportunities for acquisition/disposition, requirement for approximately
families to enjoy the shared equity HDLP*,higher 169 affordable
many benefits of weighted score in family sized
urban living by HDLP units
encouraging the
development of
housing that is more
conducive to larger
household sizes.
Family housing is
generally defined as
units with three or
more bedrooms.
Deeply Expand the HDLP Threshold Funded
Affordable availability of units requirement for approximately
for extremely low- HDLP*,higher 438 units at 40%
income households, weighted score in AMI and below.
thereby providing HDLP
housing options for
individuals or
families that are
homeless or at risk
of homelessness.
Deeply affordable
housing is generally
defined as housing
affordable to those
earning 40%of the
area median income
AMI or below.
Missing Middle Promote an array of ADU assistance ADU Financing RDA Staff is in
housing forms such Program; higher process of
as smaller apartment weighted score in drafting an RFQ
buildings, HDLP*] to determine
townhomes and partners and
accessory dwelling program ideas
units to diversify the for an ADU
2
City's housing stock financing
and provide more program within
affordable living the 9 Line
options for Project Area.
residents.
Homeownership Create opportunities Researched RDA staff has
for those who have opportunities for been researching
historically rented in wealth and compiling
the community to building/shared information
build wealth and equity. related to wealth
establish permanent Higher weighted building and
-A& roots through score in HDLP shared equity
affordable programs.
, homeownership.
*In addition to this requirement, all HDLP applicants must comply with the RDA's Sustainable Development Policy which
requires all new construction and rehab projects receiving$900,000 or more in funding must the following:
• Energy Star score of 90+
• 100%electric(no on-site fuel combustion)
• Participation in Salt Lake City s Energy Benchmarking Program
FY 23 Housing Snapshot
2 • :00
HOUSINGF rSALT LAKE CITY 6- �
LOW-INCOME HOUSEHOLDS
SNAPSHOT
FY 2022-2023 or
Lhim.- -.A COST-BURDENED HOUSEHOLDS
Source:SLC Affordable Housing Dashboard
U.S.Census Bureau's 2021 ACS 1-Year Estimates
(1,2,4); Census Bureau's 2015-2019 ACS 5-Year AFFORDABLE UNIT GAP
Estimates(3,5).
hftpsJtwww-slc.gov/housingstabi I ity/affordable-
housing-dashboard/ IN
3
Salt Lake City Deed-Restricted Affordable Housing Developments Map
Status v
• _ �.
Existing •;
• Proposed 186a
r
• 6�
Construction I I ti� • T.
• Other
h Te
Sauth Temple St
Total Affordable �� �' ••?N: ``, �r-�
soo's- �400 041a! LtikeWityo a r
O tee
>600 •_ _ ~ • •J,�.�•• � This Is the P
` i • 15 • •900 S Herltage_P
\•O
O450
!:iil rnia Ave - 1 1301 S 1 0
•
i
o <0 �`� 1C^Afk Cole
' Lake The Country
' - —�� •
3100
171 3300 5 .
3500 S Wes 1`3� 1 1 '
Valle
� �P 1 City 4, � 1 e � N
t , a-I Millcreek 3900 S
Source:SLCAffordable Housing Dashboard, https:llwww.slc.govl'housingstability/affordable-housing-dashboard/
FY 23 Housing Fund Balances
• Primary Housing Fund—$3,658,935
• Secondary Housing Fund—$541,455
• Westside Community Initiative Fund—$847,676
• Housing Development Loan Fund—$2,544,217 (includes $1.64Min principal/interest estimated to
be received)
Citywide Housing Plans and Goals
The RDA is guided by and charged with implementing citywide plans and goals. Additionally,the RDA is
guided by its own project area plans, Guiding Framework and Livability Benchmarks. Current housing
plans and goals that the RDA's annual Housing Development Funding Strategy should consider include:
Mayor Mendenhall's 2023 Goals
• Draft, transmit, and request City Council adoption of Housing SLC,which will include a suite of
policies and performance measures to improve the ability of residents to live affordably in the city.
• Draft, transmit, and request City Council adoption of Thriving in Place, and work toward
implementation of near-term actions with a focus on Housing Loss Mitigation.
4
• Explore more innovative solutions to housing insecurity and homelessness, including ADUs and
outdoor homeless resource centers, in coordination with the State Office of Homeless Services.
Housing SLC (Citywide 5-year housing plan)—While the plan is currently in draft format, key findings
from the engagement process include:
• Rental vacancy rates are low and home sale prices are unaffordable placing a strain on existing
rental housing and causing rents to rise dramatically.
• Housing prices suggest a shortage of housing supply overall, especially housing that is deeply
affordable (30%of the area median income and below).
• Salt Lake City is majority renter and more than half of all renters are cost burdened(spending more
than 30% of their income on housing).
• A survey of City residents concluded affordable housing and behavioral health services were
preferred as solutions for homelessness.
• A mismatch between the types of housing the market is producing and the needs of the community.
• Wages have not kept pace with cost of living, especially housing related costs.
Thriving in Place (anti-displacement framework)— While the framework is currently in draft format,
strategic priorities relevant to the RDA include:
• Protect tenants from displacement, especially the most vulnerable
o Help tenants become owners.
• Preserve the affordable housing we have
o Factor displacement impacts in development agreements
o Expand investment in acquisition+rehabilitation of existing affordable housing
• Produce more housing, especially affordable housing.
o Incentivize creation and preservation of affordable housing
o Create more housing choices
o Prioritize and invest in community ownership+housing integrated with support services
• Expand Funding for tenant support and affordable housing
o Coordinate+leverage affordable housing investments
o Expand and invest in community land trust models
• Partner + Collaborate for maximum impact
o Be bold, accountable,transparent; set aspirational goals and metrics; report on progress
o Continue community leadership,partnership, and engagement
RDA Livability Benchmarks (3 of 21 benchmarks)
• Ownership—Encourage the creation of opportunities for residents/business owners to building
wealth and/or establish permanent roots through affordable home/commercial ownership.
• Housing for Everyone—Promote housing for families, underserved populations and extremely
low income.
• Missing Middle& Unique Housing Types Projects are either a missing middle housing type (i.e.
townhomes, courtyard apartments, small scale apartments) or a housing type that is not
commonly built: tiny homes, modular homes,pre-fab homes, accessory dwelling units
("ADUs").
5
ANALYSIS:
FY 24 Proposed Funding Priorities—Reviewing city plans, current housing data and remarks from the
RDA Board, four housing Funding Priorities and associated activities have been proposed to guide FY 24.
To make the greatest impact, staff recommends limiting the adopted Funding Priorities to four or fewer.
To note, staff determined that FY 23's Funding Priorities are still very relevant in addressing the city's
current housing needs. Many of the programs and initiatives introduced last fiscal year to further each FY
23's Funding Priorities are currently underway or ongoing and more time is needed for implementation.
For these reasons,the proposed priorities are very similar to last year's proposal.
1. WEALTH BUILDING OPPORTUNITY—This priority supports different forms of wealth
building opportunity for low-moderate income households. Although homeownership is a path to
wealth building,it is not the only form that the RDA could potentially support to help individuals
and families meet this goal. Wealth building can be accomplished through different forms of shared
equity models such as rental subsidies where tenants earn a portion of a development's return.
Supporting ADUs also supports wealth building by supporting mortgage payments and increasing
income and property values. Therefore, it's proposed that this priority be updated from affordable
homeownership to wealth building opportunities to encompass innovative shared-equity models
outside of traditional homeownership.
2. AFFORDABLE FAMILY HOUSING—This priority promotes affordable, larger housing units
that can accommodate families and have at least three or more bedrooms. Housing data indicates
that there is a surplus of family-sized units or approximately 16,500 family-sized units with 3+
bedrooms than there are households with three or more individuals (SLC Housing Needs Analysis).
However,there is still a need for affordable family-sized units, especially as more families look
outside of Salt Lake City boundaries for affordable housing options and enrollment in Salt Lake
City schools decreases. It's proposed that the distinction of affordable family housing at 60%AMI
and below—as opposed to general family housing—is added as a priority this year.
Per the interlocal agreements with the School District for the State Street and 9 Line project areas,
the RDA must also prioritize affordable family and workforce housing described as:
• Affordable Family Housing: Development of new housing units that include 3+bedrooms
and are affordable to households at or below 80%of the area median income as defined by
the U.S. Department of Housing and Urban Development.
• Workforce Housing: Development of new housing units affordable to low and middle-
income workers, including teachers and school district employees.
3. DEEPLY AFFORDABLE HOUSING—This priority promotes housing units affordable for those
earning 40%AMI and below. While the city has made progress facilitating the development of
deeply affordable units,there is still a shortage of over 5,500 units for those earning 30%AMI or
less in particular and it's proposed to continue to promote this priority over FY 24 (SLC Housing
Needs Analysis).
6
4. MISSING MIDDLE HOUSING—This priority targets the construction of multi-family or
clustered housing types (fourplexes,townhomes, cottage apartments, ADUs, etc.) that are
compatible in scale with single-family or transitional neighborhoods. Missing middle housing is
intended to meet the demand for walkable neighborhoods, respond to changing demographics and
provide housing at different price points. Single-family homes make up approximately 50%of
housing units in Salt Lake City and mid to high rise apartments make up approximately 30%—
leaving a need for these missing housing types and price points across the city that add to the
housing supply as more discrete, infill development.
FY 24 Proposed Housing Activities—To encourage the incorporation of the four proposed Funding
Priorities in RDA-funded housing projects, RDA staff proposes allocating funding to the following
programs and tactics as part of the RDA's FY24 budget. Some of the housing activities may achieve
multiple Funding Priorities. See Figure 2 for summary.
HOUSING1 ' HOUSING
1.WEALTH BUILDING
OPPORTUNITY
With the primary goal of removing barriers to wealth building and
creating generational wealth,the RDA will release a notice of funding
availability(NOFA) to support external programs and/or developments
that build equity for lower-moderate income individuals and families.
This model could take on different forms such as a shared profit, shared
equity program, or mortgage assistance. There are various community
organizations with programs that support wealth building and
homeownership in need of financial assistance where the RDA could
leverage existing funding,which is why the RDA is proposing this
approach as opposed to creating a new program. Guidelines with
funding objectives will be released in conjunction with the NOFA and
proposals will be reviewed on a competitive basis.
The RDA will release a request for proposals (RFP)prioritizing the
inclusion of homeownership products and/or a shared equity component
on the West Montrose site located off the northeast corner of 800 South
and 300 West. This site is approximately two acres and could
potentially accommodate a significant number of units.
i 1 1 1 , 1 . 1 1
The RDA is currently in the process of drafting a request for
qualifications (RFQ)to solicit a partner to develop an ADU financial
assistance program in the 9 Line Community Reinvestment Area
(CRA). The average ADU costs $140,000 (including utilities)+ $8,000
in permit fees,making them out of reach for many families. ADUs
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support wealth building by supporting mortgage payments and
increasing income and property values. This program could be
administered by the RDA or externally to better leverage outside
resources and areas of expertise such as landlord training.
The HDLP is a gap financing program for affordable housing
development. The RDA releases funds annually through a competitive
Notice of Funding Availability(NOFA). The HDLP contains a set of
project priorities in which projects are scored. This priority will be
weighted heavier as a part of the HDLP review process.
2.AFFORDABLE FAMILY
HOUSING :
Through the release of the equity building NOFA,the RDA will require
that affordable family-sized units are incorporated within proposals.
Through the release of the West Montrose RFP along with other RFPs
that contemplate housing as a land use,the RDA will require that
affordable family-sized units are incorporated within proposals. In
addition, the RDA has been actively looking to purchase properties to
implement RDA goals.
The HDLP is a gap financing program for affordable housing
development. The RDA releases funds annually through a competitive
Notice of Funding Availability(NOFA). Similar to last year, at least
10% of a development's units must be affordable family-sized(or
deeply affordable)to qualify for the RDA's competitive NOFA. This
priority will also be weighted heavier as a part of the competitive
NOFA review process.
3.DEEPLY AFFORDABLE 1
HOUSING The HDLP is a gap financing program for affordable housing
developments. The RDA releases funds annually through a competitive
Notice of Funding Availability(NOFA). Similar to last year, at least
10% of a development's units must be deeply affordable (or affordable
family-sized)to qualify for the RDA's competitive NOFA. This priority
will also be weighted heavier as a part of the competitive NOFA review
process.
4. MISSING MIDDLE Mighl1 1 '
HOUSING The RDA is currently in the process of drafting a request for
qualifications (RFQ)to solicit a partner to develop an ADU
financial assistance program in the 9 Line Community
8
Reinvestment Area(CRA). ADUs are a form of missing
middle/unique housing that add discrete density to single-family
neighborhoods and could potentially have a significant impact on
Salt Lake City's overall housing supply.
r
The RDA will release a request for proposals (RFP) specifically
soliciting missing middle housing projects. Sites have been
identified within the 9 Line Community Reinvestment Area that
would benefit from this form of development. In addition,the
RDA has been actively looking to purchase properties to
implement RDA goals.
The HDLP is a gap financing program for affordable housing
developments. The RDA releases funds annually through a
competitive Notice of Funding Availability(NOFA). The HDLP
contains a set of project priorities in which projects are scored.
This priority will be weighted heavier as a part of the HDLP
review process.
Figure 2:
FY24 HOUSING ACTIVITY IMPACT
HOUSING ACTIVITIES
HOUSING PRIORITIES Equity Building Model Housing Development ADU Partnership Land Acquisition/
Loan Program Disposition
I I I
Wealth Building
Opportunity
I I I
-------------- --------------7--------------- --------------
I I I
Affordable Family I I
Housing
I I I
-----------------------------1------------------------------
I I I
Deeply Affordable
Housing
I I
----------------------------- ---------------L--------------
I I I
Missing Middle
I
Housing I
9
NEXT STEPS:
• The RDA Board may consider whether the proposed Funding Priorities align with their goals for
the upcoming fiscal year.
• The finalized Funding Priorities will be brought to the Board for consideration to adopt via
resolution in April.
• RDA staff will present the final Funding Strategy to the Board as a part of the budget presentation,
which includes the projected amount of revenue to be allocated to each of the four housing funds.
The Board may consider whether to adopt the final Funding Strategy as part of the annual budget
adoption process.
FY24 ANNUAL HOUSING FUNDING STRATEGY
..........................................................................................................................................................................
HOUSING FUND ANNUAL HOUSING HOUSING
ALLOCATIONS PRIORITIES ACTIVITIES
HOUSING AFFORDABLE LAND
EVELOPME FAMILY ACQUISITION/
FUND HOUSING ISPOSITIO
WEALTH ` /MISSING EQUITY ADU
PRIMARY SECONDARY BUILDING MIDDLE BUILDING ARTNERSHIP
OPPORTUNITY HOUSING MODEL
WESTSIDE DEEPLY ` HOUSING
COMMUNITY AFFORDABLE DEV.LOAN
INITIATIVE HOUSING PROGRAM
ATTACHMENTS:
Attachment A FY23 Funded Projects Summary
Attachment B - RDA Affordable &Mixed-Income Housing Summary: 2010/11 -2022/23
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ATTACHMENT A - FY 23 FUNDED PROJECTS
As required by the Housing Allocation Funds Policy, below are the projects funded in FY 23:DEVEL
IF
��•
•. PROJECT
PROJECTSTATUS UNIT&AMI MIXI COESS PARTNER FUNDING C
•
Securing 18 units s 40%AMI,
Victory Heights 1 &2 1060 E 100 S BCG Holdings $2,145,000 $33,629,608 financing and 70 units at 41-60%
plans AMI
Securing 16 units<_40%AMI,
Citizens West 2&3 509 W 300 N GIV Development $3,050,000 $36,009,653 financing and 64 units at 41-60%
tans AMI
1659 W North Securing 197 units<_40%
Ville 1659 Temple Ville Property Mgmt $1,000,000 $17,156,729 financing and AMI
tans
Securing 55 units<_40%AMI,
Liberty Corner 265 W 1300 S Cowboy Partners $1,125,000 $99,718,091 financing and 67 units at 41-600%
plans AMI,78 at 61-80%
AMI
Securing 38 units<_40%AMI,
Book Cliffs Lodge 1159 S West Temple FAME $540,000* $15,446,701 financing and 9 units at 41-60%
tans AMI,8>_61%AMI
Securing 114 units<_40%
Atkinson Stacks 543 S 500 W FAME $500,000 $29,805,966 financing and AMI
tans
Loan closed, 78 units<_40%AMI,
Spark 1500 W North Brinshore $2,500,000* $93,276'000 awaiting 22ounits at41%-
Temple Development construction to 60%,100 units at
begin 61-80%AMI
Total(s): $10,860,000 $325,042,748 934 Total Units
*These projects received additional RDA funding commitments in previous years.
Below are projects funded through Fiscal Year 2022 (FY 22) HDLP Emergency Gap Funds,but were
processed within FY23
DEVELOPMENTPROJECT ADDRESS ••
COMMITMENTPARTNER •
Loan closed. 110 units<_60%
144 South 500 East 144 South 500 East Red Gate Properties $775,000* $35,177,365 Awaiting AMI
construction.
The Nest 382 S Rio Grande W3 Partners $1,082,500* $62,841,781 Finalizing 220 units<_60%
financing. AMI
1700 South Affordable 230 West 1700 Wasatch Residential $1,000,000 $57,835,943 Loan closing 237 units<_60%
South imminent. AMI
Total(s): $2,857,500 $155,855,089 567 Total Units
*These projects received additional RDA funding commitments in previous years.
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ATTACHMENT B - RDA AFFORDABLE HOUSING SUMMARY: 2010/11 -
2022/23
12
ATTACHMENT B-RDA AFFORDABLE HOUSING SUMMARY: 2010/11-2022/23
.,.AFFORDABLE&MIXED-INCOME . l l r . ALLOCATIONS - 2124/2023
PROJECT ADDRESS PROJECT AREA
TOTAL AFFORDABLE FUNDING .. r r r r r r r r17-18 2018 19 2019-20 r r t2022-23 TOTAL
UNITS UNITS I
Liberty Village 2150 McClelland Street Sugar House 171 35 Loan Completed $0 $1,060,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,060,000
Pamela's Place 525 South 500 West Citywide Housing 100 100 Loan Completed $0 $0 $0 $0 $0 $0 $500,000 $0 $0 $0 $0 $0 $0 $500,000
Capitol Homes 1749 South State Street State Street 93 62 Loan Completed $0 $0 $0 $0 $0 $0 $0 $3,200,000 $0 $0 $0 $0 $0 $3,200,000
Citifront Apartments 641 West North Temple North Temple 155 94 Loan Completed $0 $0 $0 $0 $0 $0 $422,266 $0 $0 $0 $0 $0 $0 $422,266
Exchange Building B 340 East 400 South Citywide Housing 126 80 Loan Completed $0 $0 $0 $0 $0 $0 $0 $0 $3,000,000 $0 $0 $0 $0 $3,000,000
255 State Street 255 State Street Central Business 190 168 Loan,Note In Process $0 $0 $0 $0 $0 $0 $0 $0 $2,000,000 $11,403,480 $1,151,399 $0 $0 $14,554,879
Jefferson Mixed-Use 912/916 Jefferson Street West Temple 3 3 Disposition:Property, Completed $0 $0 $0 $0 $0 $0 $0 $0 $385,000 $1,998,000 $0 $0 $0 $2,383,000
Bookcliffs Lodge 1159 South West Temple State Street 55 47 Loan In Process $0 $0 $0 $0 $0 $0 $0 $0 $1,000,000 $0 $0 $0 $540,000 $1,540,000
SPARK! 1500 West North Temple North Temple 200 200 Loan,Note In Process $0 $0 $0 $0 $0 $0 $0 $0 $2,500,000 $3,956,000 $0 $0 $8,000,000 $14,456,000
Richmond Flats 2960 S Richmond St High Opportunity 55 55 Loan In Process $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,800,000 $0 $0 $0 $1,800,000
Central Station Apartments 549 W 200 South Depot District 65 52 Loan Completed $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000,000 $0 $0 $0 $1,000,200
Jackson Apartments 274 W 200 South Central Business 80 80 Loan Completed $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000,000 $0 $0 $0 $1,000,000
Liberty Wells 501 E 1700 South Citywide Housing 10 10 Loan In Process $0 $0 $0 $0 $0 $0 $0 $0 $0 $150,000 $0 $0 $0 $150,000
144 South 500 East 144 South 500 East Citywide Housing 110 110 Loan Under Construction $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,775,000 $0 $1,775,000
The Nest 382 S Rio Grande Depot District 220 220 Loan In Process $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,082,500 $0 $2,082,500
1700 South Affordable 230 West 1700 South State Street 237 237 Loan Under Construction $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000,000 $0 $1,000,000
Victory Heights 1&2 1060 East 100 South Citywide Housing 88 88 Loan In Process $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,145,000 $2,145,000
Citizens West 2&3 509 West 300 North Citywide Housing 80 80 Loan In Process $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,050,000 $3,050,000
Ville 1659 1659 West North Temple North Temple 197 197 Loan In Process $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000,000 $1,000,000
Liberty Comer 265 West 1300 South State Street 200 200 Loan In Process $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,125,000 $1,125,000
Atkinson Stacks 543 South 500 West Citywide Housing 114 114 Loan In Process $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $500,000 $500,000
AAspace Commons 423 West 800 South Granary 102 102 TI Reimbursement Completed $21,332 $48,880 $38,843 $36,237 $38,364 $38,431 $38,813 $21,194 $100,025 $34,000 $0 $0 $0 $416,119
Northgate Apartments 135 South 500 West Depot 330 159 TI Reimbursement Completed $853,673 $802,648 $838,207 $856,452 $696,064 $708,427 $586,103 $426,209 $521,038 $600,000 $712,922 $653,790 $0 $7,601,743
West Montrose 300 West 800 South West Capitol Hill tbd tbd Acquisition In Process $407,912 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $407,912
Pugsley Street 571 North Pugsley St West Capitol Hill 1 1 Acquisition Completed $0 $96,267 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $86,267
Arctic Court 524/528 N Arctic Court West Temple 2 1 Ac i isition, In Process $0 $0 $0 $0 $200,000 $0 $0 $0 $0 $0 $0 $0 $0 $200,000
9M East Lofts 440 South 900 East Citywide Housing 68 54 Disposition:Discount Completed $77,821 $556,224 $0 $189,625 $0 $0 $0 $0 $0 $0 $0 $0 $0 $823,670
Macaroni Flats 244 South 500 West Depot 13 13 Disposition:Discount Completed $0 $0 $0 $1,100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,100,000
Utah Paperbox 300 West 200 South Central Business 183 39 Disposition:Discount Completed $0 $0 $0 $0 $0 $0 $3,200,000 $0 $0 $0 $0 $0 $0 $3,200,000
Utah Theater aka Main Street 144-156 Main Street Central Business 400 40 Disposition:Discount In Process $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,070,000 L
$0 $2,070,000
Apartments
Diamond Rail 535 W 300 North Citywide Housing 80 55 Loan Completed $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000,000 $0 $1,000,000
Colony B 228 W 1300 South State Street 140 106 Loan In Process $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1, $0 $1,340,000
Housing Trust Fund(HAND) WA Citywide Housing Housing Trust Fund na $288,910 $109,000 $208,578 $124,350 $899,902 $518,393 $0 $3,000,000 $0 $0 $5,149,133
Transfer to HAND
1 649 648 2 673 019 1 085 628 2 306 664 1 834 330 1 265 251 4 747182 6 647 403 9 506 063 25 011 480 3 16 360 000 81 148 489
Note PmsuaMN Utah T&17C,Crmmunity Reinvestment Agency Ad,A d.W Uni are tleh,xl as being asomaue f,heuseholtl eamim 80%of the area xAisn,n aW bebw.
Note:FUMirg allocalbm one approvmalbm basetl an the RDA's annual bu�els,annual mpens,Boartl resolutions,antl loan tracking system.
Nole:Tale,WWes ir.pc that receives are er more furtling allocations tlunre FY 2010-11 through FY 2022-23 YTU(February 1..2023).Projects were not neceasany mmpletetl tlunng Nis fimefmme.
Nole:The total Utah Theater prapeny tlisceunt is$4,07000.Approvmately$2,070,000 can be xu buM to afed.bi.housing.
Note:The 201617 albceten of$422,M for CtAront Apirtments was br ban forgiveness.
12