HomeMy WebLinkAbout11/20/2024 - Meeting Materials MEETING OF THE
REDEVELOPMENT AGENCY FINANCE COMMITTEE
Wednesday, November 20, 2024
2:00 p.m.
451 S State Street Room 118
Salt Lake City, UT 84111
The Redevelopment Agency (RDA) Finance Committee meeting will be a hybrid meeting which enables people
to join remotely or in-person to listen to the meeting and participate during public comment items.
To access and participate in the electronic meeting please visit
https://us02web.zoom.us/i/87093887988?pwd=WmovdlVNbUhEQUVESVZGWEZpVmN4dzO9
Password: 509222
Agenda
1. Roll Call
2. Approval of Minutes
A. Review and Approval of May 29, 2024, Meeting Minutes
Members will review the May 29, 2024, meeting minutes and consider for approval
3. Business
A. Open and Public Meeting Act Training—Allison Parks, Senior City Attorney
Members will receive training on the Open and Public Meetings Act.
B. Accessory Dwelling Unit (ADU) Financing Program Notice of Funding Availability(NOFA)—
Austin Taylor and Browne Sebright, Project Managers
Members will receive a briefing on the ADU Financing Program NOFA, consider three proposals
for funding, and may provide a recommendation to the RDA Board of Directors.
4. Adjournment
People with disabilities may make requests for reasonable accommodation no later than 48 hours in advance to
attend this Redevelopment Agency Finance 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 AGENCY FINANCE COMMITTEE
Thursday, May 29th, 2024
9:00 am
1. Roll Call
The following members were present:
Danny Walz, RDA, Chair
Blake Thomas, CAN, Vice-Chair
Peter Makowski, Economic Development
Tony Milner, Housing Stability
Marina Scott for Mary Beth Thompson, Financ
Amy Rowland, Redevelopment Advisory Co
Robyn Stine, RDA Office Manager
Not present:
Baxter Reecer
Also Present:
Tracy Tran, RDA S Pro' Manager; Ma ee, RDA Project Coordinator; Sara
Montoya, Senior City utle , Heather Royall, Jacob Williams, Lisa
Imamur
2. A val of the min es of the meetings on February21, 2024 and April 17 2024.
Peter wski moved too approV'�the minutes from the February 21, 2024 and April 17,
2024 mee . Marina Scott seconded the motion. Upon roll call, this motion was passed
unanimousl .
3. Business
A. Loan Amendment and Conditional Waiver for the Catherine Phases I and II—
Tracy Tran, Senior Project Manager and Marcus Lee, Project Coordinator
Tracy Tran and Marcus Lee presented background on The Catherine Phase I and II, and
further explained the request from 22 Communities, LLC to amend the loan agreement and
add a conditional waiver by restructuring the loan into an acquisition loan.
Mr. Lee said the original loan approved for the project was a cash flow loan at a 2% interest
rate with a 16-year term and 40-year amortization. The proposed amendment seeks to convert
this into an acquisition loan, utilizing the same funds. The acquisition loan would have a
lower interest rate of 1% and include a balloon payment or conversion to a construction loan
within two years, maintaining the original terms. He added that if the deed restriction is
waived, the developer will face a significantly higher interest rate, calculated at the 2-year
Treasury yield plus 800 basis points (or 8%), to prevent the property from being flipped to
the private market and ensure the completion of the affordable housing project.
Ms. Tran said the proposed changes include: 1) amending the loan typor each phase to an
acquisition loan that can convert to a construction-to-permanent loan within two years, and 2)
allowing a conditional waiver of the affordable deed restriction that would permit the
removal of the 30-year deed restriction by requiring the developer, 22 Communities LLC, to
pay an above-market interest rate if the project fails t secure tax credits d other necessary
financing within that timeframe of 2 years.
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Questions/Comments:
• A request for further clarification on the previous estriction related to the property,
the removal of this as proposed,I% when the higher est rate would take effect.
o Tracy responded if the develo�r fails to secure tax di s a d build affordable
housing, they will be required to repay the loan at a highe terest rate. This rate
would replace the original 1% interest, starting when the funds were disbursed and
continuing throughout the loan's duration.
• It was commented about restrictions associated withl Imefunds, whether home funds
would permit such arrangements, and whether repaying them without producing housing
might jeopardize future funding for other projects, such as time restraints.
o Dennis Rutledge responded that if the project doesn't move forward, the HOME funds
mu,q be repaid. 'Mere is a 6-year contract with HUD to spend those funds. After
repayment, tlW fun an be redistributed for future projects, but from the original
release date of those is.
• 'fication was asked about the originally approved 2% loan and why the percentage is
1 th an acquisitions loan,v
o Trans responded that under the loan program and policy, the maximum interest
rate ped at 3 ; however, if a project meets specific priorities, this can be
reduce 1 %.
• Concern was egarding the security of financial backing and the recompense of
this loan.
o Jacob illiams said they are expecting to either secure an award or sell the land
within the year. They planned for a 12-month interest reserve. This pre-funding
provides assurance. They are exploring additional short-term tenants to extend the
interest reserve. With the existing tenant's payment of$10,000, the reserve should
last beyond a year. Feel that both phases will be funded once the full pool bond is
available due to the competitive
• Questions pertaining to occupying the ground floor retail space, types of businesses, and
the overall strategy to fill this retail.
o Jacob Williams said they are not far enough into the project to have specific details
and resources, however they are open to revisiting previous discussions with City
Council Members and Economic Development to work together to determine the best
amenities for the neighborhood.
• How dependent is the project on receiving the pending approval of Oleane Walker funds
to ensure it meets the affordable restrictions?
o Jacob Williams responded that they feel confident they will close the gap and hopeful
but not depending on the Oleane Walker funds.
Tony Milner made a motion to approve to amend the loan agree add a conditional
waiver by restructuring the loan into an acquisition loan. Pete kowski seconded the
motion. Upon roll call, the motion passed unanimously.
4. Adjournment
There being no further business the meeting a urned.
y Walz, Chairperson
This document along wit 1 recording stitute th ficial minutes of the
Redevelopment Agen inanc mittee hel ay 29, 2024.
RDA FINANCE COMMITTEE MEETING MEMORANDUM
ADU Financing Program Notice of Funding Availability("NOFA")
Meeting: Wednesday,November 20,2024 2:00 PM,City and County Building,Room 126 or Zoom
Meeting
DATE: November 20,2024
TO: RDA Finance Committee
1. Redevelopment Advisory Committee: Amy Rowland
2. Redevelopment Advisory Committee: Baxter Reecer
3. Economic Development: Peter Makowski(or alternate)
4. Finance: Mary Beth Thompson(or alternate)
5. Redevelopment Agency: Danny Walz(or alternate)
6. Community and Neighborhoods: Tammy Hunsaker(or alternate)
7. Housing Stability: Tony Milner(or alternate)
FROM: Austin Taylor,RDA Project Manager
Browne Sebright,RDA Project Manager
RE: RDA Finance Committee Meeting—Funding recommendation for the Accessory
Dwelling Unit Financing Program Notice of Funding Availability
OVERVIEW
On July 29, 2024, the Redevelopment Agency ("RDA") of Salt Lake City("City")released a
$2.9M Notice of Funding Availability ("NOFA") to fund an Accessory Dwelling Unit("ADU")
financing program The RDA received three program proposals by the NOFA closing date on
September 27, 2024.
RDA staff, along with members from the City's Housing Stability and Building Services
divisions, have reviewed and ranked the three proposals based on criteria laid out in the NOFA
Guidelines and Application Handbook. Staff is now bringing these ranked proposals to the RDA
Finance Committee ("Committee") for a funding recommendation to provide to the RDA Board
of Directors ("Board"). The Committee may choose to recommend funding no program, one
program, or multiple programs. RDA staff anticipates bringing the Committee's recommendation
to the Board at its December meeting for a decision.
FUNDS AVAILABILITY
Approximately$2.9 million is available for projects that meet the Threshold Requirements listed
in the NOFA Guidelines and Application Handbook(Attachment A). Approximately $1.9
million of these funds have been set aside specifically for use in the 9-Line Project Area. The
remaining $1 million in funding can be used on affordable housing projects anywhere in the city.
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Funds Category Geography Amount
9-Line Community Reinvestment Area Funds 9-Line Only $1,755,680
Secondary Housing Fund 9-Line Only $157,535
Housing Development Fund Citywide $1,000,000
Total $2,913,215 $2,913,215
PROGRAM GOALS
Housing SLC, the City's 5-year guide to housing-related efforts, establishes strategies and goals
for making housing more available and attainable to people of all incomes. Under Strategy P
(utilization of a moderate-income housing set aside), the RDA is tasked with developing a
financing program for Accessory Dwelling Unit(ADU) construction for low-income
homeowners.
There is currently no adopted policy dictating how RDA should create or fund ADUs programs.
However, the 2021 9-Line Interlocal Cooperation Agreement between Salt Lake County and the
RDA specified that the County wanted to see an ADU program that provided financial assistance
through loans or subsidies.
"The Agency will establish a loan or subsidy program to facilitate the construction of
ADUs specific to the Project Area." (5.a.i.)
Launching an ADU program that meets this goal by December 31, 2025 allows the RDA to meet
one of three performance benchmarks required to increase RDA tax increment collection from
50% of County incremental tax to 60% starting in 2026.
At its June 2023 meeting, the Board encouraged RDA staff to implement this program not only
in the 9-Line Project Area, but also in all of Salt Lake City's westside neighborhoods. Thus, the
RDA intends to fund programs that lend to homeowners anywhere west of I-15 in Salt Lake
City.
REVIEW AND APPROVAL PROCESS
Pursuant to the ADU NOFA Guidelines and Application Handbook, the review process for this
NOFA began with a threshold review in October 2024. RDA staff reviewed each of the three
applications for compliance with the threshold requirements, which confirmed applicant,
program type, and area eligibility. All three of the applications met these thresholds.
Review Committee Scoring
RDA staff then assembled an internal review committee comprised of RDA and City staff from
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the Housing Stability and Building Services divisions to evaluate and rank the proposals. This
internal review committee read and scored each proposal based on the following criteria:
i. Alignment and understanding of RDA's program goals (15%weight)
ii. Content and quality of the program narrative (10%weight)
iii. Effectiveness of the proposed program approach(20%weight)
iv. Qualifications and experience of the applicant team as well as their capacity to
manage the program for two or more years (20%weight)
V. Content, effectiveness, and appropriateness of the budget, sources and uses, and
related assumptions (20%weight)
vi. The readiness of the program to launch (15%weight)
After individually scoring the proposals, the internal review committee met in late October to
combine scores and rank the proposals. Staff presents this ranking below.
Alignment and Content and Effectiveness of Qualifications Content, The readiness of
understanding quality of the the proposed and experience effectiveness, the program to
of the RDA's program program of the applicant and launch
program goals narrative approach team as well as appropriateness
Weighted Score Weighted Score Weighted Score Weighted Score Weighted Score Weighted Score Total Possible
CDC Utah 4.1 2.7 5.0 5.8 4.8 3.5 25.8 30
NW Salt Lake 3.5 2.0 3.6 5.2 4.0 3.0 21.3 30
Viking Capital 2.3 1.8 3.2 4.2 4.0 3.2 18.6 30
RDA Finance Committee Recommendation
The Committee is tasked with providing a funding recommendation to the Board. The
Committee is asked to review the proposals and recommend funding for the $2.9M available for
an ADU financing program.
RDA Board Funding Decision
The Board will receive the Committee's recommendation and approve the final program
funding. RDA staff are working to bring the Committee's recommendation to the Board's
December 10, 2024 meeting.
SUMMARY OF APPLICATIONS
Community Development Corporation of Utah (Ranked Ist with a score of 25.8/30)
CDCU's application proposes a program that offers financing and property management
assistance. The proposed program consists of a combination grant and loan product that is
available to either(1)homeowners earning up to 80% of AMI and renting their ADU at market
rate, or(2)homeowners earning greater than 80% of AMI and renting their ADU at a rate
affordable to renters earning 80% of AMI.
CDCU's proposal does not include outside funding but the applicant is "in constant conversation
with other national CDFls and financial institutions to build a loan fund pool for affordable and
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innovative financial solutions." The program would offer a website where homeowners could
apply for the ADU financing program. CDCU proposes to market this program through websites,
social media, events, and community partnerships. CDCU currently offers complimentary
programs, including a financial coaching & education program, a home buyer education
program, and the Tenant Resource Center. CDCU is asking for the full $2.9 million in RDA
funds to pay for program servicing, a loan loss reserve fund, a grant fund, and a revolving loan
fund. It proposes launching this program in 2025.
NeighborWorks Salt Lake (Ranked 2nd with a score of 21.3/30)
NeighborWorks proposes a holistic program, offering guidance for homeowners from design to
property management. Its program envisions different loans for homeowners earning 80% of
AMI or less, those earning 80% of AMI or more, and those earning between 100% and 120% of
AMI—with each group eligible for a different loan amount. NeighborWorks proposes an online
application in both English and Spanish. NeighborWorks currently offers a complimentary
financial education program.
NeighborWorks proposes partnering with Strawtegi on this program, which would provide
design and construction services. Strawtegi specializes in sustainable construction techniques
using local and carbon-neutral materials. Strawtegi proposes using this funding to launch an off-
site modular ADU production facility that will offer 3 ADU options. NeighborWorks offers $1.5
million of its own funding and is asking for the full $2.9 million in RDA funds to pay for
administrative costs, marketing, office expenses, staff time, legal and consulting fees, and the
creation of a loan fund. It proposes launching its program in 2025.
Viking Capital(Ranked 3rd with a score of 18.6/30)
Viking Capital proposes a purely financial program and exhibits the greatest amount of lending
experience and financial capacity. Its program envisions a dual loan and grant program, sized up
to a 45% debt-to-income ratio, that would allow the homeowner to rent at rates affordable to
tenants earning 80% of AMI.
Leveraging its vast pool of lending partners, Viking Capital is offering to bring up to $150,000 of
funds per loan to the program. Along with or in place of a grant, Viking Capital offers the option
to reduce the borrower's monthly debt service payment by using RDA funds to buy down the
interest rate or cover lending fees. Viking Capital proposes vetting any ADU builders interested
in being part of the program's list of vetted builders. This program would use RDA funds to give
grants to homeowners, buy down interest rates, or cover lending fees. Viking Capital has not
indicated having done prior lending work in Utah. Viking Capital proposes launching its
program in 2025.
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Comparison Chart
CDC Utah NeighborWorks Salt Lake Viking Capital
Review 25.8 out of 30 21.3 out of 30 18.6 out of 30
Committee
Score
Loan Terms Up to $200,000 Up to $250,000 Up to $200,000
30-year amortization <80%AMI: recapture loan 6% fixed rate
5-year term with 5-year 80-100%AMI: 50150 2-year term
extension option recapture and below-market
3% fixed rate interest loan
$2,000 origination fee 100-120%AMI: low-
interest loan
Interest only for first 12
months with a
capitalized construction
period interest reserve
funded from loan
proceeds.
Grant Up to $50,000 N/A $50,000 to $100,000
Terms
Other Required participation in Pre-selected ADU builder List of vetted ADU
Services landlord training and (Strawtegi)with 3 ADU builders
Included financial counseling models
programs.
Educational components
and workforce development
Outside $0 $1.5 million Up to $150,000 per
Funding loan
Committed
RDA $2.9 million $2.9 million $2,325,000 (includes
Funding 2 years of operating
Request expenses)
Use of RDA Revolving loan fund Loan fund Operating expenses
Funds (marketing,
Grant fund Operating expenses administrative)
Loan loss reserve Salaries and wages Grant fund
Program servicing Office expenses Interest rate buydown
Marketing Lender and dealer
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Professional fees fees
Partnership expenses
Affordability In-house, $200/yr fee In-house, $50/yr fee Not specified
Compliance
Marketing Web, social media, Web, social media, events, Web, social media,
events, and community community partnerships, direct mail
partnerships and print flyers
Proposed 2025 2025 2025
Program
Launch
Projected 15-20 10 60
ADUs
Constructed
ATTACHMENTS
• Attachment A: Notice of Funding Availability for Accessory Dwelling Unit Financing
Program Guidelines and Application Handbook
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Attachment A
Notice of Funding Availability for Accessory Dwelling Unit Financing
Program Guidelines and Application Handbook
NOFA:Accessory Dwelling Unit Financing Program
•
ram,
NOTICE OF FUNDING AVAILABILITY (NOFA)
FOR ACCESSORY DWELLING UNIT FINANCING PROGRAM
Guidelines and Application Handbook
THE APPLICATION DEADLINE IS FRIDAY, SEPTEMBER 27, 2024 AT 3:OOPM MT
REDEVELOPMENT AGENCY OF SALT LAKE CITY
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TABLE OF CONTENTS
SECTION 1: INTRODUCTION & OVERVIEW........................................................................ 3
SECTION 2: GENERAL PROVISIONS ................................................................................. 4
SECTION 3: THRESHOLD REQUIREMENTS....................................................................... 5
SECTION 4: APPLICATION REQUIREMENTS ..................................................................... 6
SECTION 5: APPLICATION, REVIEW & APPROVAL PROCESS..............................................8
SECTION 6: COMPLIANCE ............................................................................................... 9
SECTION 7: ADDITIONAL PROGRAM COMPONENTS.......................................................... 9
SECTION 8: ATTACHMENTS........................................................................................... 10
REDEVELOPMENT AGENCY OF SALT LAKE CITY 2
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SECTION 1: INTRODUCTION & OVERVIEW
1.1 Introduction
In releasing this Notice of Funding Availability ("NOFA"), the goal of the Redevelopment Agency
of Salt Lake City ("RDA") is to provide financial assistance to homeowners for the construction of
accessory dwelling units ("ADUs") on Salt Lake City's Westside—generally defined as west of I-15
to the city's western boundary (see Attachment A for map). Qualified organizations that
demonstrate their ability to administer a program to support the construction of ADUs are
encouraged to apply. As provided in more detail below, this program may involve the underwriting
and servicing of ADU construction and/or permanent financing or the management of another
financial resource that furthers the following goals:
• Increasing the supply of affordable housing in Salt Lake City
• Incrementally increasing density in primarily single-family neighborhoods
• Providing homeowners the opportunity to build wealth through ADU construction and
leasing
• Increasing neighborhood stability and investment
1.2 Background
Constructing ADUs may prove an impactful strategy to solving the region's housing affordability
crisis. ADUs are small rental housing units—attached or detached—located on the same parcel as
the primary house. They are typically rented and managed by the owner of the primary house who
also lives on site. ADUs are flexible, allowing homeowners to earn rental income, downsize into the
ADU, or provide intergenerational housing. They are also typically less expensive to build than a
new home or apartment unit and tend to be rented below market rates—perhaps even free to the
owner's friends or family.
Unfortunately, increased interest rates have made financing ADUs through a cash-out refinance or
home equity line of credit less appealing or financially inaccessible for homeowners. The lack of
financing options has led to the uneven distribution of where new ADUs are constructed in Salt
Lake City. The City's Planning Division produced an ADU report in 2021 that shows homeowners
in single-family neighborhoods east of 1-15 are building ADUs at a higher rate than homeowners
west of 1-15, despite having similar lot sizes and zoning requirements.
Resources developed through this NOFA are intended to help Salt Lake City homeowners in
Westside neighborhoods build ADUs. The RDA is committed to launching a pilot ADU financing
program on the Westside primarily due to its large amount of single-family housing stock, relatively
high homeownership rates, and lack of ADU construction to date.
1.3 NOFA Inquiries
i. Questions: During the application period, prospective applicants may submit clarification
questions to the RDA about the NOFA through the Utah Public Procurement system. The
RDA will respond to all questions submitted and will distribute the responses to all
registered users of the system. Questions will be answered as they come in and must be
submitted no later than Friday, September 13, 2024 at 5:00pm MT to allow sufficient
time for the RDA to respond to questions and for applicants to consider or incorporate the
guidance in their proposals. Prior to the application deadline, please check the RDA's
website, , regularly for any updates, corrections, or posted questions and
answers regarding the NOFA.
ii. Information Session: RDA staff will host a information session on Monday, August 5 at
REDEVELOPMENT AGENCY OF SALT LAKE CITY 3
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10:00am MT to explain this opportunity and answer questions potential applicants may
have. Please email Austin Taylor at austin.taylor@slcgov.com to request an invitation to
the virtual meeting
1.4 Submittal Period and Deadline
Applications will be reviewed and considered for the duration of the NOFA period, but must be
received no later than Friday, September 27, 2024 at 3:00pm MT. Submittal documents shall
be combined and emailed in a Portable Document Format (.pdf) to:
Austin Taylor, RDA Project Manager, at austin.taylor@slcgov.com.
1.5 Submittal Requirements
To be considered complete, application submittals must meet the application requirements as
outlined in Section 4. Incomplete applications will not be accepted.
1.6 Funding Decision
After an initial review to ensure applications are complete and meet threshold requirements, the
process for awarding funding shall be carried out in two parts: 1) the RDA Finance Committee
shall evaluate applications and provide funding recommendations, and 2) the RDA Board of
Directors shall consider funding recommendations and select projects for funding awards subject
to the negotiation of final terms.
1.7 Helpful Resources
Housing SLC is a plan to guide Salt Lake City's housing-related efforts over the next 5 years.
Thriving in Place is Salt Lake City's strategy and action plan that identifies key areas of work
necessary to address the multiple factors that drive displacement and create long-term solutions
that can help residents remain in place.
The Westside Master Plan includes the 9-Line Project Area, which will be the geographic focus of
an initial ADU financing program.
The 9-Line Community Reinvestment Area Plan details the RDA's goals and planned tasks for
Westside neighborhoods inside the 9-Line Project Area.
SECTION 2: GENERAL PROVISIONS
2.1 Funds Availability
Through this NOFA, the RDA intends to solicit, evaluate, select, and fund programs that provide
financial assistance to help homeowners build ADUs in Westside neighborhoods. RDA funds may
be used to make loans or grants to homeowners, pay for staff time, or other expenses associated
with providing homeowners with financial assistance to build ADUs.
The RDA Board of Directors has set aside $1.15 million for this NOFA to fund ADU financial
assistance program(s) anywhere in the City. The RDA also has $1.75 million to fund programs in
the 9-Line Project Area; the Board may be able to release these funds for citywide use through a
budget amendment. Applicants must justify their need for the requested funding amount and
demonstrate their own financial commitment to the program. Funding shall be allocated through a
competitive and transparent public process to be administered by the RDA, for which any
organization may apply with a project that meets RDA goals. Multiple projects may be funded.
REDEVELOPMENT AGENCY OF SALT LAKE CITY 4
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Any funds not spent or distributed at the end of the program must be returned to the RDA. This
may include, for example, unspent loan loss reserve funds, revolving loan funds, grant money not
distributed, etc.
2.2 Program Goals
The purpose of this funding is to expand opportunities for homeowners in Salt Lake City's Westside
neighborhoods to build ADUs. This shall be accomplished by providing homeowners with financial
assistance, whether through loans, grants, or another financing mechanism.
The RDA aims to fund programs that meet the following goals:
1. Increasing the supply of affordable housing in Salt Lake City
2. Incrementally increasing density in primarily single-family neighborhoods
3. Providing homeowners the opportunity to build wealth through ADU construction and leasing
4. Increasing neighborhood stability and investment
2.3 Funding Commitment
Successful applicants under the NOFA will receive a conditional commitment of funding, the
length of which will be determined by the project scope, timing, and approvals. The RDA will then
work with the applicant on a contractual agreement before launching the program and releasing
funds.
2.4 Timeline
This program is to be piloted on the city's Westside for a maximum of two years, or until program
funds are exhausted, whichever is sooner. If proven successful, the RDA may choose to extend the
timeline and possibly expand the program citywide. Additional funding allocated for the program
may also be considered.
2.5 Affordability Requirement
The ADU assistance program must provide targeted financing assistance for ADUs that are rented
to households earning 80% of the Area Median Income (AMI) or less at affordable rents—as
defined by HUD standards. To ensure this affordability, the ADUs must be both income and rent
restricted and proposals must contemplate how compliance with rental affordability standards will
be maintained. Alternatively, programs may finance ADU construction without rental restrictions
for homeowning households at or below 80% AMI; these programs must also contemplate how to
ensure funds are used to benefit those households at or below 80% AMI.
Utah State Code Title 17C-1-411 (1) (a) enables the RDA to fund housing development for people
of all income levels within project areas. Outside of project areas, Utah State Code Title 17C-1-
411 (1) (b) allows RDAs to facilitate the development of affordable (not market-rate) housing.
2.6 Attached and/or Detached ADUs
The ADU assistance program should support attached and/or detached ADU construction and
propose different funding structures for each if necessary.
2.7 Marketing Strategy
Program partners should describe their proposed outreach and marketing strategy for successful
engagement with homeowners on the Westside. Successful marketing concepts may include
creative or nontraditional ways to disseminate information regarding the program and ADUs in
general.
2.8 Sustainable Building Design
Per the RDA's Sustainable Development Policy, all newly-constructed ADUs receiving $200k or
more of RDA money must be designed to meet a Designed to Earn ENERGY STAR target of 90 or
REDEVELOPMENT AGENCY OF SALT LAKE CITY 5
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higher and be designed and built to use electricity as their only fuel source. ADU projects
receiving less than $200k in RDA funding are exempt from this requirement but should strive to
incorporate sustainable building practices into the ADU, if practicable.
2.9 Code Compliance
The ADU assistance program must comply with all current building code regulations and zoning
(Section 21A.40.200 of Salt Lake City Zoning Code), including requiring owner occupancy in one
of the two units and prohibiting short-term rentals.
SECTION 3: THRESHOLD REQUIREMENTS
3.1 Eligible Applicants
Applications will be accepted from:
i. For-profit corporations, partnerships, joint ventures, or sole proprietors
ii. Private incorporated non-profit agencies with IRS 501(c) designation
iii. Public housing agencies or units of government
Applicants and their teams must have the experience, financial expertise, and technical capacity
to deliver a program that meets all of the requirements contained herein.
3.2 Eligible Program Types
The following program types are eligible for funding in this NOFA:
i. Loans—construction, construction-to-permanent, and permanent financing for ADUs
ii. Grants—financial awards that help the homeowner to build an ADU
iii. Other financing mechanisms—creative financing products or structures that help
homeowners build an ADU
3.3 Eligible Area
Eligible programs shall fund ADU construction in Salt Lake City's Westside neighborhoods. Refer
to Attachment A for a map of the eligible area.
SECTION 4: APPLICATION REQUIREMENTS
4.1 Application Components
To be considered complete, application submittals must include all of the following components:
SECTION DESCRIPTION
Please include the following information:
1 Executive A. Applicant summary
Summary B. Program summary
C. Alignment with RDA program goals and priorities
Please include the following information:
A. The proposed approach to administering an ADU financial assistance
2 Program program on the city's Westside
Approach B. How the program will help homeowners fund ADU construction
C. How the program will meet the threshold requirements and optional
preferences as listed in this document
REDEVELOPMENT AGENCY OF SALT LAKE CITY 6
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D. How the program will accomplish the RDA's goals as listed in this
document
E. How the program will be launched, advertised, and managed including an
estimated timeline to get the program up and running and the
mechanism to be used to enforce affordability requirements
F. Any other unique features of the proposed program that would further the
RDA's goals
Please include the following information:
A. Applicant's experience working on similar programs
Applicant B. Applicant's ability to successfully launch the program
3 Experience C. Applicant's capacity to manage the project for the long-term and possibly
Narrative city-wide if pilot program is expanded after initial two years
D. Program team overview
E. Role of each program partner and major consultant used on this program
Please include the following information:
A. Requested funding amount from RDA
B. Additional funding sources to be contributed to the program including
4 Financial those that are committed and proposed
Narrative C. The proposed use of all program funds including the total amount of
funds required to be successful
D. The proposed use of RDA funds specifically (i.e. revolving loans, grants,
loan loss reserve, etc.)
Please include the following information:
Other A. Cash flow models
5 Attachments B. Sources and uses
C. Letters of support
D. Any other relevant supporting documentation
4.2 Completeness
Applications in response to this NOFA must be submitted as per the competitive application
process administered through the Utah Public Procurement system. Applications that are not
received prior to the time and date specified will be deemed late and will not be considered.
Submissions lacking one or more of the requested documents may be considered incomplete or
irregular. The RDA reserves the right to reject any incomplete or irregular submission and reserves
the right to waive any non-material irregularity in submissions. The RDA reserves the right to
reject any or all applications.
Applications that are not received by the RDA prior to the time and date specified will be deemed
late and will not be accepted. Applications must be submitted via email as follows:
Email Submittal: Applications shall include all required documents combined and be submitted via
email in one Portable Document Format (.pdf) file and submitted to:
Austin Taylor, RDA Project Manager
austin.taylor@slcgov.com
The subject line should contain: "NOFA Application for (applicant name)". Submittals that do not
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include the requirements as outlined in Section 4.1 or are time-stamped later than 3:00 PM MT
on Friday, September 27, 2024 due to either human or technological error, will not be accepted.
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SECTION 5: APPLICATION, REVIEW, & APPROVAL PROCESS
The Application, Review & Approval Process will be conducted through an evaluation of projects which
meet all thresholds established in Section 3. Applications that satisfy these criteria will be reviewed by the
RDA's Finance Committee and Board of Directors. The application deadline is Friday, September 27,
2024 at 3:OOpm MT.
PHASE DATE/TIME MILESTONE
Monday, July 29, 2024 . NOFA released
Monday, August 5, 2024 • NOFA Informational Meeting
1 Application (Webex Meeting Link)
Friday, September 13, 2024,
5:OOpm MT • Deadline for questions
Friday, September 27, 3:OOpm MT • Applications due
Threshold • Applications that meet
2 Review October 2024 Threshold Requirements
proceed to Phase 3
• Applications that are forwarded
from Phase 2 will be further
Project evaluated and ranked
3 Evaluation and October 2024 • RDA Finance Committee to
Review provide program funding
recommendations forwarded to
the RDA Board.
Project Meeting of the Legislative Body • RDA Board of Directions review
4 tentatively scheduled for November and provide final program
Selection 2024 funding approval
• Conditional commitment letter
5 Funding Award Varies by project
• Firm commitment and funding
The five phases of the application process are described below.
1. Application: A competitive application process shall be administered through the Utah Public
Procurement system.
2. Threshold Review: Applications must meet every one of the requirements outlined in Section 3 or
they will be deemed ineligible and will not be reviewed further. Applications that meet all of the
Threshold Requirements will advance to Phase 3, Project Evaluation and Review.
3. Project Evaluation and Review: Applications that meet all Threshold Requirements will be
evaluated based on the following items:
i. Alignment and understanding of the RDA's program goals
ii. Content and quality of the program narrative
iii. Effectiveness of the proposed program approach
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iv. Qualifications and experience of the applicant team as well as their capacity to manage
the program for two or more years
V. Content, effectiveness, and appropriateness of the budget, sources and uses, and related
assumptions
vi. The readiness of the program to launch
As applications are evaluated and ranked, they will be forwarded to the RDA Finance
Committee. Programs that the Committee finds to score most competitively will be
recommended to the RDA Board of Directors for a conditional commitment for funding.
4. Program Selection:The RDA Board of Directors will make the final selection of programs identified
for a conditional commitment of funding.
5. Funding Award:The funding award process will be carried out in two subparts as follows:
i. Conditional Commitment Period—The RDA will issue a Conditional Commitment letter to
those applications that are selected for funding by the RDA Board of Directors. The
Conditional Commitment letter between the RDA and the applicant will contain the
covenants, terms and conditions upon which the RDA will provide financial assistance for
the proposed program once financial, legal, regulatory, and design approvals are obtained.
The Conditional Commitment Period will be determined on a case-by-case basis
depending on the program's scope and timeline.
ii. Program Funding Agreement—The RDA and applicant will negotiate terms and enter into
a program funding legal agreement.
iii. Firm Commitment & Closing—Programs that successfully meet conditions will be invited
to execute a Letter of Commitment that finalizes the funding terms, subject to a set of
conditions precedent to closing.
SECTION 6: COMPLIANCE
Each applicant must certify that the program is, and will be, in compliance with all applicable federal,
state, and local rules and regulations. Programs will be subject to ongoing monitoring to evaluate and
ensure that projects are complying with affordability requirements, applicable funding priority polices, and
other requirements as determined in the program funding agreement.
SECTION 7: ADDITIONAL PROGRAM COMPONENTS
Though not required, the RDA encourages applicants to include one or more of the following program
components:
1. Landlord Training&Tenant Screening
The program may include a landlord training and property management assistance component.
2. Cost Savings Strategies
The program may include strategies to cut the overall cost to build or finance ADUs in their program
proposals such as using pre-approved floor plans, manufactured ADUs, discounted loan fees and
interest rates, etc.
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3. Technical Assistance
The program may include a development assistance component to help homeowners through this
process. RDA staff's stakeholder interviews have revealed that navigating the development process—
design, permitting, financing, construction, and property management—can be just as big of a barrier
as financing.
4. Funding Sources
The program may leverage RDA funding with these or other financing sources to increase the
program's impact:
• Olene Walker Housing Loan Fund (allocated $500k from the State Legislature in 2021 to
launch an ADU financing program)
• HUD Housing Choice Vouchers
• Private debt
• Philanthropy
• Investor equity
SECTION 8: ATTACHMENTS
Attachment A: Westside Program Target Area Map
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NOFA:Accessory Dwelling Unit Financing Program
Attachment A: Westside Program Target Area Map
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