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Home My WebLink About02/18/2026 - Meeting Minutes MINUTES OF THE COMMUNITY REINVESTMENT AGENCY FINANCE COMMITTEE Wednesday, February 18, 2026 2:00 p.m. 451 S State Street Room 118 Salt Lake City,Utah 84111 The following Committee Members were present: Danny Walz- Reinvestment Agency, Mike Akerlow- Deputy Director of Community and Neighborhoods, Heather Royall- Deputy Director of Housing & Neighborhood Development, Amy Rowland- Reinvestment Advisory Committee, Peter Makowski- Department of Economic Development, Marina Scott- City Treasurer The following Committee Members were absent: Baxter Reecer- Reinvestment Advisory Committee, Mary Beth Thompson- Chief Finance Officer Present Agency Leadership: Cara Lindsley—Deputy Director Present Agency Staff: Tracy Tran- Senior Project Manager, Browne Sebright- Project Manager, Austin Taylor- Project Manager, Meghan Fenton-Office Facilitator II,Miranda Johnson-Finance Analyist III,Baylee White-Finance Analyist III,Eric Holmes- Senior Project Manager Present City Staff: Jennifer Huntsman—City Attorney A. ANNOUNCEMENTS Staff reported that there are no new updates or announcements at this time. B. BUSINESS ITEMS 1. Housing Development Loan Program (HDLP)Application Review for Recommendation Browne Sebright, Project Manager, starts the Housing Development Loan Application Review with a brief overview of the program, reviewing the threshold requirements and its goal to provide low-cost finance assistance to incentivize the development and preservation of affordable housing within city limits. Mr. Sebright states the program received ten (10) applications. One (1) application did not meet the threshold requirements, leaving nine (9) eligible applicants for consideration. Total funding for HDLP is $8.1 million is: $5.5 million — Housing Development Program (flexible, citywide). $2.4 million — Deeply affordable housing funds (<30% AMI), $50,000 — High Opportunity Areas funding (for projects in designated census tracts). Mr. Sebright discusses the update made to the project priority list this year,per CRA Board direction. Priority scores are used to rank applications, determine potential interest rate reductions, and reflect the level of public benefit offered. A new secondary observation score was added to assess application quality. Two additional criteria were introduced to encourage new developers and promote affordable housing in areas with limited existing supply. Applications are requesting cash flow loans,unless otherwise noted. FY2025-2026 CRA FINANCE CONEAHTTEE RECONIlVIENDED HDLP FUNDING ALLOCATIONS The CRA Finance Committee recommends that fimdigg be allocated to projects in the nrA of funding ranl®g. Alignment with Project Scoring Criteria FUNDING Alin Funding CRA Housing CRA Deeply Affordable CRA High TOTAL FUNDING PROJECTIAPPLICANT ADDRESS Priorities Score Evaluation LIHTC Awarded? REQUEST Request Development Fund Funds Opportunity Funds RECOMMENDATION 1 in Street 19 17 Yes,9% S3.500,000 $2.000.000 K.168,12 $2,168,128 1 2 1Q5ss200w 14 19 Applying. 9'6 S2,500,000 $1.000.000 <C 2 North " Pipeline Building 315E2110S 11 10 AFplying,49*Z S2.884183 $2.884.18" 5u 3 N Chicago street 9 20 Yes;4% S2.000,000 $2.000.000 $1,687,537 ._'2 463 $2,000,000 2 4 ?7 North 800Nk. 9 11 Yes,4% S2.300.000 $2,000,000 $2,000,000 $2,000,000 2 5 300 West '' 'rmts 1485S300w 9 13 Applying.4°6 S2.400.000 $1.900.000 $1,900,000 $1,900,000 3 7 TheArnelia 209w900S 7 22 Yes;4% S5.000.000 $3,000,000 $0 care west 8 55otiv700S 6 14 Applying,9% s712.866 $499,006 $0 9 1050 S Washingim 6 ■ 17 ' Applying,4% S2,000,000 $1,300,000Street TOTAL S23.297.049 $16,583,189 S5.567.557 2,480,591 SO S8.068,128 Funds Availability Total Available RecommendedFundirg FundaRemaining Legend: CRA Hous+n 0e,:1rpnentFurd $ 5,587,537 $ 5,587,537 $ Green boxes:Applicant qualifiesfor8 wants tobeconsideredtor these funds. CRA Deeply AfforcW to Furds $ 2,480,591 $ 2,480,591 $ Black box:Applicant does not qualify forthese funds. CRA High Opportunity Funds $ 50,000 $ - $ :Z X0 Tatal Potential HDLP Funds $ 8,118,128 S 8,068,128 S 50,000 Conditions of Approval: .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 Priorities met may require Board approval. .Final Terms shall comply with the requirements, standard loan terms and conditions, interest- rate reductions, and all other details laid out within the FY2025-2026 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 it 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 loan;consideration may be made for other government entity loans if required through their policies. Funds may be disbursed in a lump sum if required by senior lender(s). .For all loan awards greater than$899,999,the Sustainable Development Policy requires buildings to be designed to operate without fossil fuels,but it would not restrict the ability to have backup generators for emergence C. DISCUSSION AND COMMENTS a. Amy Rowland expressed concern that the "emerging developers" category may unintentionally reward lack of experience, potentially conflicting with scoring for developer experience. She suggested ensuring the focus remains on housing models to avoid inconsistencies in point allocation. Ms. Rowland requested clarification on the loan term criteria, specifically whether the stated term refers to amortization or the full loan term. Tracy Tran clarified that it refers to the length of the construction-to-permanent loan term (not amortization). It was confirmed that any remaining balance would be due at the end of the stated loan term. b. Ms. Rowland raised concern about the potential for vacant or inactive commercial space and the impact of the 3-point criterion given close scoring. Ms. Tran clarified that projects must include publicly accessible commercial space that is actively marketed and leased within three years. If not leased within that timeframe, the city may revoke the interest rate reduction. c. Mike Akerlow raised concern in application for Northwest Pipeline Building regarding the high cost. The developer, Grant Wise, responded that the costs are due to the project being a historic building and its conversion and rehabilitation to a residential building. d. Ms. Rowland commented that regarding the "ready to start construction" criterion, noting that while receiving 9%tax credits is a major milestone, it does not necessarily mean a project is construction ready. It was also noted that 4% of credit projects often face additional financing hurdles and the process should avoid incentivizing premature expenditures before funding is secured. e. Committee discusses prioritizing projects with secured LIHTC awards as an indicator of readiness, while acknowledging that tax credits alone do not guarantee construction readiness and that 4% and 9% credits carry different risks and timelines. Members debated balancing readiness with overall project priority scores and public benefits and considered whether to award full minimum funding to the top-ranked, credit-secured project versus distributing funds across multiple projects. Concerns were raised about committing funds to projects that have not yet secured 9%credit due to higher uncertainty and timing risk. f. The committee reviews funding allocations for affordable housing projects, focusing on prioritization and distribution of funds at the minimum request. Finalizing funding allocations for affordable housing projects, confirming Gardens at Palmer as the top priority and directing remaining funds to The Chicago, Emeril Apartments, and 300 West Apartments. g. Committee members vote to request forwarding a recommendation to the CRA Board of Directors: Motion: Committee Member, Heather Royall, moves to request forwarding a recommendation to the CRA Board of Directors Second: Committee Member, Mike Akerlow Outcome: Motion passed unanimously, (0-6) D. ADJOURNMENT There being no further business, the meeting was adjourned. Minutes Approved: Danny Walz , Finance Committee Chairperson This document, along with the digital recording, constitutes the official minutes of the Community Reinvestment Agency Finance Committee held on Wednesday, February 18, 2026