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Proposed Resolution - 11/24/20211 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ Affordable Housing – Housing Development Loan Program (HDLP) Funding Allocations RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY APPROVING CITYWIDE AFFORDABLE HOUSING PROJECT FUNDING ALLOCATIONS. WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) was created to transact the business and exercise the powers provided for in the Utah Community Reinvestment Agency Act (the “Act”). WHEREAS, the Act provides that tax increment funds may be used for the purpose of increasing the affordable housing supply within the boundaries of Salt Lake City. WHEREAS, the RDA Board of Directors (“Board”) approved the Housing Funds Allocation Policy (“Funds Policy”), Resolution R-4-2021, which establishes policies with respect to dedicating and directing resources for the development and preservation of housing based on funding source (“Housing Funds”). WHEREAS, the Board has set aside $8,000,000 of Housing Funds for affordable housing through the RDA’s Housing Development Loan Program (“HDLP”) including $5,300,000 in HDLP funds and $2,700,000 in high opportunity funds. The allocation of funds is contingent upon an application and review process administered by the RDA to facilitate funding of qualified projects that meet the goals established by the HDLP. WHEREAS, through a Notice of Funding Availability (“NOFA”), the RDA administered a loan application and review process pursuant to the HDLP policy set forth in resolution R-7-2021 (the “HDLP Policy”) and the RDA’s Housing Funding Priorities for Fiscal Year 2021-2022 (“Funding Priorities”) that resulted in eight requests for funding totaling $11,476,375. All eight applications are for projects located outside of high opportunity area neighborhoods. WHEREAS, on November 19, 2021, the HDLP Review Committee (“Review Committee”) reviewed the HDLP applications and recommended funding allocations and preliminary terms as further described in on Exhibit A. WHEREAS, based on the Review Committee’s recommendations, RDA staff recommend that the Board approve the funding allocations and preliminary terms described in Exhibit A. WHEREAS, following approval of funding allocations and preliminary terms as set forth on Exhibit B, the RDA shall provide a conditional commitment period during which the approved Attachment F: HDLP 2021 Funding Allocation Resolution 2 applicant shall have the opportunity to obtain needed financial, legal, and regulatory approvals, as well as satisfy other conditions determined by the RDA, to finalize the loan terms. WHEREAS, pursuant to the HDLP Policy, applicants that successfully meet the conditions of the conditional commitment shall be invited to execute a Letter of Commitment to finalize the loan terms, subject to a set of conditions precedent to closing of the loan. NOW THEREFORE, BE IT RESOLVED BY THE BOARD that it approves the funding allocations and preliminary terms as further described in Exhibit B, subject to revisions that do not materially affect the rights and obligations of the RDA hereunder. For approved applicants that successfully meet the required conditions, the Board authorizes the Executive Director to negotiate and execute the conditional commitment letter, the Letter of Commitment, and the loan agreements and other relevant documents consistent with the funding allocations and terms contained on Exhibit B and incorporating such other terms and conditions as recommended by the City Attorney’s office. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this _______ day of December 2021. ________________________________ Ana Valdemoros, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Sara Montoya Date:____________________________ The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. ________________________________ Erin Mendenhall, Executive Director Attest: ________________________ City Recorder November 23, 2021 3 EXHIBIT A: RDA HDLP REVIEW COMMITTEE RECOMMENDED FUNDING ALLOCATIONS The RDA HDLP Review Committee recommends that funding be allocated to projects in order of priority ranking. *The final loan terms shall comply with the requirements, standard loan terms and conditions, interest-rate reductions, and all other details laid out within the 2021 Housing Development Loan Program (HDLP) Guidelines PROJECT/APPLICANT ADDRESS FUNDING REQUEST PRELIMINARY TERMS* FUNDING RECOMMENDATION FUNDING RANKING Silos on 5th 425 W. 500 South $2,360,000 1.5% interest, 40-year term, 40-year amortization $2,360,000 1 Giv Communities 144 S. 500 East 144 S. 500 East $775,000 1% interest, 40-year term, 40-year amortization $775,000 2 Red Gate The Nest 382 Rio Grande $1,800,000 1.5% interest, 20 year term, 40 year amortization, regular payments w/ balloon payment end of term $1,082,500 3 W3 Partners Schmidt Apartments 1265 S. 300 West $1,590,000 1% interest, 30 year term, 30 year amortization $1,082,500 3 Westates University Heights 1060 E. 100 South $2,000,000 1% interest, 35 year term, 35 year amortization $0 BCG 915 W. North Temple 915 W. North Temple $1,000,000 1% interest, 10 year term, 30 year amortization, regular payments w/ balloon payment end of term $0 JF Development Group Cleveland Court 375 E. Cleveland Street $1,451,375 1% interest only construction loan converted to soft second loan(s). RDA paid back for land upon sale of units $0 Sentry Financial ADU Financing Program CDCU Citywide $500,000 RDA Grant $0 TOTAL $11,476,375 $5,300,000 4 EXHIBIT B: HDLP RDA BOARD FUNDING ALLOCATIONS (To add after Board Meeting)