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Council Provided Information - 1/18/20221 BOARD STAFF REPORT THE REDEVELOPMENT AGENCY of SALT LAKE CITY TO:RDA Board Members FROM: Allison Rowland Budget & Policy Analyst DATE:January 18, 2022 RE: RESOLUTION: REPEALING AND REPLACING THE RDA HOUSING ALLOCATION FUNDS POLICY ISSUE AT-A-GLANCE The RDA Housing Allocation Funds Policy was adopted by the Board in early 2021 as part of its multi-year process of establishing, refining, and implementing guidelines for the use of several different revenue streams. It defined four Housing Funds based on the revenue sources of each and the Board’s policy priorities for their use, along with an annual budgeting process and annual reporting requirements (see Attachment C1). RDA staff now has proposed a set of revisions, most of which relate to incorporating the Westside Community Initiative (WCI) into the Housing Allocation Funds Policy. (For additional information on the WCI, see Attachments C2 and C3) RDA Staff indicates that the Board does not need to adopt this policy at the January 18 meeting, but it can be a first step towards identifying any potential adjustments prior to adoption at the February board meeting. More specifically, the intent is as follows: 1. Simplify staff’s previous plan to set up a stand-alone WCI policy; 2. Preserve the Board’s established policy priorities and goals for the WCI; 3. Integrate the WCI into the Housing Funds Allocation Policy’s overall funding strategy and reporting structure; and 4. Allow some of the WCI’s broader goals and activities, like reporting requirements and the forthcoming Shared Equity Housing Program policy, to apply to the other three Housing Funds, as well. 5. Broaden the eligible uses of WCI funds to reflect the Board’s priority that they be used throughout the Westside. The other proposed revisions address broader aspects of the Housing Allocation Funds Policy, providing additional definitions, references, and clarifications. A summary of proposed changes can be found on pages 2 and 3 of the transmittal. Item Schedule: Briefing: January 18, 2022 Set Date: n/a Public Hearing: n/a Potential Action: January 18, 2022 Page | 2 1 9 7 5 8 The Redevelopment Advisory Committee (RAC) was briefed on these proposed revisions in their January 5, 2022, meeting. RDA staff will present any feedback from RAC during the Board’s briefing on this topic. Goal of the briefing: Discuss the proposed revisions to the Housing Funds Allocation Policy, identify any edits needed and if no edits are desired, consider adopting the Resolution entitled Repealing and Replacing the RDA Housing Funds Policy. ADDITIONAL INFORMATION 1.RDA Community Engagement. As part of its Equity Framework and Project Area Implementation Plans, RDA staff has been working on the process for increasing community engagement and stakeholder participation. 2.Next Step. RDA staff anticipates presenting a “shared equity” model of development and financing to the Board for approval as the next step to implement the Board’s priorities for the WCI. POLICY QUESTIONS 1. Board Members may wish to discuss potential options to the specific wording proposed in the first of the WCI Policy Priorities listed. As proposed, it reads: “Address potential impacts from Inland Port development activities and improve opportunity indicators within the westside.” Some options could include explicit references to equity and historical practices that have disadvantaged Westside residents. 2. The Board might wish to ask the Administration about progress in the broader efforts to establish and measure City “opportunity indicators,” since these currently are not available at a city scale or on an annual basis. 3.The Board may wish to inquire about the new RDA Data Manager position, whose role will be to establish an internal data management plan, including the metrics for housing. This information is designed to be incorporated into the Board’s annual Housing Development Funding Strategy to help inform priorities and budget decisions. 4.The Reporting Requirements include a reference to “An accounting of programs and projects funded from the Housing Funds over the last fiscal year […].” Many of the types of projects envisioned for the Housing Funds would take several years to complete, and their impacts may not be perceptible in annual data. Would the Board like to consider changes to this language to explicitly incorporate a cumulative accounting of programs and projects as well? ATTACHMENTS Attachment C1. 2021 Resolution adopting RDA Housing Allocation Funds Policy Attachment C2. Staff Report Westside Community Initiative Attachment C3. RDA Transmittal Westside Community Initiative REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ RDA Housing Allocation Funds Policy RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY ADOPTING A POLICY FOR THE ALLOCATION OF HOUSING FUNDS WITH RESPECT TO DEDICATING AND DIRECTING RESOURCES FOR THE DEVELOPMENT AND PRESERVATION OF HOUSING. WHEREAS, Salt Lake City has an adopted housing plan that identifies housing needs, priorities, and goals on a citywide basis (“Housing Plan”). WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) has adopted project area plans that identify housing needs, priorities, and goals on a project area basis (“Project Area Plans”). WHEREAS, the RDA supports the implementation of the Housing Plan and Project Area Plans through various funding allocations that are utilized for the development and preservation of housing. WHEREAS, Utah Code Title 17C Community Reinvestment Agency Act (the “CRA Act”) provides that a portion of tax increment is required to be allocated for housing and used for the purposes described in Section 17C-1-412. WHEREAS, the CRA Act provides that additional tax increment may be allocated on a discretionary basis for housing and used for the purposes described in Section 17C-1-411. WHEREAS, Utah Code Title 11-58 Utah Inland Port Authority Act (the “Inland Port Act”) provides that a portion of tax differential generated within Inland Port Authority Jurisdictional Land shall be paid to the RDA to be allocated for housing and used for the purposes described in Section 11-58-601(6)(b). WHEREAS, the Salt Lake City Council and the RDA Board of Directors (“Board”) may allocate other revenue sources, including but not limited to sales tax revenues, for the development and preservation of housing. WHEREAS, the Board desires to establish a policy with respect to dedicating and directing resources for the development and preservation of housing. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, as follows: 1.Scope. The RDA Housing Allocation Policy (“Policy”) contains the processes and guidelines for coordinating and allocating tax increment, tax differential, sales tax, and other revenues for the development and preservation of housing. 2020-5566 R-4-2021 2.RDA Housing Funds. The RDA shall establish and maintain multiple housing funds based on the fund source and separately account for the revenues, expenditures, interest, payments and repayments for each fund source (collectively the “Housing Funds”). Maintaining separate Housing Funds will allow the RDA to provide control and oversight to comply with the various statutory requirements for each funding source and to allow for the prioritization within each funding source for a specific purpose, need, or policy objective. The Housing Funds include: a.Primary Housing Fund i.Source of Funds: Tax increment required to be allocated for housing pursuant to the CRA Act. ii.Eligible Uses of Funds: Funds shall be utilized for the purposes described in Section 17C-1-412 of the CRA Act. iii.Policy Priorities: Funds shall be prioritized to address citywide housing goals and objectives as identified in the Housing Plan. b.Secondary Housing Fund i.Source of Funds: Additional tax increment that may be allocated on a discretionary basis for housing pursuant to the CRA Act. ii.Eligible Uses of Funds: Funds shall be utilized for the purposes described in Section 17C-1-411 of the CRA Act. iii.Policy Priorities: Funds shall be prioritized to address the housing goals and needs identified in Project Area Plans. c.Northwest Quadrant Housing Fund i.Source of Funds: A portion of the property tax differential collected by the Inland Port Authority to be allocated to the RDA for affordable housing. ii.Eligible Uses of Funds: Funds shall be utilized for the purposes described in Section 11-58-601(6)(b) of the Inland Port Act. iii.Policy Priorities: Funds shall be prioritized for the neighborhoods adjacent to the Inland Port Jurisdictional Land (generally defined as neighborhoods west of I-15) to 1) address and mitigate potential impacts from Inland Port development activities and 2) improve opportunity indicators within these neighborhoods. d.Housing Development Fund i.Source of Funds: Additional funds, including but not limited to sales tax revenues, that may be allocated to or obtained by the RDA for the development and preservation of housing. ii.Eligible Uses of Funds: Activities to promote the development and preservation of affordable and mixed-income housing, including costs associated with site acquisition, site remediation, capital improvements, new construction, and rehabilitation. iii.Policy Priorities: Funds shall be prioritized to address the housing goals and needs of identified in the Housing Plan. 3.Annual Budgeting Process. The following steps shall be utilized to budget Housing Funds on an annual basis: a.Funding Strategy: Prior to the annual budget process, the RDA shall annually present to the Board a Housing Development Funding Strategy (“Funding Strategy”) that includes: i.A projected amount of revenue to be allocated to the Housing Funds for the upcoming fiscal year. ii.Proposed funding allocations for housing activities (i.e. gap financing loans, property acquisition, etc.) and funding priorities for the upcoming fiscal year. Proposed funding allocations shall be targeted to address current needs, leverage available opportunities, be coordinated with other City resources, and align with the standards and priorities for the Housing Funds as established in Section 2 herein. b.Annual Budget Allocations: The Board shall consider the Funding Strategy as part of the annual budget adoption process. c.Implementation: Once budget allocations are finalized, the RDA will implement projects and programs according to applicable RDA policies and procedures. 4.Reporting Requirements. The RDA shall provide a written briefing to the Board, within 60 days of the end of each fiscal year, which contains the following information: a.The year-end balance of the Housing Funds. b.An accounting of programs and projects funded from the Housing Funds over the last fiscal year, including the following information itemized by project: i.Project address ii.Development partner iii.Amount of Housing Funds committed iv.Total project cost v.The scope and status of improvements vi.The total number of residential units with a corresponding accounting of affordability levels by area median income (AMI). Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this _______ day of ________________, 20__. ________________________________ Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Allison Parks Date:____________________________ The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. ________________________________ Erin Mendenhall, Executive Director Attest: ________________________ City Recorder December 20, 2020 9thFebruary 21 Ana Valdemoros (May 17, 2021 13:31 MDT) Erin Mendenhall (May 17, 2021 13:36 MDT) 4 Cindy Trishman (May 17, 2021 16:22 MDT) RDA Resolution R-4-2021 (Housing Allocation Funds Policy) adopted 2-9-21 Final Audit Report 2021-05-17 Created:2021-03-02 By:Kory Solorio (kory.solorio@slcgov.com) Status:Signed Transaction ID:CBJCHBCAABAAHe6z6wf-1vvCLLkAwG3dXBWbHwCPnGH3 "RDA Resolution R-4-2021 (Housing Allocation Funds Policy) ad opted 2-9-21" History Document created by Kory Solorio (kory.solorio@slcgov.com) 2021-03-02 - 9:37:19 PM GMT- IP address: 204.124.13.151 Document emailed to Ana Valdemoros (ana.valdemoros@slcgov.com) for signature 2021-03-02 - 9:40:01 PM GMT Email viewed by Ana Valdemoros (ana.valdemoros@slcgov.com) 2021-04-19 - 2:16:53 AM GMT- IP address: 136.60.130.16 Email viewed by Ana Valdemoros (ana.valdemoros@slcgov.com) 2021-05-17 - 7:30:29 PM GMT- IP address: 136.60.130.16 Document e-signed by Ana Valdemoros (ana.valdemoros@slcgov.com) Signature Date: 2021-05-17 - 7:31:05 PM GMT - Time Source: server- IP address: 136.60.130.16 Document emailed to Erin Mendenhall (erin.mendenhall@slcgov.com) for signature 2021-05-17 - 7:31:07 PM GMT Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com) 2021-05-17 - 7:36:30 PM GMT- IP address: 136.36.67.177 Document e-signed by Erin Mendenhall (erin.mendenhall@slcgov.com) Signature Date: 2021-05-17 - 7:36:45 PM GMT - Time Source: server- IP address: 136.36.67.177 Document emailed to Cindy Trishman (cindy.trishman@slcgov.com) for signature 2021-05-17 - 7:36:47 PM GMT Document e-signed by Cindy Trishman (cindy.trishman@slcgov.com) Signature Date: 2021-05-17 - 10:22:47 PM GMT - Time Source: server- IP address: 204.124.13.151 Agreement completed. 2021-05-17 - 10:22:47 PM GMT