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Proposed Resolution - 1/3/2022REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ Repealing and Replacing the Housing Allocation Funds Policy RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY REPEALING AND REPLACING THE RDA HOUSING FUNDS POLICY WHEREAS, on February 9, 2021, pursuant to Resolution No. R-04-2021, the Board of Directors of the Redevelopment Agency of Salt Lake City (“Board”) passed the Housing Allocation Funds Policy (“2021 Policy”, attached to this resolution as Attachment A for reference), which established a policy dedicating and directing resources for the development and preservation of housing. WHEREAS, the 2021 Policy established four different housing funds, including the Northwest Quadrant Housing Fund, which dedicated housing funds received pursuant to Section 11- 58-601(6)(b) of the Utah Inland Port Authority Act (“Inland Port Housing Funds”) to neighborhoods adjacent to the proposed location of the Inland Port. WHEREAS, the Board now desires to repeal and replace the 2021 Policy in order to clarify the terms of the policy and replace the Northwest Quadrant Housing Fund with a new housing fund entitled the Westside Community Initiative Fund in order to better direct housing funds to the City’s westside (the redline version of the 2021 Policy is attached to this resolution as Attachment B for reference). NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, the Housing Allocation Funds Policy adopted pursuant to Resolution No. R-4-2021 is repealed in its entirety and replaced with the f ollowing: 1. Purpose. The purpose of the RDA Housing Allocation Funds Policy (“Policy”) is to establish the processes and guidelines for coordinating and allocating tax increment, tax differential, sales tax, and other revenues for the development and preservation of housing. The RDA will leverage resources and collaborate with public and private partners to incorporate a high level of public benefits within housing developments and broaden the pool of available housing funds and expertise. 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 Utah Code Title 17C Community Reinvestment Agency Act (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 City’s housing plan identifying needs, priorities and goals on a citywide basis (“Housing Plan”) and the adopted project area plans identifying housing needs, priorities, and goals on a project area basis (“Project Area Plans”). 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. Westside Community Initiative Fund ("WCI") i. Source of Funds: Inland Port Housing Funds and additional funds including revenue generated by projects. 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 and allocated for projects on the City’s westside defined as municipal boundaries west of I-15. iii. Policy Priorities: Funds shall be prioritized to: 1. Address the potential impacts from Inland Port development activities and improve opportunity indicators within the westside. 2. Develop and allow for the RDA to maintain ownership of land to ensure long-term, community serving uses. 3. Create opportunities for revenue generation that can be reinvested back into the community while balancing the incorporation of public benefits and other neighborhood development purposes. 4. Mitigate gentrification and displacement on the westside. 5. Give lower income households the opportunity to build wealth through homeownership and shared equity models of development. 6. Facilitate the implementation of transformative housing and mixed- use rental housing development projects. 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: Funds shall be utilized to promote the development and preservation of affordable and mixed-income housing. iii. Policy Priorities: Funds shall be prioritized to address the housing goals and needs of identified in the Housing Plan and Project Area Plans. 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, shared equity financing, development or site costs, 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 intends to carry out these housing efforts with a collective impact that produces measurable results. As part of the Funding Strategy, the RDA shall provide a written briefing to the Board 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 , 2022. ________________________________ 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 January 3, 2022