Proposed Resolution - 1/21/20221
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _____________
Amending the Housing Development Loan Program Policy to Add Standards for the
Distribution of Emergency Gap Financing Funds and Directing Review of
Applications to the RDA Finance Committee
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT
AGENCY OF SALT LAKE CITY AMENDING THE HOUSING DEVELOPMENT
LOAN PROGRAM POLICY TO ADD STANDARDS FOR THE DISTRIBUTION OF
EMERGENCY GAP FINANCING FUNDS AND DIRECTING REVIEW OF
APPLICATIONS TO THE RDA FINANCE COMMITTEE
WHEREAS, on March 23, 2021, pursuant to Resolution No. R-7-2021, the Board
of Directors of the Redevelopment Agency of Salt Lake City (“Board”) passed the
Housing Development Loan Program (“2021 Policy, attached to this resolution as
Attachment A), which centralized the application, underwriting, and approval process
across all funding sources identified in the Housing Allocation Funds Policy, providing a
one-stop-shop for community partners to access resources for the development and
preservation of affordable housing.
WHEREAS, the Board now desires to amend the 2021 Policy to add standards for
emergency gap financing funds and direct review of applications for the RDA Finance
Committee. A redline version of the 2021 Policy is attached to this resolution as Attachment
B and a clean version of the amended 2021 Policy is attached to this resolution as
Attachment C.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY, that the Housing
Development Loan Program Policy, adopted pursuant to Resolution R-7-2021, is hereby
amended as follows:
SECTION 1. That the 2021 Policy is amended to insert a new section entitled
Emergency Gap Financing Funds. The new section shall be inserted at section 8 without
deleting any existing sections and all subsequent sections shall be renumbered sequentially.
The newly renumbered section 8 shall read as follows:
8.EMERGENCY GAP FINANCING FUNDS
If allocated by the Board in the annual Funding Strategy, emergency gap financing funds
may be available as a part of a NOFA for projects that have an unanticipated and
immediate need for financial assistance. To be eligible for emergency gap financing
funds, projects must meet the following criteria in addition to the basic eligibility
requirements set forth in Section 7:
a.Projects must be ready to break ground within 6 months of applying for the
emergency gap financing NOFA.
Attachment A: Resolution and Proposed HDLP Amendments
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b. Projects must have secured financing for at least 90% of the total project cost and
provide proof of such secured financing upon submission of the NOFA
application.
c. Projects shall submit a funding gap analysis that explains what is causing the
gap and provide supporting documents that demonstrate need for the specific
amount being requested.
SECTION 2. That the 2021 Policy is amended to replace the Review Committee with
the RDA Finance Committee. As such, the newly renumbered Section 10, Evaluation and
Approval Process, is hereby amended to read as follows:
10. EVALUATION & APPROVAL PROCESS
For each issued NOFA, the RDA shall evaluate and consider applications for approval
as follows:
a. Eligibility Review: Funding applications shall be reviewed and evaluated in
detail by RDA staff based on the requirements listed herein, specific Housing
Funds requirements, and additional criteria published in the relevant NOFA.
b. RDA Finance Committee (“Committee”): For applications that meet the basic
eligibility requirements, applications and supporting materials shall be forwarded
to the Committee. The Committee will analyze and rank applications, as
applicable, based on the policies contained herein and the criteria published in
the NOFA. The Committee shall make a recommendation to the RDA Board for
a funding allocation.
c. RDA Board of Directors: The RDA Board of Directors shall make the final
selection of projects to receive a funding allocation.
d. Funding Commitment: The project funding process shall be carried out in two
subparts as follows:
i. Conditional Commitment Period: The RDA shall issue a Conditional
Commitment letter to those applications that are selected for a funding
allocation by the RDA Board. The Conditional Commitment letter
between the RDA and the applicant shall contain the covenants, terms
and conditions upon which the RDA may provide financial assistance to
the proposed project once financial, legal, and regulatory approvals are
obtained.
ii. Firm Commitment & Loan Closing: Projects that successfully meet
conditions shall be invited to execute a Letter of Commitment that
finalizes the loan terms, subject to a set of conditions precedent to closing.
SECTION 3. That the 2021 Policy is amended to modify the references to the Review
Committee. As such, the newly renumbered Section 12, Loan Modifications, shall read as
follows:
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12. LOAN MODIFICATIONS
In the event of extenuating circumstances, the RDA may provide payment forbearance,
payment deferment, or loan write-down. Such adjustment to loan terms shall be
considered on a case-by-case basis and shall be subject to a thorough review of the
project’s financial standing and other relevant information. The process for providing
loan modifications shall be considered and authorized as follows:
a. Forbearance/Deferment: The Executive Director of the RDA may elect to
provide the Borrower a temporary forbearance or deferment of payment for up
to one (1) year. For periods of forbearance or deferment longer than one (1)
year, the Committee shall provide a recommendation that is forwarded to the
Board, who shall consider and act upon all such requests.
b. Loan Write-down: The Committee shall provide a recommendation that is
forwarded to the Board, who shall consider and act upon all such requests.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
_______ day of ________________, 2022.
________________________________
Ana Valdemoros, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Date:____________________________
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
________________________________
Erin Mendenhall, Executive Director
Attest:
________________________
City Recorder
January 21, 2022