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Transmittal - 3/25/2022 SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director REDEVELOPMENT AGENCY of SALT LAKE CITY DATE: March 25, 2022 PREPARED BY: Lauren Parisi & Tracy Tran, RDA Project Managers RE: FY 23 Annual Housing Funding Priorities & FY 22 Housing Report REQUESTED ACTION: Consider adoption of a resolution to establish the FY 23 Housing Funding Priorities POLICY ITEM: Affordable Housing BUDGET IMPACTS: N/A EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City’s (“RDA”) Housing Development Loan Program (“HDLP”) policy requires that the RDA Board of Directors (“Board”) approves housing funding priorities (“Funding Priorities”) on an annual basis. These Funding Priorities guide the upcoming fiscal year’s housing activities including the requirements of the competitive affordable housing notice of funding availability (NOFA). At their March 2022 meeting, the Board reviewed and discussed potential Funding Priorities for the upcoming fiscal year – FY 23. The Board seemed to come to a consensus regarding the approval of four priorities including: • Affordable Homeownership • Family Housing • Deeply Affordable Housing • Missing Middle Housing This memo outlines the intent of each of the four Funding Priorities. The resolution under Attachment A has been included for the Board’s consideration to approve the FY 23 Funding Priorities. Additionally, this memo includes the balance of all RDA housing funds and summarizes the housing projects that were funded during FY 22 to satisfy the reporting requirements within the RDA’s Housing Funds Allocation Policy. A table summarizing all housing projects funded by the RDA since 2011 has also been included under Attachment B for informational purposes. ,,,,, ,, ":. ~\ h,; ---:..,,, .... ~ ,,,,, I rr_ \\ ...... ,,,,,,1111111'' 2 ANALYSIS: FY 23 Annual Housing Funding Priorities. The intent of each priority that will be used to guide housing decisions throughout the upcoming fiscal year have been described below. 1. Affordable Homeownership – Create opportunities for those who have historically rented in the community to build wealth and establish permanent roots through affordable homeownership. 2. Family Housing – Provide opportunities for families to enjoy the many benefits of urban living by encouraging the development of housing that is more conducive to larger household sizes. Family housing is generally defined as units with three or more bedrooms. 3. Deeply Affordable Housing – Expand the availability of units for extremely low-income households, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. Deeply affordable housing is generally defined as housing affordable to those earning 40% of the area median income (AMI) or below. 4. Missing Middle Housing – Promote an array of housing forms such as smaller apartment buildings, townhomes and accessory dwelling units to diversify the City’s housing stock and provide more affordable living options for residents. Housing Development Loan Program – Competitive NOFA. To utilize the competitive affordable housing notice of funding availability (NOFA) to promote the Funding Priorities, family housing and/or deeply affordable housing will be made thresholds in order for a project to be eligible for funding. To meet the family housing threshold, at least 10% of a project’s units must have three or more bedrooms. To meet the deeply affordable threshold, at least 10% of a project’s units must be affordable to those earning 40% AMI or below. Projects will also be eligible for a .5% interest rate reduction for meeting other RDA benchmarks as outlined in last year’s (2021) competitive affordable housing NOFA. FY 22 Housing Report. The current balance of the RDA’s four housing funds (available to lend) are as follows: • Primary Housing Fund – $649,247 • Secondary Housing Fund – $5,136,455 • Westside Community Initiative Fund – $250,000 • Housing Development Loan Fund – $22,627 The following housing projects were funded during FY 22: PROJECT ADDRESS DEVELOPMENT PARTNER FUNDING COMMITMENT PROJECT COST STATUS UNIT MIX The Silos on 5th (Phase 1 and 2) 425 West 500 South Giv Communities $2,360,000 $23,639,510 Securing financing and plans 84 units ≤ 60% AMI 22 units ≤ 40% AMI 144 South 500 East 144 South 500 East Red Gate Properties $775,000 $32,528,000 Securing financing and plans 110 units ≤ 60% AMI The Nest 382 S Rio Grande W3 Partners $1,082,500 $52,685,701 Securing financing and plans 220 units ≤ 60% AMI Schmidt Apartments 1265 South 300 West EMG Mgmt $1,082,500 $40,926,969 Securing financing and plans 149 units ≤ 60% AMI 10 units ≤ 40% AMI Total(s): $5,300,000 $149,799,171 3 NEXT STEPS: • Pursuant to the Housing Development Loan Program Policy, the Board may wish to consider the adoption of the attached resolution to approve the Funding Priorities for FY 23. • RDA staff will present proposed funding allocations to housing activities as a part of the FY 23 budget discussion. ATTACHMENTS: Attachment A – FY 23 Affordable Housing Funding Priorities Resolution Attachment B – RDA Affordable & Mixed-Income Housing Summary: 2010/11 - 2021/22 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ FY 2022-23 Affordable Housing Funding Priorities RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY ADOPTING HOUSING FUNDING PRIORITIES FOR FISCAL YEAR 2022-23 WHEREAS, the Board of Directors of the Redevelopment Agency of Salt Lake City (“Board”) adopted the Housing Funds Allocation Policy and the Housing Development Loan Program Policy, which provide that the Redevelopment Agency (“RDA”) will present to the Board an overall funding strategy and specific funding priorities (“Funding Priorities”) for how housing funds should be allocated to the housing funds and housing loan program for the upcoming fiscal year. WHEREAS, the Housing Development Loan Program Policy provides that the specific Funding Priorities shall be subject to approval by the Board. WHEREAS, the Board desires to adopt the Funding Priorities identified in this resolution to direct resources for the development of affordable housing for fiscal year 2022-23. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Redevelopment Agency of Salt Lake City hereby adopt following Funding Priorities for fiscal year 2022-23: Housing Priority Objective Deeply Affordable Housing Threshold requirement for Housing Development Loan Program applications Expand the availability of units for extremely low-income households, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. Family Housing Threshold requirement for Housing Development Loan Program applications Provide opportunities for families to enjoy the many benefits of urban living by encouraging the development of housing that is more conducive to larger household sizes. Affordable Homeownership Create opportunities for those who have historically rented in the community to build wealth and establish permanent roots through affordable homeownership. Missing Middle Housing Promote an array of housing forms to diversify the City’s housing stock and provide more affordable living options for residents. Attachment A 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 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 March 25, 2022 FUNDING TOOL PROJECT ADDRESS PROJECT AREA 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 TOTAL Liberty Village 2150 McClelland Street Sugar House $0 $1,060,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,060,000 Pamela's Place 525 South 500 West Citywide Housing $0 $0 $0 $0 $0 $0 $500,000 $0 $0 $0 $0 $0 $500,000 Capitol Homes 1749 South State Street State Street $0 $0 $0 $0 $0 $0 $0 $3,200,000 $0 $0 $0 $0 $3,200,000 Citifront Apartments 641 West North Temple North Temple $0 $0 $0 $0 $0 $0 $422,266 $0 $0 $0 $0 $0 $422,266 Exchange Building B 340 East 400 South Citywide Housing $0 $0 $0 $0 $0 $0 $0 $0 $3,000,000 $0 $0 $0 $3,000,000 255 State Street 255 State Street Central Business $0 $0 $0 $0 $0 $0 $0 $0 $2,000,000 $11,403,480 $1,151,399 $0 $14,554,879 Jefferson Mixed-Use 912/916 Jefferson Street West Temple $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,998,000 $0 $0 $1,998,000 Bookcliffs Lodge 1159 South West Temple State Street $0 $0 $0 $0 $0 $0 $0 $0 $1,000,000 $0 $0 $0 $1,000,000 SPARK!1500 West North Temple North Temple $0 $0 $0 $0 $0 $0 $0 $0 $2,500,000 $3,956,000 $0 $0 $6,456,000 Richmond Flats 2960 S Richmond St High Opportunity $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,800,000 $0 $0 $1,800,000 Central Station Apartments 549 W 200 South Depot District $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000,000 $0 $0 $1,000,000 Jackson Apartments 274 W 200 South Central Business $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000,000 $0 $0 $1,000,000 Liberty Wells 501 E 1700 South Citywide Housing $0 $0 $0 $0 $0 $0 $0 $0 $0 $150,000 $0 $0 $150,000 The Silos on 5th (Phase 1 and 2)425 West 500 South Citywide Housing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,360,000 $2,360,000 144 South 500 East 144 South 500 East Citywide Housing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $775,000 $775,000 The Nest 382 S Rio Grande Depot District $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,082,500 $1,082,500 Schmidt Apartments 1265 South 300 West State Street $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,082,500 $1,082,500 Artspace Commons 423 West 800 South Granary $21,332 $48,880 $38,843 $36,237 $38,364 $38,431 $38,813 $21,194 $100,025 $34,000 $0 $0 $416,119 Northgate Apartments 135 South 500 West Depot $853,673 $802,648 $838,207 $856,452 $696,064 $708,427 $586,103 $426,209 $521,038 $600,000 $712,922 tbd $7,601,743 West Montrose 300 West 800 South West Capitol Hill $407,912 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $407,912 Pugsley Street 571 North Pugsley St West Capitol Hill $0 $96,267 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $96,267 Arctic Court 524/528 N Arctic Court West Temple $0 $0 $0 $0 $200,000 $0 $0 $0 $0 $0 $0 $0 $200,000 9th East Lofts 440 South 900 East Citywide Housing $77,821 $556,224 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $634,045 SPARK!1500 West North Temple North Temple $0 $0 $0 $0 $0 $0 $0 $4,000,000 $0 $0 $0 $0 $4,000,000 9th East Lofts 440 South 900 East Citywide Housing $0 $0 $0 $189,625 $0 $0 $0 $0 $0 $0 $0 $0 $189,625 Macaroni Flats 244 South 500 West Depot $0 $0 $0 $1,100,000 $0 $0 $0 $0 $0 $0 $0 $0 $1,100,000 Jefferson Mixed-Use 912/916 Jefferson Street West Temple $0 $0 $0 $0 $0 $0 $0 $0 $385,000 $0 $0 $0 $385,000 Utah Paperbox 300 West 200 South Central Business $0 $0 $0 $0 $0 $0 $3,200,000 $0 $0 $0 $0 $0 $3,200,000 Utah Theater 144-156 Main Street Central Business $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,070,000 $0 $0 $2,070,000 Diamond Rail 535 W 300 North Citywide Housing $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000,000 $0 $0 $1,000,000 Colony B 228 W 1300 South State Street $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,340,000 $0 $1,340,000 HTF (TRANSFER TO HAND)Housing Trust Fund (HAND)N/A Citywide Housing $288,910 $109,000 $208,578 $124,350 $899,902 $518,393 $0 $3,000,000 $0 $0 $0 $5,149,133 $1,649,648 $2,673,019 $1,085,628 $2,306,664 $1,834,330 $1,265,251 $4,747,182 $10,647,403 $9,506,063 $25,011,480 $3,204,321 $5,300,000 $69,230,989Note Pursuant to Utah Title 17C, Community Reinvestment Agency Act, Affordable Units are defined as being affordable to household earning 80% of the area median income and below. Note: Funding allocations are approximations based on the RDA's annual budgets, annual reports, Board resolutions, and loan tracking system. Note: Table includes projects that received one or more funding allocations during FY 2010-11 through FY 2021-22 YTD (March 22, 2022). Projects were not necessarily completed during this timeframe. Note: For projects receiving a tax increment reimbursement, the actual amount of FY 2021-22 tax increment reimbursement will be determined in March of 2022, once the 2020 tax year has been equalized. Note: The total Utah Theater property discount is $4,070,000. Approximately $2,070,000 can be attributed to affordable housing. Note: The 2016-17 allocation of $422,266 for Citifront Apartments was for loan forgiveness. HDTF (APPROVED) RDA AFFORDABLE & MIXED-INCOME HOUSING: FY 2010/11 - 2021/22 YTD: FUNDING ALLOCATIONS BY YEAR Last Updated: 3/24/2022 LOANS (HDLP/NOFA & RDA LOAN PROGRAM) TI REIMBURSEMENT ACQUISITION DISPOSITION: PROPERTY DISCOUNT Attachment B Last Updated: 3/24/2022 AMOUNT TYPE 144 South 500 East 144 South 500 East Red Gate Properties 110 110 $775,000 Loan: HDLF NOFA Loan approved in December 2021. Borrower is securing financing and finalizing project plans. 255 State Street 255 State Street Brinshore Development 190 168 $14,554,879 Seller's note; loan; NOFA Under construction. Arctic Court 524/528 North Arctic Court TBD 2 1 $200,000 Property acquisition Single family residence designed and permitted. Bookcliffs Lodge 1159 South West Temple Housing Assistance Mgmt. Enterprise (HAME) 54 43 $1,000,000 NOFA The developer is assembling financing. Central Station Apartments 549 W 200 South Gardner Batt 65 52 $1,000,000 Loan Under construction. Colony B 228 West 1300 South Defi 1/Neighborhood Nonprofit Housing Corporation 140 106 $ 1,340,000 Loan Under construction. Liberty Wells 501 E 1700 South Community Development Corp of UT (CDCU) 10 10 $150,000 Loan Acquisition and predevelopment phase. Unit mix and affordability targets may change. The Nest 382 S Rio Grande W3 Partners 220 220 $ 1,082,500 Loan Loan approved in December 2021. Borrower is securing financing and finalizing project plans. Richmond Flats 2960 S Richmond St CDCU 55 55 $1,800,000 Loan Finalizing budgets and construction costs. Schmidt Apartments 1265 South 300 West Westates 159 159 $1,082,500 Loan Loan approved in December 2021. Borrower is securing financing and finalizing project plans. Silos on 5th 425 West 500 South GIV Development 106 106 $2,360,000 Loan Loan approved in December 2021. Borrower is securing financing and finalizing project plans. SPARK!1500 West North Temple Brinshore Development 200 89 $10,456,000 Property acquisition; NOFA The RDA entered into a purchase agreement with Brinshore Development/HAME for a mixed use, multi family development. Awarded 2019 4% LIHTCs. Main Street Aparments 144-156 Main Street Hines Acquisitions; 160 Main 400 40 $2,070,000 Property discount Project design and due diligence. Number of units may change as the design is finalized. West Montrose 745-765 S 300 W; 244-264 W 800 S TBD Pending Pending $407,912 Property acquisition RDA is marketing the property for development. IN PROCESS SUBTOTAL:1711 1159 $38,278,791 Various: Transfer to HAND Various Various $5,149,133 Loan Funds tranfer to HAND FY2010-11 to FY2017-18 Artspace Commons 423 West 800 South Artspace Utah 102 102 $416,119 Tax Increment Reimbursement Ongoing annual TI reimbursement obligation. Macaroni Flats 244 South 500 West Artspace Utah 13 13 $1,100,000 Property disposition (discount)Disposition complete, project closed-out. Citifront Apartments 641 West North Temple Neighborworks Salt Lake 155 94 $422,266 Loan forgiveness In October 2016, the RDA Board approved waiving a $422,266 note for the project; project closed-out. Liberty Village 2150 McClelland Street Cowboy Development 171 35 $1,060,000 Loan Loan paid in full, project closed-out. 9th East Lofts 440 South 900 East HAME 68 54 $823,670 Property acquisition; property di t Disposition complete, project closed-out. Northgate Apartments 135 South 500 West BOYER 330 159 $7,601,743 Tax Increment Reimbursement Ongoing annual TI reimbursement obligation. Pugsley Street 571 North Pugsley Street n/a 1 1 $96,267 Property acquisition Disposition complete, project closed-out. Utah Paperbox 300 West 200 South PEG Dev. /Clearwater homes 183 36 $3,200,000 Property discount Project complete. Pamela's Place 525 South 500 West HAME and GIV Development 100 100 $500,000 Loan Project complete. Exchange Building B 340 East 400 South Domain Companies and GIV Dl t 126 80 $3,000,000 Loan Project complete. Capitol Homes Apartments 1749 South State Street HAME 93 62 $3,200,000 Loan Project complete. Jefferson Mixed-Use 912/916 Jefferson Street Red Gate Properties. Big T b H ldi 3 3 $2,383,000 Property discount; loan Project complete. Jackson Apartments 274 W 200 South Hampstead Dev. Partners 80 80 $1,000,000 Loan Project complete. Diamond Rail Apartments 535 West 300 North GIV Development 80 55 $1,000,000 Loan Project complete. COMPLETED SUBTOTAL:1505 874 $30,952,198 TOTAL:3,216 2,033 $69,230,989 RDA AFFORDABLE & MIXED-INCOME HOUSING: FY 2010/11 - 2021/22 YTD: FUNDING ALLOCATIONS BY PROJECT PROJECT ADDRESS DEVELOPMENT PARTNER RESIDENTIAL UNITS RDA FINANCIAL PARTICIPATION Note: Funding allocations are approximations based on the RDA's annual budgets, annual reports, Board resolutions, and loan tracking system. Only funds allocated by the RDA to a specific project are reflected. Funds allocated to the Housing Trust Fund or funds in the process of allocation are not reflected on the table. Note: Table includes projects that received one or more funding allocations during FY 2010-11 through FY 2021-22. Projects were not necessarily completed during this timeframe. Note: For projects currently in the development pipeline and not yet completed, the number of units/affordable units is subject to change as designs and financing is finalized. STATUS TOTAL/AFFORDABLE IN PROCESSCOMPLETEDNote Pursuant to Utah Title 17C, Community Reinvestment Agency Act, Affordable Units are defined as being affordable to household earning 80% of the area median income and below.I I I I