Transmittal - 7/22/2022SALT 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
STAFF MEMO
DATE: July 22, 2022
PREPARED BY: Tracy Tran and Kate Werrett, RDA Project Managers
RE: Consideration and Adoption of a Resolution Approving Funding Allocations
for Emergency Gap Financing through the Housing Development Loan
Program.
REQUESTED ACTION: Consider approving affordable housing emergency gap funding
allocations as selected through a Notice of Funding Availability for the
Housing Development Loan Program.
POLICY ITEM: Affordable Housing – Housing Development Loan Program
BUDGET IMPACTS: $3,082,500 of RDA funds set aside for affordable housing
EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City (“RDA”) recently issued
a Notice of Funding Availability (“NOFA”) to solicit applications for approximately $3 million
available for emergency gap financing through the Housing Development Loan Program (“HDLP”) to
incentivize the development and preservation of affordable housing. These funds are available to
projects located anywhere within Salt Lake City municipal boundaries.
The HLDP is being administered pursuant to the Housing Allocation Funds Policy (“Funds Policy”),
resolution R-1-2022, and the Housing Development Loan Program Policy (“HDLP Policy”), resolution
R-2-2022. The Funds Policy establishes policies for allocating and directing resources for the
development and preservation of housing by various funding sources. Highlights of the Funds Policy
include:
•Housing Funds: The Policy establishes four housing funds based on fund source. The revenues,
expenditures, interest, and payments for each fund source shall be separately accounted for to
ensure the RDA control and oversight to comply with statutory requirements.
•Annual Budgeting Process: The policy provides that on an annual basis, the RDA shall present
for the Board’s consideration a Housing Development Funding Strategy that projects
revenues for the upcoming fiscal year and proposes funding priorities and allocations. This will
allow the RDA to be flexible to address current needs, leverage current opportunities,
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coordinate with other city resources and allow funding priorities to align with evolving plans
and policies.
The HDLP Policy provides low-cost financial assistance to incentivize the development and
preservation of affordable housing within Salt Lake City municipal boundaries. The HDLP provides a
centralized application, underwriting, and approval process regardless of the fund source. The HDLP
Policy includes:
• Funding allocations and priorities are determined on an annual basis. The funding priorities for
these funds were based on FY2021-22. However, since this NOFA was released after the Board
had approved the project priorities for FY2022-23, RDA staff updated the project
priorities/interest rate reductions to reflect the focus on these updated priorities.
• The transparent administration of funds through a Notice of Funding Availability (NOFA)
process. Revenue from various funds may be combined into a consolidated NOFA or a NOFA
may be issued for a specific funding source. NOFAs could be offered on an annual basis or
multiple times per year and can be competitive or open-ended depending on availability of
funds, priorities, and demand.
• A standardized process for approving applications and a uniform set of underwriting policies.
Pursuant to the policies, the RDA administered a transparent application process that resulted in four
(4) requests for funding totaling $3,750,000 - refer to Attachment A: Application Overview for
additional information.
The RDA has evaluated application submittals and the RDA Finance Committee (“Committee”) has
recommended specific applications for funding. This memorandum includes a summary of application
submittals and the Committee’s recommendations for the Board’s consideration and determination of
funding allocations.
ANALYSIS & ISSUES:
Below is an overview of the Emergency Gap Financing HDLP application process:
I. Application Process
Applications were solicited on an open-ended basis with a call for applications released on
June 2, 2022. A copy of the 2022 Emergency Gap Funds Guidelines + Application Handbook
can be found here.
II. Project Review
As part of the application review process, RDA staff analyzed applications according to the
HDLP Policy’s eligibility requirements and funding priorities set by the Board, which can be
found in Attachment B. The housing priorities include the ability for an applicant to receive an
interest-rate reduction if priorities/public benefits are met.
When evaluating applications, the Committee considered developer experience, the
completeness/quality of the application, the amount of requested funding per affordable unit,
unit mix, community impact, and the financial and regulatory readiness of the proposed project.
The applications were forwarded to the RDA Finance Committee for their review and
recommendation.
III. Funding Allocations, Conditional Commitment, and Loan Closing
Pursuant to the Policy, the Board will make the final determination of applications to fund.
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Subsequently, the RDA will issue a conditional commitment letter to those applications that
are selected for funding. The conditional commitment letter between the RDA and the applicant
will contain the covenants, terms and conditions upon which the RDA will provide financial
assistance to the proposed project once financial, legal, regulatory, and design approvals are
obtained. Prior to closing on a loan, RDA staff will ensure that the project is financially viable,
underwriting standards are met, and the use of public funds is necessary for the project to
succeed.
RDA STAFF REVIEW: As part of the initial application review process, RDA Staff verifies that
applications meet the threshold requirements laid out in the 2022 Emergency Gap Funds Guidelines +
Application Handbook. RDA staff has noted that three of the four applications (The Nest, 1700 South
Affordable, and 144 South) meet the threshold requirements; however, 255 S State does not meet the
Threshold Requirement of fund leveraging that limits RDA funds to 10% of the total project cost. This
overview can be found in Attachment A: Application Overview.
RDA FINANCE COMMITTEE RECOMMENDATION: On July 13, 2022, the Committee made
recommendations regarding all applications received to date. The Committee recommended Board
approval of the funding requests of the three applications which meet the Threshold Requirements
noted in the above section. For the project that does not meet the Threshold Requirements, the
Committee recommended that the financing request be funded with other sources of RDA funding
outside of the HDLP. Refer to Attachment C: RDA Finance Committee Funding Recommendation for
recommendation detail.
PREVIOUS BOARD ACTION:
• April 12, 2022: The Board adopted the Affordable Housing Funding Priorities for Fiscal Year
2022-23.
• March 8, 2022: The Board adopted revisions to the Housing Development Loan Program
Policy to direct review of applications to the RDA Finance Committee.
• February 9, 2022: The Board adopted revisions to the Housing Allocation Funds Policy.
• August 2021: The Board adopted FY21-22 Affordable Housing Funding Priorities.
• June 2021: The Board adopted the 2021-2022 budget, which set aside approximately
$2,000,000 for Emergency Gap Financing through the Housing Development Loan Program.
One of the projects that was allocated $1,082,500 in HDLP funds in December 2021 rescinded
their loan request. Those funds were rolled into this Emergency Gap Financing Notice of
Funding Availability through the HDLP.
• March 2021: The Board adopted the Housing Development Loan Program Policy.
• February 2021: The Board adopted the Housing Allocation Funds Policy.
ATTACHMENTS:
A. Application Overview
B. Project Priorities and Interest Rate Reductions
C. RDA Finance Committee Funding Recommendation
D. Project Summary Sheets
E. Map of Project Locations
F. Emergency Gap HDLP 2022 Funding Allocation Resolution
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Attachment A: Application Overview
The Nest
382 Rio grande
1700 South Affordable
230 W 1700 S
144 South
144 S 500 E
255 State Street
265 S. State St (Overall)
Current RDA Loan Request $1,000,000 $1,000,000 $1,000,000 $750,000
Total RDA Contribution (approved &
pending)$2,082,500 $1,000,000 $1,775,000 $15,304,879
Project Cost $62,841,781 $57,835,943 $35,177,365 $95,142,936
# Units 220 237 110 190
RDA Funds per Unit $9,465.91 $4,219.41 $16,136.36 $80,551.99
Current RDA Loan Request 1.59%1.73%2.84%0.79%
Overall RDA Project Participation (%)
of total project cost 3.31%1.73%5.05%16.09%
20/40
2.5% Interest
Cashflow payments
with balloon payment
at end of term
30/30
3.5% Inte rest
Cashflow Loan
40/40
1% Interest
Amortizing Loan
30/30
1.63% Interest*
Cashflow Loan
For Profit - LLC For Profit - LLC For Profit - LLC For Profit - LLC
W3 Partners Wasatch Residential
Group, LLC
Red Gate est. 1995
Valmont est. 2010
EMG est. 1985
Brinshore Development, LLC
New Construction New Construction New Construction New Construction
Gap Financing for
Construction Costs
Gap Financing for
Construction Costs
Predevelopment &
Construction Costs
Gap Financing for Construction
Costs
Deed of Trust with
Ground Lease to
Project llc
Special Warranty Deed Special Warranty Deed
(100% interest)Deed of Trust
220 (100%) @ 60% AMI 237 (100%) @ 60% AMI 110 (100%) @ 60% AMI
75 (39%) @ Market
91 (48%) @ 60% AMI
24(13%) @ <40% AMI
Studio 140
1BR 80
Studio 24
1BR 130
2BR 73
3BR 10
Studio 53
1BR 57
Market 60% <40%
Studio 12 17 3
1BR 38 42 13
2BR 20 20 4
3BR 3 9 2
4BR 2 3 2
84 96 96 Letter of Intent
Project Priorities/Interest Rate
Reductions - These were used to
calculate interest rate % above in
Proposed Loan Terms
Neighborhood Safety,
Transportation
Opportunities,
Neighborhood Impact
Neighborhood Safety
Transportation
Opportunities,
Neighborhood Impact,
Commercial Vitality,
Public Art
Transportation Opportunities,
Family Housing, Target
Populations, Neighborhood
Impact, Neighborhood Safety,
Historic Preservation/Adaptive
Reuse
*This project has existing loan with the RDA @ 1.63% interest rate. If project is approved for funding, this loan would fold into existing loan
Proposed Loan Terms
Term/Amortization
Interest
Repayment Type
Eligible Applicants:
1) For Profit,Partnersp,JV or Sole
2) Private 501c3
3) Public Housing agency, unit of govt
Development Team Experience:
1) Experience, Financial and technical cap.
2) LT viability and compliance
Financing Gap Requirement:
Eligible Project Types:
1) New Construction
2) Adaptive Reuse
3) Rehab: Substantial
Eligible Activities:
Construction Costs, Site imp and soft costs
Site Control:
Ownership, option, sale agreement or LT
Lease
Minimum Affordability:
1) 20% @ 60 AMI
2) Max Income 80%AMI)
Unit Mix
Sustainability: 1) E-Star Score > 90 (80 if
getting a building permit in 2022)
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Attachment B: Project Priorities and Interest Rate Reductions
Project priority criteria will be utilized to evaluate applications as well as provide for interest rate
reductions.
CATEGORY POLICY OBJECTIVE BENCHMARK
NOFA
RANKING
WEIGHT*
0.5%
INTEREST
RATE
REDUCTION**
1 Homeownership
Create opportunities for those
who have historically rented in
the community to build wealth
and establish permanent roots
through homeownership.
Project is a for-sale
product that will be sold
to income qualified
individuals/families.
3 X
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.
At least 10% of the total
units are 3+ bedroom
units.
3 X
3 Target
Populations
Expand the availability of units
for extremely low-income
households and special
populations, thereby providing
housing options for individuals
or families that are homeless or
at risk of homelessness.
At least 10% of the units
are set aside for
extremely low-income
households (30% AMI
or less) and/or special
populations in
partnership with a
governmental or
nonprofit entity.
3 X
4
Missing Middle
& Unique
Housing Types
Promote an array of scale of
project types to diversify the
City’s housing stock/forms and
provide more affordable living
options for residents.
Projects are either a
missing middle housing
type (i.e. townhomes,
courtyard apartments,
small-scale apartments)
or a housing type that is
not commonly built:
tiny homes, modular
homes, pre-fab homes,
accessory dwelling units
(ADUs)
3 X
5 Sustainability
Achieve green building and
energy conservation standards
to lower housing expenses,
conserve resources, and
promote resiliency.
Projects must be built
to Off-Site Net Zero or
On-Site Net Zero
standard as described in
the RDA’s Sustainable
Development Policy.
1 X***
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6 Transportation
Opportunities
Promote a multimodal
transportation network and
ensure convenient and
equitable access to a variety of
transportation options.
Projects must meet two
of the following:
• Includes a car sharing,
bike sharing, or
transit pass program
that is widely
available to
employees/ residents
• Includes a commercial
project that includes
employee shower,
locker, and bicycle
facilities
• Is located within 1/3
mile walking distance
of a TRAX station or S-
Line station
• Implements reduced
parking strategies
without negatively
impacting the
neighborhood
• Incorporates majority
of parking within a
primary structure to
minimize the need for
a surface parking lot.
1 X
7 Neighborhood
Safety
Utilize the development of
housing to reduce the number
of vacant and distressed
buildings and lots to reduce
crime and return land to a
productive use.
Projects are located
within an active RDA
project area, refer to
Attachment B: RDA
Project Area Map and
incorporate
documented Crime
Prevention through
Environmental design
(CPTED) principals.
1 X
8 Expand
Opportunity
Provide for Neighborhoods of
Opportunity by promoting the
economic diversity of the
housing stock within
neighborhoods.
Projects are located
within a High
Opportunity Area,
which is defined as an
area that provides
conditions that expand
a person’s likelihood for
social mobility as
identified through an
analysis of quality-of-
life indicators.
1 X
9 Architecture &
Urban Design
Encourage housing that is high-
quality, enduring, and that
contributes to neighborhood
Buildings shall include
an active ground floor
use, significant ground
1 X
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(Neighborhood
Impact)
context and livability through
architectural and urban design
best practices.
floor glass, durable
building materials and
engaging building
entrances as
determined by RDA
staff.
10 Commercial
Vitality
Foster a mix of land uses and
unique neighborhood business
districts that adequately meet
the local community’s needs.
Projects are mixed-use
and establish new
services, amenities, or
underrepresented
business types in the
neighborhood that the
local community
identifies as lacking and
desired.
1 X
11
Historic
Preservation
/Adaptive Reuse
Encourage the preservation
and/or reuse of buildings to
preserve the character of
neighborhoods.
Acknowledge a
neighborhood’s history
and maintain its unique
character through
preservation,
rehabilitation, or
repurposing of historic
or underutilized
structures.
1 X
12 Public Art
Promote cultural expression
and add to the experience and
value of the built environment
through art that is publicly
visible or accessible for all to
experience.
Project contributes at
least 1.5% of the RDA
contribution towards
the installation of art
onsite or towards the
RDA art fund as
outlined in the RDA Art
Policy.
1 X
*Note: NOFA Ranking Weight: Uses a number (the weight) between 1 and 3 to assess the importance of the funding priority, with 1
being of lower importance and 3 being of the highest importance.
**Note: 0.5% Interest Rate Reductions: While 12 interest rate reductions will be available, the maximum interest rate can be reduced a
maximum of 2%, thereby reducing the interest rate to a minimum of 1%. Please see Attachment B in the for applicable standard loan
terms and conditions.
***Note: Sustainability Interest Rate Reduction: As per the RDA’s Sustainable Development Policy, projects built to an Off-Site Net Zero
standard are eligible for a 1% interest rate reduction and projects built to an On-Site Net Zero standard are eligible for a 2% interest rate
reduction.
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Attachment C: RDA Finance Committee Funding Recommendation
The RDA Finance Committee recommends that HDLP funding be allocated to the first three projects and
recommends that the last project be funded with other sources of funding outside of the HDLP:
*Final loan terms shall comply with the requirements, standard loan terms and conditions, interest-rate
reductions, and all other details laid out within the 2022 Emergency Gap Financing Housing Development
Loan Program Guidelines. For projects that have received previous RDA loan commitments, the interest
rate reduction calculations may be based on guidelines/approvals from previous years and loans will be
consolidated if approved by the Board.
FUNDS AVAILABLE FY 2021-2022
Emergency Gap Funding $3,082,500
Recommended Emergency Gap HDLP Allocations $3,000,000
Funds Remaining – Emergency Gap $ 82,500
PROJECT/
APPLICANT ADDRESS PRELIMINARY
TERMS*
FUNDING
REQUEST
FUNDING
RECOMMENDATION
THROUGH HDLP
FUNDING
RECOMMENDATION
THROUGH OTHER
SOURCES
The Nest 382 Rio
Grande
2.5%, 20-year term,
40-year amortization,
cash flow payments
$1,000,000 $1,000,000
W3 Partners
1700 South Affordable 230 W 1700 S 3.5%, 30-year term,
30-year amortization,
cash flow payments
$1,000,000 $1,000,000
Wasatch Residential
Group, LLC
144 South 144 S. 500
East
1%, 40-year term, 40-
year amortization,
hard payments
$1,000,000 $1,000,000
Red Gate
255 State Street 265 S. State St 1.63%, 30-year term,
30-year amortization,
cash flow payments
$750,000 $ - $750,000
Brinshore
Development, LLC
$3,000,000 $750,000
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PROJECT NAME: The Nest
ADDRESS: 382 S Rio Grande St
DOES THE PROJECT MEET NOFA THRESHOLD REQUIREMENTS?: Yes, and this project was awarded HDLP funds in
the 2021 Competitive NOFA.
PROJECT SUMMARY:
According to developer “W3 Partners has purchased land consisting of three parcels totaling approximately 1.59 acres and
located at 358 and 382 South Rio Grande Street and 365 South 500 West in Salt Lake City, Utah.
OVERVIEW:
DEVELOPER: W3 Partners, LC
REQUEST TYPE: Construction Costs
PROJECT TYPE: New Construction
EXISTING LAND USE: Office and Vacant Land
HOUSING UNITS: 220 TOTAL
TOTAL MARKET
60 - 40%
AMI <40% AMI
Studio 140
1-Bed 80
TOTAL 220
RDA FUNDING REQUEST:
FUNDING REQUEST
% OF TOTAL PROJECT
COST
Current $1,000,000 1.6%
Total RDA
Participation $2,082,500 3.3%
TIMELINE:
Commence Construction September 2022
Complete Construction December 2024
TAX CREDITS:
Applying for Tax Credits (Y/N): Y
Tax Credits Received (Y/N): Y, 4%
SOURCES:
FUNDING SOURCES AMOUNT
Perm Loan $25,700,000 40.9%
Tax Credit Equity 28,924,151 46.0%
Deferred Developer Fee 1,000,000 1.6%
Olene Walker Loan $1,000,000 3.2%
RDA Loans $2,082,500 3.3%
Investor Equity $3,075,130 4.9%
Questar Rebate $60,000 0.1%
Rocky Mountain Power Rebate $60,000 0.1%
TOTAL SOURCES: $62,841,781 100%
USES:
FUNDING USES AMOUNT
Construction $48,400,000 77.0%
Development $5,008,988 8.0%
Reserves 1,385,860 2.2%
Dev Fee 4,328,797 6.9%
Deferred Dev Fee 1,000,000 1.6%
Financing Costs 2,377,761 3.8%
Bond Issuance Expenses 340,375 0.5%
TOTAL USES: $62,841,781 100%
PROPOSED TERMS:
Interest Rate: 2.5%
Term/Am: 20 yr term/ 40 yr Am
Details: Cashflow repayments
annually with balloon
payment in Y20. The
land will be leased to the
project llc and will be
based on cashflow.
Land lease payments are
paid prior to debt service.
Attachment D: Project Summary Sheets
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Located on Parcel 1 is an existing office building consisting of approximately 27,000 rentable square feet that is 100% leased
until 2028. Parcel 2 is adjacent to, and south of, the office building and currently has a surface parking lot that parks the office
building. Parcel 3 is vacant land and is adjacent to both parcels on their west boundary. Parcels 2 and 3 can be developed
immediately (1.08 acres), and this is the land upon which the Low-Income Housing Tax Credit (LIHTC) multi-family housing
will be built.
The LIHTC multi-family project (The Nest @ Rio Grande) will consist of six floors, with five levels of residential units totaling
220 units situated over one level of structured parking (50 stalls). Additional parking (22 stalls) will be built on the north portion
of Parcel 3 and situated behind the office building. This parking will be used by the office building during business hours
Monday through Friday and used by the tenants of the apartment building during the nights and weekends. We are
anticipating a 100% LIHTC project at 60% of the Average Median Income (AMI). We have a market study performed by
Western States Multifamily that suggests this is a great location for an affordable project, with LIHTC rents being on average
14%-29% less than the surrounding market rents.”
DEVELOPER SUMMARY:
According to the developer, “W3 Partners, LC, was founded in 2020 to continue the investment, development and
management of real estate assets that the three principals have been engaged in for many years. On a combined basis, the
three principals have been engaged in this business for over 100 years. Their previous company began as Cottonwood
Partners in 1997 and had an established record of very successfully investing over $2 billion in new development and
existing properties over its 28-year history. Founders of W3 Partners were owners of Cottonwood and/or its assets and were,
respectively, the CEO, CFO and Director of Asset Management, and Broker, Directing of Leasing and Development Officer for
Cottonwood.
The focus of W3 Partners is to invest in properties that can be significantly enhanced by development or redesign and
refurbishment. This philosophy has been successfully executed in many projects, and they include the 1 million square-foot
Cottonwood Corporate Center, the Scowcroft Office Building, the Newpark Office Buildings, and the 45-acre Forge
development. These are all in Utah and are representative of the company’s expertise and success. The capital necessary for
the these, and other projects, has been provided by wealthy individuals, private equity firms, institutional investors, banks and
insurance companies.”
SITE MAP:
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PROJECT RENDERINGS:
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PROJECT NAME: 1700 South Affordable
ADDRESS: 230 W 1700 S
DOES THE PROJECT MEET NOFA THRESHOLD REQUIREMENTS?: Yes
PROJECT SUMMARY:
According to developer “Wasatch Residential Group, LLC (“WRG”) plans to develop 3.06 acres of land at 204 West 1700
South, in Salt Lake City, Utah as a 237-unit affordable housing project. The project will consist of one five-story building with
interior corridors and elevators that will meet all pertinent zoning requirements. Construction will be wood-frame with five floors
of residential wrapped around five floors of structured parking. The property will consist of 24 studio apartments, 130 one-
bedroom units, 73 two-bedroom units, and 10 three-bedroom units. The units will be equipped with central heat/air
OVERVIEW:
DEVELOPER:
Jeff Nielson – Wasatch
Residential Group, LLC
REQUEST TYPE: Construction Costs
PROJECT TYPE: New Construction
EXISTING LAND USE:
Office/Warehouse &
Vacant Land
HOUSING UNITS: 237 TOTAL
TOTAL MARKET
60 - 40%
AMI <40% AMI
Studio 24
1-Bed 130
2-Bed 73
3-Bed 10
TOTAL 237
RDA FUNDING REQUEST:
FUNDING REQUEST
% OF TOTAL PROJECT
COST
Current $1,000,000 1.7%
TIMELINE:
Commence Construction June 2021
Complete Construction June 2023
TAX CREDITS:
Applying for Tax Credits (Y/N): Y
Tax Credits Received (Y/N): Y, 4%
SOURCES: FUNDING SOURCES AMOUNT
Equity $23,861,204 41.3%
Tax Exempt Loan $31,300,000 54.1%
Olene Walker Loan $1,000,000 1.7%
RDA Gap Funding $1,000,000 1.7%
Deferred Developer Fee $674,739 1.2%
TOTAL SOURCES: $57,835,943 100%
USES: FUNDING USES AMOUNT
Land $4,260,823 7.4%
Construction Costs $43,926,951 76.0%
FFE $474,000 0.8%
Third Party Reports $98,959 0.2%
Architect & Engineering $651,095 1.1%
Permits & Fees $410,503 0.7%
Insurance/Bonding/Taxes $425,400 0.7%
Marketing/Leasing/Operating
Reserve $924,317 1.6%
Legal/Organizational $156,307 0.3%
Finance Fees/Cost of Issuance $946,370 1.6%
Debt Service $1,205,106 2.1%
Developer Fees $4,356,112 7.5%
TOTAL USES: $57,835,943 100%
PROPOSED TERMS: Interest Rate: 3.5%
Term/Am: 30 yr term/30 yr amort
Details: Cashflow repayments
annually
Page 12
conditioning, hardwood cabinets, window coverings, and energy efficient appliances. The property will target tenants who earn
60% or less of the area median income.
There is high demand for this type of workforce affordable housing in the Salt Lake City area. On-site community amenities
will consist of pool, spa, sun deck with BBQ grills and seating, a large open courtyard, energy efficient windows, pet friendly
amenities, access for persons with disabilities, covered parking, exercise gym facility and 24-hour emergency maintenance
service.
The construction is tentatively scheduled to begin March 2021 and finish January 2023. The acquisition and construction of
1700 South Affordable Apartments is proposed to be financed with Private Activity Bonds, 4% Federal Low-Income Housing
Tax Credits, and deferred developer fee. Enterprise Community Capital is slated to provide the equity from the sale of the tax
credits and Key Bank is scheduled to provide construction/permanent debt for the project.
1700 South Affordable is ideally located near downtown Salt Lake City. Its central location in the Salt Lake valley, as well as
its proximity to many vital services that are important to residents, make the project a tremendous addition to the affordable
housing stock in the Salt Lake valley. The proximity to public transportation, along with convenient walkable access to nearby
restaurants and retail, makes this project an ideal location for workforce affordable housing.”
DEVELOPER SUMMARY:
According to the developer, “As one of the premier real estate development companies in Utah, Wasatch Residential Group
will utilize its competitive advantages to ensure maximum development cost efficiencies. As an owner / manager of over 24
apartment communities in the state of Utah, Wasatch and its affiliates are able to obtain very competitive local pricing for its
construction contracts and materials, which translates to more effective and efficient use of taxpayer dollars.”
SITE MAP:
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PROJECT RENDERINGS:
Page 14
Page 15
PROJECT NAME: 144 South
ADDRESS: 144 S. 500 East
DOES THE PROJECT MEET NOFA THRESHOLD
REQUIREMENTS?: Yes, and this project was awarded
HDLP funds in the 2021 Competitive NOFA.
PROJECT SUMMARY:
From Developer – The developer, 144 South Apartments, LLC, proposes to build the 144 South project, a 6-story (above-
grade), 110-unit apartment building on a 0.62-acre parcel located at 144 S 500 East in Salt Lake City. The project will include
a 420 square-foot cafe (or other retail) which is integrated into the entry lobby, an approximately 1,600 sf co-working business
center, plus an abundance of amenity spaces including a club house, exercise facility, pet wash, secure bike parking and
large outdoor deck. There will be 53 studio units and 57 one-bedroom units. The developer is seeking Low-Income Housing
OVERVIEW:
DEVELOPER:
Peter Corroon – 144 South
Apartments LLC
REQUEST TYPE: Emergency Gap
PROJECT TYPE: New Construction
EXISTING LAND USE:
Vacant Office
Building/House
HOUSING UNITS: 110 TOTAL
TOTAL MARKET
60 - 40%
AMI <40% AMI
Studio 53
1-Bed 57
TOTAL 110
RDA FUNDING REQUEST:
FUNDING REQUEST
% OF TOTAL PROJECT
COST
Current $1,000,000 2.8%
Total RDA
Participation $1,775,000 5.1%
TIMELINE:
Commence Construction September 2022
Complete Construction January 2025
TAX CREDITS:
Applying for Tax Credits (Y/N): Y
Tax Credits Received (Y/N): Y, 4%
SOURCES: FUNDING SOURCES AMOUNT
Senior Lender Debt $10,661,959 30.3%
Deferred Developer’s Fee $2,373,206 6.7%
Salt Lake County $1,250,000 3.6%
Olene Walker $2,817,093 8.0%
RDA Loans $1,775,000 2.3%
LIHTC Equity $16,270,107 46.3%
Energy Rebates $30,000 0.1%
TOTAL SOURCES: $35,177,365 100%
USES: FUNDING USES AMOUNT
Site Work $2,020,947 5.7%
Construction $22,860,825 65.0%
Contingency $1,219,914 3.5%
Architectural & Engineering Fees $428,500 1.2%
Profit and Overhead $4,394,460 12.5%
Interim Financing Expenses $1,478,964 4.2%
Permanent Financing Expenses $1,605,263 4.6%
Soft Costs $497,228 1.4%
Project Reserves $671,264 1.9%
Site Work $2,020,947 5.7%
TOTAL USES: $35,177,365 100%
PROPOSED TERMS: Interest Rate: 1%
Term/Amortization: 40/40
Loan Details Hard Repayments, fully
amortizing
Repayment Priority: Subordinate to Senior
Lender
Page 16
Tax Credits so that building contains 110 affordable housing units (100%) with rents for tenants at or below 60% Area Median
Income.
The building will consist of five floors of wood frame construction over a 3-level concrete parking structure with 113 parking
spaces available for tenants. The Department of Housing and Urban Development is requiring at least one-to-one parking for
each apartment in order to obtain its funding.
DEVELOPER SUMMARY:
From Developer – 144 South Apartments, LLC consists of two partners, Red Gate Properties and Valmont Investments. Red
Gate Properties was founded in 1995 by brothers Peter and Christopher Corroon. Red Gate Properties has developed,
rehabilitated and/or managed several multi-family and commercial real estate properties in Utah, including seven multi-family
properties as well as a self-storage facility, two office buildings and two warehouses. Peter Corroon has completed three
affordable tax-credit projects. More recent affordable housing projects include the Cornell Street Apartments with 146 units
and the Casa Milagros by Centro Civico Housing with 61 apartments.
Valmont Investments, LLC invests in single-family and multi-family investment properties in the Salt Lake valley.
Once completed, the property will be professionally managed on a day-to-day basis by the EMG Management which has
many years of experience with multi-family affordable housing projects.
SITE MAP:
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PROJECT RENDERINGS:
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PROJECT NAME: 255 State Street
ADDRESS: 265 S State Street
This overall development includes two LIHTC buildings – a 4%
and a 9% building. The overall development has received a total
of $14,554,879 in RDA funds up to date (not including the current
request). The application submitted was only for the 9% building,
but because all previous RDA funding requests for the project
reviewed the project as a whole, we are staying consistent by
reviewing the project as a whole. It is worth noting that based on
the details submitted, the construction cost increases are mostly
related to the rehabilitation of the Cramer House, which is the
commercial portion associated with the 9% building.
SOURCES: FUNDING SOURCES AMOUNT
Federal LIHTC Equity $34,664,058 36.4%
Perm Loan $31,980,000 33.6%
Perm Loan - Second Traunch $1,202,499 1.3%
State LIHTC Equity $2,654,000 2.8%
SLC Seller's Note $5,000,000 5.3%
RDA Loan $9,554,879 10.0%
RDA Emergency GAP Loan $750,000 0.8%
State - Olene Walker Funds - 1
(HOME)
$1,770,100 1.9%
State - Olene Walker Funds - 2
(HTF)
$2,000,000 2.1%
SL County - HOME $300,000 0.3%
SL City - HOME / HTF $755,000 0.8%
Ales Foundation $750,000 0.8%
GP Equity $200 0.0%
Rocky Mountain Power Rebate $127,300 0.1%
Deferred Developer Fee $3,000,000 3.2%
TOTAL SOURCES: $95,142,936 100.0%
USES:
FUNDING USES AMOUNT
Land Cost/Acquisition $5,000,000 5.3%
Construction $66,196,319 69.6%
Architect and Engineering $3,581,415 3.8%
Financing $5,678,393 6.0%
Legal Fees $505,364 0.5%
Reserves $2,056,338 2.2%
Other Project Costs $4,839,977 5.1%
Developer Fee $7,285,130 7.7%
TOTAL USES: $95,142,936 100.0%
PROPOSED TERMS: Interest Rate: 1.63%
Term/Am: 30 yr term/30 yr amort
Details: Cashflow repayments
OVERVIEW:
DEVELOPER:
Whitney Weller – Brinshore
Development, LLC
REQUEST TYPE: Construction Costs
PROJECT TYPE: New Construction
EXISTING LAND USE: Vacant Land
HOUSING UNITS: 190 TOTAL
TOTAL MARKET
70-80%
AMI
60 - 40%
AMI <40% AMI
Studio 5 7 17 3
1-Bed 10 28 42 13
2-Bed 5 15 20 4
3-Bed 1 2 9 2
4-Bed 1 1 3 2
TOTAL 22 53 91 24
RDA FUNDING REQUEST
FUNDING REQUEST % of Total Project Cost
Current $750,000 .8%
Total RDA
Participation $15,034,879 16.1%
TIMELINE:
Commence Construction April 2021
Complete Construction December 2022
TAX CREDITS:
Applying for Tax Credits (Y/N): Y
Tax Credits Received (Y/N): Y, 9% & 4%
Page 20
DOES THE PROJECT MEET NOFA THRESHOLD REQUIREMENTS?: No, if approved, the overall RDA housing loans for
255 S State Street project as a % of TPC would be 16%. The Housing Development Loan Program limits participation to 10%.
The RDA is reviewing alternative funding sources.
PROJECT SUMMARY:
According to developer “255 S. State Street is a prime location within downtown Salt Lake City with the opportunity to
influence significantly the economic development of the multiple planning regions it is identified with including the Central
Business District, the Broadway District overlap and the Cultural Core.
Through a Request for Qualifications, the Redevelopment Agency of Salt Lake City chose the Brinshore Development
Team to develop this exciting and critical site in downtown Salt Lake City. With its challenging history, it is of upmost
importance to the Redevelopment Agency, City Council and Mayor’s office that the redevelopment effort be thoughtful,
collaborative and timely.
The Brinshore Development team has proposed a 190 unit mixed-income mixed-use development plan to be funded
through a combined 9% Low Income Housing Tax Credit and 4% Low Income Housing Tax Credit with Tax Exempt Bonds
financing structure. The 9% component consists of 72 residential units, 27 parking spaces, the historic Cramer House
and a variety of amenities for residents. The 4% component will consist of 118 residential units with approximately
20,000 SF of commercial space and 44 parking spaces. The overall project consists of two towers connected by a
subterranean parking structure and activated paseo at street level. The smaller 8 story tower is the subject of this 9%
LIHTC application.
Of the 72 units, 50 are affordable to families between 20% and 80% of AMI with the remaining 23 units to be market rate
as described below.”
DEVELOPER SUMMARY:
According to the developer, “Brinshore Development specializes in the development of affordable and market rate housing by
blending public and private resources. Brinshore is able to develop financially successful rental and home ownership options
affordable to community residents. All of Brinshore’s developments are conceived with input and cooperation from local
community officials, community organizations, and community residents. Best efforts are put forth to provide employment
opportunities for community residents. This combination of public, private and community involvement has proven to be an
effective formula for successful residential developments.
Brinshore prides itself on its success in financing mixed income affordable rental housing using layered financing, including
low-income housing tax credits, tax-exempt bonds and a variety of funds available for these efforts. Since its first project in
1994, Brinshore has been one of the most consistently successful developers in obtaining tax credit reservations, receiving
over 90 tax credit awards around the country. Additionally, Brinshore has now obtained four tax credit reservations and two
tax-exempt bond allocations from the Utah Housing Corporation.
To enhance affordability for its residents, Brinshore has used more than 25 different subsidy programs in its developments
including CDBG and HOME funds and is always prepared to learn the rules for new sources of finance. Brinshore leverages
these scarce dollars with private funds to create much needed affordable housing in mixed income settings and to catalyze
neighborhood investment..”
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SITE MAP:
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PROJECT RENDERINGS:
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Attachment E: Map of Project Locations
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REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______________
Affordable Housing – Emergency Gap 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 Housing Development Loan Program (“HDLP”) was created to enable the
RDA to incentivize the development and preservation of affordable housing.
WHEREAS, on February 8th, 2022, pursuant to Resolution No. R-1-2022, the RDA Board of
Directors (“Board”) repealed and replaced that prior policy adopted per Resolution R-4-2021
with the updated Housing Funds Allocation Policy (“Funds Policy”), which establishes policies
with respect to dedicating and directing resources for the HDLP based on funding source
(“Housing Funds”).
WHEREAS, on March 8th, 2022, pursuant to Resolution No. R-2-2022, the Board adopted the
amended and restated Housing Development Loan Program Policy (the “HDLP Policy”) to
provide a centralized application, underwriting, and approval process for accessing the Housing
Funds, including granting the authority for review and approval of applications by the RDA
Finance Committee (“Finance Committee”).
WHEREAS, in June 2021, the Board adopted the 2021-2022 budget, which set aside
approximately $2,000,000 for Emergency Gap Financing through the HDLP. Subsequently, a
prior allocation of $1,082,500 that was awarded to an applicant became available following a
withdrawn loan request, resulting in available Emergency Gap Housing Funds totaling
$3,082,500.
WHEREAS, 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 2022
Emergency Gap Funds Guidelines + Application Handbook Threshold Requirements and 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 and the RDA’s Housing Funding
Priorities for Fiscal Year 2021-2022 and Fiscal Year 2022-2023 (“Funding Priorities”) that
Attachment F: HDLP Funding Allocation Resolution
Page 29
resulted in four requests for funding totaling $3,750,000.
WHEREAS, on July 13, 2022, the Finance Committee reviewed the HDLP applications and
recommended funding allocations and preliminary terms as described in on Exhibit A.
WHEREAS, based on the Finance Committee’s recommendations, RDA staff recommends that
the Board approve the funding allocations and preliminary terms as described in Exhibit A.
WHEREAS, following approval of funding allocations and preliminary terms as set forth in
Exhibit B, the RDA shall provide a conditional commitment period during which approved
applicants 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,
the loan agreements, and other relevant documents consistent with the funding allocations and
terms contained in 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 August 2022.
________________________________
Ana Valdemoros, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Sara Montoya, Senior City Attorney
Date:
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
July 21, 2022
Page 30
________________________________
Erin Mendenhall, Executive Director
Attest:
________________________
City Recorder
Page 31
EXHIBIT A: RDA FINANCE COMMITTEE RECOMMENDED FUNDING
ALLOCATIONS
The RDA Finance Committee recommends that HDLP funding be allocated to the first three
projects and recommends that the last project be funded with other sources of funding outside of
the HDLP.
*Final loan terms shall comply with the requirements, standard loan terms and conditions, interest-rate reductions, and all other
details laid out within the 2022 Emergency Gap Financing Housing Development Loan Program Guidelines. For projects that
have received previous RDA loan commitments, the interest rate reduction calculations may be based on guidelines/approvals
from previous years and loans will be consolidated if approved by the Board.
PROJECT/
APPLICANT ADDRESS PRELIMINARY
TERMS*
FUNDING
REQUEST
FUNDING
RECOMMENDATION
THROUGH HDLP
FUNDING
RECOMMENDATION
THROUGH OTHER
SOURCES
The Nest 382 Rio
Grande
2.5%, 20-year term,
40-year amortization,
cash flow
repayments.
$1,000,000 $1,000,000
W3 Partners
1700 South Affordable 230 W 1700 S 3.5%, 30-year term,
30-year amortization,
cash flow
repayments.
$1,000,000 $1,000,000
Wasatch Residential
Group, LLC
144 South 144 S. 500
East
1%, 40-year term, 40-
year amortization,
hard repayments.
$1,000,000 $1,000,000
Red Gate
255 State Street 265 S. State St 1.63%, 30-year term,
30-year amortization,
cashflow repayments.
$750,000 $ - $750,000
Brinshore
Development, LLC
$3,000,000 $750,000
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EXHIBIT B: HDLP RDA BOARD FUNDING ALLOCATIONS
(To add after Board Meeting)
Page 33