Proposed Resolution - 8/9/2022REDEVELOPMENT 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Directors (“Board”) repealed and replaced that prior policy adopted per Resolution R-4-2021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withdrawn loan request, resulting in available Emergency Gap Housing Funds totaling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
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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