Council Provided Information - 8/9/2022CITY COUNCIL OF SALT LAKE CITY
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BOARD STAFF REPORT
THE REDEVELOPMENT AGENCY of SALT LAKE CITY
TO:RDA Board Members
FROM:Allison Rowland
Budget & Policy Analyst
DATE:August 9, 2022
RE: RESOLUTION: HOUSING DEVELOPMENT LOAN PROGRAM - EMERGENCY GAP
FUNDING ALLOCATIONS
ISSUE-AT-A-GLANCE
The RDA Finance Committee has recommended that Housing Development Loan Program (HDLP) funding be
allocated to three of the four projects that applied for Emergency Gap Funding. A total of $3,082,500 was
offered in a Notice of Funding Availability (NOFA) published in June 2022. The RDA Finance Committee
reviewed the four applications and recommends using $3.0 million of this amount on projects known as The
Nest, 1700 South Affordable, and 144 South (see section A. below for summary information on each). The fourth
application, from 255 State, withdrew its application after the RDA transmittal was received.
The primary source of funding for this NOFA was a $2 million RDA Board allocation for Fiscal Year 2022
(FY22) to assist affordable housing projects that are already under construction and are facing substantial costs
increases. An additional $1,082,500 in HDLP funds were added to the NOFA pool from a project that rescinded
a loan approved in 2021. All applicants also sought additional funding from their other funders.
Like much other RDA assistance, the Emergency Gap Funding support is provided in the form of low-interest
loans. The recommended projects must meet the parameters for other types of HDLP funding, including interest
rate reductions for certain Board priorities. Because the funds in the NOFA were allocated in 2121, they were not
required to meet the thresholds of deep affordability and larger unit size that the Board adopted in 2022. The
next NOFA will include these thresholds as a condition of eligibility.
Goal of the briefing: Discuss and consider adopting a resolution approving $3.0 million in affordable
housing Emergency Gap Funding allocations, as recommended by the RDA Finance Committee.
Item Schedule:
Briefing: August 9, 2022
Set Date: N/A
Public Hearing: N/A
Potential Action: August 9, 2022
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BACKGROUND AND ADDITIONAL INFORMATION
A. Application Summary. The three applications for the 2020 Emergency Gap NOFA, along with the RDA
Finance Committee Recommendations, are summarized below.
RDA Finance Committee
Recommendations
Number of
Units and
Levels of
Affordability
Total
Project
Cost
(millions)
Previous
RDA
Funding
for
Project
(millions)
Emergency
Gap
Funding
Interest
Rate
Term /
Amortization
(years)
The Nest
382 Rio Grande
220 at 60% AMI $62.8 M $1.1 M $1 million 2.5%20/40
1700 South
Affordable
230 W 1700 S
237 at 60% AMI $57.8 M none $1 million 3.5%30/30
144 South
144 S 500 E
110 at 60% AMI $35.2 M $0.8 M $1 million 1.0%40/40
B. Board Prerogatives. After adopting the annual Housing Development Funding Strategy, the RDA Board
retains the option to make policy changes among adopted housing activities or budget allocations at any
time during the year. In addition, the Board reviews and considers each specific loan project proposal before
it may be approved for funding. The Board also can suspend any adopted policies under special
circumstances for a specific project proposal.
C. RDA Finance Committee. RDA policy designates Finance Committee membership as follows:
1. Two Redevelopment Advisory Committee members;
2. RDA Director (or designee);
3. Director of Economic Development (or designee);
4. Director of Finance (or designee);
5. Director of CAN (or designee); and
6. Director of Housing Stability (or designee).
POLICY QUESTIONS
A. Level of Affordability and Unit Sizes. The projects that applied for Emergency Gap Funding would
offer all 567 of the units built at 60% AMI. Attachment A of the transmittal indicates also that 217 of the
total 567 units (38%) are studio apartments. While these projects are likely too far along for significant
changes, the Board has indicated its preference for housing developments that offer deep affordability (40%
AMI and below) and larger unit sizes (2- and 3-bedrooms). To help inform future negotiations with
developers, the Board may wish to consider asking the applicants whether additional
interest rate reductions or other incentives would have been sufficient to prompt them to
include more deeply affordable or larger units.
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B. Building Design and Streetscapes. Previous Boards at times expressed concern about the design and
scale of large new multi-family housing developments, including the pedestrian experience. This was
particularly the case for development that received some City funding. Would the Board like to discuss
options for how the urgent need for affordable housing might be balanced with preferences
for design that encourages walkability?
C. Equity in Project Selection Process. Some Board Members have expressed interest in expanding
opportunities for RDA funding to a wider variety of developers. In this context, the Board may wish
to discuss how developer experience is evaluated in the Emergency Gap Funding context.
The Board also may wish to ask RDA staff how each review standard is weighted, whether
any standard results in automatic rejection of an application, and other questions.
Alternatively, the Board could request RDA staff conduct a deeper analysis of these issues
and report back to them in a future meeting.
RDA staff has provided additional information on the process for the purposes of this discussion:
1.The following project review standards in the 2021 NOFA guidelines and application handbook are
used by RDA staff to help form their recommendations.
a. Alignment with project priorities;
b. Content and quality of the project narrative;
c. Qualifications and experience of the applicant and development team;
d. Content, effectiveness, and appropriateness of the budget, sources and uses, operating
proforma, and related assumptions;
e. The readiness of the project to proceed to construction;
f. Any and all content regarding building and site design;
2.A Threshold Requirement of the HDLP Program is described in section 3.2 of the 2022 Emergency
Gap Funds Guidelines + Application Handbook [Attachment C1 and C2]. The section states:
Applicants and their development teams must have: 1) the experience, financial expertise, and
technical capacity to deliver a project that meets all the requirements contained herein; and 2) the
demonstrated ability to maintain long-term viability and compliance of affordable housing
projects. The application form (attached) includes a section to describe the Development Team.
This section requires applicants to list the Firm/Organization, Contact Person, and Years
Experience.
3.The RDA’s overall goal of the HDLP is to provide low-cost financial assistance to incentivize the
development and preservation of affordable housing throughout the City and the developer
experience requirement ensures affordable housing development can be successfully carried out.
Development Teams are often comprised of numerous firms/organizations with various roles (i.e.,
Architect, Contractor, Construction Manager, Legal, Property Manager, Lenders/Investors,
etc.). The development team size and members are flexible which creates opportunities for a
diverse mix of experience and backgrounds to participate in RDA funded projects. The overall
expertise of the Development Team rather than specific individuals is considered, which further
allows for varying levels of expertise to participate.
4.We [RDA staff] are committed to equity in marketing these opportunities to professionals and
leaders of diverse backgrounds and cast a wide net inviting submissions through social media
posts, e-blasts, and industry website banner ads. If Board members know of additional smaller,
newer, and/or BIPOC developers and/or contractors that they could share with us, we would be
Page | 4
happy to meet with them and will add them to our developer outreach list for future
opportunities.
O p e n u n t i l e x p e n d e d
A P P L I C A T I O N D E A D L I N E
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R E L E A S E D A T E
NOTICE OF FUNDING AVAILABILITY
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2 0 2 2 EM E R G EN C Y G A P F UN D S
G U I D E L I N E S + A P P L I C A T I O N HAN D B O O K
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
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TABLE OF CONTENTS _____
SECTION 1: INTRODUCTION & OVERVIEW .................................................................................................. 2
SECTION 2: GENERAL PROVISIONS ............................................................................................................. 4
SECTION 3: THRESHOLD REQUIREMENTS ................................................................................................... 5
SECTION 4: APPLICATION REQUIREMENTS ................................................................................................. 7
SECTION 5: APPLICATION, REVIEW & APPROVAL PROCESS ........................................................................ 8
SECTION 6: PROJECT PRIORITIES & INTEREST RATE REDUCTIONS ...........................................................10
SECTION 7: COMPLIANCE .......................................................................................................................... 13
SECTION 8: ATTACHMENTS ....................................................................................................................... 13
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
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SECTION 1: INTRODUCTION & OVERVIEW
1.1 Introduction
In releasing this Notice of Funding Availability (NOFA) for Emergency Gap Funding through the Housing
Development Loan Program (HDLP), the goal of the Redevelopment Agency of Salt Lake City (“RDA”) is to
provide low-cost financial assistance to incentivize the development and preservation of affordable housing
within the city limits where unanticipated gaps in financing have occurred and immediate funding is critical
for a project to break ground in a timely manner. Qualifying projects must be able to close on an RDA loan
within 90 days of RDA Board approval. Projects without an evident and immediate need for funding do not
qualify for this program, but may be eligible for other RDA programs. Qualified housing developers must
demonstrate their ability to: 1) construct and/or rehabilitate affordable housing developments, 2) align
their projects with identified affordable housing priorities, 3) close within 90 days of RDA Board approval,
and 4) maintain/manage affordable housing developments. Housing developers that can demonstrate
these abilities are encouraged to submit applications.
1.2 Intent
It is intended that funds allocated through the HDLP will provide for an unanticipated emergency GAP in
financing for the following types of projects:
a) Provide a mix of affordable housing, serving a range of households and income levels, consistent
with income limits and affordability requirements for each fund source, to promote housing
opportunity and choice throughout the City for household sizes ranging from single persons to
families.
b) Foster a mix of household incomes in projects and neighborhoods and to disperse affordable
housing projects throughout the City to encourage a balance of incomes in all neighborhoods and
communities.
c) Promote equity and anti-displacement efforts through the development and preservation of
affordable housing in low-income neighborhoods where underserved groups have historic ties,
including neighborhoods where low-income individuals and families are at high risk of
displacement.
d) Contribute to the development of sustainable, walkable neighborhoods to expand housing choice
near transportation, services, and economic opportunity.
e) Support an array of scale of project types, including detached housing, accessory dwelling units,
rowhouses, and small to large scale multifamily buildings, that contribute to neighborhood context
and livability.
f) Incorporate green-building elements and energy efficiency to lower housing expenses, conserve
resources, and promote resiliency.
g) Leverage private and non-city funding sources to ensure the greatest number of quality affordable
housing units are preserved or produced.
h) Be provided as loans that are repaid over time and not grants, forgivable loans, or indefinitely
deferred loans.
1.3 Emergency Gap Housing Development Loan Program Questions
i. Questions: Prospective applicants may submit clarification questions to the RDA about the
Emergency Gap HDLP via email to Tracy Tran, at: tracy.tran@slcgov.com. Please check the RDA’s
website, www.slcrda.com, regularly for any updates, corrections, or posted questions and answers
regarding the HDLP.
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1.4 Submittal Deadline
The application deadline is as follows:
Funding Type
Emergency Gap Funds Open on ongoing basis until expended*
* Emergency Gap Funds will be available until expended or until June 2023, whichever is sooner. Applications for these funds
will be reviewed and accepted on a first come, first serve basis. Inquiries may be made to RDA staff for available fund
balance.
Refer to Section 4 for additional detail on the requirements and the process for submitting an application.
1.5 Submittal Requirements
To be considered complete, application submittals must meet the application requirements as outlined in
Section 4. Incomplete applications will not be accepted.
1.6 Funding Decision
After an initial review to ensure applications are complete and meet threshold requirements, the process
for awarding funding shall be carried out in two parts: 1) the Project Review Body shall evaluate applications
and provide funding recommendations, and 2) the RDA Board of Directors shall consider funding
recommendations and select projects for funding awards subject to the negotiation of final terms.
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SECTION 2: GENERAL PROVISIONS
2.1 Funds Availability
Through the HDLP the RDA intends to solicit, evaluate, select, and fund the construction and/or
rehabilitation of affordable housing projects. The funds aim to increase the availability and accessibility of
affordable housing in Salt Lake City.
For FY2022, the RDA Board of Directors has set aside approximately $3 million for emergency gap funding.
Emergency Gap funding is allocated through a transparent public process to be administered by the RDA,
for which any developer/community group may apply with a project that meets affordable housing goals.
FUNDS CATEGORY AMOUNT*
Emergency Gap $3,082,500
*Note: Amounts are approximate. Additional funds may become available after this document has been published.
2.2 Standard Loan Terms and Conditions
The purpose of this funding is to expand housing opportunities for low- and moderate-income households
where unanticipated emergency gaps in financing are present. This shall be accomplished by reducing a
project’s financing cost from unforeseen expenses to reduce housing costs over an extended period. Flexibility
shall be provided to accommodate a wide range of projects that may be dependent upon myriad of
underwriting standards by outside lenders. Please see Attachment B for the standard loan terms and
conditions for 1) Gap Financing: Rental Construction to Permanent, and 2) Gap Financing: Homeownership
Construction.
2.3 Funding Commitment
Successful applicants under the HDLP will receive a conditional commitment of funding and must close on
their loan within 90 days of RDA Board approval. The commitment will expire if the project has not
obtained all required financial, legal, and regulatory approvals necessary for loan closing within the
established funding commitment period.
2.4 Relocation
Displacement is strongly discouraged. However, if it is necessary and unavoidable, projects awarded
funding must submit a relocation plan that complies with all Federal, State and local real property
acquisition and relocation requirements, and, at a minimum, must comply with Salt Lake City’s Residential
Demolition Provisions, City Code 18.64.050, and the Federal Uniform Relocation Assistance and Real
Property Acquisition Act.
2.5 Design Requirements
Projects shall align with applicable design guidelines and comply with all applicable Salt Lake City building
codes and ordinances.
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
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SECTION 3: THRESHOLD REQUIREMENTS ______
3.1 Eligible Applicants
Applications will be accepted from:
i. For-profit corporations, partnerships, joint ventures, or sole proprietors.
ii. Private incorporated non-profit agencies with IRS 501(c) designation.
iii. Public housing agencies or units of local government.
3.2 Development Team Experience
Applicants and their development teams must have 1) the experience, financial expertise, and technical
capacity to deliver a project that meets all the requirements contained herein, and 2) the demonstrated
ability to maintain long-term viability and compliance of affordable housing projects.
3.3 Eligible Project Types
Eligible project types include the following:
i. New Construction: Construction of new housing.
ii. Adaptive Reuse: Conversion or adaptive reuse of existing non-residential structures for housing.
iii. Rehabilitation: Substantial rehabilitation of existing substandard housing units that do not meet
the City’s minimum housing or building code.
3.4 Eligible Activities
Eligible activities include hard construction costs, site improvements, and related soft costs.
3.5 Site Control
Evidence of site/location control must be demonstrated through ownership, option, sale agreement, or
long-term lease.
3.6 Minimum Affordability
For rental units, a minimum of 20% of the project’s total residential units must be affordable for the
proposed development to be eligible for financing. For a unit to be considered affordable, its rent must be
restricted as affordable to households earning 60% of the area median income (“AMI”) and below as per
guidelines established by the U.S. Department of Housing and Urban Development (“HUD”). RDA funding
shall be sized in proportion to the affordable component, taking into consideration the AMI structure and
number of units within the project.
Affordable homeownership developments should be restricted to households earning 80% AMI and below
as per guidelines established by the HUD. The number of affordable units and level of affordability for
affordable homeownership developments will be evaluated on a case-by-case basis.
3.7 RDA Guiding Framework Requirements
Projects seeking Emergency Gap HDLP funds shall comply with the RDA’s strategic operational document,
the Guiding Framework, which outlines the mission, values, thresholds for financing, and Livability
Benchmarks expected of RDA financially-supported projects. Please see Attachment E.
3.8 Sustainability
Per the RDA’s Sustainable Development Policy, all new construction projects receiving any RDA funds (and
rehabilitation projects receiving more than $200,000) must meet all the following requirements:
• Designed to earn an Energy Star score of 90
• 100% electric building operation (no on-site fossil fuel combustion)
• Participation in SLC’s Energy Benchmarking Program: Annual operational data must be submitted
to Salt Lake City’s Elevate Buildings Program
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
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Projects must submit a Statement of Energy Design Intent (“SEDI”) from ENERGY STAR to verify required
Score of 90+ and corresponding EUI target with application submission. If a project’s energy use cannot yet
be modeled at the time of application, the SEDI will be required prior to loan closing. Please see the
following link for more information:
https://www.energystar.gov/buildings/resources_topic/commercial_new_construction/achieve_designed
_earn_energy_star
All projects receiving a building permit after January 1, 2023, are required to meet the RDA’s Sustainable
Development Policy requirements.
3.9 Financing Gap
HDLP Funds are limited to 10% or less of the project’s financing sources. Projects shall demonstrate RDA
funding is necessary for the project to succeed and that the request is reasonable. Applicants must
maximize private market funding sources and obtain commercial loans sized with the highest loan-to-value
and lowest debt service to minimize the HDLP request.
3.10 Policies and Master Plans
Projects shall align with the City’s Housing Plan, Project Area Plans, City’s Master Plans, and other applicable
adopted plans and policies.
3.11 Closing Requirement
If selected and approved, the Applicant must be able to close the loan within 90 days of RDA Board approval.
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
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SECTION 4: APPLICATION REQUIREMENTS
4.1 Application Components
To be considered complete, application submittals must include all of the following components:
SECTION DESCRIPTION
1
Application
Form (form
provided)
The Application Form, including the following information:
A. Project summary.
B. Applicant summary.
C. Development team overview.
D. Housing and land use overview.
E. Property overview.
F. Project priorities.
G. Project description.
H. Applicant experience.
I. Financials.
J. Applicant certification.
K. Additional applicant attachments (if applicable).
2 Other
Attachments
Supporting documents, including the following:
A. Preliminary project drawings, including a conceptual site plan (including the
context of the area), elevation drawings, and architectural renderings (if
available).
B. Proof of site control
C. ENERGY STAR Statement of Design Intent (SEDI)
D. Sources and uses.
E. Financing term sheets (if available).
F. Operating proforma.
G. Project timeline, including significant project milestones.
H. Notes from a Salt Lake City Development Review Team (DRT) meeting (if
available).
4.2 Completeness
Submissions lacking one or more of the requested documents may be considered incomplete or irregular.
The RDA reserves the right to reject any incomplete or irregular submission and reserves the right to waive
any non-material irregularity in submissions. The RDA reserves the right to reject any and all applications.
4.3 Submittal Process
Applications shall be submitted electronically via email to:
Tracy Tran, Project Manager, tracy.tran@slcgov.com.
Application documents must be clearly labeled to correspond with the Application Component Sections
outlined in section 4.1.
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
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SECTION 5: APPLICATION, REVIEW, & APPROVAL PROCESS ______
The Application, Review & Approval Process shall be carried out in five phases, as follows. The deadlines and specific
dates listed below are for the competitive HDLP applications for projects not within a high opportunity area.
PHASE DATE/TIME MILESTONE
1 Application
Thursday, June 2, 2022 • Emergency Gap NOFA released.
• Applicants can submit an application
as long as funds are available and have
not been completely expended or until
June 2023, whichever is occurs first.
2 Threshold Review After receipt of a complete
application.
• Threshold requirement review.
Applications that meet Threshold
Requirements proceed to Phase 3.
3 Project Evaluation
and Review
After an application complies
with the Phase 2 requirements.
• Applications that are forwarded from
Phase 2 will be further evaluated.
• RDA Finance Committee to provide
project funding recommendation.
4 Project Selection
Meeting of the RDA Board of
Directors (typically 4-5 weeks
after Phase 2 is complete,
depending on RDA Finance
Committee meeting schedule)
• RDA Board of Directors Review and
Project Selection
5 Funding Award Varies by project. • Conditional Commitment
• Firm Commitment and Loan Closing
The five phases of the application process are described below.
1. Application: An application process shall be administered by the RDA.
2. Threshold Review: The RDA will conduct a review to determine whether applications conform to the
Threshold Requirements outlined in Section 3. Applications must meet every one of these requirements or
they will be deemed ineligible and will not be reviewed further. Applications that meet all of the Threshold
Requirements will advance to Phase 3, Project Evaluation and Review.
3. Project Evaluation and Review: Applications that meet all Threshold Requirements will be evaluated based
on the following:
i. Alignment with project priorities.
ii. Content and quality of the project narrative.
iii. Qualifications and experience of the applicant and development team.
iv. Content, effectiveness, and appropriateness of the budget, sources and uses, operating proforma,
and related assumptions.
v. The readiness of the project to proceed to construction.
vi. Ability to close loan within 90 days of RDA Board approval.
vii. Any and all content regarding building and site design.
Once applications have been evaluated and ranked, they will be forwarded to the RDA Finance Committee.
Projects that the RDA Finance Committee finds to score more competitively than other proposed projects
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
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of similar type will be recommended to the RDA Board of Directors for a conditional commitment for
funding.
4. Project Selection: The RDA Board of Directors will make the final selection of projects identified for a
conditional commitment of funding.
5. Funding Award: The funding award process will be carried out in two subparts as follows:
i. Conditional Commitment Period: The RDA will issue a Conditional Commitment letter to those
applications that are selected for funding by the RDA Board of Directors. The Conditional
Commitment letter between the RDA and the applicant will contain the general covenants, terms
and conditions upon which the RDA will provide financial assistance for the proposed project once
financial, legal, regulatory, and design approvals are obtained. During the Conditional
Commitment Period, terms and conditions may be refined based on updated project information
(i.e. project costs, terms of other financing, etc.). The length of the Conditional Commitment Period
will be 90 days or less depending on the project’s scope and timeline.
ii. Firm Commitment & Loan Closing: Projects that successfully meet conditions will be invited to
execute a Letter of Commitment that finalizes the loan terms, subject to a set of conditions
precedent to closing.
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SECTION 6: PROJECT PRIORITIES & 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***
6 Transportation
Opportunities
Promote a multimodal
transportation network and
ensure convenient and
Projects must meet
two of the following: 1 X
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
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equitable access to a variety of
transportation options.
• 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.
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
1 X
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
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indicators. Refer to
Attachment A: High
Opportunity Area
Map and Table.
9 Architecture &
Urban Design
Encourage housing that is high-
quality, enduring, and that
contributes to neighborhood
context and livability through
architectural and urban design
best practices.
Buildings shall
include an active
ground floor use,
significant ground
floor glass, durable
building materials
and engaging
building entrances as
determined by RDA
staff.
1 X
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 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.
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
REDEVELOPMENT AGENCY OF SALT LAKE CITY 13
SECTION 7: COMPLIANCE ______
Each applicant must certify that the project is, and will be, in compliance with all applicable federal and local rules
and regulations. Projects will be subject to ongoing monitoring to evaluate and ensure that projects comply with
affordability requirements, applicable funding priority polices, and other requirements as determined in the loan
agreement.
SECTION 8: ATTACHMENTS
Attachment A: High Opportunity Area Map and Table
Attachment B: Standard Loan Terms and Conditions
Attachment C: RDA Project Area Map
Attachment D: Maximum Rents & Incomes
Attachment E: RDA Guiding Framework
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
REDEVELOPMENT AGENCY OF SALT LAKE CITY 14
Attachment A: High Opportunity Area Map and Table
High opportunity areas are geographical locations within the city that provide conditions that expand a person’s
likelihood for social mobility. These areas have been identified through an analysis of quality-of-life indicators,
homeownership rate, poverty, cost-burdened households, educational proficiency, unemployment rate, and labor
force participation. With these multiple indicators, a single composite, or standardized, score is calculated for each
census tract. Scores may range from 1 to 10, with 1 indicating low opportunity and 10 indicating high opportunity.
A census tract with a standardized score above that of the citywide average shall be designated as an Area of
Opportunity.
A census tract with a standardized opportunity index of 6 or higher shall be designated as an Area of Opportunity.
HIGH OPPORTUNITY AREA MAP
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
REDEVELOPMENT AGENCY OF SALT LAKE CITY 15
HIGH OPPORTUNITY AREA TABLE
Tract Opportunity Index Tract
Opportunity
Index
100100 5.0 103000 4.6
100200 5.5 103100 3.3
100306 3.5 103200 4.8
100307 3.5 103300 5.1
100308 3.1 103400 5.7
100500 3.7 103500 6.6
100600 3.3 103600 8.2
100700 4.6 103700 8.2
100800 5.3 103800 6.2
101000 5.7 103900 7.5
101101 6.4 104000 7.9
101102 6.2 104100 7.1
101200 6.8 104200 7.5
101400 4.6 104300 6.2
101500 4.8 104400 7.5
101600 5.3 104700 6.6
101700 4.8 104800 6.4
101800 6.2 104900 6.6
101900 4.8 110103 8.2
102000 3.7 110200 7.9
102100 3.7 110300 7.5
102300 2.8 111400 2.6
102500 3.7 111802 3.3
102600 2.4 113906 2.4
102701 3.1 114000 NA
102702 2.6 114100 NA
102801 2.4 114500 NA
102802 1.9 114700 NA
102900 1.9 114800 NA
Source: Opportunity Index derived by Kem Gardner Policy Institute,
University of Utah from HUD Affirmatively Furthering Fair Housing database
and HUD Comprehensive Housing Affordability Strategy, U.S. Census
Bureau, and Utah State Office of Education.
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
REDEVELOPMENT AGENCY OF SALT LAKE CITY 16
Attachment B: Standard Loan Terms and Conditions
Standard loan terms and conditions for I) Gap Financing: Rental Construction to Permanent and II) Gap Financing:
Homeownership Construction are as follows:
I. GAP FINANCING: RENTAL CONSTRUCTION TO PERMANENT
Limits to Assistance:
• Maximize Other Sources: Applicants must demonstrate that they have maximized other available
financing sources thereby limiting HDLP funding to the lowest amount necessary to close the funding
gap and assure project feasibility.
• Loan to Value: A loan-to-value limit is not applicable. However, land and project costs shall be
reasonable as compared similar projects in size, scope, and location.
• Debt Service Coverage Ratio (DSCR): Repayment terms for amortizing HDLP loans will be calculated as
described herein and will be based on a DSCR of 1.10 inclusive of the RDA’s loan and all senior debt.
• Cash Flow: For loans that qualify for a cash flow repayment structure, pursuant to the standards
contained herein, applicants must demonstrate that the HDLP loan can be repaid within its scheduled
term or at the end of the term.
• Proportion to Affordability: Funding shall be sized in proportion to the affordable component, taking
into consideration the AMI structure and number of units in the project.
Repayment:
• Depending on the project’s capacity for repayment, loans may be repaid as an amortized loan, a cash
flow loan based on available cash flow, or a combination of both types of loan.
o Amortized Loan: The RDA will determine what portion of its loan can be paid on an amortized
schedule with required payments using the DSCR standards contained herein and the DSCR
requirements of the senior lender.
o Cash Flow Loan: If full amortization is not feasible due to limited cash flow, funds shall be
repaid from an agreed upon percentage split of surplus cash flow. Cash flow loans shall be
considered only for projects that provide a high level of affordability, target a difficult to serve
population, or include other significant public benefit.
• At the RDA’s discretion, payments may not be required and interest may not accrue or accrue at a
reduced interest rate during the construction and lease-up phase. Upon completion of construction,
lease-up, project stabilization, or other fixed date, loans shall begin to accrue interest and shall be
subject to repayment.
• Any accrued but unpaid interest and principal is due in full at loan maturity.
• Loans can be prepaid in whole or in part at any time without penalty. Prepayment does not end the
affordability period before its original end date.
Term:
• RDA loan terms will generally match the term of permanent senior debt, generally up to a maximum
of 30-years for projects with non-HUD financing and up to a maximum of 40 years for projects with
HUD financing.
• Commencement of the loan term and/or repayment period may be deferred for a period of time to
allow for completion of construction and lease-up phase.
Interest Rate:
• Base Interest Rate: The base interest rate shall be as follows:
o Amortized Loans: The current U.S. Treasury Yield Curve Rate for the loan term plus 1%, locked
in within a month of loan closing, with a maximum base interest rate of 3%. The interest rate
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
REDEVELOPMENT AGENCY OF SALT LAKE CITY 17
for loans with a term longer than 30 years will utilize the 30-year U.S. Treasury Yield Curve
Rate in this calculation.
o Cash Flow Loans: The current U.S. Treasury Yield Curve Rate for the loan term plus 2%, locked
in within a month of loan closing, with a maximum base interest rate of 4%. The interest rate
for loans with a term longer than 30 years will utilize the 30-year U.S. Treasury Yield Curve
Rate in this calculation.
• Interest will accrue as simple interest.
• Funding Priority Incentives: Projects shall have the ability to reduce the Base Interest Rate if the project
meets the current funding priorities as established annually pursuant to the Funds Policy. For each
funding priority met, the project is eligible to receive a .5% reduction from the Base Interest Rate, with
the ability to reduce the interest rate to a minimum of 1%.
• Interest rates are subject to an adjustment, of up a 1% deviation, based on project cash flow and debt
coverage ratio calculated at time of application and underwriting.
Affordability Restriction:
• A restriction shall be recorded against the property that requires continued use of the specified units
as affordable housing for at least the same period as the senior financing or a minimum of 30 years,
whichever is greater. Both a rent and income restriction shall be included to limit the maximum rent
that can be charged for a unit and to require that the unit be made available only to households with
qualifying incomes.
Subordination to Senior Debt:
• HDLP loans may be subordinated to leverage private financing, with the priority among subsidy lenders
typically established based upon size of the loans.
Security:
• Adequate security shall be required, generally in the form of a deed of trust, promissory note, and
guarantees.
Developer Fee:
• Given the rent restrictions on affordable housing projects, affordable housing developments typically
do not have substantial cash flow after debt service on their primary loans. As such, developer fees are
recognized as a significant part of the income on which affordable housing organizations depend for
their operations. For projects utilizing a low-income housing tax credit (“LIHTC”) program, the
calculation to determine a maximum developer fee shall be consistent with Utah Housing Corporation’s
policy, which caps the maximum developer fee. The maximum developer fee for projects not utilizing
LIHTC will be evaluated on a case-by-case basis in the context of the proportion of affordable units and
AMIs.
Borrower Contribution:
• Borrowers shall contribute a source of financing to the project, whether through an equity contribution
or a deferred developer fee or a combination of both. The level of borrower contribution will be
considered on a case-by-case basis and will be evaluated based on the type of ownership entity and
level of public benefit provided by the project.
• For Low Income Housing Tax Credit (“LIHTC”) projects that are requesting a cash flow loan, the
borrower shall maximize the amount of deferred developer fee allowed under Utah Housing
Corporation’s standards to be allowed in tax credit basis and acceptable for their tax credit investor in
that this amount must be payable within a time frame allowed by the LIHTC program as approved by
the project’s tax counsel.
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
REDEVELOPMENT AGENCY OF SALT LAKE CITY 18
• Projects that have not maximized a developer fee, pursuant to the standards contained herein, or that
serve lower AMIs or special populations, such as permanent supportive housing, may have the ability
to waive the borrower contribution.
Disbursement of Funds:
• Funding shall be disbursed as construction draws evidenced by supporting documentation
demonstrating that work has been completed and that the project is in good financial and legal
standing.
Other
• Loans are non-assumable without written permission from the RDA.
• The Applicant must be able to close the loan within 90 days of RDA Board approval.
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
REDEVELOPMENT AGENCY OF SALT LAKE CITY 19
II. GAP FINANCING: HOMEOWNERSHIP CONSTRUCTION
Limits to Assistance:
• Maximize Other Sources: Applicants must demonstrate that they have maximized other available
financing sources thereby limiting HDLP funding to the lowest amount necessary to close the funding
gap and assure project feasibility.
• Loan to Value: Loans will be sized to a loan-to-value limit of 90% of the as-is appraised value inclusive
of the RDA’s loan and all senior debt.
• Proportion to Affordability: Funding shall be sized in proportion to the affordable component, taking
into consideration the AMI structure and number of units in the project.
Repayment:
• Loans shall be repaid from the sale of housing units in the project. HDLP funds may be repaid after
payout to senior loans have been accounted for.
• Any accrued but unpaid interest and principal is due in full at loan maturity.
• Loans can be prepaid in whole or in part at any time without penalty. Prepayment does not end the
affordability period before its original end date.
Term:
• The maximum loan term shall be 36-months with the ability for one 12-month extension if the project
is demonstrating a progression toward completion.
Interest Rate:
• Base Interest Rate: The base interest rate shall be the current U.S. Treasury Yield for the loan term plus
2.5%, locked in within a month of loan closing, with a maximum base interest rate of 3%. Interest will
accrue as simple interest.
• Funding Priority Incentives: Projects shall have the ability to reduce the Base Interest Rate if the project
meets the current funding priorities as established pursuant to the Funds Policy. For each funding
priority met, the project is eligible to receive a .5% reduction from the Base Interest Rate, with the
ability to reduce the interest rate to a minimum of 1%.
• Interest shall accrue on all loan proceeds disbursed commencing on the date of disbursement.
• Interest rates are subject to an adjustment, of up a 1% deviation, based on project cash flow and debt
coverage ratio calculated at time of application and underwriting.
Affordability Restriction:
• A restriction shall be recorded against the property that requires continued use of the specified units
as affordable housing for at least the same period as the senior financing or a minimum of 15 years,
whichever is greater. Both a sales price and income restriction shall be included to limit the maximum
sales price that can be charged for a unit and to require that the unit be made available only to
households with qualifying incomes.
Subordination to Senior Debt:
• HDLP loans may be subordinated to leverage private financing, with the priority among subsidy lenders
is typically established based upon size of the loans.
Security:
• Adequate security shall be required, generally in the form of a deed of trust, promissory note, and
guarantees.
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
REDEVELOPMENT AGENCY OF SALT LAKE CITY 20
Developer Fee:
• Maximum developer fees will be considered on a case-by-case basis and will be evaluated based on
the affordability levels of the project, type of ownership entity, and level of public benefit provided by
the project.
Borrower Contribution:
• Borrowers shall contribute a source of financing to the project, whether through an equity contribution
or a deferred developer fee or a combination of both. The level of borrower contribution will be
considered on a case-by-case basis and will be evaluated based on the affordability levels of the project,
type of ownership entity, and level of public benefit provided by the project.
• Deferred developer fees shall be paid after the HDLP loan has been fully repaid.
Disbursement of Funds:
• Funding shall be disbursed as construction draws evidenced by supporting documentation
demonstrating that work has been completed and that the project is in good financial and legal
standing.
Other
• Loans are non-assumable without written permission from the RDA.
• The Applicant must be able to close the loan within 90 days of RDA Board approval.
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
REDEVELOPMENT AGENCY OF SALT LAKE CITY 21
Attachment C: RDA Project Area Map
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
REDEVELOPMENT AGENCY OF SALT LAKE CITY 22
Attachment D: 2022 Maximum Incomes and Rents
2022 Income Limits: Salt Lake County
AMI Number of Persons in Family
1 2 3 4 5 6 7 8
40% $28,675 $32,775 $36,875 $40,950 $44,250 $47,525 $50,800 $54,075
50% $35,850 $41,000 $46,100 $51,200 $55,300 $59,400 $63,500 $67,600
60% $43,013 $49,163 $55,313 $61,425 $66,375 $71,288 $76,200 $81,113
80% $57,350 $65,550 $73,750 $81,900 $88,500 $95,050 $101,600 $108,150
Source: Based on data acquired from the U.S. Department of Housing and Urban Development’s FY 2022 Income Limits Documentation System.
2022 Maximum Rents
AMI Bedrooms
Studio 1 2 3 4 5
40% $717 $768 $922 $1,065 $1,188 $1,311
50% $896 $960 $1,152 $1,331 $1,485 $1,638
60% $1,075 $1,152 $1,383 $1,597 $1,782 $1,966
80% $1,434 $1,537 $1,844 $2,130 $2,376 $2,622
Source: Based on data acquired from the FY2022 Novogradac Rent & Income Limit Calculator
2022 HOUSING DEVELOPMENT LOAN PROGRAM – EMERGENCY GAP FUNDING
REDEVELOPMENT AGENCY OF SALT LAKE CITY 23
Attachment E: RDA Guiding Framework
Project Name
Requested Funding Amount Total Project Cost (TPC)
Estimated Project Start Date Estimated Project Completion Date
Project Street Address City State Zip
Contact Name Contact Phone Contact Email Address
Business Name Tax ID Number
Street Address City State Zip
Entity Type:☐LLC ☐501(c) 3 ☐Partnership ☐Joint Venture
☐C Corp ☐Other:
% Ownership
☐Yes ☐No
Through a Notice of Funding Availability (NOFA) for Emergency Gap Funding, the Redevelopment Agency of Salt Lake City
intends to allocate funding through the Housing Development Loan Program (HDLP) for projects that are impactful in producing
affordable housing units within Salt Lake City municipal boundaries. This Application is the first step in the process to request
funding through the HDLP. Prospective applicants are strongly encouraged to read the HDLP Emergency Gap Funding
Guidelines and Application Handbook in its entirety before beginning the application process.
☐Sole Owner
451 South State Street, Room 118, PO Box 145518, Salt Lake City, Utah 84114 I 801-535-7240 I www.slcrda.com
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Ownership - Provide the following information for officers and shareholders owning 10% or more of the entity.
☐S Corp
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Date of Application
Role in Proposed ProjectName, Title
Are there any judgments or liens outstanding against the applicant?
Project Type:
☐New Construction, Undeveloped Site ☐New Construction, Demolition of Existing Structures
☐Renovation/Rehabilitation of Existing Housing ☐Addition to Existing Structure
☐Adaptive Reuse of an Existing Structure ☐Other:
HDLP APPLICATION REDEVELOPMENT AGENCY OF SALT LAKE CITY PAGE 1
APPLICATION | AFFORDABLE HOUSING: EMERGENCY GAP FUNDING
Requested Funding Amount to TPC (%)
Role Years Experience
Developer
General Partner
Architect
Contractor
Construction
Manager
Legal
Prop. Manager
Market Study
Appraisal
Environ. Review
Primary Lender
Other
Other
Total Residential Units:
Studio:Studio:Studio:
1 Bed:1 Bed:1 Bed:
2 Bed:2 Bed:2 Bed:
3 Bed:3 Bed:3 Bed:
4 Bed:4 Bed:4 Bed:
Total:Total:Total:
Land Area:
Building Area:
☐Yes ☐No
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Development Team: Please provide the following information for each relevant development team member.
☐Multi-family - 101 to 200 units
☐Multi-family - 200+ units
☐Single-Family Attached/Townhomes
Commercial Area:
Parking Ratio:
Firm/Organization Contact Name, Email
If not, please indicate what process(es) will need to be completed in order to move forward, and the status of these
process(es).
40% AMI and Below Units:
Housing/Land Use Type:
☐Multi-family - <20 units
☐Multi-family - 21 to 50 units
☐Multi-family - 51 to 100 units
☐Live/work Units
☐Other:
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60% - 41% AMI Units:
What is the current or proposed zoning and use(s) of the site?
Does the project meet all current zoning, infrastructure, and utility requirements?
Note: RDA staff recommends that Projects be reviewed by Salt Lake City's Development Review Team (DRT). If a Project is
reviewed by DRT, DRT notes should be attached to the application submittal.
HDLP APPLICATION REDEVELOPMENT AGENCY OF SALT LAKE CITY PAGE 2
☐ No
☐ Yes ☐ No
If Yes, will the proposed project displace residents and/or businesses?
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Is the site occupied?
☐ Yes
18.64.050, and the Federal Uniform Relocation Assistance and Real Property Acquisition Act.
☐
If residents and/or businesses are anticipated to be displaced, describe how impacts to low-income residents will be
resolved:
Tax Parcel Identification Number(s):
Does the Applicant have site control of the property? ☐ Yes ☐ No
Please attach proof of site control.
If the Applicant does not currently have site control, explain how site control will be obtained, including timing:
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Note: Refer to the HDLP Guidelines and Application Handbook for Project Priority benchmark requirements.
Describe how the project will meet the Benchmark(s) for each of the selected Project Priorities.
HDLP APPLICATION REDEVELOPMENT AGENCY OF SALT LAKE CITY PAGE 3
Does the project meet the sustainability threshold to achieve a "Designed to Earn ENERGY STAR" score of 90+ and is the building 100%
electric?
☐Yes ☐No
Please attach ENERGY STAR Statement of Design Intent (SEDI) as referenced on Page 6 of HDLP Guidelines and Application.
Select the Project Priorities that the project meets:
☐Homeownership
☐Family Housing
☐Target Populations
☐Missing Middle/Unique Housing Types
Transportation Opportunities
Neighborhood Safety
Expand Opportunity
Architecture & Urban Design
Commercial Vitality
Historic Preservation/Adaptive Reuse
Public Art
☐Yes, 4%☐Yes, 9%
☐Yes, 4%☐Yes, 9%☐No
Is the project anticipated to use Low Income Housing Tax Credits as a source of financing?
☐No
If Yes, are Low Income Housing Tax Credits already awarded to the project?
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Provide additional detail on the project concept, amenities, and design, (i.e. transit-oriented development, public space,
historic preservation, sustainability features, supportive services, etc.). A separate attachment may be included.
projects for the long-term. A separate attachment may be included.
Provide the proposed term, interest rate*, amortization schedule, and repayment schedule of RDA funds being applied for.
In addition, provide a summary and status of other sources of financing. A separate attachment may be included. *Please
refer to Section 6 and Attachment B of the HDLP Guidelines and Application Handbook to calculate interest
HDLP APPLICATION REDEVELOPMENT AGENCY OF SALT LAKE CITY PAGE 4
By (signature)
Title Date
By (signature)
Title Date
Check if Complete
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Check if Complete
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Applicant (print)
1.Application Form (this form)
A.Project summary.
B.Applicant summary.
C.Development team overview.
D.Housing and land use overview.
E.Property overview.
F.Project priorities.
G.Project description.
H.Applicant experience.
I.Financials.
J.Applicant certification.
K.Additional applicant attachments (if applicable).
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For an application to be considered complete the following sections must be completed in full:
2.Attachments
A.Preliminary project drawings, including a conceptual site plan (including the context of
the area), elevation drawings, and architectural renderings (if available).
B.Proof of site control.
C. ENERGY STAR Statement of Design Intent (SEDI)
D.Sources and uses.
E.Financing term sheets (if available).
F.Operating proforma.
G.Project timeline, including significant project milestones.
H.Notes from Salt Lake City Development Review Team (DRT) meeting (if available).
Applicant Certification
I/We hereby certify that all statements in this application are true and complete.
Applicant (print)
HDLP APPLICATION REDEVELOPMENT AGENCY OF SALT LAKE CITY PAGE 5
How did you hear about this Notice of Funding Availability?
☐Our website
☐Email
☐Online Advertisement
☐Social Media
☐Utah Public Procurement Place Website or email
☐Other:
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AFFORDABLE HOUSING
2022 NOTICE OF FUNDING AVAILABILITY (NOFA)
EMERGENCY GAP FUNDING
RDA BOD MEETING –AUGUST 9, 2022
BACKGROUND & OVERVIEW
FUNDS AVAILABLE
•Total: $3,082,500
APPLICATION PROCESS
•Applications Released: June 2, 2022
•Applications Due:
o Emergency Gap Funds are available until expended or until
June 2023, whichever is sooner. Applications for these
funds are reviewed and accepted on a first come, first serve
basis.
APPLICATION SUMMARY
•4 Applications
•1 application rescinded recently, now a total of 3 applications
•$3,000,000 Total Funding Requests
PROJECT SUMMARY
•In 2019, a $3.1 M RDA loan was approved to support the adaptive reuse
of two existing warehouses by West End LLC
•Construction was completed in Fall 2021
•Created 10,900 SF of rentable commercial
•The pandemic slowed construction and leasing the building
CATEGORY POLICY OBJECTIVE NOFA RANKING
WEIGHT
0.5% INTEREST RATE
REDUCTION
1. Fund Leveraging Maximize impact by leveraging funds with the private market and with other available public resources. Threshold N/A
2. Sustainability Achieve green building and energy conservation standards to lower housing expenses, conserve resources,
and promote resiliency.Threshold X
3. Homeownership Create opportunities for those who have historically rented in the community to build wealth and establish
permanent roots through homeownership.3 X
4. 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.3 X
5. 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.3 X
6.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.3 X
7.Transportation
Opportunities
Promote a multimodal transportation network and ensure convenient and equitable access to a variety of
transportation options.1 X
8. Neighborhood Safety Utilize the development of housing as a method to remove blight, reduce crime, revitalize neighborhoods, and
stabilize communities.1 X
9.Expand Opportunity Provide for Neighborhoods of Opportunity by promoting the economic diversity of the housing stock within
neighborhoods.1 X
10.
Architecture & Urban
Design
(Neighborhood Impact)
Encourage housing that is high-quality, enduring, and that contributes to neighborhood context and livability
through architectural and urban design best practices.1 X
11. Commercial Vitality Foster a mix of land uses and unique neighborhood business districts that adequately meet the local
community’s needs.1 X
12. Historic Preservation
/Adaptive Reuse Encourage the preservation and/or reuse of buildings to preserve the character of neighborhoods.1 X
13. 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.1 X
FUNDING PRIORITIES
THRESHOLDS
FUND LEVERAGING: Maximize impact by leveraging funds with the private
market and with other available public resources.
SUSTAINABILITY: Projects required to be designed to achieve a “Designed
to Earn Energy Star” Score of 90 or higher and participate in the City’s
Elevate Buildings program once the building is operating. Per the Sustainable
Development Policy, Projects that break ground before January 1, 2023, may
have an energy star score of 80 or higher.
MINIMUM AFFORDABILITY: For rental units, at least 20% of the project’s
residential units must be incomed restricted to 60% AMI or less.
THRESHOLD AND APPLICATION REVIEW
APPLICATION CONSIDERATIONS:
•Funding priorities
•Project readiness
•Content and quality of application
•Qualifications and experience of applicant and development team
•Content, effectiveness and appropriateness of financial details
•Building and site design
APPLICATIONS RECOMMENDED FOR FUNDING:
•Meet threshold requirements and funding priorities
•Have secured financing and tax credits
•Ready to be built soon
•Ability to close loan within 90 days
APPLICATION SUBMITTALS MAP
APPLICATION SUMMARY
THE NEST
382 RIO GRANDE
1700 SOUTH
AFFORDABLE
230 W 1700 S
144 SOUTH
144 S 500 E
Request Amount $1,000,000 $1,000,000 $1,000,000
Project Cost $62,841,781 $57,835,943 $35,177,365
RDA % of Total Project Cost
Current RDA Loan Request 1.59%1.73%2.84%
Overall RDA Project Participation
(%) of total project cost 3.31%1.73%5.05%
RDA Funds per Affordable Unit $9,465.91 $4,219.41 $16,136.36
Tax Credits?Yes, 4%Yes, 4%Yes, 4%
Affordable Units and
Breakdown
40% AMI and below
41-60% AMI 220 237 110
>61% AMI to 80%
Market units
Total Units 220 237 110
Percent affordable (60% AMI &
below)100%100%100%
Unit Mix
Studios 140 24 53
1BR 80 130 57
2BR 73
3BR 10
STAFF REVIEW AND RDA FINANCE COMMITTEE
PROJECT/APPLICANT ADDRESS PRELIMINARY TERMS*
FUNDING
REQUEST
FUNDING
RECOMMENDATION
The Nest 382 Rio Grande 2.5%, 20-year term,
40-year amortization $1,000,000 $1,000,000W3 Partners
1700 South Affordable
230 W 1700 S 3.5%, 30-year term/30-
year amortization $1,000,000 $1,000,000Wasatch Residential
Group, LLC
144 South 144 S. 500
East
1%, 40-year term, 40-
year amortization $1,000,000 $1,000,000Red Gate
TOTAL $3,000,000 $3,000,000
FUNDS AVAILABLE FY 2021-2022
Emergency Gap Funding $3,082,500
Recommended Emergency Gap Allocations $3,000,000
Funds Remaining –Emergency Gap $82,500
*Final loan terms shall comply with details laid out in the 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.
o Based on Emergency Gap HDLP Guidelines, these projects meet the thresholds and requirements:
RDA Board of Directors
o RDA Board to provide final approval