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Proposed Resolution - 8/19/2022RESOLUTION NO. _____ OF 2022 (Authorizing the Lease Rate and Term for The Other Side Village Pilot Project located at 1850 West Indiana Avenue, Salt Lake City) WHEREAS, The Other Side Academy (“TOSA”), a Utah nonprofit corporation, desires to develop a community of small homes, community space, support services, and commercial uses to provide affordable housing and life skill development for the City’s unsheltered population, to be known as The Other Side Village (the “Project”); and WHEREAS, the first phase of the Project (the “Pilot Project”) will include affordable housing, supportive services, community space, social enterprise buildings, and additional tiny homes to be offered as nightly rentals, as further described on the attached term sheet (the “Term Sheet”); and WHEREAS, TOSA and the City desire to locate the Pilot Project on approximately 8 acres of the real property owned by the City and located at 1850 West Indiana Avenue, Salt Lake City (the “Pilot Site”); WHEREAS, the primary beneficiaries of the construction of the Pilot Project will be individuals experiencing chronic homelessness who are transitioning into housing as part of the City, County, and State’s efforts to address the homelessness and housing crisis in Salt Lake City; and WHEREAS, a below-market ground lease to TOSA will facilitate the development of the Pilot Project, which would otherwise be financially unfeasible; and WHEREAS, the City is willing to provide assistance to TOSA in the form of a ground lease rate for the Pilot Site in the amount of $1.00 per year for a term of 40 years, so long as the conditions of the ground lease between City and TOSA, or another nonprofit approved by City, are met (the “Lease Fee Waiver”); and EXHIBIT B: RESOLUTION & TERM SHEET 2 WHEREAS, Utah Code Section 10-8-2(1)(a)(i) allows public entities to provide nonmonetary assistance and waive fees to and for nonprofit entities after a public hearing; and WHEREAS, though Utah Code Section 10-8-2 does not require a study for such waiver or assistance, in this case the Administration voluntarily performed an analysis of the nonmonetary assistance to the nonprofit corporation (the “Analysis”); and WHEREAS, the City Council has conducted a public hearing relating to the foregoing, in satisfaction of the requirements of Utah Code Section 10-8-2; and WHEREAS, the Council has reviewed the Analysis, and has fully considered the conclusions set forth therein, and all comments made during the public hearing; NOW, THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah, as follows: 1.The City Council hereby adopts the conclusions set forth in the Analysis, and hereby finds and determines that, for all the reasons set forth in the Analysis, the Lease Fee Waiver is appropriate under these circumstances. 2.The terms outlined on the Term Sheet represent the approved terms for the Pilot Project, and the City Council hereby authorizes the City administration to negotiate the final terms consistent with the Term Sheet or more beneficial to the City, and execute the ground lease and any other relevant documents consistent with this Resolution and incorporating such other terms and agreements as recommended by the City Attorney’s office. Passed by the City Council of Salt Lake City, Utah, on _________, 2022. SALT LAKE CITY COUNCIL By: ______________________ CHAIRPERSON ATTEST: ____________________________ CITY RECORDER APPROVED AS TO FORM: Salt Lake City Attorney’s Office By: ___________________________ Kimberly Chytraus, Senior City Attorney EXHIBIT TO RESOLUTION The Other Side Village Pilot Project Term Sheet AFFORDABLE HOUSING I.Unit Requirements TOSA shall develop and maintain the Pilot Site to include a minimum of 60 tiny home units. Of the total units: 1.Up to 10% may be unrestricted in rent and occupancy for utilization by staff. 2.A minimum of 90% shall be available and affordable to individuals or families meeting the HUD-adopted definition of chronically homeless and homeless, with a priority on chronically homeless. These units shall be designated as the “Affordable Units”. II.Occupancy Requirements TOSA must place into the Affordable Units individuals and families that meet the HUD-adopted definition of chronically homeless and homeless, prioritized as follows: 1.TOSA shall first make the units available to persons or families that meet HUD’s definition of chronically homeless as defined in section 401(2)(A) of the McKinney- Vento Homeless Assistance Act (42 U.S.C. 11360(9)). In general, to meet this definition, a chronically homeless person or family’s head of household must be sleeping in a place not meant for human habitation or living in a homeless emergency shelter or safe haven, have a disabling condition, as defined in section 401(9) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360(9)), and i.be continuously homeless for a year or more, OR ii.have had at least four episodes of homelessness in the past three years as long as the combined occasions equal at least 12 months. 2.If there are units available and no applications from chronically homeless individuals, TOSA may lease units to vulnerable homeless individuals, as “homeless” is then- currently defined by HUD, provided that applicants who have been homeless for the longest periods of time immediately preceding their application are given priority over applicants who have been homeless for lesser periods of time. III.Tenant Eligibility To determine whether a tenant is eligible, TOSA must verify that the prospective tenant meets HUD’s definition of chronically homeless or homeless and whose incomes have an aggregate annual income for all occupants that is 30% and below of the area median income for Salt Lake City Utah, HUD Metro FMR Area as adjusted for household size. IV.Tenant Selection 1.The Affordable Units shall be made available pursuant to federal and state fair housing laws and HUD guidance, including the following: i.TOSA may establish admission preferences, including a preference for individuals with a commitment to sobriety, but may not deny housing to protected classes pursuant to federal and state fair housing laws. ii.TOSA may regulate the occupancy of units based on unit size but may not unreasonably limit the ability of families with children to obtain housing. 2.TOSA must develop and make public written tenant selection policies and procedures that include descriptions of the eligibility requirements. The Tenant Selection Plan must include evidence of a contractual partnership with service provider(s) and whether there is a restriction or preference in the admission of tenants. The restriction or preference must cite the supporting documentation to ensure inclusion and nondiscrimination in the selection of tenants. 3. TOSA will ensure that all applicants for housing in the project will go through the coordinated entry process used by the Salt Lake Valley Coalition to End Homelessness to ensure coordination and efficiency with the current homelessness services system. 4. TOSA also will enter any new resident into the Homeless Management Information System (“HMIS”) coordinated entry system. 5. Preference will be given to Salt Lake City residents for placement into the development. V. Maximum Rents 1. The annualized rent (which includes all required housing costs such as utilities and other charges uniformly assessed to all Affordable Units, other than charges for optional services) per unit shall be set forth in a written lease and shall not exceed, for the term of the lease, 30% of the annual income limit for individuals and households with a maximum AMI of 25% AMI for the applicable Unit Type (i.e. studio or bedroom number). VI. Tenant Lease Requirements 1. Leases may be provided on a month-to-month basis, with the intent that tenants may live in their homes as long as they meet the basic obligations of tenancy without a time limitation. 2. TOSA shall comply with local, state, and federal laws, including the federal fair housing act, when approving applicants as tenants, evicting, terminating a lease, or providing a notice to quit. 3. TOSA must incorporate specific provisions into the lease agreement for each eligible tenant of the Affordable Units that establish the tenant's obligation to provide accurate information regarding household income and composition. VII. Record-Keeping and Reporting Requirements 1. Upon execution of a lease, TOSA must verify and document the tenant’s annual (gross) income. 2. TOSA must re-examine the income and household composition of tenants on an annual basis. 3. TOSA must submit annual compliance reports to the City. These reports shall document the occupancy and show whether TOSA is in compliance with tenant eligibility requirements. 4. TOSA must provide the City a written certification of compliance when the project reaches initial compliance and then with each annual report. SUPPORTIVE SERVICES The pilot project will include supportive services to assist homeless persons in transitioning from homelessness, and to promote the provision of supportive housing to enable homeless persons to live as independently as possible. Supportive services will include on-site case coordination or management that ensures tenants’ access to a wide variety of services and on-site location of services provided by professional service providers as evidenced through an agreement. Services shall be made available on a flexible and voluntary basis and may address the following: mental health, substance and alcohol use, health, case management, independent living skills, employment, peer support, and community involvement and support. Physical and mental health providers shall have the appropriate licenses, which other services may be provided by those with appropriate training and following industry best practices. PROGRAMMING The pilot project will include programming that includes peer mentoring and the life skill development. This will include opportunities for residents to obtain employment experience by working in a social enterprise to the best of their ability. While participation in these employment activities shall be encouraged, it is not a condition of living in the pilot project. TERM The term of the lease will be forty (40) years with an option to renew the lease within the last year of the lease subject to approval by the Salt Lake City Council for the reduced lease rate. LEASE RATE The lease rate for the property will be $1 per year for the term of the lease.