Transmittal - 11/1/2022ERIN MENDENHALL DEPARTMENT of COMMUNITY
Mayor and NEIGHBORHOODS
Blake Thomas
Director
SALT LAKE CITY CORPORATION
451 SOUTH STATE STREET, ROOM 404 WWW.SLC.GOV
P.O. BOX 145486, SALT LAKE CITY, UTAH 84114-5486 TEL 801.535.6230 FAX 801.535.6005
CITY COUNCIL TRANSMITTAL
________________________ Date Received: _________________
Lisa Shaffer, Chief Administrative Office Date sent to Council: _________________
______________________________________________________________________________
TO: Salt Lake City Council DATE: October 28, 2022
Dan Dugan, Chair
FROM: Blake Thomas, Director, Department of Community and Neighborhoods (CAN)
__________________________
SUBJECT: Homeless Housing Grant Fund recommendations for $6 million that was
transferred from a CIP holding account to the general fund for the purpose of providing grants to
projects that address immediate and long-term homeless housing needs.
STAFF CONTACT: Tammy Hunsaker, Deputy Director, Community and Neighborhoods
801-535-7244, tammy.hunsaker@slcgov.com
DOCUMENT TYPE: Resolution
RECOMMENDATION: Consideration of the attached resolution to approving funding
allocations for the Homeless Housing Grant Fund.
BUDGET IMPACT: N/A
BACKGROUND/DISCUSSION: On September 20, 2022, the Salt Lake City Council
(“Council”) adopted an ordinance amending the Fiscal Year 2023 budget to transfer $6 million
from a CIP holding account to the general fund to address immediate and long-term homeless
needs and the creation of a Homelessness Housing Grant Fund (“HHGF”). The Administration
proposed to portion City funds for deeply affordable housing into two phases. The $6 million
adopted by Council is intended to be Phase I, to provide grants for permanent supportive housing
and/or transitional housing projects that will:
•Serve people currently experiencing homelessness in the City
•Offer at least ~100 housing units
Lisa Shaffer (Nov 1, 2022 16:04 MDT)11/01/2022
11/01/2022
• Have a majority of units ready for occupancy on or before April 2023, when the winter
overflow shelters close for the season
• Have a majority of its funding from non-City sources
The Phase I funding is intended to provide a crucial subsidy for housing that is the most difficult
to develop, utilized for the construction or acquisition/rehabilitation of new permanent
supportive housing (“PSH”) or transition housing (“TH”) units. Projects are intended to target
qualified low-income households that meet HUD’s definition of chronically homeless, are
otherwise assessed by the region’s coordinated entry system as the most vulnerable homeless
persons, or other populations with critical needs. Due to the limited cash flow generated by these
types of housing projects, funding may be provided as grants. Funding shall leverage various
other sources of local, state, and federal funds.
Since the Phase I funding is intended to focus on creation of units within the next 9 months to
align with the end of the winter overflow shelter season, it is expected that applicants will
include those renovating existing motels for permanent supportive or transitional housing
projects. It is anticipated that projects will have already begun work and need funds to continue
and/or finish construction.
In addition to the $6 million being issued through Phase I, other funds approved through the FY
2023 budget for housing are in various stages of administration by the Department of
Community and Neighborhoods (“CAN”) and the Redevelopment Agency of Salt Lake City
(“RDA”) for activities that support extremely low-income individuals and households. Projects
supported by these other funds are likely farther out in the development pipeline and may need
12-24 months to complete planning and construction. The goal is to coordinate funding and
resources to reduce the number of unsheltered homeless individuals and individuals staying in
emergency shelters.
HHGF Administration
CAN expedited the creation of a grant application for developers and non-profit organizations to
apply for a portion of the funding, not to exceed $2.5 million per applicant. A notice of funding
availability (“NOFA”) was released on September 30th and closed on October 14th. The NOFA
was posted on the Utah Public Procurement Place website and CAN’s website, and was
disbursed via email. A total of five applications were received, with a combined funding request
of $11,900,000. Refer to Exhibit A: HHGF Application & Project Summary for an overview of
the funding requests and corresponding projects. Also refer to Exhibit B: Financial Gap
Summary for an overview of the projects’ sources and uses.
HHGF Review Committee & Recommendations
A HHGF review committee (“Committee”), comprised of representatives from Housing
Stability, the Housing Trust Fund Advisory Board, and RDA was established to review
applications and make funding recommendations that will be forwarded to the Council.
Next Steps
Once the Council approves funding allocations, the Administration will work with the Attorney’s
Office to draft and execute grant documents and any other associated agreements. While funding
is ultimately intended to be provided as a grant, the Administration may require that funding be
disbursed through multiple draws and will be required to be repaid if the project does not meet
the intended long-term public benefits.
EXHIBITS:
A. HHGF Application & Project Summary
B. HHGF Financial Gap Summary
C. HHGF Resolution
1 - ATKINSON STACKS 2 - FIRST STEP HOUSE
RECOVERY HOUSING
3 - MEDICALLY
VULNERABLE INTERIM
HOUSING
4 - POINT AT FAIRPARK 5 - VILLE 1659
DEVELOPER/OPERATOR Housing Assistance Management
Experience (HAME)
First Step House (FSH)Shelter the Homeless, Inc (STH)Friends of Switchpoint, Inc Ville 1659 LLC
PROJECT COST $$29,890,890.00 $3,240,000.00 $19,000,000.00 $16,000,000.00 $18,250,000.00
FUNDING REQUEST $$2,500,000.00 $1,900,000.00 $2,500,000.00 $2,500,000.00 $2,500,000.00
CITY FUNDING PER UNIT 8%59%13%16%14%
NUMBER OF UNITS 114 16 98 94 197
ADDRESS 543 S 500 W, SLC 518 E 600 S, SLC Outside Municipal Boundaries 130 N 2100 W, SLC 1659 W N Temple St, SLC
COMPLIES WITH ZONING?Yes Yes No, in process No, in process Yes
COMPLETED BY MAY 2023? No Yes Yes Yes Yes
NUMBER OF UNITS 114 16 98 94 197
PROJECT-BASED VOUCHERS?114 No No No No
HOUSING TYPE Permanent Supportive Housing Permanent Supportive Housing Transitional Housing Permanent Supportive Housing Permanent Supportive Housing
POPULATIONS MOST CRITICALLY
IN NEED OF HOUSING
Individuals who are disabled,
Individuals experiencing
homelessness
Individuals who are disabled,
specifically, but not exclusively,
substance use disorder and co-
occurring mental health conditions.
Individuals experiencing
homelessness who are aging,
vulnerable, medically frail, in need
of recuperative care, and/or
underlying health condition
Literally homeless individuals over
62 years of age, Veterans living on
a fixed income
Chronically homeless, Veterans,
Victims of DV, Formerly
Incarcerated Individuals, Aging
Adults, Individuals at risk of
becoming or returning to
homelessness
ON-SITE SUPPORTIVE SERVICES Yes; Case Management, Physical
and Mental Health Support
Yes; Home Visits, Case
Management, Peer Support, and
Recovery Support Groups
Yes; Physical Health Support Yes; Case Management, Group
Classes, Physical and Mental
Health Support, Veteran Benefits
Yes; Case Management, Physical
and Mental Health Support,
Substance Abuse Support
Services
RENT STRUCTURE Project-based vouchers so
tenants will pay 30% of their
incomes for rent. Partnered with
Sacred Circle Health Care (SCHC)
who accepts referrals from
Community Triage Groups (CTG),
Veteran Community Triage (VCT),
and Veteran Support Team (VST)
for placement.
Most tenants will lack income and
be enrolled in SLCo Division of
Behavioral Health Services
(DBHS) Recovery Housing
Voucher Program which pays the
$800 in monthly rent for three
months; starting in month four,
residents are required to pay 30%
of income for rent. For without a
voucher, rent will be capped at no
more than 30% of their income.
This program targets support for
medically vulnerable individuals
transitioning from the homeless
resource centers or encampments
to interim housing as their best
long-term solutions are determined,
and does not plan for rental
income, neither with project-based
or tenant based vouchers, nor
Social Security Disability
Insurance.
Rents will be restricted to 40% AMI
and targeted to seniors and
veterans. Switchpoint participates
in the Salt Lake Valley Coalition to
End Homelessness (SLVCEH)
coordinated entry to identify
eligible residents and takes
referrals from Aging Services, the
VA, and street outreach.
Rents will be set at Fair Market
Rent (FMR), which is currently
~$1,000 for a studio. Ville 1659 will
work with SLVCEH and the service
provider community to house
individuals that already have a
voucher. Based on input from
SLVCEH, the VA Housing team,
and other providers, a "shortage" of
individuals with vouchers isn't
foreseen.
EXHIBIT A: HHGF APPLICATION & PROJECT SUMMARY
Utah Office Homeless Services $ 9,000,000 30%
SLC HHGF $ 2,500,000 8%
Other Unsecured $ 18,390,890 62%
TOTAL $ 29,890,890 100%
Hard/Soft Costs $ 27,390,890 92%
Developer Fee $ 2,500,000 8%
TOTAL $ 29,890,890 100%
Utah Recovery Housing Program 1,340,000$ 41%
SLC HHGF 1,900,000$ 59%
TOTAL 3,240,000$ 100%
Acquisition 2,400,000$ 74%
Hard/Soft Costs 640,000$ 20%
Developer Fee 200,000$ 6%
TOTAL 3,240,000$ 100%
State of Utah 3,500,000$ 19%
Salt Lake County 6,000,000$ 32%
SLC HHGF 2,500,000$ 13%
Other Unsecured 6,727,940$ 36%
TOTAL 18,727,940$ 100%
Acquisition (estimate)12,000,000$ 64%
Construction/Start-up 1,842,875$ 10%
Annual Property Management 1,049,928$ 6%
Medical Services/Case Management 816,515$ 4%
Operations/Client Services 3,018,622$ 16%
Developer Fee -$ 0%
TOTAL 18,727,940$ 100%
Utah Office Homeless Services $ 10,283,622 64%
Switchpoint Reserves $ 2,116,378 13%
SLC HHGF $ 2,500,000 16%
Other Unsecured $ 1,100,000 7%
TOTAL $ 16,000,000 100%
Acquisition $ 13,000,000 81%
Hard/Soft Costs $ 3,000,000 19%
Developer Fee $-0%
TOTAL 16,000,000$ 100%
Owner Equity $ 1,391,378 8%
Bank Loan $ 8,500,000 47%
Utah Office Homeless Services $ 3,858,622 21%
SLC HHGF $ 2,500,000 14%
Other Unsecured $ 2,000,000 11%
TOTAL $ 18,250,000 100%
Acquisition $ 12,000,000 66%
Hard/Soft Costs $ 5,250,000 29%
Developer Fee $ 1,000,000 5%
TOTAL $ 18,250,000 100%
EXHIBIT B: HHGF FINANCIAL GAP SUMMARY
1 - ATKINSON STACKS
3 - MEDICALLY VULNERABLE
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NOTE: ORANGE indicates a funding source that is not secured.
NOTE: PURPLE indicates the HHGF funding request currently being evaluated.
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4 - POINT AT FAIRPARK
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5 - VILLE 1659
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RESOLUTION NO.________ OF 2022
Adopting funding allocations for the Homeless Housing Grant Fund
WHEREAS, On September 20, 2022, the Salt Lake City Council (“Council”) adopted an
ordinance amending the Fiscal Year 2023 final budget of Salt Lake City (“City”) to transfer
$6 million from a CIP holding account to the general fund to address immediate and long-term
homeless needs and the creation of a Homelessness Housing Grant Fund (“HHGF”);
WHEREAS, the Mayor and Council determined that the HHGF is intended to provide a
subsidy for the construction, acquisition, or rehabilitation of new permanent supportive housing
or transition housing units;
WHEREAS, the Mayor and Council further determined that the HHGF is intended to
provide a subsidy for projects that are scheduled to be complete by May 2023, when the winter
overflow shelters are scheduled to close for the season;
WHEREAS, between September 30 and October 14, 2022, the City accepted applications
for the HHGF through a competitive Notice of Funding Availability, with the resulting submittal
of five applications;
WHEREAS, on October 25, a committee was convened to review and recommend
approval to the Council the funding allocations noted on Exhibit A attached hereto;
NOW, THEREFORE, be it resolved by the City Council of Salt Lake City, Utah, as
follows:
1. That the Council hereby approves issuing the funding allocations outlined on
Exhibit B – Council Funding Allocations, with the requirement that the grant
proceeds shall be used to create new units of housing as detailed on the Exhibit.
2. That the Mayor, as the official representative of Salt Lake City, or her designee,
is hereby authorized to negotiate and execute the grant documents and any
other relevant documents consistent with Exhibit B, and incorporating such
other terms and agreements as recommended by the City Attorney’s office, and
to act in accordance with their terms.
[The remainder of the page is intentionally left blank.]
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Passed by the City Council of Salt Lake City, Utah, this day of ______________, 2022.
SALT LAKE CITY COUNCIL
By _____________________________
Dan Dugan
CHAIR
Approved as to form: __________________________
Kimberly K. Chytraus
Salt Lake City Attorney’s Office
Date: ___________________________
ATTEST:
_________________________________
CITY RECORDER
October 31, 2022
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EXHIBIT “A”
HHGF Review Committee Recommendations
On October 25, 2022, the HHGF review committee (“Committee”), comprised of representatives
from Housing Stability, the Housing Trust Fund Advisory Board, and RDA convened to review
applications and make funding recommendations that will be forwarded to the Council. Based on
the Council’s intent established through the budget approval, the Committee considered the
following standards of review when considering funding recommendations:
• Serve people currently experiencing homelessness in the City
• Offer at least ~100 housing units of new permanent supportive housing (“PSH”) or
transition housing (“TH”)
• Have a majority of units ready for occupancy on or before April 30, 2023, when the
winter overflow shelters close for the season
• Have a majority of its funding from non-City sources
1 - ATKINSON STACKS
Applicant: Housing Assistance Management Experience (HAME)
Funding Request: $2,500,000
Address: 543 S 500 W
Funding Recommendation: $0
*Project will not open on or near May 2023
2 - FIRST STEP HOUSE RECOVERY HOUSING
Applicant: First Step House
Address: 518 E 600 S
Funding Request: $2,500,000
Funding Recommendation: $0
*Project does not have a majority of funding sources from non-City sources.
3 – MEDICALLY VULNERABLE PROJECT
Applicant: Shelter the Homeless, Inc
Address: Outside of municipal boundaries
Funding Request: $2,500,000
Funding Recommendation: $2,000,000
Recommended Conditions - to be established through a 30-year minimum deed
restriction or restrictive covenant:
• The project shall provide transitional housing for medically vulnerable individuals that
are chronically homeless, homeless, and at-risk of becoming homeless.
• Applicant shall develop and maintain a project with a minimum of 98 affordable housing
units that are restricted by rent and occupancy, as follows:
o Tenants must have an annual income that is 30% or below of the area median
income for Salt Lake City Utah, HUD Metro FMR Area as adjusted for household
size.
o Medically vulnerable individuals who have been homeless for the longest periods
of time or who demonstrate the highest vulnerability utilizing the VISPDAT
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(Vulnerability Index–Service Prioritization Decision Assistance Tool) or similar
assessment shall be given priority.
o Rent shall not exceed 30% of each tenant’s annual income. Tenants shall not be
required to pay rent if they do not have income.
• Applicant shall ensure that prospective tenants have gone 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.
• Applicant shall enter any new resident into the Homeless Management Information
System (“HMIS”) coordinated entry system.
• The project shall include supportive services, with a focus on medical services, to
stabilize residents and to enable residents to live as independently as possible.
• Applicant shall work with residents to obtain suitable, permanent housing.
• Applicant must submit annual compliance reports to the City. These reports shall
document the occupancy and show whether Applicant is in compliance with
requirements.
4 - POINT AT FAIRPARK
Applicant: Friends of Switchpoint, Inc
Address: 130 N 2100 W
Funding Request: $2,500,000
Funding Recommendation: $2,000,000
Recommended Conditions - to be established through a 30-year minimum deed
restriction or restrictive covenant:
• The project shall provide housing for individuals that are chronically homeless, homeless,
and at-risk of becoming homeless.
• Applicant shall develop and maintain a project with a minimum of 94 affordable housing
units that are restricted by rent and occupancy, as follows:
o Tenants must have an annual income that is 40% or below of the area median
income for Salt Lake City Utah, HUD Metro FMR Area as adjusted for household
size.
o Individuals who have been homeless for the longest periods of time or who
demonstrate the highest vulnerability utilizing the VISPDAT (Vulnerability
Index–Service Prioritization Decision Assistance Tool) or similar assessment
shall be given priority.
o Preference may be provided to veterans and seniors.
o The annualized rent 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 40% AMI.
o If project-based vouchers are obtained, tenants shall pay no more than 30% of
their income toward rent.
• Applicant shall ensure that prospective tenants have gone 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.
• Applicant shall enter any new resident into the Homeless Management Information
System (“HMIS”) coordinated entry system.
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• The project shall include supportive services to assist homeless persons in transitioning
from homelessness, and to promote the provision of supportive housing to enable
residents to live as independently as possible. Supportive services shall 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.
• Applicant must submit annual compliance reports to the City. These reports shall
document the occupancy and show whether Applicant is in compliance with tenant
eligibility requirements.
5 - VILLE 1659
Applicant: Ville 1659 LLC
Address: 1659 W North Temple
Funding Request: $2,500,000
Funding Recommendation: $2,000,000
Recommended Conditions - to be established through a 30-year minimum deed
restriction or restrictive covenant:
• The project shall provide housing for individuals that are chronically homeless, homeless,
and at-risk of becoming homeless.
• Residual cashflow shall be recommitted to operations of the project.
• Applicant shall develop and maintain a project with a minimum of 197 affordable
housing units that are restricted by rent and occupancy, as follows:
o Tenants must have an annual income that is 30% or below of the area median
income for Salt Lake City Utah, HUD Metro FMR Area as adjusted for household
size.
o Individuals who have been homeless for the longest periods of time or who
demonstrate the highest vulnerability utilizing the VISPDAT (Vulnerability
Index–Service Prioritization Decision Assistance Tool) or similar assessment are
given priority.
o The annualized rent per unit shall be set forth in a written lease and shall not
exceed the current Fair Market Rent as established by the U.S. Department of
Housing and Urban Development (“HUD”). The intent is to provide housing for
persons at or below 30% AMI who have a tenant-based housing voucher, thereby
tenants are paying no more than 30% of their income for housing.
o If project-based vouchers are obtained, tenants shall pay no more than 30% of
their income toward rent.
• Applicant shall ensure that prospective tenants have gone 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.
• Applicant shall enter any new resident into the Homeless Management Information
System (“HMIS”) coordinated entry system.
• The project shall include supportive services to assist homeless persons in transitioning
from homelessness, and to promote the provision of supportive housing to enable
residents to live as independently as possible. Supportive services shall 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.
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• Applicant must submit annual compliance reports to the City. These reports shall
document the occupancy and show whether Applicant is in compliance with tenant
eligibility requirements.
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EXHIBIT “B”
HHGF Council Allocations