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Transmittal - 1/10/2023SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director DATE: PREPARED BY: RE: REDEVELOPMENT AGENCY of SALT LAKE CITY STAFF MEMO December 23, 2022 Tracy Tran, Kate Werrett, and Austin Taylor, RDA Project Managers Consideration and Adoption of a Resolution Approving Funding Allocations for Financing through a Notice of Funding Availability for the Housing Development Loan Program REQUESTED ACTION: Consider approving affordable housing funding allocations as selected through a Notice of Funding Availability for the Housing Development Loan Program POLICY ITEM: Affordable Housing – Housing Development Loan Program BUDGET IMPACTS: $6,0000,000 of RDA funds set aside for affordable housing EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City (“RDA”) recently issued a Notice of Funding Availability (“NOFA”) to solicit applications for $6 million available through the Housing Development Loan Program (“HDLP”) to incentivize the development and preservation of affordable housing. These funds are available to projects located anywhere within Salt Lake City municipal boundaries. After the release of the NOFA, an additional $2.36 million became available to potentially include in this HDLP funding offering, subject to consideration and approval by the RDA Board of Directors (“Board”). Due to the number of applications received for funding, RDA staff recommends that the Board incorporate the $2.36 million within this round of the HDLP. If the Board determines to incorporate the $2.36 million, a total of $8.36 million will be available to fund these applications. Guiding Policy The HDLP is being administered pursuant to the Housing Allocation Funds Policy (“Funds Policy”), resolution R-1-2022, and the Housing Development Loan Program Policy (“HDLP Policy”), resolution R-2-2022. The Funds Policy establishes policies for allocating and directing resources for the development and preservation of housing by various funding sources. Highlights of the Funds Policy include: •Housing Funds: The Policy establishes four housing funds based on fund source. The revenues, expenditures, interest, and payments for each fund source shall be separately accounted for to ensure the RDA control and oversight to comply with statutory requirements. •Annual Budgeting Process: The policy provides that on an annual basis, the RDA shall present 1 for the Board’s consideration a Housing Development Funding Strategy that projects revenues for the upcoming fiscal year and proposes funding priorities and allocations. This will allow the RDA to be flexible to address current needs, leverage current opportunities, coordinate with other city resources and allow funding priorities to align with evolving plans and policies. The HDLP provides low-cost financial assistance to incentivize the development and preservation of affordable housing within Salt Lake City municipal boundaries. The HDLP Policy provides a centralized application, underwriting, and approval process regardless of the fund source and also features: • Funding allocations and priorities determined on an annual basis. The funding priorities for these funds were based on the FY2022-23 Annual Housing Funding Priorities. • The transparent administration of funds through a Notice of Funding Availability (NOFA) process. Revenue from various funds may be combined into a consolidated NOFA or a NOFA may be issued for a specific funding source. NOFAs could be offered on an annual basis or multiple times per year and can be competitive or open-ended depending on availability of funds, priorities, and demand. • A standardized process for approving applications and a uniform set of underwriting policies. FY2022-2023 Annual Priorities In April 2022, the Board adopted the FY2022-2023 Annual Housing Funding Priorities. These priorities included new Threshold Requirements for the HDLP. This HDLP application cycle is the first time these two thresholds (including the new Sustainable Development Policy requirements) were required of development projects. Staff confirms that every application meets or will meet the Threshold Requirements. The paragraphs below detail this year’s Threshold Requirements; projects are required to include at least one of the following options: • Deeply Affordable Housing Threshold Requirement o Policy Objective: Expand the availability of units for extremely low-income households, thereby providing housing options for individuals or families that are homeless or at risk of homelessness. o HDLP Implementation: To meet the RDA’s deeply affordable threshold, at least 10% of the total residential units shall be income and rent restricted to households earning 40% of the area median income (“AMI”) and below as established by the U.S. Department of Housing and Urban Development (“HUD”). These units will be rent and income deed restricted. • Family Housing Threshold Requirement o Policy Objective: 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. o HDLP Implementation: For a development to qualify for these funds, a minimum of 10% of the total residential units shall have three or more bedrooms and shall be income and rent restricted to those earning 60% AMI and below, with AMI limits as established by HUD. 2 Application Submissions Pursuant to the policies, the RDA administered a transparent application process that resulted in eleven (11) requests; however, one application was withdrawn during the review process. Requests for funding total $16,760,000 – refer to Attachment A: Applications Overview, Attachment B: Map of Project Locations and Attachment D: Project Summary Sheets for additional information. The RDA has evaluated the application submittals and the RDA Finance Committee (“Committee”) has recommended specific applications for funding. This memorandum includes a summary of application submittals and the Committee’s recommendations for the Board’s consideration and determination of funding allocations. ANALYSIS & ISSUES: Below is an overview of the HDLP application process: I. Application Process Applications were solicited with a NOFA released on September 6, 2022. A copy of the 2022 HDLP Annual Affordable Housing Funds Guidelines + Application Handbook that applicants used to apply can be found here. On September 16, 2022, RDA staff hosted a virtual information session to provide an overview of the HDLP application, requirements, and selection process. Staff recorded the video and posted the video on the RDA website for those unable to attend to watch. Staff also utilized press releases, website and email communications, social media, and notifications through secondary outlets to publicize the HDLP NOFA. The RDA closed applications on October 24, 2022. However, staff re-opened the application period on October 31, 2022, for two weeks to clarify the RDA’s Sustainable Development Policy to ensure applicants adequately applied the correct requirements to their application. Staff closed the second application window on November 14, 2022 and began reviewing applications. II. Project Review As part of the application review process, RDA staff analyzed applications according to the HDLP Policy’s eligibility requirements and funding priorities set by the Board, which can be found in Attachment E: Project Priorities and Interest Rate Reductions. The housing priorities include the ability for an applicant to receive an interest rate reduction if priorities are met. All HDLP loans will be permanent loans with funds available to selected projects for construction and/or development uses. The RDA recognizes that the construction sources and uses for projects may not be the same as the permanent sources and uses and that the amount of debt that the HDLP loans are subordinated to may vary depending on the status of the projects. The applications were forwarded to the RDA Finance Committee for their review and recommendation. When evaluating applications, the Committee considered developer experience, the completeness/quality of the application, the project’s ability to meet HDLP Threshold 3 Requirements, the number of Project Priorities met, targeted AMIs, unit mix, community impact, and the financial and regulatory readiness of the proposed project. III. Funding Allocations, Conditional Commitment, and Loan Closing Pursuant to the Policy, the Board will make the final determination of applications to fund. Subsequently, the RDA will issue a conditional commitment letter to those applications that are selected for funding. The conditional commitment letter between the RDA and the applicant will contain the covenants, terms and conditions upon which the RDA will provide financial assistance to the proposed project once financial, legal, regulatory, and design approvals are obtained. Prior to closing on a loan, RDA staff will ensure that the project is financially viable, underwriting standards are met, and the use of public funds is necessary for the project to succeed. RDA STAFF REVIEW: As part of the initial application review process, RDA Staff verified that all applications meet the Threshold Requirements laid out in the 2022 HDLP Annual Affordable Housing Funds Guidelines + Application Handbook. RDA staff affirms that all applications meet or will meet the Threshold Requirements. An overview of submitted applications in the order received is as follows: PROJECT DEVELOPER FUNDING REQUEST PREVIOUS RDA LOAN COMMITMENTS CURRENT REQUEST 1. Pauline Downs* Brent Murray - $199,999 2. Victory Heights Phase 1 BCG Holdings/Jonathan Hardy - $1,865,000 3. Victory Heights Phase 2 BCG Holdings/Jonathan Hardy - $280,000 4. Atkinson Stacks Housing Authority/Daniel Nackerman - $2,500,000 5. Book Cliffs Lodge** Housing Authority/Daniel Nackerman $1,000,000 $540,000 6. Citizens West 2 GIV Development/Chris Parker - $1,850,000 7. Citizens West 3 GIV Development/Chris Parker - $1,200,000 8. Ville 9 Ville 9, LLC /Keith Warburton - $1,700,000 9. Ville 1659 Ville Property Management/Keith Warburton - $1,825,000 10. Liberty Corner Cowboy Partners/Zachary Jones - $3,000,000 11. 9Ten West Great Lakes Capital/Karl Niederer - $2,000,000 TOTAL FUNDING REQUEST: $16,760,000 AVAILABLE FUNDING: $6,000,000*** *This application was withdrawn due to a cancellation of the project. **This project has received other RDA loan commitment in a previous year. To streamline the administration of 4 these loans, the loans will be consolidated if approved by the Board. *** Funds from a previous HDLP application may be available to include as an additional funding source. The Board will need to approve this addition, if desired. This may provide an additional $2.36 million of funding. A more in-depth overview of 2022 HDLP applications can be found in Attachment A: Applications Overview. RDA FINANCE COMMITTEE RECOMMENDATION: On December 21, 2022, the Committee made recommendations regarding all applications. The Committee provided two tiers of recommendations to the Board. The first tier includes funding recommendations with the $6 million in committed funds, and the second tier includes funding recommendations for the additional $2.36 million if the Board decides to incorporate those funds into this round. In addition, the Finance Committee recommended that if the Board decides fund the projects listed, for projects that do not receive 9% in the upcoming round, in order to ensure funds are not being held up while waiting for 9% tax credits, those funds shall be returned to the RDA and applicants will need to reapply. Refer to Attachment C: RDA Finance Committee Funding Recommendation for recommendation detail. PREVIOUS BOARD ACTION: • June 14, 2022 and November 10, 2022: The Board adopted the FY2022-23 budget, which allocated $4,230,000 to the Housing Development Loan Program funds included in this year’s affordable housing NOFA. Approximately $2,770,000 of carryover from previous years was available to lend, this amount was reduced to $1,770,000 after $1,000,000 was allocated to a development project in Budget Amendment #2. • April 12, 2022: The Board adopted the Affordable Housing Funding Priorities for Fiscal Year 2022-23. • March 8, 2022: The Board adopted revisions to the Housing Development Loan Program Policy to direct review of applications to the RDA Finance Committee. • February 9, 2022: The Board adopted revisions to the Housing Allocation Funds Policy. • March 2021: The Board adopted the Housing Development Loan Program Policy. • February 2021: The Board adopted the Housing Allocation Funds Policy. ATTACHMENTS: A. Applications Overview B. Map of Project Locations C. RDA Finance Committee Funding Recommendation D. Project Summary Sheets E. Project Priorities and Interest Rate Reductions F. HDLP 2022 Funding Allocation Resolution 5 Project 2 - Victory Heights 1 BCG Holdings 3 - Victory Heights 2 BCG Holdings 4 - Atkinson Stacks HAME 5 - Book Cliffs Lodge HAME 6 - Citizens West 2 Giv Development 7 - Citizens West 3 Giv Development 8 - Ville 9 Ville Property Mgmt 9 - Ville 1659 Ville Property Mgmt 10 - Liberty Corner Cowboy Partners 11 - 9Ten West Great Lakes Capital TOTAL Address 1060 E 100 S 1060 E 100 S 543 S 500 W 1159 S West Temple 509 W 300 N 509 W 300 N 1025 N 900 W 1659 W North Temple 265 W 1300 S 910 W North Temple RDA Loan Request RDA Request 1,865,000$ 280,000$ 2,500,000$ 540,000$ 1,850,000$ 1,200,000$ 1,700,000$ 1,825,000$ 3,000,000$ 2,000,000$ 16,760,000$ Previous RDA Commitments -$ -$ -$ 1,000,000$ -$ -$ -$ -$ -$ -$ 1,000,000$ Total RDA Request 1,865,000$ 280,000$ 2,500,000$ 1,540,000$ 1,850,000$ 1,200,000$ 1,700,000$ 1,825,000$ 3,000,000$ 2,000,000$ 17,760,000$ Total Project Cost 18,897,926$ 14,731,682$ 29,805,966$ 15,446,701$ 23,083,403$ 12,926,250$ 17,156,729$ 18,250,000$ 99,718,091$ 29,221,096$ RDA Loan to Cost 9.9%1.9%8.4%10.0%8.0%9.3%9.9%10.0%3.0%6.8%7.7%Average Other City Funds Committed -$ -$ -$ -$ -$ -$ -$ 2,500,000$ -$ -$ 2,500,000$ Interest Rate (w/ project priority deductions)1.0%1.0%1.0%1.0%1.0%1.0%2.5%2.0%2.0%2.0%1.5%Average Term 40 40 40 40 40 40 40 40 40 16 Amortization 40 40 40 40 40 40 40 40 40 30 Repayment Terms Hard Hard Hard Hard Hard Hard Cash Flow Cash Flow Cash Flow Cash Flow Financial Metrics Owners' Equity -$ -$ 8,000,000$ -$ -$ -$ -$ 2,066,378$ 9,853,234$ -$ 19,919,612$ Deferred Developer Fee %44%0%0%9%20%23%0%0%100%80%27%Average Tax Credits Yes, 9%, 2022 Yes, 9%, 2022 Applying for 2023 Applying for 2023 Yes, 9%, 2022 Yes, 9%, 2022 Yes, 4%, 2021 No Applying for 2023 Applying for 2023 Cost per Unit 377,959$ 387,676$ 261,456$ 280,849$ 461,668$ 430,875$ 263,950$ 92,640$ 498,590$ 166,978$ 322,264$ Average Cost per SF 472$ 398$ 718$ 449$ 312$ 413$ 455$ 304$ 265$ 376$ 416$ Average Threshold Requirements Family-Sized Affordable or Deeply Affordable Units Both Both Deeply Affordable Both Both Both Deeply Affordable Deeply Affordable Both Deeply Affordable Energy Star Score 90+Yes, 100 Yes, 100 Yes, 100 Yes, 95 Yes, 100 Yes, 100 Cond. of Approval Cond. of Approval Cond. of Approval Cond. of Approval 100% Electric Yes Yes Yes Yes Yes Yes Cond. of Approval Cond. of Approval Cond. of Approval Cond. of Approval Housing Unit Details 40% AMI and Below Studio 9 6 114 - 8 4 4 197 - 18 360 1bd - - - 31 - - 3 - - - 34 2bd - - - - - - - - 22 - 22 3bd 1 1 - 7 1 1 - - 23 - 34 4bd - 1 - - 1 1 - - 10 - 13 60%-41% AMI Studio 21 20 - - 16 17 31 - - 142 247 1bd - - - 7 - - 27 - - 15 49 2bd - - - - - - - - 75 - 75 3bd 9 7 - 2 18 5 - - 57 - 98 4bd - 3 - - 6 2 - - 13 - 24 Market Rate Studio - - - - - - - - - - - 1bd - - - 7 - - - - - - 7 2bd - - - - - - - - - - - 3bd - - - 1 - - - - - - 1 4bd - - - - - - - - - - - Total 40 38 114 55 50 30 65 197 200 175 964 Priorities & Interest Rate Reductions Priorities: The four Funding Priorities determined by the FY2022-2023 Annual Housing Funding Priorities include: Family Housing, Target Populations, Homeownership, and Missing Middle/Unique Housing Type. These Funding Priorities receive a weighted ranking of 3 points each as compared to other priorities which receive 1 ranking point each for inclusion in projects. Interest Rate Reductions: Projects receive a 0.5% interest rate reduction for each included priority. Sustainability allows for a 1% or 2% reduction. The maximum reduction per development application is 2%. Family Housing 3 3 3 3 3 3 Target Populations 3 3 3 3 3 3 3 3 Homeownership Missing Middle/Unique Housing Type 3 3 3 3 Transportation Opportunities 1 1 1 1 1 1 1 1 Neighborhood Safety 1 1 1 Expand Opportunity Architecture and Urban Design 1 1 1 1 1 1 1 Commercial Vitality 1 1 1 1 1 1 Historic Preservation/Adaptive Reuse 1 1 1 1 Public Art 1 1 1 1 1 Sustainability 1 NOFA Ranking Weight Total 10 10 8 8 10 10 5 9 13 5 8.8 Average ATTACHMENT A: APPLICATIONS OVERVIEW Note: Application 1 is not included in this summary because the application was withdrawn. 6 ! ! ! !! ! ! ! ! ! ! ! ! ! ! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! ! ! !!!!!!!!!!!!!!!!!!!!! ! ! ! ! ! ! ! ! ! !!!!!!!!!! ! ! ! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!!!!!!!!!!!!!!!!!! ! ! ! ! ! ! ! ! ! ! !!!!!!!!!! ! ! ! ! ! ! ! ! ! ! !!!!!!!! ! !!! ! ! ! ! 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!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! !!!!!!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!!!! ! !!! ! ! ! ! ! ! ! ! ! ! ! !!! ! ! !! ! ! ! ! ! ! ! ! ! ! !!!!!!!!!! ! ! ! ! ! !!!!!!!!! ! ! ! ! ! ! ! ! ! ! !!!!! ! !!!! ! ! ! ! ! !! ! ! ! ! ! !!!!! ! ! !!! ! !!! ! ! ! ! !!!!!!!!!! ! !!!!!!!! ! ! ! !!! !! !! ! ! ! ! ! ! !! ! !! !!!! ! ! !! ! ! ! ! ! ! ! ! !!! ! ! ! ! ! ! ! !! ! ! ! ! !!! ! ! ! ! ! ! ! ! ! !! !! ! ! !!!!! ! ! !!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ¯0 0.25 0.5 0.75 10.125 Miles 8 - Ville 9 6, 7 - Citizens West 2 & 3 11 - 9Ten West 2. 3 - Victory Heights 1 & 2 Attachment B: Map of Project Locations Map 1 of 2 7 ! ! ! !! ! ! ! ! ! ! ! ! ! ! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! ! ! !!!!!!!!!!!!!!!!!!!!!! ! ! ! ! ! ! ! ! !!!!!!!!!! ! ! ! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 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! ! ! ! ! ! ! ! ! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! !! ! ! !!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! !!!!!!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!!!! ! !!! ! ! ! ! ! ! ! ! ! ! ! !!! ! ! !! ! ! ! ! ! ! ! ! ! ! !!!!!!!!!! ! ! ! ! ! !!!!!!!!! ! ! ! ! ! ! ! ! ! ! !!!!! ! !!!! ! ! ! ! ! !! ! ! ! ! ! !!!!! ! ! !!! ! !!! ! ! ! ! !!!!!!!!!! ! !!!!!!!! ! ! ! !!! !! !! ! ! ! ! ! ! !! ! !! !!!! ! ! !! ! ! ! ! ! ! ! ! !!! ! ! ! ! ! ! ! !! ! ! ! ! !!! ! ! ! ! ! ! ! ! ! !! !! ! ! !!!!! ! ! !!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ¯0 0.25 0.5 0.75 10.125 Miles 9 - Ville 1659 4 - Atkinson Stacks 5 - Book Cliffs Lodge 10 - Liberty Corner Map of Project Locations Map 2 of 2 8 PROJECT/APPLICANT ADDRESS PROJECT PRIORITIES/INTEREST RATE REDUCTION AND WEIGHTED NOFA RANKING** FUNDING REQUEST PRELIMINARY TERMS* HDLP COMMITTED FUNDS: $6M POSSIBLE ADDITIONAL HDLP FUNDS: $2.36M TOTAL FUNDING RECOMMENDATION FUNDING RANKING 2 -Victory Heights 1 BCG Holdings 3 - Victory Heights 2 BCG Holdings 4 - Atkinson Stacks*** HAME 5 - Book Cliffs Lodge*** HAME 6 - Citizens West 2 Giv Development 7 - Citizens West 3 Giv Development 8 - Ville 9 Ville Property Mgmt 9 - Ville 1659 Ville Property Mgmt 10 - Liberty Corner*** Cowboy Partners 11 - 9Ten West Great Lakes Capital TOTAL $16,760,000 $6,000,000 $2,360,000 $8,360,000 Funds Availability $6,000,000 6,000,000$ Recommended Funding: HDLP Committed Funds $2,360,000 $0 Funds Remaining: HDLP Committed Funds $8,360,000 2,360,000$ Recommended Funding: Possible Additional HDLP Funds $0 Funds Remaining: Possible Additional HDLP Funds 8,360,000$ Recommended: Total Potential HDLP Funds $0 Funds Remaining - Total Potential HDLP Funds HDLP Committed Funds Possible Additional HDLP Funds Total Potential HDLP Funds 8 $540,000 7 $1,865,000 Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Architecture & Urban Design: 1 Adaptive Reuse: 1 Public Art: 1 TOTAL: 10 1 $280,000 2 $500,000 Target Populations: 3 Unique Housing Types: 3 Architecture & Urban Design: 1 Sustainability: 1 TOTAL: 8 Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 TOTAL: 8 1060 E 100 S $280,000 $280,000 Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Architecture & Urban Design: 1 Adaptive Reuse: 1 Public Art: 1 TOTAL: 10 1060 E 100 S $1,865,000 $1,865,000 1159 S West Temple $540,000 $540,000 543 S 500 W $2,500,000 $500,000 $0 Unique Housing Type: 3 Commercial Vitality: 1 Adaptive Reuse: 1 TOTAL: 5 Target Populations: 3 Unique Housing Type: 3 Transportation Opportunities: 1 Commercial Vitality: 1 Adaptive Reuse: 1 TOTAL: 9 3 509 W 300 N $1,200,000 $1,200,000 $1,200,000 4 509 W 300 N $1,850,000 $1,850,000 $1,850,000 Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 10 Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 10 FUNDING RECOMMENDATIONS *Final Terms shall comply with the requirements, standard loan terms and conditions, interest-rate reductions, and all other details laid out within the 2022 Housing Development Loan Program (HDLP) Guidelines. Changes to repayment type may occur (hard repayment versus cash flow repayment) and shall be based on requirements listed in the HDLP Guidelines or if required by a senior lender. Changes in repayment type will cause a change in the base interest rate. Repayment priority and lien position shall be based on the size of the loans. 6 910 W North Temple $1,125,000 9/10 1659 W North Temple $1,825,000 $805,000 $195,000 $1,000,000 $2,000,000 265 W 1300 S $3,000,000 $1,125,000 Family Housing: 3 Target Populations: 3 Missing Middle: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 TOTAL: 13 5 1025 N 900 W $1,700,000 Funds Recommended by Finance Committee 1% interest rate, 40-year term, 40-year amortization, hard repayments 1% interest rate, 40-year term, 40-year amortization, hard repayments 1% interest rate, 40-year term, 40-year amortization, hard repayments 1% interest rate, 40-year term, 40-year amortization, hard repayments 1% interest rate, 40-year term, 40-year amortization, hard repayments 1% interest rate, 40-year term, 40-year amortization, hard repayments 2.5% interest rate, 40-year term, 40-year amortization, cash flow repayment 2% interest rate, 40-year term, 40-year amortization, cash flow repayment 2% interest rate, 40-year term, 40-year amortization, cash flow repayment ***Finance Committee Recommendation: If these projects do not receive 9% tax credits in the next Utah Housing Corporation allocation cycle, these funding commitments shall be returned to the RDA's Housing Development Loan Program. Transportation Opportunities: 1 Neighborhood Safety: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 5 **Projects receive a 0.5% interest rate reduction for each included priority. Sustainability allows for a 1% or 2% reduction. The maximum reduction per development is 2%. The interest rate is calculated as follows: Base Interest Rate minus (-) Interest Rate Reductions (up to 2%) = proposed interest rate; Base interest rate shall be locked within a month of closing. Projects shall maintain project priorities and the same weighted score at closing. Deviation from project priorites met may require Board approval. $0 9/10 2% interest rate, 16-year term, 30-year amortization, cash flow repayment Attachment C: RDA Finance Committee Funding Recommendation The RDA Finance Committee recommends that HDLP funding be allocated as shown in the table in order of priority ranking.: 9 Attachment D: Project Summary Sheets 10 PROJECT NAME: 2 - VICTORY HEIGHTS PHASE 1 ADDRESS: 1060 EAST 100 SOUTH OVERVIEW Developer BCG Holdings Request Type HDLP Loan Project Type Adaptive Reuse Existing Land Use Office RDA FUNDING REQUEST Funding Request $1,865,000 Total Project Cost $18,897,926 RDA Loan to Cost 9.9% PROPOSED TERMS Interest Rate 1% Term, Amortization 40 Year, 40 Year Repayment Terms Hard Repayments Lien Priority Subordinate to senior construction & permanent debt HDLP THRESHOLD REQUIREMENTS & PRIORITIES Family-Sized Units and/or Deeply Affordable Units Family-Sized Units and Deeply Affordable Units Sustainability: Energy Star Score of 90+ Yes, 100 100% Electric? Yes Priorities Met Family Housing Target Populations Transportation Opportunities Architecture & Urban Design Adaptive Reuse Public Art LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Yes Tax Credits Reserved (Y/N) Yes, 2022, 9% HOUSING UNITS Bedroom Count Total Units Market Rate 41-60% AMI <40% AMI Studio 40 - 31 9 1-Bed - - - - 2-Bed - - - - 3-Bed 10 - 9 1 Total 50* - 40 10 *Working with IRC and VOA to set aside 18 units for formerly homeless, physically disabled, and refugee populations TIMELINE Construction Start: 10/2023 Construction Completion: 10/2024 CONSTRUCTION DEBT AHEAD OF RDA PERMANENT SOURCES USES Use Amount % of Cost Land $5,717,140 30.3% Hard Costs $9,420,061 49.8% Public Art Contribution $27,975 0.1% Soft Costs $762,070 4.0% Developer Fee $1,319,700 7.0% Financing Expense $884,560 4.7% Contingency $511,902 2.7% Reserves $254,518 1.3% Total Uses $18,897,926 100% Source Amount % of Total Senior Construction Debt $4,675,878 25% Source Amount % of Cost Senior Debt $1,772,191 9.4% RDA Loan $1,865,000 9.9% OWHLF $1,000,000 5.3% LIHTC Investor $13,650,735 72.2% Utility Rebates $30,000 0.2% Deferred Developer Fee $580,000 3.1% Total Sources $18,897,926 100% 11 PROJECT NAME: 2 - VICTORY HEIGHTS PHASE 1 ADDRESS: 1060 EAST 100 SOUTH PROJECT SUMMARY Explanation on Phase 1 and 2: “100% of Phase 1 is included in the existing medical building. Phase 2 consists entirely of the new portion and has a few units on the ground floor and upper floor of the existing building. From the outside, the project will act as if everything is one single project (including city permitting, property management, contracts etc.). Due to the tax credit allocation cap, UHC allowed projects to submit for 2 LIHTC allocations for this previous cycle.” RDA Note: Timeline for Phase 1 and 2 will be the same. From Developer: “Victory Heights Phase 1 Apartments is a mixed-income, sustainable, and historically significant development located on the East side of Salt Lake City. The project is part of a larger restoration in a historic district located at 1060 E 100 S, Salt Lake City, and will be a beacon of affordable housing in the rapidly unattainable east side of Salt Lake City. A neighborhood cornerstone, the project is essential in paving the way for affordability and sustainability in the city. Victory Heights will incorporate an array of amenities that will benefit the lives of its residents including a dedicated covered parking stall, raised garden beds, and shared outdoor space. Located within walking distance of the project is an elementary school, senior center, a core bus route, and a public park. The project will also be fully electric, contributing to better air-quality in the area and improving the health and wellbeing of its tenants. The units will not only be affordable, but will be built within the criteria for Enterprise Green Communities 2020. The focus of the layouts will be on a trauma-informed design, being informed by Volunteers of America and their experience in low-income housing.” DEVELOPER SUMMARY From Developer: “The project is being developed by BCG ARC Fund and Volunteers of America with Giv Development as a development consultant. VOA, on a national scale, is one of the largest nonprofit providers of affordable housing in the country. In Salt Lake City, their mission of providing low-income housing led to the recently completed Denver Apartments PSH where they successfully utilized the Low-Income Housing Tax Credit program administered by Utah Housing Corp. BCG ARC Fund is owner of the currently under construction Post District mixed-use project in Salt Lake City. The experience gained through successful development and operation of projects spanning everything from Denver Apartments PSH to the high-end Post District show the project team's capacity to renovate historic structures and bring necessary affordability to this East-side location. Giv Development has successfully developed or consulted on over a thousand affordable housing units utilizing the Low-Income Housing Tax Credit, OWHLF, and SLC loan programs along the Wasatch Front.” 12 PROJECT NAME: 2 - VICTORY HEIGHTS PHASE 1 ADDRESS: 1060 EAST 100 SOUTH SITE MAP PROJECT RENDERINGS 13 PROJECT NAME: 3 - VICTORY HEIGHTS Phase 2 ADDRESS: 1060 EAST 100 SOUTH OVERVIEW Developer BCG Holdings Request Type Construction to Permanent Project Type Adaptive Reuse Existing Land Use Office RDA FUNDING REQUEST Funding Request $280,000 Total Project Cost $14,731,682 RDA Loan to Cost 1.9% PROPOSED TERMS Interest Rate 1% Term, Amortization 40 Year, 40 Year Repayment Terms Hard Repayments Lien Priority Subordinate to senior construction & permanent debt HDLP THRESHOLD REQUIREMENTS & PRIORITIES Family-Sized Units and/or Deeply Affordable Units Family-Sized Units and Deeply Affordable Units Sustainability: Energy Star Score of 90+ Yes, 100 100% Electric Yes Priorities Met Family Housing Target Populations Transportation Opportunities Architecture & Urban Design Adaptive Reuse Public Art LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Yes Tax Credits Reserved (Y/N) Yes, 2022, 9% HOUSING UNITS Bedroom Count Total Units Market Rate 41-60% AMI <40% AMI Studio 26 - 20 6 1-Bed - - - - 2-Bed - - - - 3-Bed 8 - 7 1 4-Bed 4 - 3 1 Total 38* - 30 8 *Working with IRC and VOA to set aside 16 units for formerly homeless, physically disabled, and refugee populations TIMELINE Construction Start: 10/2023 Construction Completion: 10/2024 CONSTRUCTION DEBT AHEAD OF RDA PERMANENT SOURCES USES Use Amount % of Cost Land $1,982,860 13.5% Hard Costs $8,579,514 58.2% Public Art Contribution $4,200 0.03% Soft Costs $1,027,130 7.0% Developer Fee $1,510,366 10.3% Financing Expense $952,103 6.5% Contingency $479,186 3.3% Reserves $196,323 1.3% Total Uses $14,731,709 100.0% Source Amount % of Total Senior Construction Debt $4,675,878 25% Source Amount % of Cost Senior Debt $2,415,333 16.4% RDA Loan $280,000 1.9% OWHLF - - LIHTC Investor $12,013,549 81.5% Utility Rebates $22,800 0.2% Deferred Developer Fee - - Total Sources $14,731,682 100.0% 14 PROJECT NAME: 3 - VICTORY HEIGHTS Phase 2 ADDRESS: 1060 EAST 100 SOUTH PROJECT SUMMARY Developer Explanation of Phase 1 and 2: “100% of Phase 1 is included in the existing medical building. Phase 2 consists entirely of the new portion and has a few units on the ground floor and upper floor of the existing building. From the outside, the project will act as if everything is one single project (including permitting, property management, contracts, etc.)” RDA Note: Timeline for Victory Heights Phase 1 and 2 will be the same. From Developer: “Victory Heights Phase 2 Apartments is a mixed-income, sustainable, and historically significant development located on the East side of Salt Lake City. The project is part of a larger restoration in a historic district located at 1060 E 100 S, Salt Lake City, and will be a beacon of affordable housing in the rapidly unattainable east side of Salt Lake City. A neighborhood cornerstone, the project is essential in paving the way for affordability and sustainability in the city. Victory Heights will incorporate an array of amenities that will benefit the lives of its residents including a dedicated covered parking stall, raised garden beds, and shared outdoor space. Located within walking distance of the project is an elementary school, senior center, a core bus route, and a public park. The project will also be fully electric, contributing to better air-quality in the area and improving the health and wellbeing of its tenants. The units will not only be affordable, but will be built within the criteria for Enterprise Green Communities 2020. The focus of the layouts will be on a trauma-informed design, being informed by Volunteers of America and their experience in low-income housing.” DEVELOPER SUMMARY From Developer: “The project is being developed by BCG ARC Fund and Volunteers of America with Giv Development as a development consultant. VOA, on a national scale, is one of the largest nonprofit providers of affordable housing in the country. In Salt Lake City, their mission of providing low-income housing led to the recently completed Denver Apartments PSH where they successfully utilized the Low-Income Housing Tax Credit program administered by Utah Housing Corp. BCG ARC Fund is owner of the currently under construction Post District mixed-use project in Salt Lake City. The experience gained through successful development and operation of projects spanning everything from Denver Apartments PSH to the high-end Post District show the project team's capacity to renovate historic structures and bring necessary affordability to this East-side location. Giv Development has successfully developed or consulted on over a thousand affordable housing units utilizing the Low-Income Housing Tax Credit, OWHLF, and SLC loan programs along the Wasatch Front.” 15 PROJECT NAME: 3 - VICTORY HEIGHTS Phase 2 ADDRESS: 1060 EAST 100 SOUTH SITE MAP PROJECT RENDERINGS 16 PROJECT NAME: 4 - Atkinson Stacks ADDRESS: 543 South 500 West OVERVIEW Developer Housing Assistance Management Enterprise (HAME) Request Type HDLP Loan Project Type New Construction Existing Land Use Vacant RDA FUNDING REQUEST Funding Request $2,500,000 Total Project Cost $29,805,966 RDA Loan to Cost 8.4% PROPOSED TERMS Interest Rate 1.0% Term, Amortization 40 years, 40 years Repayment Terms Hard Lien Priority Subordinate to senior construction & permanent debt HDLP THRESHOLD REQUIREMENTS & PRIORITIES Family-Sized Units and/or Deeply Affordable Units Deeply Affordable Units 90+ Energy Star Score Yes, 100 100% Electric Yes Priorities Met Target Populations Unique Housing Types Architecture, Urban Design Sustainability HOUSING UNITS Bedroom Count Total Units Market Rate 41-60% AMI <40% AMI Studio 114 - - 114 Total 114* - - 114 *All units targeted to disabled and homeless individuals who require housing retention services. TIMELINE Construction Start 2023* Construction Completion 2/2024* *The building is partially complete. HAME is purchasing the building partially completed, completing it, and operating it. CONSTRUCTION DEBT AHEAD OF RDA Source Amount % of Cost Senior Construction Debt $19,817,413 66.4% PERMANENT SOURCES Source Amount % of Total Senior Debt $3,138,976 10.5% RDA Loan $2,500,000 8.4% OWHLF $1,000,000 3.4% LIHTC Investor $14,098,590 47.3% Owner Equity* $9,000,000 30.2% Deferred Developer Fee - - Utility Rebates $68,400 0.2% Total $29,805,966 100% *Owner Equity comes from a $9m grant from the Utah Office of Homeless Services’ Deeply Affordable Housing Fund USES Use Amount % of Cost Hard $24,141,789 81.0% Soft $899,525 3.0% Developer Fee $2,500,000 8.4% Financing $760,432 2.6% Contingency $775,000 2.6% Reserves $729,220 2.4% Total $29,805,966 100% LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Y Tax Credits Reserved (Y/N) N, Applying for 2023 17 PROJECT NAME: 4 - Atkinson Stacks ADDRESS: 543 South 500 West PROJECT SUMMARY From Developer: “This development will have full access to the ground floor clinic at Pamela’s place. HASLC/HAME contracted with Sacred Circle Health Care (SCHC), a Federally Qualified Health Center, to offer services for all 100 apartments at Pamela’s Place at their onsite clinic. These services may include occupational, mental health, social, housing, and financial case management in addition to general continuing case management. Our current contract is supplied as an attachment. The new development will include a breezeway that connects the two locations relocating the entrance for both buildings as part of this structure. This connection will offer all the amenities incorporated in the original building to the addition. These include, clinic space, onsite fitness space, community room, kitchen, and outdoor area which will be expanded with this addition. Each floor of the new development will have laundry facilities.” RDA Staff Note: The Housing Authority of Salt Lake City’s Atkinson Stacks project is an acquisition and repositioning of Eco Box Fabricators’ Box 500 project—an apartment building built out of shipping containers in which the construction has started, but has not been completed yet. DEVELOPER SUMMARY From Developer: “HASLC/HAME is a seasoned real estate developer with over 50 years of expertise and almost 1800 units in its inventory. These apartments offer housing for the homeless, market, seniors, survivors of domestic violence, and those with disabilities.” SITE MAP 18 PROJECT NAME: 4 - Atkinson Stacks ADDRESS: 543 South 500 West SITE PLAN Atkinson Stacks Pamela’s Place 19 PROJECT NAME: 4 - Atkinson Stacks ADDRESS: 543 South 500 West PROJECT RENDERINGS Atkinson Stacks Pamela’s Place 20 PROJECT NAME: 5 - Book Cliffs Lodge ADDRESS: 1159 South West Temple OVERVIEW Developer Housing Assistance Management Enterprise Request Type HDLP Loan Project Type New Construction Existing Land Use Vacant RDA FUNDING REQUEST Funding Request $540,000 Previous RDA Commitment $1,000,000 Total Project Cost $15,446,701 RDA Loan to Cost 10.0% PROPOSED TERMS Interest Rate 1.0% Term, Amortization 40 years, 40 years Repayment Terms Hard Lien Priority Subordinate to senior construction & permanent debt HDLP THRESHOLD REQUIREMENTS & PRIORITIES Family-Sized Units and/or Deeply Affordable Units Family-Sized Units and Deeply Affordable Units 90+ Energy Star Score Yes, 95 100% Electric Yes Priorities Met Family Housing Target Populations Transportation Opportunities Neighborhood Safety HOUSING UNITS Bedroom Count Total Units Market Rate 41-60% AMI <40% AMI 1 Bed 45 7 7 31 3 Bed 10 1 2 7 Total 55* 8 9 38** *10 units set aside for persons experiencing homelessness and veterans *Mix of 25%, 30%, and 40% AMIs TIMELINE Construction Start 7/2023 Construction Completion 2/2025 CONSTRUCTION DEBT AHEAD OF RDA Source Amount % of Cost Senior Construction Debt $9,801,296 63.4% PERMANENT SOURCES Source Amount % of Total RDA Loans $1,540,000 10.0% OWHLF $500,000 3.2% LIHTC Investor $13,158,684 85.2% Owner Equity $0 0.0% Deferred Developer Fee $215,017 1.4% Utility Rebates $33,000 0.2% Total $15,446,701 100% USES Use Amount % of Cost Land $700,000 4.5% Hard $10,899,171 70.6% Soft $942,125 6.1% Developer Fee $1,475,245 9.6% Financing $477,107 3.1% Owner’s Contingency $493,215 3.2% Reserves $459,838 3.0% Total $15,446,701 100% LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Y Tax Credits Reserved (Y/N) N, Applying for 2023 21 PROJECT NAME: 5 - Book Cliffs Lodge ADDRESS: 1159 South West Temple PROJECT SUMMARY From Developer: “The Housing Authority of Salt Lake City is proposing a new 55-unit apartment complex named Book Cliffs Lodge. Book Cliffs Lodge will provide a mix of one-bedroom and three-bedroom units in an area of Salt lake City that has experienced substantial growth in recent years. The unit mix at Book Cliffs Lodge will be composed of 45 standard one-bedroom units and 10 three-bedroom units serving families. The development will provide a mix of 25%, 30%, 40%, and 50% of AMI rents, as well as 8 market rate units (7 one-bedroom units and 1 three-bedroom unit). The broad range of rent and income targeting will allow the development to address the community need. Additionally, through the tenant selection plan, the development is committed to setting aside 5 units for persons experiencing homelessness and 5 units for veterans. All apartments will be well equipped with amenities such as air conditioning, energy star appliances, microwaves and vent hoods, self-cleaning ovens, garbage disposals and water saving fixtures. The project is located at 1159 South West Temple in Salt Lake City, which will provide residents the convenience of living in close proximity to services, shopping, recreation, and employment. The site is within an easy walk to public transportation, including the Ball Park Station TRAX line, recreation and employment. Additionally, the site has achieved a walk-score of 83, or “very walkable” which will allow residents to accomplish most errands by foot if they choose. Within a half mile radius of the site, there are many restaurants, parks, grocery stores, and numerous employment opportunities. Project Design: Book Cliff Lodge Apartments is a .84-acre Multifamily Housing Development located on 1159 South West Temple, SLC, Utah 84101. The building is approximately 46,588 square feet, four story slab on grade wood construction and designed to meet both Energy Star and Enterprise Green Community standards. The building will provide 55 total units with 45 one-bedroom units and 10 three-bedroom units. Roof and parking storm water runoff will be managed on site with a rain garden system as approved by Salt Lake City. Landscaping will consist of native and drought tolerant plants. The building will include a mail area, leasing office, work out facility, wellness room, bicycle storage, patios for each unit and community kitchen for tenant use. The building will be designed to meet both Enterprise Green Communities and Energy Star certification as well as being equipped with electronic access cards and CCTV cameras for security and monitoring the premises.” DEVELOPER SUMMARY From Developer: “HASLC/HAME is a seasoned real estate developer with over 50 years of expertise and almost 1800 units in its inventory. These apartments offer housing for the homeless, market, seniors, survivors of domestic violence, and those with disabilities.” 22 PROJECT NAME: 5 - Book Cliffs Lodge ADDRESS: 1159 South West Temple SITE MAP 23 PROJECT NAME: 5 - Book Cliffs Lodge ADDRESS: 1159 South West Temple SITE PLAN 24 PROJECT NAME: 5 - Book Cliffs Lodge ADDRESS: 1159 South West Temple PROJECT RENDERINGS 25 PROJECT NAME: 6 - Citizens West 2 ADDRESS: 509 West 300 North OVERVIEW Developer Giv Development Request Type HDLP Loan Project Type New Construction Existing Land Use Owner-occupied Storage RDA FUNDING REQUEST Funding Request $1,850,000 Total Project Cost $23,083,403 RDA Loan to Cost 8.0% PROPOSED TERMS Interest Rate 1% Term, Amortization 40 years, 40 years Repayment Terms Hard Lien Priority Subordinate to senior construction & permanent debt HDLP THRESHOLD REQUIREMENTS & PRIORITIES Family-Sized Units and/or Deeply Affordable Units Family-Sized Units and Deeply Affordable Units 90+ Energy Star Score Yes, 100 100% Electric Yes Priorities Met Family Housing Target Populations Transportation Opportunities Architecture & Urban Design Commercial Vitality Public Art HOUSING UNITS Bedroom Count Total Units Market Rate 41-60% AMI <40% AMI Studio 24 - 16 8 3 Bed 19 - 18 1 4 Bed 7 - 6 1 Total 50* - 40 10** *18 total units set aside for formerly homeless, physically disabled, and refugee populations **5 units set aside for 25% AMI TIMELINE Construction Start 9/2023 Construction Completion 1/2025 CONSTRUCTION DEBT AHEAD OF RDA Source Amount % of Cost Senior Construction Debt $6,276,033 27.2% PERMANENT SOURCES Source Amount % of Total Senior Loan $2,810,102 12.2% RDA Loan $1,850,000 8.0% OWHLF $1,000,000 4.3% LIHTC Investor $16,993,301 73.6% Deferred Developer Fee $400,000 1.7% Utility Rebates $30,000 0.1% Total $23,083,403 100% USES Use Amount % of Cost Land $1,121,850 4.9% Hard $16,834,366 72.9% Soft $1,040,250 4.5% Developer Fee $2,030,303 8.8% Financing $847,265 3.7% Owner’s Contingency $927,105 4.0% Reserves $282,264 1.2% Total $23,083,403 100% LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Y Tax Credits Reserved (Y/N) Y, 2022, 9% 26 PROJECT NAME: 6 - Citizens West 2 ADDRESS: 509 West 300 North PROJECT SUMMARY Developer’s explanation of Phases 2 and 3: “Phases 2 and 3 will be built concurrently and be part of the same building. The main difference in the two phases is unit count with phase 2 having 50 units and phase 3 having 30 units. The building will be condo-ed so that each phase owns its respective units, common spaces, and shared amenities...While ownership of the building will be divided between two phases due to a tax credit allocation cap, the building will be constructed as one project. We will have one contract for work with architects and contractors. One set of plans will be submitted to the City for permitting.” From Developer: “Citizens West 2 is the second phase of a transit-oriented, carbon-neutral, mixed-income, mixed-use development in SLC’s rapidly gentrifying North Temple corridor. This phase looks to produce homes for large-household, multigenerational, refugee, and unhoused populations that have a particularly difficult time finding suitable housing in our state. This project’s quick access to transit, employment, and schools is almost unheard of for an affordable family product. As part of a larger developer including phase 1, it will be able to take advantage of phase 1’s amenities including, sport court, tot lot, club house, carshare, garden boxes and composting.” DEVELOPER SUMMARY From Developer: “Giv Development (proposed developer) has successfully completed several 9% tax credit projects including Imagine Jefferson (phases 1&2), North Sixth, Startup Crossing, Project Open (phases 1 & 2), Diamond Rail Apartments (DBA Citizens West phase 1), and Exchange Place (Avia and Mya). Citizen West 2’s overall ownership team further adds to this experience with several key members well versed in Utah LIHTC Development (BAM Development (ownership in Project Open 1 & 2, and Citizens West), CIA Development (ownership in Citizens West), and Housing Opportunity Inc (Hub of Opportunity II, Bud Bailey Apartments I & II, Bodhi Apartments, and Kelly Benson Apartments). Evergreen Management Group (EMG) will do property management, having section 42 compliance experience for decades on numerous different properties across the state of Utah.” 27 PROJECT NAME: 6 - Citizens West 2 ADDRESS: 509 West 300 North SITE MAP 28 PROJECT NAME: 6 - Citizens West 2 ADDRESS: 509 West 300 North SITE PLAN 29 PROJECT NAME: 6 - Citizens West 2 ADDRESS: 509 West 300 North PROJECT RENDERINGS 30 PROJECT NAME: 7 - Citizens West 3 ADDRESS: 509 West 300 North OVERVIEW Developer Giv Development Request Type HDLP Loan Project Type New Construction Existing Land Use Owner-occupied Storage RDA FUNDING REQUEST Funding Request $1,200,000 Total Project Cost $12,926,250 RDA Loan to Cost 9.3% PROPOSED TERMS Interest Rate 1% Term, Amortization 40 years, 40 years Repayment Terms Hard Lien Priority Subordinate to senior construction & permanent debt HDLP THRESHOLD REQUIREMENTS & PRIORITIES Family-Sized Units and/or Deeply Affordable Units Family -Sized Units and Deeply Affordable Units 90+ Energy Star Score Yes, 100 100% Electric Yes Priorities Met Family Housing Target Populations Transportation Opportunities Architecture & Urban Design Commercial Vitality Public Art HOUSING UNITS Bedroom Count Total Units Market Rate 41-60% AMI <40% AMI Studio 21 - 17 4 3 Bed 6 - 5 1 4 Bed 3 - 2 1 Total 30* - 24 6** *15 units set aside for formerly homeless, physical disability, and refugee populations **5 units set aside for 25% AMI households TIMELINE Construction Start 9/2023 Construction Completion 1/2025 CONSTRUCTION DEBT AHEAD OF RDA Source Amount % of Cost Senior Construction Debt $2,972,412 23.0% PERMANENT SOURCES Source Amount % of Total Senior Loan $1,091,900 8.4% RDA Loan $1,200,000 9.3% OWHLF $710,000 5.5% LIHTC Investor $9,599,040 74.3% Deferred Fee $307,310 2.4% Utility Rebates $18,000 0.1% Total $12,926,250 100% USES Use Amount % of Cost Land $673,125 5.2% Hard $9,596,082 74.2% Soft $298,036 2.3% Developer Fee $1,365,820 10.6% Financing $332,476 2.6% Owner’s Contingency $508,039 3.9% Reserves $152,672 1.2% Total $12,926,250 100% LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Y Tax Credits Reserved (Y/N) Y, 2022, 9% 31 PROJECT NAME: 7 - Citizens West 3 ADDRESS: 509 West 300 North PROJECT SUMMARY Giv Development’s explanation of Phases 2 and 3 : “Phases 2 and 3 will be built concurrently and be part of the same building. The main difference in the two phases is unit count with phase 2 having 50 units and phase 3 having 30 units. The building will be co ndo-ed so that each phase owns its respective units, common spaces, and shared amenities ...While ownership of the building will be divided between two phases due to a tax credit allocation cap, the building will be constructed as one project. We will have one contract for work with architects and contractors. One set of plans will be submitted to the City for permitting.” From Giv Development: “Citizens West 2 is the second phase of a transit -oriented, carbon-neutral, mixed-income, mixed-use development in SLC’s rapidly gentrifying North Temple corridor. This phase looks to produce homes for large -household, multigenerational, refugee, and unhoused populations that have a particularly difficult time finding suitable housing in our state. This project’s quick access to transit, employment, and schools is almost unheard of for an affordable family product. As part of a larger developer including phase 1, it will be able to take advantage of phase 1’s amenities including, sport court, tot lot, club house, carsha re, garden boxes and composting.” DEVELOPER SUMMARY From Giv Development : “Giv Development (proposed developer) has successfully completed several 9% tax credit projects including Imagine Jefferson (phases 1&2), North Sixth, Startup Crossing, Project Open (phases 1 & 2), Diamond Rail Apartments (DBA Citizens West phase 1), and Exchange Place (Avia and Mya). Citizen West 2’s overall ownership team further adds to this experience with several key members well versed in Utah LIHTC Development (BAM Development (ownership in Project Open 1 & 2, and Citizens West), CIA Development (ownership in Citizens West), and Housing Opportunity Inc (Hub of Opportunity II, Bud Bailey Apartments I & II, Bodhi Apartments, and Kelly Benson Apartments). Evergreen Management Group (EMG) will do property management, having section 42 compliance experience for decades on numerous different properties across the state of Utah.” 32 PROJECT NAME: 7 - Citizens West 3 ADDRESS: 509 West 300 North SITE MAP 33 PROJECT NAME: 7 - Citizens West 3 ADDRESS: 509 West 300 North SITE PLAN 34 PROJECT NAME: 7 - Citizens West 3 ADDRESS: 509 West 300 North PROJECT RENDERINGS 35 PROJECT NAME: 8 - Ville 9 ADDRESS: 1025 North 900 West OVERVIEW Developer Ville Property Management Request Type HDLP Loan Project Type Adaptive Re-Use and New Construction Existing Land Use Motel and Vacant Land RDA FUNDING REQUEST Funding Request $1,700,000 Total Project Cost $17,155,066 RDA Loan to Cost 9.9% PROPOSED TERMS Interest Rate 2.5% Term, Amortization 40 year, 40 year Repayment Terms Cash Flow Repayment Lien Priority Subordinate to senior construction & permanent debt HDLP THRESHOLD REQUIREMENTS & PRIORITIES Family-Sized Units and/or Deeply Affordable Units Deeply Affordable Units Sustainability: Energy Star Score of 90+ Condition of Approval 100% Electric Condition of Approval Priorities Met Unique Housing Type Commercial Vitality Adaptive Reuse HOUSING UNITS Bedroom Count Total Units Market Rate 41-60% AMI <40% AMI Studio 35* - 31 4 1-Bed 30 - 27 3 Total 65 - 58 7 *Currently housing individuals experiencing homelessness and those at risk for becoming or returning to homelessness TIMELINE Construction Start: New Construction: 1/2023; Renovation: 7/2023 Construction Completion: New Construction: 6/2023; Renovation: 10/2023 CONSTRUCTION DEBT AHEAD OF RDA Source Amount % of Cost Senior Construction Debt $3,430,000 20% PERMANENT SOURCES Source Amount % of Total Senior Debt $3,430,000 20.0% RDA Loan $1,700,000 9.9% TBL Fund $1,500,000 8.7% SLCO HOME $1,500,000 8.7% OWHLF $1,000,000 5.8% National Housing Trust Fund $1,000,000 5.8% Weatherization Assistance Program $1,496,365 8.7% Tax Credit Equity $5,528,701 32.2% Deferred Developer Fee - - Total Sources $17,155,066 100% USES Use Amount % of Cost Property Acquisition $5,216,561 30.4% Construction Costs $8,212,914 47.9% Soft Costs $1,537,233 9.0% Developer Fee $1,227,485 7.2% Project Contingency $815,333 4.8% Other $145,540 0.8% Total Uses $17,155,066 100.0% LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Yes Tax Credits Reserved (Y/N) Y, 4% 36 PROJECT NAME: 8 - Ville 9 ADDRESS: 1025 North 900 West PROJECT SUMMARY From Developer: “Ville 9 is a hotel conversion housing complex, consisting of 35 studio apartments, that has been housing individuals experiencing literal homelessness, individuals that have previously experienced homelessness, and individuals that are at risk for becoming or returning to homelessness, since 2020. Ville 9 has purchased the adjacent lot to the property and will be constructing 30 one-bedroom apartments, as well as fully renovate the current 35 studio apartments. VPM is the developer in partnership with Camp Construction, Design West, and Ward Engineering. Ville 9 will offer much needed affordable housing that is targeted towards housing the most vulnerable individuals within our community. The project provides on-site case management (CM), to support housing stability, and will expand the CM team to support the additional tenants. We will continue to prioritize housing individuals experiencing literal homelessness, individuals that have previously experienced homelessness, and individuals that are at risk for becoming or returning to homelessness. Tenancy and Rental Rate: Ville 9 will prioritize tenancy based on: 1) SLVCEH and the local LHC's coordinated entry process to house individuals that are literally homeless, 2) coordination with the above listed service provider partners to house individuals that need rehousing (currently are housed and are being evicted or facing a non- renewed lease) and have a housing subsidy, and 3) individuals within the community that are at or below 30% AMI and are at risk of entering into homelessness. Ville 9 will match FMR set by HUD for all units and will include all utilities, regardless of whether the tenant has a housing subsidy. On-site Case Management: Ville 9 is where VPM developed our on-site case management program that has decreased eviction rates across our Salt Lake County properties by 95%. We have achieved this through our housing stability programming, which includes a three-step lease violation process and delinquent payment plan, as well as our partnerships with our tenant's housing case management team and partnering service providers. Safety and Security: Ville 9 will have 24-hour on-site security staff and surveillance. The housing facility will be surrounded by a security fence that is secured and monitored through a key-fob entry system. EMS is located within 1.3 miles and can be contacted 24/7 through security staff. On-site Mental Health Services: Ville 9 will also have a satellite office for Mental Health America of Utah (MHAU), that will provide mental health and substance abuse support to our tenants through peer coaching and partnering with our case management team to augment our housing stability efforts. Together we will provide community programming for our tenants and community residents that offers peer support groups and community engagement activities (e.g. yoga, cooking classes, bingo, movie nights, skill and job building courses, etc.).” DEVELOPER SUMMARY From Developer: “Ville Property Management (VPM) has experience leasing, managing, and providing services across a range of affordable and market rate housing programs. VPM’s current portfolio includes experience working with Housing Subsidies (Permanent Supportive Housing, Section 8, and Rapid Re-Housing). VPM also offers deeply affordable housing to individuals that earn between 60% and 30% and below the Area Median Income (AMI) for the region. VPM also provides on-site Case Management services to the Salt Lake County residential properties to help tenants maintain their housing through our Case Management Model. Our focus is to provide affordable housing and extensive support to our tenants who have experienced homelessness and/or live below 30% AMI, to strengthen the wellness and livelihood of our tenants. 37 PROJECT NAME: 8 - Ville 9 ADDRESS: 1025 North 900 West Our unique team is dedicated in providing the needed services, supports, and programming to positively impact our tenants and community. Whether market rate or deeply affordable, we believe that everyone deserves the right to fair and supportive housing.” SITE MAP 38 PROJECT NAME: 8 - Ville 9 ADDRESS: 1025 North 900 West PROJECT RENDERINGS 39 PROJECT NAME: 8 - Ville 9 ADDRESS: 1025 North 900 West 40 PROJECT NAME: 9 - Ville 1659 ADDRESS: 1659 W North Temple OVERVIEW Developer Ville Property Management Request Type HDLP Loan Project Type Renovation Existing Land Use Motel RDA FUNDING REQUEST Funding Request $1,825,000 Total Project Cost $18,250,000 RDA Loan to Cost 10% PROPOSED TERMS Interest Rate 2% Term, Amortization 40 year, 40 year Repayment Terms Cash Flow Repayment Lien Priority Subordinate to senior construction & permanent debt HDLP THRESHOLD REQUIREMENTS & PRIORITIES Family-Sized Units and/or Deeply Affordable Units Deeply Affordable Units Sustainability: Energy Star Score of 90+ Condition of Approval 100% Electric Condition of Approval Priorities Met Target Populations Unique Housing Type Transportation Opportunities Commercial Vitality Adaptive Reuse HOUSING UNITS Bedroom Count Total Units Market Rate 41-60% AMI <40% AMI Studio 197 - - 197* *All units restricted at or below 30% AMI TIMELINE Construction Start: 12/2022 Construction Completion: 5/2023 CONSTRUCTION DEBT AHEAD OF RDA PERMANENT SOURCES USES LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) No Tax Credits Reserved (Y/N) No Use Amount % of Cost Senior Construction Debt $7,500,000 41.1% Source Amount % of Cost Senior Debt $7,500,000 41.1% RDA Loan $1,825,000 10.0% OWHLF $1,000,000 5.5% Owner Equity $2,066,378 11.3% Office of Homeless Services $3,858,622 21.1% SLC HHGP Funding $2,000,000 11.0% Deferred Fee - - Total Sources 18,250,000 100.0% Source Amount % of Total Property Acquisition $12,000,000 65.8% Construction Costs $4,000,000 21.9% Soft Costs $1,000,000 5.5% Developer Fee $1,000,000 5.5% Project Contingency $250,000 1.4% Total Sources $18,250,000 100.0% 41 PROJECT NAME: 9 - Ville 1659 ADDRESS: 1659 W North Temple PROJECT SUMMARY From Developer: “Ville 1659 is a hotel conversion project that will create 197 studio apartments and 10 RV stalls that will be deeply affordable and low barrier for singles and couples near downtown Salt Lake City. Our organization, Ville Property Management (VPM), will be the developer, in partnership with Camp Construction, Design West, and Ward Engineering. Ville 1659 will offer much needed affordable housing that is targeted towards housing the most vulnerable individuals within our community and provides on-site case management to support housing stability. We will prioritize housing individuals experiencing literal homelessness, individuals that have previously experienced homelessness, and individuals that are at risk for becoming or returning to homelessness. Our service provider partnerships include: SLVCEH, The Road Home, the VA, Volunteers of America, Housing Connect, Housing Authority of Salt Lake City, Fourth Street Clinic, First Step House, Valley Behavioral Health, Mental Health America of Utah, and Salt Lake City Police Department.” DEVELOPER SUMMARY From Developer: “Ville 1659 is an entity of Ville Property Management (VPM). VPM has over 20 years of experience leasing, managing, and providing services across a range of affordable and market rate housing programs. VPM's current portfolio includes management of 580 units with experience working with Housing Subsidies (Permanent Supportive Housing, Section 8, and Rapid Re-Housing). VPM also offers deeply affordable housing to individuals that earn between 60% and 30% and below the Area Median Income (AMI) for the region. VPM also provides on- site Case Management services to the Salt Lake County residential properties to help tenants maintain their housing through our Case Management Model. Our focus is to provide affordable housing and extensive support to our tenants who have experienced homelessness and/or live below 30% AMI, to strengthen the wellness and livelihood of our tenants. Our unique team is dedicated in providing the needed services, supports, and programming to positively impact our tenants and community. Whether market rate or deeply affordable, we believe that everyone deserves the right to fair and supportive housing.” SITE MAP 42 PROJECT NAME: 9 - Ville 1659 ADDRESS: 1659 W North Temple PROJECT RENDERINGS 43 PROJECT NAME: 10 - Liberty Corner ADDRESS: 265 West 1300 South OVERVIEW Developer Cowboy Partners Request Type HDLP Project Type New Construction Existing Land Use Commercial RDA FUNDING REQUEST Funding Request $3,000,000 Total Project Cost $99,718,091 RDA Loan to Cost 3.3% PROPOSED TERMS Interest Rate 2% Term, Amortization 40 year, 40 year Repayment Terms Cash Flow Repayment Lien Priority Subordinate to senior construction & permanent debt HDLP THRESHOLD REQUIREMENTS & PRIORITIES Family-Sized Units and/or Deeply Affordable Units Family -Sized Units and Deeply Affordable Units Sustainability: Energy Star Score of 90+ Condition of Approval 100% Electric Condition of Approval Priorities Met Family Housing Target Populations Missing Middle Housing Types Transportation Opportunities Neighborhood Safety Architecture & Urban Design Commercial Vitality HOUSING UNITS Bedroom Count Total Units Market Rate 41-60% AMI <40% AMI 2-Bed 97 - 75 22 3-Bed 80 - 57 23 4-Bed 23 - 13 10 Total 200 - 55 55 TIMELINE Construction Start: 12/2023 Construction Completion: 12/2025 CONSTRUCTION DEBT AHEAD OF RDA Source Amount % of Cost Senior Construction Debt $53,870,534 54.0% PERMANENT SOURCES Source Amount % of Total Tax Credit Equity $48,724,496 48.9% Senior Loan Amount 24,701,721 24.8% Cowboy Contribution $8,900,000 8.9% Class A Equity $953,234 1.0% Cowboy Deferred Equity $8,438,640 8.5% OW HOME $2,000,000 2.0% OW NHTF $2,000,000 2.0% County $1,000,000 1.0% City (RDA) $3,000,000 3.0% Total Sources $99,718,091 100% USES Use Amount % of Cost Land Cost $14,900,000 14.9% Hard Cost $64,305,260 64.5% Soft Cost $10,371,891 10.4% Developer Fee $8,438,640 8.5% Financing Cost $739,505 0.7% Reserves $962,795 1.0% Total Uses $99,718,091 100% LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Yes Tax Credits Reserved (Y/N) N, 4% & 9% 44 PROJECT NAME: 10 - Liberty Corner ADDRESS: 265 West 1300 South PROJECT SUMMARY From Developer: “Liberty Corner is a mixed -use development located on the Northeast corner of the 1300 South 300 West intersection. The community will feature 200 affordable units with the purpose of providing deeply targe ted, family - sized units. The unit mix will feature a majority of 3 - and 4-bedroom units along with a significant number of 2 - bedroom units. All units in the project will have at least 2 bedrooms. The project, while primarily flats, will include two-level townhouses at the street level. Liberty Corner is unique in that it not only provides family housing units in an urban setting, but includes deeply targeted affordable units, reaching to provide housing at 30% AMI. Liberty Corner is designed for the family. In addition to large, family -sized units, the community will feature indoor and outdoor amenities and spaces meant to serve a broad range of ages, interests and needs. Liberty Corner will also be a sustainable community. The community will promote access ible and equitable transportation options as the Ballpark TRAX Station is within walking distance, at less than a quarter mile away. In addition, the community will feature bicycle amenities in order to encourage alternative means of transportation. The community will be all electric and achieve Energy Star certification.” DEVELOPER SUMMARY From Developer: “Cowboy Partners is a multifamily developer based out of Salt Lake City, Utah. Cowboy Partners was established in 2001, rebranded from a company that had been developing housing in the Salt Lake Valley since the 1960s. Cowboy Partners is a recognized leader in the development, construction, and management of affordable housing; the company has experience in developing luxury, market rate, mixed -income and affordable housing communities through its development of dozens of communities within Salt Lake and across the State of Utah. Cowboy Properties, the sister company to Cowboy Partners, operates as the property management company for these communities. Cowboy Properties has deep experience with multifamily property management, including affordable housing and compliance, as the sole operator of Cowboy communities for decades.” SITE MAP 45 PROJECT NAME: 10 - Liberty Corner ADDRESS: 265 West 1300 South PROJECT RENDERINGS 46 PROJECT NAME: 11 - 9Ten West ADDRESS: 910 W North Temple OVERVIEW Developer Great Lakes Capital Development Request Type HDLP Project Type New Construction Existing Land Use Commercial RDA FUNDING REQUEST Funding Request $2,000,000 Total Project Cost $29,221,096 RDA Loan to Cost 6.8% PROPOSED TERMS Interest Rate 2.0% Term, Amortization 16 Year, 30 Year Repayment Terms Cash Flow Repayment Lien Priority Subordinate to senior construction & permanent debt HDLP THRESHOLD REQUIREMENTS & PRIORITIES Family-Sized Units and/or Deeply Affordable Units Deeply Affordable Units Sustainability: Energy Star Score of 90+ Condition of Approval 100% Electric Condition of Approval Priorities Met Transportation Opportunities Neighborhood Safety Architecture & Urban Design Commercial Vitality Public Art HOUSING UNITS Bedroom Count Total Units Market Rate 41-60% AMI <40% AMI Studio 160 - 142 18 1-Bed 15 - 15 - Total 175 - 157 18* *8 units at 30% AMI TIMELINE Construction Start: 8/2023 Construction Completion: 1/2025 CONSTRUCTION DEBT AHEAD OF RDA Source Amount % of Cost Senior Construction Debt $20,758,084 48.4% PERMANENT SOURCES Source Amount % of Total Permanent Loan $11,534,000 39.5% OWHLF HOME /LIH CF Loan $2,000,000 6.8% SLC RDA CF Loan $2,000,000 6.8% Tax Credit Equity $12,379,956 42.4% Deferred Developer Fee $679,640 2.3% 45 L & ITC Equity $277,500 0.9% RMP Energy Rebates $350,000 1.2% Total Sources $29,221,096 100% USES Use Amount % of Cost Site Acquisition $3,735,000 12.8% Hard Costs $17,195,179 58.8% Soft Costs $2,800,137 9.6% Developer Fee $2,288,146 7.8% Financing $2,427,319 8.3% Reserves $775,315 2.7% Total Uses $29,221,096 100% LOW-INCOME HOUSING TAX CREDIT Applying for Tax Credits (Y/N) Yes Tax Credits Reserved (Y/N) N, 2023, 4% 47 PROJECT NAME: 11 - 9Ten West ADDRESS: 910 W North Temple PROJECT SUMMARY From Developer: “The project will be transit oriented, affordable housing with amenity space and Community Service Facility on the ground floor. Located in the rapidly developing North Temple/Fairpark neighborhood, an affordable project with studio units will provide affordable housing in the Fairpark neighborhood for 50+ years. The project will also incorporate sustainability features to acheive Energy Star and Enterprise Green Communities certifications.” DEVELOPER SUMMARY From Developer: “Karl Niederer has been developing affordable housing in Arizona, Colorado, and Utah for eight years and has directed the development of over one hundred million dollars of affordable and supportive housing throughout the western states. Great Lakes Capital is a Real Estate Development and Private Equity Firm that invests in several core property types including Multifamily, Industrial, Mixed -Use, Flex, Office, Medical and Life Science, and Hotels Properties. Multifamily, Industrial, and Mixed -Use properties remain Great Lakes' highest growth segments. Since opening its doors in 2005, Great Lakes has successfully invested in billions of dollars of real estate projects and currently enjoys a development pipeline in excess of $923 million. Great Lakes' six prin cipals have nearly 170 years of experience and have closed more than $7 billion of commercial real estate investment across all property types, geographies, capital structures, and economic cycles.” SITE MAP 48 PROJECT NAME: 11 - 9Ten West ADDRESS: 910 W North Temple PROJECT RENDERINGS 49 Attachment E: Project Priorities and Interest Rate Reductions Project priority criteria will be utilized to evaluate applications as well as provide for interest rate reductions. CATEGORY POLICY OBJECTIVE BENCHMARK NOFA RANKIN G WEIGHT * 0.5% INTEREST RATE REDUCTION ** 1 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 Project provides at least 15%*** of the total units as 3+ bedroom units. 3 X 2 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 Project sets aside at least 15%*** of the units for extremely low-income households (40% AMI or less) and/or special populations in partnership with a governmental or nonprofit entity 3 X 3 Homeownershi p 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 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 50 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 Resolution. 1 X*** 6 Transportation Opportunities Promote a multimodal transportation network and ensure convenient and equitable access to a variety of transportation options Projects must meet two of the following: • Includes a car sharing, bike sharing, or transit pass program that is widely available to employees/ residents • Includes a commercial project that includes employee shower, locker, and bicycle facilities • Is located within 1/3 mile walking distance of a TRAX station or S-Line station • Implements reduced parking strategies without negatively impacting the neighborhood • Incorporates majority of parking within a primary structure to minimize the need for a surface parking lot 1 X 7 Neighborhood Safety Utilize the development of housing to reduce the number of vacant and distressed buildings and lots to reduce crime and return land to a productive use Projects are located within an active RDA project area, refer to Attachment B: RDA Project Area Map and incorporate documented Crime Prevention through Environmental Design (CPTED) principals 1 X 8 Expand Opportunity Provide for Neighborhoods of Opportunity by promoting the economic diversity of the housing stock within neighborhoods Projects are located within a High Opportunity Area, which is defined as an area that provides conditions that expand a person’s likelihood for social mobility as identified through an analysis of quality-of-life indicators. 1 X 9 Architecture & Urban Design Encourage housing that is high-quality, enduring, and that Buildings shall include an active ground floor use, significant ground floor 1 X 51 contributes to neighborhood context and livability through architectural and urban design best practices glass, durable building materials and engaging building entrances as determined by RDA staff 10 Commercial Vitality Foster a mix of land uses and unique neighborhood business districts that adequately meet the local community’s needs Projects are mixed-use and establish new services, or underrepresented business types in the neighborhood that the local community identifies as lacking and desired. These spaces shall be open to the public and shall not be spaces that are exclusive to the development 1 X 11 Historic Preservation /Adaptive Reuse Encourage the preservation and/or reuse of buildings to preserve the character of neighborhoods Project acknowledges 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 are available, interest rates can be reduced by a maximum of 2.0%, thereby reducing the interest rate to a minimum of 1%. Please see Attachment B for applicable standard loan terms and conditions. ***Note: Between the two threshold requirements laid out in Section 3.7, if a project includes both family housing units and deeply affordable units in accordance with this section, the project may receive the interest rate reduction by meeting the second threshold requirement at a percentage of 10% instead of 15%. ****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. 52 Attachment F: HDLP Funding Allocation Resolution 53 1 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ Affordable Housing – 2022 Housing Development Loan Program (HDLP) Funding Allocations RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY APPROVING CITYWIDE AFFORDABLE HOUSING PROJECT FUNDING ALLOCATIONS. WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) was created to transact the business and exercise the powers provided for in the Utah Community Reinvestment Agency Act (the “Act”). WHEREAS, the Act provides that tax increment funds may be used for the purpose of increasing the affordable housing supply within the boundaries of Salt Lake City. WHEREAS, the RDA Board of Directors (“Board”) approved the Housing Funds Allocation Policy (“Funds Policy”), Resolution R-1-2022, which establishes policies with respect to dedicating and directing resources for the development and preservation of housing based on funding source (“Housing Funds”). WHEREAS, the Board has set aside $6,000,000 of Housing Funds for affordable housing through the RDA’s Housing Development Loan Program (“HDLP”). The Board may also allocate an additional $2,360,000, which is the result of a loan commitment from the 2021 that was rescinded. The allocation of funds is contingent upon an application and review process administered by the RDA to facilitate funding of qualified projects that meet the goals established by the HDLP. WHEREAS, through a Notice of Funding Availability (“NOFA”), the RDA administered a loan application and review process pursuant to the HDLP policy set forth in resolution R-2-2022 (the “HDLP Policy”) and the RDA’s Housing Funding Priorities for Fiscal Year 2022-2023 set forth in R-4-2022 (“Funding Priorities”) that resulted in ten requests for funding totaling $16,760,000. WHEREAS, on December 21, 2022, the RDA’s Finance Committee (“Finance Committee”) reviewed the HDLP applications and recommended funding allocations and preliminary terms as further described in on Exhibit A. WHEREAS, based on the Finance Committee’s recommendations, RDA staff recommends that the Board approve the funding allocations and preliminary terms described in Exhibit A. WHEREAS, following the Board’s approval of the funding allocations and preliminary terms as set forth on Exhibit B, the RDA shall provide a 24-month conditional commitment period during which the approved applicant shall have the opportunity to obtain needed financial, legal, and 2 regulatory approvals, as well as satisfy other conditions determined by the RDA, to finalize the loan terms. WHEREAS, pursuant to the HDLP Policy, applicants that successfully meet the conditions of the conditional commitment shall be invited to execute a Letter of Commitment to finalize the loan terms, subject to a set of conditions precedent to closing of the loan. NOW THEREFORE, BE IT RESOLVED BY THE BOARD that it approves the funding allocations and preliminary terms as further described in Exhibit B, subject to revisions that do not materially affect the rights and obligations of the RDA hereunder. For approved applicants that successfully meet the required conditions, the Board authorizes the Executive Director to negotiate and execute the conditional commitment letter, the Letter of Commitment, the loan agreements, and other relevant documents consistent with the funding allocations and contained on Exhibit B and incorporating such other terms and conditions as recommended by the City Attorney’s office. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this _______ day of January 2023. ________________________________ Approved as to form: __________________________________ Salt Lake City Attorney’s Office Allison Parks Date:____________________________ The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. ________________________________ Erin Mendenhall, Executive Director Attest: ________________________ City Recorder December 23, 2022 PROJECT/APPLICANT ADDRESS PROJECT PRIORITIES/INTEREST RATE REDUCTION AND WEIGHTED NOFA RANKING** FUNDING REQUEST PRELIMINARY TERMS* HDLP COMMITTED FUNDS: $6M POSSIBLE ADDITIONAL HDLP FUNDS: $2.36M TOTAL FUNDING RECOMMENDATION FUNDING RANKING 2 -Victory Heights 1 BCG Holdings 3 - Victory Heights 2 BCG Holdings 4 - Atkinson Stacks*** HAME 5 - Book Cliffs Lodge*** HAME 6 - Citizens West 2 Giv Development 7 - Citizens West 3 Giv Development 8 - Ville 9 Ville Property Mgmt 9 - Ville 1659 Ville Property Mgmt 10 - Liberty Corner*** Cowboy Partners 11 - 9Ten West Great Lakes Capital TOTAL $16,760,000 $6,000,000 $2,360,000 $8,360,000 Funds Availability $6,000,000 6,000,000$ Recommended Funding: HDLP Committed Funds $2,360,000 $0 Funds Remaining: HDLP Committed Funds $8,360,000 2,360,000$ Recommended Funding: Possible Additional HDLP Funds $0 Funds Remaining: Possible Additional HDLP Funds 8,360,000$ Recommended: Total Potential HDLP Funds $0 Funds Remaining - Total Potential HDLP Funds HDLP Committed Funds Possible Additional HDLP Funds Total Potential HDLP Funds 8 $540,000 7 $1,865,000 Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Architecture & Urban Design: 1 Adaptive Reuse: 1 Public Art: 1 TOTAL: 10 1 $280,000 2 $500,000 Target Populations: 3 Unique Housing Types: 3 Architecture & Urban Design: 1 Sustainability: 1 TOTAL: 8 Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 TOTAL: 8 1060 E 100 S $280,000 $280,000 Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Architecture & Urban Design: 1 Adaptive Reuse: 1 Public Art: 1 TOTAL: 10 1060 E 100 S $1,865,000 $1,865,000 1159 S West Temple $540,000 $540,000 543 S 500 W $2,500,000 $500,000 $0 Unique Housing Type: 3 Commercial Vitality: 1 Adaptive Reuse: 1 TOTAL: 5 Target Populations: 3 Unique Housing Type: 3 Transportation Opportunities: 1 Commercial Vitality: 1 Adaptive Reuse: 1 TOTAL: 9 3 509 W 300 N $1,200,000 $1,200,000 $1,200,000 4 509 W 300 N $1,850,000 $1,850,000 $1,850,000 Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 10 Family Housing: 3 Target Populations: 3 Transportation Opportunities: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 10 FUNDING RECOMMENDATIONS *Final Terms shall comply with the requirements, standard loan terms and conditions, interest-rate reductions, and all other details laid out within the 2022 Housing Development Loan Program (HDLP) Guidelines. Changes to repayment type may occur (hard repayment versus cash flow repayment) and shall be based on requirements listed in the HDLP Guidelines or if required by a senior lender. Changes in repayment type will cause a change in the base interest rate. Repayment priority and lien position shall be based on the size of the loans. 6 910 W North Temple $1,125,000 9/10 1659 W North Temple $1,825,000 $805,000 $195,000 $1,000,000 $2,000,000 265 W 1300 S $3,000,000 $1,125,000 Family Housing: 3 Target Populations: 3 Missing Middle: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 TOTAL: 13 5 1025 N 900 W $1,700,000 Funds Recommended by Finance Committee 1% interest rate, 40-year term, 40-year amortization, hard repayments 1% interest rate, 40-year term, 40-year amortization, hard repayments 1% interest rate, 40-year term, 40-year amortization, hard repayments 1% interest rate, 40-year term, 40-year amortization, hard repayments 1% interest rate, 40-year term, 40-year amortization, hard repayments 1% interest rate, 40-year term, 40-year amortization, hard repayments 2.5% interest rate, 40-year term, 40-year amortization, cash flow repayment 2% interest rate, 40-year term, 40-year amortization, cash flow repayment 2% interest rate, 40-year term, 40-year amortization, cash flow repayment ***Finance Committee Recommendation: If these projects do not receive 9% tax credits in the next Utah Housing Corporation allocation cycle, these funding commitments shall be returned to the RDA's Housing Development Loan Program. Transportation Opportunities: 1 Neighborhood Safety: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 Public Art: 1 TOTAL: 5 **Projects receive a 0.5% interest rate reduction for each included priority. Sustainability allows for a 1% or 2% reduction. The maximum reduction per development is 2%. The interest rate is calculated as follows: Base Interest Rate minus (-) Interest Rate Reductions (up to 2%) = proposed interest rate; Base interest rate shall be locked within a month of closing. Projects shall maintain project priorities and the same weighted score at closing. Deviation from project priorites met may require Board approval. $0 9/10 2% interest rate, 16-year term, 30-year amortization, cash flow repayment EXHIBIT A: RDA FINANCE COMMITTEE RECOMMENDED HDLP FUNDING ALLOCATIONS The RDA Finance Committee recommends that funding be allocated to projects in order of priority ranking. 3 4 EXHIBIT B: HDLP RDA BOARD FUNDING ALLOCATIONS (To add after Board Meeting)