Proposed Resolution - 1/10/20231
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was rescinded.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
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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.
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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.
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EXHIBIT B: HDLP RDA BOARD FUNDING ALLOCATIONS
(To add after Board Meeting)