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Transmittal - 3/24/2023SALT 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 REDEVELOPMENT AGENCY of SALT LAKE CITY DATE: March 24, 2023 PREPARED BY: Lauren Parisi & Tracy Tran, RDA Senior Project Managers RE: FY 24 Annual Housing Funding Priorities REQUESTED ACTION: Consider adoption of a resolution to establish the FY 24 Housing Funding Priorities POLICY ITEM: Affordable Housing BUDGET IMPACTS: N/A EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City’s (“RDA”) Housing Development Loan Program (“HDLP”) policy requires that the RDA Board of Directors (“Board”) approve housing funding priorities (“Funding Priorities”) on an annual basis. These Funding Priorities guide the upcoming fiscal year’s housing activities including the requirements of the HDLP's competitive affordable housing notice of funding availability (NOFA). At their March 2023 meeting, the Board reviewed and discussed potential Funding Priorities for the upcoming fiscal year 2023-2024 (“FY 24”). More detail regarding the information presented at this meeting can be found within the March RDA Board Memo. The Board seemed to come to a consensus regarding the approval of four priorities including: •Wealth Building Opportunity •Affordable Family Housing •Deeply Affordable Housing •Missing Middle Housing This memo outlines the intent of each of the four Funding Priorities. The resolution under Attachment A has been included for the Board’s consideration to approve the FY 24 Funding Priorities. ANALYSIS: FY 24 Annual Housing Funding Priorities. The intent of each priority that will be used to guide housing decisions throughout the upcoming fiscal year are described below. 2 1.Wealth Building Opportunity – Facilitate the ability for low-moderate income households to build wealth through different pathways such as homeownership, supplemental income opportunities, stipends for renters, cooperative housing, and other wealth building models. 2.Affordable 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 with at least three (3) or more bedrooms. Affordable family housing is generally defined as units with three or more bedrooms affordable to those earning 80% of the area median income (AMI) or below. 3.Deeply Affordable Housing – 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. Deeply affordable housing is generally defined as housing affordable to those earning 40% of the area median income (AMI) or below. 4.Missing Middle Housing – Promote an array of housing forms such as – but not limited to – smaller apartment buildings, townhomes and accessory dwelling units to diversify the City’s housing stock and provide more affordable living options for residents. Workforce Housing. As a part of the housing priorities discussion in March, the Board indicated that workforce housing – designated for essential workers such as police officers, teachers, nurses, etc. – is a housing type important to promote across the city. While it’s not proposed as one of the four main housing priorities for the upcoming fiscal year, staff will aim to reserve units for essential workers as part of land disposition projects. This may also be a priority for the Board to consider next fiscal year. Housing Development Loan Program – Competitive NOFA. To utilize the competitive HDLP notice of funding availability (NOFA) to promote the Funding Priorities, RDA staff recommends to make family housing and/or deeply affordable housing into thresholds requirements in order for a project to be eligible for funding. To meet the family housing threshold, at least 10% of a project’s units must have three or more bedrooms. To meet the deeply affordable housing threshold, at least 10% of a project’s units must be affordable to those earning 40% AMI or below. Similar to previous year, the priorities for the upcoming fiscal year will be weighted more in scoring than other benchmarks. Projects will also be eligible for interest rate reductions for meeting other RDA benchmarks as outlined in the HDLP guidelines. FY 24 Housing Fund Projections. RDA staff will share the housing fund projections for the upcoming fiscal year when it becomes available. NEXT STEPS: •Pursuant to the Housing Development Loan Program Policy, the Board may wish to consider the adoption of the attached resolution to approve the Funding Priorities for FY 24. •RDA staff will present proposed funding allocations to housing activities as a part of the FY 24 budget discussion. 3 ATTACHMENTS: Attachment A – FY 24 Affordable Housing Funding Priorities Resolution 4 ATTACHMENT A - FY 24 AFFORDABLE HOUSING FUNDING PRIORITIES RESOLUTION REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ FY 2023-24 Affordable Housing Funding Priorities RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY ADOPTING HOUSING FUNDING PRIORITIES FOR FISCAL YEAR 2023-24 WHEREAS, the Board of Directors of the Redevelopment Agency of Salt Lake City (Board) adopted the Housing Funds Allocation Policy and the Housing Development Loan Program Policy, which provide that the Redevelopment Agency of Salt Lake City (RDA) will present to the Board an overall funding strategy and specific funding priorities (Funding Priorities) for how housing funds should be allocated to the housing funds and housing loan program for the upcoming fiscal year. WHEREAS, the Housing Development Loan Program Policy provides that the specific Funding Priorities shall be subject to approval by the Board. WHEREAS, the Board desires to adopt the Funding Priorities identified in this resolution to direct resources for the development of affordable housing for fiscal year 2023-24. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Redevelopment Agency of Salt Lake City hereby adopt following Funding Priorities for fiscal year 2023-24: Funding Priority Objective Deeply Affordable Housing Threshold requirement for Housing Development Loan Program applications 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. Affordable Family Housing Threshold requirement for Housing Development Loan Program applications 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. Wealth Building Opportunity Facilitate the ability for low-moderate income households to build wealth through different pathways such as homeownership, supplemental income opportunities, stipends for renters, cooperative housing, and other wealth building models. Missing Middle Housing Promote an array of housing forms to diversify the City’s housing stock and provide more affordable living options for residents. 5 Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this _______ day of ________________, 2023. ________________________________ Alejandro Puy, Chair 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 March 23, 2023 6