Transmittal - 6/23/2023
REDEVELOPMENT AGENCY of SALT LAKE CITY
SALT 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
STAFF MEMO
DATE: June 23 , 2023
PREPARED BY: Austin Taylor, Project Manager
Tracy Tran, Senior Project Manager
RE: Ville 1659 – Modified Terms for FY 2022-2023 Housing Development Loan
Program (“HDLP”) Funding Allocation and Clarify Condition in HDLP Resolution.
REQUESTED ACTION: Review and consider approving modified loan terms and clarification to
HDLP resolution
POLICY ITEM: Affordable Housing
BUDGET IMPACTS: Proposed modifications include a balloon repayment of the $1,000,000 loan
under a 3-year term versus the originally approved cash flow-based repayment
under a 40-year term.
EXECUTIVE SUMMARY
The Redevelopment Agency of Salt Lake City (“RDA”) and Ville 1659, LLC (“Developer”), are proposing
modifications to the previously-approved terms of the Housing Development Loan Program (“HDLP”)
loan for the Ville 1659 permanent supportive housing project located at 1659 West North Temple and to
clarify one of the conditions listed within the same Resolution. At the January 10, 2023, meeting, as part of
the larger competitive Notice of Funding Availability (NOFA) through the RDA’s HDLP, the RDA Board
of Directors (“Board”) approved a $1,000,000 construction to perm loan to the Ville 1659 project. As the
Developer moved towards closing, staff reviewed updated financials and details and determined that the
project would be able to pay off the loan within 3 years as opposed to 40 years.
In addition, RDA staff is requesting that the Board approve a clarification to a condition within the
approved HDLP resolution that states if a project does not receive 9% tax credits in the next allocation
cycle, the funding would need to be returned. The clarification would state that if a project does not receive
the 9% tax credits in the 2024 Utah Housing Corporation 9% allocation cycle, or if a project is not
allocated the 4% tax credits by December 31, 2023, funding would need to be returned to the RDA’s
Housing Development Loan Program.
1
BACKGROUND INFORMATION
Ville 1659 is an adaptive reuse real estate development project that will convert the former Ramada Inn at
1659 West North Temple into a permanent supportive housing complex. The project aims to convert 197
hotel rooms into studio apartments for households earning 30% AMI or less, with tenant priority given to
individuals who have been, currently are, or are at risk of becoming homeless . Ten (10) dedicated RV
parking spaces will also be added to the parking lot. Ville Property Management (the project’s property
manager) has leased space to Mental Health America of Utah to provide mental health services to tenants
and the general public.
PROPOSED LOAN MODIFICATIONS
At the January 10, 2023 RDA Board meeting, as part of the larger competitive Notice of Funding
Availability (NOFA) through the RDA’s HDLP, the RDA Board approved a $1,000,000 loan to the Ville
1659 project. Ville 1659 ranked fifth out of 10 applicants and was one of 8 projects that were allocated
HDLP funds in the FY 2022-2023 HDLP funding cycle. Please see Attachment C – Resolution Approving
2022 HDLP Funding Allocations.
Due to changes in the project’s financial sources and uses (Attachment B – Ville 1659 Updated Sources and
Uses), Staff finds that the project will not require RDA funds long-term, and as such the RDA and Ville
1659, LLC are proposing a change in terms. The primary change requiring Board approval is the type and
term of the loan.
The project applied for Gap Financing: Rental Construction to Permanent, which generally has a term of
30-40 years. The proposed modifications include changing the term to a 3-year bridge loan to support the
project during construction and through stabilization only.
Under the modified proposal, the RDA will be refinanced out of the capital stack after stabilization at the
project’s first refinance event—this is anticipated to occur within 3 years from the date of loan closing.
These term changes put the RDA in a better financial position and will result in the RDA being paid back
37 years earlier than expected. The RDA would then be able to use this money to finance the construction
of other affordable housing projects. This project is different than other projects the RDA has funded as the
project is not using Low Income Housing Tax Credits (LIHTC).
2
LOAN TERMS
The following table compares the loan terms that the RDA Board approved on January 10, 2023, to the
modified loan terms that the RDA and Ville 1659, LLC, are proposing now:
Approved Proposed
Loan Type Construction to Perm Bridge
Loan Amount $1,000,000 $1,000,000
Payment Type Cash Flow Single Balloon Payment at End
of Term
Interest Rate 2% 1%*
Amortization Period 40 Years N/A, no repayment schedule
Term 40 Years 3 Years
*This change aligns with the HDLP Guidelines and does not require Board approval.
CLARIFICATIONS TO CONDITION IN HDLP RESOLUTION
The RDA Board approved the HDLP allocation of funds in January 2023. As part of the approval, the
Board included a condition that states if a project does not receive 9% tax credits in the next allocation
cycle, the funding would need to be returned to the RDA’s HDLP. This condition was included to ensure
RDA funds would not be held up if a project experiences delays in receiving tax credits. RDA staff is
proposing to clarify this condition as some projects may be able to move forward with their development
by obtaining 4% tax credits. The clarification would state that if a project does not receive 9% tax credits
by in the 2024 Utah Housing Corporation 9% allocation cycle, or if a project is not allocated 4% tax credits
by December 31, 2023, funding would need to be returned to the RDA’s Housing Development Loan
Program.
NEXT STEPS
If the Board approves the amended loan terms, Staff will finalize loan documents and work toward closing
under the revised conditions.
PREVIOUS BOARD ACTION:
The Board approved a $1,000,000 HDLP loan for Ville 1659 at the January 10, 2023, meeting.
ATTACHMENTS
A.Ville 1659 Project Summary Sheet from January 2023
B.Ville 1659 Updated Sources and Uses
C.Resolution approving 2022 HDLP Funding Allocations
D.Amended Resolution
3
Attachment A:
Ville 1659 Project Summary Sheet from January 2023
4
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%
5
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
6
PROJECT NAME: 9 - Ville 1659
ADDRESS: 1659 W North Temple
PROJECT RENDERINGS
7
Attachment B:
Ville 1659 Updated Sources and Uses
Sources Original Current
Sundance Bay Bridge $7,500,000 $9,065,361
Olene Walker Fund $1,000,000 $0
SLC RDA $1,000,000 $1,000,000
Owner Equity $2,066,378 $953,000
SLC Grant $2,000,000 $2,000,000
State Grant $3,858,622 $3,850,000
National Housing Trust Fund $825,000 $0
Total Sources $18,250,000 $16,868,361
Uses Original Current
Property Acquisition $12,000,000 $9,500,000
Construction Costs $4,000,000 $4,297,653
Soft Costs $1,000,000 $1,000,000
Developer Fee $1,000,000 $280,000
Project Contingency $250,000 $265,000
Financing Costs $0 $1,525,708
Total Uses $18,250,000 $16,868,361
8
Attachment C:
Resolution Approving 2022 HDLP Funding Allocations
9
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
03 of 2023
10
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
10th
Allison Parks (Jan 17, 2023 14:22 MST)
Jan 17, 2023
Alejandro Puy (Jan 18, 2023 15:16 MST)
rachel otto (Jan 18, 2023 16: 55 MST)
4
11
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 12
PROJECT/APPLICANT ADDRESS
PROJECT PRIORITIES/INTEREST
RATE REDUCTION AND
WEIGHTED NOFA RANKING**
FUNDING
REQUEST PRELIMINARY TERMS*
TOTAL FUNDING
ALLOCATION
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 $8,360,000
Funds Availability
6,000,000
2,360,000
8,360,000
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.
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.
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.
HDLP Committed Funds
Additional HDLP Funds Approved by Board
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
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
1159 S West
Temple $540,000
543 S 500 W $2,500,000
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 4
509 W 300 N $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
6
910 W North
Temple
1,125,000
9/10
1659 W North
Temple $1,825,000 $1,000,000
2,000,000
265 W 1300 S $3,000,000
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
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
Transportation Opportunities: 1
Neighborhood Safety: 1
Architecture & Urban Design: 1
Commercial Vitality: 1
Public Art: 1
TOTAL: 5
0 9/10
2% interest rate, 16-year
term, 30-year amortization,
cash flow repayment
EXHIBIT B: HDLP RDA BOARD FUNDING ALLOCATIONS
4 13
RDA Resolution 03 of 2023 Affordable Housing
Funding Allocations for 2022 Notice of Funding
Availability (NOFA) Process
Final Audit Report 2023-01-20
Created:2023- 01-17
By:Thais Stewart (thais.stewart@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAATrDTy6jfF_-BJnbFO3LWv20Mdpm4-Ixn
RDA Resolution 03 of 2023 Affordable Housing Funding Allocat
ions for 2022 Notice of Funding Availability (NOFA) Process" His
tory
Document created by Thais Stewart (thais.stewart@slcgov.com)
2023-01-17 - 9:11:30 PM GMT
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Email viewed by Allison Parks (allison.parks@slcgov.com)
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Document emailed to Cindy Trishman (cindy.trishman@slcgov.com) for signature
2023-01-18 - 11:55:52 PM GMT
Document e-signed by Cindy Trishman (cindy.trishman@slcgov.com)
Signature Date: 2023-01-20 - 10:38:33 PM GMT - Time Source: server
Agreement completed.
2023-01-20 - 10:38:33 PM GMT
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Attachment D:
Amended Resolution
16
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______________
Affordable Housing –Gap Housing Development Loan Program (HDLP) Amendment to
Proposed Loan Terms
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY APPROVING AN AMENDMENT TO PROPOSED LOAN TERMS
FOR AN HDLP LOAN TO VILLE 1659, LLC.
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 Housing Development Loan Program (“HDLP”) was created to enable the
RDA to incentivize the development and preservation of affordable housing.
WHEREAS, the RDA Board of Directors (“Board”) previously approved the Housing Funds
Allocation Policy (“Funds Policy”), which establishes policies with respect to dedicating and
directing resources for the HDLP based on funding source (“Housing Funds”).
WHEREAS, the Board also adopted the amended and restated Housing Development Loan
Program Policy (the “HDLP Policy”) to provide a centralized application, underwriting, and
approval process for accessing the Housing Funds, including granting the authority for review
and approval of applications by the RDA Finance Committee (“Finance Committee”).
WHEREAS, pursuant to resolution R-3-2023, the Board previously approved funding
allocations and preliminary loan terms for eight projects selected to meet the goals established by
the HDLP, amounting to a total allocation of $8,360,000.
WHEREAS, included in that funding allocation was a proposed loan in the amount of
$1,000,000 to Ville 1659, LLC (“Developer”) for development of a deeply affordable housing
project to be located at 1659 West North Temple (the “Ville 1659 Project”).
WHEREAS, preliminary loan terms for the approved funding allocation for Ville 1659
originally included a two percent (2%) interest rate, forty-year term, forty-year amortization, and
cash flow repayments.
WHEREAS, due to changes to Developer’s overall financing structure, RDA staff proposes
making modifications to the preliminary loan terms, changing the type of loan from a
construction gap loan to a bridge loan, to support the Ville 1659 Project until it reaches
stabilization.
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WHEREAS, the proposed modifications include shortening the term to three years and changing
the repayment structure from cash flow payments to a balloon payment due upon expiration of
the term.
WHEREAS, the Board agrees to allocate the funding with the preliminary loan term
modifications as reflected in the Amended HDLP RDA Board Funding Allocations attached
hereto as Exhibit A.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD by the Board of Directors
of the Redevelopment Agency of Salt Lake City that it approves the funding allocations and
preliminary terms as amended in the Amended HDLP RDA Board Funding Allocations attached
hereto as Exhibit A, subject to revisions that do not materially affect the rights and obligations of
the RDA hereunder. The Board authorizes the waiver of the Policy to set the base interest rate at
the rate stated on the Term Sheet, which waiver shall be valid for three months from the date of
this resolution. The Board authorizes the Executive Director to negotiate and execute the loan
agreement and any other relevant documents consistent with the Amended and Restated Term
Sheet, and incorporating such other terms and agreements 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 July 2023.
________________________________
Alejandro Puy, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Sara Montoya, Senior City Attorney
Date:
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
________________________________
Erin Mendenhall, Executive Director
Attest:
________________________
City Recorder
June 23, 2023
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EXHIBIT A: AMENDED HDLP RDA BOARD FUNDING ALLOCATIONS
PROJECT/APPLICANT ADDRESS
PROJECT PRIORITIES/INTEREST RATE REDUCTION
AND WEIGHTED NOFA RANKING** FUNDING REQUEST PRELIMINARY TERMS*
TOTAL FUNDING
ALLOCATION
FUNDING
RANKING
2 -Victory Heights 1
1060 E 100 S
Family Housing: 3
Target Populations:
3 Transportation
Opportunities: 1
Architecture & Urban
Design: 1
Adaptive Reuse: 1
Public Art: 1 TOTAL: 10
$1,865,00
0
1% interest
rate, 40-year
term, 40-year
amortization,
hard
repayments
$1,865,000 1
BCG Holdings
3 - Victory Heights 2
1060 E 100 S
Family Housing: 3
Target Populations:
3
Transportation
Opportunities: 1
Architecture & Urban
Design: 1
Adaptive Reuse: 1
Public Art: 1 TOTAL: 10
$280,000
1% interest
rate, 40-year
term, 40-year
amortization,
hard
repayments
$280,000 2
BCG Holdings
4 - Atkinson Stacks***
543 S 500 W
Target Populations:
3
Unique Housing
Types: 3
Architecture & Urban
Design: 1
Sustainability: 1 TOTAL: 8
$2,500,00
0
1% interest
rate, 40-year
term, 40-year
amortization,
hard
repayments
$500,000 8
HAME
5 - Book Cliffs Lodge***
1159 S West
Temple
Family Housing: 3
Target Populations:
3
Transportation
Opportunities: 1
Neighborhood Safety:
1 TOTAL: 8
$540,000
1% interest
rate, 40-year
term, 40-year
amortization,
hard
repayments
$540,000 7
HAME
6 - Citizens West 2
509 W 300 N
Family Housing: 3
Target Populations:
3
Transportation
Opportunities: 1
Architecture & Urban
Design: 1
Commercial Vitality:
1
Public Art: 1 TOTAL: 10
$1,850,00
0
1% interest
rate, 40-year
term, 40-year
amortization,
hard
repayments
$1,850,00
0 3
Giv Development
7 - Citizens West 3 509 W 300 N Family Housing: 3
Target Populations:
$1,200,00
0
1% interest
rate, 40-year
$1,200,000 4
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Giv Development 3
Transportation
Opportunities: 1
Architecture & Urban
Design: 1
Commercial Vitality:
1
Public Art: 1 TOTAL: 10
term, 40-year
amortization,
hard
repayments
8 - Ville 9
1025 N 900 W
Unique Housing Type:
3 Commercial Vitality:
1
Adaptive Reuse: 1 TOTAL: 5
$1,700,00
0
2.5% interest
rate, 40-year
term, 40-year
amortization,
cash flow
repayment
$0 9/10
Ville Property Mgmt
9 - Ville 1659
1659 W North
Temple
Target Populations:
3
Unique Housing Type:
3
Transportation
Opportunities: 1
Commercial Vitality:
1
Adaptive Reuse: 1 TOTAL: 9
$1,825,00
0
2% interest
rate, 40-year
term, 40-year
amortization,
cash flow
repayment
1% interest
rate, 3-year
term, balloon
payment
$1,000,000 5
Ville Property Mgmt
10 - Liberty Corner***
265 W 1300 S
Family Housing: 3
Target Populations:
3
Missing Middle: 3
Transportation
Opportunities: 1
Neighborhood Safety:
1
Architecture & Urban
Design: 1
Commercial Vitality:
1
TOTAL: 13
$3,000,00
0
2% interest
rate, 40-year
term, 40-year
amortization,
cash flow
repayment
$1,125,000 6
Cowboy Partners
11 - 9Ten West
910 W North
Temple
Transportation
Opportunities: 1
Neighborhood Safety:
1
Architecture & Urban
Design: 1
Commercial Vitality:
1
Public Art: 1 TOTAL: 5
$2,000,00
0
2% interest
rate, 16-year
term, 30-year
amortization,
cash flow
repayment
$0 9/10
Great Lakes Capital
TOTAL $16,760,000 $8,360,000
*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.
**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 priorities met may require Board approval.
***If these projects do not receive 9% tax credits in the next 2024 Utah Housing Corporation 9% allocation cycle, or
these projects are not allocated the 4% tax credits by December 31, 2023, these funding commitments shall be
returned to the RDA's Housing Development Loan Program.
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Funds Availability
HDLP Committed Funds $6,000,000
Additional HDLP Funds Approved by
Board $2,360,000
Total Potential HDLP Funds $8,360,000
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