Transmittal - 11/1/2023REDEVELOPMENT 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: November 1, 2023
PREPARED BY: Austin Taylor, Project Manager
Tracy Tran, Senior Project Manager
Eric Holmes, Data Manager
RE: High Opportunity Areas: Proposed Map Update
REQUESTED ACTION: Review the updated data set, ranking methodology, and map for High
Opportunity Areas
POLICY ITEM: Affordable Housing
BUDGET IMPACTS: The RDA currently has $2.7 million budgeted to fund affordable housing
projects in High Opportunity Areas
EXECUTIVE SUMMARY/BACKGROUND
The Redevelopment Agency of Salt Lake City (“RDA”) is proposing an update to the data set, ranking
system, and eligibility map of the City’s High Opportunity Areas. The High Opportunity Area map
identifies Census Tracts in Salt Lake City in which low-income households have convenient access to
physical and social assets (such as employment, education, and high-income neighbors) that increase
their chance of improving their economic situation.
In 2015, the Kem C Gardner Policy Institute created the Opportunity Index. The Index used a set of
economic- and housing-related metrics (such as median household incomes, home ownership rates,
and housing cost burden rates) to determine Census Tracts in Salt Lake City in which low-income
households would have the greatest opportunity of improving their economic situation. In 2017, the
RDA Board, using the Opportunity Index, set aside $4.5M to finance affordable housing development
within High Opportunity Areas. Since then, the RDA Board has received and approved one loan
application for these funds.
RDA staff seeks to update the High Opportunity Area map to expand affordable housing funding
opportunities and incentives. The RDA’s proposed update includes the following changes:
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1. An expanded data set with the most current data available and a more wholistic view of
community assets
2. A revised ranking system that factors in a wholistic set of metrics and prioritizes housing and
economic data
3. An updated map, using revised data, which shows the Census Tracts in which affordable
housing projects are eligible for High Opportunity Area loans
CHALLENGES WITH CURRENT HIGH OPPORTUNITY AREA MAP
RDA staff is proposing to update the High Opportunity Area Map because of the following challenges:
1.The current map’s data—from 2011 to 2015—is outdated
2.The current data set’s metrics do not acknowledge many important community assets that
increase a low-income household’s ability to improve their economic situation, such as crime
rates, proximity to childcare, and education level of the neighborhood population
3.Land within the current map’s eligible Census Tracts is difficult to develop affordable housing
on for one of more of the following reasons:
a.Large areas zoned for only single-family detached housing
b.Limited area zoned for multifamily housing
c.Historic district overlays
d.Small parcel sizes
e. Few vacant parcels
f.Lack of IRS-designated Qualified Census Tracts and Difficult Development Areas,
which boost a Low Income Tax Credit-funded project’s tax credit eligibility by up to
30%
Together, these challenges have limited the number of affordable housing developments the RDA has
been able to fund within high opportunity areas. The RDA currently has $2.7 million in funds set aside
from the initial $4.5 million 2017 allocation.
PROPOSED HIGH OPPORTUNITY AREA DATA AND MAP UPDATE
RDA staff’s proposed update to the High Opportunity Area data and map includes the following
changes:
1. Updated the Opportunity Index model data sources with current data.
2.Additional metrics that acknowledge a more wholistic set of community assets
3.A new data weighting system that factors in a wholistic set of metrics and prioritizes housing
and economic data
4. Removed Census Tracts without residential zoning (such as Northwest Quadrant and other
industrial land)
5. Removed Census Tracts that have only a small portion of land inside Salt Lake City boundaries
6. After updating the map with the changes listed above, two Census Tracts that did not show up
as High Opportunity Area Census Tracts, but were surrounded entirely by High Opportunity
Area Census Tracts, were added as High Opportunity Area Tracts to prevent islands in similar
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neighborhoods.
These changes to the data set and weighting system update the map of Census Tracts in which
affordable housing development projects are eligible for High Opportunity Area funding. The
proposed map would remove Census Tracts in the East Central and Sugar House neighborhoods while
adding Census Tracts in The Avenues, Central City, East Central, East Liberty, Liberty Wells, and
Sugar House neighborhoods. Many Census Tracts in Yalecrest, Wasatch Hollow, Foothill, East Bench,
and Bonneville Hills remain. This proposed change would increase the overall land area and more than
double the land area that allows for multifamily dwellings classified as High Opportunity Areas.
REDEVELOPMENT ADVISORY COMMITTEE
RDA staff brought this proposed High Opportunity Area update to the Redevelopment Advisory
Committee on October 4, 2023. Committee members provided the following recommendations:
1. Utah Housing Corporation is currently offering 10%-30% basis boost for 9% LIHTC
developments in High Opportunity Areas. They are using the 2015 data and map the RDA is
currently using. This map can be found starting on Page 145 of the latest Qualified Allocation
Plan document. The RDA may want to connect with Utah Housing Corporation to talk about
how this proposed update could impact their program.
2. Though the RDA’s High Opportunity Area funding helps developers finance affordable
housing developments in high opportunity neighborhoods, there is still significant community
pushback against affordable housing in those neighborhoods.
3. RDA staff may want to compare this map with other maps of financial incentive programs for
affordable housing development—such as the map of HUD Opportunity Zones, Qualified
Census Tracts and Difficult Development Areas, Utah Housing Corporation High Opportunity
Areas, and Salt Lake City RDA Project Areas.
NEXT STEPS
Following a recommendation from the RDA Board, staff will either update the High Opportunity Area
map in applicable materials, or continue to work with the current map.
PREVIOUS BOARD ACTION
• In 2017, the RDA Board set aside $4.5M to finance affordable housing projects in High
Opportunity Area Census Tracts
• In 2019, the RDA Board approved a $1.8M loan for Richmond Flats affordable housing project
at 2960 South Richmond Street
ATTACHMENTS
A. Current vs Proposed Metrics and Data Weighting
B. Current vs Proposed High Opportunity Area Census Tracts
C. Proposed High Opportunity Area Map
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ATTACHMENT A: CURRENT VS PROPOSED METRICS AND WEIGHTING
Variable Description In 2015 Proposed 2015
Weight
Proposed
Weight
Unemployment Percentage of civilian labor force age 16 and over without a job.Yes Yes 1x 2x
Poverty Percentage of families with a household income in the last 12 months below the
poverty line.Yes Yes 1x 2x
Food Assistance/
SNAP Benefits
Percentage of households receiving Food Assistance/SNAP Benefits in the last 12
months.Yes Yes 1x 2x
Income Median household income in the last 12 months.Yes Yes 1x 2x
Jobs Total number of jobs accessible by car and transit.Yes Yes 1x 2x
Commute Time Mean commute time.Yes Yes 1x 1x
Childcare Facilities Proximity to childcare facilities.No Yes 1x
High School Diploma Percentage of population age 25 and older with a high school diploma or higher.No Yes 1x
School Report Card Mean school score reported by the Utah State Board of Education School Report
Card.Yes Yes 1x 1x
Bachelor's Degree Percentage of population age 25 and older with a bachelor's degree or higher.Yes Yes 1x 1x
Crime Mean count of crimes recorded by the SLCPD in the last 12 months.No Yes 1x
Grocery Stores Proximity to grocery stores.No Yes 1x
Open Space Proximity to open space.No Yes 1x
Transit Proximity to transit stops including bus stops, TRAX stations, and FrontRunner
stations.No Yes 1x
Community Services Proximity to community services including food banks, human services, and
government offices.No Yes 1x
Community Centers Proximity to community centers including libraries, recretional facilies, and
community gathering places.No Yes 1x
Uninsured Percentage of the population without health insurance.No Yes 1x
Asthma Percentage of the adult population with asthma.No Yes 1x
Obesity Percentage of the adult population with obesity.No Yes 1x
Depression Percentage of the adult population with depression.No Yes 1x
Healthcare Facilities Proximity to healthcare facilities.No Yes 1x
Homeownership Percentage of occupied housing units occupied by the owner.Yes Yes 1x 1x
Cost Burden Percentage of households spending more than 30% of income on housing costs.No Yes 1x
Home Value Median home value of owner occupied units.No Yes 1x
Family Sized Units Percentage of housing units with 3 or more bedrooms.No Yes 1x
Crowding Percentage of occupied housing units with more than 1.5 occupants per room.No Yes 1x 1x
Occupancy Percentage of housing units that are occupied No Yes 1x 1x
Low Cost Loans Percentage of owned homes with low cost loans Yes No 1x
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ATTACHMENT B: CURRENT VS PROPOSED HIGH OPPORTUNITY AREA CENSUS
TRACTS
Current High Opportunity Area Census Tracts Proposed High Opportunity Area Census Tracts
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ATTACHMENT C: PROPOSED HIGH OPPORTUNITY AREA MAP
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ATTACHMENT D: 2023 OPPORTUNITY INDEX MAP UPDATE
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ATTACHMENT E: HIGH OPPORTUNITY INDEX SCORES
SCORING NOTES
The High Opportunity Index uses an eleven-point rating scale to evaluate metrics associated with high economic
opportunity by census tract. Scores 0-2 indicate very low opportunity, 3-4 indicates low opportunity, 5-6
indicate moderate opportunity, 7-8 indicate high opportunity, and 9-10 indicate very high opportunity.
In the previous methodology, scoring used county-level thresholds to determine scoring from 0-10 for each of
the variables seen in Attachment A. Those scores were then averaged to create their opportunity index score.
Tract Opportunity
Index Score Tract Opportunity
Index Score
1001 3 1028.01 2
1002 5 1028.02 4
1003.06 3 1029 2
1003.07 2 1030 6
1003.08 1 1031 8
1005 1 1032 6
1006 0 1033 7
1007 5 1034 8
1008 5 1035 7
1010 8 1036 10
1011.01 6 1037 8
1011.02 9 1038 7
1012 8 1039 7
1014.01 3 1040 9
1014.02 4 1041 8
1015 8 1042 9
1016 6 1043 6
1017 8 1044 7
1018 4 1047 8
1019 7 1048 5
1020 6 1049 5
1021 7 1118.02 6
1023 5 1140 6
1025.01 4 1141 7
1025.02 6 1145 1
1026 3 1147 3
1027.01 3 1148 8
1027.02 1
Scoring Categories
0-2 – Very Low Opportunity
3-4 – Low Opportunity
5-6 – Moderate Opportunity
7-8 – High Opportunity
9-10 – Very High Opportunity
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For the proposed methodology, scoring for the Opportunity Index was done by evaluating each tract on the
variables in attachment A as compared to other census tracts in the city. A normalization formula is used to
establish the thresholds for scoring in 11 equal scoring ranges (0-10). Each tract’s normalized scores for all
variables were then multiplied by their determined weight and aggregated. The aggregate scores are then put
through the same normalization formula to determine the overall Opportunity Index score.
Weighting for the variables was determined by the RDA team with input from other stakeholders and city staff.
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