Transmittal - 3/1/2024
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
REDEVELOPMENT AGENCY of SALT LAKE CITY
DATE: March 1, 2024
PREPARED BY: Lauren Parisi & Tracy Tran, RDA Senior Project Managers
RE: FY 2024-25 Housing Development Funding Strategy
REQUESTED ACTION: Briefing on the FY 2024-25 Housing Development Funding Strategy
POLICY ITEM: Affordable Housing
BUDGET IMPACTS: N/A
EXECUTIVE SUMMARY: The Redevelopment Agency of Salt Lake City’s (“RDA”) Housing
Allocations Funds Policy (“Funds Policy”) establishes guidelines for allocating and directing resources for
the development and preservation of housing by funding source. Additionally, the RDA’s Housing
Development Loan Program (“HDLP”) Policy creates a program that centralizes the application,
underwriting, and approval process across all funding sources, providing a one-stop-shop for community
partners to access gap financing for the development and preservation of affordable housing. Both policies
contemplate that annually, prior to the annual budget process, the RDA shall present to the Board a
Housing Development Funding Strategy (“Funding Strategy”) that includes:
• A projected amount of revenue to be allocated to each Housing Fund for the upcoming fiscal year
(approved as a part of RDA budget)
• Proposed housing funding priorities (“Funding Priorities”) for the upcoming fiscal year (approved
as separate resolution)
• Proposed funding allocations for specific housing activities (i.e. gap financing loans, property
acquisition, etc.) for the upcoming fiscal year (approved as a part of RDA budget)
This memo reviews the Funding Priorities and housing activities adopted in Fiscal Year 2023-2024 (“FY
24”) as well as the proposal for Fiscal Year 2024-2025 (“FY 25”). The projected revenue to be allocated to
each of the four Housing Funds (Primary Housing Fund, Secondary Housing Fund, Westside Community
Initiative Fund and Housing Development Fund) as well as allocations of funding to each housing activity
will be brought back to the Board as a part of the annual budget discussion.
The RDA Board of Directors (“Board”) may wish to discuss the proposed Funding Priorities and housing
activities as described in this memo and provide any feedback or direction on potential funding levels to
certain housing activities when the budget is brought for their review.
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BACKGROUND:
FY 24 Annual Housing Funding Strategy Progress/Outcomes – Last year, the Board adopted four
housing funding priorities including family housing, deeply affordable housing, missing middle housing
and affordable homeownership to guide housing funding decisions for the rest of the fiscal year. Progress
has been made to further each of these priorities as follows:
Priority Objective Activities Implementation Impact/Status
Affordable
Family
Housing
Provide
opportunities for
families to enjoy the
many benefits of
urban living by
encouraging the
development of
affordable housing
that is more
conducive to larger
household sizes.
Family housing is
generally defined
as units with three
or more bedrooms.
HDLP, property
acquisition/dispositi
on, shared equity
Threshold
requirement for
HDLP*, higher
weighted score in
HDLP
The total units funded will
be available after the RDA
Board reviews the funding
allocations for the
competitive HDLP
applications at an
upcoming meeting.
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.
HDLP Threshold
requirement for
HDLP*, higher
weighted score in
HDLP
The total units funded will
be available after the RDA
Board reviews the funding
allocations for the
competitive HDLP
applications at an
upcoming meeting.
Missing
Middle
Housing
Promote an array of
housing forms to
diversify the City’s
housing stock and
provide more
affordable living
ADU assistance Released RFI to
facilitate
construction of
ADUs. Higher
weighted score in
HDLP*
In August of 2023,
Procurement advised the
RDA to release a request
for information (RFI)
regarding how vendors
could help the city
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options for
residents.
facilitate the construction
of ADUs. Six responses
were received that
highlighted the need for
flexible financing for
construction and utility
work, education regarding
zoning and becoming a
landlord, standardized
production, and pre-vetted
contractors among other
items. The RDA is working
to utilize this information
to put out an ADU RFP or
NOFA in the 9 Line as
soon as feasible.
RDA Staff will return to the
Board as progress is made
on this item.
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.
Allocation of funds
for wealth building.
Allocation of
Funds. Higher
weighted score in
HDLP
Through the City’s
American Rescue Act Plan
(ARPA) funds, the RDA
Board allocated $10
million to the Perpetual
Housing Fund of Utah,
LLC to purchase a
property and to develop
additional projects that
carry out a tenant wealth
building program. RDA
staff is working through
legal agreements to close
on the funds and will
finalize once conditions of
the approval have been
met.
*In addition to this requirement, all HDLP applicants must comply with the RDA’s Sustainable Development Policy which
requires all new construction and rehab projects receiving $900,000 or more in funding must the following:
• Energy Star score of 90+
• 100% electric (no on-site fuel combustion)
• Participation in Salt Lake City’s Energy Benchmarking Program
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Housing and Data Snapshot
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Citywide Housing Plans and Goals
The RDA is guided by and charged with implementing citywide plans and goals. Additionally, the RDA is
guided by its own project area plans, Guiding Framework and Livability Benchmarks. Current housing
plans and goals that the RDA’s annual Housing Development Funding Strategy should consider include:
Mayor Mendenhall’s 2024 Goals
•Begin implementation efforts on the 16 priorities outlined in Thriving in Place’s two-year action
plan.
•Create and submit to the RDA Board a program to support the creation of more Accessory
Dwelling Units.
•Explore funding resources and program ideas to preserve naturally occurring affordable housing
with the goal of keeping people in their homes and stabilizing neighborhoods.
Housing SLC (Citywide 5-year housing plan) – Strategies
•Support projects that allow tenants to build wealth and/or gain equity in their building based on
tenure
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• Work with community development partners to acquire priority properties for permanently
affordable housing
• Continue to release housing funds through Redevelopment Agency of Salt Lake City (RDA) for
development or acquisition of moderate income housing.
• Utilize Inland Port Housing Funds (pursuant to Utah Code Section 11-58-601(6)(b) of the Inland
Port Act) and other housing set-aside funds received by the Redevelopment Agency (RDA) to
expand affordable housing options, including tenant equity opportunities throughout the city,
especially on the west side
• Develop a financing program for low-income homeowner Accessory Dwelling Unit (ADU)
construction
• Promote the development of affordable family-sized housing units with 3+ bedrooms
• Establish at least one housing and transit reinvestment zone (HTRZ) in the city
• Expand workforce, artist, and essential worker housing, up to 125% AMI, so that these populations
can live in the city in which they serve
• Provide funding for programs and/or initiatives that build wealth and/or provide equity sharing
opportunities for residents
Thriving in Place (anti-displacement framework) – Strategic priorities relevant to the RDA include:
• Protect tenants from displacement, especially the most vulnerable
o Help tenants become owners.
• Preserve the affordable housing we have
o Acquire and rehabilitate unsubsidized housing
o Invest in Community Land Trust Models
• Produce more housing, especially affordable housing.
o Create more diverse housing choices in all areas
o Utilize publicly owned property
o Prioritize long-term affordability, support services, and transit access.
• Expand Capacity for tenant support and affordable housing
o Develop new funding sources and leverage existing resources
RDA Livability Benchmarks (3 of 21 benchmarks)
• Ownership – Encourage the creation of opportunities for residents/business owners to building
wealth and/or establish permanent roots through affordable home/commercial ownership.
• Housing for Everyone – Promote housing for families, underserved populations and extremely
low income.
• Affordable Commercial Spaces – Projects are mixed-use and include spaces within the development
for commercial uses.
Housing Funds
Housing funds within the RDA’s various housing funds for the upcoming fiscal are currently not available
and will be shared when available.
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ANALYSIS:
FY 25 Proposed Funding Priorities – Reviewing city plans, current housing data, commercial data, and
remarks from the RDA Board, housing funding priorities and associated activities have been proposed to
guide FY 25. To make the greatest impact, staff recommend limiting the adopted Funding Priorities to four
or fewer.
To note, staff determined that FY 24’s Funding Priorities are still very relevant in addressing the city’s
current housing needs. Many of the programs and initiatives introduced in the last two fiscal years to
further each FY 24’s Funding Priorities are currently underway or ongoing and more time is needed for
implementation. For these reasons, the proposed priorities are very similar to last year’s proposal.
1. WEALTH BUILDING OPPORTUNITY – This priority supports different forms of wealth
building opportunities for low-moderate income households. Although homeownership is a path to
wealth building, it is not the only form that the RDA could potentially support to help individuals
and families meet this goal. Wealth building can be accomplished through different forms of shared
equity models such as rental subsidies where tenants earn a portion of a development’s return and
community land trust models. Supporting ADUs also supports wealth building by supporting
mortgage payments and increasing income and property values. This priority will encompass a
variety of options for residents to build wealth.
2. AFFORDABLE FAMILY HOUSING WITH AMENITIES FOR CHILDREN – This priority
promotes affordable, larger housing units for tenant populations with children that have at least
three or more bedrooms and includes amenities for children. There is a need for affordable family-
sized units, especially as more families look outside of Salt Lake City boundaries for affordable
housing options and enrollment in Salt Lake City schools decreases.
Per the interlocal agreements with the School District for the State Street and 9 Line project areas,
the RDA must also prioritize affordable family and workforce housing described as:
• Affordable Family Housing: Development of new housing units that include 3+ bedrooms
and are affordable to households at or below 80% of the area median income as defined by
the U.S. Department of Housing and Urban Development.
• Workforce Housing: Development of new housing units affordable to low and middle-
income workers, including teachers and school district employees.
3. DEEPLY AFFORDABLE HOUSING – This priority promotes housing units affordable for those
earning 40% AMI and below. While the city has made progress facilitating the development of
deeply affordable units, there is still a shortage of over 5,500 units for those earning 30% AMI or
less in particular and it’s proposed to continue to promote this priority through FY 25 (Housing
SLC - Housing Needs Analysis).
4. NEIGHBORHOOD COMMERCIAL AND SERVICES – This priority ensures that as housing
continues to be built throughout the City, residents and neighbors continue to have access to
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neighborhood services and amenities such as daycares, restaurant, and retail spaces. These
commercial and retail spaces should not be exclusive to the housing development. For permanent
supportive housing projects targeting 30% AMI, onsite supportive services may be substituted for
commercial retail space.
FY 25 Proposed Housing Activities – To encourage the incorporation of the four proposed Funding
Priorities in RDA-funded housing projects, RDA staff proposes allocating funding to the following
activities and tactics as part of the RDA’s FY25 budget. Some of the housing activities may achieve
multiple Funding Priorities. See Figure 2 for summary.
HOUSING ACTIVITIES
HOUSING PRIORITIES
Wealth
Building
Opportunity
Affordable
Family
Housing and
Amenities
for Children
Deeply
Affordable
Housing
Neighborhood
Commercial
and Services
Equity Building NOFA: With the primary goal of
removing barriers to wealth building and
creating generational wealth, the RDA will
release a notice of funding availability (NOFA)
to support external programs and/or
developments that build equity for lower-
moderate income individuals and families.
This model could take on different forms such
as a shared profit, shared equity program, or
mortgage assistance. There are various
community organizations with programs that
support wealth building and homeownership in
need of financial assistance where the RDA
could leverage existing funding, which is why
the RDA is proposing this approach as
opposed to creating a new program.
Guidelines with funding objectives will be
released in conjunction with the NOFA and
proposals will be reviewed on a competitive
basis.
The RDA will release a request for proposals
(RFP) prioritizing the inclusion of
homeownership products and/or a shared
equity component on the West Montrose site
✓ ✓
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located off the northeast corner of 800 South
and 300 West. This site is approximately two
acres and could potentially accommodate a
significant number of units.
ADU Financing Program: The RDA will
continue to work towards developing an RDA
program to facilitate the construction of ADUs,
with initial focus on the 9 Line Project Area.
This activity could provide a wealth building
opportunity for homeowners in the 9 Line area.
Land Acquisition/Disposition: The RDA will
release requests for proposals (RFP) on RDA-
owned land. For properties that contemplate
housing as a land use, the RDA may require
that affordable family-sized units, deeply
affordable units, and/or neighborhood
commercial and services are incorporated
within proposals.
Additionally, the RDA has been actively looking
to purchase properties to implement RDA
goals.
✓ ✓ ✓ ✓
Housing Development Loan
Program(“HDLP”): The HDLP is a gap
financing program for affordable housing
developments. The RDA releases funds
annually through a competitive Notice of
Funding Availability (NOFA). Similar to the last
two years, at least 10% of a development’s
units must be deeply affordable or affordable
family-sized with amenities for children to
qualify for the RDA’s competitive NOFA. In
addition, neighborhood commercial and
services will also be a requirement for the
HDLP. All the project priorities will also be
weighted heavier as a part of the competitive
NOFA review process.
✓ ✓ ✓ ✓
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NEXT STEPS:
• The RDA Board should consider whether the proposed Funding Priorities align with their goals for
the upcoming fiscal year.
• The finalized Funding Priorities will be brought back for the Board’s consideration to adopt via
resolution in April.
• RDA staff will present the final Funding Strategy to the Board as a part of the budget presentation,
which includes the projected amount of revenue to be allocated to each of the four housing funds.
The Board should consider whether to adopt the final Funding Strategy as part of the annual budget
adoption process.
ATTACHMENTS:
Attachment A – Data
Attachment B – RDA Affordable & Mixed-Income Housing Summary: 2010/11 - 2023/24
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ATTACHMENT A – DATA
EXISTING AFFORDABLE HOUSING DATA
Current and Future Salt Lake City Deed-Restricted Affordable Housing Developments Map
Source: SLC Affordable Housing Pilot Report
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All City-Supported Affordable Housing Constructed Since 2015 and Future Developments
Source: SLC Affordable Housing Pilot Report
City-Supported Housing Units Constructed Since 2015 and Future Projects with Allocated Funds
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SALT LAKE CITY AFFORDABLE HOUSING AND COMMERCIAL TRENDS
Source: Census Bureau’s 2017-2022 ACS 5-Year Estimates
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Source: Census Bureau’s 2017-2022 ACS 5-Year Estimates
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Salt Lake City Households
Source: Census Bureau’s 2017-2022 ACS 5-Year Estimates
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Household Income Levels
Source: Census Bureau’s 2017-2022 ACS 5-Year Estimates
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Commercial Data
Source: Salt Lake County Assessor
Source: CoStar Group
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RDA Affordable Housing Funding Allocations by Fiscal Year
RDA Affordable Housing – Other Funding
Project Address Project Area Tool FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Total
Artspace Commons 423 W 800 S Granary District TI Reimbursement $48,880 $38,843 $36,237 $38,364 $38,431 $38,813 $21,194 $100,025 $34,000 $394,787
Northgate Apartments 135 S 500 W Depot District TI Reimbursement $802,648 $838,207 $856,452 $696,064 $708,427 $586,103 $426,209 $521,038 $600,000 $712,922 $653,790 $7,401,860
West Montrose 300 W 800 S West Temple Gateway Acquistion (FY2010)$0
Arctic Court 528 N Arctic Ct West Capitol Hill Acquistion $200,000 $200,000
Housing Trust Fund HTF Transfer $109,000 $208,578 $124,350 $899,902 $518,393 $0 $3,000,000 $4,860,223
$960,528 $1,085,628 $1,017,039 $1,834,330 $1,265,251 $624,916 $3,447,403 $621,063 $634,000 $712,922 $653,790 $0 $0 $12,856,870
ATTACHMENT B - RDA AFFORDABLE HOUSING SUMMARY: 2010/11 -2023/24*
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RDA Affordable Housing Development Details
*Developments funded in FY 2023-24 will be added after the Board has approved funding allocations through the Housing Development Loan Program