Transmittal - 1/26/2024
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
STAFF MEMO
DATE: January 26, 2024
PREPARED BY: Tracy Tran, Senior Project Manager
RE: Consideration and Adoption of a Resolution Approving Funding Allocation
for Gap Financing through a Notice of Funding Availability for High
Opportunity Areas through the Housing Development Loan Program
REQUESTED ACTION: Consider approving affordable housing funding allocations as selected
through a Notice of Funding Availability for High Opportunity Areas
through the Housing Development Loan Program
POLICY ITEM: Affordable Housing – Housing Development Loan Program
BUDGET IMPACTS: $2,7000,000 of RDA funds set aside for affordable housing located
within High Opportunity Areas
EXECUTIVE SUMMARY: In 2017, the Redevelopment Agency of Salt Lake City (“RDA”) Board
of Directors (“Board”) allocated $4.5 million to incentivize the development and preservation of
affordable housing located within High Opportunity Areas, which are neighborhoods that provide
access to resources that improve chances at upward economic mobility. In 2019, the RDA Board
received and approved a $1.8 million loan application for these funds. The Board has directed staff to
continue to solicit applications for projects within High Opportunity Areas on an ongoing basis until
funds are expended. In late 2023, the High Opportunity Area map was updated to reflect newer data
and metrics, which resulted in an expanded area that qualifies for these funds. $2.7 million remains in
High Opportunity Area Funds (“HOAF”) through the Housing Development Loan Program (“HDLP”).
Although the HOAF have not been advertised in a competitive manner like the RDA’s annual
competitive HDLP Notice of Funding Availability (NOFA), RDA staff received two applications on
January 3, 2024, with total requests of $5.35 million for the remaining $2.7 million.
Guiding Policy
The HOAF are being administered pursuant to the Housing Allocation Funds Policy (“Funds Policy”),
resolution R-1-2022, and the Housing Development Loan Program Policy (“HDLP Policy”), resolution
R-2-2022, which replaced the Affordable Housing Notice of Funding Availability Policy, resolution
R-17-2018. The Funds Policy establishes policies for allocating and directing resources for the
development and preservation of housing by various funding sources. Highlights of the Funds Policy
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include:
•Housing Funds: The Policy establishes four housing funds based on fund source. The revenues,
expenditures, interest, and payments for each fund source shall be separately accounted for to
ensure the RDA control and oversight to comply with statutory requirements.
•Annual Budgeting Process: The policy provides that on an annual basis, the RDA shall present
for the Board’s consideration a Housing Development Funding Strategy that projects revenues
for the upcoming fiscal year and proposes funding priorities and allocations. This will allow
the RDA to be flexible to address current needs, leverage current opportunities, coordinate with
other city resources and allow funding priorities to align with evolving plans and policies.
The HDLP provides low-cost financial assistance to incentivize the development and preservation of
affordable housing within Salt Lake City municipal boundaries. The HDLP Policy provides a
centralized application, underwriting, and approval process regardless of the fund source and also
features:
•Funding allocations and priorities determined on an annual basis. The funding priorities for
these funds were based on the FY2023-24 Annual Housing Funding Priorities.
•The transparent administration of funds through a Notice of Funding Availability (NOFA)
process. Revenue from various funds may be combined into a consolidated NOFA or a NOFA
may be issued for a specific funding source. NOFAs could be offered on an annual basis or
multiple times per year and can be competitive or open-ended depending on availability of
funds, priorities, and demand.
•A standardized process for approving applications and a uniform set of underwriting policies.
FY2023-2024 Annual Housing Priorities
In April 2023, the Board adopted the FY2023-2024 Annual Housing Funding Priorities. These
priorities included Threshold Requirements for the HDLP, which requires developments to meet at
least one of the following to qualify for funding in addition to threshold requirements laid out in the
HOAF HDLP Guidelines + Application Handbook:
•Deeply Affordable Housing Threshold Requirement
o Policy Objective: 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.
o HDLP Implementation: To meet the RDA’s deeply affordable threshold, at least 10%
of the total residential units shall be income and rent restricted to households earning
40% of the area median income (“AMI”) and below as established by the U.S.
Department of Housing and Urban Development (“HUD”). These units will be rent
and income deed restricted.
•Family Housing Threshold Requirement
o Policy Objective: 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.
o HDLP Implementation: For a development to qualify for these funds, a minimum of
10% of the total residential units shall have three or more bedrooms and shall be income
and rent restricted to those earning 60% AMI and below, with AMI limits as established
by HUD.
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Application Submissions
Pursuant to the policies, the RDA administered a transparent application process for the $2.7 million
in HOAF. RDA staff received two (2) loan applications for funding totaling $5.35 million. Please refer
to Attachment A: Applications Overview and Attachment B: Project Summary Sheets for additional
information.
The RDA has reviewed the application submittals, and the RDA Finance Committee (“Committee”)
will provide recommended applications for funding. This memorandum includes a summary of
application submittals and the Committee’s recommendations for the Board’s consideration and
determination of funding allocations will be provided after the February 1 meeting.
ANALYSIS & ISSUES:
Below is an overview of the HOAF HDLP application process:
I. Application Process
In 2018, the RDA issued a NOFA to solicit applications for approximately $4.5 million
available for affordable housing projects located within High Opportunity Areas or areas that
provide resources that improve chances at upward economic mobility. In 2019, the RDA Board
received and approved a $1.8 million loan application for these funds. The remaining $2.7
million in HOAF have been open and continued to be advertised. In November 2023, the High
Opportunity Area map was updated to reflect newer data and metrics, which resulted in an
expanded area that qualifies for these funds. A copy of HOAF Guidelines + Application
Handbook that applicants used to apply can be found here.
II.Project Review
As part of the application review process, RDA staff analyzed applications according to the
HDLP Policy’s eligibility requirements and project priorities, which can be found in
Attachment C: Project Priorities and Interest Rate Reductions. The housing priorities include
the ability for an applicant to receive an interest rate reduction if priorities are met. All HDLP
loans will be available to selected projects for acquisition, construction, and/or development
uses. The RDA recognizes that the construction sources and uses for projects may not be the
same as the permanent sources and uses and that the amount of debt that the HDLP loans are
subordinated to may vary depending on the status of the projects. The RDA Finance Committee
will review and evaluate the applications and provide a recommendation to the RDA Board.
III. Funding Allocations, Conditional Commitment, and Loan Closing
Pursuant to the Policy, the Board will make the final determination of applications to fund.
Subsequently, the RDA will issue a conditional commitment letter to those applications that
are selected for funding. The conditional commitment letter between the RDA and the applicant
will contain the covenants, terms and conditions upon which the RDA will provide financial
assistance to the proposed project once financial, legal, regulatory, and design approvals are
obtained. Prior to closing on a loan, RDA staff will ensure that the project is financially viable,
underwriting standards are met, and the use of public funds is necessary for the project to
succeed.
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RDA STAFF REVIEW: As part of the initial application review process, RDA Staff verified that all
applications meet the Threshold Requirements laid out in the HOAF Guidelines + Application
Handbook. RDA staff affirms that all applications meet or will meet the Threshold Requirements.
Below is an overview of the submitted applications:
PROJECT DEVELOPER ADDRESS FUNDING
REQUEST
1.515 Tower -
Conversion Phase I*
Perpetual Housing Fund of
Utah
515 East 100 South
Salt Lake City, UT
84102 $2,650,000
2.Fairmont Heights
II**Lincoln Avenue Capital
2257 South 1100
East
Salt Lake City, UT
84106 $2,700,000
TOTAL FUNDING REQUEST: $5,350,000
AVAILABLE FUNDING: $2,700,000
*This project also applied for funding through the competitive HDLP. They are seeking a total of $2,650,000
between the two applications. If they receive the full amount in this process, they will not need the amount within the
competitive HDLP.
**This project also applied for funding through the competitive HDLP. They are seeking a total of $5,900,000
between the two applications.
Additional details of the HOAF HDLP applications can be found in Attachment A: Applications
Overview and Attachment B: Project Summary Sheets.
RDA FINANCE COMMITTEE RECOMMENDATION: The RDA Finance Committee will
review the applications and provide their funding recommendation at their February 1, 2024 meeting.
Refer to Attachment D: RDA Finance Committee Funding Recommendation for recommendation
detail.
PREVIOUS BOARD ACTION:
•November 14, 2023: RDA Staff briefed the Board on the updated data set, methodology, and
map for High Opportunity Areas.
•April 12, 2023: The Board adopted the Affordable Housing Funding Priorities for Fiscal Year
2023-24.
•March 8, 2022: The Board adopted revisions to the Housing Development Loan Program
Policy to direct review of applications to the RDA Finance Committee.
•February 9, 2022: The Board adopted revisions to the Housing Allocation Funds Policy.
•March 2021: The Board adopted the Housing Development Loan Program Policy, which
repealed the Affordable Housing Notice of Funding Availability Policy.
•February 2021: The Board adopted the Housing Allocation Funds Policy.
•May 2020: The Board adopted Resolution R-10-2020, which amended the loan terms to
structure the loan into two phases with conditions.
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• December 2019: The Board adopted Resolution R-25-2019, which allocated $1,800,000 and
established a conditional commitment to the Community Development Corporation of Utah
(CDCU) for an affordable housing project located within a high opportunity area.
• June 2018: The Board adopted policy guidelines and funding priorities for the NOFA,
Resolution R-17-2018 (Affordable Housing Notice of Funding Availability Policy).
• December 2017: The Board adopted the third amendment for FY 2017-2018, which includes
$4,500,000 for a high opportunity area NOFA.
ATTACHMENTS:
A. Applications Overview
B. Project Summary Sheets
C. Project Priorities and Interest Rate Reductions
D. RDA Finance Committee Funding Recommendation
E. High Opportunity Area Funding Allocation Resolution
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Project 515 Tower ‐ Conversion Phase I Fairmont Heights II
Developer Perpetual Housing Fund Lincoln Avenue Capital TOTAL
Address 515 E 100 S 2257 S 1100 E
RDA Loan Request
RDA Request 2,650,000$ 2,700,000$ 5,350,000$
Total Project Cost 39,231,648$ 34,009,242$
RDA Loan to Cost 6.8%7.9%7.3%Average
Acquisition Loan
Interest Rate (w/ project priority deductions)n/a 1.0%1.0%Average
Term n/a 2
Amortization n/a TBD
Repayment Type n/a Balloon or conversion to permanent loan
Construction to Permanent Loan
Interest Rate (w/ project priority deductions)2.0%1.0%
Term 15 16
Amortization 15 40
Repayment Type Cash Flow Hard
Financial Metrics
Deferred Developer Fee %22%40%31%Average
Tax Credits Yes, 9% reserved Yes, 9%, applying for 2025
Cost per Unit 408,663$ 618,350$ 513,506$ Average
Cost per SF 458$ 1,085$ 771$ Average
Threshold Requirements
Family-Sized Affordable or Deeply Affordable Units Both Deeply Affordable
Energy Star Score 90+Cond. of Approval Cond. of Approval
100% Electric Cond. of Approval Cond. of Approval
Housing Unit Details
40% AMI and Below
Studio 15 - 15
1bd 2 18 20
2bd - 9 9
3bd 2 - 2
4bd 1 - 1
Total 40% AMI & Below 20 27 47
41%-60% AMI
Studio 25 - 25
1bd 6 15 21
2bd - 4 4
3bd 30 - 30
4bd 15 - 15
Total 41%-60% AMI 76 19 95
61%-80% AMI
Studio - - -
1bd - 7 7
2bd - 2 2
3bd - - -
4bd - - -
Total 61%-80% AMI - 9 9
Total Residential Units
Studio 40 - 40
1bd 8 40 48
2bd - 15 15
3bd 32 - 32
4bd 16 - 16
Total of the Total Residential Units 96 55 151
Priorities & Interest Rate Reductions
Family Housing 3
Target Populations 3 3
Transportation Opportunities 1 1
Expand Opportunity 1 1
Architecture and Urban Design 1
Commercial Vitality 1
Historic Preservation/Adaptive Reuse 1
NOFA Ranking Weight Total 10 6 8 Average
Priorities: The four Funding Priorities determined by the FY2023-2024 Annual Housing Funding Priorities include: Family Housing, Target Populations, Homeownership, and Missing
Middle/Unique Housing Type. These receive a weighted ranking of 3 points each as compared to other priorities which receive 1 ranking point.
Interest Rate Reductions: 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
application is 2%.
ATTACHMENT A: APPLICATIONS OVERVIEW
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ATTACHMENT B: PROJECT SUMMARY SHEETS
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PROJECT NAME: 515 Tower - Conversion Phase I
ADDRESS: 515 E 100 S
OVERVIEW
Developer Perpetual Housing Fund of Utah
LLC
Request Type HDLP Loan – High Opportunity
Area
Project Type Adaptive Reuse
Existing Land Use Office
RDA FUNDING REQUEST
Funding Request $2,650,000
Total Project Cost $39,231,648
RDA Loan to Cost 6.75%
PROPOSED TERMS
Interest Rate 2%
Term, Amortization 15 Yr
Repayment Terms Cash Flow
Lien Priority Subordinate to permanent
debt
HDLP THRESHOLDS AND PRIORITIES
Family-Sized Units
and/or Deeply
Affordable Units
Family-Sized Units and
Deeply Affordable Units
90+ Energy Star Score Yes
100% Electric Yes
Priorities Met Family Housing, Target
Populations, Expand
Opportunity, Historic
Preservation/Adaptive
Reuse, Transportation
Opportunities, Commercial
Vitality
TIMELINE
Construction Start May 1, 2024
Construction Completion December 31, 2024
LOW-INCOME HOUSING TAX CREDIT
Applying for Tax Credits
(Y/N)
Yes
Tax Credits Reserved (Y/N) Yes, 9%, 2023 1 The Developer is committing an additional $625,000 of developer fee from the project to create an equity line of credit so that residents can access their equity prior to a refinance or sale event, for a total of $1,125,000 deferred developer fee.
HOUSING UNITS
Bedroom
Count
Total
Units
Market
Rate
41-60%
AMI
<40%
AMI
Studio 40 - 25 15
1 Bed 8 - 6 2
2 Bed - - - -
3 Bed 32 - 30 2
4 Bed 16 - 15 1
Total 96 - 76 20
CONSTRUCTION DEBT AHEAD OF RDA
Source Amount
Senior Debt $16,960,000
PERMANENT SOURCES
Source Amount % of Total
Senior Debt $6,508,958 16.7%
RDA Loan $2,650,000 6.8%
OLWHLF $1,000,000 2.6%
Utility Rebates $76,800 0.2%
LIHTC Equity $27,696,083 71%
SLCO ARPA Grant $598,584 1.5%
Deferred Fee1 $500,000 1.3%
Total $39,030,425 100%
USES
Use Amount % of Cost
Land $16,000,000 41.0%
Hard Costs $15,466,320 39.6%
Soft Costs $1,097,907 2.8%
Developer Fee $2,249,922 5.8%
Financing Expense $1,921,418 4.9%
Contingency $1,686,134 4.3%
Reserves $608,724 1.6%
Total $39,030,425 100%
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PROJECT NAME: 515 Tower - Conversion Phase I
ADDRESS: 515 E 100 S
RDA APPLICATION NOTES
The RDA, through the City’s American Rescue Act Plan (ARPA) funds, allocated $10,000,000 to the Perpetual
Housing Fund of Utah, LLC to purchase this property for an affordable housing development with a tenant wealth
building program. This $10,000,000 will be used for the purchase of the property that would then allow PHF to
develop additional projects that carry out their goals to provide 1,000 affordable homes that will help families and
individuals build wealth. This is a unique model in which the developer will be contributing their own profits, which
they will share with the tenants of the building. This development also applied for funding through the competitive
HDLP, which will be in front of the RDA Finance Committee at a future date. The 515 Tower needs a total of
$2,650,000 and if the full amount is received through this round of high opportunity area funding, they will not
need to request funds through the competitive HDLP process.
PROJECT SUMMARY
From Developer: 515 Conversion Phase I a mixed-income, sustainable, adaptive-reuse project located on the East
side of Salt Lake City. The project is part of multi-phase, mixed-use project on the site and will be a beacon of
affordable housing in the rapidly unattainable east side of Salt Lake City. The overall project is planned to include a
mixed-income daycare, local retailers, and impact-focused commercial and co-working space. This project is
being developed by Perpetual Housing Fund and all 96 units in this phase will feature a shared-equity model -
sharing 75% of the phase's profits and appreciation with the residents living here. 515 will incorporate an array of
amenities that will benefit the lives of its residents including a fitness center, a clubhouse, a Greenbike station on
site (with annual passes included at no charge), indoor bike storage, a bike-repair station, and shared outdoor
space. Located within walking distance of the project is an elementary school, a core bus route, and a public park.
The project will also be fully electric, contributing to better air-quality in the area and improving the health and
wellbeing of its tenants. The units will also be built within the criteria for Enterprise Green Communities 2020.
DEVELOPER SUMMARY
The project is being developed by Perpetual Housing Fund with Giv Communities as a development consultant.
The team has successfully developed or consulted on over a thousand affordable housing units utilizing the Low-
Income Housing Tax Credit, OWHLF, and SLC loan programs along the Wasatch Front. Recent affordable housing
projects by the development team include:
Exchange - Salt Lake City
Project Open Phases 1 and 2 - Salt Lake City
Citizens West Phase I - Salt Lake City
Denver Street Apartments - Salt Lake City
Pamela's Place - Salt Lake City
Imagine Jefferson - Ogden
Startup Crossing - Provo
Harris Village Shelter and Permanent Supportive Housing - Tooele
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PROJECT NAME: 515 Tower - Conversion Phase I
ADDRESS: 515 E 100 S
SITE MAP
PROJECT RENDERINGS
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PROJECT NAME: 515 Tower - Conversion Phase I
ADDRESS: 515 E 100 S
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PROJECT NAME: Fairmont Heights II
ADDRESS: 2257 S 1100 E
OVERVIEW
Developer Lincoln Avenue Capital and
Housing Authority of Salt Lake
City
Request Type HDLP Loan – High Opportunity
Area
Project Type New Construction
Existing Land Use Office
RDA FUNDING REQUEST
Funding Request $2,700,000
Total Project Cost $34,009,242
RDA Loan to Cost 7.9%
PROPOSED TERMS
Interest Rate 1%
Term,
Amortization
Acq: 2 Yr, Balloon or conversion
Perm: 16 Yr, 40 Yr
Repayment Terms Hard for construction to perm
Lien Priority Subordinate to permanent debt
HDLP THRESHOLDS AND PRIORITIES
Family-Sized Units
and/or Deeply
Affordable Units
Deeply Affordable Units
90+ Energy Star Score Yes
100% Electric Yes
Priorities Met Target Populations, Expand
Opportunity,
Transportation
Opportunities, Architecture
and Urban Design
TIMELINE
Acquisition May 1, 2024
Construction Start 2025
HOUSING UNITS
Bedroom
Count
Total
Units
Market
Rate
41-60%
AMI
<40%
AMI
Studio - - - -
1 Bed 40 7 15 18
2 Bed 15 2 4 9
3 Bed - - - -
4 Bed - - - -
Total 55 9 19 27
LOW-INCOME HOUSING TAX CREDIT
Applying for Tax Credits
(Y/N)
Yes, 9%
Tax Credits Reserved (Y/N) No
ACQUISITION SOURCES
Source Amount % of Total
RDA -HDLP
Competitive
$3,200,000 45.1%
RDA High Opp Funds $2,700,000 38.1%
HASLC Cash $800,000 11.3%
LAC Cash $390,000 5.5%
Total $7,090,000 100%
ACQUISITION USES
Source Amount % of Costs
Acquisition $7,000,000 98.7%
Insurance $40,000 0.6%
Closing Costs $50,000 0.7%
Total $7,090,000 100%
CONSTRUCTION DEBT AHEAD OF RDA
Source Amount
Senior Debt $21,767,665
PERMANENT SOURCES
Source Amount % of Total
Senior Debt $3,790,000 11.1%
RDA Loan $2,700,000 7.9%
Utility Rebates $142,500 .42%
LIHTC Equity $26,147,384 76.9%
Deferred Fee $1,229,257 3.6%
GP Capital
Contribution
$100 0.0%
Total $34,009,242 100%
PERMANENT USES
Use Amount % of Cost
Land $3,500,000 10.3%
Hard Costs $23,702,904 69.7%
Soft Costs $898,000 2.6%
Tax Credit Fees $308,375 .9%
Developer Fee $3,091,512 9.1%
Financing Expense
& Reserves
$2,146,018 6.3%
Escrow & Reserves $362,432 1.1%
Total $34,009,242 100%
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PROJECT NAME: Fairmont Heights II
ADDRESS: 2257 S 1100 E
RDA APPLICATION NOTES
This project also applied for $3,200,000 for their Fairmont Heights I project through the competitive HDLP
process. Both phases of the project will be located on the same parcel with Phase 1 being built first and Phase 2 to
follow. The developer is seeking an acquisition to permanent financing loan, which means initial funds would be
used to buy the property, but the developer would need to obtain tax credits, financing, and building approvals
within 2 years. If successful, they would be able to convert their acquisition loan to a longer-term permanent
financing loan. If they are not successful, they will be required to pay back the loan at the end of the acquisition
loan term. This project is seeking funding from both sources of funds.
PROJECT SUMMARY
From Developer: This is Phase II of a two (2) phase project. Phase II is 55 units with 40 1 bed/1 bath units at 710
sf/unit, and 15 2 bed/2 bath units at 1038 sf/unit, with an emphasis on deeply affordable senior housing. The
structure will be a 7-story midrise building comprised of a 2-story parking deck and a 5-story wooden structure
containing the housing. The site is located near the Fairmont stop on the TRAX S-Line. 5 units will be set aside for
the chronically homeless, 5 units for mobility impaired individuals, and 9 units for the disabled. The site presents
an incredible opportunity to tie into the neighborhood fabric and locate housing near transit, employment,
recreation, and services. Both phases are designed to mirror the surrounding neighborhood. The project
transitions into the neighborhood using elements in both the contemporary form of the building and the materials
that clad its skin. The space on the ground floor along Simpson Avenue and 1100 S will activate the building to the
public and bring the design into the neighborhood. The pedestrian nature of the activities within and the rhythm of
the living units help the project feel comfortable.
DEVELOPER SUMMARY
From Developer: Lincoln Avenue Communities was founded with the mission to expand access to high-quality,
affordable homes for families, individuals, and seniors. This work is more important than ever amid historic
inflation and a nationwide housing affordability crisis that have weighed heavily on communities across the
country. These complex challenges have inspired us to continue developing innovative housing solutions that
embody the bold and creative spirit of our growing company. Over the past year, we’ve reaffirmed our commitment
to preserve and create thousands of affordable housing units, and we are excited to have recently broken ground
on several ground-up developments, adding much-needed units to communities across the country. Today, we’re
proud that more than 50,000 residents at 119 properties across 22 states call an LAC community their home.
We’ve maintained a resident-first approach across our portfolio, connecting families, individuals, and seniors with
local organizations, health resources, and opportunities to further their educational and career goals.
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PROJECT NAME: Fairmont Heights II
ADDRESS: 2257 S 1100 E
SITE MAP
PROJECT RENDERINGS
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PROJECT NAME: Fairmont Heights II
ADDRESS: 2257 S 1100 E
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ATTACHMENT C: PROJECT PRIORITIES AND INTEREST RATE REDUCTIONS
Project priority criteria will be utilized to evaluate applications as well as provide for interest rate
reductions.
CATEGORY POLICY OBJECTIVE BENCHMARK
NOFA
RANKIN
G
WEIGHT
*
0.5%
INTEREST
RATE
REDUCTION
**
1 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
Project provides at least
15%*** of the total units as
3+ bedroom units AND
includes family-oriented
community amenities, as
approved by RDA Staff.
3 X
2 Target
Populations
Expand the availability
of units for extremely
low-income households
and special
populations, thereby
providing housing
options for individuals
or families that are
homeless or at risk of
homelessness
Project sets aside at least
15%*** of the units for
extremely low-income
households (40% AMI or
less) and/or special
populations in partnership
with a governmental or
nonprofit entity
3 X
3 Homeownership
Create opportunities
for those who have
historically rented in
the community to
build wealth and
establish permanent
roots through
homeownership
Project is a for-sale product
that will be sold to income
qualified individuals/families
3 X
4
Missing Middle
& Unique
Housing Types
Promote an array of
scale of project types
to diversify the City’s
housing stock/forms
and provide more
affordable living
options for residents
Projects are either a missing
middle housing type (i.e.
townhomes, courtyard
apartments, small-scale
apartments) or a housing
type that is not commonly
built: tiny homes, modular
homes, pre-fab homes,
accessory dwelling units
(ADUs)
3 X
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5 Sustainability
Achieve green building
and energy
conservation standards
to lower housing
expenses, conserve
resources, and
promote resiliency
Projects must be built to Off-
Site Net Zero or On-Site Net
Zero standard as described
in the RDA’s Sustainable
Development Policy
Resolution.
1 X****
6 Transportation
Opportunities
Promote a multimodal
transportation network
and ensure convenient
and equitable access
to a variety of
transportation options
Projects must meet two of
the following:
•Includes a car sharing,
bike sharing, or transit
pass program that is widely
available to employees/
residents
•Includes a commercial
project that includes
employee shower, locker,
and bicycle facilities
•Is located within 1/3 mile
walking distance of a TRAX
station or S-Line station
•Implements reduced
parking strategies without
negatively impacting the
neighborhood
•Incorporates majority of
parking within a primary
structure to minimize the
need for a surface parking
lot
1 X
7 Neighborhood
Safety
Utilize the
development of
housing to reduce the
number of vacant and
distressed buildings
and lots to reduce
crime and return land
to a productive use
Projects are located within
an active RDA project area,
refer to Attachment B: RDA
Project Area Map and
incorporate documented
Crime Prevention through
Environmental Design
(CPTED) principles. RDA
staff shall provide final
review and approval. RDA
staff may require Developer
to provide approval from a
certified professional.
1 X
8 Expand
Opportunity
Provide for
Neighborhoods of
Opportunity by
promoting the
economic diversity of
the housing stock
within neighborhoods
Projects are located within a
High Opportunity Area,
which is defined as an area
that provides conditions that
expand a person’s likelihood
for social mobility as
identified through an
1 X
17
analysis of quality-of-life
indicators. Refer to
Attachment A: High
Opportunity Area Map and
Table
9 Architecture &
Urban Design
Encourage housing
that is high-quality,
enduring, and that
contributes to
neighborhood context
and livability through
architectural and
urban design best
practices
Buildings shall include an
active ground floor use,
significant ground floor
glass, durable building
materials and engaging
building entrances as
determined by RDA staff
1 X
10 Commercial
Vitality
Foster a mix of land
uses and unique
neighborhood business
districts that
adequately meet the
local community’s
needs
Projects are mixed-use and
establish commercial spaces
within the development that
are lacking and desired.
These spaces shall be open
to the public and shall not
be spaces that are exclusive
to the development
1 X
11
Historic
Preservation
/Adaptive Reuse
Encourage the
preservation and/or
reuse of buildings to
preserve the character
of neighborhoods
Project acknowledges a
neighborhood’s history and
maintain its unique character
through preservation,
rehabilitation, or repurposing
of historic or underutilized
structures
1 X
12 Public Art
Promote cultural
expression and add to
the experience and
value of the built
environment through
art that is publicly
visible or accessible
for all to experience
Project contributes at least
1.5% of the RDA
contribution towards the
installation of art onsite or
towards the RDA art fund as
outlined in the RDA Art
Policy
1 X
*Note: NOFA Ranking Weight: Uses a number (the weight) between 1 and 3 to assess the importance of the funding priority,
with 1 being of lower importance and 3 being of the highest importance.
**Note: 0.5% Interest Rate Reductions: While 12 interest rate reductions are available, interest rates can be reduced by a
maximum of 2.0%. Please see Attachment B for applicable standard loan terms and conditions.
***Note: Between the two threshold requirements laid out in Section 3.7, if a project includes both family housing units and
deeply affordable units in accordance with this section, the project may receive the interest rate reduction by meeting the second
threshold requirement at a percentage of 10% instead of 15%.
****Note: Sustainability Interest Rate Reduction: As per the RDA’s Sustainable Development Policy, projects built to an Off-
Site Net Zero standard are eligible for a 1% interest rate reduction and projects built to an On-Site Net Zero standard are eligible
for a 2% interest rate reduction.
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PROJECT/APPLICANT ADDRESS
PROJECT PRIORITIES/INTEREST RATE
REDUCTION AND WEIGHTED
PRIORITY SCORE**
FUNDING
REQUEST PRELIMINARY TERMS*
HDLP High Opportunity
Funds: $2,700,000
TOTAL $5,350,000 $2,650,000
Total Funds:2,700,000$
Recommended Funding: $ 2,650,000
Remaining Funds:$ 50,000
RDA FINANCE
COMMITTEE FUNDING
RECOMMENDATIONS
515 Tower - Conversion
Phase I - Perpetual Housing
Fund
515 E 100 S
Family Housing: 3
Target Populations: 3
Transportation Opportunities: 1
Expand Opportunity: 1
Commercial Vitality: 1
Historic Preservation/Adaptive Reuse: 1
TOTAL: 10
$2,650,000
2% interest rate, 15-year term,
15-year amortization, cash flow
repayments
$2,650,000
Fairmont Heights Phase II -
Lincoln Avenue Capital and
Housing Authority of Salt
Lake City
2257 S 1100
E
Target Populations: 3
Transportation Opportunities: 1
Expand Opportunity: 1
Architecture and Urban Design: 1
TOTAL: 6
$2,700,000
Acquisition: 1% interest rate, 2-
year term, balloon payment or
conversion to permanent loan.
Construction to permanent: 16-
year term, 40-year amortization,
hard repayments
*Final Terms shall comply with the requirements, standard loan terms and conditions, interest-rate reductions, and all other details laid out within the High Opportunity Area
Housing Development Loan Program (HDLP) Guidelines (updated November 2023). 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. Funds may be disbursed in a lump sum if required by senior lenders.
**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.
Attachment D: RDA Finance Committee Funding Recommendation
19
Attachment E: High Opportunity Area Funding Allocation Resolution
20
1
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______________
Housing Development Loan Program (HDLP)
Funding Allocation for High Opportunity Area Affordable Housing
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, pursuant to a motion adopted by the RDA Board of Directors (the “Board”) on
December 5, 2017, the Board set aside $4,500,000 to be dedicated to funding for affordable
housing in areas of high opportunity (the “High Opportunity Funds”).
WHEREAS, the High Opportunity Funds were released for allocation pursuant to the
Affordable Housing Notice of Funding Availability Policy (“NOFA Policy”), passed by the
Board as Resolution R-17-2018.
WHEREAS, the Board subsequently approved Resolution R-25-2019, which allocated
$1,800,000 of the High Opportunity Funds to Community Development Corporation of Utah for
affordable housing in a high opportunity area, leaving $2,700,000 of High Opportunity Funds to
allocate to additional projects.
WHEREAS, the 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 and the
Housing Development Loan Program Policy (“HDLP Policy”), Resolution R-2-2022, which
centralizes the application, underwriting, and approval process across all funding sources
identified in the Funds Policy. The HDLP Policy repealed and replaced the NOFA Policy.
WHEREAS, through a Notice of Funding Availability (“NOFA”), the RDA administered a loan
application and review process pursuant to the HDLP Policy and the RDA’s Housing Funding
Priorities for Fiscal Year 2023-2024 set forth in R-8-2023 (“Funding Priorities”) that resulted in
two requests for funding totaling $5,350,000.
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2
WHEREAS, on February 1, 2024, the RDA’s Finance Committee (“Finance Committee”)
reviewed the HDLP applications and recommended funding allocations and preliminary terms
for the remaining High Opportunity Funds, as further described in 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
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
preliminary terms 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 February 2024.
________________________________
Alejandro Puy, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Sara Montoya
Date:____________________________
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
January 26, 2024
22
3
________________________________
Erin Mendenhall, Executive Director
Attest:
________________________
City Recorder
23
PROJECT/APPLICANT ADDRESS
PROJECT PRIORITIES/INTEREST RATE
REDUCTION AND WEIGHTED
PRIORITY SCORE**
FUNDING
REQUEST PRELIMINARY TERMS*
HDLP High Opportunity
Funds: $2,700,000
TOTAL $5,350,000 $2,650,000
Total Funds:$ 2,700,000
Recommended Funding: $ 2,650,000
Remaining Funds:$ 50,000
RDA FINANCE
COMMITTEE FUNDING
RECOMMENDATIONS
515 Tower - Conversion
Phase I - Perpetual Housing
Fund
515 E 100 S
Family Housing: 3
Target Populations: 3
Transportation Opportunities: 1
Expand Opportunity: 1
Commercial Vitality: 1
Historic Preservation/Adaptive Reuse: 1
TOTAL: 10
$2,650,000
2% interest rate, 15-year term,
15-year amortization, cash flow
repayments
$2,650,000
Fairmont Heights Phase II -
Lincoln Avenue Capital and
Housing Authority of Salt
Lake City
2257 S 1100
E
Target Populations: 3
Transportation Opportunities: 1
Expand Opportunity: 1
Architecture and Urban Design: 1
TOTAL: 6
$2,700,000
Acquisition: 1% interest rate, 2-
year term, balloon payment or
conversion to permanent loan.
Construction to permanent: 16-
year term, 40-year amortization,
hard repayments
*Final Terms shall comply with the requirements, standard loan terms and conditions, interest-rate reductions, and all other details laid out within the High Opportunity Area
Housing Development Loan Program (HDLP) Guidelines (updated November 2023). 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. Funds may be disbursed in a lump sum if required by senior lenders.
**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.
EXHIBIT A: RDA FINANCE COMMITTEE RECOMMENDED HIGH OPPORTUNITY
AREA HDLP FUNDING ALLOCATIONS
4
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5
EXHIBIT B: RDA BOARD APPROVED HIGH OPPORTUNITY AREA HDLP
FUNDING ALLOCATIONS
(To add after Board Meeting)
25