Proposed Resolution - 1/26/20241
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 The HDLP Policy repealed and replaced the NOFA Policy.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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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
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________________________________
Erin Mendenhall, Executive Director
Attest:
________________________
City Recorder
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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.
EXHIBIT A: RDA FINANCE COMMITTEE RECOMMENDED HIGH OPPORTUNITY
AREA HDLP FUNDING ALLOCATIONS
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EXHIBIT B: RDA BOARD APPROVED HIGH OPPORTUNITY AREA HDLP
FUNDING ALLOCATIONS
(To add after Board Meeting)
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