Proposed Resolution - 3/1/20241
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______________
Affordable Housing – FY2023-2024 Competitive 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 $13,761,164 of Housing Funds for affordable housing
through the RDA’s Competitive Housing Development Loan Program (“HDLP”). The Board may
also allocate an additional $1,665,000, which is the result of loan commitments from FY2022-
2023 that were rescinded.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 2023-2024 set forth
in R-3-2023 (“Funding Priorities”) that resulted in fifteen eligible requests for funding totaling
$27,464,243.
WHEREAS, on February 21, 2024, the RDA’s Finance Committee (“Finance Committee”)
reviewed the Competitive HDLP applications, and recommended funding allocations and
preliminary terms 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
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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 March 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.
________________________________
Erin Mendenhall, Executive Director
Attest:
________________________
City Recorder
February 29, 2024
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EXHIBIT A: RDA FINANCE COMMITTEE RECOMMENDED COMPETITIVE HDLP
FUNDING ALLOCATIONS
The RDA HDLP Finance Committee recommends that funding be allocated to projects
in order of funding ranking.
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EXHIBIT A: RDA FINANCE COMMITTEE FUNDING RECOMMENDATIONS
The RDA Finance Committee recommends that funding be allocated to projects in the order of Funding Ranking.
PROJECT/APPLICANT ADDRESS
WEIGHTED PROJECT PRIORITY
SCORE/INTEREST RATE REDUCTION*FUNDING REQUEST PRELIMINARY TERMS**
RDA Committed
Funds
Possible Additional
RDA Funds
HOME Program
Income
HOME Development
Fund
HOME ARP
Development
TOTAL FUNDING
RECOMMENDATION
FUNDING
RANKING
Norbridge Court
Artspace
Bumper House
SMH Builders
New City Plaza Apartments
Housing Connect
515 Tower - Conversion Phase I
Perpetual Housing Fund
2nd South Apartments
Hermes Affordable Services, LLC
The Catherine Phase 1
22 Communities
The Catherine Phase 2
22 Communities
Citizens West 4
Developed. By Women. & Ivan
Carroll
Fairmont Heights I
Lincoln Avenue Communities
Project Open 3
Perpetual Housing Fund
Pharos Apartments
Housing Authority of Salt Lake City
Book Cliffs Lodge
Housing Authority of Salt Lake City
Liberty Corner
Cowboy Partners
9Ten West
Great Lakes Capital
Alliance House 1805 Rebuild
Alliance House & Cowboy Partners
TOTAL $27,464,243 $4,241,714 $1,665,000 $6,939,710 $726,291 $1,501,608 $15,074,323
Funds Availability Total Available Recommended Funding Funds Remaining
RDA Committed Funds $4,241,714 $4,241,714 $- Grey box: Applicant qualifies for but doesn't want these funds.
Possible Additional RDA Funds $1,665,000 $1,665,000 $- Black box: Applicant does not qualify for these funds.
HOME Program Income $6,939,710 $6,939,710 $-
HOME Development Fund $726,291 $726,291 $-
HOME ARP Development $1,501,608 $1,501,608 $-
HOME Community Housing
Development Organization Funds $351,841 $0 $ 351,841
Total Potential HDLP Funds $15,426,164 $15,074,323 $351,841
*** While reviewing applications, the Committee took into consideration their February 1, 2024 High Opportunity Area HDLP funding recommendation and agreed to maintain their submitted recommendation to fund 515 Tower – Conversion 1 with High Opportunity Area funds. The Committee’s competitive HDLP funding
recommendations incorporate the previously submitted High Opportunity Area recommendation.
Legend:
Target Populations: 3
Missing Middle: 3
Neighborhood Safety: 1
TOTAL: 7
* 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.
NOTE: For all loan awards greater than $899,999, the Sustainable Development Policy requires buildings to be designed to operate without fossil fuels, but it would not restrict the ability to have backup generators for emergencies.
** Final Terms shall comply with the requirements, standard loan terms and conditions, interest- rate reductions, and all other details laid out within the FY2023-2024 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 it 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 loan; consideration may be made for other government entity loans if required through their
policies. Funds may be disbursed in a lump sum if required by senior lender(s).
Funding Recommended by Finance Committee
Transportation Opportunities: 1
Architecture & Urban Design: 1
Commercial Vitality: 1
Public Art: 1
TOTAL: 4
Family Housing: 3
Transportation Opportunities: 1
Commercial Vitality: 1
Public Art: 1
TOTAL: 6
Family Housing: 3
Target Populations: 3
Transportation Opportunities: 1
Architecture & Urban Design: 1
Commercial Vitality: 1
Public Art: 1
TOTAL: 10
Target Populations: 3
Expand Opportunity: 1
Transportation Opportunities: 1
Architecture & Urban Design: 1
TOTAL: 6
Family Housing: 3
Homeownership: 3
Missing Middle: 3
Transportation Opportunities: 1
Architecture & Urban Design: 1
Public Art: 1
TOTAL: 12
Target Populations: 3
Transportation Opportunities: 1
Neighborhood Safety: 1
TOTAL: 5
Target Populations: 3
Transportation Opportunities: 1
Neighborhood Safety: 1
TOTAL: 5
Family Housing: 3
Target Populations: 3
Transportation Opportunities: 1
Neighborhood Safety: 1
Architecture & Urban Design: 1
Commercial Vitality: 1
TOTAL: 10
Target Populations: 3
Transportation Opportunities: 1
Neighborhood Safety: 1
Commercial Vitality: 1
Public Art: 1
TOTAL: 7
8
13
$500,000 $500,000
Target Populations: 3
Transportation Opportunities: 1
Neighborhood Safety: 1
Architecture & Urban Design: 1
Commercial Vitality: 1
Public Art: 1
TOTAL: 8
Interest Rate: 1.0%
Term: 30 year
Amortization: 30 year
Hard Repayments
Interest Rate: 1.5%
Term: 17 year
Amortization: 40 year
Hard Repayments
Interest Rate: 2.5%
Term: 40 year
Amortization: 40 year
Cash Flow Repayments
Interest Rate: 2.0%
Term: 15 year
Amortization: 15 year
Cash Flow Repayments
Interest Rate: 2.0%
Term: 30 year
Amortization: 30 year
Cash Flow Repayments
Interest Rate: 2.0%
Term: 16 year
Amortization: 40 year
Cash Flow Repayments
Interest Rate: 2.0%
Term: 16 year
Amortization: 40 year
Cash Flow Repayments
Interest Rate: 1.0%
Term: 15 year
Amortization: 30 year
Hard Repayments
Interest Rate: 1.0%
Acquisition Term: 2-year Balloon
or conversion to Permanent:
Term: 16 year
Amortization: 40 year
Hard Repayments
Interest Rate: 1.0%
Term: 18 month
Balloon Repayment
Interest Rate: 2.5%
Term: 15 year
Amortization: 40 year
Cash Flow Repayments
Interest Rate: 2.5%
Term: 15 year
Amortization: 30 year
Cash Flow Repayments
Interest Rate: 2.0%
Term: 40 year
Amortization: 40 year
Cash Flow Repayments
Interest Rate: 2.0%
Term: 16 year
Amortization: 40 year
Cash Flow Repayments
Interest Rate: 2.5%
Term: 40 year
Amortization: 40 year
Cash Flow Repayments
Transportation Opportunities: 1
Neighborhood Safety: 1
Public Art: 1
TOTAL: 3
Target Populations: 3
Commercial Vitality: 1
Historic Preservation/Adaptive Reuse: 1
TOTAL: 5
4
9
12
11
1
10
2
7
14
5
3
10
6
511 W 200 S $895,000 $895,000
$0
$895,000
$3,000,000
$895,000
$0***
$1,000,000
$2,420,000
Family Housing: 3
Target Populations: 3
Expand Opportunity: 1
Historic Preservation/Adaptive Reuse: 1
Transportation Opportunities: 1
Commercial Vitality: 1
TOTAL: 10
Family Housing: 3
Target Populations: 3
Transportation Opportunities: 1
Public Art: 1
TOTAL: 8
269 W Brooklyn Ave
1966 S 200 E
515 E 100 S
934-948 W 200 S
1881 W N Temple
1881 W N Temple
515 W 300 N
1805 S Main St
2557 S 1100 E
529 W 400 N
915 W 200 N
1159 S W Temple
1265 S 300 W
910 W N Temple
$895,000$895,000
$2,650,000
$3,000,000
$2,524,802
$1,569,441
$2,000,000
$500,000
$134,323
$1,000,000
$400,000
$3,200,000
$710,000
$880,000
$740,000
$4,500,000
$1,000,000
$740,000
$1,236,714 $1,530,677
$134,323
$2,420,000
$1,000,000
$400,000 $400,000
$1,000,000
$710,000 $710,000
$47,101 $106,608$726,291
$1,000,000
$1,732,609
$880,000
$740,000
$4,500,000
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EXHIBIT B: RDA BOARD APPROVED COMPETITIVE HDLP FUNDING
ALLOCATIONS
(To add after Board Meeting)
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