10 of 2024 - Housing Development Loan Program (HDLP) Funding Allocations Amendment for The Catherine21
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO.
AMENDMENT: Affordable Housing – FY2023-2024 Competitive Housing Development
Loan Program (HDLP) Funding Allocation Amendments
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY AMENDING CERTAIN 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, through a Notice of Funding Availability (“NOFA”), the RDA administered a loan
application and review process for the Competitive Housing Development Loan Program
HDLP”) funds 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-8-
2023.
WHEREAS, pursuant to Resolution R-1-2024, passed by the Board on March 19, 2024, the Board
previously allocated $15,426,164 of Competitive HDLP funds to a number of affordable housing
development applicants (“2024 HDLP Allocation”).
WHEREAS, as part of the 2024 HDLP Allocation, the Board approved a $1,000,000 allocation
to The Catherine Phase 1 and a $134,323 allocation to The Catherine Phase 2 (collectively with
The Catherine Phase 1, the “Catherine Project”) to fund construction of affordable housing
located at 1881 West North Temple in Salt Lake City.
WHEREAS, following the Board’s approval of the HDLP funding allocations, RDA staff
received a request to amend the proposed loan terms for the Catherine Project to accommodate use
of the funds for property acquisition in addition to construction, along with changes to the terms.
WHEREAS, the Finance Committee has reviewed the amendment request and recommends the
term amendments described in Exhibit A be approved by the Board.
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10 of 2024
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WHEREAS, following the Board’s approval of the proposed amendments set forth on Exhibit A,
the RDA shall provide a 24-month conditional commitment period, starting from March 19, 2024,
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 allocation and amended preliminary terms as further described in Exhibit A, 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 A 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 June 2024.
Alejandro Puy, Chair
Approved as to form:
Salt Lake City Attorney’s Office
Sara Montoya
Date:May 24, 2024
The Executive Director:
does not request reconsideration
requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Attest:
City Recorder
2
11th
Jun 24, 2024
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4
PROJECTIAPPLICA ADDRESS NT
1881 WN Temple
1881 WN Temple
WEIGHTED PROJECT LIHTC PRIORITY Awarded? SCORE/INTEREST RATE
Applying, 4%
REDUCTION'
Transportation Opportunities: 1 Architecture & Urban Design: 1 Commercial Vitality: 1 Public Art: TOTAL: 4
Family Housing: 3 Transportation Opportunities:
FUNDIN G REQUE ST
ASAPPROVED PRELIMINAR y TERMS• ..
PROPOSED PRELIMINA RY TERMS ..
Interest Rate: 1.0%"'*** Interest Rate: 2.0% Acquisition: 2 Yr
$1,000,000 ::��i !!lae:r 40 Term, Balloon or Conversion. year Cash Flow Repayments Construction to Perm: Term: 16 year Amortization: 40 year Cash Flow Repayments
Interest Rate:
Interest Rate: 2.0% 1.0% ****
Term: 16 year Acquisition: 2 Yr
Applying, 4% Commercial Vitality: $134,323 Amortization: 40 Term, Balloon or Conversion. Public Art: TOTAL: 6 year Cash Flow Repayments Construction to Perm: Term: 16 year Amortization: 40 year Cash Flow Repayments
RDA FUNDS
$134,323
HOME Progra TOTAL m FUNDING lncom RECOMMENDATI e
$1,000,00 0
ON
$1,000,000
$134,323
0 • 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:
10
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. *" 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) . ..,,. 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. *"*"If the Developer is unable to secure tax credits, financing, or meet conditions to convert the loan to a construction to permanent loan, and cannot fulfill the affordable housing obligation, the 30-year deed restriction on the property could be removed and the RDA's 1 % acquisition interest rate would be replaced by the rate of the United States Treasury Yield Curve of the loan term at time of closing plus 800 basis points (i.e. 2-Year yield+ 8%) of the repayment of the HOME and RDA funds.
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.
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Adopted June 11, 2024 - RDA Resolution 10
of 2024 Amendment to Housing Development
Loan Funding Allocations for The Catherine
Final Audit Report 2024-06-25
Created:2024-06-20
By:DeeDee Robinson (deedee.robinson@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAAW5AAoXO6wNFapZqbOsWrpYK5URqiD3MB
"Adopted June 11, 2024 - RDA Resolution 10 of 2024 Amendme
nt to Housing Development Loan Funding Allocations for The Ca
therine" History
Document created by DeeDee Robinson (deedee.robinson@slcgov.com)
2024-06-20 - 4:33:12 PM GMT
Document emailed to Sara Montoya (sara.montoya@slcgov.com) for signature
2024-06-20 - 4:37:31 PM GMT
Email viewed by Sara Montoya (sara.montoya@slcgov.com)
2024-06-20 - 6:59:42 PM GMT
Document e-signed by Sara Montoya (sara.montoya@slcgov.com)
Signature Date: 2024-06-25 - 4:34:37 AM GMT - Time Source: server
Document emailed to alejandro.puy@slcgov.com for signature
2024-06-25 - 4:34:39 AM GMT
Email viewed by alejandro.puy@slcgov.com
2024-06-25 - 5:10:17 AM GMT
Signer alejandro.puy@slcgov.com entered name at signing as Alejandro Puy
2024-06-25 - 5:11:14 AM GMT
Document e-signed by Alejandro Puy (alejandro.puy@slcgov.com)
Signature Date: 2024-06-25 - 5:11:16 AM GMT - Time Source: server
Document emailed to Erin Mendenhall (erin.mendenhall@slcgov.com) for signature
2024-06-25 - 5:11:18 AM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2024-06-25 - 1:34:39 PM GMT
Document signing delegated to rachel otto (rachel.otto@slcgov.com) by Erin Mendenhall
(erin.mendenhall@slcgov.com)
2024-06-25 - 1:34:57 PM GMT
Document emailed to rachel otto (rachel.otto@slcgov.com) for signature
2024-06-25 - 1:34:58 PM GMT
Email viewed by rachel otto (rachel.otto@slcgov.com)
2024-06-25 - 2:02:07 PM GMT
Document e-signed by rachel otto (rachel.otto@slcgov.com)
Signature Date: 2024-06-25 - 2:03:00 PM GMT - Time Source: server
Document emailed to Cindy Trishman (cindy.trishman@slcgov.com) for signature
2024-06-25 - 2:03:01 PM GMT
Document e-signed by Cindy Trishman (cindy.trishman@slcgov.com)
Signature Date: 2024-06-25 - 11:21:29 PM GMT - Time Source: server
Agreement completed.
2024-06-25 - 11:21:29 PM GMT