HomeMy WebLinkAboutProposed Resolution - 3/3/20251
SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY
RESOLUTION NO. _______________
Affordable Housing – FY 2024-2025Competitive Housing Development Loan Program
(HDLP) Funding Allocations
RESOLUTION OF THE BOARD OF DIRECTORS OF THE SALT LAKE CITY COMMUNITY
REINVESTMENT AGENCY APPROVING CITYWIDE AFFORDABLE HOUSING PROJECT
FUNDING ALLOCATIONS.
WHEREAS, the Salt Lake City Community Reinvestment Agency (“CRA”) was created to
transact the business and exercise the powers provided for in the Utah Co mmunity 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 CRA 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 b ased on
funding source (“Housing Funds”).
WHEREAS, the Board has set aside $5,062,189 of Housing Funds for affordable housing through
the CRA’s Competitive Housing Development Loan Program (“HDLP”). The Board may also
allocate an additional $710,000, which is the result of loan commitments from FY 2023-2024 that
were rescinded, for a total of $5,772,189 of HDLP funds available (the "Competitive HDLP
Funds”). The allocation of funds is contingent upon an application and review process
administered by the CRA to facilitate funding of qualified projects that meet the goals established
by the HDLP.
WHEREAS, through a Notice of Funding Availability (“NOFA”), the CRA administered a loan
application and review process for the Competitive HDLP Funds pursuant to the HDLP policy set
forth in resolution R-2-2022 (the “HDLP Policy”) and the CRA’s Housing Funding Priorities for
Fiscal Year 2024-2025 set forth in R-2-2024 (“Funding Priorities”) that resulted in five eligible
requests for funding totaling $7,750,000 (the “Competitive HDLP Applications”).
WHEREAS, of the $5,772,189 Competitive HDLP Funds available, $475,330 are reserved for
Community Housing Development Organization (“CHDO”) applicants only. Because no eligible
CHDO applicants applied, the remaining Competitive HDLP Funds that may be allocated under
the NOFA for FY 2024-2025 is $5,296,859.
WHEREAS, on February 19, 2025, the Finance Committee reviewed the Competitive HDLP
Applications, and recommended funding allocations and preliminary terms as further described in
on Exhibit A.
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PROJECT/APPLICANT ADDRESS
WEIGHTED PROJECT PRIORITY SCORE/INTEREST
RATE REDUCTION*
FUNDING
REQUEST PRELIMINARY TERMS**
CRA Committed
Funds
Possible
Additional CRA
Funds
HOME CHDO
Funds
TOTAL FUNDING
RECOMMENDATI
ON
FUNDING
RANKING***
1300 South
Hermes Affordable Services, LLC
North West Pipeline
Housing Assistance Management
Enterprise (HAME)
Flats at Folsom
Lincoln Avenue Communities
The Hive on 11th
Lincoln Avenue Communities
The Gregory
Great Lakes Capital
TOTAL $7,750,000 $4,586,859 $710,000 $0 $5,296,859
*** The Finance Committee recommended that if the possible additional CRA funds are not approved by the CRA Board that the CRA committed funds be allocated as recommended.
Funds Availability Total Available Recommended Funding Funds Remaining
CRA Committed Funds $4,586,859 $4,586,859 $- Black box: Applicant does not qualify for these funds.
Possible Additional CRA Funds $710,000 $710,000 $-
HOME Community Housing Development
Organization (CHDO) Funds 475,330$ $0 $ 475,330
Total Potential HDLP Funds $5,772,189 $5,296,859 $475,330
* 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.
** Final Terms shall comply with the requirements, standard loan terms and conditions, interest- rate reductions, and all other details laid out within the FY2024-2025 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).
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.
Funding Recommended by Finance Committee
Legend:
Conditions of Approval:
$1,836,859 $163,141 $2,000,000 15738 W South Temple
Family Housing with Amenities for Children: 3
Deeply Affordable Housing: 3
Neighborhood Commercial & Services: 3
Architecture & Urban Design: 1
Neighborhood Safety: 1
Public Art: 1
TOTAL: 12
$2,000,000 Interest Rate: 2.0%
Term: 18 year
Cash Flow Repayments
Interest Rate: 2.0%
Term: 18 year
Cash Flow Repayments
$1,000,000 $546,859 $1,546,859 341116 S Richards St
Family Housing with Amenities for Children: 3
Deeply Affordable Housing: 3
Architecture & Urban Design: 1
Public Art: 1
TOTAL: 8
$2,000,000
$0 5316 S 800 W
Deeply Affordable Housing: 3
Architecture & Urban Design: 1
Public Art: 1
TOTAL: 5
$2,000,000 Interest Rate: 2.5%
Term: 18 year
Cash Flow Repayments
Interest Rate: 2.0%
Term: 40 year
Cash Flow Repayments and
repayment upon sales of
units
$1,000,000 $1,000,000 22315 East 200 South
Family Housing with Amenities for Children: 3
Ownership: Wealth Building Opportunity: 3
Neighborhood Commercial & Services: 3
Expand Opportunity: 3
Architecture & Urban Design: 1
Building Preservation, Rehabilitation, or Adaptive Reuse:
1
Public Space: 1
Public Art: 1
TOTAL: 16
$1,000,000
$750,000 $750,000 311215-1225 S 400 W & 390
W 1300 S
Family Housing with Amenities for Children: 3
Deeply Affordable Housing: 3
Architecture & Urban Design: 1
Public Art: 1
TOTAL: 8
$750,000 Interest Rate: 2.0%
Term: 30 year
Cash Flow Repayments
EXHIBIT A: FY2024-2025 CRA FINANCE COMMITTEE FUNDING RECOMMENDATIONS
The CRA Finance Committee recommends that funding be allocated to projects in order of funding ranking.
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EXHIBIT B: FY2024-2025 CRA BOARD APPROVED HDLP FUNDING ALLOCATIONS
PROJECT/APPLICANT ADDRESS
WEIGHTED PROJECT PRIORITY SCORE/INTEREST
RATE REDUCTION*
FUNDING
REQUEST PRELIMINARY TERMS**
CRA Committed
Funds
Possible
Additional CRA
Funds
HOME CHDO
Funds
TOTAL FUNDING
RECOMMENDATI
ON
FUNDING
RANKING***
1300 South
Hermes Affordable Services, LLC
North West Pipeline
Housing Assistance Management
Enterprise (HAME)
Flats at Folsom
Lincoln Avenue Communities
The Hive on 11th
Lincoln Avenue Communities
The Gregory
Great Lakes Capital
TOTAL $7,750,000 $4,586,859 $710,000 $0 $5,296,859
*** The Finance Committee recommended that if the possible additional CRA funds are not approved by the CRA Board that the CRA committed funds be allocated as recommended.
Funds Availability Total Available Recommended Funding Funds Remaining
CRA Committed Funds $4,586,859 $4,586,859 $- Black box: Applicant does not qualify for these funds.
Possible Additional CRA Funds $710,000 $710,000 $-
HOME Community Housing Development
Organization (CHDO) Funds 475,330$ $0 $ 475,330
Total Potential HDLP Funds $5,772,189 $5,296,859 $475,330
1 1215-1225 S 400 W & 390
W 1300 S
Family Housing with Amenities for Children: 3
Deeply Affordable Housing: 3
Architecture & Urban Design: 1
Public Art: 1
TOTAL: 8
$750,000 Interest Rate: 2.0%
Term: 30 year
Cash Flow Repayments
$750,000 $750,000 3
2 315 East 200 South
Family Housing with Amenities for Children: 3
Ownership: Wealth Building Opportunity: 3
Neighborhood Commercial & Services: 3
Expand Opportunity: 3
Architecture & Urban Design: 1
Building Preservation, Rehabilitation, or Adaptive Reuse:
1
Public Space: 1
Public Art: 1
TOTAL: 16
$1,000,000
Interest Rate: 2.0%
Term: 40 year
Cash Flow Repayments and
repayment upon sales of
units
$1,000,000 $1,000,000 2
3 16 S 800 W
Deeply Affordable Housing: 3
Architecture & Urban Design: 1
Public Art: 1
TOTAL: 5
$2,000,000 Interest Rate: 2.5%
Term: 18 year
Cash Flow Repayments
$0 5
4 1116 S Richards St
Family Housing with Amenities for Children: 3
Deeply Affordable Housing: 3
Architecture & Urban Design: 1
Public Art: 1
TOTAL: 8
$2,000,000 Interest Rate: 2.0%
Term: 18 year
Cash Flow Repayments
$1,000,000 $546,859 $1,546,859 3
5 738 W South Temple
Family Housing with Amenities for Children: 3
Deeply Affordable Housing: 3
Neighborhood Commercial & Services: 3
Architecture & Urban Design: 1
Neighborhood Safety: 1
Public Art: 1
TOTAL: 12
$2,000,000 Interest Rate: 2.0%
Term: 18 year
Cash Flow Repayments
$1,836,859 $163,141 $2,000,000 1
Legend:
Conditions of Approval:
* 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.
** Final Terms shall comply with the requirements, standard loan terms and conditions, interest- rate reductions, and all other details laid out within the FY2024-2025 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).
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.
Funding Recommended by Finance Committee
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