HomeMy WebLinkAbout02 of 2025 - Housing Development Loan Program (HDLP) Funding Allocations for Gap FinancingSALT LAKE CITY COMMUNITY REINVESTMENT AGENCY
RESOLUTION 02 of 2025
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 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 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 based 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were rescinded, for a total of $5,772,189 of HDLP funds available (the "Competitive HDLP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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37
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Passed by the Board of Directors of the Salt Lake City Community Reinvestment Agency, this 18th day of March, 2025
Approved as to form: Jennifer Huntsman, Senior Attorney
Date:
The Executive Director:
__ does not request reconsideration __ requests reconsideration at the next regular Agency meeting.
Darin Mano, Chair
Erin Mendenhall, Executive Director
Attest:
City Recorder
Jennifer Huntsman (Mar 19, 2025 16:47 MDT)
Jennifer Huntsman
03/19/2025
Darin Man* (+r 1, 2025 11:51 MDT)
*arin 3anR
rin Men en#a'' (+r 1, 2025 16:20 MDT)
4
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.
PROJECT/APPLICANT
1300 South
Hermes Affordable Services, LLC
North West Pipeline
Housing Assistance Management
Ente,prise (HAME)
Flats at Folsom
Lincoln Avenue Communities
The Hive on 11th
Lincoln Avenue Communities
The Gregory
Great Lakes Capital
ADDRESS
1215-1225 S400W & 39 0
W 1300S
315East 2 00South
16S8 00W
1116SRichardsSt
738WSouthTemple
WEIGHTED PROJECT PRIORITY SCORE/INTEREST
RATE REDUCTION'
Family Housing with Amenities for Children:
Deeply Affordable Housing:
Architecture& Urban Design: 1
PublicArt 1
TOTAL: 8
Family Housing with Amenities for Children:
Ownership: Wealth Building Opportunity:
Neighborhood Commercial & Services:
Expand Opportunity:
Architecture&Urban Design:
Building Preservation, Rehabilitation, or Adaptive Reuse:
1
PublicSpace: 1
PublicArt: 1
TOTAL: 16
DeeplyAffordableHousing: 3
Architecture& Urban Design: 1
PublicArt 1
TOTAL: 5
Family Housing with Amenities for Children:
FUNDING
REQUEST PRELIMINARY TERMS ..
lnterestRate:2.0%
$750,000 Term:30year
Cash Flow Repayments
lnterestRate:2.0%
Term:40year
$1,000,000 Cash Flow Repayments and
repayment upon sales of
units
lnterestRate:2.5%
$2,000,000 Term: 18 year
Cash Flow Repayments
Deeply Affordable Housing: Interest Rate: 2.0%
Architecture & Urban Design: $2,000,000 Term: 18 year
Public Art· 1 Cash Flow Repayments
TOTAL: 8
Family Housing with Amenities for Children:
Deeply Affordable Housing:
Neighborhood Commercial & Services: Interest Rate: 2.0%
Architecture & Urban Design: 1 $2,000,000 Term: 18 year
Neighborhood Safety: 1 Cash Flow Repayments
PublicArt 1
TOTAL: 12
$7,750.000
••• The Finance Committee recommended that d the possible additional CRA funds are not approved by the CRA Board that the CRA committed funds be allocated as recommended.
Conditions of Approval:
CRA Committed
Funds
$75-0.000
$1,000,000
$1,000,000
S1.836.859
14.586.859
Possible
Additional CRA
Funds
• 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 FY2024-2 025 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 d required through their policies. Funds may be disbursed in a lump sum d 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
Funds Availability Total Available Recommended Funding Funds Remaining Legend:
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 (CHOO) Funds $ 475,330 so$ 475,330
Total Potential HOLP Funds $5.772.189 15.296.859 $475.330
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EXHIBIT B: FY2024-2025 CRA BOARD APPROVED HDLP FUNDING ALLOCATIONS
PROJECT/APPLICANT
1300 South
Hermes Affordable Services, LLC
North West Pipeline
Housing Assistance Management
Ente,prise (HAME)
Flats at Folsom
Lincoln Avenue Communities
The Hive on 11th
Lincoln Avenue Communities
The Gregory
Great Lakes Capital
ADDRESS
1215-122 5 S400W & 390
W 1300S
315East 2 00South
16S 800W
1116SRichardsSt
738WSouthTemple
WEIGHTED PROJECT PRIORITY SCORE/INTEREST FUNDING
RATE REDUCTION' REQUEST PRELIMINARY TERMS ..
Family Housing with Amenities for Children:
Deeply Affordable Housing: lnterestRate:2.0%
Architecture& Urban Design: 1 $750,000 Term:30year
PublicArt 1 Cash Flow Repayments
TOTAL: 8
Family Housing with Amenities for Children:
Ownership: Wealth Building Opportunity:
Neighborhood Commercial & Services: lnterestRate:2.0% Expand Opportunity: Term:40year Architecture&UrbanDesign: $1,000,000 Cash Flow Repayments and Building Preservation, Rehabilitation, or Adaptive Reuse: repayment upon sales of 1 units PublicSpace: 1
PublicArt: 1
TOTAL: 16
DeeplyAffordableHousing: 3 lnterestRate:2.5% Architecture& Urban Design: 1 $2,000,000 Term: 18year PublicArt 1
TOTAL: 5 Cash Flow Repayments
Family Housing with Amenities for Children:
Deeply Affordable Housing: lnterestRate:2.0%
Architecture&UrbanDesign: $2,000,000 Term: 18year
PublicArt· 1 Cash Flow Repayments
TOTAL: 8
Family Housing with Amenities for Children:
Deeply Affordable Housing:
Neighborhood Commercial & Services: lnterestRate:2.0%
Architecture&UrbanDesign: 1 $2,000,000 Term: 18year
Neighborhood Safety: 1 Cash Flow Repayments
PublicArt 1
TOTAL: 12
$7,750,000
••• The Finance Committee recommended that d the possible additional CRA funds are not approved by the CR A Board that the CR A committed funds be allocated as recommended.
Conditions of Approval:
Possible
CRA Committed Additional CRA
Funds Funds
$75-0,000
$1,000,000
$1,000,000 $546,859
$1,836,859 $163,141
$4,586,859
• 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 FY20 24-2 025 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 HD LP 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 d required through their policies. Funds may be disbursed in a lump sum d 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
Funds Availability Total Available Recommended Funding Funds Remaining Legend:
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 (CHOO) Funds $ 475,330 so$ 475,330
Total Potential HDLP Funds $5,772,189 $5,296,859 $475,330
40
Resolution 02 of 2025 Housing Development
Loan Program (HDLP) Funding Allocations for
Gap Financing
Final Audit Report 2025-04-01
Created:2025-03-19
By:Michelle Barney (Michelle.Barney@slc.gov)
Status:Signed
Transaction ID:CBJCHBCAABAAQ30U2C1toyo8uCjTJfjhbcOY_kNbDT5j
"Resolution 02 of 2025 Housing Development Loan Program (H
DLP) Funding Allocations for Gap Financing" History
Document created by Michelle Barney (Michelle.Barney@slc.gov)
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Agreement completed.
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