Loading...
HomeMy WebLinkAboutProposed Resolution - 5/6/2025 (3)1 RESOLUTION NO.________ OF 2025 (A Resolution to Adopt a Legislative Policy for the Salt Lake City Housing Program Funds) WHEREAS, Salt Lake City Corporation (City), through the use of Housing Program Funds, supports the goals of helping address housing affordability for all residents and providing increased affordable housing opportunities for low-income households; and WHEREAS, adopting a legislative policy for the Salt Lake City Housing Program Funds will facilitate budgetary and reporting transparency, streamline subrecipient application and recommendation processes, ensure alignment with City best practices, and increase compliance with state and federal requirements; and WHEREAS, this legislative policy will also establish a new Housing Programs Loan Committee and a new Tenant and Homeowner Loan Fund to support the administration of the Housing Program Funds; and WHEREAS, the City Council does now meet on this ___ day of __________, 2025 to adopt a legislative policy for the Salt Lake City Housing Program Funds. NOW, THEREFORE, be it resolved that the City Council of Salt Lake City, Utah, hereby adopts the attached legislative policy for the Salt Lake City Housing Program Funds as set forth in Exhibit A. Passed by the City Council of Salt Lake City, Utah, this ____ day of ______________, 2025. SALT LAKE CITY COUNCIL By _____________________________ CHAIR Approved as to form: __________________________ Salt Lake City Attorney’s Office Date: ___________________________ ATTEST: _________________________________ City Recorder April 17, 2025 2 3 Exhibit A Salt Lake City Housing Program Funds Legislative Policy 1. GENERAL 1.1 Scope Salt Lake City Corporation (City) utilizes various funding sources to support housing and community development activities (Housing Program Funds), primarily through two different classes of programs: (1) to local organizations for the implementation of activities that support the City’s goals (Subrecipient Programs); and (2) to administer activities and programs that pass funds directly to tenants, homeowners, landlords, and property owners (Direct Delivery Programs). Direct Delivery Programs initially include the Home Repair Program, the Community Land Trust (CLT) Program, and the Naturally Occurring Affordable Housing (NOAH) Program. This policy establishes financial and reporting standards for the Housing Program Funds. In addition, this policy establishes a revolving loan fund as a self-replenishing pool of revenue to fund the Direct Delivery Programs. 1.2 Intent Housing and community development policies are outlined in various plans that have been adopted or approved by the City Council. The intent of the Housing Program Funds is to implement the goals and objectives that are outlined in various pre-adopted plans, including but not limited to the City’s moderate- income housing plan, anti-displacement plan, and the 5-year consolidated plan required by the U.S. Department of Housing and Urban Development (HUD). The uses of the funds for the Direct Delivery Programs shall be outlined in the specific program policy. 1.3 Program Administration The Housing Program Funds shall be administered by the Department of Community and Neighborhoods (CAN) and its Division of Housing Stability. 2. FINANCIAL 2.1 Revenue Housing Program Funds revenue sources shall include: A. Federal Ongoing: Revenue from federal funding sources that is allocated annually to the City for affordable housing and community development activities, including the following HUD programs: Community Development Block Grant (CDBG), Home Investment Partnership Program (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA). B. Funding Our Future (FoF): FoF sales tax dollars that are designated annually for housing programs. 4 C. Program Income: Revenue generated from the sale of property, the repayment of principal and interest, or other sources of revenue generated from an activity funded with the Housing Program Funds. To comply with the various statutory requirements for each revenue source, the City shall separately account for Program Income according to the associated source, as follows: • Restricted Program Income: Program Income generated from Federal Ongoing or other sources with federal, state, or other restrictions shall be administered according to associated requirements. For example, Program Income generated from Federal Ongoing funding sources maintains federal requirements in perpetuity and shall be recaptured and reallocated annually pursuant to federal regulations. • Unrestricted Program Income: Program Income generated from sources that do not have restrictions on the utilization of program income shall be deposited into a revolving loan fund, pursuant to Section 3: Tenant and Homeowner Loan Fund, to continue to support the implementation of the Direct Delivery Programs. D. Other Housing Program Funds: The City may designate general fund or other one-time funding from federal, state, or other sources for housing or community development purposes. 2.2 Annual Budget Allocations The City Council shall appropriate the Housing Program Funds revenue to specific Direct Delivery and Subrecipient programs through the annual budget process. The Administration shall propose funding recommendations to the City Council either through a competitive application process or through administrative budget recommendations, as follows: A. Competitive Application Process The following sources of Revenue shall fund either Subrecipient or Direct Delivery programs and shall be subject to an annual competitive application process: a. Federal Ongoing b. FoF c. Restricted Program Income d. Other Housing Program Funds (on a case-by-case basis) Applications shall be subject to a review and funding recommendation process conducted first by the Community Development and Capital Improvement Program Advisory Board (CDCIP Board), or its successor, then by the Mayor. The CDCIP Board and Mayor’s funding recommendations shall be submitted to the City Council during the budget deliberation process for the upcoming fiscal year. B. Administrative Budget Recommendations 5 The following sources of revenue shall fund Direct Delivery Programs to support their financial viability. Funding recommendations shall be submitted through the Mayor’s Recommended Budget: a. Unrestricted Program Income b. Other Housing Program Funds (on a case-by-case basis) 3. HOUSING PROGRAM FUNDS LOAN COMMITTEE Once the City Council has appropriated funding to a Direct Delivery Program, funding allocations to specific project recipients shall be determined by the respective Direct Delivery Program policy. A Housing Program Funds Loan Committee (Loan Committee) shall be established to provide recommendations or provide final approval of funding, as established by the respective Direct Delivery Program policy, and shall be comprised of five (5) members, as follows: A. Two (2) members of the CDCIP Board, or its successor B. The Director of Community and Neighborhoods, or designee C. The Director of Housing Stability, or designee D. The City’s Chief Financial Officer, or designee The Loan Committee shall be subject to the Utah Open and Public Meetings Act and shall meet on an as-needed basis. 4. TENANT AND HOMEOWNER LOAN FUND The Tenant and Homeowner Loan Fund (THLF) shall be established and maintained as a restricted account in the general fund to facilitate the revolving of Unrestricted Program Income for the implementation of the Direct Delivery Programs. The THLF shall be financially managed by the Department of Finance (Finance). There shall be deposited into the fund all revenue received by the City that does not have federal or state restrictions and that is dedicated to community development and affordable housing programs, including, but not limited to: A. Unrestricted Program Income; B. In lieu payments, mitigation fees, contributions, and other monies that may be received by the City for the purposes of tenant and homeownership housing programs; and C. Other monies appropriated by the City Council. No expenditure shall be made from the THLF without approval of the City Council. Through the annual budget, the City Council shall allocate funds from the THLF to specific Direct Delivery Programs pursuant to Section 2.2. 5. REPORTING CAN and Housing Stability shall submit a report to the City Council on an annual basis that provides an overview of budget expenditures, revenues, and associated outcomes. The report shall include a summary of property transactions, loans, grants, and populations served. To keep the identity of individuals, tenants, homeowners 6 confidential, reporting shall include the census block group of the property, household, or individual served rather than the address.