HomeMy WebLinkAboutProposed Resolution - 6/23/2025
SALT LAKE CITY CORPORATION
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SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY
RESOLUTION NO. _______________
Amending the Sunrise Metro Acquisition Loan to Forgive Accrued Interest to Facilitate the
Preservation and Redevelopment of Permanent Supportive Housing
RESOLUTION OF THE BOARD OF DIRECTORS OF THE SALT LAKE CITY
COMMUNITY REINVESTMENT AGENCY FORGIVING ACCRUED INTEREST
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, including the development of affordable housing.
WHEREAS, Housing Assistance Management Enterprise (HAME) is a nonprofit
organization dedicated to managing and developing affordable housing properties that serve
individuals experiencing near-homelessness and further strives to develop safe facilities and
expand solutions to provide permanent supportive housing in Salt Lake City.
WHEREAS, Sunrise Metro is operated by HAME and currently provides 100 permanent
supportive housing units.
WHEREAS, on March 10, 2005, the CRA’s Board of Directors (then known as the
Redevelopment Agency of Salt Lake City (RDA) Board of Directors) (Board) approved
Resolution No. 597.06, setting aside $700,000 in RDA funds to be distributed by the RDA to
HAME as a 2-year loan at a 3% interest rate, to be repaid by May 1, 2008.
WHEREAS, in December 2005 HAME requested a 20-Year (240 month) loan extension
to the original 2-year short term acquisition loan, due to revenue constraints in meeting the original
debt service.
WHEREAS, on February 16, 2006 the Board (then known as the RDA Board) adopted
Resolution 609.03, approving the 20-Year loan extension with the same 3% interest rate and a new
maturity date of June 2026.
WHEREAS, in June 2025, HAME requested that CRA forgive the accrued interest on the
loan.
WHEREAS, as of June 20, 2025, the accrued interest on the loan is approximately
$314,468.20, and will continue to accrue at a per diem rate of $57.53 until the date of repayment
in full of the outstanding principal balance.
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WHEREAS, granting interest forgiveness would allow HAME to repay in full the
$700,000 outstanding principal amount, while allowing HAME to proceed with the new remodel
and additional units.
WHEREAS, CRA staff recommends that the Board approve HAME’s interest forgiveness
request and recoup the principal loan amount of $700,000 to redeploy the funds for other affordable
housing or homeownership opportunities within Salt Lake City.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Salt Lake
City Community Reinvestment Agency that it approves forgiveness of all interest accrued by the
Sunrise Metro Acquisition Loan as of the date of repayment in full of the outstanding principal
balance, subject to revisions that do not materially affect the rights and obligations of the CRA
hereunder. The Board authorizes the Director to negotiate and execute any other relevant
documents consistent with this resolution.
Passed by the Board of Directors of the Salt Lake City Community Reinvestment Agency,
this ____ day of July 8, 2025.
_________________________________
Darin Mano, 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
June 20, 2025
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