HomeMy WebLinkAboutCouncil Provided Information - 7/8/2025CRA BOARD MEETING – JULY 8, 2025
SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY
SUNRISE METRO LOAN AMENDMENT
SUNRISE METRO OVERVIEW
SUNRISE METRO
•Operated by Housing Assistance Management Enterprise
(HAME), development entity of the Housing Authority of Salt
Lake City
•100-unit permanent supportive housing project
•Units targeted at 35% AMI or less
•Current 20-year cash flow loan with CRA matures May 2026,
CRA entitled to 36% of any surplus cash flow. No payments
received to date
•Requesting forgiveness of the accrued interest upon
repayment of full principal when financing for redevelopment
of site begins
PRIOR BOARD ACTION
•March 10, 2004: Approval of $700,000 2-year construction
loan at 3% via Resolution 597.06.
•February 16, 2006: Approval of the requested 20-year cash
flow loan at 3% and associated term sheet via Resolution
609.03.
LOCATION: 580 S 500 W
SUNRISE METRO OVERVIEW
PROPOSED REDEVELOPMENT PROJECT
•Phase I: Remodel the existing 100 units and add an
additional 18 units to the existing structure;
•Phase II: Construct 100 new units in a new 6-story
structure on site;
•Enhance communal space and case management
offices;
•Future on-site pharmacy and medical clinic planned;
•All units targeted at 35% AMI or less and will accept VA
and HUD vouchers.
LOCATION: 580 S 500 W
SUNRISE METRO DRAWINGS
SUNRISE METRO DRAWINGS
REQUEST: RECEIVE INTEREST FORGIVENESS UPON
REPAYMENT OF PRINCIPAL
•Sunrise Metro/HAME is requesting accrued interest forgiveness
upon repayment of the principal balance from the CRA and SLCO
to assist in the redevelopment project financing.
•HAME is contributing a $9M soft loan to help pencil the project.
•HAME has negotiated a 0% interest rate with OWHLF for a small
amount of debt.
•HAME has made efforts to reduce the debt burden in their new
project.
SUNRISE METRO LOAN AMENDMENT REQUEST
RECOMMENDATION: GRANT INTEREST FORGIVENESS
•CRA forgiveness grants quick repayment as early as August 2025
and avoids the originally requested 40-year extension and
uncertain cash flow repayments.
•CRA can redeploy funds in future affordable housing projects.
•Interest forgiveness assists in the construction of highly needed
deeply affordable units that serve vulnerable populations.
Original Loan Amount $700,000
Accrued Interest as of
July 8, 2025 $315,503.81
Total Amount Owed $1,015,503.81
Interest Forgiveness
Requested ($315,503.81)
Net Amount to CRA $700,000
Questions?