HomeMy WebLinkAbout26 of 2025 - Housing Program Policies1
RESOLUTION NO.________ OF 2025
(A Resolution to Adopt a Legislative Policy for the Salt Lake City Naturally Occurring
Affordable Housing Preservation Program)
WHEREAS, Salt Lake City Corporation (City), through the Salt Lake City Naturally
Occurring Affordable Housing (NOAH) Preservation Program, supports the goals of preserving
naturally occurring affordable housing stock and preventing displacement of current Salt Lake
City residents; and
WHEREAS, the NOAH Preservation Program provides financial assistance to property
owners of naturally occurring affordable housing to carry out property improvements in return
for a long-term covenant to preserve affordability; and
WHEREAS, adopting a legislative policy for the Salt Lake City NOAH Preservation
Program will facilitate budgetary and reporting transparency, streamline recipient application
and recommendation processes, ensure alignment with City best practices, and increase
compliance with state and federal requirements; and
WHEREAS, the City Council does now meet on this ___ day of __________, 2025 to
adopt a legislative policy for the Salt Lake City Naturally Occurring Affordable Housing
Preservation Program.
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 Naturally Occurring Affordable
Housing Preservation Program 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
ATTEST:
________________________________
City Recorder
August
19th August
26
19th
Sara Montoya, Senior City Attorney
09/02/2025
Chris Wharton (Sep 2, 2025 16:55:41 MDT)
2
Exhibit A to the Resolution
Salt Lake City NOAH Preservation Program
Legislative Policies
1. GENERAL
1.1 Mission
The Salt Lake City Corporation (City) NOAH Preservation Program (Program)
provides financial assistance to property owners (Owners) of naturally occurring
affordable housing (NOAH) to carry out property improvements in return for a
long-term covenant to preserve affordability. NOAH properties, constituting one
of Salt Lake City’s largest supply of affordable housing stock, maintain affordable
rents without public subsidy and, therefore, do not have a covenant that requires
the property to be rented at an affordable rate. The lack of covenants and
subsidies makes NOAH assets vulnerable to either redevelopment or disrepair,
both of which create instability for communities. When NOAH properties are
redeveloped due to market speculation or upgrades that result in higher rents,
existing renters are displaced, and affordable housing units are lost. To preserve
Salt Lake City’s affordable housing stock and prevent displacement, the Program
shall provide grants and low interest loans to Owners with the shared goal of
preserving affordability for the long term.
1.2 Program Administration
The Program shall be administered by the Department of Community and
Neighborhoods (CAN) and its Division of Housing Stability, including the
administration and loan servicing aspects of the Program.
2. PROGRAM FUNDING
2.1 Funding Sources
The Program shall be primarily funded from the Tenant and Homeowner Loan
Fund (THLF) pursuant to the Salt Lake City Housing Program Funds Legislative
Policy, attached hereto as Exhibit A (Funds Policy), or its successor.
2.2 Program Income
Any and all repayment of principal and interest on loans issued through the
Program, as well as other sources of revenue generated from the Program, shall be
considered Program Income. The financial management of Program Income shall
be pursuant to the Funds Policy.
2.3 Uses of Funding
Funding allocations shall be utilized to issue loans to eligible Owners.
3. ELIGIBILITY REQUIREMENTS AND PROPERTY PRIORITIZATION
3.1 Eligible Properties
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Eligible properties shall be properties located within Salt Lake City boundaries
that:
A. Currently do not have a deed restriction or covenant requiring affordable
rents; or that have a project-based affordability deed restriction or covenant
that is due to expire within three years from the date of application;
B. Include housing units that are currently being rented at a rate affordable to
households at or below 80% of the area median income (AMI) as defined by
the U.S. Department of Housing and Urban Development (HUD), hereafter
referred to as an Affordable Unit. An Affordable Unit shall have an
annualized rental rate, including cost for basic utilities, that does not exceed
thirty percent (30%) of the maximum monthly income permissible for the
applicable AMI, assuming a household size equal to the number of bedrooms
in the unit plus one (Affordable Rate); and
C. Are current and in good standing with the City on real estate taxes, water, and
sewer payments.
3.2 Eligible Owners
Eligible Owners include for-profit, non-profit, and limited equity cooperative
(LEC) organizations that are existing owners or buyers of Eligible Properties, and
that:
A. Demonstrate a gap between the funding required to improve, maintain, and/or
operate the property while maintaining Affordable Rates for the Affordable
Units and the amount of financing available from traditional sources;
B. Demonstrate property management experience; or participation in technical
assistance to ensure the successful management and operation of NOAH
properties;
B. Are tax compliant and current on all City loans related to existing projects
undertaken by the Owner and/or any related entity of the Owner;
C. Possess all necessary legal and corporate authorization to incur the obligations
of the Program financing;
D. Possess the appropriate business license, or commit to obtain the appropriate
business license, to operate rental housing within Salt Lake City; and
E. Are enrolled in Salt Lake City’s Landlord Tenant Initiative.
3.3 Eligible Activities
A. Capital expenses for emergency stabilization activities, including but not
limited to roof repair, mold remediation, building systems, building envelope,
life safety issues, or other physical needs that could impact the health and
quality of life for current residents, or compromise the building structure.
B. Capital expenses to provide necessary renovations to ensure the long-term
viability of the property with the Affordable Units. Renovations may include,
but not be limited to kitchen/bathroom upgrades, paint and flooring upgrades,
historic preservation activities, and common area improvements.
C. If in conjunction with capital expenses, operating expenses may be eligible to
address operating shortfalls and to stabilize the property.
D. Capital expenses relating to the improvement or preservation of a LEC, or
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other shared equity model, in which a self-governing group of residents
organize to form a corporation or cooperative to purchase the property.
Eligible activities include costs related to renovation/rehabilitation required to
ensure the long-term viability of the LEC.
3.4 Property Prioritization
To support low to mid-density rental housing, Program funding shall be
prioritized on a tiered system based on the number of units within the building or
parcel, with the First Tier receiving the highest priority, as follows:
• First Tier: Properties with ten (10) or fewer units
• Second Tier: Properties with nineteen (19) or fewer units
• Third Tier: Properties with twenty (20) or more units
Property prioritization shall be utilized in the recommendation process with the
Review Committee, with final funding allocations subject to the discretion of the
City Council.
4. FUNDING TERMS AND CONDITIONS
Funding awards shall be based on the following terms and conditions:
Mechanism housing authority or
other qualified
agency
the HUD Local
Payment Standard
with a housing
voucher
per Affordable Unit
and loan
per Affordable Unit
and loan
per Affordable Unit
and loan
Ratio
for the first five (5) for up to 30 years; for the first five (5) payments
5
in monthly
amortized payments
payment due at the
end of the loan term
in monthly
amortized payments
Contribution cost cost cost
5. REQUIREMENTS
A. Rent Restriction: The monthly rent for the Affordable Units, including all
required housing costs per unit, such as utilities and other charges uniformly
assessed to all apartment units other than charges for optional amenities and
services, shall be as follows:
a. Deed Restricted Units: The maximum monthly gross rental rate shall
not exceed thirty percent (30%) of the maximum monthly income
permissible for the applicable AMI, assuming a household size equal
to the number of bedrooms in the unit plus one.
b. Master Lease Units: The maximum monthly gross rental rate shall not
exceed the fair market rent (FMR) or the maximum HUD local
payment standard for the Housing Choice Voucher (HCV) program,
whichever is lower.
B. Income Restriction: The Affordable Units shall be made available only to
Eligible Households that are qualifying occupants with an annual income at or
below the AMI as applicable for the given Affordable Unit for Salt Lake City
Utah, HUD Metro FMR Area as periodically determined by HUD and
adjusted for household size. Eligible Households shall qualify upon moving
into an Affordable Unit.
C. Tenure: Affordable Units shall be provided as permanent housing as
evidenced through a lease with a minimum tenure of six (6) months.
D. Improvement, Operating, and/or Marketing Plan: Borrowers shall provide a
physical remediation plan, operating plan, and/or management strategy, as
applicable to the project.
E. Fair Housing: Borrowers shall establish an affirmative Fair Housing
Marketing Plan, including offering units to HCV and other tenant-based rental
assistance voucher holders.
F. Anti-displacement: Tenants may not be permanently displaced due to
rehabilitation activities. Borrowers must establish a tenant relocation plan if
tenants are temporarily displaced as a result of rehabilitation activities.
G. No Net Decrease in Affordable Units: Projects shall not result in a net
decrease of affordable housing units, provided however that a net decrease in
units may be approved by the City on a case-by-case basis if the net decrease
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in units is to facilitate larger unit sizes with more bedrooms or to facilitate
rental rates at lower AMI.
H. Deferred Payments: Any outstanding loan balance shall be due at the
expiration of the Affordability Term or Loan Term, whichever comes first.
6. APPROVAL PROCESS
Program funds shall first be available through a competitive notice of funding availability
(NOFA) process. For each issued NOFA, the City shall evaluate and consider
applications for approval as follows:
A. Eligibility Review: Applications shall be reviewed by staff to verify that
eligibility requirements are met.
B. Review Committee: For applications that meet the basic eligibility requirements,
applications shall be forwarded to the Housing Program Funds Loan Committee
for review and recommendation. Applications that the Housing Program Funds
Loan Committee ranks competitively shall be recommended to the City Council
for a funding allocation.
C. City Council: The City Council shall make the final selection of projects to
receive a funding allocation, subject to the necessary requirements to execute
funding agreements.
If Program funds do not get disbursed through the NOFA, the City may offer the funds
on a first-come, first-served basis, subject to a review by the Housing Program Funds
Loan Committee and approval by the City Council.
7. LOAN DEFERMENT AND MODIFICATION
In the event of economic hardship the City may provide payment deferment or a loan
modification. Such adjustment to loan terms shall be considered on a case-by-case basis
and shall be subject to a thorough review of the project's financial standing and other
relevant information. The process for providing a loan deferment or modification is as
follows:
A. Deferment: The Director of CAN may elect to provide the borrower a temporary
forbearance or deferment of payment for up to twenty-four (24) months,
consecutive or nonconsecutive. If a loan deferment is granted by the City, the loan
term shall be extended for an equivalent period.
B. Modification: If the 24-month loan deferment has been exhausted and the
borrower continues to experience an economic hardship, the borrower may apply
for a modification of loan terms to facilitate affordability of the borrower’s
monthly loan payments. The Housing Program Funds Loan Committee shall
review such requests and provide a recommendation that is forwarded to the City
Council, who shall consider and act upon all such requests.
8. REPORTING
Staff shall submit a report on the Program to the City Council on an annual basis. The
report shall include outcomes associated with the Program, including a summary of
projects completed including a summary of units and affordability levels, number of new
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grants and loans, total outstanding balance of the loan portfolio, and number of
delinquencies.
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Exhibit A to the Salt Lake City NOAH Preservation Program Legislative Policies
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.
C. Program Income: Revenue generated from the sale of property, the repayment
of principal and interest, or other sources of revenue generated from an
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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
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
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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
confidential, reporting shall include the census block group of the property, household, or
individual served rather than the address.
Resolution 26 of 2025 - Legislative Policy for the
NOAH Preservation Program
Final Audit Report 2025-09-02
Created:2025-08-27
By:Thais Stewart (thais.stewart@slc.gov)
Status:Signed
Transaction ID:CBJCHBCAABAA_0xle6zijR9krwMiTtSZmq-gJyjwbiJ1
"Resolution 26 of 2025 - Legislative Policy for the NOAH Preserv
ation Program" History
Document created by Thais Stewart (thais.stewart@slc.gov)
2025-08-27 - 11:41:01 PM GMT
Document emailed to Sara Montoya (sara.montoya@slc.gov) for signature
2025-08-27 - 11:42:50 PM GMT
Email viewed by Sara Montoya (sara.montoya@slc.gov)
2025-08-28 - 4:17:52 AM GMT
Email viewed by Sara Montoya (sara.montoya@slc.gov)
2025-09-02 - 4:34:42 PM GMT
Document e-signed by Sara Montoya (sara.montoya@slc.gov)
Signature Date: 2025-09-02 - 10:49:51 PM GMT - Time Source: server
Document emailed to Chris Wharton (chris.wharton@slc.gov) for signature
2025-09-02 - 10:49:53 PM GMT
Email viewed by Chris Wharton (chris.wharton@slc.gov)
2025-09-02 - 10:55:29 PM GMT
Document e-signed by Chris Wharton (chris.wharton@slc.gov)
Signature Date: 2025-09-02 - 10:55:41 PM GMT - Time Source: server
Document emailed to Keith Reynolds (Keith.Reynolds@slc.gov) for signature
2025-09-02 - 10:55:43 PM GMT
Email viewed by Keith Reynolds (Keith.Reynolds@slc.gov)
2025-09-02 - 11:02:30 PM GMT
Document e-signed by Keith Reynolds (Keith.Reynolds@slc.gov)
Signature Date: 2025-09-02 - 11:02:51 PM GMT - Time Source: server
Agreement completed.
2025-09-02 - 11:02:51 PM GMT