HomeMy WebLinkAbout25 of 2025 - Housing Program Policies1
RESOLUTION NO.________ OF 2025
(A Resolution to Adopt Legislative Policies for the Salt Lake City
Community Land Trust Program)
WHEREAS, Salt Lake City Corporation (City), through the Community Land Trust
program, supports the goals of helping provide affordable homeownership opportunities to low-
to moderate-income households; and
WHEREAS, adopting legislative policies for the Salt Lake City Community Land Trust
Program will facilitate budgetary and reporting transparency, streamline recipient application
and recommendation processes, align 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
legislative policies for the Salt Lake City Community Land Trust program.
NOW, THEREFORE, be it resolved that the City Council of Salt Lake City, Utah, that the Salt
Lake City Council hereby adopts the attached legislative policies for the Salt Lake City
Community Land Trust 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 Allison Parks, Deputy City Attorney
August 19
August 19
25
09/03/2025
Chris Wharton (Sep 4, 2025 12:08:34 MDT)
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Exhibit A to the Resolution
Salt Lake City Community Land Trust Program
Legislative Policies
1. GENERAL
1.1 Mission
The Salt Lake City Corporation (City) Community Land Trust (CLT Program)
facilitates homeownership opportunities for low- and moderate-income (LMI)
households and to maintain the units as affordable over the long-term. To promote
wealth building, equity is shared between the City and the homeowner upon the
sale of the home to a third party. The City designates property as part of the land
trust model, retaining ownership of the land (Land) and selling only the housing
structure (Housing Unit) to a qualified homebuyer (Homebuyer or Homeowner).
To facilitate affordability for the Homebuyer, the City leases the Land to the
Homebuyer through a below-market rate lease (Ground Lease) and may provide
mortgage financing for the purchase of the Housing Unit (Homebuyer Loan).
1.2 Policy Objectives
The CLT Program shall promote:
A. Affordable homeownership as a way for LMI households to build wealth and
achieve financial stability through equity sharing.
B. Affordable homeownership as a way to reject historical policies that precluded
minorities and others from purchasing a home and widened the racial and
minority wealth gap.
C. Affordable homeownership in areas of opportunity as a platform for a range of
positive life outcomes, including those related to health and education.
D. Affordable homeownership opportunities to combat displacement in
neighborhoods faced with gentrification.
1.3 Program Administration
The CLT Program shall be administered by the Department of Community and
Neighborhoods (CAN) and its Division of Housing Stability, including
management of rehabilitation activities, and loan servicing aspects of the CLT
Program.
1.4 Scope of Services
Homebuyer Loans issued by the City are exclusively available to Homebuyers
participating in the CLT Program; however, a Homebuyer participating in the
CLT Program is not required to utilize Homebuyer Loan mortgage financing
issued by the City and may use another source of financing subject to approval by
the City.
1.5 Program Inventory
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The CLT Program’s inventory shall include residential properties located within
Salt Lake City boundaries that have been acquired by the City and designated as
part of the CLT Program. Once a property is designated as part of the CLT
Program, it shall remain in the CLT Program in perpetuity unless the property is
deemed to no longer serve the mission of the CLT Program or is needed for a
different public purpose. In instances where a property shall be removed from the
inventory and disposed of, the property shall be disposed of pursuant to City Code
2.58: City Owned Real Property or its successor, but with the sales proceeds
designated as program income pursuant to this policy. Properties may be acquired
for the CLT Program, utilizing funds designated by the City Council for such
purposes, through the following ways:
A. The City may purchase properties on the open market.
B. The City may purchase properties where, as part of a mortgage or loan issued
by the City, there is a contractual clause that gives the City the first
opportunity to buy the property.
C. The City or its Community Reinvestment Agency may build Housing Units or
partner with development partners to build Housing Units on surplus or other
City-owned property.
D. The City may purchase property from homeowners who want to place their
home into the CLT Program or who agree to undertake a sale-leaseback
agreement. Under a sale-leaseback agreement, a property owner would sell the
land underneath their house to the City and continue living in the Housing
Unit under a long-term Ground Lease. This would provide property owners,
such as seniors living on a fixed income, with revenue from the land sale
while also adding to the CLT Program’s inventory.
E. The City may acquire property for the CLT Program through other methods,
such as donations or land swaps, provided that the acquisition follows any
applicable process set forth in ordinance or law.
2. PROGRAM FUNDING
2.1 Funding Sources
The CLT 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 CLT
Program, revenue generated from the sale of property, and any other sources of
revenue generated from the CLT Program, shall be considered Program Income.
The financial management of Program Income shall be pursuant to the Salt Lake
City Housing Funds Policy.
2.3 Uses of Funding
Funding allocations shall be utilized for the following activities:
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A. The repurchase of Housing Units.
B. The rehabilitation of Housing Units to prepare the home for resale.
C. Mortgage financing to Homebuyers of Housing Units.
D. The acquisition or development of property to add new Housing Units to the
CLT Program’s inventory.
3. ELIGIBILITY, PRIORITIZATION, AND APPROVAL PROCESS
3.1 Eligibility Requirements:
To be eligible to participate in the CLT Program, an applicant shall meet the
following threshold requirements:
A. Maximum Income: A household shall have an annual income which does not
exceed 80% of the area median income (AMI) of households of equal size
residing in the Salt Lake statistical areas as defined by the U.S. Department of
Housing and Urban Development (HUD).
B. Creditworthiness: A household shall demonstrate a history of meeting their
financial obligations, as determined by the homeowner’s credit report.
C. Debt Capacity: A household’s debt to income (DTI) percentage, including all
revolving debt inclusive of the prospective mortgage financing, shall not
exceed 45% of the gross monthly income or the maximum amount allowed
under HUD’s First Time Homebuyer Program.
D. Tenure Status: Applicants shall be a first-time homebuyer or have not owned a
home in the past five (5) years, or a single parent or individual who has only
owned a home with a former spouse or partner while married or in a domestic
partnership.
3.2 Application Prioritization and Housing Unit Selection:
Applicants that successfully meet the Eligibility Requirements set forth in section
3.1 (Pre-Approved Applicants) will be placed on a waitlist that is administered on
a first-come, first-served basis; provided, however, that Pre-Approved Applicants
that meet one or more of the following criteria will be escalated on the waitlist
higher than Pre-Approved Applicants that do not meet these criteria:
A. Households that currently reside in Salt Lake City municipal boundaries and
have done so for twelve (12) consecutive months or longer.
B. Households that have previously lived in Salt Lake City for a minimum of
five (5) consecutive years, and that were displaced within the preceding five
5) years due to rising housing costs or redevelopment of property.
Once a Housing Unit becomes available, CAN staff will offer it to the first
prioritized Pre-Approved Applicant. The applicant may select to move forward
with purchasing the Housing Unit or may decline to move forward with that
particular Housing Unit. If a Pre-Approved Applicant passes on a Housing Unit,
the Housing Unit will be offered to the next prioritized applicant on the waitlist. A
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Pre-Approved Applicant may pass on a Housing Unit and remain in the same
position on the waitlist. Applicants shall demonstrate that they meet eligibility
requirements at the time of application and at the time of closing.
3.3 Mortgage Financing Approval Process:
Once a Pre-Approved Applicant is matched with a Housing Unit, the Pre-
Approved Applicant shall obtain mortgage financing in one of two ways, as
follows:
A. If the Pre-Approved Applicant is obtaining independent mortgage financing,
the applicant shall provide the City with evidence of the third-party financing
amount and terms and the third-party lender’s acknowledgement of
participation in the CLT Program; or
B. If the Pre-Approved Applicant is obtaining a Homebuyer Loan through the
City, staff shall underwrite the loan pursuant to the standards established in
Section 4: Homebuyer Loans – Terms and Conditions.
The Housing Program Funds Loan Committee shall review and has the authority
to approve the Pre-Approved Applicants acquisition of the Housing Unit and, if
applicable, the terms of the Homebuyer Loan to be issued by the City within the
standards set forth in this policy.
4. HOMEBUYER LOANS - TERMS AND CONDITIONS
If the Homebuyer elects to obtain a Homebuyer Loan issued by the City, the loan shall be
underwritten and issued pursuant to the following terms and conditions:
A. Maximum Loan Amount: Up to 100% of the purchase price of the Housing
Unit as determined by Section 5.
B. Debt to Income Maximum: The DTI maximum is the limit established in
Section 3: Eligibility Requirements.
C. Interest Rate: The interest rate shall be 3%, provided however that a
household’s debt to income (DTI) percentage, including all debt inclusive of
the prospective loan, is below the DTI maximum established in Section 3:
Eligibility Requirements. If a household’s DTI percentage is above the
threshold, the interest rate may be reduced to meet the threshold. Interest rates
shall at no time be below 1%.
D. Term: The term of the loan shall be up to 30 years.
E. Payments: Payments shall be collected monthly. Late payments are subject to
a 4% late fee.
F. Security: A Deed of Trust will be recorded on the property.
5. COMMUNITY LAND TRUST
5.1 Pricing Overview:
The resale price of Housing Units and equity sharing terms are intended to
balance permanent affordability with equity-building opportunities for the
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Homeowner. If a Homeowner elects to sell their Housing Unit, the Homeowner
shall receive the equity they paid on their mortgage, plus a limited amount of
equity from Housing Unit’s appreciation in value. The following components
shall be considered:
A. Base Price: The Base Price shall be the original purchase price of the Housing
Unit by the Homeowner, including the sum of the Homeowner’s down
payment and the amount mortgaged.
B. Earned Equity: The equity attributed to the Homeowner’s down payment and
principal paid on the mortgage.
C. Equity Appreciation: The equity attributed to the appreciation of the Housing
Unit’s value after its purchase by the Homeowner.
5.2 Resale Price and Equity Determination:
When a Homeowner decides to sell, the Resale Price and corresponding
Homeowner equity determination shall be the lower of the following two options:
A. Option 1 – Appreciation Formula:
Resale Price: The Base Price plus 1.75% of the Base Price, not
compounding, for each year the Homeowner has owned the Housing Unit.
Formula: (Base Price) + (1.75% x Base Price x years of ownership)
Homeowner Equity Determination: Earned Equity plus Equity
Appreciation capped at 1.75% of the Base Price for each year of
ownership, not compounding. Formula: (Earned Equity) + (Base Price x
1.75% x years of ownership)
B. Option 2 - Appraised Value:
Resale Price: If the City believes the Appreciation Formula output is too
high for market conditions, the City may, at its expense, commission a
market valuation of the Housing Unit to determine an Appraised Value.
Homeowner Equity Determination: The Appraised Value less any
outstanding mortgage debt. Formula: Appraised Value – current
outstanding mortgage debt
For Housing Units newly added to the program inventory or Housing
Units within the existing inventory that appraise lower than the previously
calculated Appreciation Formula, the City may set the current Resale Price
at the Appraised Value of the Housing Unit as determined by an appraisal,
considering the Housing Unit only and not the value of the land.
5.3 Ground Lease Terms, Fees, Renewal Option
A. Occupancy Requirement: Homebuyers shall maintain the housing unit as a
primary residence continuously over the term of the Ground Lease.
B. Initial Ground Lease Term: Ninety-nine (99) years.
C. Ground Lease Renewal Term: Homeowner shall have the option to extend the
terms of the Ground Lease for ninety-nine (99) years.
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D. Ground Lease Expiration or Termination: Upon expiration or early
termination of a Ground Lease, ownership of the Housing Unit shall revert to
the City, provided that the City shall pay the Homeowner, or the
Homeowner’s heirs upon death, pursuant to Section 5.2: Resale Price and
Equity Determination. The City may elect to not purchase the Housing Unit
from the Homeowner and, in such instance, the Land may be disposed of
pursuant to applicable law.
E. Transfer: Homeowner may transfer the Ground Lease to income qualified
households upon approval by the City, including under the following
conditions:
a. A transfer to a new Homebuyer due to a sale of the Housing Unit if the
City does not exercise its Option to Purchase, as outlined in Section
5.4. The sale shall comply with Section 5.2: Resale Price and Equity
Determination and be approved by the City.
b. A transfer, as approved by the City, to certain heirs upon death of the
Homeowner. Eligible heirs shall include a spouse, designated guardian
of the Homeowner’s child under the age of 18, or a person living in the
household for at least one year prior to Homeowner’s death. The
eligibility of a Ground Lease transfer shall be analyzed and approved
on a case-by-case basis.
F. Ground Lease Fee: $50 per month. The Ground Lease Fee may increase from
time to time but may not be increased more than 3% year-over-year.
G. Common Area Maintenance (CAM) Fee: For multifamily units, a CAM fee
may be assessed that equates to the prorated cost of expenses relating to the
maintenance of common areas.
H. Maintenance and Repairs: The Homeowner is responsible for repairs and
maintenance for both the land and improvements unless otherwise covered by
a CAM Fee.
I. Repair and Replacement Reserve: A modest fee may be collected on a
monthly or annual basis and held by the City in a Repair and Replacement
Reserve account to be accessed by the Homeowner for repairs and
replacement of structural and mechanical systems as approved by the City.
Upon resale of a Housing Unit or termination of a Ground Lease, funds
accumulated in the Homeowner’s Repair and Replacement Reserve shall be
used by the City to fund improvements for Housing Units in the CLT
Program’s inventory.
5.4 Option to Purchase Terms
In the event that the Homeowner elects to sell the Housing Unit during the
Ground Lease term, the Homeowner shall notify the City, and the City shall have
the option to purchase the Housing Unit pursuant to Section 5.2: Resale Price and
Equity Determination. If the City declines or the purchase option expires, the
Homeowner has the right to sell the Housing Unit in coordination with the City
and pursuant to the terms contained herein. Any sale or transfer of a Housing Unit
is subject to either an assignment of an existing Ground Lease, with approval by
the City, or the execution of a new Ground Lease with the City.
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5.5 Property Taxes
Homeowners are responsible for paying property taxes on the Housing Unit, as
assessed by Salt Lake County or other local taxing districts. If the Housing Unit is
financed with a mortgage obtained through the CLT Program, the City may hold
an escrow account to collect and pay property taxes and insurance on behalf of the
Homeowner. If the Homeowner does not have mortgage financing with the City,
the Homeowner shall be responsible for paying property taxes directly to Salt
Lake County.
6. DEFERMENT, MODIFICATION, AND DEFAULT
6.1 Temporary Payment Modification or Deferment of Homebuyer Loan
If a Homeowner is experiencing an economic hardship, the Homeowner may
apply for a modification of payments or a full or partial deferment of payments to
the City. To receive a payment modification or deferment, the Homeowner shall
demonstrate that its household’s DTI percentage exceeds 45% considering all
revolving debt including the CLT Program payments. The portion of monthly
payment amount to be modified or deferred shall be based on the 45% DTI
threshold. Requests for modifications or deferment shall be evidenced by a
financial analysis of the household’s income and debt obligations. Modifications
or deferments may be approved by the Housing Program Funds Loan Committee
for up to 12 months and may be reauthorized on an annual basis for up to thirty-
six (36) months, consecutive or nonconsecutive, during the term of the loan. If a
loan deferment is granted, the loan shall be extended for an equivalent period of
time.
6.2 Modification of a Homebuyer Loan
If the ability to defer has been exhausted, a Homeowner may request a permanent
modification to a Mortgage Loan issued by the City. The modification may
include adjustment of the term and/or interest rate to make the loan payments
more affordable. Modifications shall be reviewed by the Housing Program Funds
Loan Committee and unanimously approved by the Director of Housing Stability,
Director of CAN, and Chief Financial Officer or designee.
6.3 Default
If a Homeowner defaults on a Homebuyer Loan and/or Ground Lease and does
not remedy the default, the City may terminate the Ground Lease and repurchase
the Housing Unit subject to Section 5.2: Resale Price and Equity Determination.
7. REPORTING
CAN shall submit a report on the CLT Program to the City Council on an annual basis. The
report shall include outcomes associated with the Program including an overview of the
inventory of Housing Units, purchase and sale transactions, and budget expenditures and
revenue. To keep the identity of Homeowners confidential, reporting shall include the census
block group of the Housing Unit rather than the address.
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Exhibit A to the Salt Lake City Community Land Trust 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 25 of 2025 - Legislative Policy for the
Community Land Trust Program
Final Audit Report 2025-09-04
Created:2025-09-03
By:Thais Stewart (thais.stewart@slc.gov)
Status:Signed
Transaction ID:CBJCHBCAABAA207kF5QYrc7SKIwroDak8IbHuv2Ud400
"Resolution 25 of 2025 - Legislative Policy for the Community La
nd Trust Program" History
Document created by Thais Stewart (thais.stewart@slc.gov)
2025-09-03 - 11:38:39 PM GMT
Document emailed to Allison Parks (allison.parks@slc.gov) for signature
2025-09-03 - 11:42:01 PM GMT
Email viewed by Allison Parks (allison.parks@slc.gov)
2025-09-04 - 4:34:30 AM GMT
Document e-signed by Allison Parks (allison.parks@slc.gov)
Signature Date: 2025-09-04 - 4:34:43 AM GMT - Time Source: server
Document emailed to Chris Wharton (chris.wharton@slc.gov) for signature
2025-09-04 - 4:34:47 AM GMT
Email viewed by Chris Wharton (chris.wharton@slc.gov)
2025-09-04 - 5:39:00 AM GMT
Document e-signed by Chris Wharton (chris.wharton@slc.gov)
Signature Date: 2025-09-04 - 6:08:34 PM GMT - Time Source: server
Document emailed to Keith Reynolds (Keith.Reynolds@slc.gov) for signature
2025-09-04 - 6:08:38 PM GMT
Email viewed by Keith Reynolds (Keith.Reynolds@slc.gov)
2025-09-04 - 7:53:54 PM GMT
Document e-signed by Keith Reynolds (Keith.Reynolds@slc.gov)
Signature Date: 2025-09-04 - 7:54:37 PM GMT - Time Source: server
Agreement completed.
2025-09-04 - 7:54:37 PM GMT