HomeMy WebLinkAbout14 of 2025 - Creation of the Disaster Relief Loan Program - DRLPSALT LAKE CITY COMMUNITY REINVESTMENT AGENCY
RESOLUTION NO.
Disaster Relief Loan Program Policy
RESOLUTION OF THE BOARD OF DIRECTORS OF THE SALT LAKE CITY COMMUNITY
REINVESTMENT AGENCY ADOPTING THE DISASTER RELEIF LOAN PROGRAM POLICY
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,
Utah Code Title 17C; and
WHEREAS, the Utah Community Reinvestment Agency Act grants the CRA powers to use funds to
provide for project area development within project area boundaries; and
WHEREAS, the CRA Board now supports the goal of providing immediate financial assistance to
targeted business and property owners within CRA project areas that have suffered significant
damage or destruction due to fire, flooding, earthquakes or storms.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY, that Board hereby adopts the
following policy for a Disaster Relief Loan Program:
1. PURPOSE & INTENT
The Disaster Relief Loan Program (DRLP) provides immediate financial assistance to targeted
business and property owners that have suffered significant damage or destruction due to fire,
flooding, earthquakes, or storms (Qualifying Events).
2. PROGRAM ADMINISTRATION
Administration of the DRLP shall be guided by this policy and corresponding administrative
guidelines. Funding may be offered on an ongoing basis or periodically in response to specific
disasters, subject to the availability of funds.
3. THRESHOLD REQUIREMENTS
To be eligible for funding through the DRLP, projects must meet the following threshold
requirements, in addition to further requirements that may be set forth in the DRLP
administrative guidelines.
a. Eligible Project Types
Project must have sustained direct and verifiable damage or destruction within one (1) year
from the Qualifying Event, as documented by official fire or police department reports,
insurance claims, and/or on-site inspections by a licensed inspection agent.
b. Eligible Costs
Funds are intended to provide gap financing to help Owners with reconstruction expenses or
hard costs for mitigation and/or repair of disaster-incurred damage including, but not limited
to:
14 of 2025
Demolition
Debris removal and site cleanup
Security measures for the damaged property during reconstruction
Architectural and engineering fees for reconstruction planning
Reconstruction of damaged buildings and other site improvements
Other qualified uses related to disaster recovery
Funds may not be used for personal expenses, refinancing of existing debt, acquisition, or
capital improvements not directly related to damage suffered. Project-related soft costs, or
tenant-specific improvements will be considered on a case-by-case basis.
c. Eligible Applicants
Eligible Applicants must be the existing property owner or long-term lessee of the property,
which may be an individual or an existing legally registered business that was in good
standing with all local, state, and federal regulations prior to sustaining damage (collectively,
Owners). Owners must provide sufficient evidence of their financial capabilities to
successfully complete the project, and their credit history must demonstrate prompt payment
of past obligations. Owners and affiliated entities must be in good standing on all existing
contracts administered by the CRA, Salt Lake City Corporation, Salt Lake County, and the
State of Utah. Owners must have an active and applicable insurance policy and be in the
process of filing a claim for disaster-related damages. The CRA may require a copy of the
insurance claim filing and contact information for the insurance adjuster. Evidence
demonstrating compliance with any eligibility requirements may be requested by the CRA.
d. Project Area Requirements
The property must be located within an eligible CRA Project Area.
e. Timeliness
Time is of the essence in administration of the DRLP and use of funds. The intent of the
DRLP is to provide funds to facilitate immediate reconstruction efforts and support projects
with an expedited timeframe for completion.
4. LOAN AMOUNT, TERM, & INTEREST RATE
a. Loan Amount
The applicant must provide sufficient evidence that the amount of funds requested from the
CRA is necessary for the project to succeed.
i. Maximum Loan Amount
All loans shall have a maximum loan amount of one million dollars ($1,000,000).
ii. Gap Financing
Loan maximums are limited to the demonstrated gap in available funds to cover
anticipated project costs. The final loan amount will be determined based on the
project need, available insurance coverage, scope of immediate expenses, and
enhanced construction costs related to building code requirements, or preservation of
building facades or structure. The CRA reserves the right to adjust the maximum
amount based on the total number of applications and available program funding.
b. Term & Amortization
The loan term and amortization schedule shall be determined as follows:
i. Term
The loan term shall be up to three (3) years, commencing upon initial disbursement of
funds. An option to extend the overall loan term to five (5) years may be available
through a preauthorized extension that provides an interest rate of five percent (5%)
beginning in year four (4).
ii. Amortization
The standard amortization period is up to ten (10) years with balloon payment due at
loan maturity.
c. Interest Rate
The interest rate shall be determined as follows:
i. Interest Rate
The initial interest rate of zero percent (0%) will be applied for the first twenty-four
24) months of the loan term. After the initial 24-month period, an interest rate of
two percent (2%) will be applied to the remaining balance. Any extension of the loan
beyond the standard 3-year term shall carry a five percent (5%) interest rate. Interest
shall begin to accrue following the initial 24-month period. In the event of a default,
the interest rate will increase to fourteen percent (14%) on the unpaid sum.
5. COLLATERAL AND GUARANTEES
Adequate security shall be required, generally in the form of a deed of trust, personal guarantees,
UCC filings for business assets, vehicle titles, personal property and assets, and/or other
acceptable forms of collateral as established by the DRLP administrative guidelines.
6. EVALUATION & APPROVAL PROCESS
a. Application Process
The process for distributing and collecting loan applications and supporting documentation
shall be established by the DRLP administrative guidelines.
b. Underwriting and review by CRA Staff
CRA staff shall carry out an underwriting process according to the DRLP administrative
guidelines and shall ensure the proposed loan is consistent with any applicable laws or
regulations. Once the threshold requirements have been met, CRA staff will further review
the application and supplemental materials to determine if the project shall be recommended
for conditional loan approval. If either the applicant or proposed project fails to demonstrate
the ability to meet underwriting requirements, or such loan conflicts with any laws or
regulations, CRA staff shall reserve the right to deny the loan application.
c. Conditional Approval Process
All applications and requests for adjustments from the standard loan terms, except for those
authorized modifications provided in Section 9 herein, shall be reviewed by the CRA Board
for conditional loan approval.
d. Loan Finalization
Once an applicant receives conditional loan approval, CRA staff shall finalize the loan
according to the DRLP administrative guidelines.
e. Fees
Applicable application and legal fees, as well as closing costs, as outlined in the DRLP
administrative guidelines, shall be borne by the Borrower.
7. LOAN DISBURSEMENT & REPAYMENT
a. Disbursement of Funds
Funding shall be disbursed in the form of draws evidenced by supporting documentation of
the related expenses and/or demonstration that the work has been completed.
b. Repayment
No payments will be due for the first twenty-four (24) months of the loan. Monthly
payments will be due and payable within thirty (30) days of the Owner receiving its final
insurance settlement proceeds related to the damage, the start of lease payments by a tenant,
or issuance of a Certificate of Occupancy, whichever is soonest (Repayment Trigger).
Evidence demonstrating compliance with the associated Repayment Trigger may be
requested by the CRA. Loans may be prepaid in whole or in part at any time without penalty.
8. MONITORING & COMPLIANCE
Reporting requirements, as determined by CRA staff, may be put in place to ensure that projects
are in compliance with obligations associated with DRLP threshold requirements and loan terms,
which will be memorialized in loan agreements, restrictive use agreements, or other form of
agreement that is executed at closing. Obligations may extend beyond the approved loan term.
9. LOAN MODIFICATIONS
In the event of extenuating circumstances or financial hardship of the Owner, the CRA may
provide payment forbearance, payment deferment, an adjustment to terms, or loan forgiveness.
Such adjustments 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 loan modifications shall be considered and authorized as follows:
a. Forbearance/Deferment
The Director of the CRA may elect to provide the Borrower with a temporary forbearance or
deferment of payment for up to one (1) year. For periods of forbearance or deferment longer
than one (1) year, the CRA Finance Committee shall provide a recommendation that is
forwarded to the Board, who shall consider and act upon all such requests.
b. Adjustment to Terms
The Director of the CRA may elect to authorize an extension of the repayment term by an
additional two (2) years (beyond the term that was initially approved), and/or re-amortization
up to twenty (20) years.
c. Loan Forgiveness
The CRA Finance Committee shall provide a recommendation that is forwarded to the Board,
who shall consider and act upon all such requests.
10. EXCEPTIONS
The CRA Board of Directors, by a majority vote of those present, may waive or make exceptions
to the foregoing requirements with a finding that the intent of the DRLP will be furthered by such
waiver or exception.
Passed by the Board of Directors of the Salt Lake City Community Reinvestment Agency, this
day of August 2025.
Darin Mano, Chair
Approved as to form: __/s/ Jennifer Huntsman____
Salt Lake City Attorney’s Office
Jennifer Huntsman
Date:____________________________
The Executive Director:
does not request reconsideration
requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Attest:
City Recorder
14th October
Jennifer Huntsman (Oct 16, 2025 15:45:28 MDT)
Jennifer Huntsman
10/16/2025
Darin Mano (Oct 17, 2025 11:24:32 MDT)
Darin Mano
Erin Mendenhall (Oct 21, 2025 13:45:06 MDT)
4
*Adopted October 14, 2025* CRA Resolution 14
of 2025 - Disaster Relief Loan Program Policy
Final Audit Report 2025-10-21
Created:2025-10-16
By:DeeDee Robinson (deedee.robinson@slc.gov)
Status:Signed
Transaction ID:CBJCHBCAABAAKTQYbB31mOCiaKnjxl_orT3ZHP_kbzuO
"*Adopted October 14, 2025* CRA Resolution 14 of 2025 - Disa
ster Relief Loan Program Policy" History
Document created by DeeDee Robinson (deedee.robinson@slc.gov)
2025-10-16 - 9:00:15 PM GMT
Document emailed to jennifer.huntsman@slc.gov for signature
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Signer jennifer.huntsman@slc.gov entered name at signing as Jennifer Huntsman
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Document e-signed by Darin Mano (darin.mano@slc.gov)
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Agreement completed.
2025-10-21 - 8:22:59 PM GMT