HomeMy WebLinkAboutCouncil Provided Information - 12/2/2025CITY COUNCIL OF SALT LAKE CITY
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COUNCIL STAFF REPORT
CITY COUNCIL of SALT LAKE CITY
www.slc.gov/council/
TO:City Council Members
FROM: Michael Sanders
Budget & Policy Analyst
DATE:December 02, 2025
RE:PUBLIC BENEFITS ANALYSIS – VALLEY BEHAVIORAL HEALTH
ISSUE AT-A-GLANCE
The Administration is proposing a resolution to authorize the release of Salt Lake City’s reversionary interest in
Valley Behavioral Health’s property located at 107 South 800 West, Salt Lake City. The project site is half an acre
in size, is zoned TSA-UN-T, and is located approximately 0.4 miles from a TRAX station.
The proposal includes the city releasing the reversionary interest in the property currently valued at
approximately $2.4 Million. This would allow the property to be redeveloped from an eight unit building to a
68-unit permanent supportive housing project. Additionally, the proposal includes adopting a new restrictive
use agreement with Saltair Lofts LLC and adopts and incorporates the findings of the public benefits analysis.
Goal of the briefing: Prepare to consider the resolution at the December 9th Formal Meeting. A public
hearing is required for this item and is scheduled for December 9th.
POLICY QUESTIONS
1. The Council may wish to ask for additional clarification on what recourse the City has if the restrictive
use agreement is violated.
2. The Council may wish to ask the Administration what housing and supportive resources will be provided
to current residents during redevelopment.
3. The Council may wish to discuss whether a 50-year guarantee is a long enough or if they would like to
contemplate a longer period.
ADDITIONAL & BACKGROUND INFORMATION
The property was previously owned by the City and was conveyed to Valley Behavioral Health in 1992 through a
quit claim deed with a revisionary interest which required Valley to pay to the City the appraised value of the
property in the event Valley failed to continue the operation of permanent housing for unsheltered people with
handicaps or Valley sold the property with the City’s approval.
To be able to redevelop the property from 8 units to 68 units, Valley is planning to apply for Low-Income
Housing Tax Credits. To be eligible for these credits, Valley must transfer ownership of the property to Saltair
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Lofts LLC. This transfer would trigger the reversionary interest unless council takes action as proposed by the
Administration. Valley is the managing partner of Saltair Lofts LLC.
Restrictive Use Agreement
The project must include a minimum of 68 affordable units serving individuals experiencing chronic
homelessness
Income eligibility requirements:
o 5 units restricted to households at or below 30% AMI
o 63 units restricted to households at or below 40% AMI
Maximum rent calculations will be based on the following AMI levels:
o 5 units at 25% AMI
o 63 units at 35% AMI
At least 9 units must be designated and fully accessible for individuals with mobility impairments.
Supportive services and amenities will include:
o On-site case management
o Clinical services
o Resident support programming
o Community kitchen
o Fitness area
o Computer room
o Outdoor courtyard
The project must be all-electric and will meet Energy Star MFNC and Enterprise Green Communities
certification standards.
The City will retain the ability to monitor compliance, including inspections and review of affordability
documentation.
The agreement will remain in effect for 50 years.
In the event of foreclosure, the only surviving restriction will require all units to remain available to
households with incomes at or below 60% AMI.
According to the Administration, the restrictive use agreement allows the City to sue for performance to require
the owner to follow the terms of our agreement. In addition, since this is a LIHTC project, Utah Housing
Corporation and the project’s tax credit investors also have agreements that Valley provide permanent
supportive housing and services that they have committed to.
For information regarding current AMI numbers, see Attachment 1.
Public Benefit Analysis
In accordance with Utah Code §10-8-2(3)(e), a public benefits analysis was conducted for this project. The
following public benefits have been identified as part of this project:
1. Permanent supportive housing creation
2. Behavioral health and support services
3. Sustainability and design excellence
4. Transit-oriented development
5. Economic and social value
The following quality of life improvements have been identified as part of this project:
1. Provides a supportive, service rich environment enabling residents to stabilize their lives
2. Integrates behavioral health care and housing, reducing the strain on public safety and healthcare
systems
3. Reduces nuisance activity and blight in the area
4. Promotes community cohesion
5. Enhances the comfort and convenience of residents citywide
The Administration has found that this proposal aligns with the following City Plans
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Housing SLC (2023-2027)
Thriving in Place
Climate Positive 2040
ATTACHMENTS
1. 2025 HUD Area Median Income (AMI) Levels
ATTACHMENT 1
2025 HUD Area Median Income (AMI) Levels
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