HomeMy WebLinkAbout17 of 2025 - NeighborWorks – Sustainability Waiver RequestSALT LAKE CITY COMMUNITY REINVESTMENT AGENCY
RESOLUTION NO. _______________
Adopting the Amended and Restated Term Sheet for NeighborWorks Salt Lake for the
Maltair Lanes and Stanbridge Projects
RESOLUTION OF THE BOARD OF DIRECTORS OF THE SALT LAKE CITY
COMMUNITY REINVESTMENT AGENCY APPROVING AN AMENDED AND
RESTATED TERM SHEET FOR NEIGHBORWORKS SALT LAKE FOR SHARED EQUITY
WORKFORCE HOUSING
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, including the development of affordable housing.
WHEREAS, NeighborWorks Salt Lake (NeighborWorks) is an affordable housing
developer whose mission is to provide affordable homeownership opportunities.
WHEREAS, NeighborWorks is developing two affordable housing projects at 1002 West
200 South (Maltair Lanes) and 319 North and 800 West (Stanbridge) in which they will develop
31 residential units to be affordable to those making 120% area median income or less.
Additionally, the Maltair Lanes and Stanbridge properties will be owned by the NeighborWorks
Community Land Trust (CLT), which will preserve the long-term affordability of the units.
WHEREAS, on June 13, 2023, the CRA’s Board of Director’s (Board) approved
Resolution R-12-2023 and set aside $2.1 million of CRA funds to be distributed to NeighborWorks
on the condition that the Board approve the final Funding Agreement Term Sheet.
WHEREAS, on June 10, 2025, the Board approved Resolution 9 of 2025 – Adopting the
Term Sheet for NeighborWorks Salt Lake for the Maltair Lanes and Stanbridge Projects, including
a provision allowing NeighborWorks to request a modification of the Term Sheet for the Maltair
Lanes project if it were unable to meet the CRA’s Sustainable Development Policy threshold
requirements.
WHEREAS, the CRA staff has now determined that NeighborWorks will be unable to
meet the CRA’s Sustainable Development Policy threshold requirements in its designs for the
Maltair Lanes project.
WHEREAS, the CRA staff recommends the Board approve the attached Amended and
Restated Term Sheet for the funding agreement for NeighborWorks and the Maltair Lanes and
Stanbridge projects, which amendments reflect a waiver of the Sustainable Development Policy
requirements for the Maltair project.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Salt Lake
City Community Reinvestment Agency that it approves the distribution of the funds pursuant to
the terms outlined in the Amended and Restated Term Sheet attached hereto, subject to revisions
that do not materially affect the rights and obligations of the CRA hereunder. The Board
17 of 2025
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authorizes the Executive Director to negotiate and execute the Funding Agreement and any other
relevant documents consistent with the Amended and Restated Term Sheet and incorporating
such other terms and agreements as recommended by the City Attorney’s office.
Passed by the Board of Directors of the Salt Lake City Community Reinvestment Agency,
this ____ day of October, 2025.
Darin Mano, Chair
Approved as to form: /s/ Sara Montoya
Salt Lake City Attorney’s Office
Sara Montoya
Date: September 26, 2025
The Executive Director:
does not request reconsideration
requests reconsideration at the next regular Agency meeting.
Erin Mendenhall, Executive Director
Attest:
City Recorder
14th
10/28/2025
Darin Mano (Nov 4, 2025 10:49:40 CST)
Darin Mano
Rachel Otto (Nov 4, 2025 11:00:21 MST)
Rachel Otto
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EXHIBIT A: AMENDED AND RESTATED FUNDING AGREEMENT TERM SHEET
Amended and Restated Funding Agreement Term Sheet
Partnership with NeighborWorks Salt Lake
For Shared Equity Workforce Housing
Purpose
To provide $2.1 million in financial assistance to NeighborWorks Salt Lake for the development
of two affordable homeownership projects and to incorporate them into the NeighborWorks
Community Land Trust aimed at ensuring long-term affordability and community ownership of
land.
Parties
NeighborWorks Salt Lake (“NeighborWorks”), NeighborWorks Community Land Trust
CLT”), and the Salt Lake City Community Reinvestment Agency (“CRA”).
Developments Projects (“Projects”)
Maltair Lanes: 1002 W 200 S, Salt Lake City, Utah 84104, 0.54 Acres, 13 Units
Stanbridge Property: 800 W 319 N, Salt Lake City, Utah 84116, 0.94 Acres, 18-20 Units
Project Description
NeighborWorks shall use the funds by June 30, 2027 to develop two sites in the Fairpark and
Poplar Grove neighborhoods. Any funds not spent by this date shall be returned to the CRA.
NeighborWorks may request one extension of up to one year to use the funds, which the CRA
Board of Directors (“Board”) may approve or reject in its sole discretion. NeighborWorks will
develop each project independently, with the purpose of creating affordable, for-sale
townhome/rowhome units, with a minimum of 31 residential units. The land under the
developments will be owned by the CLT and units will be sold to individual buyers with a
ground lease agreement between each individual buyer and CLT.
Eligible Activities
The funds shall be used for acquisition reimbursement, hard construction costs, site
improvements, and related soft costs.
Proposed Funding Terms
2,100,000 will be allocated in the form of two conditional grants for the development of
affordable, for-sale housing units, as part of two affordable housing projects to be held in trust by
the CLT.
Amount: A total of $2,100,000
o Maltair Lanes $850,000
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o Stanbridge Property $1,250,000
The conditional grants will be disbursed for each Project upon meeting the requirements and
conditions outlined in this term sheet. The conditional grants are intended to be disbursed
concurrently with all other financing sources secured by the recipient and shall be made available
at the time of financial close, contingent upon the fulfillment of all Conditions to Fund (as set
forth below) in the CRA’s sole judgment.
Residential Unit Requirements and Affordability
Minimum residential units required for each Project:
o Maltair Lanes: 13
o Stanbridge Property: 18
All units must be restricted to households earning no more than 120% of the area median
income (AMI).
All units must remain affordable for a minimum period of 50 years.
NeighborWorks will maximize the number of units affordable to households earning 80%
AMI and below as per guidelines established by HUD.
o A minimum of 20% of units in each Project must be made affordable to
households earning no more than 80% of AMI.
The number of affordable units and level of affordability for affordable homeownership
developments will be evaluated on a case-by-case basis, subject to CRA approval prior to
closing.
All affordability requirements must be memorialized in individual unit deed restrictions,
ground lease agreements, or similar restrictive-use agreements. CRA will be a party to
the recorded deed restrictions.
o Subject to CRA approval, individual unit deed restrictions, ground lease
agreements, or similar restrictive-use agreements must include re-sale restrictions,
including re-sale and equity formulas, that ensure units sold in the future remain
affordable to future buyers.
Per unit cost (including land, construction, and soft costs) shall not exceed an amount that
impedes affordability for the units at or below 120% of AMI and the minimum required
number of affordable units at or below 80% of AMI.
Family-Sized Units
A minimum of 45% of the units in each Project shall have 3 or more bedrooms.
Ownership Requirements
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Units must be developed, platted, and sold as individual units, enabling individual unit
ownership. Sale of units may be conditioned upon execution of a ground lease agreement
between each buyer of an individual unit and the CLT.
Units shall be restricted for primary owner-occupancy through deed restriction, ground
lease agreements, or similar restrictive-use agreements.
o Rental of entire units designed for owner-occupancy shall not be permitted.
o Short-term rental of any portion of each unit (for periods of 30 days or less) shall
not be permitted.
o Exceptions to the owner occupancy and short-term rental restrictions above may
be listed in the deed restriction for units retained by NeighborWorks or the CLT
for the purposes of the CLT Advisory Board (“CLTAB”) oversight and
governance, subject to the conditions described in the following CLT Advisory
Board Oversight section.
CLT Advisory Board Oversight
Subject to CRA review and approval, the ownership of no more than 20% of units in
either Project may be retained by NeighborWorks or the CLT for the purposes of CLTAB
oversight and governance.
o NeighborWorks must demonstrate that the number of units retained for CLTAB
oversight is the minimum required to ensure effective governance, subject to Utah
Code (the Community Association Act, U.C.A. 57-8a-101 et seq.).
Documentation outlining the structure of the CLTAB will be submitted for CRA
review by April 30, 2026.
o Oversight and governance of the CLTAB shall be memorialized in each project’s
Covenants, Conditions & Restrictions (“CC&Rs”), including specifying
NeighborWorks’ responsibility to oversee capital needs assessments, operating
budgets, reserve budgets, and special assessments.
o CC&Rs shall establish maximum CLTAB contributions to ensure the long-term
affordability of owners’ CLTAB fee obligations.
o Units retained by NeighborWorks for CLTAB oversight and governance shall be
considered “sold to initial homeowner” when occupied by qualified households
for the purposes of Obligation Milestones.
Any units with ownership retained by NeighborWorks must be leased at rates affordable
to households making no more than 80% of AMI, with the affordability requirements to
be memorialized in a restrictive use agreement and lease agreements.
o Any units retained by NeighborWorks for CLTAB oversight may be leased in a
lease-to-own arrangement, whereby a tenant is given the option to purchase the
unit at a specified point in the future.
o In the event that any units retained by NeighborWorks are sold to qualified
households, NeighborWorks may replace the unit 1:1 through a right-of-first-
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refusal on any of the other for-sale units within the project, to ensure the
continued oversight and governance of the CLTAB.
The CRA shall have the right to review and approve all CLTAB governance documents.
Sustainability
Projects, unless granted a project-specific waiver by the CRA Board of Directors, shall
comply with the CRA Sustainable Development Policy and must meet the following:
o Designed to Earn the ENERGY STAR target of 90 or higher
o 100% electric building operation (no on-site fossil fuel combustion)
o Participation in SLC’s Energy Benchmarking Program: Annual operational data
must be submitted to Salt Lake City’s Elevate Buildings Program once the
building is in operation.
Maltair Lanes will be granted two project-specific waivers by the CRA Board of
Directors.
o The project will not be required to meet the threshold requirement for Enhanced
Energy Performance, including the requirement to participate in the City
Sustainability Department’s Elevate Buildings Program.
o The project will not be required to meet the threshold requirement for Emission-
Free Building Operation to enable the use of natural gas for HVAC systems. All
other appliances shall utilize all-electric operations.
Reporting and Accountability
NeighborWorks shall provide quarterly progress reports through construction and sale of
the units, and reports at each Obligation Milestone to the CRA detailing the use of funds,
project development status, and CLT formation progress.
Compliance and Legal Requirements
NeighborWorks is required to take the following actions to meet the CRA’s compliance and
legal requirements:
Comply with all local, state, and federal regulations, including but not limited to zoning,
environmental, and fair housing laws.
Execute loan documents (e.g. promissory notes, loan agreements, security documents,
restrictive use agreements) as deemed necessary by the CRA and its legal counsel.
Receive approval from the CRA and its legal counsel of all matters pertaining to title,
legality of the loan, and the legality, sufficiency, and the form and substance of all
documents that are deemed reasonably necessary for the loan transaction. CRA will work
diligently to expedite review of the documents to prevent any delay in loan approvals.
Provide evidence of insurance in such amounts and with such coverage as deemed
necessary by the CRA for the Projects.
Such other terms as recommended by the CRA’s legal counsel and staff.
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Use grant funds solely for the purposes outlined in this term sheet. Any deviation requires
prior written approval from the CRA which may be granted or denied at CRA’s sole
discretion.
Conditions to Fund
Each grant is provided with the following pre-conditions for the Project that NeighborWorks
must meet, to the satisfaction of CRA, to receive funding:
Evidence of site/location control as demonstrated through ownership, option, sale
agreement, or long-term lease.
Disclosure of identity of interest relationships with the Project.
Sufficient sources of project funding/financing for the Project, including letters of
commitment for additional funding/financing.
Per unit cost (including land, construction, and soft costs) that does not exceed an amount
that impedes affordability for the units at or below 120% of AMI and the minimum
required number of affordable units at or below 80% of AMI.
CRA subsidy that does not exceed 15% of the median sales price or $70,000 per unit,
whichever is less.
CRA review and approval of proforma including capital stack for construction of units
and projected sale prices.
CRA review and approval of Building plans.
Evidence and CRA approval of a home-owner selection plan/tenant selection process.
Use of funds strictly for Eligible Activities related to the Project.
Land placed in trust for the purpose of the long-term sustainability and affordability of
homeownership on the site.
All required city approvals and building permits for the Project issued prior to funding.
All necessary funding secured to construct and sell the units with the required affordability
levels.
NeighborWorks’ Obligations after Funds are Distributed
Project groundbreaking: Project must break ground within 6 months of grant funding.
Subdivision Plat, CC&R, and Deed Restriction Recordation: All required documents
ensuring the completion, operation, sustainability and affordability of units must be
recorded with the Salt Lake City Recorder’s and the Salt Lake County Recorder’s
Offices.
Project Completion: Project construction is deemed to be complete by the issuance of a
Certificate of Occupancy on all units. Each project shall be completed within 24 months
of construction commencement.
Absorption of units: All units must be sold to initial homeowners within 36 months of
Project Completion.
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Events of Default
The following occurrences will constitute an event of default:
Failure to meet Project obligations or completion deadlines.
Failure to construct the Project within the timeframe provided in the funding agreement.
Failure to maintain the affordability, including resale price restrictions, as required under
the restrictive use agreements and covenants.
Failure to provide regular development reports.
Failure to comply with any other City, State, or Federal requirements.
Misuse or misappropriation of funds.
Insolvency, bankruptcy, or cessation of Project activities.
Any material misrepresentation or breach of the terms of the grant agreement.
Conversion of Grant to Loan
Upon the occurrence of an Event of Default on either Maltair Lanes or Stanbridge Property
Projects, NeighborWorks will have 180 days after CRA provides written notice of such Event of
Default to cure; if NeighborWorks fails to cure any Events of Default within the specified time
frame, the respective grant will automatically convert into a loan with the following terms:
Amortized Repayment: The principal amount of the loan will equal the total disbursed
grant funds as of the date of default. Amortized interest shall accrue on the principal
outstanding calculated at the time of default at a per annum rate.
Term: 15 years
Interest Rate: 3% interest
Security: The CRA shall be provided with a lien on the property that may be
subordinated to senior lender(s). Lien priority shall be based upon the size of loans with
greater loan amounts yielding higher lien priorities.
Remedies
Remedies if NeighborWorks fails to cure in the event of a default may include, but are not
limited to:
If NeighborWorks does not meet the initial conditions for funding, the CRA will not
distribute funds.
Any unspent or improperly used funds must be returned to the CRA within 90 days.
Once funds are distributed and upon an event of default, the CRA may:
o File a breach of contract claim, which may include claims for:
Liquidated damages
Injunctive relief, and/or
Specific performance
o File a direct action against NeighborWorks to comply with their obligations.
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o Pursue any other remedies available at law or equity.
*Adopted October 14, 2025* CRA Resolution 17
of 2025 - NeighborWorks Sustainability Waiver
Request
Final Audit Report 2025-11-04
Created:2025-10-17
By:DeeDee Robinson (deedee.robinson@slc.gov)
Status:Signed
Transaction ID:CBJCHBCAABAAZa_ddE_CJ-ycvZh46E3YFIhblaWrznxN
"*Adopted October 14, 2025* CRA Resolution 17 of 2025 - Neig
hborWorks Sustainability Waiver Request" History
Document created by DeeDee Robinson (deedee.robinson@slc.gov)
2025-10-17 - 4:05:24 PM GMT
Document emailed to Sara Montoya (sara.montoya@slc.gov) for signature
2025-10-17 - 4:08:01 PM GMT
Email viewed by Sara Montoya (sara.montoya@slc.gov)
2025-10-22 - 7:09:23 PM GMT
Document e-signed by Sara Montoya (sara.montoya@slc.gov)
Signature Date: 2025-10-28 - 9:00:44 PM GMT - Time Source: server
Document emailed to darin.mano@slc.gov for signature
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Email viewed by darin.mano@slc.gov
2025-11-04 - 4:48:23 PM GMT
Signer darin.mano@slc.gov entered name at signing as Darin Mano
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Document e-signed by Darin Mano (darin.mano@slc.gov)
Signature Date: 2025-11-04 - 4:49:40 PM GMT - Time Source: server
Document emailed to Erin Mendenhall (erin.mendenhall@slc.gov) for signature
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Email viewed by Erin Mendenhall (erin.mendenhall@slc.gov)
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Document signing delegated to rachel.otto@slc.gov by Erin Mendenhall (erin.mendenhall@slc.gov)
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Document emailed to rachel.otto@slc.gov for signature
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Email viewed by rachel.otto@slc.gov
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Signer rachel.otto@slc.gov entered name at signing as Rachel Otto
2025-11-04 - 6:00:19 PM GMT
Document e-signed by Rachel Otto (rachel.otto@slc.gov)
Signature Date: 2025-11-04 - 6:00:23 PM GMT - Time Source: server
Document emailed to Keith Reynolds (Keith.Reynolds@slc.gov) for signature
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Email viewed by Keith Reynolds (Keith.Reynolds@slc.gov)
2025-11-04 - 6:01:46 PM GMT
Document e-signed by Keith Reynolds (Keith.Reynolds@slc.gov)
Signature Date: 2025-11-04 - 6:01:57 PM GMT - Time Source: server
Agreement completed.
2025-11-04 - 6:01:57 PM GMT