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Home My WebLink About16 of 2025 - Amending Loan Terms for Book Cliffs LodgeSALT LAKE CITY COMMUNITY REINVESTMENT AGENCY RESOLUTION NO. _______________ Amending and Aligning Loan Terms for Cliffs Lodge for the Construction of Affordable Housing RESOLUTION OF THE BOARD OF DIRECTORS OF THE SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY APPROVING THE TERM SHEET FOR THE BOOK CLIFFS LODGE AFFORDABLE HOUSING LOAN AMENDMENT 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, Housing Assistance Management Enterprise (HAME) is the development entity of the Housing Authority of Salt Lake City, a nonprofit organization dedicated to managing and developing affordable housing properties that serve low -income populations and further strives to develop safe facilities and expand solutions to provide affordable housing in Salt Lake City. WHEREAS, through a 2018 Notice of Funding Availability (NOFA) the CRA (then known as the Redevelopment Agency of Salt Lake City (RDA)) administered a loan application and review process for competitive housing funds that met the goals of the NOFA guidelines and policy set forth in resolution R-7-2018 (NOFA Policy). WHEREAS, pursuant to Resolution R-31-2018, passed by the CRA Board of Directors Board) on October 9, 2018, the Board approved a $1,000,000 allocation to HAME to fund a loan for the construction of affordable housing project called Book Cliffs Lodge located at 1159 South West Temple in Salt Lake City (Book Cliffs Project), subject to a 1% interest rate, 30 year term and cash flow repayments (2018 NOFA Allocation). WHEREAS, on March 8, 2022, the Board passed Resolution R-2-2022, enacting the Housing Development Loan Program Policy (HDLP Policy) to repeal and replace the NOFA Policy. WHEREAS, pursuant to the adopted Fiscal Year 2024 (FY24) budget, the Salt Lake City Council directed $6,939,710 of Salt Lake City Corporation (City) Housing Stability Division’s Housing Stability) dormant program income HUD HOME funds and additional HUD HOME program income funds from June 2023 (2023 HUD HOME Funds) to be offered through the FY24 HDLP NOFA, pursuant to the HDLP Policy. ATTACHMENT A 16 of 2025 WHEREAS, through the FY24 HDLP NOFA, the CRA administered a competitive loan application and review process pursuant to the HDLP Policy and in compliance with the CRA’s Housing Funding Priorities for Fiscal Year 2023-2024 set forth in R-8-2023. WHEREAS, pursuant to the FY24 HDLP NOFA process, the Board allocated 15,426,164 of CRA funds and HUD HOME Funds to a number of affordable housing development applicants, including the2023 HUD HOME Funds. WHEREAS, on March 19, 2024, the Board passed Resolution R-1-2024, approving a 740,000 allocation of the 2023 HUD HOME Funds to HAME to fund construction of the Book Cliffs Project (2024 HDLP HUD HOME Allocation), subject to a 2.5% interest rate, 15-year term/30-year amortization, and cash flow repayments and further subject to the terms and conditions of the FY24 HDLP Guidelines and Application Handbook. WHEREAS, on November 7, 2023, the City Council passed Resolution No. 30 of 2023, authorizing an allocation of $3,000,000 HUD HOME funds to HAME to fund a loan for the Book Cliffs Project, subject to the underwriting and lending standards outlined in the HDLP Policy (2023 HUD HOME Allocation). Terms for the 2023 HUD HOME Allocation have not been established or approved. WHEREAS, further pursuant to Resolution No. 30 of 2023 passed by the City Council on November 7, 2023, the CRA, acting as lender, distributes both HUD HOME funds as well as CRA funds, while Housing Stability administers the City’s HUD HOME funds and the CRA administers CRA funds, after such funds are disbursed. WHEREAS, following the approvals of the $1,000,000 2018 NOFA Allocation, the 740,000 2024 HDLP HUD HOME Allocation, and the $3,000,000 2023 HUD HOME Allocation, CRA staff and Housing Stability staff received a request to amend the proposed loan terms for all three allocations to the Book Cliffs Project to support a 40-year repayment term. WHEREAS, CRA staff recommends that the Board approve the attached Term Sheet to extend the loan term for the 2024 HDLP HUD HOME Allocation to 40 years and to further affirm and align the loan terms of the 2018 NOFA Allocation to match the amended 2024 HDLP HUD HOME Allocation loan terms. WHEREAS, additionally, Housing Stability staff recommends that the Board approve the attached Term Sheet to establish loan terms for the 2023 HUD HOME Allocation to align with the 2024 HDLP HUD HOME Allocation loan terms. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Salt Lake City Community Reinvestment Agency that it approves the Book Cliffs Lodge Affordable Housing Loan Amendment as outlined in the Term Sheet attached hereto, subject to revisions that do not materially affect the rights and obligations of the CRA hereunder. The Board authorizes the CRA to disburse, as lender, the 2018 NOFA Allocation, the 2023 HUD HOME Allocation, and the 2024 HDLP HUD HOME Allocation, and further authorizes the Director to negotiate and execute the legal agreements and any other relevant documents consistent with the Term Sheet and the HDLP Policy, 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 ______, 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 Oct. 10/28/2025 Darin Mano (Nov 4, 2025 10:50:09 CST) Darin Mano Rachel Otto (Nov 4, 2025 10:59:42 MST) Rachel Otto 4 EXHIBIT A – TERM SHEET LOAN ALLOCATIONS AND PREVIOUS TERMS Loan Award Year Source Amount Previous Terms Previous Conditional Commitment Period 1 FY 2018-19 NOFA CRA $1,000,000 Interest rate: 1% Term: 30 years Cash Flow Repayments 12 months* 2 2023 Council Budget Direct Allocation HOME $3,000,000 Funding would be allocated subject to the underwriting and lending standards outlined in the RDA's HDLP Policy N/A 3 FY 2023-24 HDLP Competitive NOFA HOME Program Income 740,000 Interest rate: 2.5% Term: 15 years Cash Flow Repayments 24 months CRA staff conitnued working with the developer as they applied for tax credits throughout the years LOAN ALLOCATION AND PROPOSED ALIGNED TERMS Loan Award Year Source Amount Proposed Terms** Proposed Conditional Commitment Proposed Alignment with Project Priorities/Interest Rate Reduction Score** Program Alignment 1 FY 2018-19 NOFA CRA $1,000,000 2 2023 Council Budget Direct Allocation HOME $3,000,000 3 FY 2023-24 HDLP Competitve NOFA HOME Program Income $740,000 Interest rate: 2.5% Term: 40 years Cash Flow Repayments 24 months from FY2023-24 HDLP approval - March 19, 2026 Target Populations: 3 Transportation Opportunities: 1 Neighborhood Safety: 1 TOTAL: 5 HDLP Policy, FY2023- 2024 HDLP Guidelines Final Terms shall comply with the requirements, standard loan terms and conditions, interest- rate reductions, and all other details laid out within the FY2023- 2024 Housing Development Loan Program (HDLP) Guidelines. Changes to repayment type may occur (hard repayment versus cash flow repayment) and shall be based on requirements listed in the HDLP Guidelines or it required by a senior lender. Changes in repayment type will cause a change in the base interest rate. Repayment priority and lien position shall be based on the size of the loan; Funds may be disbursed in a lump sum if required by senior lender(s). *Adopted October 14, 2025* CRA Resolution 16 of 2025 - Modifications to Loan Terms for Book Cliffs Lodge Final Audit Report 2025-11-04 Created:2025-10-16 By:DeeDee Robinson (deedee.robinson@slc.gov) Status:Signed Transaction ID:CBJCHBCAABAAd0pJd3OD7kX4GBkL_Gf3lZrtQwuajfri "*Adopted October 14, 2025* CRA Resolution 16 of 2025 - Modi fications to Loan Terms for Book Cliffs Lodge" History Document created by DeeDee Robinson (deedee.robinson@slc.gov) 2025-10-16 - 10:21:19 PM GMT Document emailed to Sara Montoya (sara.montoya@slc.gov) for signature 2025-10-16 - 10:26:55 PM GMT Email viewed by Sara Montoya (sara.montoya@slc.gov) 2025-10-22 - 7:07:52 PM GMT Document e-signed by Sara Montoya (sara.montoya@slc.gov) Signature Date: 2025-10-28 - 8:57:53 PM GMT - Time Source: server Document emailed to darin.mano@slc.gov for signature 2025-10-28 - 8:57:56 PM GMT Email viewed by darin.mano@slc.gov 2025-11-04 - 4:48:44 PM GMT Signer darin.mano@slc.gov entered name at signing as Darin Mano 2025-11-04 - 4:50:07 PM GMT Document e-signed by Darin Mano (darin.mano@slc.gov) Signature Date: 2025-11-04 - 4:50:09 PM GMT - Time Source: server Document emailed to Erin Mendenhall (erin.mendenhall@slc.gov) for signature 2025-11-04 - 4:50:11 PM GMT Email viewed by Erin Mendenhall (erin.mendenhall@slc.gov) 2025-11-04 - 5:50:45 PM GMT Document signing delegated to rachel.otto@slc.gov by Erin Mendenhall (erin.mendenhall@slc.gov) 2025-11-04 - 5:50:55 PM GMT Document emailed to rachel.otto@slc.gov for signature 2025-11-04 - 5:50:56 PM GMT Email viewed by rachel.otto@slc.gov 2025-11-04 - 5:58:03 PM GMT Signer rachel.otto@slc.gov entered name at signing as Rachel Otto 2025-11-04 - 5:59:40 PM GMT Document e-signed by Rachel Otto (rachel.otto@slc.gov) Signature Date: 2025-11-04 - 5:59:43 PM GMT - Time Source: server Document emailed to Keith Reynolds (Keith.Reynolds@slc.gov) for signature 2025-11-04 - 5:59:49 PM GMT Email viewed by Keith Reynolds (Keith.Reynolds@slc.gov) 2025-11-04 - 6:00:44 PM GMT Document e-signed by Keith Reynolds (Keith.Reynolds@slc.gov) Signature Date: 2025-11-04 - 6:01:38 PM GMT - Time Source: server Agreement completed. 2025-11-04 - 6:01:38 PM GMT