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Home My WebLink AboutCouncil Provided Information - 3/10/2026BOARD STAFF REPORT COMMUNITY REINVESTMENT AGENCY of SALT LAKE CITY TO:Board Members FROM:Allison Rowland Senior Budget & Policy Analyst DATE:March 10, 2026 RE:RESOLUTION: HOUSING DEVELOPMENT LOAN PROGRAM (HDLP) ALLOCATIONS FOR FISCAL YEAR 2025-2026 FUNDS CORRECTED: Revised text under Northwest Pipeline heading. ISSUE-AT-A-GLANCE The Board will review and potentially approve recommendations for allocating up to $8,118,128 in affordable housing funds from the Housing Development Loan Program (HDLP). The purpose of these low-interest loans is to incentivize the inclusion of affordable housing in new construction and in preservation or rehabilitation projects. Developers submitted their proposals through a Notice of Funding Availability (NOFA) issued last year, and nine applications, requesting a total of nearly $23.3 million, were found eligible by CRA staff. These were forwarded to the CRA Finance Committee, which recommended the Board fund four of these developments using $8,068,128 in available funds. These developments would provide a total of 595 units of new affordable housing (see Attachments C1 and C2 for summaries). The Board makes the final determination of which applications to fund and for what amount. Goal of the briefing: Discuss and consider adopting the Resolution entitled Affordable Housing – FY2026- 2027 Competitive Housing Development Loan Program (HDLP) Funding Allocations. POLICY QUESTION 1.In past years, many HDLP projects included at least some market rate units, but these have become much less common in recent years. Would Board Members like to discuss with CRA staff the potential causes of this change, and whether there are significant benefits to including market rate units in HDLP-funded projects? Schedule: Briefing: March 10, 2026 Set Date: N/A Public Hearing: N/A Potential Action: March 10, 2026 ADDITIONAL INFORMATION Process Overview. Since 2018, the CRA has released multiple NOFAs to facilitate the development of affordable housing units in Salt Lake City. The FY26 NOFA was released on October 21, 2025, and applications were due on December 4, 2025. As a first step in the application review process, CRA staff analyzes each application to ensure compliance with HDLP eligibility requirements. The CRA Finance Committee then considers the Board’s funding priorities, along with factors related to the feasibility and technical qualities of each application. These include developer experience, the completeness and quality of the application, the amount of requested funding per affordable unit, the unit mix, community impact, and the financial and regulatory readiness of the proposed project. All of the eligible applications were reviewed and ranked by the CRA Finance Committee, and their specific recommendations for allocating nearly all of the $8.1 million available ($50,000 would remain) are summarized in Attachments C1 and C2. Four of the nine applications were recommended for HDLP funding. Of those four, one was recommended for the full amount requested, and the others were recommended for less than the full amount. Two of the recommended projects include both 2- and 3-bedroom units, and together with a third project that has 2-bedroom units only, these would supply 158 new 2-bedroom units and 89 new 3-bedroom units. The fourth of these three recommended applications is for the Gardens at Palmer, which would replace the aging Palmer Court development with a new building that contains 187 one-bedroom units of permanent supportive housing. Northwest Pipeline Building. In recent years the Board awarded funding to the Housing Assistance Management Enterprise (HAME) through two different NOFAs for their planned rehabilitation of the Northwest Pipeline Building. One million dollars of HDLP funds were awarded from the HDLP NOFA, while the proposed Rent-to-Own Program was awarded $1.2 million from the special NOFA for Residential Wealth Building Pilot Programs. The latter was rescinded because the developers are no longer proposing this program for residents of the building. The HDLP funding commitment remains active. Attachment C1. Summary of CRA Finance Committee Recommendations for FY26 HDLP Funding. Attachment C2. Summary of Other Applications for FY26 HDLP Funding. CRA BOARD MEETING – MARCH 10, 2026 AFFORDABLE HOUSING NOTICE OF FUNDING AVAILABILITY (NOFA) COMPETITIVE HOUSING DEVELOPMENT LOAN PROGRAM APPLICATIONS FUNDS AVAILABLE FY2025-26 COMPETITIVE HDLP NOFA OVERVIEW COMPETITIVE FUNDS SOURCE AMOUNT CRA Housing Development Loan Program $5,587,537 CRA Deeply Affordable $2,480,591 CRA High Opportunity Area $50,000 TOTAL:$8,118,128 APPLICATION PROCESS •Competitive Process •Applications Released: October 21, 2025 •Information Session: October 29, 2025 •Applications Due: December 4, 2025 APPLICATION SUMMARY •10 applications received, 1 ineligible •9 applications eligible •$23,297,049 in eligible loan requests FY2025-26 COMPETITIVE HDLP NOFA OVERVIEW FY2025-2026 HDLP Applications Map THRESHOLD REQUIREMENTS MINIMUM AFFORDABILITY •20% of the project’s total residential units must be affordable to households earning 60% of the Area Medium Income ("AMI") or less SUSTAINABILE DEVELOPMENT POLICY •Designed to Earn the Energy Star score of 90 or more •100% electric building operation (no fossil fuel consumption) •Participation in City’s Elevate Buildings benchmarking program AND ONE OF THE FOLLOWING FAMILY-SIZED UNITS •Deeply affordable housing: 10% of units must be affordable to households earning 30% AMI or less OR DEEPLY AFFORDABLE UNITS •Affordable family-sized housing with amenities for children: 10% of units must have 3 bedrooms or more and be affordable to households earning 60% AMI or less and have a child amenity, as approved by CRA staff PROJECT PRIORITIES – PRIMARY SCORE PROJECT PRIORITIES (25+ points available) Projects will be allocated a primary score based on their alignment with the Housing Development Project priorities to determine interest rate reductions. •Affordable Family Housing with Amenities for Children (3 points)* •Deeply Affordable Housing (3+ points)* •Ownership: Wealth Building Opportunity*(3 points)* •Neighborhood Services & Commercial Spaces (3 points)* •Expanding Opportunity (3 points)* •Affordable Housing Preservation (1 point) •Architecture & Urban Design(1 point) •Building Preservation, Rehabilitation, or Adaptive Reuse (1 point) •Special Populations (1 point) •Missing Middle & Unique Housing Types (1 point) •Mixed-Income Neighborhoods (1 point) •Public Art (1 point) •Public Space (1 point) •Sustainability( 1 point) •Transportation Opportunities (1 point) *Denotes Board-adopted housing funding priorities SCORING CRITERIA – SECONDARY SCORE Content and quality of the project narrative and application submittal (11 points available) •Narrative and Application Completeness (5 points) •Project Priorities (2 points) •Relevant Experience (2 points) •Clarity of budget, financing, operating proforma, and repayment (2 points) Budget, sources and uses, operating pro forma, and related assumptions (16 points available) •Feasibility of Proforma, sources and uses (2 points) •Utilization of housing tax credits (5 points) •Utilization of other tax credits (2 points) •Loan repayment (3 points) •Deferred developer fee (2 points) •Owner equity (2 points) Readiness of the project to proceed for construction (5 points available) •Readiness (3 points)•Site control (2 points) Advancing the housing landscape (4 points available) •Emerging developers and housing models (2 points) •Availability of affordable housing in areas with limited options (2 points) QUALIFICATIONS AND DISTINGUISHING FACTORS (36 points available) Applications will be allocated a secondary score based on how they align with the Scoring Criteria. APPLICATIONS OVERVIEW 1 2 3 4 5 6 7 8 9 The Amelia Gardens at Palmer Safe Haven Northwest Pipeline Building The Chicago Emeril Apartments 200 West Apartments Washington Yards 300 W Apartments Cole West The Road Home/First Step House/GIV Group Valley Behavioral Health HAME Great Lakes Capital CDCU First Step House Brinshore Chelsea Investment Co Address 209 W 900 S 999 S Main Street 550 W 700 S 315 E 200 S 27 N Chicago Street 37 North 800 West 1055 S 200 W 1050 S Washington Street 1485 S 300 W Preliminary Terms 2%, 17 Year Term 2%, 40 Year Term 1%, 30 Year Term 2%, 30 Year Term 2%, 18 Year Term 2%, 30 Year Term 2%, 17 Year Term 2%, 30 Year Term 2.5%, 30 Year Term Repayment Type Cash Flow with Balloon Payment Cash Flow with Balloon Payment Hard Cash Flow with Balloon Payment Cash Flow with Balloon Payment Cash Flow with Balloon Payment Cash Flow with Balloon Payment Cash Flow with Balloon Payment Cash Flow with Balloon Payment CRA Request Amount $5,000,000 $3,500,000 $712,866 $2,884,183 $2,000,000 $2,300,000 $2,500,000 $2,000,000 $2,400,000 FC Funding Recommendations $0 $2,168,128 $0 $0 $2,000,000 $2,000,000 $0 $0 $1,900,000 Previous CRA Commitments $0 $0 $0 $1,000,000 $0 $0 $0 $0 $0 Project Cost $53,386,624 $65,109,467 $13,035,119 $45,184,650 $43,092,322 $51,079,063 $25,088,320 $58,297,324 $59,240,045 CRA FC Recom. Funding per Unit $ - $11,594 $ - $ - $16,807 $14,815 $ - $ - $12,338 Tax Credits?Awarded, 4%Awarded, 9%Applying, 9%Applying, 4%Awarded, 4%Awarded, 4%Applying, 9%Applying, 4%Applying, 4% Affordable Units Breakdown 15 187 10 11 18 21 70 - 26 Total 31%---44 21 6 --72 - Total 51%-129 - - 18 29 60 - 68 128 Total 61%--- - 13 66 54 - 30 - Total 144 187 54 63 119 135 70 170 154 Percent Affordable (60% AMI & Below)100%100%100%79%45%60%100%82%100% Studio 0 0 43 0 45 0 0 0 0 1bd 99 187 11 27 55 56 70 27 5 2bd 45 0 0 30 19 52 0 79 87 3bd 0 0 0 6 0 27 0 64 62 Project Priorities - Primary Score 7 19 6 11 9 9 14 6 9 Scoring Criteria - Secondary Score 22 17 14 10 20 17 18 17 13 FINANCE COMMITTEE RECOMMENDATION PROJECT/APPLICANT ADDRESS Alignment with Score Scoring Criteria Evaluation LIHTC Awarded? FUNDING REQUEST Min. Funding Request CRA Housing Development Fund CRA Deeply Affordable Funds CRA High Funds TOTAL FUNDING RECOMMENDATION FINAL RANKING The Amelia 209 W 900 S 7 22 Yes, 4%$5,000,000 $3,000,000 $0Cole West Gardens at Palmer 999 S Main Street 19 17 Yes, 9%$3,500,000 $2,000,000 $2,168,128 1GIV Group / The Road Home / First Step House Safe Haven 550 W 700 S 6 14 Applying, 9%$712,866 $499,006 $0Valley Behavioral Health North West Pipeline Building 315 E 200 S 11 10 Applying, 4%$2,884,183 $2,884,183 $0Housing Assistance Management Enterprise The Chicago 27 N Chicago Street 9 20 Yes, 4%$2,000,000 $2,000,000 $1,687,537 $312,463 2Great Lakes Capital Emeril Apartments 37 North 800 West 9 17 Yes, 4%$2,300,000 $2,000,000 $2,000,000 2Community Development Corporation of Utah 200 West Apartments 1055 S 200 W 14 19 Applying, 9%$2,500,000 $1,000,000 $0First Step House Washington Yards 1050 S Washington Street 6 17 Applying, 4%$2,000,000 $1,300,000 $0Brinshore 300 West Apartments 1485 S 300 W 9 13 Applying, 4%$2,400,000 $1,900,000 $1,900,000 3Chelsea Investment Co TOTAL $23,297,049 $16,583,189 $5,587,537 $2,480,591 BOARD CONSIDERATION BOARD TO CONSIDER ADOPTING A RESOLUTION •Approve funding allocations •Due to time and work associated with loan closings, CRA staff recommends adding language to resolution that will allow CRA to charge borrower costs incurred for loan closings. Attachment C2. Summary of Other Applications for FY26 HDLP Funding. Units per AMI Level BedroomsRDA Finance Cmtee Ranking Project Council District Funding Request Total Units <30%31- 50% 51- 60% 61- 80%2BR 3BR Tax Credits Rec'd Planned Start Date Summary Page in Trans- mittal -The Amelia 5 $5,000,000 144 15 -129 -45 -4% LIHTC Sept 2026 15 -Safe Haven (rehab)2 $712,866 54 10 44 ----Applying, 9%Nov 2027 26 -Northwest Pipeline 4 $2,884,183 63 11 21 18 13 30 6 Applying, 4%Oct 2026 30 -200 West Apartment 5 $2,500,000 70 70 ---All 1BR Applying, 9%Nov 2027 43 -Washington Yards 5 $2,000,000 170 72 68 30 79 64 Applying, 4%Fall 2026 49 Attachment C1. Summary of CRA Finance Committee Recommendations for FY26 HDLP Funding. Units per AMI Level BedroomsCRA Finance Cmtee Rank Project Council District Funding Request Funding Recommend -ation Total Units <30 % 31- 50% 51- 60% 61- 80%2BR 3BR Tax Credits Rec'd Prelim. terms Planned Start Date Summary Page in Trans- mittal 1 Gardens at Palmer (Permanent Supportive Housing) 5 $3,500,000 $2,168,128 187 187 ---All 1BR 9% LIHTC Interest Rate: 2.0%. 40-year term. Repayment: Cash Flow with Balloon Payment. Nov 2026 21 2 (tie)The Chicago 2 $2,000,000 $2,000,000 119 18 6 29 66 19 -4% LIHTC Interest Rate: 2.0%. 18-year term. Repayment: Cash Flow with Balloon Payment. Oct 2026 35 2 (tie)Emeril Apartments 2 $2,300,000 $2,000,000 135 21 -60 54 52 27 4% LIHTC Interest Rate: 2.0%. 30-year term. Repayment: Cash Flow with Balloon Payment. Sept 2026 39 4 300 West Apartments 5 $2,400,000 $1,900,000 154 26 128 --87 62 Applying, 4% Interest Rate: 2.5%. 30-year term. Repayment: Cash Flow with Balloon Payment. Oct 2026 54 TOTAL RECOMMENDED $10,200,000 $8,068,128 595 252 134 89 120 158 89