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Home My WebLink AboutCouncil Provided Information - 3/10/2026COMMUNITY REINVESTMENT AGENCY OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 SLC.GOV/COUNCIL TEL 801-535-7600 FAX 801-535-7651 BOARD STAFF REPORT COMMUNITY REINVESTMENT AGENCY of SALT LAKE CITY TO:Board Members FROM Allison Rowland Senior Budget & Policy Analyst DATE:March 10, 2026 RE:PROPOSED HOUSING DEVELOPMENT FUNDING PRIORITIES FOR FISCAL YEAR 2026-27 ISSUE AT-A-GLANCE Each year, in preparation for the CRA budget discussions, the Board reviews and considers whether to change any aspects of its Housing Development Funding Strategy. This strategy guides CRA staff and affordable housing developers on the types of proposals that the Board prefers to fund. This is the first of two planned discussions of the funding strategy for FY27. For the coming year, CRA staff proposes a change that would affect both of the “threshold priorities” for affordable housing projects; at least one of these must be met for an application to be eligible for funding through the CRA’s Housing Development Loan Program (HDLP). CRA staff also proposes to slightly shift one of the other priorities, as shown below. Existing Threshold Priorities Existing Other Priorities Deeply Affordable Housing Affordable Family Housing Wealth Building Opportunity Expanding Opportunity Neighborhood Services and Commercial Space - Proposed FY27 Changes Proposed FY27 Changes -The share of units required in a proposed development for it to qualify as either “Deeply Affordable Housing” or “Affordable Family Housing,” would rise from 10% to 20%. “Expanding Opportunity” would be changed to “Expanding Affordable Housing Availability.” This would shift the focus from “high opportunity areas,” instead incentivizing new affordable housing in areas where deed-restricted affordable housing not currently available. Schedule: Page | 2 The discussions of annual Housing Priorities also set the bases for the annual CRA budget process each May and June. Both the proposed total funding amount dedicated to affordable housing development projects, and the allocation of this amount among different program categories are subject to Board approval. This includes: -specific funding allocations among eligible Housing Activities (for example, the Housing Development Loan Program (HDLP), or Land Acquisition), and -projected revenue for allocations to each of the four CRA Housing Funds (Primary Housing Fund, Secondary Fund, Westside Community Initiative Fund, and Housing Development Loan Fund). Goal of the briefing: Discuss the proposed Fiscal Year 2027 Housing Priorities and potentially straw poll any changes to provide direction to CRA staff for preparing a resolution next month. POLICY QUESTIONS The Board may wish to request additional information on the proposed change to the Expanding Opportunity priority, specifically how different areas of the City would be prioritized or ranked. CRA staff suggests renaming this priority Expanding Affordable Housing Availability, to focus less on expanding affordable housing in specific “high opportunity areas” and more on ensuring that housing investments incentivize additional housing in areas that do not currently have deed-restricted affordable units available. For example, the Board could request a current list of City census block groups and the number of deed-restricted affordable units in each. Does the Board wish to modify any items on the proposed list of FY27 Priorities? Please refer to the straw poll sheet. ADDITIONAL & BACKGROUND INFORMATION FY27 Proposed Funding Priorities. For FY27, CRA staff proposes the changes listed below to annual Housing Priorities, which are particularly relevant to the HDLP and its annual Notice of Funding Availability (NOFA) processes. Each of the five annual Housing Priorities is weighted more heavily than other factors in the project score calculated during the HDLP project selection, which helps assess applications and potentially qualify them for interest rate reductions. Note: All HDLP applicants must comply with the CRA’s Sustainable Development Policy. It requires all new construction and rehab projects receiving $900,000 or more in funding to receive an Energy Star score of 90 or more; be 100% electric (no on-site fuel combustion); and participate in Salt Lake City’s Energy Benchmarking Program. Existing Threshold Priorities Existing Other Priorities Deeply Affordable Housing Affordable Family Housing Wealth Building Opportunity Expanding Opportunity Neighborhood Services and Commercial Space - Proposed FY27 Changes Proposed FY27 Changes -The share of units required in a proposed development for it to qualify as either “Deeply Affordable Housing” or “Affordable Family Housing,” would rise from 10% to 20%. “Expanding Opportunity” would be changed to “Expanding Affordable Housing Availability.” This would shift the focus from “high opportunity areas,” instead incentivizing new affordable housing in areas where deed-restricted affordable housing not currently available. Page | 3 Background on CRA Housing Programs and Policies. The guiding polices for the annual Affordable Housing Strategy are the Housing Allocation Funds Policy and Housing Development Loan Program (HDLP) Policy, which were adopted by the Board in 2021 (see below for more details). As outlined in these policies, each year, CRA staff prepares a proposed Strategy—including a resolution and funding allocations—for the Board’s consideration and approval. During the broader City budget discussions (typically in May) the Board finalizes the funding amounts in the Strategy. Housing Development Funding Strategy. Per policy, the Strategy includes: -a projected revenue amount proposed by CRA staff to be allocated to the Housing Funds, and -a proposed funding allocation among the Housing Activities (for example, gap financing loans, property acquisition) approved annually by the Board. Housing Development Loan Program (HDLP) Policy defines one of the four typical Activities used to implement the Annual Priorities: the Housing Development Loan Program. The purpose of this program is to provide low-cost financial assistance to incentivize the development and preservation of affordable housing in Salt Lake City. Annual HOUSING FUNDING strategy Fy 2026-27 CRA Board Meeting March 10, 2026 ADOPTED Q1 2021 YEARLY BOD APPROVAL HOUSING DEVELOPMENT FUND WESTSIDE COMMUNITY INITIATIVE FUND SECONDARY HOUSING FUND PRIMARY HOUSING FUND HOUSING ALLOCATION FUNDS POLICY HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY This policy established guidelines for allocating/directing resources for housing by funding source. Also requires "Annual Housing Funding Strategy" (right) be brought in front of Board every year. For your feedback today PRIMARY HOUSING FUND WESTSIDE COMMUNITY INITIATIVE FUND HOUSING DEVELOPMENT FUND SECONDARY HOUSING FUND housing fund allocations $$$$ HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY Wealth Building Opportunity Family Housing with Amenities Expanding Opportunity FY26 Housing Activity RECAP FY 2025-26 HOUSING PRIORITIES Deeply Affordable Housing Neighborhood Services and Commercial Spaces FY 2026-27 Housing Development Loan Program $8.1M released - In process, to be reviewed by CRA Board in March ADU Financing Program (FY24 Priority)/ Down Payment Assistance Finalizing contracts for ADU Financing Program and Downpayment Assistance Program Residential Wealth Building NOFA $6.4M released - In process, to be review by CRA Board in April Data - current and future slc deed-restricted affordable housing developments map Data - city supported Affordable housing constructed since 2016 and future developments Data - city supported Affordable housing units by bedroom size since 2016 Units by Bedroom Count Data - city supported Affordable housing units by ami since 2016 Units by Affordability Level Data - Salt Lake City Housing Snapshot Source: US Census, American Community Survey 5 Year Estimates 2019-2024 MEDIAN HOUSEHOLD INCOME $74,9251 MEDIAN HOME VALUE2 3 COST-BURDENED HOUSEHOLDS $495,700 22,169 (spending 30% or more income on housing costs) FY 2024-2025 MEDIAN RENT $1,343 MEDIAN HOUSEHOLD INCOME $75,0901 MEDIAN HOME VALUE2 3 COST-BURDENED HOUSEHOLDS $539,500 24,617 (spending 30% or more income on housing costs) FY 2025-2026 MEDIAN RENT $1,414 In One Year... Median Household Income grew by 0.2% Median Home value grew by 8.8% Median Rent grew by 5.2% 1 Source: US Census, American Community Survey 5 Year Estimates 2019-2024 HOMEOWNERSHIP RATE IS GROWING AT A SLOWER PACE THAN RENTALS AND HOMES PRICES CONTINUE TO RISE Data - other metrics Salt Lake City Owner and Renter-Occupied Units 1 HOMEOWNERSHIP RATE IS GROWING AT A SLOWER PACE THAN RENTALS AND HOMES PRICES CONTINUE TO RISE Source: US Census, American Community Survey 5 Year Estimates 2019-2024 Data - other metrics Salt Lake City Home Values 2 Source: US Census, American Community Survey 5 Year Estimates 2019-2024 11,411 OR 23% OF RENTING HOUSEHOLDS ARE SPENDING MORE THAN HALF THEIR INCOME ON RENT Data - other metrics Households by Percentage of Income Spent on Rent 3 Source: US Census, American Community Survey 5-Year Estimates 2019-2024 PERCENTAGE OF FAMILY HOUSEHOLDS HAVE BEEN DECREASING SINCE 2018 Data - other metrics Household Type 4 Source: US Census, American Community Survey 5-Year Estimates 2019-2024 HIGHER INCOME HOUSEHOLDS MAKING $75K OR MORE HAVE INCREASED WITHIN SALT LAKE CITY THROUGH THE YEARS, LOWER INCOME HOUSEHOLD MAKING LESS THAN $50K HAVE DECREASED. Data - other metrics Salt Lake City Household Income Levels 5 Source: Colliers Retail Q4, Salt Lake County Report COMMERCIAL CONSTRUCTION HAS SLOWED, WHILE VACANCY REMAINS LOW Data - other metrics Salt Lake County Commercial Data 2 3 4 5 Source: US Census, American Community Survey 5 Year Estimates 2019-2024 Colliers Retail Q4, Salt Lake County Report (5) HIGHER INCOME HOUSEHOLDS MAKING $75K OR MORE HAVE INCREASED WITHIN SALT LAKE CITY THROUGH THE YEARS, LOWER INCOME HOUSEHOLD MAKING LESS THAN $50K HAVE DECREASED. COMMERCIAL CONSTRUCTION HAS SLOWED, WHILE VACANCY REMAINS LOW PERCENTAGE OF FAMILY HOUSEHOLDS HAVE BEEN DECREASING SINCE 2018 11,411 OR 23% OF RENTING HOUSEHOLDS ARE SPENDING MORE THAN HALF THEIR INCOME ON RENT 1 HOMEOWNERSHIP RATE IS GROWING AT A SLOWER PACE THAN RENTALS AND HOMES PRICES CONTINUE TO RISE Data - other metrics salt lake City Housing Goals HOUSING SLC PUBLIC SAFETY PLAN GOALS CRA LIVABILITY BENCHMARKS Increase deeply affordable housing Support projects that allow tenants to build wealth and/or gain equity Continue to release housing funds through CRA for development or acquisition of moderate income housing Promote the development of affordable family-sized units with 3+ bedrooms Utilize Inland Port Housing Funds to expand affordable housing options Ownership - Create opportunities for residents/business owners to building wealth and/or establish permanent roots Housing for Everyone - Promote housing for families, underserved populations and extremely low income Promote mixed-income developments, economically integrated communities, and opportunities for low-income residents. Affordable Commercial Spaces - Support mixed-use projects with space for commercial uses that serve the community Produce more housing, especially affordable housing Protect tenants from displacement, especially the most vunerable THRIVING IN PLACE Progress towards affordable housing goals WEALTH BUILDING OPPORTUNITY FY27 recommended annual housing priorities Seeking Board feedback today FAMILY HOUSING w/ AMENITIES for CHILDREN DEEPLY AFFORDABLE HOUSING HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY NEIGHBORHOOD SERVICES AND COMMERCIAL SPACES EXPANDING AFFORDABLE HOUSING AVAILABILITY FY2026-27 Priority Update LAND ACQUISITION/ DISPOSITION HOUSING DEVELOPMENT LOAN PROGRAM WEALTH BUILDING NOFA recommended housing ACTIVItIES Tools/programs by which to achieve Priorities; Seeking Board feedback today HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY housing ACTIVItIES to achieve housing priorities Require affordable family housing and/or deeply affordable housing as threshold in Housing Development Loan Program NOFA - proposing to increase from 10% to 20% threshold Utilize interest rate reduction benchmarks (Alignment with CRA's Guiding Framework) Annual priorities will have greater ranking weight HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY FY27 Housing Activity IMPACT HOUSING PRIORITIES Wealth Building Opportunity Affordable Family Housing w/ Amenities for Children Deeply Affordable Housing Neighborhood Services & Commercial Spaces Wealth Building NOFA Land Acquisition/ Disposition Housing Development Loan Program HOUSING ACTIVITIES Expanding Affordable Housing Availability HOUSING DEVELOPMENT FUND SECONDARYPRIMARY WESTSIDE COMMUNITY INITIATIVE FUND housing fund allocations FY27 ANNUAL HOUSING FUNDING STRATEGY ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES NEIGHBORHOOD SERVICES & COMMERCIAL SPACES WEALTH BUILDING OPPORTUNITY DEEPLY AFFORDABLE HOUSING AFFORDABLE FAMILY HOUSING HOUSING DEVELOPMENT LOAN PROGRAM LAND ACQUISITION/ DISPOSITION WEALTH BUILDING NOFA EXPANDING AFFORDABLE HOUSING AVAILABILITY Reinvestment Advisory Committee (RAC) Presented to RAC 3/4/26 RAC feedback: Ensure the 3-bedroom requirement for family housing is not making it more difficult to build family housing/starter homes Two bedroom units, paired with amenities for children, may still be appropriate for families Concerns about putting affordable housing away from amenities HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY next steps The Board may wish to provide feedback The Board will consider approval of the FY27 housing priorities at the April meeting. Proposed funding allocations to housing activities will be brought to the Board with the budget presentation in May Housing activities are approved as a part of the CRA budget approval HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY