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HomeMy WebLinkAboutCouncil Provided Information - 5/12/2026SALT LAKE CITY COMMUNITY 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 SALT LAKE CITY COMMUNITY REINVESTMENT AGENCY TO:CRA Board Members FROM:Allison Rowland Senior Policy Analyst DATE:May 13, 2026 RE: RESOLUTION: WEALTH-BUILDING FUNDING ALLOCATIONS FOR FISCAL YEAR 2025-26 FUNDS View the Administration’s proposal ISSUE AT-A-GLANCE The Community Reinvestment Agency (CRA) has provided recommendations for funding two applications that were received through the 2025 Residential Wealth-Building Notice of Funding Availability (NOFA). The Board set aside nearly $6.5 million to fund wealth-building opportunities through affordable home ownership and shared-equity models, and the CRA recommends funding both of the qualified developments reviewed. If the Board approves the two affordable ownership pilot projects under discussion this year, a total of three such projects would be underway. The Community Development Corporation of Utah (CDCU) development at 1084 West 1700 South would provide eight affordable, for-sale single-family homes in a community land trust for households earning 80% or less of Area Median Income. It is recommended for full funding through a 0% CRA loan of $2 million and allocating nearly $470,000 for program implementation. The Garbett Homes development at 1549 South 1000 West would provide 23 affordable for-sale townhomes for households earning between 80% and 100% of Area Median Income. It would take advantage of a relatively new shared-equity tool, known as a “Fair-Share” Shared Appreciation Mortgage (SAM). This project is recommended for nearly $3.7 million of investment funds, with repayments on the SAM loans accessible to the CRA over the 35-year term of the agreement, as well as allocating nearly $290,000 for program implementation. Proposed term sheets for the two projects are provided in the transmittal’s Attachment B. A resolution authorizing funding allocations for the two projects is provided in Attachment C. Prior to disbursing funds, CRA staff will ensure that the project is financially viable, underwriting standards are met, and the use of public funds is necessary for the project to succeed. Schedule: Page | 2 Goal of the briefing: Consider approving the proposed FY26 affordable housing development funding allocations for the Residential Wealth-Building Pilot Program. POLICY QUESTION Comparing the up-front costs of CRA investments per housing unit across different affordable housing projects is complex for several reasons. Things like location, property management, unit lifespan, and the quality of the units can make a big difference. Still, the cost per unit to the CRA of this year’s proposed ownership projects, versus the rental projects approved for Housing Development Loan Program (HDLP) Allocations, is even higher than it was in FY25: The proposed ownership projects this year are estimated to cost roughly 8 times more per unit than the rentals (for details see Staff Note, below). Given that ratio, would the Board like to discuss setting some sort of target spending balance between ownership and rental projects? Staff Note: This is inevitably a rough comparison, leaving aside important details like the repayment terms and other details of each loan, and including all unit sizes (from studio to 3 bedrooms). Broadly, though, across the five rental housing projects funded by CRA staff this year, the average up-front City investment per unit is just over $26,000. This varies among the rental projects from about $13,000 per unit to nearly $46,000, and slightly fewer than half of these units have 2 or 3 bedrooms. In contrast, if the Board follows the Selection Committee’s recommendations, the up-front City investment per unit for ownership units ranges from about $174,000 to $309,000. ADDITIONAL & BACKGROUND INFORMATION 2026 NOFA Process. The 2026 Residential Wealth Building NOFA was released in October 2025, and applications were due by December 4, 2025. Three applications were received and reviewed by CRA staff, but one was found ineligible and was not included in the allocation recommendations. The Selection Advisory Committee considered the following Scoring Criteria as part of its evaluation process: - Content and Quality of the Project Narrative and Application Submittal - Impact and Community Relevance - Cost Effectiveness and Pricing - Technical Viability, and - Novelty and Innovation. Funding Sources. The FY26 budget allocated a total of $6,466,403 to the NOFA for Residential Wealth- Building opportunities. It includes $3,523,612 of FY26 funds and $2,942,791 million in unallocated NOFA funds from FY23-FY25. These amounts are to be drawn from Westside Community Initiative funds ($3,948,919), which is targeted for developments west of Interstate 15; Salt Lake City School District funds ($1,517,484), which targeted for affordable housing with three or more bedrooms; and the Housing Development Loan Fund ($1,000,000). Page | 2 Page | 3 The Applications. The two wealth-building developments recommended by the Committee to be funded through the proposed resolution are led by the Community Development Corporation of Utah (CDCU), and Garbett Homes. CDCU. The “Gladhouse 3” development at 1084 West 1700 South would provide eight single-family homes for sale in CDCU’s affiliate community land trust, known as CDLT. Eligible households must earn 80% or less of Area Median Income (AMI). The land trust will retain ownership of the land and common space and provide management of the property. CDCU will administer revolving downpayment assistance loans, as well as other services, including a homebuyer match savings program, homebuyer housing counseling, and program administration. Garbett Homes. “Brix on Tenth” development at 1549 South 1000 West would consist of 46 for-sale townhomes of which 23 would be sold at market rate and the remainder would be sold at affordable rates: two affordable units with three bedrooms each, and 21 affordable units with two bedrooms each. These 23 affordable townhomes would be available for purchase by households earning between 80% and 100% of Area Median Income for 35 years, deed-restricted to owner occupancy and affordability, and could be resold only to income-qualified households during that period. The project is expected to be complete in late 2027.