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Home My WebLink AboutCouncil Provided Information - 5/12/2026 (2)CRA BOARD MEETING – MAY 12, 2026 RESIDENTIAL WEALTH BUILDING PILOT PROGRAM NOTICE OF FUNDING AVAILABILITY (NOFA) COMPETITIVE HOUSING DEVELOPMENT PROGRAM APPLICATIONS Renting vs. Owning •Average homeowner’s net worth in the US: $396,200 •Average renter’s net worth in the US: $10,400 Homeownership is Out of Reach •SLC is a Majority-Renter City •High-Interest Rate Environment •Median Mortgage Rate is above 6% •High Home Prices •Median Home Price is more than $550,000 •Limited New For-Sale Housing Development CHALLENGES FOR WEALTH BUILDING IN SLC BACKGROUND COMPARISON OF HOUSING PROGRAMS HOUSING ACTIVITIES HOUSING PRIORITIES Residential Wealth Building Pilot Program NOFA Housing Development Loan Program NOFA Land Acquisition/ Disposition Deeply Affordable Housing Family Housing w/ Amenities for Children Wealth Building Opportunity Expanding Opportunity Neighborhood Services & Commercial Spaces PROGRAM GOALS •Support housing developments that help LMI individuals and families access affordable wealth- building opportunities •Support for new or existing affordable housing developments that bridge the wealth gap between renters and homeowners •Support proposals that may not meet the underwriting terms of the CRA’s annual HDLP NOFA •Pilot program that could demonstrate where future targeted financing could be successful BACKGROUND ELIGIBLE PROJECT TYPES •Owner-Occupied Housing Developments •Rent-to-Own Developments •Sweat-Equity Homes •Conversions of Existing Rental Properties to Condos or Co-ops •Tenant Shared Equity Models •Live-Work Units •Cohousing Developments •Land Trusts RESIDENTIAL WEALTH BUILDING NOFA OVERVIEW FUNDS AVAILABLE •Total: $6.46M RESIDENTIAL WEALTH BUILDING NOFA OVERVIEW COMPETITIVE FUNDS CATEGORY RESTRICTIONS FY25-26 BUDGETED AMOUNT CRA Housing Development Loan Fund Available within Salt Lake City Boundaries $1,000,000 CRA Westside Community Initiative Available for projects west of I-15 $3,948,919 CRA School District Required Family Housing 3+ Bedrooms Available for projects with 3 or more bedrooms $1,517,484 TOTAL: $6,466,403 APPLICATION PROCESS •Competitive Process •Applications Released: October 21, 2025 •Information Session: October 29, 2025 •Applications Due: December 4, 2025 APPLICATION SUMMARY •3 applications received, 1 ineligible, 2 eligible for Residential Wealth Building funding: o Garbett Homes: Brix on Tenth o CDCU: Gladhouse 3 •$7.93M total eligible funding request RESIDENTIAL WEALTH BUILDING NOFA OVERVIEW A – Garbett Homes B – CDCU FY2025-2026 APPLICATIONS MAP THRESHOLDS REQUIREMENTS ELIGIBLE APPLICANTS: Private incorporated non-profit agencies with IRS 501(c) designation; Public housing agencies or units of government; or For-profit corporations, partnerships, joint ventures, or sole proprietors. ELIGIBLE AREA: Proposals must be located and/or provide services in Salt Lake City boundaries. The Westside Community Initiative funds must be spent west of I-15. asd SUSTAINABILITY: Projects required to be designed to achieve a “Designed to Earn the Energy Star” Score of 90 or higher, contain no onsite fossil fuel combustion, and participate in the City’s Elevate Buildings program once the building is operating (if applicable). APPLICATION EVALUATION HOUSING DEVELOPMENT PRIORITIES (18 PTS) •Family Housing •Expanding Opportunity •Neighborhood Services & Commercial Spaces •Affordable Housing Preservation •Architecture and Urban Design •Historic Preservation/Adaptive Reuse •Special Populations •Missing Middle & Unique Housing Types •Public Art •Public Space •Sustainability •Transportation Opportunities SCORING CRITERIA (46 PTS) •Narrative Completeness •Project Priorities •Tenant Selection Plan and Procedures •Relevant Experience •Alignment with Program Goals •Number of Beneficiaries •Community Needs •New Units to Market •Length of Affordability •Budget Feasibility •Funding Leveraging •Competitiveness of Pricing •Utilization of CRA Funds •Loan Repayment •Readiness •Sale of Units •Sustainability •Administrative Burden •Novel Methods ALIGNMENT WITH CRA GOALS:APPLICATION QUALITY: APPLICATIONS OVERVIEW Applicant A – Garbett B – CDCU Proposal Brix on Tenth Gladhouse 3 Project Type New Construction – For-Sale Townhomes New Construction – For-Sale Cottage Court Homes in a CLT Recommended Funding and Use of Funds Fair-Share Shared Appreciation Mortgage (SAM) capital (investment): $3,717,300 Administrative fees: $185,865 Fund setup costs: $60,849 CDCU homebuyer services: $34,500 $3,998,403 0% interest construction loan w/ 36-month max term (loan): $2,000,000 Revolving downpayment assistance loans: $400,000 Homebuyer matched savings: $60,000 Housing counseling and program administration: $8,000 $2,468,000 Funding Type Investment and administrative costs Loan and administrative costs Description The proposal uses a shared-equity tool providing a 0% interest, no-payment second mortgage to 23 income-restricted, owner-occupied townhomes, priced for households 80%-100% AMI. The project includes 8 single-family homes under a Community Land Trust (CLT) model, priced for households at or below 80% AMI, who will secure their own mortgages. Timeline •Break ground: early-to-mid 2026 •Project completion (absorption): 2028 •Break ground: Mid 2026 •Project completion (absorption): mid 2027. APPLICATIONS OVERVIEW Applicant A – Garbett B – CDCU Proposal Brix on Tenth Gladhouse 3 Units 23 affordable, 23 market rate 8 affordable Affordability Period 35 years In perpetuity Affordability Levels 80 to 100% AMI 80% AMI and below Affordability Mechanism(s) Deed restrictions, property lien, CC&Rs, SAM covenants Community land trust, 99-year land leases, deed restrictions Application Evaluation Scoring Criteria: 27 Project Priorities: 5 Final Ranking: 2nd Scoring Criteria: 30.5 Project Priorities: 4 Final Ranking: 1st Bedroom Count Total Units 80% AMI 90% AMI 100% AMI 110% AMI 120% AMI Market Rate Total Units 80% AMI 90% AMI 100% AMI 110% AMI 120% AMI Market Rate 1 Bed -------------- 2 Bed 34 -21 ---13 6 6 ----- 3 Bed 12 1 -1 --10 2 2 ----- Total 46 1 21 1 --23 8 8 ----- APPLICATIONS OVERVIEW A – BRIX ON TENTH B – GLADHOUSE 3 IMPACT POTENTIAL* Applicant:A – Garbett B – CDCU Proposal:Brix on Tenth Gladhouse 3 $3,998,403 $2,468,000 Funding Type:Investment: $3,717,300 Admin Costs: $281,103 Loan: $2,000,000 Admin Costs: $468,000 Total Household Wealth Generated Per Project (Approximations): Over 10 Years:Between $2.1 Million and $7.1 Million $850,000 Over 30 Years:Between $10.9 Million to $45.7 Million $4.1 Million Shared-Appreciation Mortgages Investment (Additional Value): Over 10 Years Between $677,000 and $3.2 Million Over 30 Years:Between $2.2 Million to $20.8 Million *The scenarios described here are for illustrative purposes only, and reflect general averages from the projects, and are not intended to depict actual project performance. SELECTION ADVISORY COMMITTEE RECOMMENDATION Garbett Homes Community Development Corporation of Utah 1549 S 1000 W $3,948,919 1084 W 1700 S $1,000,000 $49,484 $3,998,403 $1,468,000 $2,468,000 BOARD CONSIDERATION BOARD TO CONSIDER ADOPTING A RESOLUTION: •Approve funding allocations