010 of 2019 - SLC Housing Trust Fund loan to Lincoln Tower Housing Associations R 19-1
R 19-8
RESOLUTION NO. 10 OF 2019
Authorizing a loan from Salt Lake City's Housing Trust Fund
To Lincoln Tower Housing Associates LP
(Lincoln Tower)
WHEREAS, Salt Lake City Corporation(the "City")has a Housing Trust Fund to
encourage affordable and special needs housing development within the City; and
WHEREAS, Lincoln Tower Housing Associates LP ("Lincoln Tower Housing") has
applied to the City for a loan to facilitate the acquisition and rehabilitation of an existing senior
housing development known as Lincoln Tower(the"Project") located at 2017 South Lincoln
Street, Salt Lake City, Utah (the "Property");
WHEREAS, the Project includes 95 units, with all of them considered affordable housing
units targeting those at 60% area median income and below; and
WHEREAS, on January 7, 2019 the Housing Trust Fund Advisory Board (the"Board")
reviewed and recommended approval of the loan application with a 3% interest rate; and
WHEREAS, following a change in the financing sources for the Project, the Board
ratified its original approval on April 3, 2019; and
WHEREAS, the City recommends the attached set of terms for a loan to Lincoln Tower
Housing for the Project(the"Term Sheet"), including a recommendation for a 2% interest rate
based on its underwriting of the Project.
NOW THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah:
1. That the City Council hereby approves issuing the loan outlined in the Term Sheet
attached hereto, subject to revisions that do not materially affect the rights and obligations of the
City hereunder, with the requirement that the loan proceeds shall be used to acquire and renovate
the Property for the Project.
2. That Jacqueline M. Biskupski, Mayor of Salt Lake City, Utah, on behalf of Salt
Lake City Corporation is hereby authorized to negotiate and execute the requisite loan
documents and any other relevant documents consistent with the Term Sheet, and incorporating
such other terms and agreements as recommended by the City Attorney's office, and to act in
accordance with their terms.
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Passed by the City Council of Salt Lake City, Utah,this 23rd day of
April , 2019.
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LT L ITY COUNCIL
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ATTEST: Approved as to Form
Salt L ke ity Attorney's Office:
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CITY RECORDER K m erl�ypK�. yttrau�s, Sen
ior City Attorney
Date: ]yr
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LOAN TERM SHEET
Lincoln Tower
Borrower: Lincoln Tower Housing Associates LP
Address: 2017 South Lincoln Street, SLC, UT 84105
Loan Amount: $1,300,000 (to be reduced if Fannie Mae loan can be increased at
time of closing)
Interest Rate: 2%
Interest Accrual: Interest shall start to accrue upon Closing
Term: 35 years
Repayment Terms: Payments will be made annually following completion of
Borrower's full annual audit Contingent on surplus cash flow
Balloon payment at maturity
Collateral and Priority: Second position Trust Deed on the Property, subordinate to
primary lender
Conditions: Standard loan conditions approved by City Attorney's Office
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