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Proposed Resolution - 1/12/2021REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. R-1-2021 Wasatch Community Gardens Multi-Family Housing RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY APPROVING THE TERM SHEET FOR A LOAN TO WASATCH COMMUNITY GARDENS FOR AN AFFORDABLE HOUSING DEVELOPMENT PROJECT LOCATED AT APPROXIMATELY 633 EAST 800 SOUTH WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) was created to transact the business and exercise the powers provided for in the Utah Community Reinvestment Agency Act. WHEREAS, in the FY 2020 budget, the Salt Lake City Council (“Council”) allocated $2,590,000 in Funding Our Future revenues to the RDA to be provided as loans for the development of affordable housing. WHEREAS, pursuant to legislative intent provided by the Council when the FY 2020 budget was adopted, the Council established a housing trust fund within the RDA and any application that comes to Salt Lake City will be handled by the RDA in a manner that is consistent with the current rules and purposes guiding the Salt Lake City Housing Trust Fund and the Housing Trust Fund Advisory Board as established by Salt Lake City code Chapter 2.80. WHEREAS, Wasatch Community Gardens (the “Developer”) will construct an affordable housing development which consists of the new construction of a two-story structure with approximately 8 residential units that are deed restricted as affordable housing for 50-years (the “Project”) on 0.44 acres of property located at approximately 633 East 800 South (the “Property”). WHEREAS, the Developer has applied for a loan from the RDA to assist with construction costs for development of the Project. WHEREAS, on December 2, 2020, the Housing Trust Fund Advisory Board (“HTFAB”) reviewed the loan application. WHEREAS, the RDA staff recommends the attached set of terms (the “Term Sheet”) for a loan to the Developer, as borrower, for the Project. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of Salt Lake City (the “Board”) that it approves the loan outlined in the Term Sheet attached hereto, subject to revisions that do not materially affect the rights and obligations of the RDA hereunder. The Board authorizes the Executive Director to negotiate and execute the loan agreement 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. 2020-5571 Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this 12th day of January, 2021. _________________________________ Amy Fowler, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Kimberly K. Chytraus Date:____________________________ The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. ________________________________ Erin Mendenhall, Executive Director Attest: ________________________ City Recorder December 23, 2020 EXHIBIT A: APPROVED LOAN TERM SHEET Wasatch Community Gardens Multi-Family Housing BORROWER Wasatch Community Gardens PROPERTY 0.44 acres of land located at approximately 633 East 800 South PROJECT DESCRIPTION & AFFORDABILITY The project consists of the new construction of a two-story apartment building with eight (8) residential units that will be deed restricted for 50 years as follows: • 70% AMI rent and income limits PROPOSED LOAN TERMS • Amount: $250,000 • Interest Rate: Base Rate 3% Qualifying Interest Rate Reductions Transit Proximity* -0.25% Geographic Distribution** -0.50% Final Interest Rate 2.25% • Term: 30 years • Repayment: Annual repayment in the amount of 75% available cash flow after WCG primary loan payment is made. Payments shall commence the first full calendar year after certificate of occupancy. No payments shall be due, but interest shall accrue on all loan proceeds disbursed, commencing on the date of disbursement. Balloon payment at maturity of any outstanding balance. • Disbursement: Loan proceeds shall be disbursed through construction draws. • Recourse: Nonrecourse • Affordable Housing Covenant: A restriction shall be recorded against the property that requires continued use of the specified units as affordable housing for 50 years. COLLATERAL AND GUARANTEES • Security: A deed of trust on the property that may be subordinated to senior financing. CONDITIONS FOR LOAN CLOSING Prior to loan closing, the Applicant will complete the following: • RDA approves all terms of the loan. • Secure and provide evidence of sufficient sources of project financing. Sources of financing must equal the total project cost. • Obtain all required City approvals. • Execute loan documents (e.g. promissory notes, loan agreements, security documents, and guarantees) as deemed necessary by the RDA and its legal counsel. • Receive approval from the RDA and its legal counsel of all matters pertaining to title, legality of the loan, and the legality, sufficiency, and the form and substance of all documents that are deemed reasonably necessary for the loan transaction. • Provide evidence of insurance in such amounts and with such coverage as deemed necessary by the RDA for the Property. • Procure and deliver to RDA at Closing a satisfactory binding commitment on ALTA extended coverage form for a mortgagee’s (deed of trust) title insurance policy, or equivalent, in the amount of the Loan. • Such other terms as recommended by the RDA’s legal counsel and staff.