Transmittal - 10/18/2022ERIN MENDENHALL DEPARTMENT of COMMUNITY
Mayor and NEIGHBORHOODS
Blake Thomas
Director
SALT LAKE CITY CORPORATION
451 SOUTH STATE STREET, ROOM 404 WWW.SLC.GOV
P.O. BOX 145486, SALT LAKE CITY, UTAH 84114-5486 TEL 801.535.6230 FAX 801.535.6005
CITY COUNCIL TRANSMITTAL
________________________ Date Received: _________________
Lisa Shaffer, Chief Administrative Office Date sent to Council: _________________
______________________________________________________________________________
TO: Salt Lake City Council DATE: August 19, 2022
Dan Dugan, Chair
FROM: Blake Thomas, Director, Department of Community and Neighborhoods (CAN)
__________________________
SUBJECT: Informal Public Benefits Analysis for a tiny home village with ~54 units of
affordable housing in exchange for a below-market 40-year land lease of approximately 8 acres
of vacant City property located at approximately 1850 West Indiana Avenue.
STAFF CONTACT: Tammy Hunsaker, Deputy Director, Community and Neighborhoods
801-535-7244, tammy.hunsaker@slcgov.com
DOCUMENT TYPE: Resolution
RECOMMENDATION: Consideration of the attached resolution allowing the City to enter
into a 40-year below-market ground lease agreement with The Other Side Academy, a Utah
nonprofit corporation, in order to facilitate the construction of a tiny home village with ~54 units
of affordable housing.
BUDGET IMPACT: N/A
BACKGROUND/DISCUSSION: Salt Lake City and the State of Utah are experiencing a
widening housing affordability gap, one of the fundamental causes of homelessness. Resources
at the federal and state level have proven vastly inadequate in addressing the housing crisis. As
such, cities are left to stretch local dollars, implement innovative policy tools, and think outside
of the box with project typologies. Research and experience have overwhelmingly demonstrated
that investment in permanent housing solutions is effective in reducing homelessness. Long-term
housing solutions, particularly solutions that are co-located with supportive services, not only
stabilize lives but have been proven to be more cost effective than emergency shelters and care
facilities.
8/19/2022
8/19/2022
In 2020, the Administration began to explore new, innovative solutions to addressing the
homelessness crisis. At this time, an exploratory partnership was formed between the City and
The Other Side Academy (“TOSA”), a Utah 501(c)3 non-profit organization, to analyze the
feasibility of a tiny home village that provides housing for chronically homeless individuals.
TOSA brings unique experience with operation of “therapeutic communities” that help those
with long histories of addiction and criminal behavior stabilize their lives. As a result of this
exploratory partnership, a tiny home village for individuals experiencing homelessness has been
conceptualized and is proposed to be located on approximately 40 acres of City-owned property
located at 1850 W Indiana Avenue and 1965 West 500 South (the “Property”).
The Other Side Village (“TOSV”) is proposed to be a “recovery housing” model that aligns with
National Alliance for Recovery Residence standards and is contemplated to eventually
encompass the Property. Currently, the Administration and TOSA have narrowed the scope to a
pilot project limited to approximately 8 acres (the “Pilot Site”) to demonstrate the feasibility of
the concept, refer to Exhibit A: Site Map. This initial phase of the project will include
approximately 54 deed-restricted tiny homes, 6 tiny homes for staff, 25 tiny homes to be offered
as nightly rentals, community space, commercial space for social enterprise endeavors, and space
for on-site services (the “Pilot Project”).
The Administration and TOSA have negotiated project terms that include a below-market land
lease of $1.00 per year for 40 years to assist in the financial viability of the Pilot Project.
Pursuant to State law, the City shall first hold a public hearing followed by authorization by the
City Council in order to execute a below-market land lease. Highlights of the Pilot Project are as
follows, with additional detail included in Exhibit B: Resolution and Term Sheet and Exhibit C:
Informal Public Benefits Analysis.
I.Project Overview
The Pilot Project is proposed to include the following:
•At least 60 tiny homes to be used as permanent housing
§A minimum of 54 units, or 90% of the total permanent housing units,
shall be deed-restricted as affordable
§Up to 6 units, or 10% of the total permanent housing units, may be used
as staff living quarters
•Up to 25 additional tiny homes may be used as a Community Inn offered as
nightly rentals to generate income for TOSV operations
•A ~ 2,000 square foot Neighborhood Center to house clubhouse type uses for
TOSV residents
•A ~10,000 square foot Social Enterprise Building to house social enterprise
endeavors that generate income for the TOSV operations
•A ~12,000 square foot Community Center building to house multi-purpose
space, and supportive services for TOSV residents including a medical clinic, a
mental health clinic, a social services clinic, administrative offices, and a
security office
•Utility service and related infrastructure; roads and curb/gutter
II.Recovery Housing Model
Utilizing the recovery housing model, TOSA plans to target individuals who are
considered chronically homeless, generally defined as individuals experiencing
homelessness for at least a year, or repeatedly, and struggling with a disabling condition
such as a serious mental illness, substance use disorder, or physical disability. Similar to
permanent supportive housing, recovery housing values independent living and voluntary
clinical services. Where they differ is that recovery housing requires an alcohol and drug-
free living environment and may require residents to participate in recovery activities as a
condition for residency. This social model of recovery helps individuals relearn how to
organize their lives, interact with others, and participate in community-based recovery
activities.
III.Affordable Housing & Tenant Selection
An overview of the affordable housing and tenant selection terms are as follows:
•Units shall primarily be available to persons or families that meet HUD’s
definition of chronically homeless. If there are units available and no applications
from chronically homeless individuals, TOSA may lease units to vulnerable
homeless individuals.
•An admission preference may be established for individuals with a commitment
to sobriety.
•All applicants shall go through the coordinated entry process used by the Salt
Lake Valley Coalition to End Homelessness.
•Tenants may be required to have employment or another source of income, such
as social security disability or a tenant-based voucher, to be able to afford to pay
rent.
•Maximum rents shall be set for individuals and households at 25% of the area
median income (“AMI”), adjusted annually for household size. For a single
person based on 2022 HUD income limits, this would equate to $448 maximum
monthly rent including basic utilities.
•Maximum incomes shall be set for individuals and households at 30% of the AMI
and below. Tenants must meet this income threshold, in addition to meeting
homelessness criteria, upon entering into a lease. This equates to a maximum
annual income of $21,510 for a single person based on 2022 HUD income limits.
Tenants will only be required to meet this income threshold upon entering into a
lease and may increasing their income subsequently.
•TOSA intents to provide leases on a month-to-month basis, however, tenants may
live in their homes as long as they meet the basic obligations of tenancy without a
time limitation.
IV.Supportive Services & Programming
The Pilot Project will include supportive services to assist homeless persons in
transitioning from homelessness, and to enable tenants to live as independently as
possible. The scope and scale of on-site health and case-management services is yet to be
finalized, as TOSA is working on building partnerships with service providers - refer to
Exhibit D: Service Providers Letters of Interest for additional information. In addition to
on-site services, TOSA plans to coordinate access to off-site specialty services that are
tailored to unique needs that residents may have. In addition to health-related services,
the Pilot Project will include programming to develop social and life-skills. Employment
training will be available through the on-site social enterprise businesses.
V.Site & Zoning
The Property is currently zoned PL - Public Lands. The applicant is requesting to change
the zoning of the Property to FB-UN2 (Form Based Urban Neighborhood District). The
Salt Lake City Planning Commission recommended approval of the zoning change on
October 27, 2021, with the request currently being considered by the City Council
through a transmittal from the Planning Division. The Property is vacant and will require
significant infrastructure and site improvements to facilitate the Pilot Project.
VI.Environmental Remediation
Parts of the Property were previously used as a landfill. Environmental testing indicates
that various levels of mitigation efforts need to occur in order for the Property to be safe
for residential development. The extent of mitigation will depend on the placement of
land uses and the utilization of environmental controls. The Department of Sustainability
is involved with the identification, sampling, and site investigation process and will work
with State and other cognizant agencies to ensure that requirements are met for site clean-
up, remediation, and mitigation.
VII.Development Viability
TOSA estimates that the Pilot Project will cost an estimated $13.8 million, excluding
land costs, as follows:
TOSV PILOT PHASE - CAPITAL COSTS
Environmental Remediation $232,500
Permit / Fees $400,000
Civil Work $1,045,440
Tiny Home Construction $4,350,000
Welcome Neighborhood Homes $875,000
Neighborhood Center $441,000
Community Center / Clinic $3,146,400
Social Enterprise Building $2,300,000
Landscaping $320,000
Architectural Fees $666,744
Total $13,777,084
Source: TOSA, dated 4/29/22 as provided to City staff on 6/24/22
Note: Excludes land costs
The majority of costs will be covered by in-kind work and donations. According to
TOSA, the fund-raising status is as follows as of July 6, 2022:
•Almost $2.2 million in cash has been committed and received
•Another $3.1 in cash has been pledged
•The remaining balance is either committed or expected to be received through in-
kind assets and services - Refer to Exhibit E: In Kind Letters for additional
information
The Administration will ensure that TOSA has adequate funds to move the project
forward prior to closing on the land lease. If fundraising does not meet expectations or
there are gaps in the receipt of charitable funds, Joseph Grenny, TOSA’s Chairman of the
Board, and his wife have made a personal commitment of up to $5,000,000 to cover
shortfalls - refer to Exhibit F: Construction Commitment Letter for additional
information.
VIII.Operating Viability & Social Enterprises
Rent revenues are only estimated to cover about 10% of the annual operating costs – refer
to Exhibit G: Pro Forma. The remaining revenue required to successfully operate the
Pilot Project will be generated by social enterprise businesses that will be located on-site.
These businesses are anticipated to be a motel (Community Inn), thrift store, and cookie-
manufacturing enterprise. In addition to generating revenue to cover operating costs,
these businesses will provide critical job training opportunities for residents. The
Community Inn will include 25 stand-alone tiny homes offered as nightly rentals for the
general public, thereby providing lodging opportunities for Pilot Project visitors and
volunteers. While these businesses are yet to be established, TOSA has considerable
experience with social enterprise businesses and has partnered with the founder of
Lofthouse Cookies to advise on the cookie manufacturing business. If revues fall short,
TOSA has committed to covering up to $1,000,000 annually to cover operating expenses
–refer to Exhibit H: Operating Commitment Letter.
PUBLIC PROCESS: Under Utah law, after first holding a public hearing, a municipality may
“authorize municipal services or other nonmonetary assistance to be provided to a nonprofit
entity, whether or not the municipality receives consideration in return.” Utah Code §10-8-
2(1)(a)(v). Because TOSA is a nonprofit entity, the City may waive the fair-market rental rates it
would ordinarily be required to receive for use of City-owned property so long as the municipal
legislative body first holds a public hearing regarding the waiver and authorizes the
Administration to enter into the land lease for the below-market lease rates. While a formal
public benefits analysis is not required pursuant to Utah law, an informal public benefits analysis
is provided as Exhibit C: Informal Public Benefits Analysis to provide an analysis of the public
benefits to be received in exchange for a waiver of the fair-market rents for a land lease.
EXHIBITS:
A.Site Map
B.Resolution and Term Sheet
C.Informal Public Benefits Analysis
D.Service Provider Letters of Interest
E.In Kind Letters
F.Construction Commitment Letter
G.Pro Forma
H.Operating Commitment Letter
EXHIBIT A: SITE MAP
Note: Pilot Site is defined by
the smaller blue boundary.
Site plan is subject to change.
RESOLUTION NO. _____ OF 2022
(Authorizing the Lease Rate and Term for The Other Side Village Pilot Project
located at 1850 West Indiana Avenue, Salt Lake City)
WHEREAS, The Other Side Academy (“TOSA”), a Utah nonprofit corporation, desires
to develop a community of small homes, community space, support services, and commercial
uses to provide affordable housing and life skill development for the City’s unsheltered
population, to be known as The Other Side Village (the “Project”); and
WHEREAS, the first phase of the Project (the “Pilot Project”) will include affordable
housing, supportive services, community space, social enterprise buildings, and additional tiny
homes to be offered as nightly rentals, as further described on the attached term sheet (the “Term
Sheet”); and
WHEREAS, TOSA and the City desire to locate the Pilot Project on approximately
8 acres of the real property owned by the City and located at 1850 West Indiana Avenue, Salt
Lake City (the “Pilot Site”);
WHEREAS, the primary beneficiaries of the construction of the Pilot Project will be
individuals experiencing chronic homelessness who are transitioning into housing as part of the
City, County, and State’s efforts to address the homelessness and housing crisis in Salt Lake
City; and
WHEREAS, a below-market ground lease to TOSA will facilitate the development of the
Pilot Project, which would otherwise be financially unfeasible; and
WHEREAS, the City is willing to provide assistance to TOSA in the form of a ground
lease rate for the Pilot Site in the amount of $1.00 per year for a term of 40 years, so long as the
conditions of the ground lease between City and TOSA, or another nonprofit approved by City,
are met (the “Lease Fee Waiver”); and
EXHIBIT B: RESOLUTION & TERM SHEET
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WHEREAS, Utah Code Section 10-8-2(1)(a)(i) allows public entities to provide
nonmonetary assistance and waive fees to and for nonprofit entities after a public hearing; and
WHEREAS, though Utah Code Section 10-8-2 does not require a study for such waiver or
assistance, in this case the Administration voluntarily performed an analysis of the nonmonetary
assistance to the nonprofit corporation (the “Analysis”); and
WHEREAS, the City Council has conducted a public hearing relating to the foregoing, in
satisfaction of the requirements of Utah Code Section 10-8-2; and
WHEREAS, the Council has reviewed the Analysis, and has fully considered the
conclusions set forth therein, and all comments made during the public hearing;
NOW, THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah, as
follows:
1.The City Council hereby adopts the conclusions set forth in the Analysis, and
hereby finds and determines that, for all the reasons set forth in the Analysis, the Lease Fee Waiver
is appropriate under these circumstances.
2.The terms outlined on the Term Sheet represent the approved terms for the Pilot
Project, and the City Council hereby authorizes the City administration to negotiate the final terms
consistent with the Term Sheet or more beneficial to the City, and execute the ground lease and
any other relevant documents consistent with this Resolution and incorporating such other terms
and agreements as recommended by the City Attorney’s office.
Passed by the City Council of Salt Lake City, Utah, on _________, 2022.
SALT LAKE CITY COUNCIL
By: ______________________
CHAIRPERSON
ATTEST:
____________________________
CITY RECORDER
APPROVED AS TO FORM:
Salt Lake City Attorney’s Office
By: ___________________________
Kimberly Chytraus, Senior City Attorney
EXHIBIT TO RESOLUTION
The Other Side Village Pilot Project Term Sheet
AFFORDABLE HOUSING
I.Unit Requirements
TOSA shall develop and maintain the Pilot Site to include a minimum of 60 tiny home units. Of
the total units:
1.Up to 10% may be unrestricted in rent and occupancy for utilization by staff.
2.A minimum of 90% shall be available and affordable to individuals or families meeting
the HUD-adopted definition of chronically homeless and homeless, with a priority on
chronically homeless. These units shall be designated as the “Affordable Units”.
II.Occupancy Requirements
TOSA must place into the Affordable Units individuals and families that meet the HUD-adopted
definition of chronically homeless and homeless, prioritized as follows:
1.TOSA shall first make the units available to persons or families that meet HUD’s
definition of chronically homeless as defined in section 401(2)(A) of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11360(9)). In general, to meet this definition,
a chronically homeless person or family’s head of household must be sleeping in a place
not meant for human habitation or living in a homeless emergency shelter or safe haven,
have a disabling condition, as defined in section 401(9) of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11360(9)), and
i.be continuously homeless for a year or more, OR
ii.have had at least four episodes of homelessness in the past three
years as long as the combined occasions equal at least 12 months.
2.If there are units available and no applications from chronically homeless individuals,
TOSA may lease units to vulnerable homeless individuals, as “homeless” is then-
currently defined by HUD, provided that applicants who have been homeless for the
longest periods of time immediately preceding their application are given priority over
applicants who have been homeless for lesser periods of time.
III.Tenant Eligibility
To determine whether a tenant is eligible, TOSA must verify that the prospective tenant meets
HUD’s definition of chronically homeless or homeless and whose incomes have an aggregate
annual income for all occupants that is 30% and below of the area median income for Salt Lake
City Utah, HUD Metro FMR Area as adjusted for household size.
IV.Tenant Selection
1.The Affordable Units shall be made available pursuant to federal and state fair housing
laws and HUD guidance, including the following:
i.TOSA may establish admission preferences, including a preference for
individuals with a commitment to sobriety, but may not deny housing to
protected classes pursuant to federal and state fair housing laws.
ii.TOSA may regulate the occupancy of units based on unit size but may
not unreasonably limit the ability of families with children to obtain
housing.
2.TOSA must develop and make public written tenant selection policies and procedures
that include descriptions of the eligibility requirements. The Tenant Selection Plan must
include evidence of a contractual partnership with service provider(s) and whether there
is a restriction or preference in the admission of tenants. The restriction or preference
must cite the supporting documentation to ensure inclusion and nondiscrimination in the
selection of tenants.
3. TOSA will ensure that all applicants for housing in the project will go through the
coordinated entry process used by the Salt Lake Valley Coalition to End Homelessness to
ensure coordination and efficiency with the current homelessness services system.
4. TOSA also will enter any new resident into the Homeless Management Information
System (“HMIS”) coordinated entry system.
5. Preference will be given to Salt Lake City residents for placement into the development.
V. Maximum Rents
1. The annualized rent (which includes all required housing costs such as utilities and other
charges uniformly assessed to all Affordable Units, other than charges for optional
services) per unit shall be set forth in a written lease and shall not exceed, for the term of
the lease, 30% of the annual income limit for individuals and households with a
maximum AMI of 25% AMI for the applicable Unit Type (i.e. studio or bedroom
number).
VI. Tenant Lease Requirements
1. Leases may be provided on a month-to-month basis, with the intent that tenants may live
in their homes as long as they meet the basic obligations of tenancy without a time
limitation.
2. TOSA shall comply with local, state, and federal laws, including the federal fair housing
act, when approving applicants as tenants, evicting, terminating a lease, or providing a
notice to quit.
3. TOSA must incorporate specific provisions into the lease agreement for each eligible
tenant of the Affordable Units that establish the tenant's obligation to provide accurate
information regarding household income and composition.
VII. Record-Keeping and Reporting Requirements
1. Upon execution of a lease, TOSA must verify and document the tenant’s annual (gross)
income.
2. TOSA must re-examine the income and household composition of tenants on an annual
basis.
3. TOSA must submit annual compliance reports to the City. These reports shall document
the occupancy and show whether TOSA is in compliance with tenant eligibility
requirements.
4. TOSA must provide the City a written certification of compliance when the project
reaches initial compliance and then with each annual report.
SUPPORTIVE SERVICES
The pilot project will include supportive services to assist homeless persons in transitioning from
homelessness, and to promote the provision of supportive housing to enable homeless persons to live as
independently as possible. Supportive services will include on-site case coordination or management that
ensures tenants’ access to a wide variety of services and on-site location of services provided by
professional service providers as evidenced through an agreement. Services shall be made available on a
flexible and voluntary basis and may address the following: mental health, substance and alcohol use,
health, case management, independent living skills, employment, peer support, and community
involvement and support. Physical and mental health providers shall have the appropriate licenses, which
other services may be provided by those with appropriate training and following industry best practices.
PROGRAMMING
The pilot project will include programming that includes peer mentoring and the life skill development.
This will include opportunities for residents to obtain employment experience by working in a social
enterprise to the best of their ability. While participation in these employment activities shall be
encouraged, it is not a condition of living in the pilot project.
TERM
The term of the lease will be forty (40) years with an option to renew the lease within the last year of the
lease subject to approval by the Salt Lake City Council for the reduced lease rate.
LEASE RATE
The lease rate for the property will be $1 per year for the term of the lease.
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MEMORANDUM
TO: City Council Members
SUBJECT: Informal Analysis of Public Benefits Provided by The Other Side Village’s Small
Home Project in Exchange for a Below-market Ground Lease of Property
INTRODUCTION
Salt Lake City (the “City”) owns real property located at approximately 1850 West Indiana
Avenue, Salt Lake City, consisting of approximately 45 acres (the “City Property”). The Other
Side Academy, a Utah nonprofit corporation (“TOSA”) desires to develop a community of small
homes, community space, support services, and commercial uses to provide affordable housing
and life skill development for the City’s unsheltered population (the “Project”). This informal
public benefits analysis is only for the first phase of the Project (the “Pilot Project”), which is
intended to be a lease of approximately 8 acres of the City Property (the “Pilot Site”) and
development of approximately of 54 tiny homes that shall be deed restricted as affordable and
co-located with supportive services and social enterprise uses.
While the City’s primary interest in development of the Pilot Site is affordable housing and
supportive services, TOSA intends to develop other uses including community space, social
enterprise buildings, and additional tiny homes to be offered as nightly rentals. Prior to
development, the Pilot Site may require environmental remediation and/or mitigation to allow
for residential uses. TOSA has agreed to pay for all costs to remediate the Pilot Site and to
develop and operate the Pilot Project. Any request to lease the remainder of the City Property for
less than fair market value will be submitted to the City Council at a later time for a
supplemental public benefit analysis.
In exchange for the remediation, operation, and management of the Pilot Project, TOSA is
seeking a discounted lease rate for a 40-year ground lease of the Pilot Site (the “Ground Lease”).
Though a formal analysis of the benefits to be received by the City in exchange for the benefit
provided to TOSA is not required under Utah Code ⸹10-8-2, this informal analysis has been
prepared to help assist the City Council’s evaluation of the recommended action.
LEGAL FRAMEWORK
Under Utah law, after first holding a public hearing, a municipality may “authorize municipal
services or other nonmonetary assistance to be provided to a nonprofit entity, whether or not the
municipality receives consideration in return.” Utah Code §10-8-2(1)(a)(v). Because TOSA is a
nonprofit entity, the City may waive the fair-market rental rates it would ordinarily be required to
receive for use of the City Property so long as the municipal legislative body first holds a public
hearing regarding the waiver and authorizes the Administration to enter into the Ground Lease at
the below-market lease rate.
Utah Code §10-8-2(3) outlines the purposes for which a municipal body may appropriate funds
as “for any purpose that, in the judgment of the municipal legislative body, provides for the
safety, health, prosperity, moral well-being, peace, order, comfort, or convenience of the
EXHIBIT C: INFORMAL PUBLIC BENEFITS ANALYSIS
2
inhabitants of the municipality.” The factors that must be considered in determining the propriety
of such an appropriation or waiver if made to any type of entity or individual other than a
nonprofit entity as set forth under Utah Code §10-8-2(3)(e). Here, it may be helpful to consider
the same factors:
(1)The specific benefits (including intangible benefits) to be received by the City in
return for the arrangement;
(2)The City’s purpose in making the appropriation, including an analysis of how the
safety, health, prosperity, moral well-being, peace, order, comfort or convenience of the
residents of Salt Lake City will be enhanced; and
(3)Whether the appropriation is “necessary and appropriate” to accomplish the
reasonable goals and objectives of the City in the area of economic development, job
creation, affordable housing, blight elimination, resource center development, job
preservation, the preservation of historic structures and property, and any other public
purpose.
BACKGROUND OF THE PROJECT AND CITY PROPERTY
As an overview of the entire Project, to be named The Other Side Village, TOSA anticipates
developing a community that will be a secure and self-reliant neighborhood designed to serve the
most vulnerable of the City’s unsheltered individuals, particularly those that meet the definition
of chronically homeless. The home sizes may range from approximately 280-400 square feet.
The Pilot Project is anticipated to have onsite services similar to those provided with permanent
supportive housing, such as onsite medical, dental, and mental health services. In addition,
TOSA is proposing that the community will have a garden and gathering spaces to serve
residents. TOSA plans to implement social enterprises so that the Project can support itself
financially and allow residents to gain employment experience.
TOSA’s purpose for the Project is to create a community for unsheltered residents of Salt Lake
City following the recovery housing model. Similar to permanent supportive housing, recovery
housing values independent living and voluntary clinical services. Where they differ is that
recovery housing requires an alcohol and drug-free living environment and may require residents
to participate in recovery activities as a condition for residency. TOSA’s intent is to instill a peer
accountability model to keep the community safe, clean, and orderly, to run social enterprises
within the non-profit so that the organization can eventually be operationally self-sufficient and
not be dependent on the government or donors.
The Administration worked with TOSA to identify a parcel suitable for development of the
Project, which ideally requires at least 30 acres, access to public transportation, and reasonable
proximity to services. There are very few parcels of sufficient size and geography available
within Salt Lake City boundaries. The City Property was identified as one that will allow the
community to be established and potentially expand as a diverse type of deeply affordable
housing and accessible services.
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The City Property was historically used as a landfill between 1923 and 1962. It is currently
vacant property and requires significant environmental remediation/mitigation and cleanup of
refuse prior to development of residential uses. TOSA is working with the City’s Sustainability
Department and the State of Utah to determine the scope and scale of the efforts, and TOSA has
agreed to pay for the entire cost and to accept full liability for the costs and claims related to the
remediation/mitigation.
Before committing to lease the entire City Property to TOSA for the Project, the City and TOSA
agreed to phase the Project, starting with the Pilot Project using the Pilot Site for the
development of a minimum of 60 tiny homes to be utilized as housing (the “Housing Units”). Of
the anticipated 60 Housing Units, a minimum of 54, or 90% of the total Housing Units, will be
available and affordable to individuals and/or households that align with fair housing occupancy
standards who have experienced homelessness and have incomes at or below 30% of Salt Lake
County’s average median income (“AMI”), the (“Affordable Units”). The remaining 6, or up to
10% of the total Housing Units, will be available for Pilot Project staff to live on-site to help
provide 24-hour staff coverage. In addition to the Housing Units, TOSA plans to construct and
utilize up to 25 tiny homes as nightly rentals (the “Community Inn”). The Community Inn will
also function as a social enterprise to provide job training and revenue for TOSV operations.
TOSA shall construct and operate supportive services for the residents to assist homeless persons
in transitioning from homelessness, and to enable tenants to live as independently as possible.
Finally, TOSA intends to construct community space and social enterprise buildings to provide
job training and revenue for the Pilot Project’s operations. The Ground Lease will include the
affordability requirements for the Pilot Project, as well as other requirements.
The Pilot Project is anticipated to include development of the buildings, Housing Units, related
infrastructure (curb and gutter), and will also include the related amenities. TOSA desires to
eventually develop the entire City Property for the Project and anticipates submitting a separate
request to lease the additional City Property after meeting certain metrics, including occupancy
and confirmation that the Pilot Project does not have a negative impact on the surrounding
neighborhood. If TOSA requests to lease the remaining City Property, it will accept full
responsibility for the costs and liability to remediate and/or mitigate the additional City Property
to standards for residential development.
TOSA is requesting that the City approve the Ground Lease of the Pilot Site in exchange for the
public benefits TOSA will be providing with the homeless services, environmental remediation,
development, and operation of the Pilot Project. The Council has been asked to consider a
zoning amendment for the City Property concurrent with consideration of the proposed below-
market lease rate to allow development of the Pilot Project.
TOSA intends to construct and operate the Pilot Project through donations from foundations,
corporations, and private citizens. Eventually, TOSA hopes to obtain self-sufficiency through
revenues generated from social enterprises, including the Community Inn.
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TERMS OF THE GROUND LEASE AND PUBLIC BENEFITS PROVIDED
I.Terms of Ground Lease; Costs to the City
Under the proposed Ground Lease between the City and TOSA, the City will maintain
ownership of the Pilot Site and the Pilot Project will be owned and developed by TOSA, or a
non-profit entity approved by the City. The Ground Lease will be structured to require a $1.00
dollar per year payment over the 40-year lease term. The Ground Lease will require that the Pilot
Site will be used solely for the development and operation of the small home community.
The 2022 assessed value of the City Property is approximately $4.20 per square foot, which
equates to about $8,230,000 for the City Property or $1,460,000 for the Pilot Site property,
excluding remediation, mitigation, and cleanup costs. Remediation and mitigation of the Pilot
Site acres of City Property will allow it to be utilized for residential purposes. The below-market
lease terms are being offered as the City’s contribution to providing solutions for homeless
services. The City will not have any responsibility for environmental remediation, construction,
operation, or maintenance of the Pilot Site and Pilot Project.
II.Public Benefits Provided by the Pilot Project.
The Pilot Project as planned provides numerous benefits to the City and promotes the City’s
reasonable goals of objectives to increase the availability of affordable housing, job training, and
supporting the City’s unsheltered population on a path to secure housing. A wide array of
affordable housing options is needed to create a path from shelter to housing. By the City
maintaining ownership of the Pilot Site but leasing it to TOSA, the City will facilitate the
development of housing and services for underserved populations in our City that need it most.
Residents of the Pilot Project will have the opportunity to work with case managers and may
receive support in the following areas: sober living; tenant responsibilities and housing stability;
access to benefits and entitlements; access to healthcare providers; access to behavioral health
services; access to education and employment supports; access to mental health services and
medications; information and referral to community resources (including but not limited to food
pantries, legal services, faith-based organizations, additional housing options); and other relevant
services and supports. Regular engagement in case management services will assist tenants in
developing and fine-tuning life skills. Further, the on-site social enterprise endeavors will
provide job skill development for residents of the Pilot Project.
The Pilot Project will help lower the cost of public care of unsheltered individuals by providing
housing for people who likely have a history of utilizing emergency services within Salt Lake
City. Once housed, residents will free up shelter beds and services for others in the community to
access and help alleviate capacity restraints at the homeless resource centers. In addition,
accessible housing may alleviate encampments within the city that require tremendous City and
County resources to maintain the health and safety of the unsheltered individuals and the public.
Some residences will be earmarked as deeply affordable recovery housing to provide needed
assistance to the most vulnerable population in our community. These are greatly needed
community benefits.
5
The unsheltered population typically have limited access to healthcare and may rely on
emergency services for care. Connecting residents to accessible medical, dental, and mental
health care within the community will allow for preventative care, reducing the need for
emergency room visits and hopefully providing better health outcomes. Alleviating the current
burden on emergency medical services and hospitals to provide continuing care for unsheltered
individuals will benefit both the individual users and the public.
III.Salt Lake City’s Purposes and Enhancing the Quality of Life for Residents.
Through the services mentioned above, the Pilot Project aims to serve formerly unsheltered
individuals through housing, healthcare, social enterprise, and community. By helping serve the
needs of these individuals, it is anticipated that the impact to the City can be measured through
improvement of life skills and health outcomes, reduction in area criminal activity, and new or
increased employment of clients served by the Pilot Project.
The neighborhood surrounding the Pilot Project may also benefit by activation of the currently
vacant and former landfill space. Increasing the number of residences in the area may encourage
additional investments in the neighborhood such as grocery and other retail stores, recreation,
and transit. In addition, TOSA is committed to ensuring that the Pilot Project does not become a
strain on the City’s public safety infrastructure and does not negatively impact the surrounding
neighborhoods.
IV.Accomplishing Salt Lake City’s Goals.
The construction and operation of the Pilot Project is in line with the City’s Housing Plan,
Growing SLC: a Five Year Housing Plan, 2018-2022. Growing SLC includes solutions to
address housing for incomes below 40% AMI providing housing and services to the City’s most
vulnerable populations. Growing SLC strongly encourages supporting residents living in poverty
and making $20,000 per year or less. To do that, the plan sets the following actions items for the
City:
(1)Lead in the development of new affordable housing types, as well as construction
methods that incorporate innovative solutions to issues of form, function, and maintenance.
(2)Offer incentives to developers of affordable housing such as land discounts and
primary financing options.
(3)Work with housing partners and government entities to continue supporting and
enhancing service models that meet the needs of the City’s most vulnerable households.
The plan also adopts the City Council’s 2017 guiding principles for evaluating and appropriating
City funds for housing. The priorities relevant to the Pilot Project are as follows:
(1)Create a net increase in affordable housing units while: (i) Avoiding displacement
of existing affordable housing to the extent possible, and (ii) Retaining and expanding the
diversity of AMI and innovative housing types.
(2)Create a spectrum of housing options for people of all backgrounds and incomes.
6
(3)Include collaboration with community and private sector partners to enable
opportunities for in kind contributions, creative financing, and service delivery models.
(4)Utilize city-owned land whenever possible.
(5)Enable residents’ success to maintain housing through partnerships with providers
of supportive services.
(6)Identify tools to increase and diversify the total housing supply including housing
types that the private market does not sufficiently provide such as … innovative housing
types.
The Pilot Project accomplishes several of the City’s goals and priorities by providing
predictable, affordable housing and supports needs of its residents.
CONCLUSION
The development of the Pilot Project by TOSA will be a benefit to residents of the City.
Providing a below-market Ground Lease for the Pilot Site is an appropriate use of City resources
to achieve the City’s “reasonable goals and objectives of the City in the area of economic
development, job creation, affordable housing, blight elimination, resource center development,
job preservation, the preservation of historic structures and property.” Further, the Pilot Project
helps to achieve the City’s goals by creating a net increase in affordable housing stock while
providing long-term housing services for very low-income residents who have experienced
homelessness.
4460 S Highland Dr.
Salt Lake City, UT 84124
888.949.4864
ValleyCares.com
July 1, 2022
The Other Side Village
667 East 100 South
Salt Lake City, UT 84102
To Whom it May Concern:
It is my pleasure to provide this letter of support on behalf of Valley Behavioral Health,
Inc (Valley). Valley has worked closely with The Other Side Village leadership team to
create the Welcome Neighborhood which will temporarily house and prepare individuals
experiencing chronic homelessness to transition from the street to Village life and
connect them to resources and services needed, including mental health treatment,
supportive housing, medication management, and targeted case management.
Valley collaborates on the Salt Lake Valley Coalition to End Homelessness and the
Housing Core Function Group. In addition, Valley’s homeless outreach program,
Storefront, works closely with the three Homeless Resource Centers and the Midvale
Family Shelter by providing regular outreach and connecting those staying at these
centers to various community housing programs.
We support The Other Side Village initiative and plan to provide onsite mental health
services to the residents of the Village on a regular basis when it is operational. We look
forward to continuing our combined efforts to make homelessness rare, brief, and non-
recurring in our capital city by lifting individuals out of chronic homelessness through
community and connection.
Sincerely,
Preston L. Cochrane
Valley Behavioral Health, Inc
Vice President of Housing & Support Services
EXHIBIT D: SERVICE PROVIDERS LETTERS OF INTEREST
June 17, 2022
Mr. Tim Stay
The Other Side Village
Executive Director
Dear Mr. Stay,
On behalf of Fourth Street Clinic, I am pleased to provide this letter of interest for The Other
Side Village, a.k.a Tiny Village, as you move forward in your planning and approval phase to
begin construction. Fourth Street Clinic is committed to providing high quality integrated health
care services to those in our community experiencing homelessness. We believe that housing is
a critical component of achieving and maintaining good health, and we are pleased to be
included in the conversation on how we can partner to support those experiencing homelessness
as they transition into housing.
We look forward to continuing conversations as you embark on the planning process to discuss
expand funding opportunities, defining and understanding the scope and timelines of the project,
and engaging with additional partners to support our work. As community partners, we are
keenly aware that partnerships are essential to extend and strengthen vital programs that ensure
the health and well-being of those experiencing homelessness.
Located in downtown Salt Lake City since 1988, Fourth Street Clinic has been the primary
provider of health care services in Salt Lake County and its surrounding area. In 2021, 4,672
individuals received care at our downtown clinic as well as through our Medical Street Team and
our Mobile Clinic. Fourth Street Clinic stands ready to look at ways in which our organizations
can work collaboratively to maximize resources and to improve the health care for our homeless
community.
Fourth Street Clinic values the partnership of our organizations and applauds the work of The
Other Side Village to address the many challenges of homelessness. I look forward to ongoing
discussions and clarity on the Tiny Village project as plans are solidified. I can be reached
directly at 801-364-0058 ext 1383 or janida@fourthstreetclinic.org.
Sincerely,
Janida Emerson
CEO
July 3, 2022
Salt Lake City Council
Attn: Tim Stay
667 E 100 S
Salt Lake City, UT 84120
RE: THE OTHER SIDE VILLAGE
Dear City Council:
The purpose of this letter is to document the commitment of Sego Homes to help with the
funding and construction of the The Other Side Village. Sego Homes, along with their
vendors and trade partners, has provided support to several charitable organizations over
the past few years such as Operation Underground Railroad to whom we donated
$121,000 and Hopes for Hope to whom we donated $101,000. We anticipate providing
a similar level of support to The Other Side Village by building and donating several of the
tiny homes proposed for this community.
We respectfully request that the City Council approve this proposed community and
facilitate the successful development of this innovative and much needed community.
Sincerely,
SEGO HOMES
Wayne H. Corbridge
CEO
wayne@segohomes.com
(801) 362-6228
EXHIBIT E: IN KIND LETTERS
June 24, 2022
ATTN: Mr. Tim Stay
The Other Side Academy
667 E 100 S
Salt Lake City, UT 84102
Dear Tim,
As you know, HomeAid is a 501(c)3 organization with 32 years experience in partnering with the
homebuilding industry to provide discounted and in-kind construction and renovation services
to organizations serving people experiencing homelessness.
The HomeAid Utah affiliate has been in operation over 3 years and has enjoyed tremendous
support in our fight to help alleviate human suffering within our community. We are supported
by some of the largest homebuilders and industry associates locally, regionally and nationally.
We are aware of and eager to participate in your new tiny home community project in Salt Lake
City, The Other Side Village. Our sister affiliate, HomeAid Austin, has been very successful in
their efforts at the Community First Village in Austin, Texas and will have completed 36
tiny-homes by the end of 2023.
HomeAid Utah anticipates we can facilitate the construction of approximately 15-20 tiny homes,
possibly an entire sub-village within the initial phase of the community. It is our goal that once
completed and additional phases become available, we can be an ongoing contributor over the
duration of the total project buildout facilitating the construction of several more homes.
We are very much looking forward to participating with you on this worthy initiative.
Sincerely,
Don Adamson
Executive Director, HomeAid Utah
Cc: Nate Shipp, Affiliate President, HomeAid Utah
t 801.595.6400 e4harchitecture.com |833 South 200 East, Salt Lake City, UT 84111
July 1, 2022
The Other Side Village
Attn: Tim Stay 667 E 100 S Salt Lake City, UT 84102
Re: Support for the Other Side Village Project
Dear Tim,
At your request, I am writing to summarize our support to date for the Other Side Village project. Our
architectural firm, E4H Environments for Health Architecture, is dedicated to improving the wellness of
our communities including physical health, mental health, equality, and basic human needs. The
charitable wing of our organization, E4Hcares, has been providing full architectural services for the
Other Side Village project for well over a year. Our Salt Lake firm partner, David Dixon, has orchestrated
the development of the site plan, buildings, and homes by leading a host of other design professionals,
schools, and individuals in the planning of the Village while he fills in the gaps.
To date, David has contributed well over 400 hours to this effort. At our standard billing rate of
$250/hour for our firm partners, this would equate to a donation of over $100,000 in design services.
We would estimate he and others in our firm will spend another equal amount of time seeing the
project through to completion.
We firmly believe the Other Side Village will be the best program anywhere for caring for our homeless
neighbors and helping them to lead more productive lives. The leaders of the Village effort have a
proven track record with the Other Side Academy and we hope the City will continue to offer their full
support to bring this to fruition as quickly as possible.
Best regards,
David J. Dixon, AIA
EXHIBIT F: CONSTRUCTION COMMITMENT LETTER
45
OPERATIONAL 15-YEAR PROFORMA FOR VILLAGE PILOT PHASE
EXHIBIT G: PROFORMA
667 E 100 S Salt Lake City, UT 84102 TheOtherSideAcademy.com
July 1, 2022
To Whom it May Concern :
The board of The Other Side Academy has agreed to cover any operational shortfalls in funding
from the operations of The Other Side Village in an amount up to $1 million per year. I also
confirm that The Other Side Academy has the financial means to provide these funds if needed.
Respectfully,
Tim Stay
CEO
The Other Side Academy
tim@theothersideacademy.com
801-362-8998
EXHIBIT H: OPERATING COMMITMENT LETTER
1
APPROVAL OF REZONE REQUEST
Potential Conditions to Approval of Rezone
(publication of zoning amendment ordinance)
Finalize development agreement that requires TOSV to:
o Obtain all required permits and approvals from City
o Comply with all applicable laws, regulations
o Construct all improvements as required, including infrastructure
Completion of environmental remediation of pilot phase acreage at TOSV’s cost (full payment or
reimbursement to City) and receipt of Certificate of Completion or equivalent
Executed guaranty of up to $5 Million from Joseph and Celia Grenny
Development Agreement – Defaults and Remedies
The Development Agreement and its potential remedies for the City in an event of default apply
during the construction period. Such events of default may include, but are not limited to:
o TOSV not constructing the improvements within the time limit provided for in the
schedule of development
o TOSV fails to build the improvements as required
o TOSV fails to provide regular development reports
Potential remedies if TOSV fails to remedy an event of default:
o Terminate the ground lease with TOSV, with our option (not obligation) to purchase the
improvements
o Terminate the ground lease with TOSV, take possession of the improvements, and relet
the property
o Enforce on the performance and payment guarantees to complete the construction of
the improvements
o File a breach of contract claim (which may result in damages or specific performance)
o Any other remedies available at law or equity
2
APPROVAL OF PUBLIC BENEFITS ANALYSIS
Potential Conditions to Authorize Execution of Below FMV Ground Lease
Finalize development agreement
Approve financial sources and uses
Firm financial commitments for source funding and donations
Operating budget guaranty from TOSA
Completion of environmental remediation of pilot phase acreage at TOSV’s cost (full payment or
reimbursement to City) and receipt of Certificate of Completion or equivalent
Potential Ground Lease Requirements
1. Completion of development in compliance with the Development Agreement and continued
operation of Village as developed. Development shall include:
(a) At least 60 tiny homes to be used as permanent housing: at least 54 units (or 90% of the
total permanent housing units) shall be deed-restricted as affordable to standard described
in the term sheet
(b) At least 3 affordable units are ADA compliant/wheelchair accessible, and more if dictated by
resident needs
(c) Up to 6 units (not more than 10% of the total permanent housing units) may be used as staff
living quarters
(d) Up to 25 additional tiny homes may be used as a Community Inn offered as nightly rentals
to generate income for TOSV operations
(e) A ~ 2,000 square foot Neighborhood Center to house clubhouse type uses for TOSV
residents (or sized as appropriate)
(f) A ~10,000 square foot Social Enterprise Building to house social enterprise endeavors that
generate income for the TOSV operations (or sized as appropriate)
(g) A ~12,000 square foot Community Center building to house multi-purpose space, and
supportive services for TOSV residents including a medical clinic, a mental health clinic, a
social services clinic, administrative offices, and a security office (or sized as appropriate)
(h) Utility service and related infrastructure; roads and curb/gutter
2. Compliance with attached term sheet to be attached to Resolution (may be modified by
Council).
3. The primary purpose of the Village is to provide housing for qualified residents. The different
uses within the Village (residential, supportive services, social enterprise, and
commercial/community inn) should be constructed alongside each other so that there are
services to support occupied residences and enterprise to support operation of TOSV. For every
10 residential units constructed, at least 9 shall be affordable units.
4. Continual operation of the residential units and supportive services during the lease term.
5. Transportation to off-site supportive services must be provided.
6. Occupancy by residents promptly following receipt of certificate of occupancy (or equivalent)
3
7. Annual Reports - reporting requirements on term sheet and other requested metrics
8. Council Review – review (not more than one time per year) to evaluate purpose and operation
compliance
(a) Financial feasibility, successfully generating sufficient positive cashflow to maintain and
grow its operations. Potential metrics:
i. Development viability – Funding and construction of the agreed-upon capital
improvements.
ii. Operating viability – Development of revenue generating endeavors that provide for the
financial self-sufficiency of TOSV, including adequate funding to support on-site
supportive services.
(b) Social outcomes of the target populations, reducing the number of chronically homeless
individuals and improving the well-being of residents. Potential metrics:
i. Housing Accessibility – Number of chronically homeless and homeless individuals that
successfully obtain housing within the Village.
ii. Length of Stay – Average days that TOSV residents successfully maintain housing in the
Village.
iii. Returns to Homelessness – The extent to which TOSV residents return to homelessness
from being housed within the Village.
iv. Employment – Percent of TOSV residents that successfully obtain and retain
employment.
v. Income Growth – Percent of income growth for TOSV residents.
vi. Service Provider Partnerships – The extent to which TOSV establishes partnerships with
services providers to provide on-site and offsite supportive services.
vii. Housing Referral Partnerships – The extent to which TOSV establishes partnerships with
service providers for housing referrals.
(c) At the neighborhood level, the project’s positive impact on the surrounding community.
Potential metrics:
i. Community Amenities – The successful development and operation of agreed-upon
community amenities, including a bodega or cookie storefront.
ii. Public Safety – The number of Police calls and cases.
iii. Code Enforcement – The number of enforcement cases.
iv. Environmental – The extent to which TOSA completes the necessary environmental
mitigation for the planned land uses.
10. Maintenance of all Improvements, including buildings, homes, street, gutter, storm drains, etc.
11. Units are studio or one-bedroom units with private baths and kitchens, fully furnished including
housewares, maintained in good repair and compliant with applicable law.
12. Supportive services and employment are offered for residents to participate on a voluntary
basis.
13. Employment of residents complies with all applicable laws, including all employment and non-
discrimination laws.
4
13. All standard City contracting terms are included, as well as other terms reasonably
recommended by the City Attorney to meet Council intent.
14. Operation of bodega or similar grocery type store (can have 3rd party operator).
15. City will not provide further financial contribution to operation of Village. Any future phases
must be approved by City Council.
16. Adequate security measures for Village and surrounding community.
Ground Lease – Default and Remedies
The Ground Lease and its potential remedies apply during the entire period of construction
(once the Ground Lease is executed) and operation of the TOSV. Such events of default may
include, but are not limited to:
o TOSV fails to operate the Village as required
o TOSV fails to comply with the terms of the Ground Lease
o TOSV fails to provide regular operating reports
o TOSV fails to report to Council as required
Potential remedies if TOSV fails to remedy an event of default:
o Charge TOSV fair market rent for the leased property
o Terminate the ground lease with TOSV, with an option (not obligation) to purchase the
improvements
o Terminate the ground lease with TOSV, take possession of the improvements, and relet
the property
o File a breach of contract claim (which may result in damages or specific performance)
o Injunctive relief
o Any other remedies available at law or equity
5
TOSV Pilot Project – Affordable Housing, Supportive Services, and Programming
Term Sheet
(to be attached to Resolution)
AFFORDABLE HOUSING
I. Unit Requirements
TOSV shall develop and maintain the Site to include a minimum of 60 tiny home units. Of the
total units:
1. Up to 10% may be unrestricted in rent and occupancy for utilization by staff.
2. A minimum of 90% shall be available and affordable to individuals or families meeting
the HUD-adopted definition of chronically homeless and homeless, with a priority on
chronically homeless. These units shall be designated as the “Affordable Units”.
II. Occupancy Requirements
TOSV must place into the Affordable Units individuals and families that meet the HUD-adopted
definition of chronically homeless and homeless, prioritized as follows:
1. TOSA shall first make the units available to persons or families that meet HUD’s
definition of chronically homeless as defined in section 401(2)(A) of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11360(9)). In general, to meet this definition, a
chronically homeless person or family’s head of household must be sleeping in a place not
meant for human habitation or living in a homeless emergency shelter or safe haven, have a
disabling condition, as defined in section 401(9) of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11360(9)), and
i. be continuously homeless for a year or more, OR
ii. have had at least four episodes of homelessness in the past three years as long
as the combined occasions equal at least 12 months.
2. If there are units available and no applications from chronically homeless individuals,
TOSV may lease units to vulnerable homeless individuals, as “homeless” is then-currently
defined by HUD, provided that applicants who have been homeless for the longest periods
of time immediately preceding their application are given priority over applicants who have
been homeless for lesser periods of time.
III. Tenant Eligibility
To determine whether a tenant is eligible, TOSV must verify that the prospective tenant meets
HUD’s definition of chronically homeless or homeless and whose incomes have an aggregate
annual income for all occupants that is 30% and below of the area median income for Salt Lake
City Utah, HUD Metro FMR Area as adjusted for household size.
6
IV. Tenant Selection
1. The Affordable Units shall be made available pursuant to federal and state fair housing
laws and HUD guidance, including the following:
i. TOSV may establish admission preferences, including a preference for
individuals with a commitment to sobriety, but may not deny housing to protected
classes pursuant to federal and state fair housing laws.
ii. TOSV may regulate the occupancy of units based on unit size but may not
unreasonably limit the ability of families with children to obtain housing.
2. TOSV must develop and make public written tenant selection policies and procedures
that include descriptions of the eligibility requirements. The Tenant Selection Plan must
include evidence of a contractual partnership with service provider(s) and whether there is
a restriction or preference in the admission of tenants. The restriction or preference must
cite the supporting documentation to ensure inclusion and nondiscrimination in the
selection of tenants.
3. TOSV will ensure that all applicants for housing in the project will go through the
coordinated entry process used by the Salt Lake Valley Coalition to End Homelessness to
ensure coordination and efficiency with the current homelessness services system.
4. TOSA also will enter any new resident into the Homeless Management Information
System (“HMIS”) coordinated entry system.
5. Preference will be given to Salt Lake City residents for placement into the development.
V. Maximum Rents
The annualized rent (which includes all required housing costs such as utilities and other charges
uniformly assessed to all Affordable Units, other than charges for optional services) per unit
shall be set forth in a written lease and shall not exceed, for the term of the lease, 30% of the
annual income limit for individuals and households with a maximum AMI of 25% AMI for the
applicable Unit Type (i.e. studio or bedroom number).
VI. Tenant Lease Requirements
1. Leases may be provided on a month-to-month basis, with the intent that tenants may
live in their homes as long as they meet the basic obligations of tenancy without a time
limitation.
2. TOSV shall comply with local, state, and federal laws, including the federal fair housing
act, when approving applicants as tenants, evicting, terminating a lease, or providing a
notice to quit.
3. TOSV must incorporate specific provisions into the lease agreement for each eligible
tenant of the Affordable Units that establish the tenant's obligation to provide accurate
information regarding household income and composition.
7
VII. Record-Keeping and Reporting Requirements
1. Upon execution of a lease, TOSV must verify and document the tenant’s annual (gross)
income.
2. TOSV must re-examine the income and household composition of tenants on an annual
basis.
3. TOSV must submit annual compliance reports to the City. These reports shall document
the occupancy and show whether TOSA is in compliance with tenant eligibility
requirements.
4. TOSV must provide the City a written certification of compliance when the project
reaches initial compliance and then with each annual report.
SUPPORTIVE SERVICES
The pilot project will include supportive services to assist homeless persons in transitioning from
homelessness, and to promote the provision of supportive housing to enable homeless persons to live
as independently as possible. Supportive services will include on-site case coordination or management
that ensures tenants’ access to a wide variety of services and on-site location of services provided by
professional service providers as evidenced through an agreement. Services shall be made available on
a flexible and voluntary basis and may address the following: mental health, substance and alcohol use,
health, case management, independent living skills, employment, peer support, and community
involvement and support. Physical and mental health providers shall have the appropriate licenses,
which other services may be provided by those with appropriate training and following industry best
practices.
PROGRAMMING
The pilot project will include programming that includes peer mentoring and the life skill development.
This will include opportunities for residents to obtain employment experience by working in a social
enterprise to the best of their ability. While participation in these employment activities shall be
encouraged, it is not a condition of living in the pilot project.
TERM
The term of the lease will be forty (40) years with an option to renew the lease within the last year of
the lease subject to approval by the Salt Lake City Council for the reduced lease rate.
LEASE RATE
The lease rate for the property will be $1 per year for the term of the lease.
1
TOSV Pilot Project – Development Agreement Term Sheet
A.DEVELOPMENT AGREEMENT CONDITIONS
1. Develop the following improvements:
a. At least 60 tiny home residential units for permanent housing, with at least 3
units to be wheelchair accessible. Units shall be studio or one-bedroom units with private baths
and kitchens.
b. Up to 25 additional tiny homes to be used as a Community Inn.
c. A ~ 2,000 square foot Neighborhood Center to house clubhouse type uses (size
may be revised as appropriate for use).
d. A ~10,000 square foot Social Enterprise Building to house social enterprise
endeavors (size may be revised as appropriate for use).
e. A ~12,000 square foot Community Center building to house multi-purpose space
(supportive services, clinics, offices) (size may be revised as appropriate for use).
f. A building to house a small grocery store.
2. Obtain all required permits and approvals from City following site plan and design
review and approval by City pursuant to process determined by City.
3. Comply with all applicable laws and regulations.
4. Construct all improvements as required by City, including infrastructure (utility facilities
and related infrastructure; roads and curb/gutter) in compliance with the agreed upon construction
schedule.
5. The different uses within the Village (residential, supportive services, social enterprise,
and commercial/community inn) should be constructed alongside each other so that there are services
to support occupied residences and enterprise to support operation of TOSV.
a. For every 10 residential units constructed, at least 7 shall be affordable units,
until maximum number of staff units have been constructed.
b. At any one time, there will be more residential units completed than
Community Inn units.
6. Completion of environmental remediation of pilot phase acreage at TOSV’s cost (full
payment or reimbursement to City) and receipt of Certificate of Completion or equivalent prior to
issuance of certificate of occupancy.
7. Executed guaranty of up to $5 Million from Joseph and Celia Grenny in a form
acceptable to City.
2
B.DEFAULTS AND REMEDIES
1. Events of default under the Development Agreement may include, but are not limited
to:
a. TOSV not constructing the improvements within the time limit provided for in
the schedule of development
b. TOSV fails to build the improvements as required
c. TOSV fails to provide regular development reports
2. Remedies if TOSV fails to cure an event of default:
a. Terminate the ground lease with TOSV, with our option (not obligation) to
purchase the improvements
b. Terminate the ground lease with TOSV, take possession of the improvements,
and relet the property
c. Enforce on the performance and payment guarantees to complete the
construction of the improvements
d. File a breach of contract claim (which may result in damages or specific
performance)
e. Injunctive relief
f. Any other remedies available at law or equity
1
TOSV Pilot Project – Development Agreement Term Sheet
A.DEVELOPMENT AGREEMENT CONDITIONS
1. Develop the following improvements:
a. At least 60 tiny home residential units for permanent housing, with at least 3
units to be wheelchair accessible. Units shall be studio or one-bedroom units with private baths
and kitchens.
b. Up to 25 additional tiny homes to be used as a Community Inn.
c. A ~ 2,000 square foot Neighborhood Center to house clubhouse type uses (size
may be revised as appropriate for use).
d. A ~10,000 square foot Social Enterprise Building to house social enterprise
endeavors (size may be revised as appropriate for use).
e. A ~12,000 square foot Community Center building to house multi-purpose space
(supportive services, clinics, offices) (size may be revised as appropriate for use).
f. A building to house a small grocery store.
2. Obtain all required permits and approvals from City following site plan and design
review and approval by City pursuant to process determined by City.
3. Comply with all applicable laws and regulations.
4. Construct all improvements as required by City, including infrastructure (utility facilities
and related infrastructure; roads and curb/gutter) in compliance with the agreed upon construction
schedule.
5. The different uses within the Village (residential, supportive services, social enterprise,
and commercial/community inn) should be constructed alongside each other so that there are services
to support occupied residences and enterprise to support operation of TOSV.
a. For every 10 residential units constructed, at least 79 shall be affordable units,
until maximum number of staff units have been constructed.
b. At any one time, there will be more residential units completed than
Community Inn units.
6. Completion of environmental remediation of pilot phase acreage at TOSV’s cost (full
payment or reimbursement to City) and receipt of Certificate of Completion or equivalent prior to
issuance of certificate of occupancy.
7. Executed guaranty of up to $5 Million from Joseph and Celia Grenny in a form
acceptable to City.
2
B.DEFAULTS AND REMEDIES
1. Events of default under the Development Agreement may include, but are not limited
to:
a. TOSV not constructing the improvements within the time limit provided for in
the schedule of development
b. TOSV fails to build the improvements as required
c. TOSV fails to provide regular development reports
2. Remedies if TOSV fails to cure an event of default:
a. Terminate the ground lease with TOSV, with our option (not obligation) to
purchase the improvements
b. Terminate the ground lease with TOSV, take possession of the improvements,
and relet the property
c. Enforce on the performance and payment guarantees to complete the
construction of the improvements
d. File a breach of contract claim (which may result in damages or specific
performance)
e. Injunctive relief
f. Any other remedies available at law or equity
1
TOSV Pilot Project – Affordable Housing, Supportive Services, and Programming Term Sheet
(to be attached to Resolution)
A.CONDITIONS TO ENTERING INTO GROUND LEASE
1. Enter into Development Agreement on the terms in the attached term sheet.
2. City to approve financial sources and uses.
3. Firm financial commitments for source of funding and donations consistent with the
schedule of development.
4. Operating budget guaranty from TOSA in form acceptable to City.
B.GROUND LEASE CONDITIONS
1. Completion of development in compliance with the Development Agreement and
continued operation of Village as described in this term sheet.
2. Completion of environmental remediation of pilot phase acreage at TOSV’s cost (full
payment or reimbursement to City) and receipt of Certificate of Completion or equivalent as a condition
to receiving certificate of occupancy.
3. Continual operation of the residential units and supportive services during the lease
term.
4. Inclusion of all standard City contracting terms, as well as other terms reasonably
recommended by the City Attorney to meet Council intent.
5. Firm commitment letters of contracts from service providers (medical, dental, mental
health/behavioral health, and case management) prior to occupancy by residents.
6. Within 12 months of entering into the ground lease, TOSV will begin landscaping the
property and contribute to the beautification of the neighborhood.
C.BUILDING REQUIREMENTS
1. Residential Units. TOSV shall develop and maintain the Site to include a minimum of 60
tiny home units as permanent housing. Of the total units:
a. Up to 10% (not more than 6 units) may be unrestricted in rent and occupancy
for utilization as staff living quarters.
b. A minimum of 90% (at least 54 units) shall be available and affordable to
individuals or families meeting the occupancy requirements described in this term sheet (the
“Affordable Units”). The Ground Lease will restrict the affordability of these units.
c. At least 3 affordable units shall be ADA compliant/wheelchair accessible, and
more affordable units will be made ADA compliant to meet resident needs.
d. Units shall be studio or one-bedroom units with private baths and kitchens, fully
furnished including housewares, maintained in good repair and compliant with applicable law.
2
2. Up to 25 additional tiny homes may be used as a Community Inn offered as nightly
rentals to generate income for TOSV operations.
3. A ~ 2,000 square foot Neighborhood Center to house clubhouse type uses for TOSV
residents (size may be revised as appropriate for use).
4. A ~10,000 square foot Social Enterprise Building to house social enterprise endeavors
that generate income for the TOSV operations (size may be revised as appropriate for use).
5. A ~12,000 square foot Community Center building to house multi-purpose space, and
supportive services for TOSV residents including a medical clinic, a mental health clinic, a social services
clinic, administrative offices, and a security office (size may be revised as appropriate for use).
6. A small grocery store that sells grocery food and food ingredients (such as milk, eggs,
bread, and fruits and vegetables), and not solely convenience, prepared, or “junk” foods.
D.OCCUPANCY REQUIREMENTS
1. Tenant Eligibility. The primary purpose of the Village is to provide housing for qualified
residents. TOSV must place into the Affordable Units individuals and families that meet the HUD-
adopted definition of chronically homeless and homeless, prioritized as follows:
a. TOSA shall first make the units available to persons or families that meet HUD’s
definition of chronically homeless as defined in section 401(2)(A) of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11360(9)). In general, to meet this definition, a chronically homeless person or
family’s head of household must be sleeping in a place not meant for human habitation or living in a
homeless emergency shelter or safe haven, have a disabling condition, as defined in section 401(9) of
the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360(9)), and
i. be continuously homeless for a year or more, OR
ii. have had at least four episodes of homelessness in the past three years
as long as the combined occasions equal at least 12 months.
b. If there are units available and no applications from chronically homeless
individuals, TOSV may lease units to vulnerable homeless individuals, as “homeless” is then-currently
defined by HUD, provided that applicants who have been homeless for the longest periods of time
immediately preceding their application or who demonstrate the highest vulnerability utilizing the VI-
SPDAT (Vulnerability Index–Service Prioritization Decision Assistance Tool) or similar assessment are
given priority over applicants who have been homeless for lesser periods of time.
c. A prospective tenant must have an annual income that is 30% or below of the
area median income for Salt Lake City Utah, HUD Metro FMR Area as adjusted for household size.
d. For purposes of clarity, a resident must meet the eligibility requirements before
acceptance into the Welcome Center. Residency/participation in the Welcome Center or in other TOSA
programs will not satisfy the homeless definitions. TOSA intends to prioritize street outreach efforts to
find resident applicants along the Jordan River and in westside neighborhoods, also with homeless
resource centers, service providers, and through government agencies.
3
2. Tenant Selection.
a. The Affordable Units shall be made available pursuant to federal and state fair
housing laws and HUD guidance, including the following:
i. TOSV may establish admission preferences, including a preference for
individuals with a commitment to sobriety, but may not deny housing to
protected classes pursuant to federal and state fair housing laws.
ii. TOSV may regulate the occupancy of units based on unit size but may
not unreasonably limit the ability of families with children to obtain housing.
b. TOSV must develop and make public written tenant selection policies and
procedures that include descriptions of the eligibility requirements. The Tenant Selection Plan must
include evidence of a contractual partnership with service provider(s) and whether there is a restriction
or preference in the admission of tenants. The restriction or preference must cite the supporting
documentation to ensure inclusion and nondiscrimination in the selection of tenants.
c. TOSV will ensure that all applicants for housing in the Village will go through the
coordinated entry process used by the Salt Lake Valley Coalition to End Homelessness to ensure
coordination and efficiency with the current homelessness services system.
d. TOSA also will enter any new resident into the Homeless Management
Information System (“HMIS”) coordinated entry system.
e. Preference will be given to Salt Lake City residents for placement into the
development.
3. Maximum Rents. The annualized rent (which includes all required housing costs such as
utilities and other charges uniformly assessed to all Affordable Units, other than charges for optional
services) per unit shall be set forth in a written lease and shall not exceed, for the term of the lease, 30%
of the annual income limit for individuals and households with a maximum AMI of 25% AMI for the
applicable Unit Type (i.e. studio or bedroom number).
4. Tenant Lease Requirements.
a. Leases may be provided on a 12-month lease term, with the intent that tenants
may live in their homes as long as they meet the basic obligations of tenancy without a time limitation.
b. TOSV shall comply with local, state, and federal laws, including the federal fair
housing act, when approving applicants as tenants, evicting, terminating a lease, or providing a notice to
quit.
c. TOSV must incorporate specific provisions into the lease agreement for each
eligible tenant of the Affordable Units that establish the tenant’s obligation to provide accurate
information regarding household income and composition.
5. Occupancy by residents as soon as reasonably practicable following receipt of
certificates of occupancy (or equivalent).
4
E.RECORD-KEEPING AND ANNUAL REPORTING REQUIREMENTS
1. Upon execution of a lease, TOSV must verify and document the tenant’s annual (gross)
income.
2. TOSV must re-examine the income and household composition of tenants on an annual
basis.
3. TOSV must submit annual compliance reports to the City. These reports shall document
the occupancy and show whether TOSA is in compliance with tenant eligibility requirements.
4. TOSV must provide the City a written certification of compliance when the pilot project
reaches initial compliance and then with each annual report.
5. TOSV must provide the City with a report showing the number of total applications,
number of applications who were approved for a lease, the number of residents who leave the
Welcome Center and the number that move into the Village, the number of residents who leave the
Village and the reason (obtained other permanent housing, lease nonrenewal by TOSV, eviction).
6. TOSV must provide other reports that may be reasonably requested by the City to
confirm compliance with the requirements of the Ground Lease.
F.SUPPORTIVE SERVICES
1. The pilot project will include supportive services to assist homeless persons in
transitioning from homelessness, and to promote the provision of supportive housing to enable
homeless persons to live as independently as possible.
2. Supportive services will include on-site case coordination or management that ensures
tenants’ access to a wide variety of services and on-site location of services provided by professional
service providers as evidenced through an agreement.
3. Services shall be made available on a flexible and voluntary basis and may address the
following: mental health, substance and alcohol use, health, case management, independent living skills,
employment, peer support, and community involvement and support. Physical and mental health
providers shall have the appropriate licenses, which other services may be provided by those with
appropriate training and following industry best practices.
4. Transportation to off-site supportive services must be provided when not available on-
site.
5. Resident participation in the supportive services is on a voluntary basis.
6. Information will be made readily available to tenants regarding tenant rights and
housing laws and will have the information displayed in a visible location.
G.PROGRAMMING
The pilot project will include programming that includes peer mentoring and the life skill development.
This will include opportunities for residents to obtain employment experience by working in a social
5
enterprise to the best of their ability. While participation in these employment activities shall be
encouraged, it is not a condition of living in the pilot project.
H.SOCIAL ENTERPRISES
1. TOSV intends to generate revenue to support the Village through operation of social
enterprise businesses that will be located on-site. These businesses are anticipated to be a motel
(Community Inn), thrift store, and a cookie manufacturing. The businesses may change over time.
2. In addition to generating revenue to cover operating costs, these businesses will provide
critical job training opportunities for residents. The Community Inn will include 25 stand-alone tiny
homes offered as nightly rentals for the general public, thereby providing lodging opportunities for Pilot
Project visitors and volunteers.
3. Participation in employment opportunities and social enterprises by residents is strictly
voluntary.
4. Employment of residents complies with all applicable laws, including all employment
and non-discrimination laws.
I.OTHER LEASE TERMS
1. Term. The term of the lease will be forty (40) years with an option to renew the lease
within the last year of the lease subject to approval by the Salt Lake City Council for the reduced lease
rate.
2. Rate. The lease rate for the property will be $1 per year for the term of the lease.
3. Right of First Offer. City will not allow a 3rd party to use or develop the remaining
adjacent property during the construction of the pilot project and for 3 years of operation of the Village
following completion of the pilot project. During that time, TOSA shall hold a right of first offer and may
offer to lease the adjacent property on terms and conditions agreed to with the City.
4. Maintenance. TOSA shall maintain all improvements within the Village, including
buildings, homes, street, gutter, storm drains, etc. in a good condition, consistent with applicable laws
and regulations. Residential units shall be maintained in a manner that is decent, safe, and sanitary and
meet at least the minimum Housing Standard Requirements. Maintenance shall include all necessary
and desirable repairs, snow removal, trash removal, and landscaping maintenance.
6. City will not provide further financial contribution to operation of Village. Any future
phases must be approved by City Council.
7. Adequate security measures for Village and surrounding community.
8. Ongoing operation of a small grocery store that sells grocery food and food ingredients
(such as milk, eggs, bread, and fruits and vegetables), and not solely convenience, prepared, or “junk”
foods. May be operated by a 3rd party operator.
J.DEFAULTS AND REMEDIES
1. Events of default under the Ground Lease may include, but are not limited to:
6
a. TOSV fails to operate the Village as required
b. TOSV fails to comply with the terms of the Ground Lease
c. TOSV fails to provide regular operating reports
d. TOSV fails to report to City as required
2. Potential remedies if TOSV fails to cure an event of default:
a. Charge TOSV fair market rent for the leased property
b. Terminate the ground lease with TOSV, with an option (not obligation) to
purchase the improvements
c. Terminate the ground lease with TOSV, take possession of the improvements,
and relet the property
d. File a breach of contract claim (which may result in damages or specific
performance)
e. Injunctive relief
f. Any other remedies available at law or equity
K.REVIEW FOR PROJECT COMPLIANCE
Not more than annually and in connection with an annual report, City may request additional
information from TOSV to evaluate if the Village is compliant with the Ground Lease and meeting the
purposes of the approved public benefit analysis. The City will consider three primary topics in its
review:
1. Financial feasibility, successfully generating sufficient positive cashflow to maintain and
grow its operations. The City may consider relevant information, which may include, but is not limited
to the following:
a. Development viability – Funding and construction of the agreed-upon capital
improvements.
b. Operating viability – Development of revenue generating endeavors that
provide for the financial self-sufficiency of TOSV, including adequate location space and funding to
support on-site supportive services by 3rd party providers.
2. Social outcomes of the target populations, reducing the number of chronically homeless
individuals and improving the well-being of residents. The City may consider relevant information,
which may include, but is not limited to the following:
a. Housing Accessibility – Number of chronically homeless and homeless
individuals that successfully obtain housing within the Welcome Center and Village.
b. Length of Stay – Average days that TOSV residents successfully maintain housing
in the Welcome Center and/or Village.
7
c. Returns to Homelessness – The extent to which TOSV residents return to
homelessness from being housed within the Welcome Center and/or Village.
d. Employment – Percent of TOSV residents that successfully obtain and retain
employment, recognizing that residents may not be able to participate in employment.
e. Income Growth – Percent of income growth for TOSV residents, if any.
f. Service Provider Partnerships – The extent to which TOSV establishes
partnerships with services providers to provide on-site and offsite supportive services.
g. Housing Referral Partnerships – The extent to which TOSV establishes
partnerships with service providers for housing referrals.
3. Community impact at the neighborhood level, the Village’s impact on the surrounding
community. The City may consider relevant information, which may include, but is not limited to the
following:
a. Community Amenities – The successful development and operation of agreed-
upon community amenities, including a small grocery store.
b. Public Safety – The number of Police calls and cases within the Village, and other
metrics of public safety.
c. Code Enforcement – The number of enforcement cases.
d. Environmental – The extent to which TOSA completes the necessary
environmental mitigation for the planned land uses.
1
TOSV Pilot Project – Affordable Housing, Supportive Services, and Programming Term Sheet
(to be attached to Resolution)
A.CONDITIONS TO ENTERING INTO GROUND LEASE
1. Enter into Development Agreement on the terms in the attached term sheet.
2. City to approve financial sources and uses.
3. Firm financial commitments for source of funding and donations consistent with the
schedule of development.
4. Operating budget guaranty from TOSA in form acceptable to City.
B.GROUND LEASE CONDITIONS
1. Completion of development in compliance with the Development Agreement and
continued operation of Village as described in this term sheet.
2. Completion of environmental remediation of pilot phase acreage at TOSV’s cost (full
payment or reimbursement to City) and receipt of Certificate of Completion or equivalent as a condition
to receiving certificate of occupancy.
3. Continual operation of the residential units and supportive services during the lease
term.
4. Inclusion of all standard City contracting terms, as well as other terms reasonably
recommended by the City Attorney to meet Council intent.
5. Firm commitment letters of contracts from service providers (medical, dental, mental
health/behavioral health, and case management) prior to occupancy by residents.
6. Within 12 months of entering into the ground lease, TOSV will begin landscaping the
property and contribute to the beautification of the neighborhood.
C.BUILDING REQUIREMENTS
1. Residential Units. TOSV shall develop and maintain the Site to include a minimum of 60
tiny home units as permanent housing. Of the total units:
a. Up to 10% (not more than 6 units) may be unrestricted in rent and occupancy
for utilization as staff living quarters.
b. A minimum of 90% (at least 54 units) shall be available and affordable to
individuals or families meeting the occupancy requirements described in this term sheet (the
“Affordable Units”). The Ground Lease will restrict the affordability of these units.
c. At least 3 affordable units shall be ADA compliant/wheelchair accessible, and
more affordable units will be made ADA compliant to meet resident needs.
d. Units shall be studio or one-bedroom units with private baths and kitchens, fully
furnished including housewares, maintained in good repair and compliant with applicable law.
2
2. Up to 25 additional tiny homes may be used as a Community Inn offered as nightly
rentals to generate income for TOSV operations.
3. A ~ 2,000 square foot Neighborhood Center to house clubhouse type uses for TOSV
residents (size may be revised as appropriate for use).
4. A ~10,000 square foot Social Enterprise Building to house social enterprise endeavors
that generate income for the TOSV operations (size may be revised as appropriate for use).
5. A ~12,000 square foot Community Center building to house multi-purpose space, and
supportive services for TOSV residents including a medical clinic, a mental health clinic, a social services
clinic, administrative offices, and a security office (size may be revised as appropriate for use).
6. A small grocery store that sells grocery food and food ingredients (such as milk, eggs,
bread, and fruits and vegetables), and not solely convenience, prepared, or “junk” foods.
D.OCCUPANCY REQUIREMENTS
1. Tenant Eligibility. The primary purpose of the Village is to provide housing for qualified
residents. TOSV must place into the Affordable Units individuals and families that meet the HUD-
adopted definition of chronically homeless and homeless, prioritized as follows:
a. TOSA shall first make the units available to persons or families that meet HUD’s
definition of chronically homeless as defined in section 401(2)(A) of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11360(9)). In general, to meet this definition, a chronically homeless person or
family’s head of household must be sleeping in a place not meant for human habitation or living in a
homeless emergency shelter or safe haven, have a disabling condition, as defined in section 401(9) of
the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360(9)), and
i. be continuously homeless for a year or more, OR
ii. have had at least four episodes of homelessness in the past three years
as long as the combined occasions equal at least 12 months.
b. If there are units available and no applications from chronically homeless
individuals, TOSV may lease units to vulnerable homeless individuals, as “homeless” is then-currently
defined by HUD, provided that applicants who have been homeless for the longest periods of time
immediately preceding their application or who demonstrate the highest vulnerability utilizing the VI-
SPDAT (Vulnerability Index–Service Prioritization Decision Assistance Tool) or similar assessment are
given priority over applicants who have been homeless for lesser periods of time.
c. A prospective tenant must have an annual income that is 30% and or below of
the area median income for Salt Lake City Utah, HUD Metro FMR Area as adjusted for household size.
d. For purposes of clarity, a resident must meet the eligibility requirements before
acceptance into the Welcome Center. Residency/participation in the Welcome Center or in other TOSA
programs will not satisfy the homeless definitions. TOSA intends to prioritize street outreach efforts to
find resident applicants along the Jordan River and in westside neighborhoods, also with homeless
resource centers, service providers, and through government agencies.
3
2. Tenant Selection.
a. The Affordable Units shall be made available pursuant to federal and state fair
housing laws and HUD guidance, including the following:
i. TOSV may establish admission preferences, including a preference for
individuals with a commitment to sobriety, but may not deny housing to
protected classes pursuant to federal and state fair housing laws.
ii. TOSV may regulate the occupancy of units based on unit size but may
not unreasonably limit the ability of families with children to obtain housing.
b. TOSV must develop and make public written tenant selection policies and
procedures that include descriptions of the eligibility requirements. The Tenant Selection Plan must
include evidence of a contractual partnership with service provider(s) and whether there is a restriction
or preference in the admission of tenants. The restriction or preference must cite the supporting
documentation to ensure inclusion and nondiscrimination in the selection of tenants.
c. TOSV will ensure that all applicants for housing in the Village will go through the
coordinated entry process used by the Salt Lake Valley Coalition to End Homelessness to ensure
coordination and efficiency with the current homelessness services system.
d. TOSA also will enter any new resident into the Homeless Management
Information System (“HMIS”) coordinated entry system.
e. Preference will be given to Salt Lake City residents for placement into the
development.
3. Maximum Rents. The annualized rent (which includes all required housing costs such as
utilities and other charges uniformly assessed to all Affordable Units, other than charges for optional
services) per unit shall be set forth in a written lease and shall not exceed, for the term of the lease, 30%
of the annual income limit for individuals and households with a maximum AMI of 25% AMI for the
applicable Unit Type (i.e. studio or bedroom number).
4. Tenant Lease Requirements.
a. Leases may be provided on a month-to-month basis12-month lease term, with
the intent that tenants may live in their homes as long as they meet the basic obligations of tenancy
without a time limitation.
b. TOSV shall comply with local, state, and federal laws, including the federal fair
housing act, when approving applicants as tenants, evicting, terminating a lease, or providing a notice to
quit.
c. TOSV must incorporate specific provisions into the lease agreement for each
eligible tenant of the Affordable Units that establish the tenant’s obligation to provide accurate
information regarding household income and composition.
5. Occupancy by residents following receipt of certificate of occupancy as soon as
reasonably practicable following receipt of certificates of occupancy (or equivalent).
4
E.RECORD-KEEPING AND ANNUAL REPORTING REQUIREMENTS
1. Upon execution of a lease, TOSV must verify and document the tenant’s annual (gross)
income.
2. TOSV must re-examine the income and household composition of tenants on an annual
basis.
3. TOSV must submit annual compliance reports to the City. These reports shall document
the occupancy and show whether TOSA is in compliance with tenant eligibility requirements.
4. TOSV must provide the City a written certification of compliance when the pilot project
reaches initial compliance and then with each annual report.
5. TOSV must provide the City with a report showing the number of total applications,
number of applications who were approved for a lease, the number of residents who leave the
Welcome Center and the number that move into the Village, the number of residents who leave the
Village and the reason (obtained other permanent housing, lease nonrenewal by TOSV, eviction).
6. TOSV must provide other reports that may be reasonably requested by the City to
confirm compliance with the requirements of the Ground Lease.
F.SUPPORTIVE SERVICES
1. The pilot project will include supportive services to assist homeless persons in
transitioning from homelessness, and to promote the provision of supportive housing to enable
homeless persons to live as independently as possible.
2. Supportive services will include on-site case coordination or management that ensures
tenants’ access to a wide variety of services and on-site location of services provided by professional
service providers as evidenced through an agreement.
3. Services shall be made available on a flexible and voluntary basis and may address the
following: mental health, substance and alcohol use, health, case management, independent living skills,
employment, peer support, and community involvement and support. Physical and mental health
providers shall have the appropriate licenses, which other services may be provided by those with
appropriate training and following industry best practices.
4. Transportation to off-site supportive services must be provided when not available on-
site.
5. Resident participation in the supportive services is on a voluntary basis.
6. Information will be made readily available to tenants regarding tenant rights and
housing laws and will have the information displayed in a visible location.
G.PROGRAMMING
The pilot project will include programming that includes peer mentoring and the life skill development.
This will include opportunities for residents to obtain employment experience by working in a social
5
enterprise to the best of their ability. While participation in these employment activities shall be
encouraged, it is not a condition of living in the pilot project.
H.SOCIAL ENTERPRISES
1. TOSV intends to generate revenue to support the Village through operation of social
enterprise businesses that will be located on-site. These businesses are anticipated to be a motel
(Community Inn), thrift store, and a cookie manufacturing. The businesses may change over time.
2. In addition to generating revenue to cover operating costs, these businesses will provide
critical job training opportunities for residents. The Community Inn will include 25 stand-alone tiny
homes offered as nightly rentals for the general public, thereby providing lodging opportunities for Pilot
Project visitors and volunteers.
3. Participation in employment opportunities and social enterprises by residents is strictly
voluntary.
4. Employment of residents complies with all applicable laws, including all employment
and non-discrimination laws.
I.OTHER LEASE TERMS
1. Term. The term of the lease will be forty (40) years with an option to renew the lease
within the last year of the lease subject to approval by the Salt Lake City Council for the reduced lease
rate.
2. Rate. The lease rate for the property will be $1 per year for the term of the lease.
3. Right of First Offer. City will not allow a 3rd party to use or develop the remaining
adjacent property during the construction of the pilot project and for 3 years of operation of the Village
following completion of the pilot project. During that time, TOSA shall hold a right of first offer and may
offer to lease the adjacent property on terms and conditions agreed to with the City.
4. Maintenance. TOSA shall maintain all improvements within the Village, including
buildings, homes, street, gutter, storm drains, etc. in a good condition, consistent with applicable laws
and regulations. Residential units shall be maintained in a manner that is decent, safe, and sanitary and
meet at least the minimum Housing Standard Requirements. Maintenance shall include all necessary
and desirable repairs, snow removal, trash removal, and landscaping maintenance.
6. City will not provide further financial contribution to operation of Village. Any future
phases must be approved by City Council.
7. Adequate security measures for Village and surrounding community.
8. Ongoing operation of a small grocery store that sells grocery food and food ingredients
(such as milk, eggs, bread, and fruits and vegetables), and not solely convenience, prepared, or “junk”
foods. May be operated by a 3rd party operator.
6
J.DEFAULTS AND REMEDIES
1. Events of default under the Ground Lease may include, but are not limited to:
a. TOSV fails to operate the Village as required
b. TOSV fails to comply with the terms of the Ground Lease
c. TOSV fails to provide regular operating reports
d. TOSV fails to report to City as required
2. Potential remedies if TOSV fails to cure an event of default:
a. Charge TOSV fair market rent for the leased property
b. Terminate the ground lease with TOSV, with an option (not obligation) to
purchase the improvements
c. Terminate the ground lease with TOSV, take possession of the improvements,
and relet the property
d. File a breach of contract claim (which may result in damages or specific
performance)
e. Injunctive relief
f. Any other remedies available at law or equity
K.REVIEW FOR PROJECT COMPLIANCE
Not more than annually and in connection with an annual report, City may request additional
information from TOSV to evaluate if the Village is compliant with the Ground Lease and meeting the
purposes of the approved public benefit analysis. The City will consider three primary topics in its
review:
1. Financial feasibility, successfully generating sufficient positive cashflow to maintain and
grow its operations. The City may consider relevant information, which may include, but is not limited
to the following:
a. Development viability – Funding and construction of the agreed-upon capital
improvements.
b. Operating viability – Development of revenue generating endeavors that
provide for the financial self-sufficiency of TOSV, including adequate location space and funding to
support on-site supportive services by 3rd party providers.
2. Social outcomes of the target populations, reducing the number of chronically homeless
individuals and improving the well-being of residents. The City may consider relevant information,
which may include, but is not limited to the following:
a. Housing Accessibility – Number of chronically homeless and homeless
individuals that successfully obtain housing within the Welcome Center and Village.
7
b. Length of Stay – Average days that TOSV residents successfully maintain housing
in the Welcome Center and/or Village.
c. Returns to Homelessness – The extent to which TOSV residents return to
homelessness from being housed within the Welcome Center and/or Village.
d. Employment – Percent of TOSV residents that successfully obtain and retain
employment, recognizing that residents may not be able to participate in employment.
e. Income Growth – Percent of income growth for TOSV residents, if any.
f. Service Provider Partnerships – The extent to which TOSV establishes
partnerships with services providers to provide on-site and offsite supportive services.
g. Housing Referral Partnerships – The extent to which TOSV establishes
partnerships with service providers for housing referrals.
3. Community impact at the neighborhood level, the Village’s impact on the surrounding
community. The City may consider relevant information, which may include, but is not limited to the
following:
a. Community Amenities – The successful development and operation of agreed-
upon community amenities, including a small grocery storeor cookie storefront.
b. Public Safety – The number of Police calls and cases within the Village, and other
metrics of public safety.
c. Code Enforcement – The number of enforcement cases.
d. Environmental – The extent to which TOSA completes the necessary
environmental mitigation for the planned land uses.