13 of 2023 - Amendment to Terms for Loan to Ville 1659, LLC, and Clarification of Housing Development Loan PrograREDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _____
Affordable Housing–Gap Housing Development Loan Program (HDLP) Amendment to
Proposed Loan Terms
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY APPROVING AN AMENDMENT TO PROPOSED LOAN TERMS
FOR AN HDLP LOAN TO VILLE 1659, LLC.
WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) was created to transact the
business and exercise the powers provided for in the Utah Community Reinvestment Agency Act
(the “Act”).
WHEREAS, the Act provides that tax increment funds may be used for the purpose of
increasing the affordable housing supply within the boundaries of Salt Lake City.
WHEREAS, the Housing Development Loan Program (“HDLP”) was created to enable the
RDA to incentivize the development and preservation of affordable housing.
WHEREAS, the RDA Board of Directors (“Board”) previously approved the Housing Funds
Allocation Policy (“Funds Policy”), which establishes policies with respect to dedicating and
directing resources for the HDLP based on funding source (“Housing Funds”).
WHEREAS, the Board also adopted the amended and restated Housing Development Loan
Program Policy (the “HDLP Policy”) to provide a centralized application, underwriting, and
approval process for accessing the Housing Funds, including granting the authority for review
and approval of applications by the RDA Finance Committee (“Finance Committee”).
WHEREAS, pursuant to resolution R-3-2023, the Board previously approved funding
allocations and preliminary loan terms for eight projects selected to meet the goals established by
the HDLP, amounting to a total allocation of $8,360,000.
WHEREAS, included in that funding allocation was a proposed loan in the amount of
$1,000,000 to Ville 1659, LLC (“Developer”) for development of a deeply affordable housing
project to be located at 1659 West North Temple (the “Ville 1659 Project”).
WHEREAS, preliminary loan terms for the approved funding allocation for Ville 1659
originally included a two percent (2%) interest rate, forty-year term, forty-year amortization, and
cash flow repayments.
WHEREAS, due to changes to Developer’s overall financing structure, RDA staff proposes
making modifications to the preliminary loan terms, changing the type of loan from a
construction gap loan to a bridge loan, to support the Ville 1659 Project until it reaches
stabilization.
13 of 2023
WHEREAS, the proposed modifications include shortening the term to three years and changing
the repayment structure from cash flow payments to a balloon payment due upon expiration of
the term.
WHEREAS, the Board agrees to allocate the funding with the preliminary loan term
modifications as reflected in the Amended HDLP RDA Board Funding Allocations attached
hereto as Exhibit A.
NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the
Redevelopment Agency of Salt Lake City that it approves the funding allocations and preliminary
terms as amended in the Amended HDLP RDA Board Funding Allocations attached hereto as
Exhibit A, subject to revisions that do not materially affect the rights and obligations of the RDA
hereunder. The Board authorizes the waiver of the Policy to set the base interest rate at the rate
stated on the Term Sheet, which waiver shall be valid for three months from the date of this
resolution. The Board authorizes the Executive Director to negotiate and execute the loan
agreement and any other relevant documents consistent with the Amended and Restated Term
Sheet, and incorporating such other terms and agreements as recommended by the City Attorney’s
office.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this _______
day of July, 2023.
________________________________
Alejandro Puy, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Sara Montoya, Senior City Attorney
Date:
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
________________________________
Erin Mendenhall, Executive Director
Attest:
________________________
City Recorder
July 6, 2023
11th
Jul 17, 2023
Alejandro Puy (Jul 17, 2023 22:37 MDT)
Erin Mendenhall (Jul 18, 2023 16:54 MDT)
4
EXHIBIT A: AMENDED HDLP RDA BOARD FUNDING ALLOCATIONS
PROJECT/APPLICANT ADDRESS
PROJECT
PRIORITIES/INTERES
T RATE REDUCTION
AND WEIGHTED
NOFA RANKING**
FUNDING
REQUEST
PRELIMINAR
Y TERMS*
TOTAL
FUNDING
ALLOCATIO
N
FUNDIN
G
RANKIN
G
2 -Victory Heights 1
1060 E 100 S
Family Housing: 3
Target Populations:
3
Transportation
Opportunities: 1
Architecture & Urban
Design: 1
Adaptive Reuse: 1
Public Art: 1
TOTAL: 10
$1,865,00
0
1% interest
rate, 40-year
term, 40-year
amortization,
hard
repayments
$1,865,00
0 1
BCG Holdings
3 - Victory Heights 2
1060 E 100 S
Family Housing: 3
Target Populations:
3
Transportation
Opportunities: 1
Architecture & Urban
Design: 1
Adaptive Reuse: 1
Public Art: 1
TOTAL: 10
$280,000
1% interest
rate, 40-year
term, 40-year
amortization,
hard
repayments
$280,000 2
BCG Holdings
4 - Atkinson Stacks***
543 S 500 W
Target Populations:
3
Unique Housing
Types: 3
Architecture & Urban
Design: 1
Sustainability: 1
TOTAL: 8
$2,500,00
0
1% interest
rate, 40-year
term, 40-year
amortization,
hard
repayments
$500,000 8
HAME
5 - Book Cliffs Lodge***
1159 S West
Temple
Family Housing: 3
Target Populations:
3
Transportation
Opportunities: 1
Neighborhood Safety:
1
TOTAL: 8
$540,000
1% interest
rate, 40-year
term, 40-year
amortization,
hard
repayments
$540,000 7HAME
6 - Citizens West 2
509 W 300 N
Family Housing: 3
Target Populations:
3
Transportation
Opportunities: 1
Architecture & Urban
Design: 1
Commercial Vitality:
1
Public Art: 1
TOTAL: 10
$1,850,00
0
1% interest
rate, 40-year
term, 40-year
amortization,
hard
repayments
$1,850,00
0 3
Giv Development
7 - Citizens West 3 509 W 300 N Family Housing: 3
Target Populations:
$1,200,00
0
1% interest
rate, 40-year
$1,200,00
0 4
Giv Development 3
Transportation
Opportunities: 1
Architecture & Urban
Design: 1
Commercial Vitality:
1
Public Art: 1
TOTAL: 10
term, 40-year
amortization,
hard
repayments
8 - Ville 9
1025 N 900 W
Unique Housing Type:
3
Commercial Vitality:
1
Adaptive Reuse: 1
TOTAL: 5
$1,700,00
0
2.5% interest
rate, 40-year
term, 40-year
amortization,
cash flow
repayment
$0 9/10
Ville Property Mgmt
9 - Ville 1659
1659 W North
Temple
Target Populations:
3
Unique Housing Type:
3
Transportation
Opportunities: 1
Commercial Vitality:
1
Adaptive Reuse: 1
TOTAL: 9
$1,825,00
0
2% interest
rate, 40-year
term, 40-year
amortization,
cash flow
repayment
1% interest
rate, 3-year
term, balloon
payment
$1,000,00
0 5
Ville Property Mgmt
10 - Liberty Corner***
265 W 1300 S
Family Housing: 3
Target Populations:
3
Missing Middle: 3
Transportation
Opportunities: 1
Neighborhood Safety:
1
Architecture & Urban
Design: 1
Commercial Vitality:
1
TOTAL: 13
$3,000,00
0
2% interest
rate, 40-year
term, 40-year
amortization,
cash flow
repayment
$1,125,00
0 6
Cowboy Partners
11 - 9Ten West
910 W North
Temple
Transportation
Opportunities: 1
Neighborhood Safety:
1
Architecture & Urban
Design: 1
Commercial Vitality:
1
Public Art: 1
TOTAL: 5
$2,000,00
0
2% interest
rate, 16-year
term, 30-year
amortization,
cash flow
repayment
$0 9/10
Great Lakes Capital
TOTAL $16,760,000 $8,360,000
*Final Terms shall comply with the requirements, standard loan terms and conditions, interest-rate reductions, and
all other details laid out within the 2022 Housing Development Loan Program (HDLP) Guidelines. Changes to
repayment type may occur (hard repayment versus cash flow repayment) and shall be based on requirements listed
in the HDLP Guidelines or if required by a senior lender. Changes in repayment type will cause a change in the
base interest rate. Repayment priority and lien position shall be based on the size of the loans.
**Projects receive a 0.5% interest rate reduction for each included priority. Sustainability allows for a 1% or 2%
reduction. The maximum reduction per development is 2%. The interest rate is calculated as follows: Base Interest
Rate minus (-) Interest Rate Reductions (up to 2%) = proposed interest rate; Base interest rate shall be locked
within a month of closing. Projects shall maintain project priorities and the same weighted score at closing.
Deviation from project priorities met may require Board approval.
***If these projects do not receive 9% tax credits in the next 2024 Utah Housing Corporation 9% allocation cycle, or
these projects do not receive an allocation of Tax Exempt Bonds for the 4% tax credits by December 31, 2023,
these funding commitments shall be returned to the RDA's Housing Development Loan Program.
Funds Availability
HDLP Committed Funds $6,000,000
Additional HDLP Funds Approved by
Board $2,360,000
Total Potential HDLP Funds $8,360,000
RDA Resolution 13 of 2023 Amendment to
Terms for Loan to Ville 1659, and Clarification of
Housing Development Loan Program
Final Audit Report 2023-07-19
Created:2023-07-18
By:Thais Stewart (thais.stewart@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAASsc6DxBQQS6g4BRGLkcdhVhLn0QYE5Ry
"RDA Resolution 13 of 2023 Amendment to Terms for Loan to V
ille 1659, and Clarification of Housing Development Loan Progra
m" History
Document created by Thais Stewart (thais.stewart@slcgov.com)
2023-07-18 - 1:18:15 AM GMT
Document emailed to Sara Montoya (sara.montoya@slcgov.com) for signature
2023-07-18 - 1:20:23 AM GMT
Email viewed by Sara Montoya (sara.montoya@slcgov.com)
2023-07-18 - 4:32:36 AM GMT
Document e-signed by Sara Montoya (sara.montoya@slcgov.com)
Signature Date: 2023-07-18 - 4:33:07 AM GMT - Time Source: server
Document emailed to alejandro.puy@slcgov.com for signature
2023-07-18 - 4:33:09 AM GMT
Email viewed by alejandro.puy@slcgov.com
2023-07-18 - 4:36:41 AM GMT
Signer alejandro.puy@slcgov.com entered name at signing as Alejandro Puy
2023-07-18 - 4:37:09 AM GMT
Document e-signed by Alejandro Puy (alejandro.puy@slcgov.com)
Signature Date: 2023-07-18 - 4:37:11 AM GMT - Time Source: server
Document emailed to Erin Mendenhall (erin.mendenhall@slcgov.com) for signature
2023-07-18 - 4:37:12 AM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2023-07-18 - 5:15:48 AM GMT
Document e-signed by Erin Mendenhall (erin.mendenhall@slcgov.com)
Signature Date: 2023-07-18 - 10:54:32 PM GMT - Time Source: server
Document emailed to Cindy Trishman (cindy.trishman@slcgov.com) for signature
2023-07-18 - 10:54:34 PM GMT
Document e-signed by Cindy Trishman (cindy.trishman@slcgov.com)
Signature Date: 2023-07-19 - 1:13:33 AM GMT - Time Source: server
Agreement completed.
2023-07-19 - 1:13:33 AM GMT