Transmittal - 4/2/2024ERIN 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
________________________
Rachel Otto, Chief of Staff
Date Received: 4/02/2024
Date sent to Council: 4/02/2024
______________________________________________________________________________
TO: Salt Lake City Council DATE: 04/01/24
Victoria Petro, Chair
FROM: Blake Thomas, Director, Department of Community and Neighborhoods
__________________________
SUBJECT: Draft legislative policies for the Housing Program Funds, including the
establishment of a Tenant and Homeowner Loan Fund, and the Direct Delivery Housing
Programs
STAFF CONTACT:
Tammy Hunsaker, Deputy Director, Community and Neighborhoods Department, 385-315-3315,
tammy.hunsaker@slcgov.com
Tony Milner, Director, Housing Stability Division, 801-535-6168, tony.milner@slcgov.com
Heather Royall, Deputy Director, Housing Stability Division, 801-535-7273,
heather.royall@slcgov.com
DOCUMENT TYPE: Information only
RECOMMENDATION: Briefing and policy discussion
BUDGET IMPACT: N/A
BACKGROUND/DISCUSSION: Salt Lake City (“City”) utilizes various funding sources to
support housing and community development activities. These funding sources primarily include
U.S. Department of Housing and Urban Development (HUD) grant programs, Funding Our
Future (FoF) sales tax funds, and program income, collectively called the Housing Program
Funds. The City allocates a portion of the Housing Program Funds to local organizations for the
implementation of activities that support the City’s goals, known as Subrecipient Programs. The
rachel otto (Apr 2, 2024 14:20 MDT)
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City also retains a portion of the Housing Program Funds to administer activities and programs
directly to tenants, homeowners, landlords, and property owners, which is known as Direct
Delivery Programs.
Over the past several months, the Administration has briefed the Council on the Housing
Program Funds, particularly on the “dormant” program income and the Direct Delivery
Programs. As a next step, this transmittal includes draft legislative policies for the Council’s
review and consideration. The ultimate goal is to accomplish the following:
• Adopt a Housing Program Funds Policy to establish budgeting standards. This policy
shall include the formation of:
o A Housing Program Funds Loan Committee that will review, and in limited
circumstances approve, funding allocations.
o A Tenant and Homeowner Loan Fund that will serve as a revolving source of
revenue to continue to fund the Direct Delivery Programs.
• Adopt a policy for each of the Direct Delivery Programs to establish legislative standards
for how the programs shall be administered.
Background
On February 14, 2023, the Administration briefed the City Council on dormant program income
that had been generated over several years from certain Subrecipient Programs and Direct
Delivery Programs. At that time, the Administration identified the need for the following process
improvements:
1) Establish Legislative Policies for the Direct Delivery Programs
o Currently, the Administration is providing draft legislative policies for certain
Direct Delivery Programs for the Council’s review and consideration (Exhibits B
– D).
2) Increase Budget Transparency
o Currently, the Administration has incorporated a reporting requirement within the
draft legislative policies for the Direct Delivery Programs to ensure that the
Council receives regular updates on program outcomes to inform future budget
decisions. Furthermore, the Administration has provided a draft Housing Program
Funds policy that, once adopted, will establish standards for the budgeting process
which will t increase transparency (Exhibit A).
3) Align practices with the Open and Public Meetings Act (“OPMA”)
o Currently, the Administration is proposing that a Housing Program Funds Loan
Committee be established through the Housing Program Funds Policy. OPMA
will apply once the policy is codified. It is important to note that most
beneficiaries of the Direct Delivery Programs are low and moderate-income
individuals and families, and HUD requires that these populations remain
confidential. As such, sensitive information such as names, credit history,
incomes, and addresses will need to be generalized and/or kept confidential while
complying with OPMA requirements.
Draft Legislative Policies
Draft legislative polices are provided as Exhibits A – D for the Councils review and feedback.
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The Council may wish to take note of the following:
• Salt Lake City Housing Program Funds Policy - Exhibit A
Once adopted, this policy will establish standards for the budgeting, accounting, and
reporting of the Housing Program Funds, and will establish a revolving loan fund, to be
named the Salt Lake City Tenant and Homeowner Loan Fund (THLF). This will serve as
a self-replenishing pool of revenue to fund the Direct Delivery Programs. Within the draft
policy, the budgeting process for revenue and treatment of program income is based on
the source of funding as follows:
o New Revenue:
Historically, the process to allocate new revenue to specific programs and
recipients has been different depending on the source of funding. For example,
HUD funds have been subjected to an application and review process that
includes recommendations by a resident advisory board and Mayor with final
allocations made by the Council, while FoF funds are subjected to a sealed
request for proposal (RFP) process. Oftentimes, the same agencies are allocated
funding through the different processes. To better coordinate resources, the
Administration is proposing to allocate all new funding through an application
process, with review by the resident advisory board and Mayor and final
allocations made by the Council.
o Restricted Program Income:
Program Income generated from HUD funds, Funding Our Future, or other
restricted sources must be administered according to associated requirements. For
example, program income generated by HUD-funded activities shall be
recaptured and reallocated annually, along with New Revenue, through an
application process, with review by the resident advisory board and Mayor and
final allocations made by the Council.
o Unrestricted Program Income:
Program income generated from activities funded with the THLF — a revolving
loan fund to be established and maintained as an account in the general fund — is
proposed to be recycled back into the THLF to continue to fund the Direct
Delivery Programs.
• Salt Lake City Home Repair Program - Exhibit B
The City has been operating the Home Repair Program for decades. The program
provides grants and loans to low and moderate-income homeowners, defined as 80% of
the area median income (AMI) and below, to address emergency and chronic home repair
needs. While Housing Stability has been administering the program pursuant to HUD
regulations, legislative polices have never been formally adopted by the Council.
Since the beneficiaries of the program are individuals and households, funding is
proposed to be allocated on a first-come-first-serve basis, rather than on a competitive
basis that positions one applicant against another. Once an applicant is deemed eligible,
the Administration is proposing that the Housing Program Funds Loan Committee is
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given authority to make the final determination of funding terms pursuant to the
legislative policy.
The Administration is proposing that funding be allocated as either a conditional grant or
a deferred and/or below market loan. The issuance of grants is proposed to be limited to
senior or disabled populations. Loans shall only be structured with deferred payments for
households with an income of 50% AMI and below, or on a temporary basis with
demonstration of an economic hardship. Loans issued to households at 51% - 80% AMI
are proposed to be structured as amortizing loans with monthly repayments.
• Salt Lake City Community Land Trust (“CLT”) Program - Exhibit C
The City has been operating the CLT program since the Council adopted resolution 12 of
2017 which satisfies the requirements of Utah Code Section 10-8-2, in effect authorizing
the City to sell properties at below-market value to facilitate affordable homeownership
opportunities.
Through the CLT program, the City designates property as part of the land trust model,
retaining ownership of the land and only selling the housing structure to a qualified
homebuyer. To facilitate affordability for the homebuyer, the City leases the land to the
homeowner through a below market-rate lease. The City may also provide mortgage
financing for the purchase of the housing unit. The City has added eighteen housing units
to the CLT inventory and is actively working to acquire another single-family home with
budget approved by the Council for fiscal year 2024 (“FY 24”).
Since the beneficiaries of this program are individuals and households, available housing
units and corresponding mortgage financing are proposed to be allocated on a first-come-
first-serve basis, rather than on a competitive basis that positions one applicant against
another. Once an applicant is deemed eligible and is matched with a housing unit, the
Administration is proposing that the Housing Program Funds Loan Committee is given
authority to make the final determination of funding terms pursuant to the legislative
policy.
Even though the recommendation is administer the program on a first-come, first-serve
basis, the Administration is also proposing that the following populations receive a
priority position on the program’s waitlist in order to support the anti-displacement
efforts established in Thriving In Place:
o Households that currently reside in Salt Lake City municipal boundaries and have
done so for twelve (12) consecutive months or longer.
o Households that have previously lived in Salt Lake City for a minimum of five (5)
consecutive years, and that were displaced within the preceding five (5) years due
to rising housing costs or redevelopment of property.
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If a CLT homeowner elects to sell their home, the draft policy proposes that the
homeowner shall receive all their cash equity invested in the house plus an equity share
of 1.75% of the original purchase price for each year of ownership to account for
appreciation, provided that the equity share is supported by an appraisal. The resale price
of the housing unit to the next family shall be based on the total of the original purchase
price and equity share from the previous transaction or the fair market value (“-FMV) of
the housing unit, whichever is lower. The price of housing units newly added to the CLT
inventory shall be based on the FMV of the housing unit. This helps keep housing
affordable because it is based on the FMV of the housing unit only, and not the land.
• Salt Lake City NOAH Preservation Pilot Program - Exhibit D
Through the FY 24 budget, the Council allocated $1.2 million for a Naturally Occurring
Affordable Housing NOAH pilot program. NOAH properties— constituting one of Salt
Lake City’s largest supply of affordable housing stock — maintain affordable rents
without public subsidy and, therefore, do not have a covenant that requires the property to
be rented at an affordable rate. These properties are often aging, integrated into
established neighborhoods, owned by small to medium scale landlords, and / or are at risk
of rent increases through redevelopment or property improvements.
This program, once established, is intended to provide financial assistance to NOAH
property owners to carry out property improvements in return for a long-term covenant to
preserve affordability. The covenant may be structured as either a deed restriction or as a
long-term master lease with a housing authority or another qualified housing provider.
A deed restriction would restrict the rental of the housing units to qualifying populations
at an affordable rental rate. A master lease would reserve the rental of the housing units
to recipients of rental vouchers, such as those received through the Housing Choice
Voucher (HCV) Program, with the rental rate restricted to the maximum amount allowed
by HUD. Reserving housing for families with an HCV, or other types of vouchers, would
allow families to retain housing within the city, as families with a voucher often find it
difficult to locate housing that is under the maximum rental rate allowed by HUD. As
such, the high cost of rental housing has limited the number of families able to use their
vouchers within the city.
It is important for the program to strike a balance between providing an appropriate level
of financial incentive while also attracting NOAH property owners to participate. By
definition, NOAH properties do not have an affordable housing encumbrance. Once an
encumbrance is recorded on a property’s title, the property’s value is decreased due to the
restriction of rental income over time. The lower the rents are restricted, the more the
value of the NOAH is impacted. Accordingly, the proposed polices for the City’s NOAH
pilot program provide a greater incentive for units that are restricted at lower AMIs. The
financing structure is proposed to be issued as a split between a grant and a loan, with the
proportion of grant being larger for units that are at the lowest AMIs.
Since the direct beneficiaries of this program are property owners, and the confidential
information of tenants is not a factor, the funding is proposed to be initially offered on a
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competitive basis. If qualifying applications are not received, the funding will then
become available on a first-come-first-serve basis. Qualifying applications will be
reviewed by the Housing Programs Loan Committee for a recommendation, then be
forwarded to the City Council for final funding approval. Since the program is initially
being structured as a pilot program, the funding is proposed to be allocated in multiple
tranches to be able to test the structure of the program and learn and adjust accordingly.
Budget Considerations
Through the FY24 budget process, the Council allocated $1.2 million to the NOAH program
from the unrestricted program income. In addition to the NOAH funding, there is $5,920,000
available in unrestricted program income that was approved by the Council as part of the FY 24
budget, but has not been allocated to a specific use or program. Through various briefings, the
Administration has proposed that additional dormant program income be allocated to capitalize
the THLF, with the following allocations to specific Direct Delivery Programs:
o Home Repair Program: $500,000
o CLT Program with Homebuyer Mortgages: $2,100,000
If the Council is supportive of budget allocations to these programs, the Administration will
prepare a budget action item for the Council’s consideration. As new program income is
generated, the program income is proposed to be recycled through the THLF pursuant to the
Housing Program Funds Policy. Not related to these programs, the Administration has proposed
that the unrestricted program income be used to pay off two lines of credit that were utilized
years ago to assume shares in homebuyer mortgage loans issued by the City. The current balance
required to pay off these lines of credit is ~$2,604,000, as payments are being made monthly and
the principal is decreasing. Paying off these lines of credit will save the City a significant amount
of interest. In addition, the Administration has proposed that $180,000 of dormant program
income be used for a Tenant Relocation Program that the City is establishing based on the
policies priorities adopted through Thriving in Place, the City’s anti-displacement plan. In regard
to any remaining unrestricted program income, the Administration proposes that that funding be
allocated to the THLF for future allocation to a specific Direct Delivery Program.
PUBLIC PROCESS: The Administration has briefed the Council on the dormant program
income funds on multiple occasions, and any budget allocations of the dormant program income
is subject to the City’s budgeting process.
EXHIBITS:
A. Salt Lake City Housing Program Funds Policy
B. Salt Lake City Home Repair Program
C. Salt Lake City Community Land Trust (“CLT”) Program
D. Salt Lake City NOAH Preservation Pilot Program
EXHIBIT A: Page 1
DRAFT - Salt Lake City Housing Program Funds Policy
Salt Lake City Housing Program Funds Policy
DRAFT
1. GENERAL
1.1 Scope
Salt Lake City (“City”) utilizes various funding sources to support housing and community development activities (collectively
the “Housing Program Funds”). The City allocates a portion of the Housing Program Funds to local organizations for the
implementation of activities that support the City’s goals (“Subrecipient Programs”). The City also retains a portion of the
Housing Program Funds to administer activities and programs directly to tenants, homeowners, landlords, and property owners
(“Direct Delivery Programs”). This policy establishes standards for the financial and reporting standards for the Housing Program
Funds. In addition, this policy establishes a revolving loan fund as a self-replenishing pool of revenue to fund the Direct Delivery
Programs.
1.2 Intent
Housing and community development policies are outlined in various plans that have been adopted or approved by the City. The
intent of the Housing Program Funds is to implement the goals and objectives that are outlined in the relevant plans, including but
not limited to the City’s moderate-income housing plan, anti-displacement plan, and 5-year consolidated plan as required by the
U.S. Department of Housing and Urban Development (HUD). The uses of the funds for the Direct Delivery Programs shall be
outlined in the specific program policy.
2. FINANCIAL
2.1 Revenue
Housing Program Funds revenue sources shall include:
A. Federal Ongoing: Revenue from federal funding sources that is allocated annually to the City for affordable housing and
community development activities, including the following HUD programs: Community Development Block Grant (CDBG),
Home Investment Partnership Program (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons
with AIDS (HOPWA).
B. Funding Our Future (FoF): FoF sales tax dollars that are designated annually for housing programs.
C. Program Income: Revenue generated from the sale of property, the repayment of principal and interest, or other sources of
revenue generated from an activity funded with the Housing Program Funds. To comply with the various statutory
requirements for each revenue source, the City shall separately account for Program Income according to the associated
EXHIBIT A: Page 2
DRAFT - Salt Lake City Housing Program Funds Policy
source, as follows:
o Restricted Program Income: Program Income generated from Federal Ongoing, FoF, or other sources with federal,
state, or other restrictions shall be administered according to associated requirements. For example, Program Income
generated from Federal Ongoing funding sources maintains federal requirements in perpetuity and shall be recaptured
and reallocated annually pursuant to federal regulations.
o Unrestricted Program Income: Program Income generated from the Tenant and Homeowner Loan Fund, or another
source that does not have restrictions on the utilization of program income, shall be deposited into a revolving loan
fund, pursuant to Section 3: Tenant and Homeowner Revolving Loan Fund, to continue to further the policy
objectives contained herein.
D. Other Housing Program Funds: The City may designate general fund or other one-time funding from federal, state, or other
sources for housing or community development purposes.
2.2 Expenditures
2.2.1: Annual Budget Allocations
The City Council shall appropriate the Housing Program Funds revenue to specific Direct Delivery and Subrecipient programs
through the annual budget process. The Administration shall propose funding recommendations to the City Council either through
a competitive application process or through administrative budget recommendations, as follows:
A. Competitive Application Process
The following sources of Revenue shall fund either Subrecipient or Direct Delivery programs and shall be subject to
an annual competitive application process:
a. Federal Ongoing
b. FoF
c. Restricted Program Income
d. Other Housing Program Funds (on a case-by-case basis)
Applications shall be subject to a review and funding recommendation process conducted first by the Community
Development and Capital Improvement Program Advisory Board (“CDCIP Board”), or its successor, then by the
Mayor. The CDCIP Board and Mayor’s funding recommendations shall be submitted to the City Council during the
budget deliberation process for the upcoming fiscal year.
B. Administrative Budget Recommendations
The following sources of Revenue shall fund Direct Delivery Programs to ensure their financial viability. Funding
recommendations shall be submitted through the Mayor’s Recommended Budget:
a. Unrestricted Program Income
EXHIBIT A: Page 3
DRAFT - Salt Lake City Housing Program Funds Policy
b. Other Housing Program Funds (on a case-by-case basis)
2.2.2: Direct Delivery Program Project Allocations
Once The City Council has appropriated funding to a Direct Delivery Program, funding allocations to specific project recipients
shall be determined by the respective Direct Delivery Program policy. A Housing Program Funds Loan Committee shall be
established to provide recommendations or decisions of funding, as established by the respective Direct Delivery Program policy,
and shall be comprised of five (members), as follows:
A. Two (2) members of the CDCIP Board, or its successor
B. The Director of Community and Neighborhoods, or designee
C. The Director of Housing Stability, or designee
D. The City’s Chief Financial Officer, or designee
3. TENANT AND HOMEOWNER REVOLVING LOAN FUND
The Salt Lake City Tenant and Homeownership Loan Fund (THLF) shall be established and maintained as a restricted account in the general
fund to facilitate the recycling of Unrestricted Program Income for the implementation of the Direct Delivery Programs. The THLF shall be
financially managed by the Department of Finance (“Finance”). There shall be deposited into the fund all monies received by the City that do
not have federal or state restrictions and that are dedicated to community development and affordable housing programs, including, but not
limited to:
A. Unrestricted Program Income;
B. In lieu payments, mitigation fees, contributions, and other monies that may be received by the City for the purposes of tenant and
homeownership housing programs; and
C. Other monies appropriated by the City Council.
No expenditure shall be made from the THLF without approval of the City Council. Through the annual budget, the City Council shall allocate
funds from the THLF to specific Direct Delivery Programs pursuant to Section 2.2.
4. REPORTING
The Mayor’s Administration shall submit a report to the City Council on an annual basis that provides an overview of budget expenditures and
associated outcomes. The report shall include a summary of property transactions, loans, grants, and populations served. To keep the identity
of individuals, tenants, homeowners confidential, reporting shall include the census block group of the property, household, or individual
served rather than the address.
EXHIBIT A: Page 4
DRAFT - Salt Lake City Housing Program Funds Policy
EXHIBIT B: Page 1
Draft - Salt Lake City Home Repair Program
Salt Lake City Home Repair Program
Legislative Policies
DRAFT
1. GENERAL
1.1 Mission
The Home Repair Program (“Program”) provides financial assistance to low- and moderate-income homeowners (“Homeowners”)
for expenses related to maintaining safe and stable housing in order to preserve the housing stock and the health and wellbeing of
the families occupying them. Financial assistance is facilitated through the execution of an agreement between the City,
Homeowner, and construction contractor. The City provides project managements services and issues funding directly to the
construction contractor on behalf of the Homeowner.
1.2 Project Types
The Program includes two types of projects, as follows:
A. Minor Repair: Addresses minor home repairs and accessibility needs.
B. Home Rehabilitation: Correct deficiencies and bring homes up to Salt Lake City’s existing Housing Code.
1.3 Program Administration
The Program shall be administered by the Housing Stability Division, including staff to manage the administration, construction
management, and loan servicing aspects of the Program.
2. PROGRAM FUNDING
2.1 Funding Sources
The Program shall be funded pursuant to the Housing Funds Policy.
2.2 Program Income
Program income shall be generated by the repayment of principal and interest on loans issued through the Program. The financial
management of program income shall be pursuant to the Housing Funds Policy.
2.3 Uses of Funding
Funding allocations shall be utilized to issue grants and loans to eligible Homeowners.
EXHIBIT B: Page 2
Draft - Salt Lake City Home Repair Program
3. ELIGIBILITY REQUIREMENTS
3.1 Eligible Properties
Eligible properties shall be owner-occupied housing units located within Salt Lake City boundaries. The property’s real estate
taxes, water, and sewer payments must be current and in good standing with the City, provided however that Program funding
may be utilized to address code violations.
3.2 Eligible Costs
Eligible Costs shall include up to 100% of the cost of labor and materials to correct substandard conditions, correct violations of
local housing codes, and to implement certain type of improvements, as follows:
A. Replacement and repair of principal fixtures
B. Replacement and repair of components of existing structures
C. Installation of security and safety devices
D. Weatherization and conservation improvements including for water and energy efficiency
E. Accessibility improvements and upgrades
F. Lead, radon, and other hazard mitigations
G. Closing costs, loan origination fees, and loan servicing fees
3.3 Eligible Homeowners
Homeowner eligibility shall be based on the following criteria by Project Type:
A. Minor Repair:
a. Have a household income of 80% of the area median income (AMI) and below; and
b. Have a primary resident that is either a senior (aged 62 years or older), or living with a disabling condition that is
recognized under federal guidelines.
B. Home Rehabilitation:
a. Homeowners shall be, and intend to remain, the principal residence of the property for the term of the loan; and
b. Have a household income of 80% AMI and below; and
c. For households obtaining an amortizing loan:
i. Have sufficient income to pay back the loan, as determined by the ratio of the homeowner’s debt-to-income
(DTI). Total monthly revolving debts, including the costs for the Home Repair Program loan, cannot exceed a
DTI of 45% of the gross monthly income or the maximum amount allowed under HUD’s First Time
Homebuyer Program or its successor. In addition to a DTI of 45% or lower, the homeowner shall be required
to demonstrate sufficient income, defined as the amount of money a household has left over each month after
paying major expenses such as mortgages and car loans, to cover the cost of household needs such as food,
EXHIBIT B: Page 3
Draft - Salt Lake City Home Repair Program
fuel, clothing, and other household essentials.
ii. Have a good history of meeting their financial obligations, as determined by the homeowner’s credit report.
4. FUNDING TERMS AND CONDITIONS
Funding awards shall be based on the following terms and conditions:
PROJECT
TYPE: MINOR REPAIR HOME REHABILITATION
Type of
Assistance Grant Conditional grant Deferred loan Amortized loan
AMI
Up to 80% AMI; and a
senior or disabling
condition
Up to 30% AMI
and a senior or
disabling condition
Up to 50% AMI 51% to 80% AMI
Debt to Income
Requirement n/a n/a n/a 40% or below
Homeowner
Occupancy
Requirement
Primary resident upon
distribution of funds 5 Years Term of the loan
Term n/a 5 Years
As long as
ownership and
occupancy
requirements are
met
Up to 20 Years
Interest Rate n/a n/a 0% 0-4%
Default Interest
Rate n/a 4% on the outstanding balance
Payment Type n/a n/a Payments are
deferred Payments shall be due monthly
Maximum
Assistance
Up to $2,500 annually;
lifetime limit of
$20,000 per owner
Up to $50,000;
lifetime limit of
$50,000 per owner
Up to $50,000, only one active loan per property
Collateral None Deed of trust
EXHIBIT B: Page 4
Draft - Salt Lake City Home Repair Program
NOTES:
▪ Conditional Grants: Conditional grants shall be forgiven over a 5-year term on a prorated basis. Accordingly, 20% of the
loan shall be forgiven annually.
▪ Deferred Loans: Deferred loans shall become payable upon sale or transfer of the property or if the Homeowner no longer
lives in the property as an owner-occupant.
▪ Transfer of Loans: Loan may be transferred to certain heirs, including a spouse, child, or a domestic partner, that assume
title of the Housing Unit. Eligibility of loan transfer will be analyzed on a case-by-case basis.
▪ Amortized Loans:
• Term: Amortized loans shall have a 20-year term but may be shorter if the applicant demonstrates the ability to
accelerate repayment based on a DTI analysis.
• Interest Rate: Amortized loans shall have an interest rate that is competitive to the current market rate but shall be
no lower than 3% unless the applicant demonstrates the need for a lower payment based on a DTI analysis.
• Maximum Assistance: The Maximum Assistance amount for amortized loans shall be sized to the lower of
$50,000 or the maximum amount affordable with the DTI maximum established in Section 3: Eligibility
Requirements.
5. APPROVAL PROCESS
Funding shall be awarded on a first come first served basis, as per the date a complete application is submitted. Once a completed
application is submitted, the application shall be processed for approval as follows:
A. Housing Stability staff shall verify that all Eligibility Requirements are met. If requirements are not met, the application will be
denied.
B. If Eligibility Requirements are met, Housing Stability staff shall make a recommendation to the Housing Program Funds Loan
Committee regarding the maximum assistance amount and other funding terms and conditions based on the standards established
in Section 4: Funding Terms and Conditions.
C. The Housing Program Funds Loan Committee shall review and has the authority to approve the funding request within the
standards set forth in this policy.
6. PROCUREMENT, CONTRACTING, AND DISBURSEMENT OF FUNDS
Once an application is approved by the Housing Program Funds Loan Committee, a procurement and contracting process that complies
with City and HUD policy shall be carried out. Housing Stability staff shall provide project management services, in coordination with the
Homeowner and contractor, to establish and carry out a scope of work. Grant/loan proceeds may be disbursed to the contractor through
construction draws.
EXHIBIT B: Page 5
Draft - Salt Lake City Home Repair Program
7. LOAN DEFERMENT AND MODIFICATION
7.1 Temporary Deferment of Amortized Loans
On an annual basis, existing loan holders can apply for a partial or full deferment of monthly loan payments if the household’s
DTI percentage exceeds 50% considering all revolving debt including the Program loan. The amount of monthly loan payments to
be deferred shall be based on the 50% DTI threshold. Requests for deferments shall be evidenced by a financial analysis of the
household’s income and debt obligations. Deferments may be approved by the Housing Program Funds Loan Committee for up to
12 months and may be reauthorized on an annual basis for up to five (5) years, consecutive or nonconsecutive, during the term of
the loan. If a loan deferment is granted, the loan shall be extended for an equivalent period of time.
7.2 Permanent Modification or Deferment of Amortized Loans
The following options may be considered if a loan holder continues to experience an economic hardship and has exhausted the
temporary loan deferment option provided under Section 7.1:
A. Loan Modification
If a Household continues to experience a temporary economic hardship, the loan holder may request a permanent loan
modification. The loan modification may include extension of the loan term up to 30 years and/or an interest rate reduction.
Such requests shall be reviewed and approved by the Housing Program Funds Loan Committee.
B. Permanent Loan Deferment
If a Household has experienced a severe and permanent economic hardship, the loan holder may request a deferment of the
loan until the Homeowner no longer lives in the property as an owner-occupant. The loan shall be due upon sale or transfer of
the property. Notwithstanding, the loan may be transferred to certain heirs including a spouse, child, or a person living in the
household for at least one year prior to Homeowner’s death. In order to be authorized, such requests shall be reviewed and
recommended by the Housing Program Funds Loan Committee and approved by the Director of Community and
Neighborhoods.
8. REPORTING
Housing Stability shall submit a report to the City Council on an annual basis. The report shall include outcomes associated with the
Programs including a summary of projects completed, number of new grants and loans, total outstanding balance of the loan portfolio, and
number of delinquencies.
EXHIBIT B: Page 6
Draft - Salt Lake City Home Repair Program
EXHIBIT C: Page 1
Draft - Salt Lake City Community Land Trust Program
Salt Lake City Community Land Trust Program
Legislative Policies
DRAFT
1. GENERAL
1.1 Mission
The Community Land Trust and Homebuyer Loans (collectively the “CLT Program”) work in tandem to provide for-sale housing
units in conjunction with mortgage loans to facilitate homeownership opportunities for low- and moderate-income (LMI)
households and to maintain the units as affordable over the long-term. The CLT Program allows for equity sharing upon the sale
of the home to promote wealth building. The City designates property as part of the land trust model, retaining ownership of the
land (“Land”) and selling only the housing structure (“Housing Unit”) to a qualified homebuyer (“Homebuyer”). To facilitate
affordability for the Homebuyer, the City leases the Land to the Homeowner through a below market-rate lease (“Ground Lease”)
and may provide mortgage financing for the purchase of the Housing Unit.
1.2 Policy Objectives
The CLT Program shall promote:
A. Affordable homeownership as a way for low and moderate-income families to build wealth and achieve financial stability
through equity sharing.
B. Affordable homeownership as a way to reject historical policies that precluded minorities and others from purchasing a home
and widened the racial wealth gap.
C. Affordable homeownership in areas of opportunity as a platform for a range of positive life outcomes, including those related
to health and education.
D. Affordable homeownership opportunities to combat displacement in neighborhoods faced with gentrification.
1.3 Program Administration
The CLT Program shall be administered by the Housing Stability Division, including management of the administration,
rehabilitation activities, and loan servicing aspects of the Program.
1.4 Scope of Services
Homebuyer Loan mortgage financing issued by the City is exclusively available to Homebuyers participating in the CLT
Program; however, a Homebuyer participating in the CLT Program is not required to utilize Homebuyer Loan mortgage financing
issued by the City and may use another source of financing subject to approval by the City.
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1.5 Program Inventory
Program Inventory shall include residential properties located within Salt Lake City boundaries that have been acquired by the
City and designated as part of the CLT Program. Once a property is designated as part of the CLT Program, it shall remain in the
CLT Program in perpetuity unless the property is deemed to no longer serve the Mission of the CLT Program or is needed for a
different public purpose. In instances where a property shall be disposed of, the property shall be disposed of pursuant to City
Code 2.58: City Owned Real Property, but with the sales proceeds designated as Program Income pursuant to this policy.
Properties may be acquired for the CLT Program through the following ways:
A. The City may purchase properties on the open market.
B. The City may purchase properties that, as part of a mortgage or loan issued by the City, there is a contractual clause that gives
the City the first opportunity to buy the property.
C. The City or its Redevelopment Agency may build Housing Units or partner with development partners to build Housing Units
on surplus or other City-owned property.
D. The City may purchase property from homeowners who want to place their home into the CLT Program or who agree to
undertake a sale-leaseback scenario. Under a sale-leaseback scenario, a property owner would sell the land underneath their
house to the City and continue living in the Housing Unit under a long-term Lease. This would provide property owners, such
as seniors living on a fixed income, with revenue from the land sale while also adding to the CLT Program’s inventory.
2. PROGRAM FUNDING
2.1 Funding Sources
The CLT Program shall be funded pursuant to the Housing Program Funds Policy.
2.2 Program Income
Program income shall be generated from the sale of property and the repayment of principal and interest on loans issued through
the CLT Program. The financial management of program income shall be pursuant to the Housing Funds Policy.
2.3 Uses of Funding
Funding allocations shall be utilized for the following activities:
A. The repurchase of Housing Units.
B. The rehabilitation of Housing Units to prepare the home for resale.
C. Mortgage financing to Homebuyers of Housing Units.
D. The acquisition or development of property to add new units to the CLT Program’s inventory.
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3. ELIGIBILITY, PRIORITIZATION, AND APPROVAL PROCESS
3.1 Eligibility Requirements:
To be eligible to participate in the CLT Program, an applicant shall meet the following threshold requirements:
A. Maximum Income: A household shall have an annual income which does not exceed 80% of the area median income (AMI)
of households of equal size residing in the Salt Lake statistical areas as defined by the U.S. Department of Housing and Urban
Development (HUD).
B. Creditworthiness: A household shall demonstrate a history of meeting their financial obligations, as determined by the
homeowner’s credit report.
C. Debt Capacity: A household’s debt to income (DTI) percentage, including all revolving debt inclusive of the prospective
mortgage financing, shall not exceed 45% of the gross monthly income or the maximum amount allowed under HUD’s First
Time Homebuyer Program.
D. Tenure Status: A household shall be a first-time homebuyer or have not owned a home in the past five (5) years, or a single
parent or individual who has only owned a home with a former spouse or partner while married or in a domestic partnership.
3.2 Application Prioritization and Housing Unit Selection:
Applicants that successfully meet the Eligibility Requirements (“Pre-Approved Applicants”) will be placed on a waitlist that is
based on a first-come, first-served basis. Provided however that Pre-Approved Applicants that meet one or more of the following
criteria will be escalated on the waitlist higher than Pre-Approved Applicants that do not meet these criteria:
A. Households that currently reside in Salt Lake City municipal boundaries and have done so for twelve (12) consecutive months
or longer.
B. Households that have previously lived in Salt Lake City for a minimum of five (5) consecutive years, and that were displaced
within the preceding five (5) years due to rising housing costs or redevelopment of property.
Once a Housing Unit becomes available, Housing Stability staff will offer it to the first prioritized Pre-Approved Applicant. The
applicant may select to move forward with purchasing the Housing Unit or may decline to move forward with that particular
Housing Unit. If a Pre-Approved Applicant passes on a Housing Unit, the Housing Unit will be offered to the next prioritized
applicant on the waitlist. A Pre-Approved Applicant may pass on a Housing Unit and remain in the same position on the waitlist.
Applicants shall demonstrate that they meet eligibility requirements at the time of application and at the time of closing.
3.3 Mortgage Financing Approval Process:
Once a Pre-Approved Applicant is matched with a Housing Unit, the Pre-Approved Applicant shall obtain mortgage financing in
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one of two ways, as follows:
A. If the Pre-Approved Applicant is obtaining independent mortgage financing, the applicant shall provide the City with
evidence of the third-party financing amount and terms and the third-party lender’s acknowledgement of participation in the
CLT Program; or
B. If the Pre-Approved Applicant is obtaining a Homebuyer Loan through the City, Housing Stability staff shall underwrite the
loan pursuant to the standards established in Section 4: Mortgage Financing.
The Housing Program Funds Loan Committee shall review and has the authority to approve the Pre-Approved Applicants
acquisition of the Housing Unit and, if applicable, the terms of the Homebuyer Loan to be issued by the City within the standards
set forth in this policy.
4. MORTGAGE FINANCING
4.1 Terms and Conditions:
If the Homebuyer elects to obtain a Homebuyer Loan issued by the City, the mortgage financing shall be underwritten and issued
pursuant to the following terms and conditions:
A. Maximum Loan Amount: Up to 100% of the purchase price of the Housing Unit.
B. Debt to Income Maximum: The DTI maximum is the limit established in Section 3: Eligibility Requirements.
C. Interest Rate: The interest rate shall be 3%, provided however that a household’s debt to income (DTI) percentage, including
all revolving debt inclusive of the prospective loan, is below the DTI maximum established in Section 3: Eligibility
Requirements. If a household’s DTI percentage is above the threshold, the interest rate may be reduced to meet the threshold.
Interest rates shall be competitive to the market and at no time shall be below 1%.
D. Term: The term of the loan shall be up to 30 years.
E. Payments: Payments shall be collected monthly. Late payments are subject to a 4% late fee.
F. Security: A Deed of Trust and Promissory Note will be recorded on the property.
5. COMMUNITY LAND TRUST
5.1 Pricing Overview:
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The resale price and equity sharing terms are intended to balance permanent affordability with equity-building opportunity. If a
Homeowner elects to sell their Housing Unit, the Homeowner shall receive the equity they paid down on their mortgage, plus a
limited amount of equity from Housing Unit’s appreciation in value. The following components shall be considered:
A. Base Price: The Base Price shall be the original purchase price of the Housing Unit by the Homeowner, including the sum of
the Homebuyer’s down payment and the amount mortgaged.
B. Equity Earned: The equity attributed to the Homeowner’s down payment and principal paid on the mortgage.
C. Equity Appreciation: The equity attributed to the appreciation of the Housing Unit’s value after its purchase by the
Homeowner.
5.2 Resale Price and Equity Determination:
When a Homeowner decides to sell, whether to the City or directly to another qualified household, the Resale Price and
corresponding Homeowner Equity Determination shall be the lower of the following two options:
A. Option 1 - Standard Formula:
o Resale Price: The Base Price plus 1.75% of the Base Price, not compounding, for each year the Homeowner has
owned the Housing Unit. Formula: (Base Price) + (1.75% x Base Price x years of ownership)
o Homeowner Equity Determination: Equity Earned plus Equity Appreciation capped at 1.75% of the Base Price for
each year of ownership, not compounding. Formula: (Earned Equity) + (Base Price x 1.75% x years of ownership)
B. Option 2 - Appraised Value:
o Resale Price: If the City believes the Resale Formula output is too high for market conditions, the City may, at its
expense, commission a market valuation of the Housing Unit. Formula: Appraised Value
o Homeowner Equity Determination: The Appraised Value less any outstanding mortgage debt. Formula: Appraised
Value – Mortgage Debt
For Housing Units newly added to the Program Inventory or Housing Units within the existing inventory that appraise lower than
the previously calculated Resale Price, the City may set the current Resale Price at the fair market value of the Housing Unit as
determined by an appraisal, considering the Housing Unit only and not the value of the land.
5.3 Ground Lease Terms, Fees, Renewal Option
A. Occupancy Requirement: Homeowners shall maintain the housing unit as a primary residence continuously over the term of
the ground lease.
B. Initial Lease Term: Ninety-nine (99) years.
C. Lease Renewal Term: Homeowners shall have the option to extend the terms of the Lease for ninety-nine (99) years.
D. Lease Expiration or Termination: Upon expiration or early termination of a Lease, ownership of the Housing Unit shall revert
to the City. Upon reversion to the City, the City shall pay the Homeowner, or the Homeowner’s heirs upon death, pursuant to
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Section 5.2: Resale Price and Equity Determination.
E. Transfer: Homeowner may transfer the lease to income qualified households upon approval by the City, including under the
following conditions:
a. A transfer to a new Homeowner due to a sale of the Housing Unit. The sale shall comply with Section 5.2: Resale
Price and Equity Determination and be approved by the City.
b. A transfer, as approved by the City, to certain heirs upon death including a spouse, designated guardian of the
Homeowner’s child under the age of 18, or a person living in the household for at least one year prior to homeowner’s
death. The eligibility of a ground lease transfer shall be analyzed and approved on a case-by-case basis.
F. Lease Fee: $50 per month. The Lease Fee may increase from time to time but may not be increased more than 3% year-over-
year.
G. Common Area Maintenance (CAM) Fee: For multifamily units, a CAM fee may be assessed that equates to the prorated cost
of expenses relating to the maintenance of common areas.
H. Maintenance and Repairs: The Homeowner is responsible for repairs and maintenance for both the land and improvements
unless otherwise covered by a CAM Fee.
I. Repair and Replacement Reserve: A modest fee may be collected on a monthly or annual basis and held by the City in a
Repair and Replacement Reserve account to be accessed by the homeowner for repairs and replacement of structural and
mechanical systems as approved by the City. Upon resale of a Housing Unit or termination of a Lease, funds accumulated in
the Homeowner’s Repair and Replacement Reserve shall be used by the City to fund improvements for Housing Units in the
CLT Program’s inventory.
5.4 Option to Purchase Terms
In the event that the Homeowner wishes to sell the Housing Unit, the Homeowner shall notify the City, and the City shall have the
option to purchase the Housing Unit pursuant to Section 5.2: Resale Price and Equity Determination. If the City declines or the
purchase option expires, the Homeowner has the right to sell the Housing Unit in coordination with the City and pursuant to the
terms contained herein. Any sale or transfer of a Housing Unit is subject to either an assignment of an existing Lease, with
approval by the City, or the execution of a new Lease with the City.
5.5 Property Taxes
Homeowners are responsible for paying property taxes on the Housing Unit, as assessed by Salt Lake County or other local taxing
districts. If the Housing Unit is financed with a mortgage obtained through the CLT Program, the City may hold an escrow
account to collect and pay property taxes and insurance on behalf of the Homeowner. If the Homeowner does not have mortgage
financing with the City, the Homeowner shall be responsible for paying property taxes directly to Salt Lake County.
6. DEFERMENT, MODIFICATION, AND DEFAULT
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6.1 Temporary Payment Modification or Deferment of Homebuyer Loan
If a Homeowner is experiencing an economic hardship, the Homeowner may apply for a modification of payments or a full or
partial deferment of payments to the City. To receive a payment modification or deferment, the Homeowner shall demonstrate that
its household’s DTI percentage exceeds 45% considering all revolving debt including the CLT Program payments. The portion of
monthly payment amount to be modified or deferred shall be based on the 45% DTI threshold. Request for modifications or
deferment shall be evidenced by a financial analysis of the household’s income and debt obligations. Modifications or deferments
may be approved by the Housing Program Funds Loan Committee for up to 12 months and may be reauthorized on an annual
basis for up to thirty-six (36) months, consecutive or nonconsecutive, during the term of the loan. If a loan deferment is granted,
the loan shall be extended for an equivalent period of time.
6.2 Modification of a Homebuyer Loan
If the ability to defer has been exhausted, a Homeowner may request a permanent modification to a Mortgage Loan issued by the
City. The modification may include adjustment of the term and/or interest rate to make the loan payments more affordable.
Modifications shall be reviewed by the Housing Program Funds Loan Committee and unanimously approved by the Director of
Housing Stability, Director of Community and Neighborhoods, and Chief Financial Officer or designee.
6.3 Default
If a Homeowner defaults on a Homebuyer Loan and/or Ground Lease and does not remedy the default, the City may terminate the
Ground Lease, and repurchase the Housing Unit subject to Section 5.2 Resale Price and Equity Determination.
7. REPORTING
Housing Stability shall submit a report to the City Council on an annual basis. The report shall include outcomes associated with the
Program including an overview of the inventory of Housing Units, purchase and sale transactions, and budget expenditures and revenue.
To keep the identity of Homeowners confidential, reporting shall include the census block group of the Housing Unit rather than the
address.
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Salt Lake City NOAH Preservation Pilot Program
Legislative Policies
DRAFT
1. GENERAL
1.1 Mission
The NOAH Preservation Program (“Program”) provides financial assistance to property owners (“Owners”) of naturally occurring
affordable housing (NOAH) to carry out property improvements in return for a long-term covenant to preserve affordability.
NOAH properties, constituting one of Salt Lake City’s largest supply of affordable housing stock, maintain affordable rents
without public subsidy and, therefore, do not have a covenant that requires the property to be rented at an affordable rate. The lack
of covenants and subsidies makes NOAH assets vulnerable to either redevelopment or disrepair, both of which create instability
for communities. When NOAH properties are redeveloped due to market speculation or upgrades that result in higher rents,
existing renters are displaced, and affordable housing units are lost. To preserve the city’s affordable housing stock and prevent
displacement, the Program shall provide low interest loans to Owners with the shared social goal of preserving affordability for
the long term.
1.2 Program Administration
The Program shall be administered by the Housing Stability Division, including staff to manage the administration and loan
servicing aspects of the Program.
2. PROGRAM FUNDING
2.1 Funding Sources
The Program shall be funded pursuant to the Housing Program Funds Policy.
2.2 Program Income
Program income shall be generated by the repayment of principal and interest on loans issued through the Program. The
financial management of program income shall be pursuant to the Housing Funds Policy.
2.3 Uses of Funding
Funding allocations shall be utilized to issue loans to eligible Owners.
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3. ELIGIBILITY REQUIREMENTS
3.1 Eligible Properties
Eligible properties shall be properties located within Salt Lake City boundaries that:
A. Currently do not have a deed restriction or covenant requiring affordable rents; or that have a project-based affordability deed
restriction or covenant that is at risk of being lost due to contract expiration.
B. Include housing units that are currently being rented at a rate affordable to households at or below 80% of the area median
income (AMI) as defined by the U.S. Department of Housing and Urban Development (HUD), hereafter referred to as an
Affordable Unit. An Affordable Unit shall have an annualized rental rate, including cost for basic utilities, that does not
exceed thirty percent (30%) of the maximum monthly income permissible for the applicable AMI, assuming a household size
equal to the number of bedrooms in the unit plus one.
C. Demonstrate a gap between the funding required to improve, maintain, and/or operate the property while maintaining rental
rates for the Affordable Units and the amount of revenue available.
D. Are current and in good standing with the City on real estate taxes, water, and sewer payments.
3.2 Eligible Borrowers
Eligible borrowers include for-profit, non-profit, and limited equity cooperative (LEC) organizations that are existing owners or
buyers of NOAH properties, and that:
A. Demonstrate property management experience; or that have obtained technical assistance to ensure the successful
management and operation of NOAH properties.
B. Are tax compliant and current on all City loans related to existing projects undertaken by the borrower and/or any related
entity of the borrower.
C. Possess all necessary legal and corporate authorization to incur the obligations of the Program financing.
D. Possess the appropriate business license, or commit to obtain the appropriate business license, to operate rental housing wit hin
Salt Lake City.
E. Are enrolled in Salt Lake City’s Landlord Tenant Initiative.
3.3 Eligible Activities
A. Capital expenses for emergency stabilization activities including but not limited to roof repair, mold remediation, building
systems, building envelope, life safety issues, or other physical needs that could impact the health and quality of life for
current residents, or compromise the building structure.
B. Capital expenses to provide necessary renovations to ensure the long-term viability of the property with the Affordable Units.
Renovations may include, but not be limited to kitchen/bathroom upgrades, paint and flooring upgrades, historic preservation
activities, and common area improvements.
C. If in conjunction with capital expenses, operating expenses may be eligible to address operating shortfalls and to stabilize the
property.
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D. Capital expenses relating to the improvement or preservation of a LEC, or other shared equity model, in which a self-
governing group of residents organize to form a corporation or cooperative to purchase the property. Eligible activities include
costs related renovation/rehabilitation required to ensure the long-term viability of the LEC.
4. FUNDING TERMS AND CONDITIONS
Funding awards shall be based on the following terms and conditions:
Affordability
Mechanism
Master lease with a housing
authority or other qualified
agency
Deed restriction
Rent Restriction Fair Market Rent or the
HUD Local Payment
Standard
Up to 30% AMI 31 to 50% AMI 51 to 80% AMI
Income Restriction Up to 50% AMI with a
housing voucher
Type of Assistance Up to $2,000 grant per
Affordable Unit and loan
Up to $5,000 grant per
Affordable Unit and loan
Up to $2,000 grant per
Affordable Unit and loan
Loan
Debt Coverage
Ratio
1.15 1.10 1.15 1.20
Affordability Term At least 15 years or the term of the loan, whichever is greater
Loan Term Up to 30 years
Interest Rate 1% 0% 1% 3%
Payment Type Deferred payments for the
first five (5) years, monthly
amortized payments
thereafter
Deferred payments Deferred payments for
the first five (5) years,
monthly amortized
payments thereafter
Monthly amortized
payments
Maximum
Assistance
Up to 90% of project costs, with a maximum of $50,000 per Affordable Unit
Equity
Contribution
10% of the project cost n/a 10% of the project cost 20% of the project cost
Collateral Deed of trust
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5. REQUIREMENTS
A. Rent Restriction: The monthly rent for the Affordable Units, including all required housing costs per unit, such as utilities and
other charges uniformly assessed to all apartment units other than charges for optional services, shall be as follows:
a. Deed Restricted Units: The maximum monthly gross rental rate shall not exceed thirty percent (30%) of the maximum
monthly income permissible for the applicable AMI, assuming a household size equal to the number of bedrooms in
the unit plus one.
b. Master Lease Units: The maximum monthly gross rental rate shall not exceed the fair market rent (FMR) or the
maximum HUD local payment standard for the Housing Choice Voucher (HCV) program, whichever is lower.
B. Income Restriction: The Affordable Units shall be made available only to Eligible Households that are qualifying occupants
with an annual income at or below the AMI as applicable for the given Affordable Unit for Salt Lake City Utah, HUD Metro
FMR Area as periodically determined by HUD and adjusted for household size. Eligible Households shall qualify upon
moving into an Affordable Unit.
C. Tenure: Affordable Units shall be provided as permanent housing as evidenced through a lease with a minimum tenure of six
(6) months.
D. Improvement, Operating, and/or Marketing Plan: Borrowers shall provide physical remediation plan, operating plan, and/or
management strategy, as applicable to the project.
E. Fair Housing: Borrowers shall establish an affirmative Fair Housing Marketing Plan, including offering units to HCV and
other tenant-based rental assistance voucher holders.
F. Anti-displacement: Tenants may not be permanently displaced due to rehabilitation activities. Borrowers must establish a
tenant relocation plan, in accordance with the Uniform Relocation Act, if tenants are temporarily displaced as a result of
rehabilitation activities.
G. No Net Decrease in Affordable Units: Projects shall not result in a net decrease of affordable housing units, provided however
that a net decrease in units may be approved by the City on a case-by-case basis if the net decrease in units is to facilitate
larger unit sizes with more bedrooms.
H. Deferred Payments: Deferred payments shall be due upon sale or transfer of the Property, or at the expiration of the
Affordability Term or Loan Term. For units at 30% AMI and below, payments may continue to be deferred as long as the unit
continues to be restricted at 30% AMI and below, even if the loan term has expired.
6. APPROVAL PROCESS
Program funds shall first be available through a competitive notice of funding availability (NOFA) process, with annual Program funds
being offered through one or more NOFAs on an annual basis. For each issued NOFA, the City shall evaluate and consider applications
for approval as follows:
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A. Eligibility Review: Applications shall be reviewed by Housing Stability to verify that eligibility requirements are met.
B. Review Committee: For applications that meet the basic eligibility requirements, applications shall be forwarded to the Housing
Program Funds Loan Committee for review and recommendation. Applications that the Housing Program Funds Loan Committee
ranks competitively shall be recommended to the City Council for a funding allocation.
C. City Council: The City Council shall make the final selection of projects to receive a funding allocation, subject to the necessary
requirements to execute funding agreements.
If Program funds do not get disbursed through the NOFA, the City may offer the funds on a first -come, first-served basis, subject to a
review by the Housing Program Funds Loan Committee and approval by the City Council.
7. LOAN DEFERMENT AND MODIFICATION
In the event of extenuating circumstances, the City may provide payment deferment or a loan modification. Such adjustment to l oan terms
shall be considered on a case-by-case basis and shall be subject to a thorough review of the project's financial standing and other relevant
information. The process for providing a loan deferment or modification is as follows:
A. Deferment: The Director of Community and Neighborhoods may elect to provide the Borrower a temporary forbearance or
deferment of payment for up to twenty-four (24) months, consecutive or nonconsecutive. If a loan deferment is granted by the
City, the loan term shall be extended for an equivalent period.
B. Modification: If the 24-month loan deferment has been exhausted, the Borrow may apply for a modification of loan terms to
facilitate affordability of the Borrower’s monthly loan payments. The Housing Program Funds Loan Committee shall review
such requests and provide a recommendation that is forwarded to the City Council, who shall consider and act upon all such
requests.
8. REPORTING
Housing Stability shall submit a report to the City Council on an annual basis. The report shall include outcomes associated with the
Program, including a summary of projects completed including a summary of units and affordability levels, number of new grants and
loans, total outstanding balance of the loan portfolio, and number of delinquencies.