Building Affordable in Salt Lake City: an Affordable Residential Development Guide

BUILDING AFFORDABLE IN SALT LAKE CITY: AN AFFORDABLE RESIDENTIAL DEVELOPMENT GUIDE

2019 PAGE 2 www.slc.gov/HAND 801-535-7712, TTY711 Lake City,Utah84114 Mailing Address:POBox145488, Salt Address: 451S.StateStreet, Room406 Contact an affordableandequitablecityforallofSaltLake’s residents. help fuelinnovationandmarketdynamics.Togetherwecanbuild housing needsintheCity,butprivatesectorisessentialto Salt LakeCityhelpstosettheprioritiesandpathfor or establisheddeveloperslookingtobuildaffordableunits. process, thefollowingguideisanoverviewofresourcesfornew self-finance orgatherinvestors.Toassistdeveloperswiththis a project,whetherdevelopersbuildorrenovate,selllease, a significantcommitmentofresourcestoeffectivelydevelop Producing affordablehousingisnotacasualundertaking.It Housing Plan,2018-2022. housing affordability,asoutlinedinGrowingSLC:AFiveYear developers toencourageandfacilitateinnovativesolutions To addressthishousingcrisisSaltLakeCityworkscloselywith demand increasesbothhomepricesandthecostofrent. preparation, materials,andlabor.Thislackofunitsrising more unitsintheCityduetoincreasedcostsforland,site Developers arefacedwithlimitationstobuildingorrehabilitating residents andworkers. increasingly becomingacityoutofreachformanyour community inwhichmanywanttoliveandwork,butitis this growthinpopulationandemploymentsupportsavibrant Salt LakeCityisoneofthefastestgrowingcitiesinnation; DEVELOPMENT NEIGHBORHOOD HOUSING AND INTRODUCTION slcrda.com 801-535-7240 Lake City,Utah84114 Mailing Address:POBox145518, Salt Address: 451S.StateStreet, Room118 Contact AGENCY REDEVELOPMENT THE PAGE 3 communities and models that decrease the need communities and stalls. for cars or parking trends. housing For a complete overview of Salt Lake City’s to read goals and objectives, visit HAND’s website 2018- Growing SLC: A Five Year Housing Plan, Housing 2022, and interact with the City’s online Dashboard data. » www.slc.gov/hand/housingplan Promote transit-oriented development, walkable • Promote transit-oriented housing demands and • Be responsive to evolving prohibit needed housing types or create prohibit needed housing burden. excessive developer types that meet the underutilized housing and unique needs of the City’s diverse population improve housing choices into the future. of which diversifies the economic mix neighborhoods to promote economically integrated communities. as a person’s likelihood for social mobility indicators. identified through quality-of-life low-income housing, including rehabilitating that is aging or in-disrepair housing stock affordable. provide solutions to rising development costs, and creative housing design that improves form, function, development and maintenance. recognized sustainable building and design practices, and energy efficient technologies that use fewer natural resources and lower consumers' utility costs. the next generation of housing financing. SLC HOUSING AFFORDABILITY PRIORITIES AFFORDABILITY HOUSING SLC which limit housing density, which limit housing • Remove barriers of new or • Support the development • Encourage projects that are mixed-income, • Invest in Areas of Opportunity that expand • Implement strategies that preserve a range of that • Support innovative construction methods • Seek opportunities that incorporate industry- • Work with public and private investors to spur

DEVELOPMENT GUIDE AFFORDABLE RESIDENTIAL PAGE 4 AND REDEVELOPMENT AGENCY SLC’S HOUSING AND NEIGHBORHOOD DEVELOPMENT » slc.gov/hand that cansupportnewgrowth. neighborhoods areequitable,integratedcommunities homeownership andrentalunits,ensure our homes, providenewopportunitiesforaffordable HAND workstostabilizehouseholdsintheircurrent housing opportunities.Throughavarietyofprograms, owned property,providingfunding,andcreating HAND buildsneighborhoodsbymaximizingcity sustainable neighborhoods. To developandenhancelivable,healthy, » slcrda.com projects throughouttheCity. tax incrementfinancingtofund affordablehousing charged withreinvestingin local communitiesthrough and publicspaces.UnderUtahCode17C,theRDAis City’s housingopportunities,commercialvitality, strategic developmentprojectsthatenhancethe foster authenticcommunities.TheRDAcatalyzes to improvelivability,sparkeconomicgrowth,and revitalizes neighborhoodsandbusinessdistricts The RedevelopmentAgencyofSaltLakeCity(RDA) other publicentities,tostimulateredevelopment. Lake City,SaltCounty,theStateofUtah,and City MasterPlan.TheRDAwillparticipatewithSalt compliance withandimplementationoftheSaltLake households withinSaltLakeCity,andencourage development ofhousingforlowandmoderateincome economic developmentofSaltLakeCity,encourage the To improveareasofSaltLakeCity, encourage WHAT HAND DOES HAND'S MISSION WHAT THE RDA DOES THE RDA’S MISSION INDEX 25 23 22 21 19 18 15 14 11 8 6 CITY RESOURCES TECHNICAL ASSISTANCE LOCAL AFFORDABLE HOUSING DEVELOPERS & STATE & COUNTY RESOURCES NATIONAL FINANCING, RESOURCES AND TECHNICAL ASSISTANCE ENERGY EFFICIENT INCENTIVES NATIONALAND LOCAL IMPACT INVESTMENTS FEDERAL RESOURCES INNOVATIONS IN HOUSING AFFORDABILITY DOES IT PENCIL? THE NEED FOR HOUSING AFFORDABILITY HOUSING AFFORDABILITYHOUSING TERMS

PAGE 5 Housing DEVELOPMENT GUIDE AFFORDABLE RESIDENTIAL PAGE 6 Affordability • • kinds ofaffordablehousingunits,including: experiencing homelessness.Therearedifferent people withdisabilitiesonfixedincomesorthose incomes, includinglow-wageworkers,seniorsor are thosewithlow,very-low,andextremely-low (0-80%). Eligible,income-verifiedhouseholds range ofeligibleAreaMedianIncomehouseholds These unitsaredeed-restrictedandset-asidefora or financedhousingforlow-incomehouseholds. “Affordable housing”isgovernment-subsidized Affordable Housing households ofanyincomelevel. affordability” acrossthecountry,andappliesto widely usedandacceptedmeasureof“housing mortgage andutilities).The30%standardisa income towardshousingexpenses(rentor is payingnomorethan30%oftheirtotalgross Housing isconsideredaffordablewhenahousehold Housing Affordability others withinthisguide. following definitionsoutlinethesetermsand Affordability areoftenusedinterchangeable.The The termsAffordableHousingand HOUSING AFFORDABILITYHOUSING TERMS the numberofbedrooms). Rent calculatedontheirAreaMedianIncomeand eligible householdspayareducedFair-Market Set-aside, income-restrictedunits(inwhich income towardsrent). households onlypay30%oftheirtotalgross based subsidizedvouchers(inwhicheligible Public housingandproject-ortenant- Terms priorities. this indextodeterminetheirhousingpoliciesand considered lowincome.Localgovernmentsalsouse funds canonlybeusedtoassisthouseholdthatare used. Dependingonthegranttypeandactivity, locale thataffecthowfederalgrantfundscanbe (HUD) releasesincomeguidelinesforeveryU.S. Department ofHousingandUrbanDevelopment a region’sincomedistribution.Annually,theU.S. The AreaMedianIncome(AMI)isthemidpointof Area MedianIncome impossible. securing andmaintaininghousingarealmost deeply affordablehousingtheoddsofthosegroups people withdisabilitiesonSocialSecurity.Without 0-30% AreaMedianIncome,suchasseniorsor This subsidizedhousingtargetspeopleearning Deeply Affordable the RentalVoucherprogram. payment standardusedtocalculatesubsidiesunder for theSection8voucherprogramandserveas determine theeligibilityofrentalhousingunits rent foramodestapartment.FairMarketRents locale, whichrepresentstheestimatedmonthly Average rentalratessetbyHUDforeveryU.S. Fair MarketRent rent ratesthataccommodateavarietyofincomes. variances butensuresthatprojectshaveconsistent formula istechnicalandalsoaccountsforslight HUD withacombinationofFairMarketRent.The rent usespublishedincomelimittablesfrom The industrystandardforcalculatingaffordable Affordable Rent PAGE 7 Terms DEVELOPMENT GUIDE DEVELOPMENT Affordability AFFORDABLE RESIDENTIAL AFFORDABLE Housing Qualified Census Tracts tracts, or Housing investors evaluated census by the Census equivalent geographic areas defined Underserved, Bureau for communities defined as: Distressed, Severely Distressed or Low-and Moderate-Income. Areas of Opportunity that Geographical areas that provide conditions mobility, expand a person’s likelihood for social as defined through an analysis of quality-of- rate, life indicators such as: homeownership educational poverty, cost-burdened households, proficiency, unemployment rate, and labor force participation. Fair Housing Title VIII of the Civil Rights Act of 1968 (aka the Fair Housing Act) prohibits discrimination in the sale, rental, and financing of dwellings based on race, color, religion, sex, or national origin. States and local governments may include additional protected groups under Fair Housing. Affordability Index for Homeownership Index for Affordability Realtors’ affordability Association of The National or not a typical family index measures whether mortgage loan on a typical home. could qualify for a defined as the national median- A typical home is home as calculated priced, existing single-family by the Association. Cost Burdened of a household’s total gross When 30% of more housing costs. income is spent on Extremely or Severely Cost Burdened total gross When 50% of more of a household’s income is spent on housing costs. Middle Housing Middle Housing are building types, such as duplexes, fourplexes, and bungalow courts, which provide diverse housing options. The term Missing Middle Housing is used to describe local housing policies that prevent these types of needed housing that provide a scale of affordability, in favor of detached single family homes and mid-rise to high-rise apartment buildings. Deed Restrictions / Deed Riders are placed Affordability deed restrictions that a low- and on the property to preserve them as or homeowner moderate-income housing rentals units. Restrictions range from 15 to 50 years, and the terms of the restrictions remain in place if properties are sold. Developments that includes set-aside income- Developments that includes set-aside of housing, restricted units, and/or diverse types single family such as apartments, town homes, or levels in the homes to promote a range of income same development. Mixed-Income Housing A majority of America’s affordable housing A majority of America’s subsidies and is referred to as operates without Affordable Housing (NOAH). Naturally Occurring These mostly multi-family rental properties provide (generally built between 1940 to 1990) and moderate- housing at rates affordable to low- have income households. On average, NOAH and smaller square footage, limited amenities, suffer from poor upkeep. Naturally Occurring Affordable Housing Naturally Occurring Market Rate Rent / Market Value Rent Rate Rent / Market Market owned but charges that is privately Rental housing the property amenities as rents consistent with market prices and conditions. well as local housing owners do not receive Typically these property direct subsidies. DEVELOPMENT GUIDE AFFORDABLE RESIDENTIAL The PAGE 8 Need for Housing inability tocomfortablypayforhousing. housing costscomparedtostagnantwages,thusan Recession, manyAmericansarefacedwithrising the housingmarketreboundsfromGreat Although theeconomycontinuestogrowand (land, laborandmaterialsareup20-30%). family zoning),andariseindevelopmentcosts incentives, andlocalpoliciesthatfavorsingle over renters(prioritizedfederalfundsandtax housing policieshavefavoredhomeowners independent, andnotfreeing-upunits),historical shifting demographics(peoplearelivinglonger, The mainreasonsforthiscrisisaredueto: compared withonly20%in1960. and nearly50%ofallrentersarecost-burdened, spend morethanhalftheirpaycheckonrent, twice therateofwagegrowth,11millionAmericans afford tobuyahome,homepricesarerisingat Nearly two-thirdsofrentersnationwidecan’t lack ofavailableandaffordableresidentialunits. The UnitedStatesisfacingacrisisintheformof THE NEED FOR HOUSING AFFORDABILITY 10% 20% 30% 40% 50% 0 Affordability SALT COUNTY LAKE Inﬂation, 2010-2017 Rent, Renteredianncome,and Percent Changeinveragepartment 403% Average Asking Rent 224% Median Income Renter 124% Inﬂation Institute andtheDavidEcclesSchool ofBusiness. Rates intheGreaterSaltLakeRegion. (2019).KemC.GardnerPolicy The SaltLakeApartmentMarket:An AnalysisofApartmentRental Housing Studies,HarvardUniversity. The StateoftheNation'sHousing.(2018) JointCenterfor Sources: inflation Rent hasoutpacedincomegrowthand five years. 78%; morethantwo-thirdsoccurredinthelast From 200to2018,rentinSaltLakeCountyrose rising rents Salt LakeCountyhasexperiencedrapidly County Apartment RentinSaltLake the region. pressure onhousingaffordabilitychallengesin focus onhigh-enddevelopmentareincreasing average rentsinthecounty.Risingpricesanda high-end marketandhavesomeofthehighest Many newapartmentscommunitiestargetthe apartment rentaldemand Changing householdpreferencesisdriving this numbernearlydoubledto20,554. units intheZIPcodesofSaltLakeCity.By2018, In 2000,therewerejustover12,000apartment apartment growthintheregion Salt LakeCityremainsthecenterof median income. inflation andalmostdoubledincreasesinrenter Salt LakeCountymorethandoubledtherateof From 200to2018,growthinaveragerent AT A GLANCE: PAGE 9 Affordability DEVELOPMENT GUIDE DEVELOPMENT Housing AFFORDABLE RESIDENTIAL AFFORDABLE for Need The $1,440 + /mo $332,500 $2,000 + /mo $415,000 $1,440/mo $250,000 $775/mo Real Estate Development Manager, Chemist, Electrical Engineer, Human Resource Manager, Nurse Practitioner, Software Developer Low-Income Families Teacher, Accounting Clerk, Legal Secretary, Physical Therapy Assistant, Truck Driver, Flight Attendant, Automotive Mechanic Moderate-Income Families Electrician, Special Education Teacher, Architect, Sales Representative, Chef, Chiropractor, Social Worker High-Income Families Extremely Low-Income Seniors and People Seniors and People Low-Income Extremely with Disabilities older, people with disabilities, People 65 years and fixed income such as social people who live on security Less than $578/mo Low-Wage Workers Construction Worker, Childcare Providers, Ski Patrol, EMT, Fast Food Cook, Cashier, Visual Artist, Custodian, Hotel Clerk SALT LAKE CITY LAKE SALT INDIVIDUAL Affordable Home: Affordable Home: Affordable Home: AREA MEDIAN INCOME MEDIAN AREA FOR FAMILY OF 4 OF FAMILY FOR FOR FAMILY OF 4 OF FAMILY FOR FOR FAMILY OF 4 OF FAMILY FOR Affordable Rent + Utilities: Affordable Rent + Utilities: Affordable Rent + Utilities: Affordable Rent + Utilities: Affordable Rent + Utilities: Affordable Rent + FOR AN INDIVIDUAL AN FOR $99,240 + PER YEAR YEAR PER + $99,240 < 30% AMI 30% < AT OR BELOW $17,400 PER PER $17,400 BELOW OR AT $66,150 - $82,700 PER YEAR YEAR PER $82,700 - $66,150 $41,350 - $66,150 PER YEAR YEAR PER $66,150 - $41,350 $17,400 - $28,950 PER YEAR YEAR PER $28,950 - $17,400 30% - 50% AMI 50% - 30% 50% - 80% AMI 80% - 50% YEAR, POVERTY LEVEL, FOR AN AN FOR LEVEL, POVERTY YEAR, 80% - 100% AMI 100% - 80% 120% - 150% AMI 150% - 120% Source: Federal Home Income Guidelines for Salt Lake City MSA (Salt Lake County FY 2019). DEVELOPMENT GUIDE AFFORDABLE RESIDENTIAL The PAGE 10 Need for Burdened. In SaltLakeCity,50%ofhouseholdsareCost household’s incomeisspentonhousingcosts. Cost Burdened:When30%ormoreofa Housing Extremely Cost-Burdened Source: HousingMarket Update;SaltLakeCityCorporation (2016).BBCResearch &Consulting. Affordability COST BURDENED SALT LAKE CITY Cost-Burdened Cost Burdened. In SaltLakeCity,30%ofhouseholdsareSeverely a household’sincomeisspentonhousingcosts. Extremely CostBurdened:When50%ormoreof Not Cost-Burdened Does it Pencil? AFFORDABLE RESIDENTIAL DEVELOPMENT GUIDE DOES IT PENCIL?

For a developer, building even one affordable each year. High construction costs and lengthy residential unit can be a difficult and complex development processes make replacing all of these effort that may require several layers of financing units with new housing very difficult. Preserving and a unique operating model. Developers rely on the existing affordable stock is therefore critical to loans and other sources to fund construction before meeting the housing needs of low- and moderate- residents move in, but developers can only get income households. those loans and equity sources if the development will produce enough rent revenue to pay back the Acquisition / Rehabilitation loans and provide a return to investors. Acquisition/rehab of renter-occupied buildings can help provide existing tenants with the economic Gaps exist between what affordable projects cost stability and physical improvements they need to construct and maintain, the rent amount that to stay in their communities and to thrive in all low-income households are able to pay, and aspects of their lives. This strategy can also act as long-term obligations. Government subsidies a neighborhood revitalization tool by addressing are the main source for filling these gaps, but issues of blight and physical decay on both vacant PAGE 11 increasingly developers are utilizing creative and and resident-occupied properties. Additionally, cost-cutting design and construction methods and/ acquisition/rehab can be significantly more or partnering with non-traditional financers. cost-effective than new construction depending on the amount of rehabilitation required, with Rather than looking solely at the initial costs reaching as low as one half those of new development costs of units, affordable developers construction. need to estimate the costs of both developing a property and maintaining it in decent condition for Development Basics: up to a 50-year lifecycle. • Market analysis • Site and building information TYPE OF DEVELOPMENT: • Capitalization Rates (Cap Rates) New Construction • Debt Service Coverage Ratios (DSCR) Major new construction costs include: land • Pro Formas acquisition, construction (materials and labor), • Property management and developer fees. Other fees include: design fees, construction loan interest, permanent financing Development Variables: fees, reserves, and project management fees. • Location Overall, developers can't build if they aren’t going • Remediation to earn any money from the project. • Average unit size • Project size Preservation • Building type Foreclosure, age-related deterioration, rising • Weather conditions maintenance and utility costs, demolition, and • Amenities expiring use-restrictions and affordability • Market Forces controls cause a significant loss of affordable units Does it Pencil? AFFORDABLE RESIDENTIAL DEVELOPMENT GUIDE

Online Pro Forma samples and tools for development and operations:

• HUD • Utah Housing Corporation hudexchange.info/resource/746/sample- utahhousingcorp.org pro-forma-and-guide-singlefamily-rental- development • Olene Walker Housing Loan Fund jobs.utah.gov/housing/affordable/owhlf/index. • Urban Institute and the National Housing html Conference apps.urban.org/features/cost-of-affordablehousing

• Lifecycle Cost Modeling Tool lcycle.org

2019 INCOME LIMITS: SALT LAKE COUNTY Number of persons in family AMI 1 PERSON 2 3 4 5 6 7 8 PAGE 12 PAGE

40% $23,160 $26,480 $29,800 $33,080 $35,760 $38,400 $41,040 $43,680

50% $28,950 $33,100 $37,250 $41,350 $44,700 $48,000 $51,300 $54,600

60% $34,740 $39,720 $44,700 $49,620 $53,640 $57,600 $61,560 $65,520

80% $46,320 $52,960 $59,600 $66,160 $71,520 $76,800 $82,080 $87,360

2019 FAIR MARKET RENTS: SALT LAKE COUNTY

Bedrooms

AMI STUDIO 1 2 3 4 5 Sources: Based on data acquired 40% $578 $620 $745 $860 $960 $1,058 from the U.S. Department of Housing and Urban 50% $723 $775 $931 $1,075 $1,200 $1,323 Development's FY 2019 Income Limits 60% $868 $930 $1,117 $1,260 $1,440 $1,588 Documentation System ? PAGE 13 Pencil it Does DEVELOPMENT GUIDE DEVELOPMENT AFFORDABLE RESIDENTIAL AFFORDABLE 8 construction. Begin reports required Submit Davis-Bacon) as (such complete and funders to regularly. draws Determine what Determine is project the financing timeline and for eligible applications. of 4 Find a site that works that site a Find by project the for zoning local reviewing code. planning and or zoning if Determine changes planning other occur. must 7 permits. for Apply planning Attend meetings commission meetings funding and needed. as 3 10 If awarded Federal, awarded If funds, local or State, required all complete reviews environmental strings. other and 6 Team up with an with up Team afford- experienced developer housing able build you help can who development your archi- including team, legal, contractor, tect, tax-credit financing, investor. 2 Ensure property Ensure to adheres management investor and funder all complet- by regulations monitoring ongoing ing compliance. and

SAMPLE DEVELOPMENT PROCCESS DEVELOPMENT SAMPLE

Approach private Approach submit financers, housing low-income applica- credit tax to out reach and tions, financers. secondary 1 Identify the popula- the Identify serve, to want you tion want you services the potential and offer, to partners. nonprofit

5 9 Construction certi- Cost completed. certificate and fication Begin occupancy. of units. up leasing DEVELOPMENT GUIDE AFFORDABLE RESIDENTIAL Innovation PAGE 14 in • Affordablehousingpreservationprograms • Green/Energyefficiencies,reducingutilitycosts • Adaptivereuse/Underutilizedhousing • Sharedequity/CommunityLandTrusts • SharedhousingorCo-housing • Non-traditionalfinancers-i.e.employers, • 3-Dprintedhomes • Modularhomesandapartments • SocialImpactInvesting Innovations inHousingtoWatch: make housingaffordableforeveryone. the stigmaofaffordablehousingandstrivingto Additionally, theseinnovatorsaremovingbeyond the traditionallimitationsofaffordablehousing. overcoming dysfunctionsindevelopmentand design, constructionandmanufacturing, products byexaminingtheintegrationbetween Innovators arereimaginingbuildingsasdesigned to politicalwhimsandbudgetcuts. government subsidies–whicharefewandsubject that affordablehousingcanonlybebuiltwith finance arebreakingthelong-heldstandard Disruptive modelsindesign,constructionand housing market. demand aswellcreatelong-termchangestothe of traditionalsubsidymodelstomeetthecurrent challenging thehousingindustrytothinkoutside have skyrocketedbothinconstructionandrent, Over thepastfiveyears,nationalhousingcosts INNOVATION IN HOUSING AFFORDABILITY Housing and theneedforcarsorparking education institutions,andhealthcare Affordability affordability in perpetuity. and placedintheCity’sCommunity LandTrust assuring Welcome HomeHomebuyerAssistance programrecipient required ofastandardhome.What's more,itisaHAND insulated basementslabtooperate onone-sixththeenergy appliances, triple-panewindows, sealedatticspace,and It isPassiveHouseCertifiedand reliesonsolar,EnergyStar ft, 4bdrm,2.5bathhomeinthePopularGroveNeighborhood. Constructed byHAND,theEmeryPassiveHouseisa2,100sq » ivory-innovations.org and design&construction. compelling ideasreachingacrosspolicy,finance, Ivory Innovationsnetworktopromotethemost provides monetaryawardsandleveragesthe the IvoryInnovations'Prizecompetition housing affordabilitychallenges.Additionally, to inspirecreativesolutionslocalandnational the UniversityofUtah,IvoryInnovationswork Located inSaltLakeCityandpartnershipwith Ivory Innovations • • • Publications: Innovations inHousingAffordability LOCAL RESOURCES Shelterforce.org CityLab.com Curbed.com PAGE 15 Resources DEVELOPMENT GUIDE DEVELOPMENT Federal AFFORDABLE RESIDENTIAL AFFORDABLE HUD LOAN PROGRAMS LOAN HUD HUD (the US Department of Housing and Urban HUD (the US Department of Housing Housing Development) and the FHA (the Federal separate Administration) were founded as two more entities. However, they now share far planned. responsibilities than either had originally residential and HUD oversees and guarantees both programs. multi-family lending and insurance in 1965, The FHA, which became a part of HUD aiding in the deals primarily in residential lending: Americans by purchase of primary residences for family homes providing loan insurance for single to four units. and multi-family properties with up of HUD, it Although the FHA is now a subsidiary is responsible for the overall management and administration of HUD's Multi-family Housing Programs. HUD, however, ultimately provides the insurance. » hud.gov/program_offices/housing/fhahistory HUD-Insured Loans A common misconception is that HUD makes loans to developers and real estate investors for the recapitalization, acquisition, rehabilitation, and construction of multi-family properties. In reality, HUD only underwrites and insures these loans, which are made by investors. The HUD and FHA insurance programs were created to ensure the ongoing availability of capital for the acquisition, UHC’s Multifamily Finance Department is UHC’s Multifamily with developers and committed to partnering State and Federal Tax Credits investors to utilize These resources facilitate the and bond financing. and rehabilitated apartments development of new for low-income families, senior to provide housing citizens, and more. » utahhousingcorp.org/pdf/2011%20LIHTC.pdf HUD & FHA FEDERAL RESOURCES FEDERAL THE LOW-INCOME HOUSING TAX TAX HOUSING LOW-INCOME THE (LIHTC) CREDIT The Utah Housing Corporation (UHC) is Utah’s Housing Finance Agency (HFA) and manages Utah’s LIHTC program and allocation process. Housing Finance Agency LIHTC 9% vs. 4% LIHTC can be Claimed in proportion over 10 years, rental used to construct new or renovate existing subsidize buildings. The LIHTC is designed to unit costs either 30% or 70% of the low-income is known in a project. The 30% subsidy, which covers as the so-called automatic 4% tax credit, new construction that uses additional subsidies or the acquisition cost of existing buildings. The 70% subsidy, or 9% tax credit, supports new construction without any additional federal subsidies. The 9% tax credit is the single most important tool for providing financing for affordable housing. Because of the amount of equity created as a result of the 9% credits, many projects using this tool are able to provide units to those with extremely low and low incomes. The Low-Income Housing Tax Credit (LIHTC) is the The Low-Income for creating or preserving most important resource in the United States today. The affordable housing by HUD and available to LIHTC database, created on the public since 1997, contains information of housing units thousands of projects and millions by the Tax placed in service since 1987. Created gives State Reform Act of 1986, the LIHTC program the equivalent and local LIHTC-allocating agencies authority to of nearly $8 billion in annual budget rehabilitation issue tax credits for the acquisition, targeted to or new construction of rental housing lower-income households. » huduser.gov/portal/datasets/lihtc.html DEVELOPMENT GUIDE AFFORDABLE RESIDENTIAL Federal PAGE 16 Resources FHA-insured construction loansoffer40yearsof lower payments. coverage ratios.Why?Longer amortizationsmean the industryandmostflexibilityondebtservice amortizing, creatingthelongestamortizationsin sets theseloansapart:allFHAarefully terms intheindustry.Butsomethingelsealso FHA insuredfinancingprovidesforthelongest HUD andFHAAmortizationMaturities assist throughouttheentireprocess. require anexperiencedfinancialintermediaryto can stilltake8-12monthstoclose,andoften over theyears.Despitethat,HUD221(d)(4)loans embraced changeandnewoperationalefficiencies by thisformoffinancing.Thankfully,theFHAhas smaller multi-familyprojectsareoftenintimidated multi-family developmentloans,developersof the costsinvolvedwithoriginatingHUD-insured bottom fortheloanamounts.However,becauseof $100M ormore.Ingeneral,thereisnohardcap developments. Loansgenerallyrangefrom$2to income, rentalassistance,andothermulti-family multifamily developersbuildingmarketrate,low- The FHAorHUD221(d)(4)programinsures HUD LoansforMulti-familyDevelopers rental assistance,LIHTC,etc. further considerationsforlow-incomehousing, multi-family propertiesacrossthenation,with insures loansforthefullspectrumofmarketrate income housing.Inreality,theHUD223(f)program Section 8properties,subsidizedhousing,orlow- properties. ManybelievethatHUDonlyfocuseson the refinancingoracquisitionofmulti-family The FHAorHUD223(f)programwascreatedfor or AcquiringMulti-familyProperties HUD Refinancing,Building,Rehabilitating, subsidized housing. apartments, aswellaffordablepropertiesand all apartmentproperties.Thisincludesmarketrate rehabilitation, anddevelopmentrefinancingof Freddie Mac10-yearfixed-rateloans. leads toratesthatarelowerthanFannieMaeand multifamily loansearnaAAAcreditrating,this since theyaregovernment-insuredFHAandHUD in thecaseofaninverseyieldcurve).However fixed rate,thehigherinterestrate(exceptfor As industryprofessionalsknow,thelonger property's remainingeconomiclife. and amortizationdoesnotexceed75%ofthe amortizing forupto35years;providedtheterm For example,HUD223(f)insuredloansarefully to achieveverylongtermfullyamortizingloans. for purchaseorrefinancearesimilarlyqualified multifamily developmentbusiness.Existingassets the only,fixed-rateconstructionloansin 221(d)(4) providesoneoftheveryfew,ifnot financing duringtheconstructionperiod.HUD fixed-rate financingplusupto3additionalyearsof addition, theytakelonger to close(223floans which maycostupwardsof $2,500peryear.In HUD-insured loansrequire annualfinancialaudits Additional HUD/FHAConsiderations » hud.loans/hud-multifamily-loans Payment) contracts. to long-termSection8HAP(HousingAssistance assistance programstoconverttheirproperties properties usingcertainHUDlegacyhousing Demonstration (RAD)program,whichallows These loansalsofitwellwiththeRentalAssistance encourage investmentinaffordableproperties. a dollar-for-dollarfederaltaxcreditinorderto Credit (LIHTC)program,whichoffersinvestors when combinedwiththeLow-IncomeHousingTax HUD 221(d)(4)and223(f)arealsoagreatfit requirements. HUDmulti-familyloanssuchasthe and lowermortgageinsurancepremium(MIP) service coverageratio(DSCR)requirements, loan tovalue(LTV)allowances,reduceddebt for affordableproperties.Theseincludeincreased HUD multi-familyloansincludespecificbenefits HUD Multi-familyLoans PAGE 17 Resources DEVELOPMENT GUIDE DEVELOPMENT Federal AFFORDABLE RESIDENTIAL AFFORDABLE OPPORTUNITY ZONES TAX CREDITS TAX ZONES OPPORTUNITY REMEDIATION BROWNSFIELD FEDERAL HOME LOAN BANK LOAN HOME FEDERAL Opportunity Zones (OZ’s) are a new community Opportunity Zones (OZ’s) are a new Congress development program established by encourage in the Tax Cut and Jobs Act of 2017 to and urban long-term investments in low-income economic communities nationwide. OZ’s are an designed to development tool - that is, they are creation spur economic development and job can include in our distressed communities, and residential development. » business.utah.gov/news/opportunity-awaits- statewide-opportunity-zones-announced A Brownfield project as defined by the EPA is “a real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.” Brownfield remediation is being considered more and more often as a viable way to revitalize and spur economic development in communities. It is often but by developers as being too expensive, dismissed a number of studies actually show that remediation has a great number of public benefits as well as economic and environmental gains. » epa.gov/brownfields the Community Renewal Tax Relief Act of 2000 (PL Relief Act of 2000 Renewal Tax the Community and economic to stimulate investment 106-554) urban neighborhoods and growth in low income which lack access to the patient rural communities support and grow businesses, capital needed to healthy local economies. create jobs, and sustain include commercial space If residential properties eligible for NMTCs. then they may be » irs.gov/businesses/new-markets-tax-credit-1 Affordable The Federal Home Loan (FHL) Banks' private Housing Program (AHP) is the largest housing in the source of grant funds for affordable of the United States. It is funded with 10 percent FHL Banks' net income each year. » fhlbanks.com/affordable-housing.html to include lead based paint and asbestos reviews to include lead based before 1978. for properties build located within a 100 year flood plain. to Davis Bacon labor standards. NEW MARKET TAX CREDITS TAX MARKET NEW FREDDIE MAC FREDDIE FANNIE MAE FANNIE New Market Tax Credit (NMTC) was authorized in A Freddie Mac Loan is a type of multi-family loan that is secured by a first-position mortgage on a traditional, student housing, senior housing, or affordable housing property. These mortgages may be held in the FHLMC portfolio (10% of mortgages) or sold to bond investors (90% of mortgages). » freddiemac.com/blog/rental_housing/index.page Fannie Mae financing is available nationwide in Fannie Mae financing is available nationwide is funded primary and secondary markets and under the Fannie Mae Delegated Underwriting are for Services (DUS) Program. These loans stabilized properties only with a minimum can be $750,000 loan amount with rates that be used fixed or floating. FNMA financing can student for traditional multi-family properties, senior housing, affordable housing, or independent purchases and living. Maximum leverage is 80% on 75% on refinances within designated areas. Loans may be recourse or non-recourse. » fanniemae.com/multifamily/index may take 120 days, and 221d4 loans may take 10 loans may take 120 days, and 221d4 may take and upfront costs Plus, there are more months). with the origination of closing costs associated That said, a 223(f) insured HUD-insured loans. from originating a Fannie loan isn't vastly different loan. Other requirements or Freddie multi-family involve things like: assessments are required • Phase 1 environmental properties • HUD doesn't insure loans for new adherence • Substantial rehabilitation loans require » www.wdol.gov/dba.aspx Federal Resources AFFORDABLE RESIDENTIAL DEVELOPMENT GUIDE NATIONAL AND LOCAL IMPACT INVESTMENTS

Impact investments are investments made with • Government investors and development finance the intention to generate positive and measurable institutions can provide proof of financial social and environmental impact alongside a viability for private-sector investors while financial return. Impact investments can be made targeting specific social and environmental goals. in both emerging and developed markets, and target a range of returns from below market to • Equity Funds / Money Market Fund / market rate, depending on investors' strategic Below-Market-Rate Funds goals. The growing impact investment market A money market fund is a kind of mutual fund provides capital to address the world’s most that invests only in highly liquid instruments pressing challenges in sectors such as sustainable such as cash, cash equivalent securities, and high agriculture, renewable energy, conservation, credit rating debt-based securities with a short- microfinance, and affordable and accessible term maturity—less than 13 months. As a result, basic services including housing, healthcare, and these funds offer high liquidity with a very low education. level of risk. » thegiin.org/impact-investing/need-to-know Impact investing challenges the long-held views that social and environmental issues should be COMMUNITY FOUNDATION OF UTAH

PAGE 18 PAGE addressed only by philanthropic donations, and The Community Foundation of Utah (CFU) is a that market investments should focus exclusively 501(c)(3) nonprofit organization committed to on achieving financial returns. enriching our community. CFU serves as Utah’s catalyst for philanthropy through innovative, The impact investing market offers diverse and sustainable, and impactful grant making and works viable opportunities for investors to advance social with nonprofit organizations, businesses, and and environmental solutions through investments individuals to target the most pressing needs in that also produce financial returns. Many types our community. By performing due diligence on of investors are entering the growing impact our donors' behalf, they ensure that charities are investing market. Here are a few common investor thoroughly vetted. They also know Utah nonprofits motivations: and work with donors to make impactful gifts to the charities or causes they love. Additionally, CFU • Banks, pension funds, financial advisors, and accepts complex assets, allowing donors to give wealth managers can provide client investment in the way that is most beneficial to them and the opportunities to both individuals and institutions community. with an interest in general or specific social and/ » utahcf.org or environmental causes.

• Institutional and family foundations can leverage significantly greater assets to advance their core social and/or environmental goals, while maintaining or growing their overall endowment. PAGE 19 Incentives DEVELOPMENT GUIDE DEVELOPMENT Efficient AFFORDABLE RESIDENTIAL AFFORDABLE Energy RENEWABLE ENERGY TAX CREDITS TAX ENERGY RENEWABLE TAX SYSTEMS ENERGY RENEWABLE (UTAH) CREDIT FREDDIE MAC GREEN ADVANTAGE GREEN MAC FREDDIE FINANCING GREEN MAE FANNIE Established by The Energy Policy Act of 2005, the Established by The Energy Policy Act property federal tax credit for residential energy solar initially applies to: solar-electric systems, wind- water heating systems, fuel cells, small pumps. energy systems, and geothermal heat » energy.gov/savings/residential-renewableenergy-tax-credit The Renewable Energy Systems Tax Credit can be applied to both residential and commercial installations utilizing solar photovoltaic, solar thermal, wind, geothermal, hydro, and biomass technologies. » energy.utah.gov/renewabletaxcredit The Green Assessment and Green Assessment Plus The Green Assessment they can save energy or water. show borrowers how to $3,500 of the cost of the They reimburse up closes a loan. report when the borrower » mf.freddiemac.com/docs/product/green_ advantage_term_sheet.pdf provides The Fannie Mae Green Financing Business buildings and mortgage financing to apartment water efficiency cooperatives to finance energy and property improvements. » fanniemae.com/multifamily/green-initiative ENERGY EFFICIENT INCENTIVES EFFICIENT ENERGY SUSTAINABILITY AND THE BUILT BUILT THE AND SUSTAINABILITY ENVIRONMENT DEVELOPMENT AND SUSTAINABLE SUSTAINABLE AND DEVELOPMENT CITY LAKE SALT Zero energy ready and zero energy buildings are Zero energy ready and zero energy dramatically designed, built, and operated to use envelopes, less energy through improved building systems, air daylighting and efficient lighting systems, sealing, efficient heating and cooling settings for and commissioning to ensure optimal between zero heating and cooling. The difference while both are energy ready and zero energy, is that building has ultra-energy efficient, a zero energy energy to meet the added component of renewable the remaining energy load of the building. Better performing new and existing buildings are crucial to meeting the City’s greenhouse gas reduction target and air quality goals. Emissions associated with electricity and natural gas use represent over 75% of our community carbon footprint. Reducing energy waste through efficiency and conservation represents a cost- effective way to address climate change and air quality issues while also saving businesses and households money. Reducing energy consumption also reduces the amount of renewable electricity required to make it zero energy. Through a joint Mayor-Council resolution, Salt Through a joint Mayor-Council to transition to 100% Lake City has committed for our community by 2030 renewable electricity gas emissions 80%, and reduce greenhouse To be compared to a 2009 baseline, by 2040. of “zero successful we must accelerate adoption among energy” and “zero energy ready” buildings Lake City. new and existing development in Salt DEVELOPMENT GUIDE AFFORDABLE RESIDENTIAL Energy PAGE 20 Efficient field_rebate_eligibility_shor%3A864818&page=7 » energy.gov/savings/search?f%5B0%5D=im_ For moreup-to-dateinformation: » www.icastusa.org services, GreenLendingIncentivesandfinancing. measures, demandsidemanagementutilities,solar building retrofits,energyandwaterconservation residential units.Servicesinclude:Multifamily to providesustainableresourcesolutionsfor enterprise thatdesignsandlaunchesprograms Sustainable Technology)isanonprofitsocial ICAST (InternationalCenterforAppropriateand choices/home/utah-multifamily-program.html » www.rockymountainpower.net/savings-energy- Wattsmart multifamilyprogram. » thermwise.com/builder/BuilderRebates.php ThermWise rebatesandbuildersprogram. » energy.utah.gov/utah-c-pace buildings, andcanbeusedforresidentialbuildings. and waterconservationprojectsoncommercial option forenergyefficiency,renewableenergy, (C-PACE) isalow-cost,long-termfinancing Commercial PropertyAssessedCleanEnergy AND SAVINGS ADDITIONAL TAX CREDITS, REBATES ICAST ROCKY MOUNTAIN POWER DOMINION ENERGY ENERGYCLEAN (UTAH) COMMERCIAL PROPERTY ASSESSED Incentives allows themtotracktheirenergycoststhroughoutthemonth. helps residentsmaximizetheefficiencyoftheirsystemand thermostats controltheairconditioningandheat.TheNest available forresidents’vehicles.Insidetheunits,Nestsmart tions, withfivecurrently installedfortheride-sharecarsand the parkinggarageiswiredforelectriccarchargingsta- helping cleartheairbycreatingnoemissions.Everystallin as thoseoff-siteallowforthebuildingtobenatural gasfree, pletely poweredbythesun.Solarpanelsonroofaswell Guadalupe Neighborhoodisthefirstofitskindtobecom- Project Open(phase1)bytheGivGroupinSaltLakeCity’s PAGE 21 Resources DEVELOPMENT GUIDE DEVELOPMENT ational N AFFORDABLE RESIDENTIAL AFFORDABLE NATIONAL DEVELOPMENT COUNCIL DEVELOPMENT NATIONAL DEVELOPMENT INCREMENTAL ALLIANCE THE NATIONAL ASSOCIATION OF OF ASSOCIATION NATIONAL THE REDEVELOPMENT AND HOUSING OFFICIALS Founded as a national nonprofit in 1969, National Founded as a national nonprofit in for almost Development Council (NDC) has worked the flow of 50 years fulfilling its mission to increase communities. capital for investment in low-income and NDC directs capital to support the development the creation of preservation of affordable housing, lending, jobs through training and small business and the advancement of livable communities through investment in social infrastructure. » ndconline.org The Incremental Development Alliance (IDA) began in 2015 in response to the common question from developers: how do I build a small building in the place I love? IDA offers trainings and technical assistance for aspiring small developers targeting infill, rehab, and Missing Middle Housing. » incrementaldevelopment.org The National Association of Housing and The National Association (NARHO) is the leading Redevelopment Officials development advocate for housing and community housing the provision of adequate and affordable all Americans, and strong, viable communities for particularly those with low- and moderate- incomes. » nahro.org to low-income borrowers Corporation (UHC) Credits that finance community centers and create jobs in small businesses NATIONAL FINANCING, RESOURCES, AND TECHNICAL TECHNICAL AND RESOURCES, FINANCING, NATIONAL ASSISTANCE COMMUNITY REINVESTMENT ACT REINVESTMENT COMMUNITY ENTERPRISE COMMUNITY PARTNERS COMMUNITY ENTERPRISE The Community Reinvestment Act (CRA) was The Community Reinvestment Act provide enacted in 1977. It mandates that banks low- and loans, investments, and services to moderate-income individuals and communities. banks and It provides a framework that requires to community organizations to work together other banking promote the availability of credit and communi- services to low- and moderate-income from banks ties. Non-profit organizations benefit regulated by CRA through: housing • Loans for low-income multi-family targeted • Loans to finance single family housing • Loans to finance community buildings • Purchase of bonds issued by Utah Housing • Purchase of tax credits such as New Markets Tax • Participation in venture capital funds that finance » industrialbankers.org/cra Enterprise Community Partners offers financial Enterprise Community socially conscious investors tools and matches that yield economic returns with opportunities and measurable impact for alongside intentional low-income communities. » enterprisecommunity.org/financing-and- development State DEVELOPMENT GUIDE AFFORDABLE RESIDENTIAL PAGE 22 & County home-rehab,-repairs,-and-housing-development » slco.org/housing-community-development/ existing rentalhousingprojects. and (2)thecostofpurchase &rehabilitationof of developmentandconstruction ofrentalhousing; provides 0%-3%loanstohelpfinance(1)thecost Program (HOME)funding,SaltLakeCounty Through theHOMEInvestmentPartnership » propertyrights.utah.gov to propertyownershipanduse. and developersunderstandprotecttheirrights neutral, non-partisanagencythathelpscitizens The OfficeofthePropertyRightsOmbudsmanisa • html » jobs.utah.gov/housing/affordable/owhlf/index. (HOME) fundsandStateTaxCredits. Trust FundsandHOMEInvestmentPartnership OWHTF istheState’sdistributorofHUDHousing moderate-income personsasdefinedbyHUD.The affordable forverylow-income,low-incomeand with thepurposeofdevelopinghousingthatis meet theneedsofUtah'sindividualsandfamilies supports qualityaffordablehousingoptionsthat of theDepartmentWorkforceServices.OWHLF Housing andCommunityDevelopmentDivision is arevolvingloanfundoverseenbyUtah’s The OleneWalkerHousingLoanFund(OWHLF) COMMUNITY DEVELOPMENT SALT LAKE COUNTY HOUSING AND OMBUDSMAN STATE PROPERTY RIGHTS FUND THE OLENE WALKER HOUSING LOAN STATE & COUNTY RESOURCES Resources affordable rentalhousingoffiveormoreunits. acquisition, construction,orrehabilitationof program providesfinancialassistanceforthe Multi-Family Program: TheMulti-family » slco.org/homeless-services/continuum-of-care units. rehabilitation, andnewconstructionofresidential and serviceprograms,includingtheacquisition, provides annualfundingforlocalhomelesshousing Continuum ofCare(UT-500).Thisapplication HUD CoC GrantApplication for the Salt Lake County Salt LakeCountyisresponsibleforcoordinatingthe » slco.org/lead-safe-housing age ofsixresideorvisitfrequently. homes builtbefore1978wherechildrenunderthe provides fundingtoremediateleadhazardsin Salt LakeCountyLeadSafeHousingProgram » slco.org/assessor real andpersonalpropertyinSaltLakeCounty. information includingownershipandvaluationof an extensivecompilationofpropertyrelated The SaltLakeCountyAssessor’swebsiteoffers CARE SALT LAKE COUNTY CONTINUUM OF LEAD ABATEMENT REHABILITATION SALT LAKE COUNTY ASSESSORS PAGE 23 Resources ocal L DEVELOPMENT GUIDE DEVELOPMENT AFFORDABLE RESIDENTIAL AFFORDABLE GIV DEVELOPMENT GIV LAKE SALT OF AUTHORITY HOUSING CITY CONNECT HOUSING COWBOY PROPERTIES PROPERTIES COWBOY Giv Development creates sustainable, lasting and Giv Development creates sustainable, in their place. innovative structures that reside well around mixed- Giv’s primary areas of focus centers corridors. use, catalytic developments in urban » givdevelopment.com The Housing Authority of Salt Lake City (HASLC), a federally funded Special Purpose Government Agency, was created in 1970 to provide rent subsidies and promote affordable housing for low- income persons residing in Salt Lake City. » haslcutah.org/about Also known as the Housing Authority of Salt Lake County (HASLC), Housing Connect is a full service housing authority that assists individuals, families, elderly, physically and mentally disabled residents who are low-income. Housing Connect has constructed or acquired hundreds of public housing units in Salt Lake County. » hacsl.org/about strong economic and social impacts to the low strong economic and and the low-income persons income communities a mission-driven CDE that they serve. CDFA is financing to address offers creative, flexible by nonprofit organizations, the obstacles faced and others in obtaining government agencies conventional financing. » cdfautah.org Utah based Cowboy Properties is a multi-family, developer and mixed-use, and affordable housing property manager. » site.cowboy.us/company LOCAL AFFORDABLE HOUSING DEVELOPERS & & DEVELOPERS HOUSING AFFORDABLE LOCAL ASSISTANCE TECHNICAL COMMUNITY DEVELOPMENT FINANCE FINANCE DEVELOPMENT COMMUNITY ALLIANCE COMMUNITY DEVELOPMENT DEVELOPMENT COMMUNITY UTAH OF CORPORATION ARTSPACE ASSIST, COMMUNITY DESIGN CENTER DESIGN COMMUNITY ASSIST, Community Development Finance Alliance (CDFA) is a 501(c)(3) nonprofit and certified Community Development Entity (CDE) formed in 2010. CDFA's mission is to provide capital to support the development of community and educational facilities and mixed-use projects that provide Community Development Corporation of Utah Community Development Corporation (CDCU) is a 501(c)(3) nonprofit organization for distressed founded in 1990 to provide solutions builds new neighborhoods in Salt Lake City. CDCU single and multi-family housing, rehabilitates revitalize existing housing stock, and works to also neighborhoods around the state. CDCU provides a combination of critical community services including homebuyer education, homeowner case management, foreclosure prevention counseling, down payment assistance, and mortgage lending. » cdcutah.org Artspace creates affordable live and work spaces Artspace creates affordable live and nonprofits for artists, cultural organizations, and and safe to revitalize and promote stable, vibrant communities. » artspaceutah.org ASSIST provides architectural design, community ASSIST provides architectural assistance to nonprofit planning and development housing repair for low and community groups; and accessibility design income households; with disabilities. assistance to people » assistutah.org DEVELOPMENT GUIDE AFFORDABLE RESIDENTIAL L PAGE 24 ocal Resources Development LoanProgram toprovidefinancing (UCNS) administerstheTransportation Oriented Utah CenterforNeighborhood Stabilization » rmcrc.org/about-us Mountain region. underserved communitiesthroughouttheRocky moderate-income individuals,familiesand and communityfacilitiesthatservelow-to preservation ofsafeandcleanaffordablehousing (RMCRC) facilitatesthedevelopmentand Mountain CommunityReinvestmentCorporation assistance andcommunitycollaboration,Rocky Through sustainabledirectlending,technical » restore-utah.com income geographies. multi-family propertiesinlow-andmoderate- and operator.Restoreconcentratesonsingle Restore Utahisarealestateinvestmentcompany » nwsaltlake.org households. and empowermentresourcesforlow-income development agencythatoffershomeownership nonprofit affordablehousingandcommunity NeighborWorks SaltLake501(c)(3)isa » beauxsimone.com community. supportive housingunitsavailableintheir providers increasethenumberofpermanent help non-profits,housingauthorities,andservice assistance andpeerlearningsessionsdesignedto LeBeau Development,isaseriesoftechnical The SupportiveHousingToolkit,designedby STABILIZATION UTAH CENTER FOR NEIGHBORHOOD REINVESTMENT CORPORATION ROCKY MOUNTAIN COMMUNITY RESTORE UTAH NEIGHBORWORKS SALT LAKE HOUSINGTOOLKIT LEBEAU DEVELOPMENT, SUPPORTIVE » utahhousing.org/about-us.html building forhousingprofessionals. groups, andorganizingtrainingscapacity outreach andpartnershipbuildingamongdiverse safe andaffordableplacetolive.Servicesinclude communities toensureallUtahresidentshavea dedicated tobuildingequitableandsustainable partnerships, theUtahHousingCoalitionis Through education,advocacy,andcommunity » utcns.com space. affordable workforcehousingandcommercial and TRAXstopsformixed-usedevelopment for projectsnearmajorbusroutes,lightrailstops, » wasatchgroup.com LIHTC. and allowinginvestortoreceivethebenefitof existing communitiesthroughaffordablerents into growingmarketplacesbyrepositioning Provides apathwaytoimmediatelydeploycapital » unphc.org/about-us special needspropertiestodate. rehabilitated morethan50family,senior,and (CHDO). UNPHChasdevelopedoracquired/ Community HousingDevelopmentOrganization housing. UNPHCisa501(c)(3)organizationand profit developerofaffordablemulti-family Corporation (UNPHC)isUtah’slargestnon- Founded in1967,UtahNon-ProfitHousing » utahhousingcorp.org and allocationprocess. Utah’s LowIncomeHousingTaxCreditprogram Utah’s HousingFinanceAgency(HFA)manages UTAH HOUSING COALITION WASATCH ADVANTAGE GROUP CORPORATION UTAH NONPROFIT HOUSING UTAH HOUSING CORPORATION PAGE 25 Resources City DEVELOPMENT GUIDE DEVELOPMENT AFFORDABLE RESIDENTIAL AFFORDABLE SALT LAKE CITY, REDEVELOPMENT REDEVELOPMENT CITY, LAKE SALT (RDA) AGENCY Renter Rehab Program owners The Renter Rehab loan program assists repairs of investor owned units to make needed 51% of the to their properties. To qualify, at least Market Rents. units must be rented at or below Fair rates Depending on loan committee approval, range between 0-5%, over 20 years. The Redevelopment Agency (RDA) receives State Redevelopment Area funds and offers a Redevelopment Loan Program for affordable or mixed-income housing. Economic Development Area (EDA), tax-increment financing (TIF), and Community Reinvestment Areas (CRA) are additional sources of direct or leveraged funding for affordable housing. » slcrda.com ZoomGrants and are accepted year-round. ZoomGrants and are Development Organiza- Community Housing tion of HOME Investment Partner- At least 15 percent funds must be set aside for ships Program (HOME) by a special type specific activities to be undertaken Develop- of nonprofit called a Community Housing ment Organization (CHDO). based A CHDO is a private nonprofit, community capacity to organization that has staff with the community develop affordable housing for the as a it serves. In order to qualify for designation certain require- CHDO, the organization must meet ments pertaining to legal status, organizational structure, capacity, and experience. CITY RESOURCES CITY SALT LAKE CITY, HOUSING AND AND HOUSING CITY, LAKE SALT DEVELOPMENT NEIGHBORHOOD (HAND) DIVISION HOME Development Funds Salt Lake City opperates a HOME Development Fund. Projects supported with this funding are subject to federal HOME regulations and strict timing requirements. The funds are typically low interest or deferred loans for multi-family development. Applications can be submitted online through Housing Data Growing SLC includes the objective of providing lead- residents, community advocates, business quality data to ers, and elected officials with high drive decision-making. The website (www.slc.gov/ hand/housingplan) provides a public-facing set of housing metrics for insights into key market char- acteristics. The indicators illustrate important data on housing and track updates on progress over time to drive decisions, understand impact, and help inform solutions to Salt Lake City’s housing crisis. Growing SLC: A Five Year Housing Plan, Growing SLC: A Five Year Housing 2018-2022 City Council On December 12 2017, the Salt Lake voted unanimously to adopt Growing SLC: A Five Year Housing Plan 2018-2022, the first housing lays out plan for the City since 2000. Growing SLC and poli- a number of comprehensive solutions housing for cies to address the lack of affordable Area Median households earning 40% or below the Income. Develops and enhance livable, healthy, and Develops and enhance HAND builds sustainable neighborhoods. maximizing city-owned neighborhoods by housing. property, providing funding, and creating » slc.gov/hand DEVELOPMENT GUIDE AFFORDABLE RESIDENTIAL City PAGE 26 Resources then reviewedbytheHousing TrustFundAdvisory 4-7 months.Projectsarereviewed bystaff,and from applicationtoapproval cantakebetween rehabilitation, ornewconstruction. Timeline Multi-family housingfinancingforacquisition, Housing TrustFund underwriting standardsbyoutsidelenders. of projectsthatmaybedependentuponmyriad provides flexibilitytoaccommodateawiderange housing withinthecitylimits.Theprogram the developmentandpreservationofaffordable assistance iscommittedtoprojectsincentivize Notice ofFundingAvailability.Lowcostfinancial transparent publicprocess,otherwiseknownasa housing tobeallocatedthroughacompetitiveand development andpreservationofaffordable The RDAperiodicallydedicatesfundsforthe Affordable Housing Notice ofFundingAvailability(NOFA)for built. lenders toensurethattransformativeprojectsget can assumeahigherlevelofriskthantraditional realities. InsupportoftheRDA’smission,RDA gap betweentheproject’seconomicsandmarket is availabletoeligibleprojectsbridgethefunding preservation ofaffordablehousing.Gapfinancing and objectives,includingthedevelopment financing forprojectsthatadvancetheRDA’sgoals The RDALoanProgramprovidescriticalgap Loan Program improvements. the increasedtaxablevalueresultingfromsaid value ofapropertypriortoimprovementsand upon thedifferencebetweeninitialtaxable projects. Taxincrementreimbursementsarebased reimbursement todevelopersforbuildingeligible affordable housing,byofferingataxincrement including thedevelopmentandpreservationof helps achievetheRDA’sgoalsandobjectives, The RDA’sTaxIncrementReimbursementProgram Tax IncrementReimbursementProgram RDA’s realpropertydispositionpolicy. including landwrite-downs,shallabidebythe Disposition ofallRDA-ownedrealproperty, provide forthedevelopmentofaffordablehousing. otherwise disposeofanyinterestinrealpropertyto Act, theRDAmaysell,convey,grant,gift,or As pertheUtahCommunityReinvestmentAgency property tomarketforstrategicredevelopment. development ofaffordablehousingbyacquiring In additiontoprograms,theRDAsupports Property Acquisition/Disposition required. permits andtheirassociated processes,andfees different usetypesarepermitted,detailsonallCity Salt LakeCitycustomerscaneasilylearnwhere requirements fortheirbusiness.InOpenCounter, it easierforapplicantstofindpermitandzoning tool forbusinessdevelopment.Thisguidemakes The CityoffersaCitizenAccessPortal:anonline » www.slc.gov/buildingservices occupancy. codes, permits,andinspections,certificatesof codes, OpenCounter,feeschedules,building Free PreplanningMeetingstoreviewbuilding » www.slc.gov/planning neighborhood plans,andcitywideplans. historic preservationresources,masterplans, One-Stop Shop,currentprojects,zoningmaps, zoning andpermitting,planningCounter/ Free DesignReviewTeammeetingstoreview considered year-round. to 50%oftheperunitcostsandapplicationsare City Council.HousingTrustFundscansupportup Board priortoseekingfinalapprovalfromthe CITIZEN ACCESS PORTAL DIVISION SALT LAKE CITY, BUILDING SERVICES SALT LAKE CITY, PLANNING PAGE 27 Resources City DEVELOPMENT GUIDE DEVELOPMENT Process Planning AFFORDABLE RESIDENTIAL AFFORDABLE City Issues Completion Occupancy / Certificate of YES YES PRE-APPLICATION PROCESS PRE-APPLICATION INSPECTION & CERTIFICATES & INSPECTION NO Process Planning Required? NO Work is Work Inspector Complete Determines Input Receive Procedure Work Schedule Completed Inspection for Department (Fire Codes), Public Utilities, etc. (Fire Codes), Public Department projects may be Some housing affordability development benefits, eligible for additional and management subject to City officials Impact, Building Permit, approval, including: disposition of city- Plan Review fee waivers, discounts, interest rate owned land, land market sales. For more discounts, and below these possibilities, please information about or RDA. contact staff at HAND • Permit Issued Building City Pre- Schedule Meetings Application Issued ROW Permit NO Codes, Guides Relevant Research Ordinances, YES Permit Required for Work in for Work Public ROW Engineering Public Utilities Transportation YES NO Work? Cycles Review Include Structural Does Project Divisions: Urban Forestry, Public Services, Fire Divisions: Urban Forestry, Public Services, & Pre Project OTHER DIVISIONS AND RESOURCES RESOURCES AND DIVISIONS OTHER NOTICE OF PARCELS FOR BID FOR PARCELS OF NOTICE Salt Lake City offers a wide range of additional Salt Lake City offers assistance for the resources and technical development of affordable units. » www.slc.gov • Under the Utah Procurement Code, Salt Lake City Under the Utah Procurement parcels for bid through Sciquest, lists all notices of Place. Utah Public Procurement » solutions.sciquest.com » citizenportal.slcgov.com Screening / Scope of Application Submission, Fee Payment, Fee Define Nature Define Nature SLC BUILDING SERVICES: PROCCESS FLOW CHART FLOW PROCCESS SERVICES: BUILDING SLC PLANS REVIEW & PERMITTING & REVIEW PLANS PRELIMINARY PROCESS PRELIMINARY THANK YOU FOR HELPING BUILD AN EQUITABLE AND AFFORDABLE CITY