City Council approves loans for two affordable housing projects
The city is slowly chipping away at the reported 7,500-unit gap in affordable housing. During Tuesday’s formal council meeting, members of the Salt Lake City Council unanimously approved loans for two affordable housing projects, North 4th and Granary Place, that will add a combined total of 295 affordable units to the city.
“It’s affordable housing in District 3 which makes it really exciting,” said Councilmember Stan Penfold of the North 4th development. ” I think this is going to be a great project for the neighborhood.”
The North 4th project, on the 300 North block of 500 West, will be the developers’ (Giv Development Group) second affordable housing project in District 3. Giv also developed the North Sixth Apartments just south of North Temple on 600 West. Penfold, who represents District 3 referenced the North Sixth development as the type of project he expects from the developers.
“What I like about Giv, is that they consistently add a mix of affordable units,” said Penfold.
City Council approved a $1.5 million loan from the Housing Trust Fund budget for Giv to refinance and purchase an adjacent parcel for the project’s second phase. The first phase will be six stories with 112 one and two-bedroom apartments, 81 of which will be affordable housing. The project will include 31 market-rate units and the affordable housing units will include a mix of units available for residents earning between 25 and 50 percent of the Area Median Income (AMI).
The second phase of the North 4th project will consist of three mixed-use buildings with a combined total of 124 units, 80 of which will be affordable housing. The second phase will include 16 three-bedroom units, many of which Giv states will be reserved for refugee families, and five units reserved for homeless individuals. Depending on the AMI, rents for the affordable units will vary between $260 and $600 a month.
Both phases will share amenity space that will be provided in and around a restored historic furniture warehouse building located just behind the site of the first-phase building. The amenities will include a gym, clubhouse, conference room, office space, greenhouse, patio, yard space and bike repair area.
According to the council staff report, the project will also include nonprofit space, five units reserved for homeless youth through the Salt Lake County Division of Youth Services and eight units reserved for youth transitioning out of Foster Care through the Transition to Adult Living program.
The developers told council staff that the project will also be the state’s first net-zero multifamily development through Rocky Mountain Power’s subscriber solar program.
In addition to Giv, the City Council approved an $500,000 loan to JF Capital for the Granary Place Apartments. The loan is in addition to a $500,000 loan the council approved in April. The project, on the 200 West block 0f 700 South, will be entirely affordable housing. The project will be five stories with 134 units reserved for residents earning at or below 60 percent AMI. The units will be a mix of studio, one and two bedroom apartments.
According to Adam Paul of JF Capital, most of the amenities for the Granary Place will be concentrated on the 5th floor and include a clubhouse with a kitchen and an outdoor gathering deck with a bbq, fireplace and lounge seating.
Construction of the Granary Place and the first phase of the North 4th Apartments should start in the next few months. JF Capital has received the necessary building permits for Granary Place. Giv Development Group is awaiting approval of their building and demo permit applications.