City Council approves nearly $18 million in affordable housing loans

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Acting as the Redevelopment Agency Board, the Salt Lake City Council voted this week to approve a big package of funding for housing projects across the city that have affordable housing components.

The awarded funding from the Housing Development Loan Program was spread across 14 projects, and will help create 1179 new dwellings and rehabilitate 361.

The city loans are in a subordinate position to the main lenders, but likely make up an important part of awarded projects’ capital stacks. This year, the RDA’s contribution to the projects’ construction costs ranged between 1.6% and 10%.

Developer response was high, and the amount awarded, $17.7 million, was the largest amount ever offered by the city. Mayor Erin Mendenhall said in a statement, “I am encouraged by this year’s robust response to our annual competitive affordable housing funding process, as it signifies the development community’s commitment to affordability at levels we have never seen before.”

Salt Lake County, as well as the state’s Olene Walker Housing Loan Fund are also listed by most successful applicants as contributors to their projects. Two-thirds are also recipients of federal LIHTC funds.

The city’s 2023 top priorities in awarding funds were deeply affordable units and family-sized housing (3-4 BRs). RDA Board Chair Alejandro Puy (D2) stated the board was looking for units “affordable and accessible to extremely low-income individuals and families that are homeless or at risk of homelessness. Encouraging the development of affordable 3- and 4-bedroom residences gives families and larger households the opportunity to experience urban living.”

Here are this year’s awardees:

Project NameAddressDeveloperAward AmountAward Type
Project Open 3529 W 400 NPerpetual Housing Fund$710,000Interest Rate: 1.0% Term: 18 month Balloon Repayment
Citizens West 4515 W 300 NDeveloped. By Women. & Ivan Carroll$400,000Interest Rate: 1.0% Term: 15 year Amortization: 30 year Hard Repayments
515 Tower – Conversion Phase I515 E 100 SPerpetual Housing Fund$2,650,000Construction to perm: 2% interest rate, 15-year term/am, cash flow repayments
Liberty Corner1265 S 300 WCowboy Partners$4,500,000Interest Rate: 2.0% Term: 40 year Amortization: 40 year Cash Flow Repayments
New City Plaza Apartments1966 S 200 EHousing Connect$895,000Interest Rate: 2.5% Term: 40 year Amortization: 40 year Cash Flow Repayments
2nd South Apartments934-948 W 200 SHermes Affordable Services, LLC$2,420,000Interest Rate: 2.0% Term: 30 year Amortization: 30 year Cash Flow Repayments
Norbridge Court511 W 200 SArtspace$895,000Interest Rate: 1.0% Term: 30 year Amortization: 30 year Hard Repayments
Alliance House 1805 Rebuild1805 S Main StAlliance House & Cowboy Partners$500,000Interest Rate: 2.5% Term: 40 year Amortization: 40 year Cash Flow Repayments
9Ten West910 W N TempleGreat Lakes Capital$1,000,000Interest Rate: 2.0% Term: 16 year Amortization: 40 year Cash Flow Repayments
The Catherine Phase 11881 W N Temple22 Communities$1,000,000Interest Rate: 2.0% Term: 16 year Amortization: 40 year Cash Flow Repayments
The Catherine Phase 21881 W N Temple22 Communities$134,323Interest Rate: 2.0% Term: 16 year Amortization: 40 year Cash Flow Repayments
Book Cliffs Lodge1159 S W TempleHousing Authority of Salt Lake City$740,000Interest Rate: 2.5% Term: 15 year Amortization: 30 year Cash Flow Repayments
Pharos Apartments915 W 200 NHousing Authority of Salt Lake City$880,000Interest Rate: 2.5% Term: 15 year Amortization: 40 year Cash Flow Repayments
Fairmont Heights I2557 S 1100 ELincoln Avenue Communities$1,000,000Interest Rate: 1.0% Acquisition Term: 2-year Balloon or conversion to Permanent: Term: 16 year Amortization: 40 year Hard Repayments

Featured projects

Here are five notable projects from the list of awardees:

Fairmont Heights

2557 S 1100 East

Developer: Lincoln Avenue Communities

55 units, 9 at 61-80% AMI, 19 at 41-60% AMI, 27 at <40% AMI

40 1BR, 15 2BR

The Catherine Phase 1 + 2

1881 W. North Temple

Developer: 22 Communities

Phase 1: 228 units, all at 60% AMI or below

80 studio, 44 1BR, 80 2BR, 24 3BR, including 18 ADA accessible

Phase 2: 144 units, all at 60% AMI or below

2nd South Apartments

934-948 W. 200 South

Developer: Hermes Affordable Services, LLC

105 units, 88 between 41-60% AMI, 16 <40% AMI

36 studio, 37 1BR, 16 2BR, 16 3BR

Citizens West 4

515 W. 300 North

Developer: Developed. By Women. & Ivan Carroll

52 units, 40 41-60% AMI, 10 <40% AMI

10 studio, 16 2BR, 20 3BR, 6 4BR

Project Open 3

529 W. 400 North

Developer: Utah Perpetual Housing Fund

For-sale condos and townhomes

23 units, all at 61-80% AMI

4 1BR, 12 3BR, 7 4BR

Email Luke Garrott

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Posted by Luke Garrott

Luke Garrott, PhD, has published in The Salt Lake Tribune and the Deseret News, and written features for the Salt Lake City Weekly City Guide and The West View. A former two-term councilman in Salt Lake City's District 4, he lives in Downtown Salt Lake City and grew up in the Chicago area.