Despite signs that new LIHTC housing in Salt Lake City is taking longer than expected to lease up, a project on W. North Temple, site of most of the city’s affordable housing development, is doubling down.
Along the TRAX Green line to the airport, at 1881 W. North Temple, local developers 22 Communities applied for building permits last week to construct the second phase of a 326-unit, two-building development called The Cooperative.
We last reported on the project two years ago, as its first phase was tying bows on its completed financing package. That building is currently under construction at the former site of a one-story light industrial building.
Project update, details
Phase one of The Cooperative (sometimes called The Collaborative) has changed from 228 units, a majority of those one-bedrooms, to 198 units with a majority of two- and three-bedroom apartments.
The Cooperative, at 1881 W. North Temple. Rendering courtesy 22 Design Lab
The updated unit breakdown, according to Jake Williams, President of 22 Communities, is:
Phase I – 198 Units
- 78 one-bedroom units at 53% AMI
- 96 two-bedroom units at 59% AMI
- 24 three-bedroom units at 60% AMI
- 2027 delivery
Immediately to the east is the site of The Cooperative Phase II, on the site of former surface parking lot.
Phase II – 128 Units
- 28 one-bedroom units
- 60 two-bedroom units
- 40 three-bedroom units
- All 128 units are currently modeled at 60% AMI
- 2028 delivery
Parking will be at grade, in a ground-floor podium as well as in surface stalls
The submarket – what about the glut?
We asked developer Williams of 22 Communities for his outlook on the LIHTC submarket in Salt Lake City.
He told us what we’ve previously been hearing, which is that the glut of studio- and one-bedrooms will likely need another year to work through supply.
The situation will likely be different “when these units actually deliver in 2027 and 2028.” he said. “Our most recent Phase II market study continues to show very strong underlying demand for affordable housing, including stable occupancy levels and waiting lists at comparable affordable properties.”
The developer’s most recent market study predicts that the project’s Phase II will reach stabilized occupancy within approximately five to six months.
The north walls of the Cooperative Phase I have reached level 3. Photo courtesy 22 Communities
Williams also emphasized the advantages of The Cooperative’s location. “We believe that transit connectivity, combined with below-market rents and the continued need for quality affordable housing, positions both phases very well as they come online.”
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