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REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. R-25-2019
Notice of Funding Availability (NOFA) Funding Allocation for
High Opportunity Area Affordable Housing
Loan to Community Development Corporation of Utah
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY APPROVING PRELIMINARY LOAN TERMS FOR A LOAN TO COMMUNITY DEVELOPMENT CORPORATION OF UTAH FOR AN AFFORDABLE HOUSING PROJECT LOCATED AT 2960 SOUTH RICHMOND STREET.
WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) was created to transact the business and exercise the powers provided for in the Utah Community Reinvestment Agency Act (the “Act”).
WHEREAS, the Act provides that tax increment funds may be used for the purpose of increasing the affordable housing supply within the boundaries of Salt Lake City.
WHEREAS, pursuant to a motion adopted by the RDA Board of Directors (the “Board”) on December 5, 2017, the Board set aside $10,000,000 for a “Notice of Funding Availability” (NOFA), contingent upon an application and review process administered by the RDA to facilitate funding of qualified projects which meet the goals established by the NOFA guidelines with $4,500,000 of the funds to be dedicated toward areas of high opportunity. The high opportunity funds remain open on an ongoing basis until funds are expended.
WHEREAS, the RDA facilitated a loan application and review process pursuant to the RDA’s NOFA policy set forth in resolution R-17-2018 (the “NOFA Policy”).
WHEREAS, the Community Development Corporation of Utah (“the Developer”) submitted a loan application for a loan of NOFA funds for an affordable housing project in a high opportunity area to acquire a property located at approximately 2960 South Richmond Street.
WHEREAS, on October 15, 2019, the RDA’s Finance Committee reviewed the Developer’s loan application.
WHEREAS, based on the Finance Committee’s recommendations, the RDA staff recommends that the Board approve a loan to Developer as described on Exhibit A attached hereto and incorporated herein, and that the RDA shall provide a conditional commitment period determined by the RDA, during which the Developer shall have the opportunity to obtain needed financial, legal, and regulatory approvals as well as satisfy other conditions determined by the RDA in order to finalize the loan terms.
WHEREAS, pursuant to the NOFA Policy, if the Developer meets the conditions of the conditional commitment it shall be invited to execute a Letter of Commitment to finalize the loan terms as approved by the Finance Committee, subject to a set of conditions precedent to closing of the loan.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD that it approves the preliminary loan terms as described in Exhibit A, subject to revisions that do not materially affect the rights and obligations of the RDA hereunder. If the Developer successfully meets the required conditions, the Board authorizes the Executive Director to negotiate and execute the conditional commitment letter, the Letter of Commitment, and the loan agreements and other relevant documents consistent with the NOFA policy, the terms contained on Exhibit A, the final loan terms as determined by the Finance Committee, and incorporating such other terms and conditions as recommended by the City Attorney’s office.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this 10th day of December, 2019.