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RESOLUTION NO. 11 OF 2014
AUTHORIZING A LOAN FROM
SALT LAKE CITY’S HOUSING TRUST FUND
TO FIRST STEP HOUSE
WHEREAS, Salt Lake City Corporation (the City) has a Housing Trust Fund to encourage affordable and special needs housing development within the City; and
WHEREAS, First Step House has applied to the City for a loan from the City’s Housing Trust Fund in order to completely renovate an existing building located at 440 South 500 East as part of its construction of a comprehensive treatment and housing facility that will consist of 50 beds used for substance abuse treatment and transitional housing; and
WHEREAS, on average, 90% of the clientele served by the proposed First Step House facility will have an income at or below 50% of the area median income; and
WHEREAS, the City Council has reviewed the matter and has decided that this resolution is in the best interest of the City.
NOW THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah as follows:
1. The City Council does hereby authorize the City to enter into a loan agreement with First Step House, to provide First Step House with a loan (the “Loan”) in the amount of $700,000.00 for the renovation of the existing building, and other related construction activities, necessary for the construction of a comprehensive treatment and housing facility located at 440 South 500 East, Salt Lake City, Utah.
2. Interest on the City’s Loan shall accrue at one percent (1.00%) interest per annum for a period of 30 years. Payments made to the City during the first three (3) years shall be interest-only payments, and all subsequent payments shall include principle and interest as shall be set forth in the pertinent loan documents.
3. Ralph Becker, Mayor of Salt Lake City, Utah, following approval of the City Attorney, is hereby authorized to execute the requisite loan documents on behalf of Salt Lake City Corporation and to act in accordance with their terms.
Passed by the City Council of Salt Lake City, Utah, this 10th day of June, 2014.