Resolution 4 of 2017

 

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RESOLUTION NO. 4 OF 2017

 

Authorizing a Loan from Salt Lake City’s Housing Trust Fund

To Little Diamond Housing, LLC
(Cornell Street Apartments)

 

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, Little Diamond Housing, LLC (“Little Diamond”) has applied to the City for a loan to facilitate the development of a mixed income project located at 211 N. Cornell Street, Salt Lake City, Utah (the “Property”); and 

WHEREAS, when complete, the “Cornell Street Apartments, LLC” project will consist of 146 units with 131 reserved as affordable targeting those at 60% area median income and below. 

NOW THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah:

1.  That the City Council hereby approves issuing a single loan in the total amount of $550,000 to Little Diamond with the requirement that the loan proceeds shall be used to fund development of a mixed income project located at 211 N. Cornell Street, Salt Lake City, Utah. The loan documents that correspond to this loan shall include the following terms:

 

Loan Amount:     $550,000

Loan Maturity:    40 years

Interest Rate:                       3% per annum

Amortization:                       40-year amortization

Interest Only:                       Only interest will be paid during the 2-year construction period

Collateral:                             Trust Deed on the Property

 

2.  That Jacqueline M. Biskupski, 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 21st day of February, 2017.