Click here to view entire resolution
RESOLUTION NO. 51 OF 2018
Authorizing a loan amendment from Salt Lake City’s Housing Trust Fund
To North 4th LLC
(North 4th/Project Open Phase II)
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, North 4th LLC (“North 4th”) has applied to the City for an amendment to their existing loan to facilitate the long-term financing of the development of a mixed income housing development located at 529 West 400 North, Salt Lake City, Utah (the “Property”); and
WHEREAS, when complete, the site is projected to include 95 units, with 74 considered tax credit units targeting those at 50% of area median income and below, with 25 of the 74 units set aside for special populations (5 units for formerly homeless, 8 units for refugees and 12 units for physically disabled).
NOW THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah:
1. That the City Council hereby approves amending the existing loan documents to North 4th LLC with the requirement that the loan proceeds shall be used for the permanent financing of the development of an affordable housing project. The loan documents that correspond to this loan shall be modified to the following terms:
Amount: $1,000,000 ($525,000 of original loan to be paid back at construction loan close or original balloon payment date, whichever occurs earlier)
Maturity: 18 years with a 40 year amortization schedule
Interest Rate: 2%
Collateral: Second position behind Rocky Mountain Community Reinvestment Corporation – Trust Deed on Property
Repayment: Hard monthly repayments
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 11th day of December, 2018.