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RESOLUTION NO. 6 OF 2018
Authorizing a Loan from Salt Lake City’s Housing Trust Fund
To First Step House
(426 Apartments Project)
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 (“FSH”) has applied to the City for a loan to purchase real property located at 426 South 500 East, Salt Lake City, Utah (the “Property”); and
WHEREAS, when complete, the site is projected to include 40 units, the majority to be tax credit units targeting those at 40% 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 $402,250 to FSH with the requirement that the loan proceeds shall be used to acquire the Property for the development of an affordable housing project. The loan documents that correspond to this loan shall include the following terms:
Loan Amount: $402,250
Loan Maturity: 4 year term
Interest Rate: 1% per annum
Amortization: 30-year amortization
Interest Only: Only interest will be paid during the term with a balloon at maturity
Collateral: First-Position 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 16th day of January, 2018.