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The mayor and the Salt Lake City council, hereinafter "council", declare it to be a policy of the city to address the health, safety and welfare of its citizens by providing assistance for affordable and special needs housing within the city. The purpose of this chapter is to create the Salt Lake City housing trust fund and the Salt Lake City housing trust fund advisory board to address these concerns for affordable and special needs housing in the city. (Ord. 67-13, 2013)
For the purpose of this chapter the following terms, phrases, words, and their derivations shall have the meanings given in this section:
AFFORDABLE HOUSING:
A. Rental housing for which the annualized rent does not exceed thirty percent (30%) of the annual income of a family whose income equals sixty percent (60%) or less of the median income for Salt Lake City, as determined by the United States department of housing and urban development; or
B. Nonrental housing for which the annualized mortgage payment does not exceed thirty percent (30%) of the annual income of a family whose income equals eighty percent (80%) or less of the median income for Salt Lake City, as determined by the United States department of housing and urban development.
BOARD: The Salt Lake City housing trust fund advisory board created under this chapter.
CDBG: Federal community development block grant.
CITY: Means and refers to Salt Lake City, a municipal corporation of the state of Utah.
COUNCIL: The Salt Lake City council.
DIRECTOR: The person appointed by the mayor to serve as the director of the department of community and neighborhoods, or its successor department.
ESG: Federal emergency shelter grant.
FUND: The Salt Lake City housing trust fund created by this chapter.
HAND: The division of housing and neighborhood development, or its successor.
HOME: Federal HOME grant.
HOPWA: Federal housing opportunities for people with AIDS grant.
HOUSING SPONSOR: Includes, but is not limited to, an entity which constructs, develops, rehabilitates, purchases, owns, or manages a housing project or program that is or will be subject to legally enforceable restrictions and covenants that require that the housing assistance be provided to qualifying individuals as defined herein. A housing sponsor includes:
A. A public entity;
B. A nonprofit, limited profit, or for profit corporation;
C. A limited partnership;
D. A limited liability company;
E. A joint venture;
F. A cooperative;
G. A mutual housing or cohousing organization;
H. A municipal government;
I. A local housing authority;
J. A regional or statewide nonprofit housing or assistance organization.
HOUSING STABILITY: The division of housing stability, or its successor.
MAYOR: The duly elected or appointed, and qualified mayor of Salt Lake City.
MEMBER: A person appointed by the mayor who is a duly qualified voting member of the board.
SPECIAL NEEDS HOUSING: Includes, but is not limited to, supportive housing for people who fit one or more of the following categories: homeless, elderly, persons with mental and/or physical disabilities, domestic violence survivors, and the chronically ill. (Ord. 21-22, 2022: Ord. 49-16, 2016: Ord. 67-13, 2013)
There is created a restricted account within the general fund, to be designated as the "Salt Lake City housing trust fund" (the "fund"). The fund shall be accounted for separately within the general fund, and the fund shall be used exclusively to assist with affordable and special needs housing in the city. No expenditures shall be made from the fund without approval of the city council.
A. There shall be deposited into the fund all monies received by the city, regardless of source, which are dedicated to affordable housing and special needs housing including, but not limited to, the following:
1. Grants, loan repayments, bonuses, entitlements, mitigation fees, forfeitures, donations, redevelopment tax increment income, and all other monies dedicated to affordable and special needs housing received by the city from federal, state, or local governments;
2. Real property contributed to or acquired by the city under other ordinances for the purposes of preserving, developing, or restoring affordable housing;
3. Monies appropriated to the fund by the council; and
4. Contributions made specifically for this purpose from other public or private sources.
5. CDBG, ESG, and HOPWA monies only as designated by the city's community development advisory board and approved by the mayor and city council, and HOME monies only as designated by the city's housing trust fund advisory board and approved by the mayor and city council.
B. The monies in the fund shall be invested by the city treasurer in accordance with the usual procedures for such special accounts. All interest or other earnings derived from fund monies shall be deposited in the fund. (Ord. 91- 24, 2024: Ord. 67-13, 2013)
There is created the Salt Lake City housing trust fund advisory board (the "board"), which body shall consist of eleven (11) appointed members, at least one of whom has a household income which qualifies such person for affordable housing benefits or programs. Membership shall consist of residents of the city as follows:
A. Seven (7) citizens, one from each city council district, with expertise or experience in affordable and/or special needs housing, which may include a full range of such expertise and/or experience from citizens who are considering purchasing their first home to citizens who have a strong background in affordable housing;
B. Four (4) citizens at large who have experience or expertise in areas of business, real estate, or housing development generally.
The board may also consult with persons who have experience or expertise in areas such as finance, real estate, affordable housing development, and law as well as with representatives from other city boards and commissions in order to solicit advice on specific projects. (Ord. 67-13, 2013)
The board shall have the following powers and duties:
A. Determine and establish such rules and regulations for the conduct of the board as the members shall deem advisable; provided, however, that such rules and regulations shall not be in conflict with this chapter or its successor, or other city, state or federal law.
B. Recommend the adoption and alteration of all rules, regulations and ordinances which it shall, from time to time, deem in the public interest and for the purposes of carrying out the objects of this chapter; provided, however, that such rules and regulations shall not be in conflict with this chapter or its successor, or other city, state or federal law.
C. Consult with experts in areas such as finance, real estate, and affordable housing development to obtain advice on specific projects.
D. Advise and make recommendations to the city administration and the city council on affordable housing and special needs housing issues which may include, but not be limited to:
1. The means to implement the policies and goals of this chapter and the city's community housing plan and policies;
2. Criteria by which loans and grants should be made, using the city's consolidated plan as a guide to determine housing gaps;
3. The order in which projects and programs should be funded;
4. The distribution of any monies or assets contained in the fund according to the procedures, conditions, and restrictions placed upon the use of those monies or assets by any government entity;
5. The distribution of all other monies from the fund according to the following guidelines:
a. Sufficient fund monies shall be distributed as loans to assure a reasonable stream of income to the fund from loan repayments. These may range from short term construction loans to long term acquisition loans;
b. Loans shall be recommended in accordance with the borrower's ability to pay, but no more than fifty percent (50%) of the per unit costs shall be recommended;
c. Fund monies and assets not distributed as loans shall be distributed as grants;
d. All fund monies and assets shall be distributed to benefit households earning one hundred percent (100%) or less of the area median income;
e. Not less than one-half (1/2) of all fund monies and assets shall be distributed to benefit households earning fifty percent (50%) or less of the area median income;
f. The board may recommend that the mayor, with the consent of the council, grant or lend fund monies or assets to housing sponsors. Housing sponsors must assure the term of affordability as follows:
(1) Rental Housing: The term of affordability for rental housing units will be fifty five (55) years.
(2) Home Ownership Housing: The term of affordability for home ownership housing units will be as follows:
(A) Short term financing (less than 5 years) will require that the first homeowner to purchase the housing unit will meet the income requirement of eighty percent (80%) or less of area median income as established by the U.S. department of housing and urban development.
(B) Long term financing (5 or more years) for new construction, rehabilitation or acquisition will be as follows:
Under $15,000.00 | 5 years |
$15,000.00 to $40,000.00 | 10 years |
Over $40,000.00 | 15 years |
g. Fund monies and assets may be recommended by the board to be used to obtain matching funds from government entities or other sources, consistent with the intent of this chapter.
E. The board may recommend fund monies or assets be provided to any of the following activities:
1. Acquisition, leasing, rehabilitation, or new construction of housing units for ownership or rental, including transitional housing;
2. Emergency home repairs;
3. Retrofitting to provide access for persons with disabilities;
4. Down payment and closing cost assistance;
5. Construction and gap financing;
6. Land acquisition for purposes consistent with the purposes of this chapter;
7. Technical assistance;
8. Other activities and expenses incurred that directly assist in providing the housing for eligible households in the city, consistent with the intent of this chapter.
F. Fund monies shall not be used for administrative expenses.
G. The board shall develop an application process to be recommended to the mayor and council for approval. Said process may be reviewed from time to time by the council.
H. The board and housing stability shall review and monitor the activities of recipients of grants and loans issued under this chapter on an annual basis, or more often as may be deemed necessary, to ensure compliance with the terms and conditions imposed on the recipient by the mayor and the council under this chapter and under any and all instruments and documents entered into between the city and the recipient pursuant to this chapter.
1. Entities receiving grants or loans shall provide to the board and housing stability an annual accounting of how the monies or assets received from the fund have been used.
2. An annual report shall be prepared by the board and housing stability which shall contain information concerning the implementation of this chapter. The report shall include, but is not limited to, information regarding the location and numbers of units developed or preserved, the numbers and incomes of households served, and detailing the income to and assets in the fund, and the expenditures and uses of fund monies and assets.
3. The annual report shall include the board's and housing stability's assessment of housing needs in the city, barriers to affordable and special needs housing development and reservation, and barriers to the implementation of this chapter.
4. The annual report shall be submitted to the mayor and the council for review by March 31 of each calendar year.
5. Appropriations by the council to the fund shall be considered as part of the budget process.
I. Serve as a coordination body and resource for organizations interested in affordable and special needs housing issues affecting the city including, but not limited to, the housing authority of Salt Lake City, the Salt Lake City redevelopment agency, the housing stability division, and other city departments as appropriate, as well as nonprofit and for profit housing developers. (Ord. 21- 22, 2022: Ord. 67-13, 2013)