Salt Lake City proposes $9M budget for affordable housing initiatives

The Salt Lake City Community Reinvestment Agency (CRA) meeting held on May 20, 2025, focused on the proposed allocation of housing funds for the upcoming year, totaling just over $9 million. The meeting began with a detailed breakdown of the funding sources, including the housing development fund, primary and secondary housing initiatives, and the West Side Community Initiative.

Key discussions highlighted the allocation of approximately $3.5 million for the competitive Notice of Funding Availability (NOFA) aimed at the housing development loan program. Additionally, nearly $2.5 million is earmarked for deeply affordable housing projects, aligning with the mayor's goals and council priorities. A significant portion of the funds, $1 million, is designated for the development of deeply affordable units at the DI site in Sugar House.

Another $1 million is allocated for wealth-building housing opportunities, supporting initiatives that promote economic stability. Notably, this year marks the first time administrative expenses have been drawn from housing funds, totaling $232,000. This change addresses rising administrative costs and the loss of tax increment funding from the Depot district, which previously supported these expenses.

During the meeting, staff members discussed the potential for transferring general fund dollars to cover administrative costs, a practice adopted by several other Utah cities. This suggestion was noted as a future consideration, especially as the gap in funding for administrative expenses continues to widen.

The meeting also addressed obligated expenses, which include allocations required by interlocal agreements with the school district and county. These funds must be directed towards family or workforce housing and cannot be allocated through loans as mandated by the county.

In conclusion, the CRA meeting outlined a comprehensive plan for housing fund allocation, emphasizing the importance of affordable housing initiatives and the need for ongoing discussions regarding administrative funding strategies. The board is expected to revisit these topics as they develop projects that meet the outlined requirements.