Salt Lake City Board approves budget amendment and partnership for workforce housing

The Salt Lake City Community Reinvestment Agency (CRA) made significant strides in affordable housing during its June 10 meeting, unanimously approving a resolution to amend the fiscal year 2025 budget. This decision paves the way for a partnership with NeighborWorks Salt Lake City, aimed at developing shared equity workforce housing in the Poplar Grove and Fair Park neighborhoods.

The CRA allocated $2.1 million to NeighborWorks Salt Lake, a community-based organization, to support two residential developments. The funding sources include $1.4 million from the housing development fund and $700,000 from the Westside Community Initiative funds. This initiative is designed to create affordable housing options by separating land ownership from home ownership through the establishment of the NeighborWorks Salt Lake Community Land Trust.

During the meeting, project managers outlined plans for two developments: a 13-unit townhome project in Poplar Grove and a larger project in Fair Park, tentatively planned for 18 to 20 units. Both projects aim to meet specific affordability criteria, including deed restrictions for units at 120% of the area median income (AMI) and a minimum of 20% of units affordable to households earning 80% AMI.

However, NeighborWorks is seeking a waiver from the CRA's sustainability policy, which mandates high energy efficiency standards for funded projects. The organization argues that redesigning the buildings to meet these standards would delay the project by three to six months. The board is now tasked with deciding whether to grant this waiver, which could set a precedent for future developments.

The CRA's commitment to affordable housing reflects a proactive approach to addressing community needs, with the potential to significantly impact local residents' access to homeownership. The next steps will involve finalizing funding agreements with NeighborWorks, contingent upon meeting the outlined conditions.