CRA approves FY24–25 housing development loan allocations, including Northwest Pipeline phase

The Salt Lake City Community Reinvestment Agency Board on March 18 approved allocations from the Housing Development Loan Program (HDLP) for fiscal year 2024–25, agreeing to fund four of five competitive applications and to include the Northwest Pipeline project in the funding package. The board approved staff recommendations after a staff presentation and discussion of project readiness, scoring and debt stacks.

Staff said the 2024–25 NOFA (notice of funding availability) made approximately $5,770,000 available for low‑interest loans that incentivize affordable housing in new construction, preservation and rehabilitation projects. Five applications reached the finance committee; the total requested was about $7,750,000. Staff and the finance committee recommended funding four projects with available funds; together those projects would produce about 482 affordable units, staff said. One project returned previously awarded money, making an additional $710,000 available for consideration.

The board heard from CRA staff project managers about threshold requirements, scoring priorities and site locations. Staff emphasized minimum program thresholds including a 90 Energy Star target, no on‑site fossil fuel combustion and participation in the city’s Elevate Buildings program. Applicants could meet either a family-size amenity threshold (10% family units with child amenities) or a deep‑affordability threshold (10% of units at 40% AMI or lower) to qualify.

Board members asked staff about the lower number of applicants this year (9 submitted, 4 withdrew) compared with prior cycles, the potential need for gap funding to cover cost overruns, and whether staff had authority to adjust awards after closing. Staff and board members discussed past gap‑funding NOFAs and suggested the topic would be appropriate for discussion under a later agenda item on strategy and next fiscal year planning.

Board member Mano recused from Northwest Pipeline discussion and left the room for that portion. The board then considered motions to adopt the HDLP allocations. A motion to adopt the HDLP allocations, including acceptance of the Northwest Pipeline project, was made and seconded; the board voted to pass the resolution unanimously with Mano recused.

The board also received project‑level details in the packet: the largest project in the cycle was The Flats at Folsom (188 units), another project expanded its plan from 70 to 96 units without changing its CRA request, and four of the five applications were rental products. Staff noted none of the applicants qualified for HOME/CHDO funds that year.

Board members asked staff to return later with options to address risk from materials and labor cost increases (including whether to reserve returned funds for gap financing or to set an administrative overrun policy). Staff said some follow‑up could be handled in agenda item 6 (strategy for next fiscal year).

Votes at a glance • Resolution: Housing Development Loan Program (HDLP) allocations, FY24–25 — motion adopted unanimously with one recusal (Board member Mano). Outcome: approved. (Motion text in minutes: adopt resolution HDLP allocations for FY24–25, accept Northwest Pipeline project.)

What this means The board allocated the available HDLP funds across multiple projects recommended by the finance committee and formally accepted an award request tied to the Northwest Pipeline redevelopment. Staff will finalize loan terms and return with closing documents. Several board members asked staff to explore processes to respond quickly if projects need additional gap funds.

Looking ahead Staff flagged a related policy discussion later on the agenda (annual strategy and potential gap financing mechanisms) and said they will continue to monitor project readiness and report back to the board.