CRA approves NeighborWorks Salt Lake shared‑equity term sheet and grants limited sustainability waiver; staff directed to study standards for small projects
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Summary
The CRA approved an amended term sheet for a $2.1 million grant to NeighborWorks Salt Lake for two shared-equity homeownership developments, granted a sustainability waiver for a small project (Molterra Lanes) that cannot meet the CRA’s energy-performance metric, and directed staff to study sustainability requirements for smaller developments.
The Community Reinvestment Agency Board approved an amended and restated term sheet for a $2,100,000 CRA allocation to NeighborWorks Salt Lake for two shared-equity homeownership projects and granted a waiver to parts of the CRA’s sustainable development policy for one of those projects, while asking staff to study how policy applies to smaller residential developments.
Brent Seabray and Tracy Tran of the CRA summarized the request. The $2.1 million grant supports development of two for‑sale ownership projects that will be integrated into NeighborWorks Salt Lake’s community land trust. Staff described the first project, Molterra Lanes (13 units), as already further along in design and too small to produce an Energy Star portfolio-manager score (the portfolio tool requires a 20‑unit minimum). The second project, Stanbridge, is larger (about 18–20 units) and staff said it remains intended to meet the CRA sustainability standards.
The CRA’s sustainability policy requires two items: (1) enhanced energy performance (an Energy Star design score of 90 or a comparable energy‑use‑intensity target) and participation in Salt Lake City’s benchmarking program; and (2) emissions‑free building operation (no on‑site combustion of fossil fuels). At a June meeting the board had already granted a partial waiver on the emissions‑free item for Molterra Lanes so the project could use natural gas for HVAC while keeping electric appliances.
NeighborWorks submitted a design target site energy‑use‑intensity calculation that staff converted to an Energy Star equivalent and found the project would rate roughly 69 — well below the CRA target of 90. NeighborWorks told the board it would face substantial redesign, additional cost and schedule delay to remove natural gas and meet the higher energy standard, and that the Stanbridge project will be designed to meet the CRA standard.
Board members split over the tradeoffs between speed, cost and long‑term operating expenses for residents. Several members emphasized the urgency of producing workforce and ownership housing now; others pressed for more data about lifecycle costs and payback periods for energy upgrades. The board ultimately approved the amended term sheet and attached a legislative intent that CRA staff study sustainability requirements for smaller developments, including consideration of upfront versus life‑cycle costs to tenants. The motion passed 5–1 (Board member Dugan opposed; Board member Lopez Chavez absent).
Why it matters: The action allows one small, for‑sale project to proceed with natural‑gas HVAC despite falling short of the CRA’s Energy Star threshold, while directing staff to examine whether the sustainability policy and metrics should be adapted for smaller residential projects that are designed under the residential code.
Next steps: CRA staff will finalize the amended term sheet with NeighborWorks and complete the study of sustainability requirements for smaller developments and life‑cycle cost considerations, per the board’s legislative intent.
