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CRA amends loan terms for Book Cliffs Lodge, consolidating $4.74 million in affordable-housing loans
Summary
The CRA approved modified loan terms that consolidate three existing city loans totaling $4,740,000 for the Book Cliffs Lodge affordable housing project at 1159 South West Temple. The loans will be restructured with 40-year terms, 2.5% interest, and cash-flow repayment.
The Salt Lake City Community Reinvestment Agency Board voted to amend and consolidate three existing city loans totaling $4,740,000 for Book Cliffs Lodge, a proposed affordable housing development at 1159 South West Temple.
Lisonbee, a council policy analyst, introduced the item and said the modification request would align three previously issued loans on common terms. Staff said the combined request would set a 40‑year term at 2.5% interest for each loan, with cash-flow repayment. Under the proposal, the CRA would administer $1,000,000 of CRA funds while the city’s Housing Stability division (HOME funds) would administer $3,740,000.
Staff noted the project would provide 55 one‑bedroom units and that the loans were originally awarded in 2018, 2023 and 2024 under differing terms. Lisonbee said the most recent conditional commitment period would be extended to 24 months from the most recent funding approval (expiring in March 2026 under staff’s timeline) to allow the project to proceed toward closing with the revised terms.
Underwriting considerations raised by staff included an assumed HUD-approved vacancy rate of 3% (lower than the CRA’s usual underwriting assumption) and the fact that the city and CRA would supply roughly 26% of the project cost. Staff said the seller’s note for the land is junior to the city loans and would be repaid after other cash-flow repayments.
Action and vote: Board member Dugan moved the resolution to amend and consolidate the loan terms; the motion was seconded by board member Wharton. The resolution passed 5–0, with board members Pui and Lopez Chavez absent.
Why it matters: The changed loan terms align financing across previously separate awards and provide long-term, low-interest support intended to make the Book Cliffs Lodge project financially feasible and move it toward construction and occupancy.
Next steps: If approved, staff will finalize the amended loan documents and proceed toward closing under the new terms and the 24‑month conditional commitment period.
