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Millcreek CRA approves participation agreement to support 23-owner condominium project
Summary
The Millcreek Community Reinvestment Agency unanimously approved Resolution 26-02 to provide up to $50,000 per unit in performance-based matching funds for a 23-unit owner-occupied condominium development, paired with Utah Housing Corporation financing and $20,000 state down-payment assistance per unit.
The Millcreek Community Reinvestment Agency on April 13 unanimously approved Resolution 26-02, authorizing a participation agreement with MC29 Development LLC to support a 23-unit owner-occupied condominium development on Villa Vista Avenue. City Manager Mike Winder presented the proposal and outlined financing partners and conditions.
Winder said the project sits immediately west of a previously approved owner-occupied townhome development at the corner of Villa Vista Avenue and Richmond Street and that financing is being facilitated through the Utah Housing Corporation in partnership with the State of Utah first-time homebuyer assistance program. Under that state program, eligible buyers can receive $20,000 in down-payment assistance per unit. The CRA’s contribution would be performance-based and capped at $50,000 per unit, with no CRA funds disbursed until Utah Housing Corporation inspectors verify construction milestones and reimburse the developer, after which the CRA would provide its matching contribution.
Russ Sorensen, the applicant, told the board that some residents at a recent open house had mistakenly characterized the development as low-income housing and asked the agency to consider the project as attainable homeownership for local buyers. "the project is intended to provide attainable homeownership opportunities for working individuals and families who meet income qualification requirements, generally in the $60,000 to $70,000 annual income range," Sorensen said. He said the target buyers are intended to be local first-time homebuyers and young families seeking to build equity and that the model could be applied to other small parcels in Millcreek if successful.
Board Member Thom DeSirant moved to approve Resolution 26-02; Board Member Nicole Handy seconded. The Recorder called the roll: Board Member Silvia Catten, Board Member DeSirant, Board Member Handy, Board Member Bev Uipi and Chair Cheri Jackson all voted yes. The motion passed unanimously.
The participation agreement is contingent on a forthcoming development agreement expected to come before the Millcreek City Council next month and on simultaneous review by the Planning Commission.
