Programs + Resources

The RDA Loan Program provides critical gap financing for projects that advance the goals and objectives outlined in Project Area Plans. We work with project developers and lenders to bridge the funding gap between a project’s economics and market realities. In support of the RDA’s mission, we can assume a higher level of risk than traditional lenders to ensure that transformative projects get built. While our approach is flexible, we incentivize projects that achieve the RDA’s goals for affordable housing, placemaking, sustainability, high quality urban design, and economic development in accordance with our mission, values, and livability benchmarks.

THRESHOLD REQUIREMENTS

Eligible Costs:
The RDA Loan Program provides financing for construction costs, or hard costs, to facilitate various development projects, including new construction, building rehabilitation, and energy efficiency upgrades.

Objective Requirement:

• The project must be located in an RDA Project Area, and meet at least one Project Area Objective as provided through the most recent Project Area Strategic Plan; <OR>
• The project is located within Salt Lake City municipal boundaries and provides affordable or mixed-income housing.

Financing Structure Requirement:
The RDA Loan Program is intended to provide gap financing to supplement existing, secured
financing. Under specific circumstances, the Program may provide primary loans for projects that demonstrate a high level of community benefit.

Design Requirement:
Projects approved for funding must support any applicable RDA Design Guidelines.

TERMS AND PROVISIONS

Term & Amortization:
The standard loan term is 5 years with a 20 year amortization period. A 5-year option to extend the overall loan term to 10 years may be available, with an interest rate increase of 2% at the five-year extension. Terms outside of this standard will be considered on a case-by-case basis. Affordable housing projects may qualify for an extended amortization period.

Standard Interest Rate:
Interest rates are fixed at 300 basis points (3%) more than the 5-year United States Treasury rate at loan closing. A reduction to the standard interest rate is available if the project meets one or more Public Benefit criteria. For each criterion fulfilled, the project will receive a 50 basis points (one half of one percent) reduction from the standard interest rate, with a maximum reduction of 300 basis points.

Limits to Assistance:
Loan maximums are limited to the demonstrated gap in available financing to cover project costs. Loan amounts will be sized to cover the gap in financing to meet the lower of a debt coverage ratio (DCR) of 1.1 or a loan to value (LTV) of 95%. A DCR of 1.2 or LTV of 90% must be met for primary loans.

The Granary District Adaptive Reuse Loan Program provides forgivable loans to encourage the reuse and revitalization of the Granary District’s unique stock of warehouse and industrial buildings. The loans are intended to ease the sometimes daunting cost of the necessary building code updates local developers face when renovating aging warehouses and distressed industrial buildings. By facilitating transformative development projects that increase the number of residents living, working, and visiting the Granary District, the RDA has been successfully revitalizing the area one project at a time.

Several local businesses currently reside in buildings renovated with the help of the Adaptive Reuse Program:

• Atmosphere Studios (326 W. 700 South), a locally owned company employing more than 30 people and specializing in the design and construction of branded environments, is now headquartered in a renovated warehouse.
• Fisher Brewing Company (320 W. 800 South), a local beer brewer and retailer, transformed a pair of adjacent auto garages into its brewery and taproom.
• T.F. Brewing (936 S. 300 West), also a local beer brewer and retailer, who is enjoying the result of A3 Project developers’ transformation of a tire store and garage into a brewery and taproom.
• Orchid Dynasty (365 W. 900 South), a plant and flower shop SLC-mainstay since 2001, who expanded its business into a former warehouse, which now functions as a storefront for retail sales, as well as a workspace for wedding and event staging, and online sales.

The RDA’s strategy to combine the adaptive reuse of contributing structures with new infill development in a manner that supports commercial, residential, and light industrial uses in the Granary District has proven successful, and it invites more developers and businesses to take advantage of the Adaptive Reuse Program. Renewed and refunded by the RDA Board of Directors in Summer 2017, the Adaptive Reuse Program is ready to help support more adaptive reuse in the Granary neighborhood. For more information about eligibility, funding, match requirement, and terms, see this specification document.

Wasatch Brownfields Coalition

The RDA is a member of the Wasatch Brownfields Coalition, along with Salt Lake City’s Sustainability Department, Salt Lake County, and Ogden City. “Brownfields” are defined as real property where the expansion, redevelopment, or reuse may be complicated by the presence or potential presence of contamination.

The Coalition was awarded a grant from the Environmental Protection Agency (EPA) in 2022 to be used as capital in an EPA Brownfields Revolving Loan Fund (RLF). These funds, in the form of low interest loans and grants, are made available to eligible private, public, and nonprofit entities seeking to cleanup and redevelop brownfield sites throughout Salt Lake County and Ogden City.

For more information on this opportunity, please visit Salt Lake County’s dedicated website, which includes detailed eligibility and application information: EPA Brownfields Revolving Loan Fund