Bonding for downtown affordable housing project approved

The planned development of more affordable housing in downtown Salt Lake City got a strong push this week as a state funding agency announced the approval of nearly $10 million in bonding for a proposed complex.

The Private Activity Bond Authority announced Wednesday the authorization of $9.8 million in tax-exempt bonding for a $13 million multi-family apartment development in downtown Salt Lake City. If completed as proposed, the project would provide 124 units of affordable rental housing to residents making 60 percent of the Salt Lake County household median income — which would be about $40,680, according to the Utah Housing Coalition.

According to a news release, the approval for the construction of the project came at the PAB board meeting on July 8.

The bonds will help Wasatch Advantage Group build Providence Place Apartments, a proposed five-story project consisting of studio, one- and two-bedroom units to be located at 309 E. 100 South, the release stated.

Upon completion, Providence Place is expected to offer amenities including secured covered parking, a clubhouse, community room, library and computer room with Wi-Fi access, the release said.

The Private Activity Bond Authority is Utah's tax-exempt bonding authority charged with creating a lower-cost, long-term source of capital under the Federal Tax Act of 1986.

Gordon Walker, board chairman and director of the Utah Division of Housing and Community Development, told the Deseret News that the federal government allocates more than $28 billion annually to states on a per capita basis, with Utah receiving $273,270,000 bond authority in 2009.

The program is managed by the Division of Housing and Community Development under the Utah Department of Community and Culture.

Walker said that, while Salt Lake City has recently seen much more housing being built in the downtown area, this project would be among the few that has a specific affordability component.

"Here is a project coming in at 60 percent (area median income) that a lot of people can afford," he said.

When finished, the Providence Place units will offer a viable alternative for people who want to live downtown and would like to be able to live in a "walkable community."

The project would be developed by the residential development arm of Wasatch Advantage Group, based in Mission Viejo, Calif., according to Scott Overman, president of subsidiary Wasatch Residential.

The company already has 13 multi-family properties in Utah, including 12 in the Salt Lake City area, he said.

Overman told the Deseret News that the remainder of the financing for the project is not yet in place, but it could be finalized by October.

"If the funding and everything falls into place, then we'll start construction in the spring," he said.

Walker said that development of affordable rental projects such as Providence Place could help in the revitalization efforts underway in the downtown area.

"We've seen that there was a demand for condominiums," he said. "With the demand for that market, there is also going to be a demand for affordable (rental) units."

e-mail: jlee@desnews.com