Salt Lake City filed two applications Tuesday for federal funding to help retire a $2.8 million debt belonging to the Salt Lake City Housing Development Corp., which builds low and moderate income housing in the city.
The first application is for $500,000 in U.S. Department of Housing and Urban Development discretionary funds to go toward purchase of the Ben Albert Apartments, 130 S. Fifth East. HUD has already approved the payment pending application.The second application is for a $1.8 million loan from HUD to help buy the Canterbury Apartments, 1357 N. Morton Dr. The loan would be repaid with other federal money over five to six years.
Revenue from the two facilities would go toward retiring HDC's debt, together with several other measures to erase the red ink.
HDC is an independent corporation, but the city is helping to erase its debt to protect the city's bond rating, which it lent to HDC so the corporation could obtain a $14.9 million bond.