Salt Lake City purchased an apartment complex for $1.6 million Tuesday, city Treasurer Buzz Hunt said. The purchase is part of a plan to bail out the city's debt-ridden Housing Development Corp.
The City Council voted Tuesday to use city money to buy the Canterbury Apartments, 1357 Morton Drive. The city's money will be repaid with a loan from the U.S. Department of Housing and Urban Development.The 78-unit complex will be owned by the city as a low- to moderate-income housing project, officials said.
Rental revenue generated from the complex - together with revenue from another complex, real estate assets and bond investments - will go toward paying off the Housing Development Corp.'s $2.8 million debt, officials said.
The Housing Development Corp. was set up in 1985 to build 330 units of low-income elderly housing units but fell short of its goal.