The creation of the Utah Equitable TOD (UETOD) Fund came out of discussions held by the Wasatch Choice 2040 Consortium that had created a “tool box” of accessible programs for use by the communities to plan a better future for their residents. Those tools included a Form Based Code manual, a Regional Housing Plan and Regional Analysis of Fair Housing Choice, an illustrative Planning Process and models of transit oriented development types among others.
The group identified that the capital needed for TOD developments was missing. Communities need access to funds to allow for the development of projects that will enhance their community, serve the broad range of people and provide close access to reliable and affordable transportation. A loan fund task force was created by the Consortium to help craft the structure, size, operation and conditions of a TOD funds, that once established would incentive development around public transit stops.
The fund was created on November 5, 2015 and Utah Center for Neighborhood Stabilization serves as the Administrative Agent for the fund. The Mission of fund is to provide affordable housing, both homeownership and rental, within one half mile of high capacity transit and/or high frequency transit that meets housing needs for households earning less than 80%, with a priority given to developers targeting 50% or below of area median income (AMI).
The goal of the Fund is that 100% of the housing units financed, in aggregate, should be designated for residents with household income equal to or less than 80% of Area Median Income. For rental projects, at least 60% of the total units produced by the Fund will be for residents at 60% AMI or below. For homeownership projects, all of the homes produced should be for residents at 80% AMI or below. In addition, the Fund will ensure that all rental units/homes meet the above affordability requirements for at least 15 year. The construction of multifamily housing has increased substantially in the last two years with a high increase of market rate units. The need for affordable housing is still high even with Utah’s employment growth being strong and the low unemployment rate in Utah.
To learn more about the Utah Equitable TOD Fund please read our business plan.