NeighborWorks Salt Lake reports $5.7M facilitated into Murray over two program years; asks council to consider renewed funding

NeighborWorks Salt Lake staff updated Murray City leaders Oct. 21 on two locally funded programs — a down-payment assistance (DPA) loan program and a home-repair grant program — and described current and projected activity for program years 2024–25 and 2025–26.

Katie Hanson, NeighborWorks Salt Lake’s director of homeownership services, said the DPA program provides five-year forgivable loans of up to $30,000 (for households up to 120% area median income) that forgive 20% per year as the homeowner remains in the property. The home-repair grant program offers direct grants up to $25,000, prioritizing health- and safety-related repairs.

For program year 2024–25, Hanson said NeighborWorks closed nine DPA loans (eight at $30,000 and one at $20,000) facilitating just over $2.5 million in home purchases, primarily townhomes and condos. That year the home-repair program completed four grants, with a facilitated amount just under $1.5 million and an average assisted home value of about $396,000. Hanson said program-year demographic details showed most down-payment recipients fell into the 91–120% AMI band, while repair grants served lower-AMI households.

For the current program year (July 2025–June 2026), Hanson reported four DPA loans have closed and two more are scheduled to close within 30 days; five of the closed/pending DPA awards were at the $30,000 level and one at $10,000. She said six home-repair grants are pending and construction has begun on several; the organization rolled over $20,000 from the prior year’s allocation. Hanson estimated that once pending activity completes, the two program years combined will have facilitated about $8.7 million in total investment in Murray: roughly $4.2 million in down-payment assistance and $1.484 million in home repair closed already, plus additional pending commitments that would raise those totals.

Hanson also described NeighborWorks’ Trip Lane development (12 lots) that will be sold at market rates; profits will flow back into the organization’s community land trust and affordable development initiatives. She said lots 2, 11 and 12 are nearing completion and that lots 1, 3 and 10 are under contract with permits ready and foundations planned before winter ground freeze.

During questions, City staff and council members asked about the NeighborWorks fund balance for Murray-specific DPA funds; Hanson said the current Murray DPA allocation is exhausted but a $10,000 closing is pending within 30 days. She asked the council to consider allocating additional RDA funds at the next redevelopment meeting to meet an existing wait list of applicants.

Ending: NeighborWorks said it will return data as pending loans/grants close; staff recommended the city consider whether additional RDA funding should be allocated to continue the DPA and repair programs.