Many Salt Lake City residents live in older apartments or housing that have affordable rents, not because of any government requirement or financial assistance, but because the rents have stayed low over time. These are called Naturally Occurring Affordable Housing properties, or “NOAH.”
NOAH properties make up one of the City’s largest sources of affordable housing, yet they are at risk. Without investment, buildings fall into disrepair; and when the market heats up, owners may be pressured to renovate and raise rents, displacing the residents who depend on them.
The NOAH Preservation Program helps owners preserve these properties by providing low-interest loans and grants of up to $75,000 per affordable unit for repairs and improvements. In exchange, owners agree to keep rents affordable for a minimum of 15 years through a legally recorded restrictive use agreement.
Is your property eligible?
To be considered, your property AND you as the owner must each meet all the requirements listed below. Read both sections carefully before applying.
A. Property Requirements
Your property must meets ALL of the following:
| Requirement | What This Means | |
|---|---|---|
| 1. | Located within Salt Lake City | The property must be within Salt Lake City’s city limits. |
| 2. | No existing affordability deed restriction (or one expiring within 3 years) | The property does not currently have a deed or covenant recorded on the property restricting household incomes or rents — OR it has an existing project-based affordability restriction that will expire within three years of your application date. |
| 3. | Units currently rented at affordable rates | At least some units must currently be rented (or offered for rent) at rates affordable to households at or below 80% of Area Median Income (AMI). See the rent table below to check your units. |
| 4. | Current on taxes and City utility accounts | The property must be in good standing on all City and County property taxes, water, and sewer payments. |
How to Check If Your Rents Qualify (80% AMI Maximum Rents)
An affordable unit is one where the total monthly cost to the tenant — rent plus basic utilities — does not exceed 30% of the maximum income allowed at the applicable AMI level for an assumed household size. The table below shows the maximum monthly rent by unit size at 80% AMI. If your current rents are at or below these amounts (including utilities), your units likely qualify.
| Unit Size | Maximum Rent (80% AMI) |
|---|---|
| Efficiency / Studio | ≤ $1,718 / month |
| 1 Bedroom | ≤ $1,841 / month |
| 2 Bedrooms | ≤ $2,210 / month |
| 3 Bedrooms | ≤ $2,553 / month |
| 4 Bedrooms | ≤ $2,848 / month |
| 5 Bedrooms | ≤ $3,142 / month |
Based on the Department of Housing and Urban Development (HUD) Area Median Income (AMI) for 2025.
B. Owner Requirements
You, as the property owner, must meet ALL of the following. Eligible owners include for-profit organizations, non-profit organizations, limited equity cooperatives (LECs), or buyers under a binding purchase contract. If you are a buyer under contract for an eligible property, you may apply. You will need to submit documentation of the purchase agreement along with your application.
| Requirement | What This Means | |
|---|---|---|
| 1. | Demonstrated financing gap | You must show that the cost of improving or maintaining the property while keeping rents affordable cannot be fully covered by conventional loans or other financing. |
| 2. | Property management experience | You must demonstrate experience managing rental properties, and have no history of unresolved code violations, no history of reports to consumer protection programs, and no other related complaints. |
| 3. | Tax compliant and current on City loans | You must be current on all applicable taxes and on any outstanding City loans for this or any related property or entity. |
| 4. | Legal authority to enter loan agreements | You or your organization must have the legal and corporate authority to sign a loan or grant agreement and to record a lien and deed restriction on the property. |
| 5. | Valid Salt Lake City business license | You must hold a Salt Lake City business license for rental housing or commit to obtaining one before funds are disbursed. |
| 6. | Enrolled in the Good Landlord Program | You must be enrolled in Salt Lake City’s Landlord Tenant Initiative (Good Landlord Program) or commit to enrolling before funds are disbursed. |
What can funds be used for?
Program funds may be used for the following categories of expenses. All funded work must directly support the preservation and long-term viability of the affordable units.
| Category | Description | Examples | |
|---|---|---|---|
| 1. | Emergency Stabilization | Capital costs to address urgent physical needs that, if left unrepaired, could harm residents or compromise the building structure. | Roof repair or replacement; mold assessment and remediation; HVAC, plumbing, or electrical systems; windows, doors, or exterior walls; fire suppression, egress, or ADA access improvements |
| 2. | Long-Term Viability Renovations | Capital costs to ensure the property remains viable and affordable over the long term. | Kitchen and bathroom upgrades; flooring and interior paint; historic preservation work (for properties on the historic register); common area improvements |
| 3. | Limited Operating Expenses | In conjunction with capital expenses only, operating costs may be funded to address documented operating shortfalls and stabilize the property. Operating expenses alone will not be funded and may not exceed 20% of the total award. | Utilities during rehabilitation, operating reserves for deeply affordable units |
Funding Terms
The maximum assistance is $75,000 per affordable unit. The specific terms, including interest rate, payment structure, grant availability, and equity requirement, depend on the affordability level you commit to. Deeper affordability commitments receive better terms, including grants and lower interest rates.
Review the table below to understand which column applies to the affordability level you plan to propose.
| Term | Master Lease with Qualified Agency | Deed Restriction Up to 30% AMI | Deed Restriction Up to 50% AMI | Deed Restriction Up to 80% AMI |
|---|---|---|---|---|
| Rent Restriction | Fair Market Rent or HUD Local Payment Standard | Up to 30% AMI | Up to 50% AMI | Up to 80% AMI |
| Income Restriction | Up to 50% AMI (with housing voucher) | Up to 30% AMI | Up to 50% AMI | Up to 80% AMI |
| Maximum Grant per Unit | Up to $2,000 | Up to $5,000 | Up to $2,000 | None (loan only) |
| Maximum Total Assistance per Unit | $75,000 | $75,000 | $75,000 | $50,000 |
| Interest Rate | 1% | 0% | 1% | 3% |
| Maximum Loan Term | 30 years | 30 years | 30 years | 30 years |
| Payment Type | Deferred 5 years, then monthly amortized | Fully deferred; balloon payment due at end of term | Deferred 5 years, then monthly amortized | Monthly amortized from start |
| Debt Coverage Ratio | 1.15 | 1.10 | 1.15 | 1.20 |
| Affordability Term | 15 years or loan term, whichever is longer | 15 years or loan term, whichever is longer | 15 years or loan term, whichever is longer | 15 years or loan term, whichever is longer |
| Minimum Owner Equity Contribution | 10% of project cost | None | 10% of project cost | 20% of project cost |
Collateral: All awards are secured by a deed of trust and a restrictive use agreement recorded on the property. This means future owners of the property are also bound by the affordability requirements.
What you agree to if awarded
If awarded, you will receive a letter of conditional commitment from the City. Awardees will work with the City to finalize the loan and/or grant agreement and record a restrictive use agreement and deed of trust on the property. These agreements formalize the following requirements for the full duration of the affordability term.
A. Rent Restrictions
Monthly rents for all affordable units must not exceed the limits applicable to your chosen affordability tier (see Section IV). All required housing costs charged to tenants (rent plus utilities and mandatory monthly fees) count toward the rent limit. Rents for affordable units may be adjusted each year based on HUD’s area median income.
| Unit Size | Max Rent 30% AMI | Max Rent 50% AMI | Max Rent 80% AMI |
|---|---|---|---|
| Efficiency / Studio | ≤ $644 / month | ≤ $1,073 / month | ≤ $1,718 / month |
| 1 Bedroom | ≤ $690 / month | ≤ $1,150 / month | ≤ $1,841 / month |
| 2 Bedrooms | ≤ $828 / month | ≤ $1,381 / month | ≤ $2,210 / month |
| 3 Bedrooms | ≤ $957 / month | ≤ $1,595 / month | ≤ $2,553 / month |
| 4 Bedrooms | ≤ $1,068 / month | ≤ $1,780 / month | ≤ $2,848 / month |
| 5 Bedrooms | ≤ $1,178 / month | ≤ $1,963 / month | ≤ $3,142 / month |
B. Income Restrictions
Affordable units may only be rented to households whose annual income is at or below the applicable AMI limit, adjusted for household size. Income must be verified before a new tenant moves in. Existing tenants with active leases at the time of award are not required to re-qualify, but new tenants in affordable units must meet income requirements going forward.
| Household Size | Max Income 30% AMI | Max Income 50% AMI | Max Income 80% AMI |
|---|---|---|---|
| 1 person | $25,770 | $42,950 | $68,720 |
| 2 persons | $29,460 | $49,100 | $78,560 |
| 3 persons | $33,150 | $55,250 | $88,400 |
| 4 persons | $36,810 | $61,350 | $98,160 |
| 5 persons | $39,780 | $66,300 | $106,080 |
| 6 persons | $42,720 | $71,200 | $113,920 |
Based on the Department of Housing and Urban Development (HUD) Area Median Income (AMI) for 2025.
C. Lease Terms
Affordable units must be offered as permanent housing. All leases for Affordable units must have a minimum term of six (6) months.
D. Anti-Displacement
Tenants may not be permanently displaced because of rehabilitation activities funded by this program. If temporary relocation is necessary during construction, you must submit a written tenant relocation plan that includes: the plan for temporary housing, moving assistance, the budget for relocation support, and the timeline for tenants to return. Relocation costs funded by this award may not exceed 20% of the total award amount.
E. No Net Decrease in Affordable Units
Your project may not result in a net decrease in the number of affordable housing units. The City may approve exceptions on a case-by-case basis if the reduction is necessary to create larger units with more bedrooms, or to serve households at lower AMI levels.
F. Improvement and Management Plan
You must provide a written plan describing the physical improvements to be made, anticipated operating costs, and how the property will be managed during and after the affordability term. The plan must include construction drawings or scope of work, a project timeline, a detailed budget, contractor information, and verification of completed work.
G. Construction Monitoring
Throughout the duration of project work, you must provide the City with regular progress updates, as well as proof of project completion at the end of construction.
H. Fair Housing
You must agree to comply with the federal Fair Housing Act.
I. Annual Reporting
You must submit an annual compliance report to the City for the full duration of the loan and deed restriction. Reporting requirements will be specified in the Loan or Grant Agreement.
Still have questions?
Send us your questions at: [email protected], or email us to receive an invitation to the online info session on May 5th, 2026 from 3:00 pm to 4 pm.
