35A-8-509.5. Rural Housing Fund.
| (1) |
There is created an enterprise fund known as the “Rural Housing Fund.” |
Terms Used In Utah Code 35A-8-509.5
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Board: means the Housing Board created by this part. See Utah Code 35A-8-501
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Department: means the Department of Workforce Services created in Section 35A-1-103. See Utah Code 35A-1-102
- Director: means the director of the division. See Utah Code 35A-8-101
- Executive director: means the executive director of the department appointed under Section 35A-1-201. See Utah Code 35A-1-102
- Fund: means the Olene Walker Housing Loan Fund created by this part. See Utah Code 35A-8-501
- Housing sponsor: means a person who constructs, develops, rehabilitates, purchases, or owns a housing development that is or will be subject to legally enforceable restrictive covenants that require the housing development to provide, at least in part, affordable housing. See Utah Code 35A-8-501
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Moderate income housing: means housing occupied or reserved for occupancy by households with a gross household income equal to or less than 80% of the median gross income for households of the same size in the county in which the housing is located. See Utah Code 35A-8-101
- Rural: means a county in the state other than Utah, Salt Lake, Davis, or Weber. See Utah Code 35A-8-501
| (2) |
The Rural Housing Fund consists of money from the following:
| (a) |
money appropriated to the account by the Legislature; |
| (b) |
private contributions; |
| (c) |
donations or grants from public or private entities; and |
|
| (3) |
The Rural Housing Fund shall earn interest, which shall be deposited into the Rural Housing Fund. |
| (4) |
Subject to appropriation, the executive director may expend funds in the Rural Housing Fund to provide loans for projects that:
| (a) |
are located within:
| (i) |
a county of the third, fourth, fifth, or sixth class; or |
| (ii) |
a municipality in a county of the second class with a population of 10,000 or less; |
|
| (b) |
include moderate income housing units; and |
| (c) |
have been approved by the board in accordance with Section 35A-8-510. |
|
| (5) |
| (a) |
A housing sponsor may apply to the department to receive a loan under this section. |
| (b) |
An application under Subsection (5)(a) shall specify:
| (i) |
the location of the project; |
| (ii) |
the number, size, and income requirements of moderate income housing units that will be included in the project; and |
| (iii) |
a written commitment to enter into a deed restriction that reserves for a period of 50 years the moderate income housing units described in Subsection (5)(b)(ii). |
|
| (c) |
A commitment under Subsection (5)(b)(iii) shall be considered satisfied if a housing unit is occupied by a household that met the income requirement for moderate income housing when the household originally entered into the lease agreement for the housing unit. |
|
| (6) |
The executive director may expend up to 3% of the revenues of the Rural Housing Fund, including any appropriation to the Rural Housing Fund, to offset department or board administrative expenses. |
Enacted by Chapter 406, 2022 General Session
