H.B. 230 Enrolled

OLENE WALKER HOUSING TRUST FUND AMENDMENTS
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: Gerry A. Adair
AN ACT RELATING TO COMMUNITY DEVELOPMENT; PROVIDING FOR THE
SERVICING OF LOANS MADE BY THE OLENE WALKER HOUSING TRUST
FUND.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
9-4-704, as last amended by Chapter 265, Laws of Utah 1994
63-65-4, as last amended by Chapter 297, Laws of Utah 1994
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 9-4-704 is amended to read:
9-4-704. Distribution of fund moneys.
(1) The executive director shall:
(a) make grants and loans from the fund for any of the activities authorized by Section
9-4-705, as recommended by the board;
(b) establish the criteria by which loans and grants will be made; and
(c) determine the order in which projects will be funded.
(2) The executive director shall distribute any federal moneys contained in the fund
according to the procedures, conditions, and restrictions placed upon the use of those moneys by
the federal government.
(3) The executive director shall distribute all other moneys from the fund according to the
following requirements:
(a) Not less than 30% of all fund moneys shall be distributed to rural areas of the state.
(b) At least 50% of the moneys in the fund shall be distributed as loans to be repaid to the
fund by the entity receiving them.
(i) (A) Of the fund moneys distributed as loans, at least 50% shall be distributed to benefit
persons whose annual income is at or below 50% of the median family income for the state.

(B) The remaining loan moneys shall be distributed to benefit persons whose annual income
is at or below 80% of the median family income for the state.
(ii) The executive director or his designee shall lend moneys in accordance with this
Subsection (3) at a rate based upon the borrower's ability to pay.
(c) Any fund moneys not distributed as loans shall be distributed as grants.
(i) Ninety-five percent of the fund moneys distributed as grants shall be distributed to benefit
persons whose annual income is at or below 50% of the median family income for the state.
(ii) The remaining 5% of the fund moneys may be used by the executive director to obtain
federal matching funds or for other uses consistent with the intent of this part, including the payment
of reasonable loan processing fees, but may not be used to offset department or board administrative
expenses.
(4) The executive director may:
(a) enact rules to establish procedures for the grant and loan process by following the
procedures and requirements of Title 63, Chapter 46a, Utah Administrative Rulemaking Act[.]; and
(b) service or contract, pursuant to Title 63, Chapter 56, Utah Procurement Code, for the
servicing of loans made by the fund.
Section 2. Section 63-65-4 is amended to read:
63-65-4. Custodial officer -- Powers and duties.
(1) There is created within the Division of Finance an officer responsible for the care,
custody, safekeeping, collection, and accounting of all bonds, notes, contracts, trust documents, and
other evidences of indebtedness owned by:
(a) the state or any of its agencies; and
(b) revolving loan funds except the:
(i) Agriculture Resource Development Fund, created in Section 4-18-6;
(ii) Utah Rural Rehabilitation Fund, created in Section 4-19-4; [and]
(iii) Petroleum Storage Tank Loan Fund, created in Section 19-6-405.3[.]; and
(iv) Olene Walker Housing Trust Fund, created in Section 9-4-702.
(2) (a) Each authorizing agency shall deliver to this officer for his care, custody, safekeeping,

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collection, and accounting all bonds, notes, contracts, trust documents, and other evidences of
indebtedness owned by:
(i) the state or any of its agencies; and
(ii) revolving loan funds.
(b) This officer shall:
(i) establish systems, programs, and facilities for the care, custody, safekeeping, collection,
and accounting for the bonds, notes, contracts, trust documents, and other evidences of indebtedness
submitted to him under this Subsection (2); and
(ii) shall make available updated reports to each authorizing agency as to the status of loans
under their authority.
(3) The officer described in Section 63-65-3 shall deliver to this officer for his care, custody,
safekeeping, collection, and accounting all bonds, notes, contracts, trust documents, and other
evidences of indebtedness closed as provided in Subsection 63-65-3(2)(b).

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