H.B. 279 Enrolled

AMENDMENTS TO OLENE WALKER HOUSING TRUST FUND
1998 GENERAL SESSION
STATE OF UTAH
Sponsor: Gerry A. Adair
AN ACT RELATING TO COMMUNITY AND ECONOMIC DEVELOPMENT; REVISING
THE DEFINITION OF RURAL AREAS; ALTERING THE GUIDELINES FOR
DISTRIBUTION OF FUND MONEYS THROUGH LOANS AND GRANTS; AND MAKING
TECHNICAL CHANGES.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
9-4-701, as last amended by Chapter 10, Laws of Utah 1995
9-4-702, as last amended by Chapter 10, Laws of Utah 1995
9-4-704, as last amended by Chapter 150, Laws of Utah 1997
9-4-707, as renumbered and amended by Chapter 241, Laws of Utah 1992
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 9-4-701 is amended to read:
9-4-701. Definitions.
As used in this part:
(1) "Board" means the Housing Board created by this part.
(2) "Fund" means the Olene Walker Housing Trust Fund in the General Fund created by
this part.
(3) "Rural" means any [area in the state that is eligible for funding through Title V of the
United States Housing Act of 1949, 42 U.S.C. Section 1490, as administered by the Farmer's
Home Administration] county in the state other than Utah, Salt Lake, Davis, or Weber.
Section 2. Section 9-4-702 is amended to read:
9-4-702. Creation and administration.
(1) (a) There is created a restricted account in the General Fund known as the Olene
Walker Housing Trust Fund, administered by the executive director or his designee.
(b) The department shall be the trustee of the fund.

(2) There shall be deposited into the fund:
(a) grants, paybacks, bonuses, entitlements, and other moneys received by the department
from the federal government to preserve, rehabilitate, build, restore, or renew housing or other
activities authorized by the fund;
(b) [contributions received by the department] transfers, grants, gifts, bequests, or any money
made available from any source to implement this part; and
(c) moneys appropriated to the fund by the Legislature.
(3) The moneys in the fund shall be invested by the state treasurer according to the
procedures and requirements of Title 51, Chapter 7, except that all interest or other earnings derived
from the fund moneys shall be deposited in the fund.
Section 3. 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

- 2 -

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] At least 90% 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 distributed as grants 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 4. Section 9-4-707 is amended to read:
9-4-707. Application process and priorities.
(1) (a) In each calendar year that moneys are available from the fund for use by the executive
director, the director shall, at least once in that year, announce a grant and loan application period
by sending notice to interested persons.
(b) The executive director shall accept applications [for at least 60 days] which are received
in a timely manner.
(2) The executive director shall give first priority to applications for projects and activities
that use existing privately-owned housing stock, including privately-owned housing stock purchased
by nonprofit public development authorities.
(3) The executive director shall give preference to applications that demonstrate the
following:

- 3 -

(a) a high degree of leverage with other sources of financing;
(b) high recipient contributions to total project costs, including allied contributions from
other sources such as professional, craft and trade services, and lender interest rate subsidies;
(c) high local government project contributions in the form of infrastructure improvements,
or other assistance;
(d) projects that encourage ownership, management, and other project-related responsibility
opportunities;
(e) projects that demonstrate a strong probability of serving the original target group or
income level for a period of at least 15 years;
(f) projects where the applicant has demonstrated the ability, stability, and resources to
complete the project;
(g) projects that appear to serve the greatest need;
(h) projects that provide housing for persons and families with the lowest income;
(i) projects that promote economic development benefits;
(j) projects that allow integration into a local government housing plan; and
(k) projects that would mitigate or correct existing health, safety, or welfare problems.

- 4 -