7 LONG TITLE
8 General Description:
9 This bill modifies provisions relating to the Olene Walker Housing Loan Fund and
10 other housing issues.
11 Highlighted Provisions:
12 This bill:
13 ▸ prohibits a municipality from adopting an ordinance that prohibits a homeless
14 shelter from operating year-round;
15 ▸ prioritizes certain applications for grants or loans from the Olene Walker Housing
16 Loan Fund;
17 ▸ modifies the activities for which the executive director of the Department of
18 Workforce Services may distribute money from the Olene Walker Housing Loan
20 ▸ addresses how the executive director of the Department of Workforce Services
21 distributes fund money;
22 ▸ provides a sunset date for certain provisions related to homeless shelters; and
23 ▸ makes technical and conforming changes.
24 Money Appropriated in this Bill:
26 Other Special Clauses:
27 This bill provides a special effective date.
28 Utah Code Sections Affected:
30 35A-8-504, as last amended by Laws of Utah 2012, Chapter 347 and renumbered and
31 amended by Laws of Utah 2012, Chapter 212
32 35A-8-505, as renumbered and amended by Laws of Utah 2012, Chapter 212
33 35A-8-507, as renumbered and amended by Laws of Utah 2012, Chapter 212
34 63I-1-210, as renumbered and amended by Laws of Utah 2008, Chapter 382
36 10-9a-526, Utah Code Annotated 1953
38 Be it enacted by the Legislature of the state of Utah:
39 Section 1. Section 10-9a-526 is enacted to read:
40 10-9a-526. Homeless shelters.
41 (1) As used in this section, "homeless shelter" means a facility that:
42 (a) is located within a municipality;
43 (b) provides temporary shelter to homeless families with children;
44 (c) has capacity to provide temporary shelter to at least 200 individuals per night; and
45 (d) began operation on or before January 1, 2016.
46 (2) A municipality may not adopt or enforce an ordinance or other regulation that
47 prohibits a homeless shelter from operating year-round.
48 Section 2. Section 35A-8-504 is amended to read:
49 35A-8-504. Distribution of fund money.
50 (1) The executive director shall:
51 (a) make grants and loans from the fund for any of the activities authorized by Section
52 35A-8-505, as directed by the board;
53 (b) establish the criteria with the approval of the board by which loans and grants will
54 be made; and
55 (c) determine with the approval of the board the order in which projects will be funded.
56 (2) The executive director shall distribute, as directed by the board, any federal money
57 contained in the fund according to the procedures, conditions, and restrictions placed upon the
58 use of the money by the federal government.
59 (3) (a) The executive director shall distribute, as directed by the board, any funds
60 received under Section 17C-1-412 to pay the costs of providing income targeted housing within
61 the community that created the community development and renewal agency under Title 17C,
62 Limited Purpose Local Government Entities - Community Development and Renewal
63 Agencies Act.
64 (b) As used in Subsection (3)(a):
65 (i) "Community" [
66 Section 17C-1-102.
67 (ii) "Income targeted housing" [
68 defined in Section 17C-1-102.
69 (4) Except for federal money and money received under Section 17C-1-412, the
70 executive director shall distribute, as directed by the board, money [
71 to the following requirements:
90 (a) the executive director shall distribute at least 30% of the money in the fund to rural
91 areas of the state;
92 (b) the executive director shall distribute at least 70% of the money in the fund to
93 benefit persons whose annual income is at or below 50% of the median family income for the
95 (c) the executive director may not use more than 3% of the revenues of the fund to
96 offset department or board administrative expenses;
97 (d) the executive director shall distribute any remaining money in the fund to benefit
98 persons whose annual income is at or below 80% of the median family income for the state;
100 (e) if the executive director or the executive director's designee makes a loan in
101 accordance with this section, the interest rate of the loan shall be based on the borrower's
102 ability to pay.
103 (5) The executive director may, with the approval of the board:
104 (a) enact rules to establish procedures for the grant and loan process by following the
105 procedures and requirements of Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
107 (b) service or contract, under Title 63G, Chapter 6a, Utah Procurement Code, for the
108 servicing of loans made by the fund.
109 Section 3. Section 35A-8-505 is amended to read:
110 35A-8-505. Activities authorized to receive fund money -- Powers of the executive
112 At the direction of the board, the executive director may:
113 (1) provide fund money to any of the following activities:
114 (a) the acquisition, rehabilitation, or new construction of low-income housing units;
115 (b) matching funds for social services projects directly related to providing housing for
116 special-need renters in assisted projects;
117 (c) the development and construction of accessible housing designed for low-income
120 (d) the construction or improvement of a shelter or transitional housing facility that
121 provides services intended to prevent or minimize homelessness among members of a specific
122 homeless subpopulation; and
123 (e) other activities that will assist in minimizing homelessness or improving the
124 availability or quality of housing in the state for low-income persons;
125 (2) do any act necessary or convenient to the exercise of the powers granted by this part
126 or reasonably implied from those granted powers, including:
127 (a) making or executing contracts and other instruments necessary or convenient for
128 the performance of the executive director and board's duties and the exercise of the executive
129 director and board's powers and functions under this part, including contracts or agreements for
130 the servicing and originating of mortgage loans;
131 (b) procuring insurance against a loss in connection with property or other assets held
132 by the fund, including mortgage loans, in amounts and from insurers it considers desirable;
133 (c) entering into agreements with a department, agency, or instrumentality of the
134 United States or this state and with mortgagors and mortgage lenders for the purpose of
135 planning and regulating and providing for the financing and refinancing, purchase,
136 construction, reconstruction, rehabilitation, leasing, management, maintenance, operation, sale,
137 or other disposition of residential housing undertaken with the assistance of the department
138 under this part;
139 (d) proceeding with a foreclosure action, to own, lease, clear, reconstruct, rehabilitate,
140 repair, maintain, manage, operate, assign, encumber, sell, or otherwise dispose of real or
141 personal property obtained by the fund due to the default on a mortgage loan held by the fund
142 in preparation for disposition of the property, taking assignments of leases and rentals,
143 proceeding with foreclosure actions, and taking other actions necessary or incidental to the
144 performance of its duties; and
145 (e) selling, at a public or private sale, with public bidding, a mortgage or other
146 obligation held by the fund.
147 Section 4. Section 35A-8-507 is amended to read:
148 35A-8-507. Application process and priorities.
149 (1) (a) In each calendar year that money is available from the fund for distribution by
150 the executive director under the direction of the board, the executive director shall, at least
151 once in that year, announce a grant and loan application period by sending notice to interested
153 (b) The executive director shall accept applications that are received in a timely
155 (2) The executive director shall give [
156 activities in the following order:
157 (a) first, to applications for projects and activities intended to minimize homelessness;
158 (b) second, to applications for projects and activities that use existing privately owned
159 housing stock, including privately owned housing stock purchased by a nonprofit public
160 development [
161 (c) third, to all other applications.
162 (3) [
163 director shall give preference to applications that demonstrate the following:
164 (a) a high degree of leverage with other sources of financing;
165 (b) high recipient contributions to total project costs, including allied contributions
166 from other sources such as professional, craft, and trade services and lender interest rate
168 (c) high local government project contributions in the form of infrastructure
169 improvements, or other assistance;
170 (d) projects that encourage ownership, management, and other project-related
171 responsibility opportunities;
172 (e) projects that demonstrate a strong probability of serving the original target group or
173 income level for a period of at least 15 years;
174 (f) projects where the applicant has demonstrated the ability, stability, and resources to
175 complete the project;
176 (g) projects that appear to serve the greatest need;
177 (h) projects that provide housing for persons and families with the lowest income;
178 (i) projects that promote economic development benefits;
179 (j) projects that [
180 local government plan to address housing and homeless services; and
181 (k) projects that would mitigate or correct existing health, safety, or welfare problems.
182 (4) The executive director may give consideration to projects that increase the supply
183 of accessible housing.
184 Section 5. Section 63I-1-210 is amended to read:
185 63I-1-210. Repeal dates, Title 10.
186 Section 10-9a-526 is repealed December 31, 2020.
187 Section 6. Effective date.
188 If approved by two-thirds of all the members elected to each house, this bill takes effect
189 upon approval by the governor, or the day following the constitutional time limit of Utah
190 Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
191 the date of veto override.