Chief Sponsor: Mike Winder

Senate Sponsor: Howard A. Stephenson

6     Cosponsors:
7     James A. Dunnigan
8     Steve Eliason
Craig Hall
Karen Kwan
Marie H. Poulson
Elizabeth Weight

11     General Description:
12          This bill modifies provisions related to the Housing and Community Development
13     Division.
14     Highlighted Provisions:
15          This bill:
16          ▸     defines terms;
17          ▸     describes the requirements of a housing pilot program for low-income students;
18          ▸     requires the Department of Workforce Services and the Olene Walker Housing
19     Loan Fund Board to select a provider to develop and implement the pilot program;
20          ▸     describes reporting requirements related to the pilot program; and
21          ▸     provides a sunset date.
22     Money Appropriated in this Bill:
23          This bill appropriates:
24          ▸     to the Olene Walker Housing Loan Fund, as an ongoing appropriation
25               •     from the General Fund, $250,000; and
26          ▸     to the Department of Workforce Services -- Housing and Community Development,

27     as an ongoing appropriation
28               •     from the Olene Walker Housing Loan Fund, $250,000.
29     Other Special Clauses:
30          None
31     Utah Code Sections Affected:
32     AMENDS:
33          35A-8-505, as last amended by Laws of Utah 2016, Chapter 131
34          63I-1-235, as last amended by Laws of Utah 2016, Chapter 43
35     ENACTS:
36          35A-8-509, Utah Code Annotated 1953

38     Be it enacted by the Legislature of the state of Utah:
39          Section 1. Section 35A-8-505 is amended to read:
40          35A-8-505. Activities authorized to receive fund money -- Powers of the executive
41     director.
42          At the direction of the board, the executive director may:
43          (1) provide fund money to any of the following activities:
44          (a) the acquisition, rehabilitation, or new construction of low-income housing units;
45          (b) matching funds for social services projects directly related to providing housing for
46     special-need renters in assisted projects;
47          (c) the development and construction of accessible housing designed for low-income
48     persons;
49          (d) the construction or improvement of a shelter or transitional housing facility that
50     provides services intended to prevent or minimize homelessness among members of a specific
51     homeless subpopulation; [and]
52          (e) other activities that will assist in minimizing homelessness or improving the
53     availability or quality of housing in the state for low-income persons; and
54          (f) a housing pilot program for low-income students as described in Section
55     35A-8-509; and
56          (2) do any act necessary or convenient to the exercise of the powers granted by this part
57     or reasonably implied from those granted powers, including:

58          (a) making or executing contracts and other instruments necessary or convenient for
59     the performance of the executive director and board's duties and the exercise of the executive
60     director and board's powers and functions under this part, including contracts or agreements for
61     the servicing and originating of mortgage loans;
62          (b) procuring insurance against a loss in connection with property or other assets held
63     by the fund, including mortgage loans, in amounts and from insurers [it] the board considers
64     desirable;
65          (c) entering into agreements with a department, agency, or instrumentality of the
66     United States or this state and with mortgagors and mortgage lenders for the purpose of
67     planning and regulating and providing for the financing and refinancing, purchase,
68     construction, reconstruction, rehabilitation, leasing, management, maintenance, operation, sale,
69     or other disposition of residential housing undertaken with the assistance of the department
70     under this part;
71          (d) proceeding with a foreclosure action, to own, lease, clear, reconstruct, rehabilitate,
72     repair, maintain, manage, operate, assign, encumber, sell, or otherwise dispose of real or
73     personal property obtained by the fund due to the default on a mortgage loan held by the fund
74     in preparation for disposition of the property, taking assignments of leases and rentals,
75     proceeding with foreclosure actions, and taking other actions necessary or incidental to the
76     performance of [its] the board's duties; and
77          (e) selling, at a public or private sale, with public bidding, a mortgage or other
78     obligation held by the fund.
79          Section 2. Section 35A-8-509 is enacted to read:
80          35A-8-509. Housing pilot program for low-income students.
81          (1) As used in this section:
82          (a) "Centralized housing" means multifamily housing that:
83          (i) provides housing for higher education students in Salt Lake County; and
84          (ii) is not governed or owned by a college or university.
85          (b) "Eligible provider" means a nonprofit organization that:
86          (i) meets the requirements of developing and implementing a program as described in
87     this section; and
88          (ii) is not owned, operated, or governed by a single college or university.

89          (c) "Low-income student" means a student who:
90          (i) at the time of high school graduation lived in a household with a gross income at or
91     below 135% of the federal poverty level;
92          (ii) is actively pursuing a four-year college or university degree; and
93          (iii) is selected to participate in the program.
94          (d) "Program" means a housing pilot program for low-income students as described in
95     this section.
96          (2) Subject to legislative appropriations or donations to the fund specifically for the
97     program and subject to the board determining there is an eligible provider that meets the
98     requirements of this section, on or before August 1, 2017, the board shall select, with the
99     assistance of the executive director and the director, an eligible provider to develop and
100     implement a housing pilot program for low-income students.
101          (3) The program shall provide:
102          (a) centralized housing near a main transportation corridor in Salt Lake County for
103     each low-income student with no initial cost to the low-income student and that does not
104     require the low-income student to go into debt for the housing;
105          (b) a code of conduct for low-income students designed to facilitate the students'
106     emotional and physical health, including adequate sleep, exercise, and nutrition;
107          (c) upper-level and postgraduate mentors living onsite with low-income student
108     tenants;
109          (d) early and ongoing academic planning for each low-income student, including an
110     online help desk available 24 hours a day, seven days a week;
111          (e) ongoing life skills training sessions for low-income students conducted by
112     professionals and program mentors, including training in time management, professional
113     communication, personal financial management, emotional self-regulation, and physiological
114     health;
115          (f) successive summer internship opportunities throughout each low-income student's
116     participation in the program; and
117          (g) job placement and career networking assistance upon graduation.
118          (4) An eligible provider selected to develop and implement a program shall:
119          (a) provide matching funding from outside investors or donors at least equal to money

120     awarded to the provider from the fund; and
121          (b) have demonstrated experience providing a similar mentor-based program of support
122     to students from low-income households at a four-year college or university in the state where
123     the students from low-income households do not incur student loan or other debt and pay no
124     out-of-pocket expenses to the provider.
125          (5) In addition to the other requirements of this section, in selecting low-income
126     students for the program, an eligible provider may select students based on an application
127     process developed by the eligible provider, high school grade point average, ACT or other
128     college entrance examination scores, written essays, and in-person interviews.
129          (6) On or before October 1, the provider, with the assistance of the department, shall
130     provide an annual written report to the Economic Development and Workforce Services
131     Interim Committee that describes:
132          (a) how many low-income students are being served by the program and the students'
133     progress in obtaining four-year college or university degrees, internships, and job opportunities;
134          (b) the success in attracting outside investors and donors to contribute to the program;
135          (c) the total cost of the program relative to the number of low-income students served;
136     and
137          (d) recommendations whether the program should be continued or if changes should be
138     made to improve the program.
139          Section 3. Section 63I-1-235 is amended to read:
140          63I-1-235. Repeal dates, Title 35A.
141          (1) Subsection 35A-4-312(5)(p) is repealed July 1, 2017.
142          (2) Title 35A, Chapter 5, Part 4, Career and Technical Education Board, is repealed
143     July 1, 2018.
144          (3) Section 35A-8-509 is repealed July 1, 2021.
145          Section 4. Appropriation.
146          The following sums of money are appropriated for the fiscal year beginning July 1,
147     2017, and ending June 30, 2018. These are additions to amounts previously appropriated for
148     fiscal year 2018. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
149     Act, the Legislature appropriates the following sums of money from the funds or accounts
150     indicated for the use and support of the government of the state of Utah:

151     ITEM 1
152          To Fund and Account Transfers -- General Fund -- Olene Walker Housing Loan Fund
153               From General Fund

154               Schedule of Programs:
155                    Olene Walker Housing Loan Fund               $250,000
156     ITEM 2
157          To Department of Workforce Services -- Housing and Community Development
158               From Olene Walker Housing Loan Fund

159               Schedule of Programs:
160                    Housing for low-income students pilot program     $250,000

Legislative Review Note
Office of Legislative Research and General Counsel