H.B. 36 Affordable Housing Amendments
| Bill Sponsor:  Rep. Edwards, Rebecca P. | Floor Sponsor:  Sen. Weiler, Todd |
- Substitute Sponsor: Sen. Weiler, Todd
- Drafting Attorney: Peter Asplund
- Fiscal Analyst: Hector R. Zumaeta Santiago
- Bill Text
- Introduced
- Enrolled (Currently Displayed)
- Conference Committee Report 1
- Introduced
- Other Versions
- Related Documents
- Information
- Last Action: 23 Mar 2017, Governor Signed
- Last Location: Lieutenant Governor's office for filing
- Effective Date: 9 May 2017
- Session Law Chapter: 279
- Similar Bills
- Sections Affected
Enrolled
Printer FriendlyH.B. 36
1 AFFORDABLE HOUSING AMENDMENTS
22017 GENERAL SESSION
3STATE OF UTAH
4Chief Sponsor: Rebecca P. Edwards
5Senate Sponsor: Todd Weiler
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to housing and community development.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ creates the Economic Revitalization and Investment Fund;
14 ▸ establishes requirements for the distribution of money from the fund;
15 ▸ modifies state low-income housing tax credit provisions; and
16 ▸ makes technical and conforming changes.
17 Money Appropriated in this Bill:
18 This bill appropriates in fiscal year 2018:
19 ▸ to the Department of Workforce Services -- Economic Revitalization and
20 Investment Fund, as a one-time appropriation:
21 • from the General Fund, $2,061,000; and
22 ▸ to the Department of Workforce Services -- Olene Walker Housing Loan Fund, as a
23 one-time appropriation:
24 • from the General Fund, $500,000.
25 Other Special Clauses:
26 This bill provides retrospective operation.
27 Utah Code Sections Affected:
28 AMENDS:
29 35A-8-501, as renumbered and amended by Laws of Utah 2012, Chapter 212
30 35A-8-506, as renumbered and amended by Laws of Utah 2012, Chapter 212
31 59-7-607, as last amended by Laws of Utah 2016, Chapters 135 and 289
32 59-10-1010, as last amended by Laws of Utah 2016, Chapters 135 and 289
33 ENACTS:
34 35A-8-509, Utah Code Annotated 1953
35 35A-8-510, Utah Code Annotated 1953
36 35A-8-511, Utah Code Annotated 1953
37 35A-8-512, Utah Code Annotated 1953
38 35A-8-513, Utah Code Annotated 1953
39
40 Be it enacted by the Legislature of the state of Utah:
41 Section 1. Section 35A-8-501 is amended to read:
42 35A-8-501. Definitions.
43 As used in this part:
44 (1) "Affordable housing" means housing occupied or reserved for occupancy by
45 households whose incomes are at or below certain income requirements at rental rates
46 affordable to such households.
47 [(1)] (2) "Board" means the Housing Board created by this part.
48 [(2)] (3) "Fund" means the Olene Walker Housing Loan Fund created by this part.
49 (4) (a) "Housing sponsor" means a person who constructs, develops, rehabilitates,
50 purchases, or owns a housing development that is or will be subject to legally enforceable
51 restrictive covenants that require the housing development to provide, at least in part,
52 affordable housing.
53 (b) "Housing sponsor" may include:
54 (i) a local public body;
55 (ii) a nonprofit, limited profit, or for profit corporation;
56 (iii) a limited partnership;
57 (iv) a limited liability company;
58 (v) a joint venture;
59 (vi) a subsidiary of the Utah Housing Corporation;
60 (vii) a cooperative;
61 (viii) a mutual housing organization;
62 (ix) a local government;
63 (x) a local housing authority;
64 (xi) a regional or statewide nonprofit housing or assistance organization; or
65 (xii) any other entity that helps provide affordable housing.
66 [(3)] (5) "Rural" means a county in the state other than Utah, Salt Lake, Davis, or
67 Weber.
68 Section 2. Section 35A-8-506 is amended to read:
69 35A-8-506. Authority of the executive director.
70 [(1)] The executive director, with the approval of the board, may grant or lend fund
71 money to a housing [sponsors] sponsor.
72 [(2) "Housing sponsor" includes a person who constructs, develops, rehabilitates,
73purchases, or owns a housing development that is or will be subject to legally enforceable
74restrictive covenants that require the housing development to provide, at least in part,
75residential housing to low and moderate income persons.]
76 [(3) A housing sponsor includes:]
77 [(a) a local public body;]
78 [(b) a nonprofit, limited profit, or for profit corporation;]
79 [(c) a limited partnership;]
80 [(d) a limited liability company;]
81 [(e) a joint venture;]
82 [(f) a subsidiary of the Utah Housing Corporation or any subsidiary of the subsidiary of
83the Utah Housing Corporation;]
84 [(g) a cooperative;]
85 [(h) a mutual housing organization;]
86 [(i) a local government;]
87 [(j) a local housing authority;]
88 [(k) a regional or statewide nonprofit housing or assistance organization; or]
89 [(l) any other type of entity or arrangement that helps provide affordable housing for
90low and moderate income persons.]
91 Section 3. Section 35A-8-509 is enacted to read:
92 35A-8-509. Economic Revitalization and Investment Fund.
93 (1) There is created an enterprise fund known as the "Economic Revitalization and
94 Investment Fund."
95 (2) The Economic Revitalization and Investment Fund consists of money from the
96 following:
97 (a) money appropriated to the account by the Legislature;
98 (b) private contributions;
99 (c) donations or grants from public or private entities; and
100 (d) money returned to the department under Section 35A-8-512.
101 (3) The Economic Revitalization and Investment Fund shall earn interest, which shall
102 be deposited into the Economic Revitalization and Investment Fund.
103 (4) The executive director may distribute money from the Economic Revitalization and
104 Investment Fund to one or more projects that:
105 (a) include affordable housing units for households:
106 (i) whose income is no more than 30% of the area median income for households of
107 the same size in the county or municipality where the project is located; and
108 (ii) at rental rates no greater than the rates described in Subsection 35A-8-511(2)(b);
109 and
110 (b) have been approved by the board in accordance with Section 35A-8-510.
111 (5) (a) A housing sponsor may apply to the department to receive a distribution in
112 accordance with Subsection (4).
113 (b) The application shall include:
114 (i) the location of the project;
115 (ii) the number, size, and tenant income requirements of affordable housing units
116 described in Subsection (4)(a) that will be included in the project; and
117 (iii) a written commitment to enter into a deed restriction that reserves for a period of
118 30 years the affordable housing units described in Subsection (5)(b)(ii) or their equivalent for
119 occupancy by households that meet the income requirements described in Subsection (5)(b)(ii).
120 (c) The commitment in Subsection (5)(b)(iii) shall be considered met if a housing unit
121 is:
122 (i) (A) occupied or reserved for occupancy by a household whose income is no more
123 than 30% of the area median income for households of the same size in the county or
124 municipality where the project is located; or
125 (B) occupied by a household whose income is no more than 60% of the area median
126 income for households of the same size in the county or municipality where the project is
127 located if that household met the income requirement described in Subsection (4)(a) when the
128 household originally entered into the lease agreement for the housing unit; and
129 (ii) rented at a rate no greater than the rate described in Subsection 35A-8-511(2)(b).
130 (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
131 department may make additional rules providing procedures for a person to apply to the
132 department to receive a distribution described in Subsection (4).
133 Section 4. Section 35A-8-510 is enacted to read:
134 35A-8-510. Housing loan fund board approval.
135 (1) The board shall review the project applications described in Subsection
136 35A-8-509(5).
137 (2) The board may approve a project that meets the requirements of Subsections
138 35A-8-509(4) and (5) to receive funds from the Economic Revitalization and Investment Fund.
139 (3) The board shall give preference to projects:
140 (a) that include significant additional or matching funds from an individual, private
141 organization, or local government entity;
142 (b) that include significant contributions by the applicant to total project costs,
143 including contributions secured by the applicant from other sources such as professional, craft,
144 and trade services and lender interest rate subsidies;
145 (c) with significant local government contributions in the form of infrastructure,
146 improvements, or other assistance;
147 (d) where the applicant has demonstrated the ability, stability, and resources to
148 complete the project;
149 (e) that will serve the greatest need;
150 (f) that promote economic development benefits;
151 (g) that allow integration into a local government housing plan;
152 (h) that would mitigate or correct existing health, safety, or welfare concerns; or
153 (i) that remedy a gap in the supply of and demand for affordable housing.
154 Section 5. Section 35A-8-511 is enacted to read:
155 35A-8-511. Activities authorized to receive account money.
156 (1) The executive director may distribute funds from the Economic Revitalization and
157 Investment Fund for any of the following activities undertaken as part of an approved project:
158 (a) the acquisition, rehabilitation, or new construction of a building that includes
159 affordable housing units;
160 (b) the purchase of land for the construction of a building that will include affordable
161 housing units; or
162 (c) pre-development work, including planning, studies, design, and site work for a
163 building that will include affordable housing units.
164 (2) The maximum amount of money that may be distributed from the Economic
165 Revitalization and Investment Fund for each affordable housing unit that has been committed
166 in accordance with Subsection 35A-8-509(5)(b)(iii) is the present value, based on the current
167 market interest rate as determined by the board for a multi-family mortgage loan in the county
168 or metropolitan area where the project is located, of 360 monthly payments equal to the
169 difference between:
170 (a) the most recent United States Department of Housing and Urban Development fair
171 market rent for a unit of the same size in the county or metropolitan area where the project is
172 located; and
173 (b) an affordable rent equal to 30% of the income requirement described in Subsection
174 35A-8-509(5)(b)(ii) for a household of:
175 (i) one person if the unit is an efficiency unit;
176 (ii) two people if the unit is a one-bedroom unit;
177 (iii) four people if the unit is a two-bedroom unit;
178 (iv) five people if the unit is a three-bedroom unit;
179 (v) six people if the unit is a four-bedroom unit; or
180 (vi) eight people if the unit is a five-bedroom or larger unit.
181 Section 6. Section 35A-8-512 is enacted to read:
182 35A-8-512. Repayment of funds.
183 (1) Upon the earlier of 30 years from the date an approved project is placed in service
184 or the sale or transfer of the affordable housing units acquired, constructed, or rehabilitated as
185 part of an approved project funded under Section 35A-8-511, the housing sponsor shall remit
186 to the department:
187 (a) the total amount of money distributed by the department to the housing sponsor for
188 the project; and
189 (b) an additional amount of money determined by contract with the department prior to
190 the initial disbursement of money from the Economic Revitalization and Investment Fund.
191 (2) Any claim arising under Subsection (1) is a lien against the real property funded
192 under this chapter.
193 (3) Any money returned to the department under Subsection (1) shall be deposited in
194 the Economic Revitalization and Investment Fund.
195 Section 7. Section 35A-8-513 is enacted to read:
196 35A-8-513. Annual accounting.
197 (1) The executive director shall monitor the activities of recipients of funds from the
198 Economic Revitalization and Investment Fund on a yearly basis to ensure compliance with the
199 terms and conditions imposed on the recipient by the executive director with the approval of
200 the board.
201 (2) A housing sponsor that receives funds from the Economic Revitalization and
202 Investment Fund shall provide the executive director with an annual accounting of how the
203 money the entity received from the Economic Revitalization and Investment Fund has been
204 spent and evidence that the commitment described in Subsection 35A-8-509(5) has been met.
205 (3) The executive director shall make an annual report to the board accounting for the
206 expenditures authorized by the board.
207 (4) The board shall submit a report to the department for inclusion in the annual
208 written report described in Section 35A-1-109 that includes:
209 (a) an accounting for expenditures authorized by the board; and
210 (b) an evaluation of the effectiveness of the program.
211 Section 8. Section 59-7-607 is amended to read:
212 59-7-607. Utah low-income housing tax credit.
213 (1) As used in this section:
214 (a) "Allocation certificate" means a certificate in a form prescribed by the commission
215 and issued by the Utah Housing Corporation to a housing sponsor that specifies the aggregate
216 amount of the tax credit awarded under this section to a qualified development and includes:
217 [(i) the certificate prescribed by the commission and issued by the Utah Housing
218Corporation to each taxpayer that specifies the percentage of the annual federal low-income
219housing tax credit that each taxpayer may take as an annual credit against state income tax; or]
220 [(ii) a copy of the allocation certificate that the housing sponsor provides to the
221taxpayer.]
222 (i) the aggregate annual amount of the tax credit awarded that may be claimed by one
223 or more qualified taxpayers that have been issued a special low-income housing tax credit
224 certificate; and
225 (ii) the credit period over which the tax credit may be claimed by one or more qualified
226 taxpayers that have been issued a special low-income housing tax credit certificate.
227 (b) "Building" means a qualified low-income building as defined in Section 42(c),
228 Internal Revenue Code.
229 (c) "Credit period" means the "credit period" as defined in Section 42(f)(1), Internal
230 Revenue Code.
231 (d) (i) "Designated reporter" means, as selected by a housing sponsor, the housing
232 sponsor itself or one of the housing sponsor's direct or indirect partners, members, or
233 shareholders that will provide information to the Utah Housing Corporation regarding the
234 assignment of tax credits under this section.
235 (ii) Before the Utah Housing Corporation may issue an allocation certificate to a
236 housing sponsor, a housing sponsor shall provide the identity of the housing sponsor's
237 designated reporter to the Utah Housing Corporation.
238 (iii) Before the Utah Housing Corporation may issue a special low-income housing tax
239 credit certificate to a qualified taxpayer, a designated reporter shall provide the information
240 described in Subsection (6) to the Utah Housing Corporation.
241 [(c)] (e) "Federal low-income housing tax credit" means the federal tax credit [under]
242 described in Section 42, Internal Revenue Code.
243 [(d)] (f) "Housing sponsor" means [a corporation in the case of a C corporation, a
244partnership in the case of a partnership, a corporation in the case of an S corporation, or a
245limited liability company in the case of a limited liability company] an entity that owns a
246 qualified development.
247 [(e)] (g) "Qualified allocation plan" means [the] a qualified allocation plan adopted by
248 the Utah Housing Corporation [pursuant to] in accordance with Section 42(m), Internal
249 Revenue Code.
250 (h) "Qualified development" means a "qualified low-income housing project":
251 (i) as defined in Section 42(g)(1), Internal Revenue Code; and
252 (ii) that is located in the state.
253 (i) (i) "Qualified taxpayer" means a person that:
254 (A) owns a direct or indirect interest in a qualified development; and
255 (B) meets the requirements to claim a tax credit under this section.
256 (ii) If a housing sponsor is a partnership, limited liability company, or S corporation, a
257 "qualified taxpayer" may include any partner, member, or shareholder of the housing sponsor
258 as determined by the governing documents of the housing sponsor.
259 [(f)] (j) (i) "Special low-income housing tax credit certificate" means a certificate:
260 [(i)] (A) in a form prescribed by the commission;
261 [(ii)] (B) that [a housing sponsor] the Utah Housing Corporation issues to a qualified
262 taxpayer for a taxable year in accordance with this section; and
263 [(iii)] (C) that specifies the amount of the tax credit a qualified taxpayer may claim
264 under this section [if the taxpayer meets the requirements of this section].
265 (ii) The Utah Housing Corporation may only issue one or more special low-income
266 housing tax credit certificates if the aggregate specified amount on all special low-income
267 housing tax credit certificates issued in relation to a qualified development does not exceed the
268 aggregate amount of tax credit awarded to the qualified development and issued to a housing
269 sponsor in an allocation certificate.
270 [(g) "Taxpayer" means a person that is allowed a tax credit in accordance with this
271section which is the corporation in the case of a C corporation, the partners in the case of a
272partnership, the shareholders in the case of an S corporation, and the members in the case of a
273limited liability company.]
274 (2) (a) For taxable years beginning on or after January 1, 1995, [there is allowed] a
275 qualified taxpayer who has been issued a special low-income housing tax credit certificate by
276 the Utah Housing Corporation may claim a nonrefundable tax credit against taxes otherwise
277 due under this chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required
278 to Pay Corporate Franchise or Income Tax[, for taxpayers issued an allocation certificate] Act.
279 (b) The tax credit shall be in an amount equal to [the greater of the amount of:] the tax
280 credit amount specified on the special low-income housing tax credit certificate that the Utah
281 Housing Corporation issues to a qualified taxpayer under this section.
282 [(i) federal low-income housing tax credit to which the taxpayer is allowed during that
283year multiplied by the percentage specified in an allocation certificate issued by the Utah
284Housing Corporation; or]
285 [(ii) tax credit specified in the special low-income housing tax credit certificate that the
286housing sponsor issues to the taxpayer as provided in Subsection (2)(c).]
287 [(c) For purposes of Subsection (2)(b)(ii), the tax credit is equal to the product of:]
288 [(i) the total amount of low-income housing tax credit under this section that:]
289 [(A) a housing sponsor is allowed for a building; and]
290 [(B) all of the taxpayers may claim with respect to the building if the taxpayers meet
291the requirements of this section; and]
292 [(ii) the percentage of tax credit a taxpayer may claim:]
293 [(A) under this section if the taxpayer meets the requirements of this section; and]
294 [(B) as provided in the agreement between the taxpayer and the housing sponsor.]
295 [(d)] (c) (i) For [the] a calendar year beginning [on January 1, 1995, through the
296calendar year beginning on January 1, 2025] on or before December 31, 2016, the aggregate
297 annual tax credit that the Utah Housing Corporation may allocate for the credit period
298 described in Section 42(f), Internal Revenue Code, pursuant to this section and Section
299 59-10-1010 is an amount equal to the product of:
300 (A) 12.5 cents; and
301 (B) the population of Utah.
302 (ii) For a calendar year beginning on or after January 1, 2017, the aggregate annual tax
303 credit that the Utah Housing Corporation may allocate for the credit period described in
304 Section 42(f), Internal Revenue Code, pursuant to this section and Section 59-10-1010 is an
305 amount equal to the product of:
306 (A) 34.5 cents; and
307 (B) the population of Utah.
308 [(ii)] (iii) For purposes of this section, the population of Utah shall be determined in
309 accordance with Section 146(j), Internal Revenue Code.
310 (3) (a) The Utah Housing Corporation shall determine criteria and procedures for
311 allocating the tax credit under this section and Section 59-10-1010 and incorporate the criteria
312 and procedures into the Utah Housing Corporation's qualified allocation plan.
313 (b) The Utah Housing Corporation shall create the criteria under Subsection (3)(a)
314 based on:
315 (i) the number of affordable housing units to be created in Utah for low and moderate
316 income persons in [the residential housing development of which the building is a part] a
317 qualified development;
318 (ii) the level of area median income being served by [the] a qualified development;
319 (iii) the need for the tax credit for the economic feasibility of [the] a qualified
320 development; and
321 (iv) the extended period for which [the] a qualified development commits to remain as
322 affordable housing.
323 [(4) (a) The following may apply to the Utah Housing Corporation for a tax credit
324under this section:]
325 [(i) any housing sponsor that has received an allocation of the federal low-income
326housing tax credit; or]
327 [(ii) any applicant for an allocation of the federal low-income housing tax credit.]
328 [(b) The Utah Housing Corporation may not require fees for applications of the tax
329credit under this section in addition to those fees required for applications for the federal
330low-income housing tax credit.]
331 (4) Any housing sponsor may apply to the Utah Housing Corporation for a tax credit
332 allocation under this section.
333 (5) (a) The Utah Housing Corporation shall determine the amount of the tax credit to
334 allocate to a [qualifying housing sponsor] qualified development in accordance with the
335 qualified allocation plan of the Utah Housing Corporation.
336 (b) (i) The Utah Housing Corporation [shall allocate the tax credit to housing sponsors
337in the same manner that it allocates federal low-income housing credits and] shall issue an
338 allocation certificate to [qualifying housing sponsors] a housing sponsor as evidence of the
339 allocation.
340 (ii) The allocation certificate under Subsection (5)(b)(i) shall specify [the allowed
341percentage of the federal low-income housing tax credit as determined by the Utah Housing
342Corporation] the amount of the tax credit allocated to a qualified development as determined
343 by the Utah Housing Corporation.
344 (c) The [percentage] amount of the tax credit specified in an allocation certificate may
345 not exceed 100% of the federal low-income housing tax credit awarded to a qualified
346 development.
347 [(6) A housing sponsor shall provide a copy of the allocation certificate to each
348taxpayer that is issued a special low-income housing tax credit certificate.]
349 [(7) (a) A housing sponsor shall provide to the commission a list of:]
350 [(i) the taxpayers issued a special low-income housing tax credit certificate; and]
351 [(ii) for each taxpayer described in Subsection (7)(a)(i), the amount of tax credit listed
352on the special low-income housing tax credit certificate.]
353 [(b) A housing sponsor shall provide the list required by Subsection (7)(a):]
354 [(i) to the commission;]
355 [(ii) on a form provided by the commission; and]
356 [(iii) with the housing sponsor's tax return for each taxable year for which the housing
357sponsor issues a special low-income housing tax credit certificate described in this Subsection
358(7).]
359 (6) Before the Utah Housing Corporation may issue a special low-income housing tax
360 credit certificate, a designated reporter shall provide to the Utah Housing Corporation in a form
361 prescribed by the Utah Housing Corporation:
362 (a) a list of each qualified taxpayer that has been assigned a portion of the tax credit
363 awarded in an allocation certificate;
364 (b) for each qualified taxpayer described in Subsection (6)(a), the amount of tax credit
365 that has been assigned; and
366 (c) an aggregate list of the tax credit amount assigned related to a qualified
367 development demonstrating that the aggregate annual amount of the tax credits assigned does
368 not exceed the aggregate annual tax credit awarded in the allocation certificate.
369 (7) The Utah Housing Corporation shall provide a special low-income housing tax
370 credit certificate to a qualified taxpayer if:
371 (a) a designated reporter has provided the information regarding the qualified taxpayer
372 as described in Subsection (6); and
373 (b) the Utah Housing Corporation has verified that the aggregate tax credit amount
374 assigned with respect to a qualified development does not exceed the total tax credit awarded
375 in the allocation certificate.
376 (8) (a) All elections made by [the taxpayer] a housing sponsor pursuant to Section 42,
377 Internal Revenue Code, shall apply to this section.
378 (b) (i) If a [taxpayer] qualified development is required to recapture a portion of any
379 federal low-income housing tax credit, [the] then each qualified taxpayer shall also be required
380 to recapture a portion of any state tax credits authorized by this section.
381 (ii) The state recapture amount shall be equal to the percentage of the state tax credit
382 that equals the proportion the federal recapture amount bears to the original federal low-income
383 housing tax credit amount subject to recapture.
384 (iii) The designated reporter shall identify each qualified taxpayer that is required to
385 recapture a portion of any state tax credit as described in this Subsection (8)(b).
386 (9) (a) Any tax credits returned to the Utah Housing Corporation in any year may be
387 reallocated within the same time period as provided in Section 42, Internal Revenue Code.
388 (b) Tax credits that are unallocated by the Utah Housing Corporation in any year may
389 be carried over for allocation in subsequent years.
390 [(10) (a) Amounts otherwise qualifying for the tax credit, but not allowable because the
391tax credit exceeds the tax, may be carried back three years or may be carried forward five years
392as a credit against the tax.]
393 (10) (a) If a tax credit is not claimed by a qualified taxpayer in the year in which it is
394 earned because the tax credit is more than the tax owed by the qualified taxpayer, the tax credit
395 may be carried back three years or may be carried forward five years as a credit against the tax.
396 (b) Carryover tax credits under Subsection (10)(a) shall be applied against the tax:
397 (i) before the application of the tax credits earned in the current year; and
398 (ii) on a first-earned first-used basis.
399 (11) Any tax credit taken in this section may be subject to an annual audit by the
400 commission.
401 (12) The Utah Housing Corporation shall annually provide an electronic report to the
402 Revenue and Taxation Interim Committee which shall include at least:
403 (a) the purpose and effectiveness of the tax credits; and
404 (b) the benefits of the tax credits to the state.
405 (13) The commission may, in consultation with the Utah Housing Corporation,
406 [promulgate rules] make rules in accordance with Title 63G, Chapter 3, Utah Administrative
407 Rulemaking Act, to implement this section.
408 Section 9. Section 59-10-1010 is amended to read:
409 59-10-1010. Utah low-income housing tax credit.
410 (1) As used in this section:
411 (a) "Allocation certificate" means a certificate in a form prescribed by the commission
412 and issued by the Utah Housing Corporation to a housing sponsor that specifies the aggregate
413 amount of the tax credit awarded under this section to a qualified development and includes:
414 [(i) the certificate prescribed by the commission and issued by the Utah Housing
415Corporation to each claimant, estate, or trust that specifies the percentage of the annual federal
416low-income housing credit that each claimant, estate, or trust may take as an annual tax credit
417against a tax imposed by this chapter; or]
418 [(ii) a copy of the allocation certificate that the housing sponsor provides to the
419claimant, estate, or trust.]
420 (i) the aggregate annual amount of the tax credit awarded that may be claimed by one
421 or more qualified taxpayers that have been issued a special low-income housing tax credit
422 certificate; and
423 (ii) the credit period over which the tax credit may be claimed by one or more qualified
424 taxpayers that have been issued a special low-income housing tax credit certificate.
425 (b) "Building" means a qualified low-income building as defined in Section 42(c),
426 Internal Revenue Code.
427 (c) "Credit period" means the "credit period" as defined in Section 42(f)(1), Internal
428 Revenue Code.
429 (d) (i) "Designated reporter" means, as selected by a housing sponsor, the housing
430 sponsor itself or one of the housing sponsor's direct or indirect partners, members, or
431 shareholders that will provide information to the Utah Housing Corporation regarding the
432 assignment of tax credits under this section.
433 (ii) Before the Utah Housing Corporation may issue an allocation certificate to a
434 housing sponsor, a housing sponsor shall provide the identity of the housing sponsor's
435 designated reporter to the Utah Housing Corporation.
436 (iii) Before the Utah Housing Corporation may issue a special low-income housing tax
437 credit certificate to a qualified taxpayer, a designated reporter shall provide the information
438 described in Subsection (6) to the Utah Housing Corporation.
439 [(c)] (e) "Federal low-income housing credit" means the federal low-income housing
440 credit [under] described in Section 42, Internal Revenue Code.
441 [(d)] (f) "Housing sponsor" means [a corporation in the case of a C corporation, a
442partnership in the case of a partnership, a corporation in the case of an S corporation, or a
443limited liability company in the case of a limited liability company] an entity that owns a
444 qualified development.
445 [(e)] (g) "Qualified allocation plan" means [the] a qualified allocation plan adopted by
446 the Utah Housing Corporation [pursuant to] in accordance with Section 42(m), Internal
447 Revenue Code.
448 (h) "Qualified development" means a "qualified low-income housing project":
449 (i) as defined in Section 42(g)(1), Internal Revenue Code; and
450 (ii) that is located in the state.
451 (i) (i) "Qualified taxpayer" means a claimant, estate, or trust that:
452 (A) owns a direct or indirect interest in a qualified development; and
453 (B) meets the requirements to claim a tax credit under this section.
454 (ii) If a housing sponsor is a partnership, limited liability company, or S corporation, a
455 "qualified taxpayer" may include any partner, member, or shareholder of the housing sponsor
456 as determined by the governing documents of the housing sponsor.
457 [(f)] (j) (i) "Special low-income housing tax credit certificate" means a certificate:
458 [(i)] (A) in a form prescribed by the commission;
459 [(ii)] (B) that [a housing sponsor] the Utah Housing Corporation issues to a [claimant,
460estate, or trust] qualified taxpayer for a taxable year in accordance with this section; and
461 [(iii)] (C) that specifies the amount of [a] the tax credit a [claimant, estate, or trust]
462 qualified taxpayer may claim under this section [if the claimant, estate, or trust meets the
463requirements of this section].
464 (ii) The Utah Housing Corporation may only issue one or more special low-income
465 housing tax credit certificates if the aggregate specified amount on all special low-income
466 housing tax credit certificates issued in relation to a qualified development does not exceed the
467 aggregate amount of tax credit awarded to a qualified development and issued to a housing
468 sponsor in an allocation certificate.
469 (2) (a) For taxable years beginning on or after January 1, 1995, [there is allowed] a
470 qualified taxpayer who has been issued a special low-income housing tax credit certificate by
471 the Utah Housing Corporation may claim a nonrefundable tax credit against taxes otherwise
472 due under this chapter [for a claimant, estate, or trust issued an allocation certificate].
473 (b) The tax credit shall be in an amount equal to [the greater of the amount of:] the tax
474 credit amount specified on the special low-income housing tax credit certificate that the Utah
475 Housing Corporation issues to a qualified taxpayer under this section.
476 [(i) federal low-income housing credit to which the claimant, estate, or trust is allowed
477during that year multiplied by the percentage specified in an allocation certificate issued by the
478Utah Housing Corporation; or]
479 [(ii) tax credit specified in the special low-income housing tax credit certificate that the
480housing sponsor issues to the claimant, estate, or trust as provided in Subsection (2)(c).]
481 [(c) For purposes of Subsection (2)(b)(ii), the tax credit is equal to the product of:]
482 [(i) the total amount of low-income housing tax credit under this section that:]
483 [(A) a housing sponsor is allowed for a building; and]
484 [(B) all of the claimants, estates, and trusts may claim with respect to the building if
485the claimants, estates, and trusts meet the requirements of this section; and]
486 [(ii) the percentage of tax credit a claimant, estate, or trust may claim:]
487 [(A) under this section if the claimant, estate, or trust meets the requirements of this
488section; and]
489 [(B) as provided in the agreement between the claimant, estate, or trust and the housing
490sponsor.]
491 [(d)] (c) (i) For [the] a calendar year beginning on [January 1, 1995, through the
492calendar year beginning on January 1, 2025] or before December 31, 2016, the aggregate
493 annual tax credit that the Utah Housing Corporation may allocate for the credit period
494 described in Section 42(f), Internal Revenue Code, pursuant to this section and Section
495 59-7-607 is an amount equal to the product of:
496 (A) 12.5 cents; and
497 (B) the population of Utah.
498 (ii) For a calendar year beginning on or after January 1, 2017, the aggregate annual tax
499 credit that the Utah Housing Corporation may allocate for the credit period described in
500 Section 42(f), Internal Revenue Code, pursuant to this section and Section 59-7-607 is an
501 amount equal to the product of:
502 (A) 34.5 cents; and
503 (B) the population of Utah.
504 [(ii)] (iii) For purposes of this section, the population of Utah shall be determined in
505 accordance with Section 146(j), Internal Revenue Code.
506 (3) (a) The Utah Housing Corporation shall determine criteria and procedures for
507 allocating the tax credit under this section and Section 59-7-607 and incorporate the criteria
508 and procedures into the Utah Housing Corporation's qualified allocation plan.
509 (b) The Utah Housing Corporation shall create the criteria under Subsection (3)(a)
510 based on:
511 (i) the number of affordable housing units to be created in Utah for low and moderate
512 income persons in [the residential housing development of which the building is a part] a
513 qualified development;
514 (ii) the level of area median income being served by [the] a qualified development;
515 (iii) the need for the tax credit for the economic feasibility of [the] a qualified
516 development; and
517 (iv) the extended period for which [the] a qualified development commits to remain as
518 affordable housing.
519 [(4) (a) The following may apply to the Utah Housing Corporation for a tax credit
520under this section:]
521 [(i) any housing sponsor that is a claimant, estate, or trust if that housing sponsor has
522received an allocation of the federal low-income housing credit; or]
523 [(ii) any applicant for an allocation of the federal low-income housing credit if that
524applicant is a claimant, estate, or trust.]
525 [(b) The Utah Housing Corporation may not require fees for applications of the tax
526credit under this section in addition to those fees required for applications for the federal
527low-income housing credit.]
528 (4) Any housing sponsor may apply to the Utah Housing Corporation for a tax credit
529 allocation under this section.
530 (5) (a) The Utah Housing Corporation shall determine the amount of the tax credit to
531 allocate to a [qualifying housing sponsor] qualified development in accordance with the
532 qualified allocation plan of the Utah Housing Corporation.
533 (b) (i) The Utah Housing Corporation [shall allocate the tax credit to housing sponsors
534in the same manner that it allocates federal low-income housing credits and] shall issue an
535 allocation certificate to [qualifying housing sponsors] a housing sponsor as evidence of the
536 allocation.
537 (ii) The allocation certificate under Subsection (5)(b)(i) shall specify [the allowed
538percentage of the federal low-income housing credit] the amount of the tax credit allocated to a
539 qualified development as determined by the Utah Housing Corporation.
540 (c) The [percentage] amount of the tax credit specified in an allocation certificate may
541 not exceed 100% of the federal low-income housing credit awarded to a qualified development.
542 [(6) A housing sponsor shall provide a copy of the allocation certificate to each
543claimant, estate, or trust that is issued a special low-income housing tax credit certificate.]
544 [(7) (a) A housing sponsor shall provide to the commission a list of:]
545 [(i) the claimants, estates, and trusts issued a special low-income housing tax credit
546certificate; and]
547 [(ii) for each claimant, estate, or trust described in Subsection (7)(a)(i), the amount of
548tax credit listed on the special low-income housing tax credit certificate.]
549 [(b) A housing sponsor shall provide the list required by Subsection (7)(a):]
550 [(i) to the commission;]
551 [(ii) on a form provided by the commission; and]
552 [(iii) with the housing sponsor's tax return for each taxable year for which the housing
553sponsor issues a special low-income housing tax credit certificate described in this Subsection
554(7).]
555 (6) Before the Utah Housing Corporation may issue a special low-income housing tax
556 credit certificate, a designated reporter shall provide to the Utah Housing Corporation in a form
557 prescribed by the Utah Housing Corporation:
558 (a) a list of each qualified taxpayer that has been assigned a portion of the tax credit
559 awarded in an allocation certificate;
560 (b) for each qualified taxpayer described in Subsection (6)(a), the amount of tax credit
561 that has been assigned; and
562 (c) an aggregate list of the tax credit amount assigned related to a qualified
563 development demonstrating that the aggregate annual amount of the tax credits assigned does
564 not exceed the aggregate annual tax credit awarded in the allocation certificate.
565 (7) The Utah Housing Corporation shall provide a special low-income housing tax
566 credit certificate to a qualified taxpayer if:
567 (a) a designated reporter has provided the information regarding the qualified taxpayer
568 as described in Subsection (6); and
569 (b) the Utah Housing Corporation has verified that the aggregate tax credit amount
570 assigned with respect to a qualified development does not exceed the total tax credit awarded
571 in the allocation certificate.
572 (8) (a) All elections made by [the claimant, estate, or trust] a housing sponsor pursuant
573 to Section 42, Internal Revenue Code, shall apply to this section.
574 (b) (i) If a [claimant, estate, or trust] qualified taxpayer is required to recapture a
575 portion of any federal low-income housing credit, the [claimant, estate, or trust] qualified
576 taxpayer shall also be required to recapture a portion of any state tax credits authorized by this
577 section.
578 (ii) The state recapture amount shall be equal to the percentage of the state tax credit
579 that equals the proportion the federal recapture amount bears to the original federal low-income
580 housing credit amount subject to recapture.
581 (iii) The designated reporter shall identify each qualified taxpayer that is required to
582 recapture a portion of any state tax credits as described in this Subsection (8)(b).
583 (9) (a) Any tax credits returned to the Utah Housing Corporation in any year may be
584 reallocated within the same time period as provided in Section 42, Internal Revenue Code.
585 (b) Tax credits that are unallocated by the Utah Housing Corporation in any year may
586 be carried over for allocation in subsequent years.
587 [(10) (a) Amounts otherwise qualifying for the tax credit, but not allowable because the
588tax credit exceeds the tax, may be carried back three years or may be carried forward five years
589as a tax credit.]
590 (10) (a) If a tax credit is not claimed by a qualified taxpayer in the year in which it is
591 earned because the tax credit is more than the tax owed by the qualified taxpayer, the tax credit
592 may be carried back three years or may be carried forward five years as a credit against the tax.
593 (b) Carryover tax credits under Subsection (10)(a) shall be applied against the tax:
594 (i) before the application of the tax credits earned in the current year; and
595 (ii) on a first-earned first-used basis.
596 (11) Any tax credit taken in this section may be subject to an annual audit by the
597 commission.
598 (12) The Utah Housing Corporation shall annually provide an electronic report to the
599 Revenue and Taxation Interim Committee which shall include at least:
600 (a) the purpose and effectiveness of the tax credits; and
601 (b) the benefits of the tax credits to the state.
602 (13) The commission may, in consultation with the Utah Housing Corporation,
603 promulgate rules to implement this section.
604 Section 10. Appropriation for expendable funds and accounts.
605 The Legislature has reviewed the following expendable funds for the fiscal year
606 beginning July 1, 2017, and ending June 30, 2018. These amounts are additions to amounts
607 otherwise reviewed for fiscal year 2018. The Legislature authorizes the State Division of
608 Finance to transfer amounts among funds and accounts as indicated. Outlays and expenditures
609 from the recipient funds may be made without further legislative action according to a fund's
610 applicable authorizing statute.
611 To Department of Workforce Services -- Economic Revitalization
612 and Investment Fund
613 From General Fund, One-time
614 Schedule of Programs:
615 Economic Revitalization and
616 Investment Fund $2,061,000
617 To Department of Workforce Services -- Olene Walker Housing Loan Fund
618 From General Fund, One-time
619 Schedule of Programs:
620 Olene Walker Housing Loan Fund $500,000
621 The Legislature intends that up to $500,000 of the one-time appropriation to the Olene
622 Walker Housing Loan Fund be used by the Housing and Community Development Division to
623 develop a pilot program for reimbursing persons under certain limited circumstances who
624 provide housing to tenants using Federal Housing Choice Vouchers.
625 Section 11. Retrospective operation.
626 The amendments to Sections 59-7-607 and 59-10-1010 have retrospective operation for
627 a taxable year beginning on or after January 1, 2017.
2
3
4
5
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to housing and community development.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ creates the Economic Revitalization and Investment Fund;
14 ▸ establishes requirements for the distribution of money from the fund;
15 ▸ modifies state low-income housing tax credit provisions; and
16 ▸ makes technical and conforming changes.
17 Money Appropriated in this Bill:
18 This bill appropriates in fiscal year 2018:
19 ▸ to the Department of Workforce Services -- Economic Revitalization and
20 Investment Fund, as a one-time appropriation:
21 • from the General Fund, $2,061,000; and
22 ▸ to the Department of Workforce Services -- Olene Walker Housing Loan Fund, as a
23 one-time appropriation:
24 • from the General Fund, $500,000.
25 Other Special Clauses:
26 This bill provides retrospective operation.
27 Utah Code Sections Affected:
28 AMENDS:
29 35A-8-501, as renumbered and amended by Laws of Utah 2012, Chapter 212
30 35A-8-506, as renumbered and amended by Laws of Utah 2012, Chapter 212
31 59-7-607, as last amended by Laws of Utah 2016, Chapters 135 and 289
32 59-10-1010, as last amended by Laws of Utah 2016, Chapters 135 and 289
33 ENACTS:
34 35A-8-509, Utah Code Annotated 1953
35 35A-8-510, Utah Code Annotated 1953
36 35A-8-511, Utah Code Annotated 1953
37 35A-8-512, Utah Code Annotated 1953
38 35A-8-513, Utah Code Annotated 1953
39
40 Be it enacted by the Legislature of the state of Utah:
41 Section 1. Section 35A-8-501 is amended to read:
42 35A-8-501. Definitions.
43 As used in this part:
44 (1) "Affordable housing" means housing occupied or reserved for occupancy by
45 households whose incomes are at or below certain income requirements at rental rates
46 affordable to such households.
47 [
48 [
49 (4) (a) "Housing sponsor" means a person who constructs, develops, rehabilitates,
50 purchases, or owns a housing development that is or will be subject to legally enforceable
51 restrictive covenants that require the housing development to provide, at least in part,
52 affordable housing.
53 (b) "Housing sponsor" may include:
54 (i) a local public body;
55 (ii) a nonprofit, limited profit, or for profit corporation;
56 (iii) a limited partnership;
57 (iv) a limited liability company;
58 (v) a joint venture;
59 (vi) a subsidiary of the Utah Housing Corporation;
60 (vii) a cooperative;
61 (viii) a mutual housing organization;
62 (ix) a local government;
63 (x) a local housing authority;
64 (xi) a regional or statewide nonprofit housing or assistance organization; or
65 (xii) any other entity that helps provide affordable housing.
66 [
67 Weber.
68 Section 2. Section 35A-8-506 is amended to read:
69 35A-8-506. Authority of the executive director.
70 [
71 money to a housing [
72 [
73
74
75
76 [
77 [
78 [
79 [
80 [
81 [
82 [
83
84 [
85 [
86 [
87 [
88 [
89 [
90
91 Section 3. Section 35A-8-509 is enacted to read:
92 35A-8-509. Economic Revitalization and Investment Fund.
93 (1) There is created an enterprise fund known as the "Economic Revitalization and
94 Investment Fund."
95 (2) The Economic Revitalization and Investment Fund consists of money from the
96 following:
97 (a) money appropriated to the account by the Legislature;
98 (b) private contributions;
99 (c) donations or grants from public or private entities; and
100 (d) money returned to the department under Section 35A-8-512.
101 (3) The Economic Revitalization and Investment Fund shall earn interest, which shall
102 be deposited into the Economic Revitalization and Investment Fund.
103 (4) The executive director may distribute money from the Economic Revitalization and
104 Investment Fund to one or more projects that:
105 (a) include affordable housing units for households:
106 (i) whose income is no more than 30% of the area median income for households of
107 the same size in the county or municipality where the project is located; and
108 (ii) at rental rates no greater than the rates described in Subsection 35A-8-511(2)(b);
109 and
110 (b) have been approved by the board in accordance with Section 35A-8-510.
111 (5) (a) A housing sponsor may apply to the department to receive a distribution in
112 accordance with Subsection (4).
113 (b) The application shall include:
114 (i) the location of the project;
115 (ii) the number, size, and tenant income requirements of affordable housing units
116 described in Subsection (4)(a) that will be included in the project; and
117 (iii) a written commitment to enter into a deed restriction that reserves for a period of
118 30 years the affordable housing units described in Subsection (5)(b)(ii) or their equivalent for
119 occupancy by households that meet the income requirements described in Subsection (5)(b)(ii).
120 (c) The commitment in Subsection (5)(b)(iii) shall be considered met if a housing unit
121 is:
122 (i) (A) occupied or reserved for occupancy by a household whose income is no more
123 than 30% of the area median income for households of the same size in the county or
124 municipality where the project is located; or
125 (B) occupied by a household whose income is no more than 60% of the area median
126 income for households of the same size in the county or municipality where the project is
127 located if that household met the income requirement described in Subsection (4)(a) when the
128 household originally entered into the lease agreement for the housing unit; and
129 (ii) rented at a rate no greater than the rate described in Subsection 35A-8-511(2)(b).
130 (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
131 department may make additional rules providing procedures for a person to apply to the
132 department to receive a distribution described in Subsection (4).
133 Section 4. Section 35A-8-510 is enacted to read:
134 35A-8-510. Housing loan fund board approval.
135 (1) The board shall review the project applications described in Subsection
136 35A-8-509(5).
137 (2) The board may approve a project that meets the requirements of Subsections
138 35A-8-509(4) and (5) to receive funds from the Economic Revitalization and Investment Fund.
139 (3) The board shall give preference to projects:
140 (a) that include significant additional or matching funds from an individual, private
141 organization, or local government entity;
142 (b) that include significant contributions by the applicant to total project costs,
143 including contributions secured by the applicant from other sources such as professional, craft,
144 and trade services and lender interest rate subsidies;
145 (c) with significant local government contributions in the form of infrastructure,
146 improvements, or other assistance;
147 (d) where the applicant has demonstrated the ability, stability, and resources to
148 complete the project;
149 (e) that will serve the greatest need;
150 (f) that promote economic development benefits;
151 (g) that allow integration into a local government housing plan;
152 (h) that would mitigate or correct existing health, safety, or welfare concerns; or
153 (i) that remedy a gap in the supply of and demand for affordable housing.
154 Section 5. Section 35A-8-511 is enacted to read:
155 35A-8-511. Activities authorized to receive account money.
156 (1) The executive director may distribute funds from the Economic Revitalization and
157 Investment Fund for any of the following activities undertaken as part of an approved project:
158 (a) the acquisition, rehabilitation, or new construction of a building that includes
159 affordable housing units;
160 (b) the purchase of land for the construction of a building that will include affordable
161 housing units; or
162 (c) pre-development work, including planning, studies, design, and site work for a
163 building that will include affordable housing units.
164 (2) The maximum amount of money that may be distributed from the Economic
165 Revitalization and Investment Fund for each affordable housing unit that has been committed
166 in accordance with Subsection 35A-8-509(5)(b)(iii) is the present value, based on the current
167 market interest rate as determined by the board for a multi-family mortgage loan in the county
168 or metropolitan area where the project is located, of 360 monthly payments equal to the
169 difference between:
170 (a) the most recent United States Department of Housing and Urban Development fair
171 market rent for a unit of the same size in the county or metropolitan area where the project is
172 located; and
173 (b) an affordable rent equal to 30% of the income requirement described in Subsection
174 35A-8-509(5)(b)(ii) for a household of:
175 (i) one person if the unit is an efficiency unit;
176 (ii) two people if the unit is a one-bedroom unit;
177 (iii) four people if the unit is a two-bedroom unit;
178 (iv) five people if the unit is a three-bedroom unit;
179 (v) six people if the unit is a four-bedroom unit; or
180 (vi) eight people if the unit is a five-bedroom or larger unit.
181 Section 6. Section 35A-8-512 is enacted to read:
182 35A-8-512. Repayment of funds.
183 (1) Upon the earlier of 30 years from the date an approved project is placed in service
184 or the sale or transfer of the affordable housing units acquired, constructed, or rehabilitated as
185 part of an approved project funded under Section 35A-8-511, the housing sponsor shall remit
186 to the department:
187 (a) the total amount of money distributed by the department to the housing sponsor for
188 the project; and
189 (b) an additional amount of money determined by contract with the department prior to
190 the initial disbursement of money from the Economic Revitalization and Investment Fund.
191 (2) Any claim arising under Subsection (1) is a lien against the real property funded
192 under this chapter.
193 (3) Any money returned to the department under Subsection (1) shall be deposited in
194 the Economic Revitalization and Investment Fund.
195 Section 7. Section 35A-8-513 is enacted to read:
196 35A-8-513. Annual accounting.
197 (1) The executive director shall monitor the activities of recipients of funds from the
198 Economic Revitalization and Investment Fund on a yearly basis to ensure compliance with the
199 terms and conditions imposed on the recipient by the executive director with the approval of
200 the board.
201 (2) A housing sponsor that receives funds from the Economic Revitalization and
202 Investment Fund shall provide the executive director with an annual accounting of how the
203 money the entity received from the Economic Revitalization and Investment Fund has been
204 spent and evidence that the commitment described in Subsection 35A-8-509(5) has been met.
205 (3) The executive director shall make an annual report to the board accounting for the
206 expenditures authorized by the board.
207 (4) The board shall submit a report to the department for inclusion in the annual
208 written report described in Section 35A-1-109 that includes:
209 (a) an accounting for expenditures authorized by the board; and
210 (b) an evaluation of the effectiveness of the program.
211 Section 8. Section 59-7-607 is amended to read:
212 59-7-607. Utah low-income housing tax credit.
213 (1) As used in this section:
214 (a) "Allocation certificate" means a certificate in a form prescribed by the commission
215 and issued by the Utah Housing Corporation to a housing sponsor that specifies the aggregate
216 amount of the tax credit awarded under this section to a qualified development and includes:
217 [
218
219
220 [
221
222 (i) the aggregate annual amount of the tax credit awarded that may be claimed by one
223 or more qualified taxpayers that have been issued a special low-income housing tax credit
224 certificate; and
225 (ii) the credit period over which the tax credit may be claimed by one or more qualified
226 taxpayers that have been issued a special low-income housing tax credit certificate.
227 (b) "Building" means a qualified low-income building as defined in Section 42(c),
228 Internal Revenue Code.
229 (c) "Credit period" means the "credit period" as defined in Section 42(f)(1), Internal
230 Revenue Code.
231 (d) (i) "Designated reporter" means, as selected by a housing sponsor, the housing
232 sponsor itself or one of the housing sponsor's direct or indirect partners, members, or
233 shareholders that will provide information to the Utah Housing Corporation regarding the
234 assignment of tax credits under this section.
235 (ii) Before the Utah Housing Corporation may issue an allocation certificate to a
236 housing sponsor, a housing sponsor shall provide the identity of the housing sponsor's
237 designated reporter to the Utah Housing Corporation.
238 (iii) Before the Utah Housing Corporation may issue a special low-income housing tax
239 credit certificate to a qualified taxpayer, a designated reporter shall provide the information
240 described in Subsection (6) to the Utah Housing Corporation.
241 [
242 described in Section 42, Internal Revenue Code.
243 [
244
245
246 qualified development.
247 [
248 the Utah Housing Corporation [
249 Revenue Code.
250 (h) "Qualified development" means a "qualified low-income housing project":
251 (i) as defined in Section 42(g)(1), Internal Revenue Code; and
252 (ii) that is located in the state.
253 (i) (i) "Qualified taxpayer" means a person that:
254 (A) owns a direct or indirect interest in a qualified development; and
255 (B) meets the requirements to claim a tax credit under this section.
256 (ii) If a housing sponsor is a partnership, limited liability company, or S corporation, a
257 "qualified taxpayer" may include any partner, member, or shareholder of the housing sponsor
258 as determined by the governing documents of the housing sponsor.
259 [
260 [
261 [
262 taxpayer for a taxable year in accordance with this section; and
263 [
264 under this section [
265 (ii) The Utah Housing Corporation may only issue one or more special low-income
266 housing tax credit certificates if the aggregate specified amount on all special low-income
267 housing tax credit certificates issued in relation to a qualified development does not exceed the
268 aggregate amount of tax credit awarded to the qualified development and issued to a housing
269 sponsor in an allocation certificate.
270 [
271
272
273
274 (2) (a) For taxable years beginning on or after January 1, 1995, [
275 qualified taxpayer who has been issued a special low-income housing tax credit certificate by
276 the Utah Housing Corporation may claim a nonrefundable tax credit against taxes otherwise
277 due under this chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required
278 to Pay Corporate Franchise or Income Tax[
279 (b) The tax credit shall be in an amount equal to [
280 credit amount specified on the special low-income housing tax credit certificate that the Utah
281 Housing Corporation issues to a qualified taxpayer under this section.
282 [
283
284
285 [
286
287 [
288 [
289 [
290 [
291
292 [
293 [
294 [
295 [
296
297 annual tax credit that the Utah Housing Corporation may allocate for the credit period
298 described in Section 42(f), Internal Revenue Code, pursuant to this section and Section
299 59-10-1010 is an amount equal to the product of:
300 (A) 12.5 cents; and
301 (B) the population of Utah.
302 (ii) For a calendar year beginning on or after January 1, 2017, the aggregate annual tax
303 credit that the Utah Housing Corporation may allocate for the credit period described in
304 Section 42(f), Internal Revenue Code, pursuant to this section and Section 59-10-1010 is an
305 amount equal to the product of:
306 (A) 34.5 cents; and
307 (B) the population of Utah.
308 [
309 accordance with Section 146(j), Internal Revenue Code.
310 (3) (a) The Utah Housing Corporation shall determine criteria and procedures for
311 allocating the tax credit under this section and Section 59-10-1010 and incorporate the criteria
312 and procedures into the Utah Housing Corporation's qualified allocation plan.
313 (b) The Utah Housing Corporation shall create the criteria under Subsection (3)(a)
314 based on:
315 (i) the number of affordable housing units to be created in Utah for low and moderate
316 income persons in [
317 qualified development;
318 (ii) the level of area median income being served by [
319 (iii) the need for the tax credit for the economic feasibility of [
320 development; and
321 (iv) the extended period for which [
322 affordable housing.
323 [
324
325 [
326
327 [
328 [
329
330
331 (4) Any housing sponsor may apply to the Utah Housing Corporation for a tax credit
332 allocation under this section.
333 (5) (a) The Utah Housing Corporation shall determine the amount of the tax credit to
334 allocate to a [
335 qualified allocation plan of the Utah Housing Corporation.
336 (b) (i) The Utah Housing Corporation [
337
338 allocation certificate to [
339 allocation.
340 (ii) The allocation certificate under Subsection (5)(b)(i) shall specify [
341
342
343 by the Utah Housing Corporation.
344 (c) The [
345 not exceed 100% of the federal low-income housing tax credit awarded to a qualified
346 development.
347 [
348
349 [
350 [
351 [
352
353 [
354 [
355 [
356 [
357
358
359 (6) Before the Utah Housing Corporation may issue a special low-income housing tax
360 credit certificate, a designated reporter shall provide to the Utah Housing Corporation in a form
361 prescribed by the Utah Housing Corporation:
362 (a) a list of each qualified taxpayer that has been assigned a portion of the tax credit
363 awarded in an allocation certificate;
364 (b) for each qualified taxpayer described in Subsection (6)(a), the amount of tax credit
365 that has been assigned; and
366 (c) an aggregate list of the tax credit amount assigned related to a qualified
367 development demonstrating that the aggregate annual amount of the tax credits assigned does
368 not exceed the aggregate annual tax credit awarded in the allocation certificate.
369 (7) The Utah Housing Corporation shall provide a special low-income housing tax
370 credit certificate to a qualified taxpayer if:
371 (a) a designated reporter has provided the information regarding the qualified taxpayer
372 as described in Subsection (6); and
373 (b) the Utah Housing Corporation has verified that the aggregate tax credit amount
374 assigned with respect to a qualified development does not exceed the total tax credit awarded
375 in the allocation certificate.
376 (8) (a) All elections made by [
377 Internal Revenue Code, shall apply to this section.
378 (b) (i) If a [
379 federal low-income housing tax credit, [
380 to recapture a portion of any state tax credits authorized by this section.
381 (ii) The state recapture amount shall be equal to the percentage of the state tax credit
382 that equals the proportion the federal recapture amount bears to the original federal low-income
383 housing tax credit amount subject to recapture.
384 (iii) The designated reporter shall identify each qualified taxpayer that is required to
385 recapture a portion of any state tax credit as described in this Subsection (8)(b).
386 (9) (a) Any tax credits returned to the Utah Housing Corporation in any year may be
387 reallocated within the same time period as provided in Section 42, Internal Revenue Code.
388 (b) Tax credits that are unallocated by the Utah Housing Corporation in any year may
389 be carried over for allocation in subsequent years.
390 [
391
392
393 (10) (a) If a tax credit is not claimed by a qualified taxpayer in the year in which it is
394 earned because the tax credit is more than the tax owed by the qualified taxpayer, the tax credit
395 may be carried back three years or may be carried forward five years as a credit against the tax.
396 (b) Carryover tax credits under Subsection (10)(a) shall be applied against the tax:
397 (i) before the application of the tax credits earned in the current year; and
398 (ii) on a first-earned first-used basis.
399 (11) Any tax credit taken in this section may be subject to an annual audit by the
400 commission.
401 (12) The Utah Housing Corporation shall annually provide an electronic report to the
402 Revenue and Taxation Interim Committee which shall include at least:
403 (a) the purpose and effectiveness of the tax credits; and
404 (b) the benefits of the tax credits to the state.
405 (13) The commission may, in consultation with the Utah Housing Corporation,
406 [
407 Rulemaking Act, to implement this section.
408 Section 9. Section 59-10-1010 is amended to read:
409 59-10-1010. Utah low-income housing tax credit.
410 (1) As used in this section:
411 (a) "Allocation certificate" means a certificate in a form prescribed by the commission
412 and issued by the Utah Housing Corporation to a housing sponsor that specifies the aggregate
413 amount of the tax credit awarded under this section to a qualified development and includes:
414 [
415
416
417
418 [
419
420 (i) the aggregate annual amount of the tax credit awarded that may be claimed by one
421 or more qualified taxpayers that have been issued a special low-income housing tax credit
422 certificate; and
423 (ii) the credit period over which the tax credit may be claimed by one or more qualified
424 taxpayers that have been issued a special low-income housing tax credit certificate.
425 (b) "Building" means a qualified low-income building as defined in Section 42(c),
426 Internal Revenue Code.
427 (c) "Credit period" means the "credit period" as defined in Section 42(f)(1), Internal
428 Revenue Code.
429 (d) (i) "Designated reporter" means, as selected by a housing sponsor, the housing
430 sponsor itself or one of the housing sponsor's direct or indirect partners, members, or
431 shareholders that will provide information to the Utah Housing Corporation regarding the
432 assignment of tax credits under this section.
433 (ii) Before the Utah Housing Corporation may issue an allocation certificate to a
434 housing sponsor, a housing sponsor shall provide the identity of the housing sponsor's
435 designated reporter to the Utah Housing Corporation.
436 (iii) Before the Utah Housing Corporation may issue a special low-income housing tax
437 credit certificate to a qualified taxpayer, a designated reporter shall provide the information
438 described in Subsection (6) to the Utah Housing Corporation.
439 [
440 credit [
441 [
442
443
444 qualified development.
445 [
446 the Utah Housing Corporation [
447 Revenue Code.
448 (h) "Qualified development" means a "qualified low-income housing project":
449 (i) as defined in Section 42(g)(1), Internal Revenue Code; and
450 (ii) that is located in the state.
451 (i) (i) "Qualified taxpayer" means a claimant, estate, or trust that:
452 (A) owns a direct or indirect interest in a qualified development; and
453 (B) meets the requirements to claim a tax credit under this section.
454 (ii) If a housing sponsor is a partnership, limited liability company, or S corporation, a
455 "qualified taxpayer" may include any partner, member, or shareholder of the housing sponsor
456 as determined by the governing documents of the housing sponsor.
457 [
458 [
459 [
460
461 [
462 qualified taxpayer may claim under this section [
463
464 (ii) The Utah Housing Corporation may only issue one or more special low-income
465 housing tax credit certificates if the aggregate specified amount on all special low-income
466 housing tax credit certificates issued in relation to a qualified development does not exceed the
467 aggregate amount of tax credit awarded to a qualified development and issued to a housing
468 sponsor in an allocation certificate.
469 (2) (a) For taxable years beginning on or after January 1, 1995, [
470 qualified taxpayer who has been issued a special low-income housing tax credit certificate by
471 the Utah Housing Corporation may claim a nonrefundable tax credit against taxes otherwise
472 due under this chapter [
473 (b) The tax credit shall be in an amount equal to [
474 credit amount specified on the special low-income housing tax credit certificate that the Utah
475 Housing Corporation issues to a qualified taxpayer under this section.
476 [
477
478
479 [
480
481 [
482 [
483 [
484 [
485
486 [
487 [
488
489 [
490
491 [
492
493 annual tax credit that the Utah Housing Corporation may allocate for the credit period
494 described in Section 42(f), Internal Revenue Code, pursuant to this section and Section
495 59-7-607 is an amount equal to the product of:
496 (A) 12.5 cents; and
497 (B) the population of Utah.
498 (ii) For a calendar year beginning on or after January 1, 2017, the aggregate annual tax
499 credit that the Utah Housing Corporation may allocate for the credit period described in
500 Section 42(f), Internal Revenue Code, pursuant to this section and Section 59-7-607 is an
501 amount equal to the product of:
502 (A) 34.5 cents; and
503 (B) the population of Utah.
504 [
505 accordance with Section 146(j), Internal Revenue Code.
506 (3) (a) The Utah Housing Corporation shall determine criteria and procedures for
507 allocating the tax credit under this section and Section 59-7-607 and incorporate the criteria
508 and procedures into the Utah Housing Corporation's qualified allocation plan.
509 (b) The Utah Housing Corporation shall create the criteria under Subsection (3)(a)
510 based on:
511 (i) the number of affordable housing units to be created in Utah for low and moderate
512 income persons in [
513 qualified development;
514 (ii) the level of area median income being served by [
515 (iii) the need for the tax credit for the economic feasibility of [
516 development; and
517 (iv) the extended period for which [
518 affordable housing.
519 [
520
521 [
522
523 [
524
525 [
526
527
528 (4) Any housing sponsor may apply to the Utah Housing Corporation for a tax credit
529 allocation under this section.
530 (5) (a) The Utah Housing Corporation shall determine the amount of the tax credit to
531 allocate to a [
532 qualified allocation plan of the Utah Housing Corporation.
533 (b) (i) The Utah Housing Corporation [
534
535 allocation certificate to [
536 allocation.
537 (ii) The allocation certificate under Subsection (5)(b)(i) shall specify [
538
539 qualified development as determined by the Utah Housing Corporation.
540 (c) The [
541 not exceed 100% of the federal low-income housing credit awarded to a qualified development.
542 [
543
544 [
545 [
546
547 [
548
549 [
550 [
551 [
552 [
553
554
555 (6) Before the Utah Housing Corporation may issue a special low-income housing tax
556 credit certificate, a designated reporter shall provide to the Utah Housing Corporation in a form
557 prescribed by the Utah Housing Corporation:
558 (a) a list of each qualified taxpayer that has been assigned a portion of the tax credit
559 awarded in an allocation certificate;
560 (b) for each qualified taxpayer described in Subsection (6)(a), the amount of tax credit
561 that has been assigned; and
562 (c) an aggregate list of the tax credit amount assigned related to a qualified
563 development demonstrating that the aggregate annual amount of the tax credits assigned does
564 not exceed the aggregate annual tax credit awarded in the allocation certificate.
565 (7) The Utah Housing Corporation shall provide a special low-income housing tax
566 credit certificate to a qualified taxpayer if:
567 (a) a designated reporter has provided the information regarding the qualified taxpayer
568 as described in Subsection (6); and
569 (b) the Utah Housing Corporation has verified that the aggregate tax credit amount
570 assigned with respect to a qualified development does not exceed the total tax credit awarded
571 in the allocation certificate.
572 (8) (a) All elections made by [
573 to Section 42, Internal Revenue Code, shall apply to this section.
574 (b) (i) If a [
575 portion of any federal low-income housing credit, the [
576 taxpayer shall also be required to recapture a portion of any state tax credits authorized by this
577 section.
578 (ii) The state recapture amount shall be equal to the percentage of the state tax credit
579 that equals the proportion the federal recapture amount bears to the original federal low-income
580 housing credit amount subject to recapture.
581 (iii) The designated reporter shall identify each qualified taxpayer that is required to
582 recapture a portion of any state tax credits as described in this Subsection (8)(b).
583 (9) (a) Any tax credits returned to the Utah Housing Corporation in any year may be
584 reallocated within the same time period as provided in Section 42, Internal Revenue Code.
585 (b) Tax credits that are unallocated by the Utah Housing Corporation in any year may
586 be carried over for allocation in subsequent years.
587 [
588
589
590 (10) (a) If a tax credit is not claimed by a qualified taxpayer in the year in which it is
591 earned because the tax credit is more than the tax owed by the qualified taxpayer, the tax credit
592 may be carried back three years or may be carried forward five years as a credit against the tax.
593 (b) Carryover tax credits under Subsection (10)(a) shall be applied against the tax:
594 (i) before the application of the tax credits earned in the current year; and
595 (ii) on a first-earned first-used basis.
596 (11) Any tax credit taken in this section may be subject to an annual audit by the
597 commission.
598 (12) The Utah Housing Corporation shall annually provide an electronic report to the
599 Revenue and Taxation Interim Committee which shall include at least:
600 (a) the purpose and effectiveness of the tax credits; and
601 (b) the benefits of the tax credits to the state.
602 (13) The commission may, in consultation with the Utah Housing Corporation,
603 promulgate rules to implement this section.
604 Section 10. Appropriation for expendable funds and accounts.
605 The Legislature has reviewed the following expendable funds for the fiscal year
606 beginning July 1, 2017, and ending June 30, 2018. These amounts are additions to amounts
607 otherwise reviewed for fiscal year 2018. The Legislature authorizes the State Division of
608 Finance to transfer amounts among funds and accounts as indicated. Outlays and expenditures
609 from the recipient funds may be made without further legislative action according to a fund's
610 applicable authorizing statute.
611 To Department of Workforce Services -- Economic Revitalization
612 and Investment Fund
613 From General Fund, One-time
$2,061,000
614 Schedule of Programs:
615 Economic Revitalization and
616 Investment Fund $2,061,000
617 To Department of Workforce Services -- Olene Walker Housing Loan Fund
618 From General Fund, One-time
$500,000
619 Schedule of Programs:
620 Olene Walker Housing Loan Fund $500,000
621 The Legislature intends that up to $500,000 of the one-time appropriation to the Olene
622 Walker Housing Loan Fund be used by the Housing and Community Development Division to
623 develop a pilot program for reimbursing persons under certain limited circumstances who
624 provide housing to tenants using Federal Housing Choice Vouchers.
625 Section 11. Retrospective operation.
626 The amendments to Sections 59-7-607 and 59-10-1010 have retrospective operation for
627 a taxable year beginning on or after January 1, 2017.
Bill Status / Votes
• Senate Actions • House Actions • Fiscal Actions • Other Actions
| Date | Action | Location | Vote |
| 12/13/2016 | Bill Numbered but not Distributed | Legislative Research and General Counsel | |
| 12/13/2016 | Numbered Bill Publicly Distributed | Legislative Research and General Counsel | |
| 1/5/2017 | House/ received bill from Legislative Research | Clerk of the House | |
| 1/23/2017 | House/ 1st reading (Introduced) | House Rules Committee | |
| 1/23/2017 | House/ to standing committee | House Economic Development and Workforce Services Committee | |
| 1/23/2017 | House/ received fiscal note from Fiscal Analyst | House Economic Development and Workforce Services Committee | |
| 1/24/2017 | House Comm - Substitute Recommendation from # 0 to # 1 | House Economic Development and Workforce Services Committee | 7 0 3 |
| 1/24/2017 | House Comm - Favorable Recommendation | House Economic Development and Workforce Services Committee | 7 0 3 |
| 1/25/2017 (11:14:25 AM) | House/ comm rpt/ substituted | House Economic Development and Workforce Services Committee | |
| 1/25/2017 (11:14:26 AM) | House/ 2nd reading | House 3rd Reading Calendar for House bills | |
| 1/26/2017 (11:17:43 AM) | House/ 3rd reading | House 3rd Reading Calendar for House bills | |
| 1/26/2017 (11:40:43 AM) | House/ passed 3rd reading | Senate Secretary | 50 22 3 |
| 1/26/2017 (11:40:45 AM) | House/ to Senate | Senate Secretary | |
| 1/27/2017 | Senate/ received from House | Waiting for Introduction in the Senate | |
| 1/27/2017 | Senate/ 1st reading (Introduced) | Senate Rules Committee | |
| 1/31/2017 | Senate/ to standing committee | Senate Economic Development and Workforce Services Committee | |
| 1/31/2017 | Senate Comm - Favorable Recommendation | Senate Economic Development and Workforce Services Committee | 4 0 3 |
| 2/1/2017 (11:07:38 AM) | Senate/ committee report favorable | Senate Economic Development and Workforce Services Committee | |
| 2/1/2017 (11:07:39 AM) | Senate/ placed on 2nd Reading Calendar | Senate 2nd Reading Calendar | |
| 2/1/2017 (11:27:01 AM) | Senate/ 2nd reading | Senate 2nd Reading Calendar | |
| 2/1/2017 (11:40:00 AM) | Senate/ passed 2nd reading | Senate 3rd Reading Calendar | 26 3 0 |
| 2/1/2017 (11:40:12 AM) | Senate/ 3rd reading | Senate 3rd Reading Calendar | |
| 2/1/2017 (11:40:25 AM) | Senate/ placed on 3rd Reading Calendar table | Senate 3rd Reading Calendar Table | |
| 3/7/2017 | Senate/ lifted from table | Senate 3rd Reading Calendar Table | |
| 3/7/2017 | Senate/ placed back on 3rd Reading Calendar | Senate 3rd Reading Calendar | |
| 3/8/2017 (10:04:58 AM) | Senate/ circled | Senate 3rd Reading Calendar | Voice vote |
| 3/8/2017 (12:01:08 PM) | Senate/ uncircled | Senate 3rd Reading Calendar | Voice vote |
| 3/8/2017 (12:01:40 PM) | Senate/ floor amendment # 1 | Senate 3rd Reading Calendar | Voice vote |
| 3/8/2017 (12:04:10 PM) | Senate/ passed 3rd reading | Clerk of the House | 25 2 2 |
| 3/8/2017 (12:04:11 PM) | Senate/ to House with amendments | Clerk of the House | |
| 3/8/2017 (2:32:55 PM) | House/ received from Senate | Clerk of the House | |
| 3/8/2017 (2:32:56 PM) | House/ placed on Concurrence Calendar | House Concurrence Calendar | |
| 3/9/2017 (9:36:11 AM) | House/ refuse to concur with Senate amendment | Senate Secretary | Voice vote |
| 3/9/2017 (9:36:12 AM) | House/ to Senate | Senate Secretary | |
| 3/9/2017 (10:04:30 AM) | Senate/ refused to recede from Senate amendments | Senate Secretary | Voice vote |
| 3/9/2017 | Senate Conference Committee Appointed Meeting Information | Conference Committee | |
| 3/9/2017 | Senate/ to House | Conference Committee | |
| 3/9/2017 | House/ received from Senate | Conference Committee | |
| 3/9/2017 | House Conference Committee Appointed Meeting Information | Conference Committee | |
| 3/9/2017 | House/ to Senate | Conference Committee | |
| 3/9/2017 | Bill Substituted by Conference Committee from # 1 to # 2 | Conference Committee | |
| 3/9/2017 | Conference Committee Report | Conference Committee | 5 0 1 |
| 3/9/2017 | LFA/ fiscal note sent to sponsor | Conference Committee | |
| 3/9/2017 | LFA/ fiscal note publicly available | Conference Committee | |
| 3/9/2017 (2:31:16 PM) | Senate/ received from House | Conference Committee | |
| 3/9/2017 (2:31:17 PM) | Senate Motion to Adopt Joint Conference Comm Rpt | Conference Committee | Voice vote |
| 3/9/2017 (2:32:59 PM) | Senate Conference Committee - Final Passage | Conference Committee | 25 1 3 |
| 3/9/2017 (2:32:59 PM) | Senate/ to House | Conference Committee | |
| 3/9/2017 (2:49:12 PM) | House/ received from Senate | Conference Committee | |
| 3/9/2017 (2:49:13 PM) | House Motion to Adopt Joint Conference Comm Rpt | Conference Committee | Voice vote |
| 3/9/2017 (2:51:52 PM) | House Conference Committee - Final Passage | Senate President | 62 9 4 |
| 3/9/2017 (2:51:53 PM) | House/ to Senate | Senate President | |
| 3/9/2017 | Senate/ received from House | Senate President | |
| 3/9/2017 | Senate/ signed by President/ returned to House | House Speaker | |
| 3/9/2017 | Senate/ to House | House Speaker | |
| 3/9/2017 | House/ received from Senate | House Speaker | |
| 3/9/2017 | House/ signed by Speaker/ sent for enrolling | Legislative Research and General Counsel / Enrolling | |
| 3/10/2017 | Bill Received from House for Enrolling | Legislative Research and General Counsel / Enrolling | |
| 3/10/2017 | Draft of Enrolled Bill Prepared | Legislative Research and General Counsel / Enrolling | |
| 3/17/2017 | Enrolled Bill Returned to House or Senate | Clerk of the House | |
| 3/17/2017 | House/ enrolled bill to Printing | Clerk of the House | |
| 3/17/2017 | House/ to Governor | Executive Branch - Governor | |
| 3/23/2017 | Governor Signed | Lieutenant Governor's office for filing |
Committee Hearings/Floor Debate
- Committee Hearings
- Floor Debates
- House Floor Audio, Day 4 (1/26/2017) [HB36S1]
- Senate Floor Audio, Day 10 (2/1/2017) [1S HB 36 Affordable Housing Amendments, Weiler]
- Senate Floor Audio, Day 44 (3/8/2017) [1 HB 36 Affordable Housing Amendments, Weiler]
- Senate Floor Audio, Day 44 (3/8/2017) [1 HB 36 Affordable Housing Amendments, Weiler]
- Senate Floor Audio, Day 45 (3/9/2017) [HB 36 Affordable Housing Amendments, Weiler]
- Senate Floor Audio, Day 45 (3/9/2017) [2 HB 36 Affordable Housing Amendments, Weiler]