Senator Todd Weiler proposes the following substitute bill:




Chief Sponsor: Steve Eliason

Senate Sponsor: Todd Weiler

6     Cosponsors:
7     Joel K. Briscoe
8     Walt Brooks
9     Rebecca Chavez-Houck
10     Susan Duckworth
11     Rebecca P. Edwards
12     Gage Froerer
13     Francis D. Gibson
14     Sandra Hollins
Gregory H. Hughes
Eric K. Hutchings
Brian S. King
Karen Kwan
Bradley G. Last
Michael E. Noel
Jeremy A. Peterson
Dixon M. Pitcher
Angela Romero
Douglas V. Sagers
Mike Schultz
V. Lowry Snow
Robert M. Spendlove
Elizabeth Weight
John R. Westwood
Mark A. Wheatley

17     General Description:
18          This bill amends provisions related to the Housing and Community Development
19     Division.
20     Highlighted Provisions:
21          This bill:
22          ▸     defines terms;
23          ▸     amends provisions related to how money in the Olene Walker Housing Loan Fund
24     may be used;

25          ▸     amends provisions related to how money in the Homeless to Housing Reform
26     Restricted Account may be used;
27          ▸     amends reporting requirements of the Housing and Community Development
28     Division; and
29          ▸     makes technical changes.
30     Money Appropriated in this Bill:
31          This bill appropriates in fiscal year 2019:
32          ▸     to the General Fund Restricted -- Homeless to Housing Reform Restricted Account,
33     as an ongoing appropriation:
34               •     from the General Fund, $6,600,000;
35          ▸     to the Department of Workforce Services -- Housing and Community Development,
36     as an ongoing appropriation:
37               •     from the General Fund Restricted -- Homeless to Housing Reform Restricted
38     Account, $6,600,000.
39     Other Special Clauses:
40          None
41     Utah Code Sections Affected:
42     AMENDS:
43          35A-8-505, as last amended by Laws of Utah 2016, Chapter 131
44          35A-8-601, as last amended by Laws of Utah 2016, Chapter 278
45          35A-8-604, as last amended by Laws of Utah 2017, Chapter 21
46          35A-8-605, as enacted by Laws of Utah 2016, Chapter 278
47     ENACTS:
48          35A-8-805, Utah Code Annotated 1953

50     Be it enacted by the Legislature of the state of Utah:
51          Section 1. Section 35A-8-505 is amended to read:
52          35A-8-505. Activities authorized to receive fund money -- Powers of the executive
53     director.
54          At the direction of the board, the executive director may:
55          (1) provide fund money to any of the following activities:

56          (a) the acquisition, rehabilitation, or new construction of low-income housing units;
57          (b) matching funds for social services projects directly related to providing housing for
58     special-need renters in assisted projects;
59          (c) the development and construction of accessible housing designed for low-income
60     persons;
61          (d) the construction or improvement of a shelter or transitional housing facility that
62     provides services intended to prevent or minimize homelessness among members of a specific
63     homeless subpopulation; [and]
64          (e) the purchase of an existing facility to provide temporary or transitional housing for
65     the homeless in an area that does not require rezoning before providing such temporary or
66     transitional housing; and
67          [(e)] (f) other activities that will assist in minimizing homelessness or improving the
68     availability or quality of housing in the state for low-income persons;
69          (2) do any act necessary or convenient to the exercise of the powers granted by this part
70     or reasonably implied from those granted powers, including:
71          (a) making or executing contracts and other instruments necessary or convenient for
72     the performance of the executive director and board's duties and the exercise of the executive
73     director and board's powers and functions under this part, including contracts or agreements for
74     the servicing and originating of mortgage loans;
75          (b) procuring insurance against a loss in connection with property or other assets held
76     by the fund, including mortgage loans, in amounts and from insurers it considers desirable;
77          (c) entering into agreements with a department, agency, or instrumentality of the
78     United States or this state and with mortgagors and mortgage lenders for the purpose of
79     planning and regulating and providing for the financing and refinancing, purchase,
80     construction, reconstruction, rehabilitation, leasing, management, maintenance, operation, sale,
81     or other disposition of residential housing undertaken with the assistance of the department
82     under this part;
83          (d) proceeding with a foreclosure action, to own, lease, clear, reconstruct, rehabilitate,
84     repair, maintain, manage, operate, assign, encumber, sell, or otherwise dispose of real or
85     personal property obtained by the fund due to the default on a mortgage loan held by the fund
86     in preparation for disposition of the property, taking assignments of leases and rentals,

87     proceeding with foreclosure actions, and taking other actions necessary or incidental to the
88     performance of its duties; and
89          (e) selling, at a public or private sale, with public bidding, a mortgage or other
90     obligation held by the fund.
91          Section 2. Section 35A-8-601 is amended to read:
92          35A-8-601. Creation.
93          (1) There is created within the division the Homeless Coordinating Committee.
94          (2) (a) The committee shall consist of the following members :
95          (i) the lieutenant governor or the lieutenant governor's designee;
96          (ii) the state planning coordinator or the coordinator's designee;
97          (iii) the state superintendent of public instruction or the superintendent's designee;
98          (iv) the chair of the board of trustees of the Utah Housing Corporation or the chair's
99     designee;
100          (v) the executive director of the Department of Workforce Services or the executive
101     director's designee;
102          (vi) the executive director of the Department of Corrections or the executive director's
103     designee;
104          (vii) the executive director of the Department of Health or the executive director's
105     designee;
106          (viii) the executive director of the Department of Human Services or the executive
107     director's designee;
108          (ix) the mayor of Salt Lake City[; and] or the mayor's designee;
109          (x) the mayor of Salt Lake County[.] or the mayor's designee;
110          (xi) the mayor of Ogden or the mayor's designee;
111          (xii) the mayor of Midvale or the mayor's designee;
112          (xiii) the mayor of St. George or the mayor's designee; and
113          (xiv) the mayor of South Salt Lake or the mayor's designee.
114          (b) (i) The lieutenant governor shall serve as the chair of the committee.
115          (ii) The lieutenant governor may appoint a vice chair from among committee members,
116     who shall conduct committee meetings in the absence of the lieutenant governor.
117          (3) The governor may appoint as members of the committee:

118          (a) representatives of local governments, local housing authorities, local law
119     enforcement agencies;
120          (b) representatives of federal and private agencies and organizations concerned with
121     the homeless, persons with a mental illness, the elderly, single-parent families, persons with a
122     substance use disorder, and persons with a disability; and
123          (c) a resident of Salt Lake County.
124          (4) (a) Except as required by Subsection (4)(b), as terms of current committee members
125      appointed under Subsection (3) expire, the governor shall appoint each new member or
126     reappointed member to a four-year term.
127          (b) Notwithstanding the requirements of Subsection (4)(a), the governor shall, at the
128     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
129     committee members are staggered so that approximately half of the committee is appointed
130     every two years.
131          (c) A member appointed under Subsection (3) may not be appointed to serve more than
132     three consecutive terms.
133          (5) When a vacancy occurs in the membership for any reason, the replacement is
134     appointed for the unexpired term.
135          (6) A member may not receive compensation or benefits for the member's service, but
136     may receive per diem and travel expenses in accordance with:
137          (a) Section 63A-3-106;
138          (b) Section 63A-3-107; and
139          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
140     63A-3-107.
141          Section 3. Section 35A-8-604 is amended to read:
142          35A-8-604. Uses of Homeless to Housing Reform Restricted Account.
143           (1) With the concurrence of the division and in accordance with this section, the
144     Homeless Coordinating Committee members designated in Subsection 35A-8-601(2) may
145     award ongoing or one-time grants or contracts funded from the Homeless to Housing Reform
146     Restricted Account created in Section 35A-8-605.
147          (2) Before final approval of a grant or contract awarded under this section, the
148     Homeless Coordinating Committee and the division shall provide written information

149     regarding the grant or contract to, and shall consider the recommendations of, the Executive
150     Appropriations Committee.
151          (3) As a condition of receiving money, including any ongoing money, from the
152     [Homeless to Housing Reform Restricted Account] restricted account, an entity awarded a
153     grant or contract under this section shall provide detailed and accurate reporting on at least an
154     annual basis to the division and the Homeless Coordinating Committee that describes:
155          (a) how money provided from the [Homeless to Housing Reform Restricted Account]
156     restricted account has been spent by the entity; and
157          (b) the progress towards measurable outcome-based benchmarks agreed to between the
158     entity and the Homeless Coordinating Committee before the awarding of the grant or contract.
159          (4) In determining the awarding of a grant or contract under this section, the Homeless
160     Coordinating Committee, with the concurrence of the division, shall:
161          (a) ensure that the services to be provided through the grant or contract will be
162     provided in a cost-effective manner;
163          (b) consider the advice of committee members designated in Subsection 35A-8-601(3);
164          (c) give priority to a project or contract that will include significant additional or
165     matching funds from a private organization, nonprofit organization, or local government entity;
166          (d) ensure that the project or contract will target the distinct housing needs of one or
167     more at-risk or homeless subpopulations, which may include:
168          (i) families with children;
169          (ii) transitional-aged youth;
170          (iii) single men or single women;
171          (iv) veterans;
172          (v) victims of domestic violence;
173          (vi) individuals with behavioral health disorders, including mental health or substance
174     use disorders;
175          (vii) individuals who are medically frail or terminally ill;
176          (viii) individuals exiting prison or jail; or
177          (ix) individuals who are homeless without shelter; and
178          (e) consider whether the project will address one or more of the following goals:
179          (i) diverting homeless or imminently homeless individuals and families from

180     emergency shelters by providing better housing-based solutions;
181          (ii) meeting the basic needs of homeless individuals and families in crisis;
182          (iii) providing homeless individuals and families with needed stabilization services;
183          (iv) decreasing the state's homeless rate;
184          (v) implementing a coordinated entry system with consistent assessment tools to
185     provide appropriate and timely access to services for homeless individuals and families;
186          (vi) providing access to caseworkers or other individualized support for homeless
187     individuals and families;
188          (vii) encouraging employment and increased financial stability for individuals and
189     families being diverted from or exiting homelessness;
190          (viii) creating additional affordable housing for state residents;
191          (ix) providing services and support to prevent homelessness among at-risk individuals
192     and adults;
193          (x) providing services and support to prevent homelessness among at-risk children,
194     adolescents, and young adults; and
195          (xi) preventing the reoccurrence of homelessness among individuals and families
196     exiting homelessness.
197          (5) In addition to the other provisions of this section, in determining the awarding of a
198     grant or contract under this section to design, build, create, or renovate a facility that will
199     provide shelter or other resources for the homeless, the Homeless Coordinating Committee,
200     with the concurrence of the division, may consider whether the facility will be:
201          (a) located near mass transit services;
202          (b) located in an area that meets or will meet all zoning regulations before a final
203     dispersal of funds;
204          (c) safe and welcoming both for individuals using the facility and for members of the
205     surrounding community; and
206          (d) located in an area with access to employment, job training, and positive activities.
207          (6) In accordance with Subsection (5), and subject to the approval of the Homeless
208     Coordinating Committee with the concurrence of the division, the following may recommend a
209     site location, acquire a site location, and hold title to real property, buildings, fixtures, and
210     appurtenances of a facility that provides or will provide shelter or other resources for the

211     homeless:
212          (a) the county executive of a county of the first class on behalf of the county of the first
213     class, if the facility is or will be located in the county of the first class in a location other than
214     Salt Lake City;
215          (b) the state;
216          (c) a nonprofit entity approved by the Homeless Coordinating Committee with the
217     concurrence of the division; and
218          (d) a mayor of a municipality on behalf of the municipality where a facility is or will be
219     located.
220          (7) Subject to the requirements of Subsections (5) and (6), on or before March 30,
221     2017, the county executive of a county of the first class shall make a recommendation to the
222     Homeless Coordinating Committee identifying a site location for one facility within the county
223     of the first class that will provide shelter for the homeless in a location other than Salt Lake
224     City.
225          (8) (a) As used in this Subsection (8) and in Subsection (9), "homeless shelter" means a
226     facility that:
227          (i) is located within a municipality;
228          (ii) provides temporary shelter year-round to homeless individuals; and
229          (iii) has the capacity to provide temporary shelter to at least 50 individuals per night.
230          (b) In addition to the other provisions of this section, the Homeless Coordinating
231     Committee, with the concurrence of the division, may award a grant or contract:
232          (i) to a municipality to improve sidewalks, pathways, or roadways near a homeless
233     shelter to provide greater safety to homeless individuals; and
234          (ii) to a municipality to hire one or more peace officers to provide greater safety to
235     homeless individuals.
236          (9) (a) If a homeless shelter commits to provide matching funds equal to the total grant
237     awarded under this Subsection (9), the Homeless Coordinating Committee, with the
238     concurrence of the division, may award a grant for the ongoing operations of the homeless
239     shelter.
240          (b) In awarding a grant under this Subsection (9), the Homeless Coordinating
241     Committee, with the concurrence of the division, shall:

242          (i) give priority to a homeless shelter located in a county of the first class that has the
243     capacity to provide temporary shelter to at least 200 individuals per night; and
244          (ii) consider the number of beds available at the homeless shelter and the number and
245     quality of the homeless services provided by the homeless shelter.
246          [(9)] (10) The division may expend money from the [Homeless to Housing Reform
247     Restricted Account] restricted account to offset actual division and Homeless Coordinating
248     Committee expenses related to administering this section.
249          Section 4. Section 35A-8-605 is amended to read:
250          35A-8-605. Homeless to Housing Reform Restricted Account.
251          (1) There is created a restricted account within the General Fund known as the
252     Homeless to Housing Reform Restricted Account.
253          (2) The restricted account shall be administered by the division for the purposes
254     described in Section 35A-8-604.
255          (3) The state treasurer shall invest the money in the restricted account according to the
256     procedures and requirements of Title 51, Chapter 7, State Money Management Act, except that
257     interest and other earnings derived from the restricted account shall be deposited in the
258     restricted account.
259          (4) The restricted account shall be funded by:
260          (a) appropriations made to the account by the Legislature; and
261          (b) private donations, grants, gifts, bequests, or money made available from any other
262     source to implement this section and Section 35A-8-604.
263          (5) Subject to appropriation, the director shall use restricted account money as
264     described in Section 35A-8-604.
265          (6) The Homeless Coordinating Committee, in cooperation with the division, shall
266     submit an annual written report to the department that gives a complete accounting of the use
267     of money from the restricted account for inclusion in the annual report described in Section
268     35A-1-109.
269          Section 5. Section 35A-8-805 is enacted to read:
270          35A-8-805. Reporting requirements.
271          (1) As used in this section:
272          (a) "Affordable housing" means, as determined by the department, the number of

273     housing units within a county or municipality where a household whose income is at or below
274     50% of area median income is able to live in a unit without spending more than 30% of their
275     income on housing costs.
276          (b) "County" means the unincorporated area of a county.
277          (c) "Low-income housing" means, as determined by the department, the number of
278     Section 42, Internal Revenue Code, housing units within a county or municipality.
279          (d) "Municipality" means a city, town, or metro township.
280          (2) (a) On or before October 1 of each year, the division shall provide a report to the
281     department for inclusion in the department's annual report described in Section 35A-1-109.
282          (b) The report shall include:
283          (i) an estimate of how many affordable housing units and how many low-income
284     housing units are available in each county and municipality in the state;
285          (ii) a determination of the percentage of affordable housing available in each county
286     and municipality in the state as compared to the statewide average;
287          (iii) a determination of the percentage of low-income housing available in each county
288     and municipality in the state as compared to the statewide average; and
289          (iv) a description of how information in the report was calculated.
290          Section 6. Appropriation.
291          The following sums of money are appropriated for the fiscal year beginning July 1,
292     2018, and ending June 30, 2019. These are additions to amounts previously appropriated for
293     fiscal year 2019. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
294     Act, the Legislature appropriates the following sums of money from the funds or accounts
295     indicated for the use and support of the government of the state of Utah.
296     ITEM 1
297          To Fund and Account Transfers -- General Fund Restricted -- Homeless to
298           Housing Reform Restricted Account
299               From General Fund

300               Schedule of Programs:
301                    General Fund Restricted -- Homeless to
302                     Housing Reform Restricted Account     $6,600,000
303     ITEM 2

304          To Department of Workforce Services -- Housing and Community Development
305               From General Fund Restricted -- Homeless to Housing
306                Reform Restricted Account

307               Schedule of Programs:
308                    Homeless to Housing Reform Program     $6,600,000
309          The Legislature intends that:
310          (1) under Section 63J-1-603 appropriations provided under this section not lapse at the
311     close of fiscal year 2019; and
312          (2) the appropriation to the Homeless to Housing Reform Restricted Account be used
313     for the purposes described in Subsection 35A-8-604(9).