7 LONG TITLE
8 General Description:
9 This bill allows a community reinvestment agency to use the agency's housing
10 allocation for certain higher education student housing.
11 Highlighted Provisions:
12 This bill:
13 ▸ allows a community reinvestment agency to use the agency's housing allocation for
14 certain higher education student housing; and
15 ▸ makes technical and conforming changes.
16 Money Appropriated in this Bill:
18 Other Special Clauses:
20 Utah Code Sections Affected:
22 17C-1-412, as last amended by Laws of Utah 2018, Chapter 312
24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 17C-1-412 is amended to read:
26 17C-1-412. Use of housing allocation -- Separate accounting required -- Issuance
27 of bonds for housing -- Action to compel agency to provide housing allocation.
28 (1) (a) An agency shall use the agency's housing allocation, if applicable, to:
29 (i) pay part or all of the cost of land or construction of income targeted housing within
30 the boundary of the agency, if practicable in a mixed income development or area;
31 (ii) pay part or all of the cost of rehabilitation of income targeted housing within the
32 boundary of the agency;
33 (iii) lend, grant, or contribute money to a person, public entity, housing authority,
34 private entity or business, or nonprofit corporation for income targeted housing within the
35 boundary of the agency;
36 (iv) plan or otherwise promote income targeted housing within the boundary of the
38 (v) pay part or all of the cost of land or installation, construction, or rehabilitation of
39 any building, facility, structure, or other housing improvement, including infrastructure
40 improvements, related to housing located in a project area where blight has been found to exist;
41 (vi) replace housing units lost as a result of the project area development;
42 (vii) make payments on or establish a reserve fund for bonds:
43 (A) issued by the agency, the community, or the housing authority that provides
44 income targeted housing within the community; and
45 (B) all or part of the proceeds of which are used within the community for the purposes
46 stated in Subsection (1)(a)(i), (ii), (iii), (iv), (v), or (vi);
47 (viii) if the community's fair share ratio at the time of the first adoption of the project
48 area budget is at least 1.1 to 1.0, make payments on bonds:
49 (A) that were previously issued by the agency, the community, or the housing authority
50 that provides income targeted housing within the community; and
51 (B) all or part of the proceeds of which were used within the community for the
52 purposes stated in Subsection (1)(a)(i), (ii), (iii), (iv), (v), or (vi);
53 (ix) relocate mobile home park residents displaced by project area development; [
54 (x) subject to Subsection (6), transfer funds to a community that created the agency[
56 (xi) pay for or make a contribution toward the acquisition, construction, or
57 rehabilitation of housing that:
58 (A) is located in the same county as the agency;
59 (B) Ĥ→ is owned in whole or in part by, or is dedicated to supporting, ←Ĥ a public
59a nonprofit college or university Ĥ→ [
60 (C) only Ĥ→ [
60a university, including the students'
61 immediate families, occupy.
62 (b) As an alternative to the requirements of Subsection (1)(a), an agency may pay all or
63 any portion of the agency's housing allocation to:
64 (i) the community for use as described in Subsection (1)(a);
65 (ii) a housing authority that provides income targeted housing within the community
66 for use in providing income targeted housing within the community;
67 (iii) a housing authority established by the county in which the agency is located for
69 (A) income targeted housing within the county;
70 (B) permanent housing, permanent supportive housing, or a transitional facility, as
71 defined in Section 35A-5-302, within the county; or
72 (C) homeless assistance within the county; or
73 (iv) the Olene Walker Housing Loan Fund, established under Title 35A, Chapter 8,
74 Part 5, Olene Walker Housing Loan Fund, for use in providing income targeted housing within
75 the community.
76 (2) The agency shall create a housing fund and separately account for the agency's
77 housing allocation, together with all interest earned by the housing allocation and all payments
78 or repayments for loans, advances, or grants from the housing allocation.
79 (3) An agency may:
80 (a) issue bonds to finance a housing-related project under this section, including the
81 payment of principal and interest upon advances for surveys and plans or preliminary loans;
83 (b) issue refunding bonds for the payment or retirement of bonds under Subsection
84 (3)(a) previously issued by the agency.
85 (4) (a) Except as provided in Subsection (4)(b), an agency shall allocate money to the
86 housing fund each year in which the agency receives sufficient tax increment to make a
87 housing allocation required by the project area budget.
88 (b) Subsection (4)(a) does not apply in a year in which tax increment is insufficient.
89 (5) (a) Except as provided in Subsection (4)(b), if an agency fails to provide a housing
90 allocation in accordance with the project area budget and, if applicable, the housing plan
91 adopted under Subsection 17C-2-204(2), the loan fund board may bring legal action to compel
92 the agency to provide the housing allocation.
93 (b) In an action under Subsection (5)(a), the court:
94 (i) shall award the loan fund board reasonable attorney fees, unless the court finds that
95 the action was frivolous; and
96 (ii) may not award the agency the agency's attorney fees, unless the court finds that the
97 action was frivolous.
98 (6) For the purpose of offsetting the community's annual local contribution to the
99 Homeless Shelter Cities Mitigation Restricted Account, the total amount an agency transfers in
100 a calendar year to a community under Subsections (1)(a)(x), 17C-1-409(1)(a)(v), and
101 17C-1-411(1)(d) may not exceed the community's annual local contribution as defined in
102 Section 35A-8-606.