1     
AFFORDABLE HOUSING AMENDMENTS

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jacob L. Anderegg

5     
House Sponsor: Val K. Potter

6     

7     LONG TITLE
8     Committee Note:
9          The Economic Development and Workforce Services Interim Committee recommended
10     this bill.
11               Legislative Vote:     7 voting for     5 voting against     5 absent
12     General Description:
13          This bill modifies provisions related to affordable housing.
14     Highlighted Provisions:
15          This bill:
16          ▸     modifies the allowable uses for a community reinvestment agency's housing
17     allocation;
18          ▸     modifies the requirements for distributing money from the Olene Walker Housing
19     Loan Fund;
20          ▸     authorizes the Housing and Community Development Division (the division) to
21     partner with one or more housing authorities or other entities to provide rental
22     assistance;
23          ▸     authorizes the division to partner with the State Board of Education and one or more
24     housing authorities or other entities to identify and to provide rental assistance to
25     families with children who are homeless or are at risk of homelessness;
26          ▸     allows low-income housing tax credits to be assigned to another tax payer;
27          ▸     modifies the distribution of excess money in the Unclaimed Property Trust Fund;

28     and
29          ▸     makes technical changes.
30     Money Appropriated in this Bill:
31          This bill appropriates in fiscal year 2021:
32          ▸     to the Department of Workforce Services -- Olene Walker Housing Loan Fund as a
33     one-time appropriation:
34               •     from the General Fund, $20,300,000; and
35          ▸     to the Department of Workforce Services -- Olene Walker Housing Loan Fund as an
36     ongoing appropriation:
37               •     from the General Fund, $10,000,000.
38     Other Special Clauses:
39          None
40     Utah Code Sections Affected:
41     AMENDS:
42          17C-1-102, as last amended by Laws of Utah 2019, Chapters 376 and 480
43          17C-1-412, as last amended by Laws of Utah 2019, Chapters 296 and 376
44          35A-8-504, as last amended by Laws of Utah 2016, Chapters 131 and 350
45          35A-8-505, as last amended by Laws of Utah 2019, Chapter 327
46          59-7-607, as last amended by Laws of Utah 2017, Chapter 279
47          59-10-1010, as last amended by Laws of Utah 2017, Chapter 279
48          67-4a-801, as repealed and reenacted by Laws of Utah 2017, Chapter 371
49          67-4a-803, as enacted by Laws of Utah 2017, Chapter 371
50     ENACTS:
51          35A-8-507.1, Utah Code Annotated 1953
52          35A-8-507.2, Utah Code Annotated 1953
53     

54     Be it enacted by the Legislature of the state of Utah:
55          Section 1. Section 17C-1-102 is amended to read:
56          17C-1-102. Definitions.
57          As used in this title:
58          (1) "Active project area" means a project area that has not been dissolved in accordance

59     with Section 17C-1-702.
60          (2) "Adjusted tax increment" means the percentage of tax increment, if less than 100%,
61     that an agency is authorized to receive :
62          (a) for a pre-July 1, 1993, project area plan, under Section 17C-1-403, excluding tax
63     increment under Subsection 17C-1-403(3);
64          (b) for a post-June 30, 1993, project area plan, under Section 17C-1-404, excluding tax
65     increment under Section 17C-1-406;
66          (c) under a project area budget approved by a taxing entity committee; or
67          (d) under an interlocal agreement that authorizes the agency to receive a taxing entity's
68     tax increment.
69          (3) "Affordable housing" means housing owned or occupied by a low or moderate
70     income family, as determined by resolution of the agency.
71          (4) "Agency" or "community reinvestment agency" means a separate body corporate
72     and politic, created under Section 17C-1-201.5 or as a redevelopment agency or community
73     development and renewal agency under previous law:
74          (a) that is a political subdivision of the state;
75          (b) that is created to undertake or promote project area development as provided in this
76     title; and
77          (c) whose geographic boundaries are coterminous with:
78          (i) for an agency created by a county, the unincorporated area of the county; and
79          (ii) for an agency created by a municipality, the boundaries of the municipality.
80          (5) "Agency funds" means money that an agency collects or receives for agency
81     operations, implementing a project area plan, or other agency purposes, including:
82          (a) project area funds;
83          (b) income, proceeds, revenue, or property derived from or held in connection with the
84     agency's undertaking and implementation of project area development; or
85          (c) a contribution, loan, grant, or other financial assistance from any public or private
86     source.
87          (6) "Annual income" means the same as that term is defined in regulations of the
88     United States Department of Housing and Urban Development, 24 C.F.R. Sec. 5.609, as
89     amended or as superseded by replacement regulations.

90          (7) "Assessment roll" means the same as that term is defined in Section 59-2-102.
91          (8) "Base taxable value" means, unless otherwise adjusted in accordance with
92     provisions of this title, a property's taxable value as shown upon the assessment roll last
93     equalized during the base year.
94          (9) "Base year" means, except as provided in Subsection 17C-1-402(4)(c), the year
95     during which the assessment roll is last equalized:
96          (a) for a pre-July 1, 1993, urban renewal or economic development project area plan,
97     before the project area plan's effective date;
98          (b) for a post-June 30, 1993, urban renewal or economic development project area
99     plan, or a community reinvestment project area plan that is subject to a taxing entity
100     committee:
101          (i) before the date on which the taxing entity committee approves the project area
102     budget; or
103          (ii) if taxing entity committee approval is not required for the project area budget,
104     before the date on which the community legislative body adopts the project area plan;
105          (c) for a project on an inactive airport site, after the later of:
106          (i) the date on which the inactive airport site is sold for remediation and development;
107     or
108          (ii) the date on which the airport that operated on the inactive airport site ceased
109     operations; or
110          (d) for a community development project area plan or a community reinvestment
111     project area plan that is subject to an interlocal agreement, as described in the interlocal
112     agreement.
113          (10) "Basic levy" means the portion of a school district's tax levy constituting the
114     minimum basic levy under Section 59-2-902.
115          (11) "Board" means the governing body of an agency, as described in Section
116     17C-1-203.
117          (12) "Budget hearing" means the public hearing on a proposed project area budget
118     required under Subsection 17C-2-201(2)(d) for an urban renewal project area budget,
119     Subsection 17C-3-201(2)(d) for an economic development project area budget, or Subsection
120     17C-5-302(2)(e) for a community reinvestment project area budget.

121          (13) "Closed military base" means land within a former military base that the Defense
122     Base Closure and Realignment Commission has voted to close or realign when that action has
123     been sustained by the president of the United States and Congress.
124          (14) "Combined incremental value" means the combined total of all incremental values
125     from all project areas, except project areas that contain some or all of a military installation or
126     inactive industrial site, within the agency's boundaries under project area plans and project area
127     budgets at the time that a project area budget for a new project area is being considered.
128          (15) "Community" means a county or municipality.
129          (16) "Community development project area plan" means a project area plan adopted
130     under Chapter 4, Part 1, Community Development Project Area Plan.
131          (17) "Community legislative body" means the legislative body of the community that
132     created the agency.
133          (18) "Community reinvestment project area plan" means a project area plan adopted
134     under Chapter 5, Part 1, Community Reinvestment Project Area Plan.
135          (19) "Contest" means to file a written complaint in the district court of the county in
136     which the agency is located.
137          (20) "Development impediment" means a condition of an area that meets the
138     requirements described in Section 17C-2-303 for an urban renewal project area or Section
139     17C-5-405 for a community reinvestment project area.
140          (21) "Development impediment hearing" means a public hearing regarding whether a
141     development impediment exists within a proposed:
142          (a) urban renewal project area under Subsection 17C-2-102(1)(a)(i)(C) and Section
143     17C-2-302; or
144          (b) community reinvestment project area under Section 17C-5-404.
145          (22) "Development impediment study" means a study to determine whether a
146     development impediment exists within a survey area as described in Section 17C-2-301 for an
147     urban renewal project area or Section 17C-5-403 for a community reinvestment project area.
148          (23) "Economic development project area plan" means a project area plan adopted
149     under Chapter 3, Part 1, Economic Development Project Area Plan.
150          (24) "Fair share ratio" means the ratio derived by:
151          (a) for a municipality, comparing the percentage of all housing units within the

152     municipality that are publicly subsidized income targeted housing units to the percentage of all
153     housing units within the county in which the municipality is located that are publicly
154     subsidized income targeted housing units; or
155          (b) for the unincorporated part of a county, comparing the percentage of all housing
156     units within the unincorporated county that are publicly subsidized income targeted housing
157     units to the percentage of all housing units within the whole county that are publicly subsidized
158     income targeted housing units.
159          (25) "Family" means the same as that term is defined in regulations of the United
160     States Department of Housing and Urban Development, 24 C.F.R. Section 5.403, as amended
161     or as superseded by replacement regulations.
162          (26) "Greenfield" means land not developed beyond agricultural, range, or forestry use.
163          (27) "Hazardous waste" means any substance defined, regulated, or listed as a
164     hazardous substance, hazardous material, hazardous waste, toxic waste, pollutant, contaminant,
165     or toxic substance, or identified as hazardous to human health or the environment, under state
166     or federal law or regulation.
167          (28) "Housing allocation" means project area funds allocated for housing under Section
168     17C-2-203, 17C-3-202, or 17C-5-307 for the purposes described in Section 17C-1-412.
169          (29) "Housing fund" means a fund created by an agency for purposes described in
170     Section 17C-1-411 or 17C-1-412 that is comprised of:
171          (a) project area funds allocated for the purposes described in Section 17C-1-411; or
172          (b) an agency's housing allocation.
173          (30) (a) "Inactive airport site" means land that:
174          (i) consists of at least 100 acres;
175          (ii) is occupied by an airport:
176          (A) (I) that is no longer in operation as an airport; or
177          (II) (Aa) that is scheduled to be decommissioned; and
178          (Bb) for which a replacement commercial service airport is under construction; and
179          (B) that is owned or was formerly owned and operated by a public entity; and
180          (iii) requires remediation because:
181          (A) of the presence of hazardous waste or solid waste; or
182          (B) the site lacks sufficient public infrastructure and facilities, including public roads,

183     electric service, water system, and sewer system, needed to support development of the site.
184          (b) "Inactive airport site" includes a perimeter of up to 2,500 feet around the land
185     described in Subsection (30)(a).
186          (31) (a) "Inactive industrial site" means land that:
187          (i) consists of at least 1,000 acres;
188          (ii) is occupied by an inactive or abandoned factory, smelter, or other heavy industrial
189     facility; and
190          (iii) requires remediation because of the presence of hazardous waste or solid waste.
191          (b) "Inactive industrial site" includes a perimeter of up to 1,500 feet around the land
192     described in Subsection (31)(a).
193          (32) "Income targeted housing" means housing that is owned or occupied by a family
194     whose annual income is at or below 80% of the median annual income for a family within the
195     county in which the housing is located.
196          (33) "Incremental value" means a figure derived by multiplying the marginal value of
197     the property located within a project area on which tax increment is collected by a number that
198     represents the adjusted tax increment from that project area that is paid to the agency.
199          (34) "Loan fund board" means the Olene Walker Housing Loan Fund Board,
200     established under Title 35A, Chapter 8, Part 5, Olene Walker Housing Loan Fund.
201          (35) (a) " Local government building" means a building owned and operated by a
202     community for the primary purpose of providing one or more primary community functions,
203     including:
204          (i) a fire station;
205          (ii) a police station;
206          (iii) a city hall; or
207          (iv) a court or other judicial building.
208          (b) " Local government building" does not include a building the primary purpose of
209     which is cultural or recreational in nature.
210          (36) "Marginal value" means the difference between actual taxable value and base
211     taxable value.
212          (37) "Military installation project area" means a project area or a portion of a project
213     area located within a federal military installation ordered closed by the federal Defense Base

214     Realignment and Closure Commission.
215          (38) "Municipality" means a city, town, or metro township as defined in Section
216     10-2a-403.
217          (39) "Participant" means one or more persons that enter into a participation agreement
218     with an agency.
219          (40) "Participation agreement" means a written agreement between a person and an
220     agency that:
221          (a) includes a description of:
222          (i) the project area development that the person will undertake;
223          (ii) the amount of project area funds the person may receive; and
224          (iii) the terms and conditions under which the person may receive project area funds;
225     and
226          (b) is approved by resolution of the board.
227          (41) "Plan hearing" means the public hearing on a proposed project area plan required
228     under Subsection 17C-2-102(1)(a)(vi) for an urban renewal project area plan, Subsection
229     17C-3-102(1)(d) for an economic development project area plan, Subsection 17C-4-102(1)(d)
230     for a community development project area plan, or Subsection 17C-5-104(3)(e) for a
231     community reinvestment project area plan.
232          (42) "Post-June 30, 1993, project area plan" means a project area plan adopted on or
233     after July 1, 1993, and before May 10, 2016, whether or not amended subsequent to the project
234     area plan's adoption.
235          (43) "Pre-July 1, 1993, project area plan" means a project area plan adopted before July
236     1, 1993, whether or not amended subsequent to the project area plan's adoption.
237          (44) "Private," with respect to real property, means property not owned by a public
238     entity or any other governmental entity.
239          (45) "Project area" means the geographic area described in a project area plan within
240     which the project area development described in the project area plan takes place or is
241     proposed to take place.
242          (46) "Project area budget" means a multiyear projection of annual or cumulative
243     revenues and expenses and other fiscal matters pertaining to a project area prepared in
244     accordance with:

245          (a) for an urban renewal project area, Section 17C-2-201;
246          (b) for an economic development project area, Section 17C-3-201;
247          (c) for a community development project area, Section 17C-4-204; or
248          (d) for a community reinvestment project area, Section 17C-5-302.
249          (47) "Project area development" means activity within a project area that, as
250     determined by the board, encourages, promotes, or provides development or redevelopment for
251     the purpose of implementing a project area plan, including:
252          (a) promoting, creating, or retaining public or private jobs within the state or a
253     community;
254          (b) providing office, manufacturing, warehousing, distribution, parking, or other
255     facilities or improvements;
256          (c) planning, designing, demolishing, clearing, constructing, rehabilitating, or
257     remediating environmental issues;
258          (d) providing residential, commercial, industrial, public, or other structures or spaces,
259     including recreational and other facilities incidental or appurtenant to the structures or spaces;
260          (e) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating
261     existing structures;
262          (f) providing open space, including streets or other public grounds or space around
263     buildings;
264          (g) providing public or private buildings, infrastructure, structures, or improvements;
265          (h) relocating a business;
266          (i) improving public or private recreation areas or other public grounds;
267          (j) eliminating a development impediment or the causes of a development impediment;
268          (k) redevelopment as defined under the law in effect before May 1, 2006; or
269          (l) any activity described in this Subsection (47) outside of a project area that the board
270     determines to be a benefit to the project area.
271          (48) "Project area funds" means tax increment or sales and use tax revenue that an
272     agency receives under a project area budget adopted by a taxing entity committee or an
273     interlocal agreement.
274          (49) "Project area funds collection period" means the period of time that:
275          (a) begins the day on which the first payment of project area funds is distributed to an

276     agency under a project area budget approved by a taxing entity committee or an interlocal
277     agreement; and
278          (b) ends the day on which the last payment of project area funds is distributed to an
279     agency under a project area budget approved by a taxing entity committee or an interlocal
280     agreement.
281          (50) "Project area plan" means an urban renewal project area plan, an economic
282     development project area plan, a community development project area plan, or a community
283     reinvestment project area plan that, after the project area plan's effective date, guides and
284     controls the project area development.
285          (51) (a) "Property tax" means each levy on an ad valorem basis on tangible or
286     intangible personal or real property.
287          (b) "Property tax" includes a privilege tax imposed under Title 59, Chapter 4, Privilege
288     Tax.
289          (52) "Public entity" means:
290          (a) the United States, including an agency of the United States;
291          (b) the state, including any of the state's departments or agencies; or
292          (c) a political subdivision of the state, including a county, municipality, school district,
293     local district, special service district, community reinvestment agency, or interlocal cooperation
294     entity.
295          (53) "Publicly owned infrastructure and improvements" means water, sewer, storm
296     drainage, electrical, natural gas, telecommunication, or other similar systems and lines, streets,
297     roads, curb, gutter, sidewalk, walkways, parking facilities, public transportation facilities, or
298     other facilities, infrastructure, and improvements benefitting the public and to be publicly
299     owned or publicly maintained or operated.
300          (54) "Record property owner" or "record owner of property" means the owner of real
301     property, as shown on the records of the county in which the property is located, to whom the
302     property's tax notice is sent.
303          (55) "Sales and use tax revenue" means revenue that is:
304          (a) generated from a tax imposed under Title 59, Chapter 12, Sales and Use Tax Act;
305     and
306          (b) distributed to a taxing entity in accordance with Sections 59-12-204 and 59-12-205.

307          (56) "Superfund site":
308          (a) means an area included in the National Priorities List under the Comprehensive
309     Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec. 9605; and
310          (b) includes an area formerly included in the National Priorities List, as described in
311     Subsection (56)(a), but removed from the list following remediation that leaves on site the
312     waste that caused the area to be included in the National Priorities List.
313          (57) "Survey area" means a geographic area designated for study by a survey area
314     resolution to determine whether:
315          (a) one or more project areas within the survey area are feasible; or
316          (b) a development impediment exists within the survey area.
317          (58) "Survey area resolution" means a resolution adopted by a board that designates a
318     survey area.
319          (59) "Taxable value" means:
320          (a) the taxable value of all real property a county assessor assesses in accordance with
321     Title 59, Chapter 2, Part 3, County Assessment, for the current year;
322          (b) the taxable value of all real and personal property the commission assesses in
323     accordance with Title 59, Chapter 2, Part 2, Assessment of Property, for the current year; and
324          (c) the year end taxable value of all personal property a county assessor assesses in
325     accordance with Title 59, Chapter 2, Part 3, County Assessment, contained on the prior year's
326     tax rolls of the taxing entity.
327          (60) (a) "Tax increment" means the difference between:
328          (i) the amount of property tax revenue generated each tax year by a taxing entity from
329     the area within a project area designated in the project area plan as the area from which tax
330     increment is to be collected, using the current assessed value of the property and each taxing
331     entity's current certified tax rate as defined in Section 59-2-924; and
332          (ii) the amount of property tax revenue that would be generated from that same area
333     using the base taxable value of the property and each taxing entity's current certified tax rate as
334     defined in Section 59-2-924.
335          (b) "Tax increment" does not include taxes levied and collected under Section
336     59-2-1602 on or after January 1, 1994, upon the taxable property in the project area unless:
337          (i) the project area plan was adopted before May 4, 1993, whether or not the project

338     area plan was subsequently amended; and
339          (ii) the taxes were pledged to support bond indebtedness or other contractual
340     obligations of the agency.
341          (61) "Taxing entity" means a public entity that:
342          (a) levies a tax on property located within a project area; or
343          (b) imposes a sales and use tax under Title 59, Chapter 12, Sales and Use Tax Act.
344          (62) "Taxing entity committee" means a committee representing the interests of taxing
345     entities, created in accordance with Section 17C-1-402.
346          (63) "Transit investment corridor" means public transit service that uses or occupies:
347          (a) public transit rail right-of-way;
348          (b) dedicated road right-of-way for the use of public transit, such as bus rapid transit;
349     or
350          (c) fixed-route bus corridors subject to an interlocal agreement or contract between a
351     municipality or county and:
352          (i) a public transit district as defined in Section 17B-2a-802; or
353          (ii) an eligible political subdivision as defined in Section 59-12-2219.
354          [(63)] (64) "Unincorporated" means not within a municipality.
355          [(64)] (65) "Urban renewal project area plan" means a project area plan adopted under
356     Chapter 2, Part 1, Urban Renewal Project Area Plan.
357          Section 2. Section 17C-1-412 is amended to read:
358          17C-1-412. Use of housing allocation -- Separate accounting required -- Issuance
359     of bonds for housing -- Action to compel agency to provide housing allocation.
360          (1) (a) An agency shall use the agency's housing allocation to:
361          (i) pay part or all of the cost of land or construction of income targeted housing within
362     the boundary of the agency, if practicable in a mixed income development or area;
363          (ii) pay part or all of the cost of rehabilitation of income targeted housing within the
364     boundary of the agency;
365          (iii) lend, grant, or contribute money to a person, public entity, housing authority,
366     private entity or business, or nonprofit corporation for income targeted housing within the
367     boundary of the agency;
368          (iv) plan or otherwise promote income targeted housing within the boundary of the

369     agency;
370          (v) pay part or all of the cost of land or installation, construction, or rehabilitation of
371     any building, facility, structure, or other housing improvement, including infrastructure
372     improvements, related to housing located in a project area where a board has determined that a
373     development impediment exists;
374          (vi) replace housing units lost as a result of the project area development;
375          (vii) make payments on or establish a reserve fund for bonds:
376          (A) issued by the agency, the community, or the housing authority that provides
377     income targeted housing within the community; and
378          (B) all or part of the proceeds of which are used within the community for the purposes
379     stated in Subsection (1)(a)(i), (ii), (iii), (iv), (v), or (vi);
380          (viii) if the community's fair share ratio at the time of the first adoption of the project
381     area budget is at least 1.1 to 1.0, make payments on bonds:
382          (A) that were previously issued by the agency, the community, or the housing authority
383     that provides income targeted housing within the community; and
384          (B) all or part of the proceeds of which were used within the community for the
385     purposes stated in Subsection (1)(a)(i), (ii), (iii), (iv), (v), or (vi);
386          (ix) relocate mobile home park residents displaced by project area development;
387          (x) subject to Subsection [(6)] (7), transfer funds to a community that created the
388     agency; or
389          (xi) pay for or make a contribution toward the acquisition, construction, or
390     rehabilitation of housing that:
391          (A) is located in the same county as the agency;
392          (B) is owned in whole or in [party] part by, or is dedicated to supporting, a public
393     nonprofit college or university; and
394          (C) only students of the relevant college or university, including the students'
395     immediate families, occupy.
396          (b) As an alternative to the requirements of Subsection (1)(a), an agency may pay all or
397     any portion of the agency's housing allocation to:
398          (i) the community for use as described in Subsection (1)(a);
399          (ii) a housing authority that provides income targeted housing within the community

400     for use in providing income targeted housing within the community;
401          (iii) a housing authority established by the county in which the agency is located for
402     providing:
403          (A) income targeted housing within the county;
404          (B) permanent housing, permanent supportive housing, or a transitional facility, as
405     defined in Section 35A-5-302, within the county; or
406          (C) homeless assistance within the county; [or]
407          (iv) the Olene Walker Housing Loan Fund, established under Title 35A, Chapter 8,
408     Part 5, Olene Walker Housing Loan Fund, for use in providing income targeted housing within
409     the community[.]; or
410          (v) pay for or make a contribution toward the acquisition, construction, or
411     rehabilitation of income targeted housing that is outside of the community if the housing is
412     located along or near a transit investment corridor that services the community and the related
413     project has been approved by the community in which the housing is or will be located.
414          (2) (a) An agency may combine all or any portion of the agency's housing allocation
415     with all or any portion of one or more additional agency's housing allocations if the agencies
416     execute an interlocal agreement in accordance with Title 11, Chapter 13, Interlocal Cooperation
417     Act.
418          (b) An agency that has entered into an interlocal agreement as described in Subsection
419     (2)(a), meets the requirements of Subsection (1)(a) or (1)(b) if the use of the housing allocation
420     meets the requirements for at least one agency that is a party to the interlocal agreement.
421          [(2)] (3) The agency shall create a housing fund and separately account for the agency's
422     housing allocation, together with all interest earned by the housing allocation and all payments
423     or repayments for loans, advances, or grants from the housing allocation.
424          [(3)] (4) An agency may:
425          (a) issue bonds to finance a housing-related project under this section, including the
426     payment of principal and interest upon advances for surveys and plans or preliminary loans;
427     and
428          (b) issue refunding bonds for the payment or retirement of bonds under Subsection
429     [(3)] (4)(a) previously issued by the agency.
430          [(4)] (5) (a) Except as provided in Subsection [(4)] (5)(b), an agency shall allocate

431     money to the housing fund each year in which the agency receives sufficient tax increment to
432     make a housing allocation required by the project area budget.
433          (b) Subsection [(4)] (5)(a) does not apply in a year in which tax increment is
434     insufficient.
435          [(5)] (6) (a) Except as provided in Subsection [(4)] (5)(b), if an agency fails to provide
436     a housing allocation in accordance with the project area budget and the housing plan adopted
437     under Subsection 17C-2-204(2), the loan fund board may bring legal action to compel the
438     agency to provide the housing allocation.
439          (b) In an action under Subsection [(5)] (6)(a), the court:
440          (i) shall award the loan fund board reasonable attorney fees, unless the court finds that
441     the action was frivolous; and
442          (ii) may not award the agency the agency's attorney fees, unless the court finds that the
443     action was frivolous.
444          [(6)] (7) For the purpose of offsetting the community's annual local contribution to the
445     Homeless Shelter Cities Mitigation Restricted Account, the total amount an agency transfers in
446     a calendar year to a community under Subsections (1)(a)(x), 17C-1-409(1)(a)(v), and
447     17C-1-411(1)(d) may not exceed the community's annual local contribution as defined in
448     Section 35A-8-606.
449          Section 3. Section 35A-8-504 is amended to read:
450          35A-8-504. Distribution of fund money.
451          (1) The executive director shall:
452          (a) make grants and loans from the fund for any of the activities authorized by Section
453     35A-8-505, as directed by the board;
454          (b) establish the criteria with the approval of the board by which loans and grants will
455     be made; and
456          (c) determine with the approval of the board the order in which projects will be funded.
457          (2) The executive director shall distribute, as directed by the board, any federal money
458     contained in the fund according to the procedures, conditions, and restrictions placed upon the
459     use of the money by the federal government.
460          (3) (a) The executive director shall distribute, as directed by the board, any funds
461     received under Section 17C-1-412 to pay the costs of providing income targeted housing within

462     the community that created the community reinvestment agency under Title 17C, Limited
463     Purpose Local Government Entities - Community Reinvestment Agency Act.
464          (b) As used in Subsection (3)(a):
465          (i) "Community" means the same as that term is defined in Section 17C-1-102.
466          (ii) "Income targeted housing" means the same as that term is defined in Section
467     17C-1-102.
468          (4) Except for federal money [and], money received under Section 17C-1-412,
469     appropriations from the Legislature that are directed to rental assistance under Section
470     35A-8-507.1, and money transferred to the fund from the Unclaimed Property Trust Fund
471     under Section 67A-4a-801, the executive director shall distribute, as directed by the board,
472     money in the fund according to the following requirements:
473          (a) the executive director shall distribute at least 30% of the money in the fund to rural
474     areas of the state;
475          (b) the executive director shall distribute at least 70% of the money in the fund to
476     benefit persons whose annual income is at or below 50% of the median family income for the
477     state;
478          (c) the executive director may not use more than 3% of the revenues of the fund to
479     offset department or board administrative expenses;
480          (d) the executive director shall distribute any remaining money in the fund to benefit
481     persons whose annual income is at or below 80% of the median family income for the state;
482     and
483          (e) if the executive director or the executive director's designee makes a loan in
484     accordance with this section, the interest rate of the loan shall be based on the borrower's
485     ability to pay.
486          (5) The executive director may, with the approval of the board:
487          (a) enact rules to establish procedures for the grant and loan process by following the
488     procedures and requirements of Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
489     and
490          (b) service or contract, under Title 63G, Chapter 6a, Utah Procurement Code, for the
491     servicing of loans made by the fund.
492          Section 4. Section 35A-8-505 is amended to read:

493          35A-8-505. Activities authorized to receive fund money -- Powers of the executive
494     director.
495          At the direction of the board, the executive director may:
496          (1) provide fund money to any of the following activities:
497          (a) the acquisition, rehabilitation, or new construction of low-income housing units;
498          (b) matching funds for social services projects directly related to providing housing for
499     special-need renters in assisted projects;
500          (c) the development and construction of accessible housing designed for low-income
501     persons;
502          (d) the construction or improvement of a shelter or transitional housing facility that
503     provides services intended to prevent or minimize homelessness among members of a specific
504     homeless subpopulation;
505          (e) the purchase of an existing facility to provide temporary or transitional housing for
506     the homeless in an area that does not require rezoning before providing such temporary or
507     transitional housing;
508          (f) the purchase of land that will be used as the site of low-income housing units; [and]
509          (g) other activities that will assist in minimizing homelessness or improving the
510     availability or quality of housing in the state for low-income persons; and
511          (h) rental assistance as described in Section 35A-8-507.1;
512          (2) do any act necessary or convenient to the exercise of the powers granted by this part
513     or reasonably implied from those granted powers, including:
514          (a) making or executing contracts and other instruments necessary or convenient for
515     the performance of the executive director and board's duties and the exercise of the executive
516     director and board's powers and functions under this part, including contracts or agreements for
517     the servicing and originating of mortgage loans;
518          (b) procuring insurance against a loss in connection with property or other assets held
519     by the fund, including mortgage loans, in amounts and from insurers it considers desirable;
520          (c) entering into agreements with a department, agency, or instrumentality of the
521     United States or this state and with mortgagors and mortgage lenders for the purpose of
522     planning and regulating and providing for the financing and refinancing, purchase,
523     construction, reconstruction, rehabilitation, leasing, management, maintenance, operation, sale,

524     or other disposition of residential housing undertaken with the assistance of the department
525     under this part;
526          (d) proceeding with a foreclosure action, to own, lease, clear, reconstruct, rehabilitate,
527     repair, maintain, manage, operate, assign, encumber, sell, or otherwise dispose of real or
528     personal property obtained by the fund due to the default on a mortgage loan held by the fund
529     in preparation for disposition of the property, taking assignments of leases and rentals,
530     proceeding with foreclosure actions, and taking other actions necessary or incidental to the
531     performance of its duties; [and]
532          (e) selling, at a public or private sale, with public bidding, a mortgage or other
533     obligation held by the fund[.]; and
534          (3) provide fund money, which has been transferred to the fund from the Unclaimed
535     Property Trust Fund as described in Section 67A-4a-801, for rental assistance for families with
536     children that are homeless or who are at risk of being homeless as described in Section
537     35A-8-507.2.
538          Section 5. Section 35A-8-507.1 is enacted to read:
539          35A-8-507.1. Rental assistance.
540          (1) (a) At the direction of the board and subject to appropriations from the Legislature,
541     the division may partner with one or more housing authorities, associations of governments, or
542     nonprofit entities to provide rental assistance for housing to individuals who qualify for or
543     would qualify for, but are not benefitting from, federal housing vouchers provided under 42
544     U.S.C. Sec. 1437f.
545          (b) The rental assistance provided under this part may include:
546          (i) subsidizing rent payments for housing;
547          (ii) subsidizing the provision of temporary or transitional housing; and
548          (iii) providing money for one-time barrier assistance such as application fees, utility
549     hookups, or deposits related to housing.
550          (2) The division shall provide an annual report to the department, for inclusion in the
551     department's annual written report described in Section 35A-1-109, which describes:
552          (a) the housing authorities or other nonprofit entities the division has partnered with
553     under the provisions of this section;
554          (b) the amount of money provided to each housing authority or other nonprofit entity

555     under this section;
556          (c) the number of individuals who are benefitting from rental assistance under the
557     provisions of this section;
558          (d) the average monthly dollar amount of rental assistance provided to an individual
559     under the provisions of this section; and
560          (e) recommendations regarding improvements or changes related to providing rental
561     assistance under the provisions of this section.
562          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
563     department may make rules governing the administration of this section.
564          Section 6. Section 35A-8-507.2 is enacted to read:
565          35A-8-507.2. Rental assistance for homeless families.
566          (1) (a) At the direction of the board, and using money transferred to the Olene Walker
567     Housing Loan Fund from the Unclaimed Property Trust Fund as described in Section
568     67A-4a-801, the division may partner with the State Board of Education and one or more
569     housing authorities, associations of governments, or nonprofit entities to provide rental
570     assistance for housing to families with children that are homeless or who are at risk of being
571     homeless.
572          (b) The rental assistance provided under this part may include:
573          (i) subsidizing rent payments for housing;
574          (ii) subsidizing the provision of temporary or transitional housing; and
575          (iii) providing money for one-time barrier assistance such as application fees, utility
576     hookups, or deposits related to housing.
577          (2) The division shall provide an annual report to the department, for inclusion in the
578     department's annual written report described in Section 35A-1-109, which describes:
579          (a) the entities the division has partnered with under the provisions of this section;
580          (b) the amount of money provided to each entity under this section;
581          (c) the number of children and families who are benefitting from rental assistance
582     under the provisions of this section;
583          (d) the average monthly dollar amount provided to children and families under the
584     provisions of this section; and
585          (e) recommendations regarding improvements or changes related to providing rental

586     assistance under the provisions of this section.
587          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
588     department may make rules governing the administration of this section.
589          Section 7. Section 59-7-607 is amended to read:
590          59-7-607. Utah low-income housing tax credit.
591          (1) As used in this section:
592          (a) "Allocation certificate" means a certificate in a form prescribed by the commission
593     and issued by the Utah Housing Corporation to a housing sponsor that specifies the aggregate
594     amount of the tax credit awarded under this section to a qualified development and includes:
595          (i) the aggregate annual amount of the tax credit awarded that may be claimed by one
596     or more qualified taxpayers that have been issued a special low-income housing tax credit
597     certificate; and
598          (ii) the credit period over which the tax credit may be claimed by one or more qualified
599     taxpayers that have been issued a special low-income housing tax credit certificate.
600          (b) "Building" means a qualified low-income building as defined in Section 42(c),
601     Internal Revenue Code.
602          (c) "Credit period" means the "credit period" as defined in Section 42(f)(1), Internal
603     Revenue Code.
604          (d) (i) "Designated reporter" means, as selected by a housing sponsor, the housing
605     sponsor itself or one of the housing sponsor's direct or indirect partners, members, or
606     shareholders that will provide information to the Utah Housing Corporation regarding the
607     assignment of tax credits under this section.
608          (ii) Before the Utah Housing Corporation may issue an allocation certificate to a
609     housing sponsor, a housing sponsor shall provide the identity of the housing sponsor's
610     designated reporter to the Utah Housing Corporation.
611          (iii) Before the Utah Housing Corporation may issue a special low-income housing tax
612     credit certificate to a qualified taxpayer, a designated reporter shall provide the information
613     described in Subsection (6) to the Utah Housing Corporation.
614          (e) "Federal low-income housing tax credit" means the federal tax credit described in
615     Section 42, Internal Revenue Code.
616          (f) "Housing sponsor" means an entity that owns a qualified development.

617          (g) "Qualified allocation plan" means a qualified allocation plan adopted by the Utah
618     Housing Corporation in accordance with Section 42(m), Internal Revenue Code.
619          (h) "Qualified development" means a "qualified low-income housing project":
620          (i) as defined in Section 42(g)(1), Internal Revenue Code; and
621          (ii) that is located in the state.
622          (i) (i) "Qualified taxpayer" means a person that:
623          (A) owns a direct or indirect interest in a qualified development; and
624          (B) meets the requirements to claim a tax credit under this section.
625          (ii) If a housing sponsor is a partnership, limited liability company, or S corporation, a
626     "qualified taxpayer" may include any partner, member, or shareholder of the housing sponsor
627     as determined by the governing documents of the housing sponsor.
628          (j) (i) "Special low-income housing tax credit certificate" means a certificate:
629          (A) in a form prescribed by the commission;
630          (B) that the Utah Housing Corporation issues to a qualified taxpayer for a taxable year
631     in accordance with this section; and
632          (C) that specifies the amount of the tax credit a qualified taxpayer may claim under this
633     section.
634          (ii) The Utah Housing Corporation may only issue one or more special low-income
635     housing tax credit certificates if the aggregate specified amount on all special low-income
636     housing tax credit certificates issued in relation to a qualified development does not exceed the
637     aggregate amount of tax credit awarded to the qualified development and issued to a housing
638     sponsor in an allocation certificate.
639          (2) (a) For taxable years beginning on or after January 1, 1995, a qualified taxpayer
640     who has been issued a special low-income housing tax credit certificate by the Utah Housing
641     Corporation may claim a nonrefundable tax credit against taxes otherwise due under this
642     chapter [or], Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay
643     Corporate Franchise or Income Tax Act, or Chapter 9, Taxation of Admitted Insurers.
644          (b) The tax credit shall be in an amount equal to the tax credit amount specified on the
645     special low-income housing tax credit certificate that the Utah Housing Corporation issues to a
646     qualified taxpayer under this section.
647          (c) (i) For a calendar year beginning on or before December 31, 2016, the aggregate

648     annual tax credit that the Utah Housing Corporation may allocate for the credit period
649     described in Section 42(f), Internal Revenue Code, pursuant to this section and Section
650     59-10-1010 is an amount equal to the product of:
651          (A) 12.5 cents; and
652          (B) the population of Utah.
653          (ii) For a calendar year beginning on or after January 1, 2017, the aggregate annual tax
654     credit that the Utah Housing Corporation may allocate for the credit period described in
655     Section 42(f), Internal Revenue Code, pursuant to this section and Section 59-10-1010 is an
656     amount equal to the product of:
657          (A) 34.5 cents; and
658          (B) the population of Utah.
659          (iii) For purposes of this section, the population of Utah shall be determined in
660     accordance with Section 146(j), Internal Revenue Code.
661          (3) (a) The Utah Housing Corporation shall determine criteria and procedures for
662     allocating the tax credit under this section and Section 59-10-1010 and incorporate the criteria
663     and procedures into the Utah Housing Corporation's qualified allocation plan.
664          (b) The Utah Housing Corporation shall create the criteria under Subsection (3)(a)
665     based on:
666          (i) the number of affordable housing units to be created in Utah for low and moderate
667     income persons in a qualified development;
668          (ii) the level of area median income being served by a qualified development;
669          (iii) the need for the tax credit for the economic feasibility of a qualified development;
670     and
671          (iv) the extended period for which a qualified development commits to remain as
672     affordable housing.
673          (4) Any housing sponsor may apply to the Utah Housing Corporation for a tax credit
674     allocation under this section.
675          (5) (a) The Utah Housing Corporation shall determine the amount of the tax credit to
676     allocate to a qualified development in accordance with the qualified allocation plan of the Utah
677     Housing Corporation.
678          (b) (i) The Utah Housing Corporation shall issue an allocation certificate to a housing

679     sponsor as evidence of the allocation.
680          (ii) The allocation certificate under Subsection (5)(b)(i) shall specify the amount of the
681     tax credit allocated to a qualified development as determined by the Utah Housing Corporation.
682          (c) The amount of the tax credit specified in an allocation certificate may not exceed
683     100% of the federal low-income housing tax credit awarded to a qualified development.
684          (6) Before the Utah Housing Corporation may issue a special low-income housing tax
685     credit certificate, a designated reporter shall provide to the Utah Housing Corporation in a form
686     prescribed by the Utah Housing Corporation:
687          (a) a list of each qualified taxpayer that has been assigned a portion of the tax credit
688     awarded in an allocation certificate;
689          (b) for each qualified taxpayer described in Subsection (6)(a), the amount of tax credit
690     that has been assigned; and
691          (c) an aggregate list of the tax credit amount assigned related to a qualified
692     development demonstrating that the aggregate annual amount of the tax credits assigned does
693     not exceed the aggregate annual tax credit awarded in the allocation certificate.
694          (7) The Utah Housing Corporation shall provide a special low-income housing tax
695     credit certificate to a qualified taxpayer if:
696          (a) a designated reporter has provided the information regarding the qualified taxpayer
697     as described in Subsection (6); and
698          (b) the Utah Housing Corporation has verified that the aggregate tax credit amount
699     assigned with respect to a qualified development does not exceed the total tax credit awarded
700     in the allocation certificate.
701          (8) (a) All elections made by a housing sponsor pursuant to Section 42, Internal
702     Revenue Code, shall apply to this section.
703          (b) (i) If a qualified development is required to recapture a portion of any federal
704     low-income housing tax credit, then each qualified taxpayer shall also be required to recapture
705     a portion of any state tax credits authorized by this section.
706          (ii) The state recapture amount shall be equal to the percentage of the state tax credit
707     that equals the proportion the federal recapture amount bears to the original federal low-income
708     housing tax credit amount subject to recapture.
709          (iii) The designated reporter shall identify each qualified taxpayer that is required to

710     recapture a portion of any state tax credit as described in this Subsection (8)(b).
711          (9) (a) Any tax credits returned to the Utah Housing Corporation in any year may be
712     reallocated within the same time period as provided in Section 42, Internal Revenue Code.
713          (b) Tax credits that are unallocated by the Utah Housing Corporation in any year may
714     be carried over for allocation in subsequent years.
715          (10) (a) If a tax credit is not claimed by a qualified taxpayer in the year in which it is
716     earned because the tax credit is more than the tax owed by the qualified taxpayer, the tax credit
717     may be carried back three years or may be carried forward five years as a credit against the tax.
718          (b) Carryover tax credits under Subsection (10)(a) shall be applied against the tax:
719          (i) before the application of the tax credits earned in the current year; and
720          (ii) on a first-earned first-used basis.
721          (11) A qualified taxpayer may assign a tax credit certificate under this section to
722     another person and:
723          (a) if the other person files a return under this chapter, the other person may claim the
724     tax credit as if the other person had met the requirements of this section to claim the tax credit;
725     or
726          (b) if the other person files a return under Chapter 10, Individual Income Tax Act, the
727     other person may claim the tax credit under Section 59-10-1010 as if the other person had met
728     the requirements of Section 59-10-1010 to claim the tax credit.
729          [(11)] (12) Any tax credit taken in this section may be subject to an annual audit by the
730     commission.
731          [(12)] (13) The Utah Housing Corporation shall annually provide an electronic report
732     to the Revenue and Taxation Interim Committee which shall include at least:
733          (a) the purpose and effectiveness of the tax credits; and
734          (b) the benefits of the tax credits to the state.
735          [(13)] (14) The commission may, in consultation with the Utah Housing Corporation,
736     make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to
737     implement this section.
738          Section 8. Section 59-10-1010 is amended to read:
739          59-10-1010. Utah low-income housing tax credit.
740          (1) As used in this section:

741          (a) "Allocation certificate" means a certificate in a form prescribed by the commission
742     and issued by the Utah Housing Corporation to a housing sponsor that specifies the aggregate
743     amount of the tax credit awarded under this section to a qualified development and includes:
744          (i) the aggregate annual amount of the tax credit awarded that may be claimed by one
745     or more qualified taxpayers that have been issued a special low-income housing tax credit
746     certificate; and
747          (ii) the credit period over which the tax credit may be claimed by one or more qualified
748     taxpayers that have been issued a special low-income housing tax credit certificate.
749          (b) "Building" means a qualified low-income building as defined in Section 42(c),
750     Internal Revenue Code.
751          (c) "Credit period" means the "credit period" as defined in Section 42(f)(1), Internal
752     Revenue Code.
753          (d) (i) "Designated reporter" means, as selected by a housing sponsor, the housing
754     sponsor itself or one of the housing sponsor's direct or indirect partners, members, or
755     shareholders that will provide information to the Utah Housing Corporation regarding the
756     assignment of tax credits under this section.
757          (ii) Before the Utah Housing Corporation may issue an allocation certificate to a
758     housing sponsor, a housing sponsor shall provide the identity of the housing sponsor's
759     designated reporter to the Utah Housing Corporation.
760          (iii) Before the Utah Housing Corporation may issue a special low-income housing tax
761     credit certificate to a qualified taxpayer, a designated reporter shall provide the information
762     described in Subsection (6) to the Utah Housing Corporation.
763          (e) "Federal low-income housing credit" means the federal low-income housing credit
764     described in Section 42, Internal Revenue Code.
765          (f) "Housing sponsor" means an entity that owns a qualified development.
766          (g) "Qualified allocation plan" means a qualified allocation plan adopted by the Utah
767     Housing Corporation in accordance with Section 42(m), Internal Revenue Code.
768          (h) "Qualified development" means a "qualified low-income housing project":
769          (i) as defined in Section 42(g)(1), Internal Revenue Code; and
770          (ii) that is located in the state.
771          (i) (i) "Qualified taxpayer" means a claimant, estate, or trust that:

772          (A) owns a direct or indirect interest in a qualified development; and
773          (B) meets the requirements to claim a tax credit under this section.
774          (ii) If a housing sponsor is a partnership, limited liability company, or S corporation, a
775     "qualified taxpayer" may include any partner, member, or shareholder of the housing sponsor
776     as determined by the governing documents of the housing sponsor.
777          (j) (i) "Special low-income housing tax credit certificate" means a certificate:
778          (A) in a form prescribed by the commission;
779          (B) that the Utah Housing Corporation issues to a qualified taxpayer for a taxable year
780     in accordance with this section; and
781          (C) that specifies the amount of the tax credit a qualified taxpayer may claim under this
782     section.
783          (ii) The Utah Housing Corporation may only issue one or more special low-income
784     housing tax credit certificates if the aggregate specified amount on all special low-income
785     housing tax credit certificates issued in relation to a qualified development does not exceed the
786     aggregate amount of tax credit awarded to a qualified development and issued to a housing
787     sponsor in an allocation certificate.
788          (2) (a) For taxable years beginning on or after January 1, 1995, a qualified taxpayer
789     who has been issued a special low-income housing tax credit certificate by the Utah Housing
790     Corporation may claim a nonrefundable tax credit against taxes otherwise due under this
791     chapter.
792          (b) The tax credit shall be in an amount equal to the tax credit amount specified on the
793     special low-income housing tax credit certificate that the Utah Housing Corporation issues to a
794     qualified taxpayer under this section.
795          (c) (i) For a calendar year beginning on or before December 31, 2016, the aggregate
796     annual tax credit that the Utah Housing Corporation may allocate for the credit period
797     described in Section 42(f), Internal Revenue Code, pursuant to this section and Section
798     59-7-607 is an amount equal to the product of:
799          (A) 12.5 cents; and
800          (B) the population of Utah.
801          (ii) For a calendar year beginning on or after January 1, 2017, the aggregate annual tax
802     credit that the Utah Housing Corporation may allocate for the credit period described in

803     Section 42(f), Internal Revenue Code, pursuant to this section and Section 59-7-607 is an
804     amount equal to the product of:
805          (A) 34.5 cents; and
806          (B) the population of Utah.
807          (iii) For purposes of this section, the population of Utah shall be determined in
808     accordance with Section 146(j), Internal Revenue Code.
809          (3) (a) The Utah Housing Corporation shall determine criteria and procedures for
810     allocating the tax credit under this section and Section 59-7-607 and incorporate the criteria
811     and procedures into the Utah Housing Corporation's qualified allocation plan.
812          (b) The Utah Housing Corporation shall create the criteria under Subsection (3)(a)
813     based on:
814          (i) the number of affordable housing units to be created in Utah for low and moderate
815     income persons in a qualified development;
816          (ii) the level of area median income being served by a qualified development;
817          (iii) the need for the tax credit for the economic feasibility of a qualified development;
818     and
819          (iv) the extended period for which a qualified development commits to remain as
820     affordable housing.
821          (4) Any housing sponsor may apply to the Utah Housing Corporation for a tax credit
822     allocation under this section.
823          (5) (a) The Utah Housing Corporation shall determine the amount of the tax credit to
824     allocate to a qualified development in accordance with the qualified allocation plan of the Utah
825     Housing Corporation.
826          (b) (i) The Utah Housing Corporation shall issue an allocation certificate to a housing
827     sponsor as evidence of the allocation.
828          (ii) The allocation certificate under Subsection (5)(b)(i) shall specify the amount of the
829     tax credit allocated to a qualified development as determined by the Utah Housing Corporation.
830          (c) The amount of the tax credit specified in an allocation certificate may not exceed
831     100% of the federal low-income housing credit awarded to a qualified development.
832          (6) Before the Utah Housing Corporation may issue a special low-income housing tax
833     credit certificate, a designated reporter shall provide to the Utah Housing Corporation in a form

834     prescribed by the Utah Housing Corporation:
835          (a) a list of each qualified taxpayer that has been assigned a portion of the tax credit
836     awarded in an allocation certificate;
837          (b) for each qualified taxpayer described in Subsection (6)(a), the amount of tax credit
838     that has been assigned; and
839          (c) an aggregate list of the tax credit amount assigned related to a qualified
840     development demonstrating that the aggregate annual amount of the tax credits assigned does
841     not exceed the aggregate annual tax credit awarded in the allocation certificate.
842          (7) The Utah Housing Corporation shall provide a special low-income housing tax
843     credit certificate to a qualified taxpayer if:
844          (a) a designated reporter has provided the information regarding the qualified taxpayer
845     as described in Subsection (6); and
846          (b) the Utah Housing Corporation has verified that the aggregate tax credit amount
847     assigned with respect to a qualified development does not exceed the total tax credit awarded
848     in the allocation certificate.
849          (8) (a) All elections made by a housing sponsor pursuant to Section 42, Internal
850     Revenue Code, shall apply to this section.
851          (b) (i) If a qualified taxpayer is required to recapture a portion of any federal
852     low-income housing credit, the qualified taxpayer shall also be required to recapture a portion
853     of any state tax credits authorized by this section.
854          (ii) The state recapture amount shall be equal to the percentage of the state tax credit
855     that equals the proportion the federal recapture amount bears to the original federal low-income
856     housing credit amount subject to recapture.
857          (iii) The designated reporter shall identify each qualified taxpayer that is required to
858     recapture a portion of any state tax credits as described in this Subsection (8)(b).
859          (9) (a) Any tax credits returned to the Utah Housing Corporation in any year may be
860     reallocated within the same time period as provided in Section 42, Internal Revenue Code.
861          (b) Tax credits that are unallocated by the Utah Housing Corporation in any year may
862     be carried over for allocation in subsequent years.
863          (10) (a) If a tax credit is not claimed by a qualified taxpayer in the year in which it is
864     earned because the tax credit is more than the tax owed by the qualified taxpayer, the tax credit

865     may be carried back three years or may be carried forward five years as a credit against the tax.
866          (b) Carryover tax credits under Subsection (10)(a) shall be applied against the tax:
867          (i) before the application of the tax credits earned in the current year; and
868          (ii) on a first-earned first-used basis.
869          (11) A qualified taxpayer may assign a tax credit certificate under this section to
870     another person and:
871          (a) if the other person files a return under this chapter, the other person may claim the
872     tax credit as if the other person had met the requirements of this section to claim the tax credit;
873     or
874          (b) if the other person files a return under Chapter 7, Corporate Franchise and Income
875     Taxes, the other person may claim the tax credit under Section 59-7-607 as if the other person
876     had met the requirements of Section 59-7-607 to claim the tax credit.
877          [(11)] (12) Any tax credit taken in this section may be subject to an annual audit by the
878     commission.
879          [(12)] (13) The Utah Housing Corporation shall annually provide an electronic report
880     to the Revenue and Taxation Interim Committee which shall include at least:
881          (a) the purpose and effectiveness of the tax credits; and
882          (b) the benefits of the tax credits to the state.
883          [(13)] (14) The commission may, in consultation with the Utah Housing Corporation,
884     promulgate rules to implement this section.
885          Section 9. Section 67-4a-801 is amended to read:
886          67-4a-801. Deposit of funds by administrator.
887          (1) (a) There is created a private-purpose trust fund entitled the "Unclaimed Property
888     Trust Fund."
889          (b) Except as otherwise provided in this section, the administrator shall deposit all
890     funds received under this chapter, including proceeds from the sale of property under Part 7,
891     Sale of Property by Administrator, in the fund.
892          (c) The fund shall earn interest.
893          (2) The administrator shall:
894          (a) pay any legitimate claims or deductions authorized by this chapter from the fund;
895          (b) before the end of the fiscal year, estimate the amount of money from the fund that

896     will ultimately be needed to be paid to claimants; [and]
897          (c) except as described in Subsection (2)(d), at the end of the fiscal year, transfer any
898     amount of money in excess of that amount to [the Uniform School Fund, except that unclaimed
899     restitution for crime victims shall be transferred to the Crime Victim Reparations Fund.]:
900          (i) the Olene Walker Housing Loan Fund in an amount equal to the lesser of the excess
901     money or $5,000,000; and
902          (ii) the Uniform School Fund for any remaining excess money after $5,000,000 has
903     been provided to the Olene Walker Housing Loan Fund; and
904          (d) transfer excess unclaimed restitution money for crime victims to the Crime Victim
905     Reparations Fund.
906          (3) Before making any transfer [to the Uniform School Fund] of money as described in
907     Subsection (2), the administrator may deduct from the fund:
908          (a) amounts appropriated by the Legislature for administration of this chapter;
909          (b) any costs incurred in connection with the sale of abandoned property;
910          (c) costs of mailing and publication in connection with any abandoned property;
911          (d) reasonable service charges; and
912          (e) costs incurred in examining records of holders of property and in collecting the
913     property from those holders.
914          Section 10. Section 67-4a-803 is amended to read:
915          67-4a-803. Expenses and service charges of administrator.
916          Before making a deposit of funds received under this chapter to the Olene Walker
917     Housing Loan Fund, the Uniform School Fund, or the Crime Victim Reparations Fund, the
918     administrator may deduct:
919          (1) expenses of disposition of property delivered to the administrator under this
920     chapter;
921          (2) costs of mailing and publication in connection with property delivered to the
922     administrator under this chapter;
923          (3) reasonable service charges; and
924          (4) expenses incurred in examining records of or collecting property from a putative
925     holder or holder.
926          Section 11. Appropriation.

927          The following sums of money are appropriated for the fiscal year beginning July 1,
928     2020, and ending June 30, 2021. These are additions to amounts previously appropriated for
929     fiscal year 2021. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
930     Act, the Legislature appropriates the following sums of money from the funds or accounts
931     indicated for the use and support of the government of the state of Utah.
932     ITEM 1
933          To Department of Workforce Services -- Olene Walker Housing Loan Fund
934               From General Fund, One-time
$20,300,000

935               Schedule of Programs:
936               Olene Walker Housing Loan Fund               $20,300,000
937     ITEM 2
938          To Department of Workforce Services -- Olene Walker Housing Loan Fund
939               From General Fund
$10,000,000

940               Schedule of Programs:
941                    Olene Walker Housing Loan Fund     $10,000,000
942          The Legislature intends that:
943          (1) up to $15,000,000 of the appropriation in the first item be used for gap financing of
944     private activity bond financed rental housing;
945          (2) up to $5,000,000 of the appropriation in the first item be used for matching private
946     dollars for site acquisition needs related to transit oriented developments that will include
947     affordable housing;
948          (3) up to $300,000 of the appropriation in the first item be used to assist with
949     pre-development costs for affordable housing projects in rural Utah; and
950          (4) $10,000,000 in the second item be used by the Housing and Community
951     Development Division to partner with one or more housing authorities to provide rental
952     assistance.