1     
RENT AND MORTGAGE ASSISTANCE AMENDMENTS

2     
2020 FIFTH SPECIAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Lincoln Fillmore

5     
House Sponsor: Mike Schultz

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to residential housing assistance and commercial
10     rental assistance.
11     Highlighted Provisions:
12          This bill:
13          ▸     modifies the date when the Housing and Community Development Division may
14     provide certain residential housing assistance for state residents financially harmed
15     as a result of the COVID-19 pandemic;
16          ▸     modifies provisions of the COVID-19 Commercial Rental Assistance Program
17     administered by the Governor's Office of Economic Development, including:
18               •     modifying definitions; and
19               •     modifying the requirements to receive assistance under the program and the
20     amounts of rental assistance that may be provided; and
21          ▸     makes technical changes.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          This bill provides a special effective date.
26     Utah Code Sections Affected:
27     AMENDS:
28          35A-8-2302 (Repealed 05/31/21), as enacted by Laws of Utah 2020, Third Special
29     Session, Chapter 11
30          63N-14-102 (Repealed 05/31/21), as enacted by Laws of Utah 2020, Third Special
31     Session, Chapter 11
32          63N-14-201 (Repealed 05/31/21), as enacted by Laws of Utah 2020, Third Special
33     Session, Chapter 11
34     

35     Be it enacted by the Legislature of the state of Utah:
36          Section 1. Section 35A-8-2302 (Repealed 05/31/21) is amended to read:
37          35A-8-2302 (Repealed 05/31/21). COVID-19 residential housing assistance --
38     Rulemaking.
39          (1) [Beginning August 1, 2020, the] The division shall assist qualifying state residents
40     financially harmed on or after March 1, 2020, but on or before December 30, 2020, by
41     COVID-19 to retain or obtain housing:
42          (a) through a new or existing housing-related program or service; and
43          (b) using funds:
44          (i) the state receives from the Coronavirus Relief Fund described in the Coronavirus
45     Aid, Relief, and Economic Security Act, Pub. L. 116-136;
46          (ii) the Legislature appropriates; and
47          (iii) in a total amount not to exceed $20,000,000.
48          (2) The division shall make rules in accordance with Title 63G, Chapter 3, Utah
49     Administrative Rulemaking Act, for any [new] program or service the division establishes or
50     modifies to carry out the provisions of this part, including rules related to the application
51     process and requirements for a state resident to qualify for assistance under this part.
52          Section 2. Section 63N-14-102 (Repealed 05/31/21) is amended to read:
53          63N-14-102 (Repealed 05/31/21). Definitions.
54          As used in this chapter:
55          (1) "Business entity" means a business that:
56          (a) employs fewer than the equivalent of 100 full-time employees;
57          (b) has the business's principal place of business in this state; and
58          [(c) was in operation on February 15, 2020; and]
59          [(d)] (c) (i) is properly registered with the Division of Corporations and Commercial
60     Code;
61          (ii) is tax exempt under Section 501(c)(3) or (19) of the Internal Revenue Code;
62          (iii) is a Tribal business concern described in 15 U.S.C. Sec. 657a (b)(2)(C); or
63          (iv) is an individual who:
64          (A) operates under a sole proprietorship;
65          (B) operates as an independent contractor; or
66          (C) is self-employed.
67          (2) "CARES Act" means the Coronavirus Aid, Relief, and Economic Security Act,
68     Pub. L. 116-136.
69          (3) "COVID-19" means:
70          (a) severe acute respiratory syndrome coronavirus 2; or
71          (b) the disease caused by severe acute respiratory syndrome coronavirus 2.
72          (4) "Program" means the COVID-19 Commercial Rental Assistance Program
73     established in Section 63N-14-201.
74          (5) "Qualified business entity" means a business entity that:
75          (a) is a lessee of commercial property in the state for the purpose of conducting the
76     business entity's business on the property;
77          (b) demonstrates to the office that the business entity lost at least [50%] 30% of the
78     business entity's monthly gross revenue:
79          (i) for a four-week period:
80          (A) beginning on or after March 1, 2020; and
81          (B) ending on or before December 30, 2020; and
82          (ii) as a result of federal, state, or local public health measures taken to minimize the
83     public's exposure to COVID-19; and
84          (c) does not receive funds from the COVID-19 Agricultural Operations Grant Program
85     established in Section 4-18-106.1.
86          (6) (a) "Rent" means the amount under a rental agreement that a business entity owes a
87     lessor for the right to occupy commercial property.
88          (b) "Rent" does not include a charge or fee for a utility the lessor furnishes in
89     accordance with a rental agreement.
90          Section 3. Section 63N-14-201 (Repealed 05/31/21) is amended to read:
91          63N-14-201 (Repealed 05/31/21). Creation of the COVID-19 Commercial Rental
92     Assistance Program.
93          (1) The office shall establish and administer a COVID-19 Commercial Rental
94     Assistance Program in accordance with this chapter.
95          (2) In administering the program, the office:
96          (a) shall accept applications beginning on or after May 11, 2020, for commercial rental
97     assistance;
98          (b) shall determine whether an applicant for commercial rental assistance is a qualified
99     business entity; and
100          [(c) subject to Subsection (3), may grant a single month of rental assistance to an
101     applicant that is a qualified business entity, in an amount not to exceed the lesser of:]
102          [(i) $10,000; or]
103          [(ii) (A) if the qualified business entity demonstrates a monthly gross revenue loss of
104     50% or greater, but less than 71%, an amount equal to 50% of the qualified business entity's
105     monthly rent; or]
106          [(B) if the qualified business entity demonstrates a monthly gross revenue loss of 71%
107     or greater, an amount equal to 100% of the qualified business entity's monthly rent.]
108          [(3) (a) Upon application, a business entity shall disclose whether the business entity
109     has received or applied for funds from the Paycheck Protection Program described in the
110     CARES Act.]
111          [(b) A qualified business entity that receives funds between February 15, 2020, and
112     June 30, 2020, from the Paycheck Protection Program described in the CARES Act, is only
113     eligible under this chapter to receive a single month of rental assistance, in an amount not to
114     exceed the lesser of:]
115          [(i) $5,000; or]
116          [(ii) (A) if the qualified business entity demonstrates a monthly gross revenue loss of
117     50% or greater, but less than 71%, an amount equal to 25% of the qualified business entity's
118     monthly rent; or]
119          [(B) if the qualified business entity demonstrates a monthly gross revenue loss of 71%
120     or greater, an amount equal to 50% of the qualified business entity's monthly rent.]
121          [(c) A qualified business entity described in Subsection (3)(b) that receives more than
122     the amount for which the qualified business entity is eligible under Subsection (3)(b) shall
123     return to the office any funds for which the qualified business entity is not eligible.]
124          (c) subject to Subsection (3), may grant up to two months of rental assistance per
125     location for an applicant that is a qualified business entity in the following amounts:
126          (i) if the qualified business entity demonstrates a monthly gross revenue loss of 30% or
127     greater, but less than 45%, an amount equal to 50% of the qualified business entity's monthly
128     rent; or
129          (ii) if the qualified business entity demonstrates a monthly gross revenue loss of 45%
130     or greater, an amount equal to 100% of the qualified business entity's monthly rent.
131          (3) Notwithstanding the amounts described in Subsection (2)(c), the total maximum
132     amount of rental assistance that may be provided for rental assistance under the program may
133     be no more than:
134          (a) $15,000 for a qualified business entity with one location; or
135          (b) $30,000 for a qualified business entity with more than one location, with no more
136     than $5,000 awarded per month for any one location.
137          (4) To demonstrate gross revenue loss, a business entity shall submit to the office:
138          (a) [an affidavit] a signed attestation that the business entity has lost at least [50%]
139     30% of the business entity's monthly gross revenue as a result of federal, state, or local public
140     health measures taken to minimize the public's exposure to COVID-19; and
141          [(b) the business entity's two most recent state or federal tax returns;]
142          [(c) revenue reports for 2019 and the four months immediately preceding the day on
143     which the business entity submits an application under the program; and]
144          [(d) anything else the office requires.]
145          (b) any additional information or documentation required by the office as determined
146     by the office.
147          (5) The office shall provide rental assistance in accordance with this chapter using
148     funds:
149          (a) the state receives from the Coronavirus Relief Fund described in the CARES Act;
150          (b) the Legislature appropriates; and
151          (c) in a total amount not to exceed $40,000,000.
152          Section 4. Effective date.
153          If approved by two-thirds of all the members elected to each house, this bill takes effect
154     upon approval by the governor, or the day following the constitutional time limit of Utah
155     Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
156     the date of veto override.