7 LONG TITLE
8 General Description:
9 This bill amends provisions relating to the Utah Housing Corporation.
10 Highlighted Provisions:
11 This bill:
12 ▸ requires the Utah Housing Corporation to allow for the permanent increase of a
13 monthly rental fee or income limit for a unit under a federal low-income housing
14 program in certain circumstances; and
15 ▸ makes technical and conforming changes.
16 Money Appropriated in this Bill:
18 Other Special Clauses:
20 Utah Code Sections Affected:
22 63H-8-410, as renumbered and amended by Laws of Utah 2015, Chapter 226
24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 63H-8-410 is amended to read:
26 63H-8-410. Low-income housing tax credits.
27 (1) The corporation is designated the "Housing Credit Agency" for the state within the
28 meaning of 26 U.S.C. Sec. 42(h) and for the purposes of carrying out 26 U.S.C. Sec. 42 and
29 regulations promulgated under that section.
30 (2) The entire state housing credit ceiling for each calendar year is allocated to the
32 (3) The allocation of the state housing credit ceiling shall be made under the state's
33 qualified allocation plan within the meaning of 26 U.S.C. Sec. 42(m), as amended, and as
34 provided in Subsection (4).
35 (4) The corporation may amend the state's qualified allocation plan as necessary to
36 comply with revisions to the low-income housing tax credit program under 26 U.S.C. Sec. 42,
37 or as may be necessary to further the goals and purposes of the low-income housing tax credit
38 program for the state.
39 (5) The corporation, or a subsidiary of the corporation, may have a direct or indirect
40 ownership interest in, and may materially participate in the operation and management of, a
41 housing development or program that has received an allocation of the state housing credit
43 (6) (a) As used in this Subsection (6):
44 (i) "Extended use period" means the same as that term is defined in 26 U.S.C. Sec.
46 (ii) "Land use restriction agreement" means the same as the term "extended
47 low-income housing commitment" is defined in 26 U.S.C. Sec. 42(g)(6)(B).
48 (iii) "Property condition report" means an evaluation of the physical condition of a
49 building that identifies any capital repairs that the building currently needs and will need for
50 the following 15 years.
51 (iv) "Qualified nonprofit organization" means the same as that term is defined in 26
52 U.S.C. 42(h)(5)(C).
53 (v) "Unit" means the same as the term "low-income unit" is defined in 26 U.S.C. Sec.
55 (b) When the corporation has a land use restriction agreement with a person under the
56 low-income housing tax credit program described in 26 U.S.C. Sec. 42, the corporation shall
57 allow the person to permanently increase the monthly rental fee or income limit for a unit
58 described in the land use restriction agreement if:
59 (i) the person is a qualified nonprofit organization;
60 (ii) the increase would only occur during the extended use period of the land use
61 restriction agreement;
62 (iii) the increase complies with the income limitations described in 26 U.S.C. Sec.
64 (iv) the increase would only occur after the termination of tenancy for the unit;
65 (v) the person submits documentation demonstrating that the increase of the monthly
66 rental fee or income limit is needed to cover capital repairs for the building in which the unit is
67 located, including:
68 (A) a property condition report that complies with industry standards;
69 (B) an appraisal that complies with industry standards and contains information on the
70 average expenses for the capital repairs identified in the property condition report;
71 (C) the financial operating history of the building for the past 24 months; and
72 (D) documentation that the increase in the monthly rental fee or income limit would
73 sufficiently cover the current operating expenses for the building and the average expenses of
74 the capital repairs described in Subsection (6)(b)(v)(B).
75 (c) If a person is granted a permanent increase in the monthly rental fee or income limit
76 for a unit as described in Subsection (6)(b), and the money obtained from the increase in the
77 monthly rental fee or income limit exceeds the operating and capital repair expenses for the
78 building in which the unit is located, the excess money shall be placed in an account to
79 subsidize rent for any tenant occupying the unit.