2023 Utah Code › Title 17C - Limited Purpose Local Government Entities - Community Reinvestment Agency Act › Chapter 1 - Agency Operations › Part 4 - Project Area Funds › Section 412 - Use of housing allocation -- Separate accounting required -- Issuance of bonds for housing -- Action to compel agency to provide housing allocation.

Effective 5/3/2023
17C-1-412.
Use of housing allocation -- Separate accounting required -- Issuance of bonds for housing -- Action to compel agency to provide housing allocation.
(1)
(a) An agency shall use the agency's housing allocation to:
(i) pay part or all of the cost of land or construction of income targeted housing within the boundary of the agency, if practicable in a mixed income development or area;
(ii) pay part or all of the cost of rehabilitation of income targeted housing within the boundary of the agency;
(iii) lend, grant, or contribute money to a person, public entity, housing authority, private entity or business, or nonprofit corporation for income targeted housing within the boundary of the agency;
(iv) plan or otherwise promote income targeted housing within the boundary of the agency;
(v) pay part or all of the cost of land or installation, construction, or rehabilitation of any building, facility, structure, or other housing improvement, including infrastructure improvements, related to housing located in a project area where a board has determined that a development impediment exists;
(vi) replace housing units lost as a result of the project area development;
(vii) make payments on or establish a reserve fund for bonds:
(A) issued by the agency, the community, or the housing authority that provides income targeted housing within the community; and
(B) all or part of the proceeds of which are used within the community for the purposes stated in Subsection (1)(a)(i), (ii), (iii), (iv), (v), or (vi);
(viii) if the community's fair share ratio at the time of the first adoption of the project area budget is at least 1.1 to 1.0, make payments on bonds:
(A) that were previously issued by the agency, the community, or the housing authority that provides income targeted housing within the community; and
(B) all or part of the proceeds of which were used within the community for the purposes stated in Subsection (1)(a)(i), (ii), (iii), (iv), (v), or (vi);
(ix) relocate mobile home park residents displaced by project area development;
(x) subject to Subsection (7), transfer funds to a community that created the agency; or
(xi) pay for or make a contribution toward the acquisition, construction, or rehabilitation of housing that:
(A) is located in the same county as the agency;
(B) is owned in whole or in part by, or is dedicated to supporting, a public nonprofit college or university; and
(C) only students of the relevant college or university, including the students' immediate families, occupy.
(b) As an alternative to the requirements of Subsection (1)(a), an agency may pay all or any portion of the agency's housing allocation to:
(i) the community for use as described in Subsection (1)(a);
(ii) a housing authority that provides income targeted housing within the community for use in providing income targeted housing within the community;
(iii) a housing authority established by the county in which the agency is located for providing:
(A) income targeted housing within the county;
(B) permanent housing, permanent supportive housing, or a transitional facility, as defined in Section 35A-5-302, within the county; or
(C) homeless assistance within the county;
(iv) the Olene Walker Housing Loan Fund, established under Title 35A, Chapter 8, Part 5, Olene Walker Housing Loan Fund, for use in providing income targeted housing within the community;
(v) pay for or make a contribution toward the acquisition, construction, or rehabilitation of income targeted housing that is outside of the community if the housing is located along or near a major transit investment corridor that services the community and the related project has been approved by the community in which the housing is or will be located; or
(vi) pay for or make a contribution toward the expansion of child care facilities within the boundary of the agency, provided that any recipient of funds from the agency's housing allocation reports annually to the agency on how the funds were used.
(2)
(a) An agency may combine all or any portion of the agency's housing allocation with all or any portion of one or more additional agency's housing allocations if the agencies execute an interlocal agreement in accordance with Title 11, Chapter 13, Interlocal Cooperation Act.
(b) An agency that has entered into an interlocal agreement as described in Subsection (2)(a), meets the requirements of Subsection (1)(a) or (1)(b) if the use of the housing allocation meets the requirements for at least one agency that is a party to the interlocal agreement.
(3) The agency shall create a housing fund and separately account for the agency's housing allocation, together with all interest earned by the housing allocation and all payments or repayments for loans, advances, or grants from the housing allocation.
(4) An agency may:
(a) issue bonds to finance a housing-related project under this section, including the payment of principal and interest upon advances for surveys and plans or preliminary loans; and
(b) issue refunding bonds for the payment or retirement of bonds under Subsection (4)(a) previously issued by the agency.
(5)
(a) Except as provided in Subsection (5)(b), an agency shall allocate money to the housing fund each year in which the agency receives sufficient tax increment to make a housing allocation required by the project area budget.
(b) Subsection (5)(a) does not apply in a year in which tax increment is insufficient.
(6)
(a) Except as provided in Subsection (5)(b), if an agency fails to provide a housing allocation in accordance with the project area budget and the housing plan adopted under Subsection 17C-2-204(2), the loan fund board may bring legal action to compel the agency to provide the housing allocation.
(b) In an action under Subsection (6)(a), the court:
(i) shall award the loan fund board reasonable attorney fees, unless the court finds that the action was frivolous; and
(ii) may not award the agency the agency's attorney fees, unless the court finds that the action was frivolous.
(7) For the purpose of offsetting the community's annual local contribution to the Homeless Shelter Cities Mitigation Restricted Account, the total amount an agency transfers in a calendar year to a community under Subsections (1)(a)(x), 17C-1-409(1)(a)(v), and 17C-1-411(1)(d) may not exceed the community's annual local contribution as defined in Subsection 59-12-205(4).
Amended by Chapter 471, 2023 General Session
Amended by Chapter 492, 2023 General Session