9-4-704 - Distribution of fund moneys.
9-4-704. Distribution of fund moneys.
(1) The executive director shall:
(a) make grants and loans from the fund for any of the activities authorized by Section9-4-705, as directed by the board;
(b) establish the criteria with the approval of the board by which loans and grants will bemade; and
(c) determine with the approval of the board the order in which projects will be funded.
(2) The executive director shall distribute, as directed by the board, any federal moneyscontained in the fund according to the procedures, conditions, and restrictions placed upon theuse of those moneys by the federal government.
(3) (a) The executive director shall distribute, as directed by the board, any fundsreceived pursuant to Section 17C-1-412 to pay the costs of providing income targeted housingwithin the community that created the community development and renewal agency under Title17C, Limited Purpose Local Government Entities - Community Development and RenewalAgencies Act.
(b) As used in Subsection (3)(a):
(i) "Community" has the meaning as defined in Section 17C-1-102.
(ii) "Income targeted housing" has the meaning as defined in Section 17C-1-102.
(4) Except federal money and money received under Section 17C-1-412, the executivedirector shall distribute, as directed by the board, all other moneys from the fund according to thefollowing requirements:
(a) Not less than 30% of all fund moneys shall be distributed to rural areas of the state.
(b) At least 50% of the moneys in the fund shall be distributed as loans to be repaid tothe fund by the entity receiving them.
(i) (A) Of the fund moneys distributed as loans, at least 50% shall be distributed tobenefit persons whose annual income is at or below 50% of the median family income for thestate.
(B) The remaining loan moneys shall be distributed to benefit persons whose annualincome is at or below 80% of the median family income for the state.
(ii) The executive director or the executive director's designee shall lend moneys inaccordance with this Subsection (4) at a rate based upon the borrower's ability to pay.
(c) Any fund moneys not distributed as loans shall be distributed as grants.
(i) At least 90% of the fund moneys distributed as grants shall be distributed to benefitpersons whose annual income is at or below 50% of the median family income for the state.
(ii) The remaining fund moneys distributed as grants may be used by the executivedirector to obtain federal matching funds or for other uses consistent with the intent of this part,including the payment of reasonable loan servicing costs, but no more than 3% of the revenues ofthe fund may be used to offset other department or board administrative expenses.
(5) The executive director may with the approval of the board:
(a) enact rules to establish procedures for the grant and loan process by following theprocedures and requirements of Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
(b) service or contract, pursuant to Title 63G, Chapter 6, Utah Procurement Code, for theservicing of loans made by the fund.
Amended by Chapter 279, 2010 General Session