2006 Utah Code - 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 Section 9-4-705, as directed by the board;
     (b) establish the criteria with the approval of the board by which loans and grants will be made; 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 moneys contained in the fund according to the procedures, conditions, and restrictions placed upon the use of those moneys by the federal government.
     (3) (a) The executive director shall distribute, as directed by the board, any funds received pursuant to Section 17C-1-412 to pay the costs of providing income targeted housing within the community that created the community development and renewal agency under Title 17C, Limited Purpose Local Government Entities - Community Development and Renewal Agencies.
     (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 executive director shall distribute, as directed by the board, all other moneys from the fund according to the following 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 to the fund by the entity receiving them.
     (i) (A) Of the fund moneys distributed as loans, at least 50% shall be distributed to benefit persons whose annual income is at or below 50% of the median family income for the state.
     (B) The remaining loan moneys shall be distributed to benefit persons whose annual income is at or below 80% of the median family income for the state.
     (ii) The executive director or his designee shall lend moneys in accordance 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 benefit persons 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 executive director 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 of the 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 the procedures and requirements of Title 63, Chapter 46a, Utah Administrative Rulemaking Act; and
     (b) service or contract, pursuant to Title 63, Chapter 56, Utah Procurement Code, for the servicing of loans made by the fund.

Amended by Chapter 359, 2006 General Session