Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 169 Fifth Substitute (2016GS)

Sponsor

Sen. Weiler, T.

Final action

Governor Signed 3/21/2016

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• prohibits a municipality from adopting an ordinance that prohibits a homeless shelter from operating year-round;
• prioritizes certain applications for grants or loans from the Olene Walker Housing Loan Fund;
• modifies the activities for which the executive director of the Department of Workforce Services may distribute money from the Olene Walker Housing Loan Fund;
• addresses how the executive director of the Department of Workforce Services distributes fund money;
• provides a sunset date for certain provisions related to homeless shelters; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

OLENE WALKER HOUSING LOAN FUND AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Todd Weiler
House Sponsor: 
Francis D. Gibson
LONG TITLE
General Description:
This bill modifies provisions relating to the Olene Walker Housing Loan Fund and
other housing issues.
Highlighted Provisions:
This bill:
▸ prohibits a municipality from adopting an ordinance that prohibits a homeless
shelter from operating year-round;
▸ prioritizes certain applications for grants or loans from the Olene Walker Housing
Loan Fund;
▸ modifies the activities for which the executive director of the Department of
Workforce Services may distribute money from the Olene Walker Housing Loan
Fund;
▸ addresses how the executive director of the Department of Workforce Services
distributes fund money;
▸ provides a sunset date for certain provisions related to homeless shelters; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
35A-8-504
, as last amended by Laws of Utah 2012, Chapter 347 and renumbered and
amended by Laws of Utah 2012, Chapter 212
35A-8-505
, as renumbered and amended by Laws of Utah 2012, Chapter 212
35A-8-507
, as renumbered and amended by Laws of Utah 2012, Chapter 212
63I-1-210
, as renumbered and amended by Laws of Utah 2008, Chapter 382
ENACTS:
10-9a-526
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
10-9a-526
 is enacted to read:
 10-9a-526.
Homeless shelters.
(1) As used in this section, "homeless shelter" means a facility that:
(a) is located within a municipality;
(b) provides temporary shelter to homeless families with children;
(c) has capacity to provide temporary shelter to at least 200 individuals per night; and
(d) began operation on or before January 1, 2016.
(2) A municipality may not adopt or enforce an ordinance or other regulation that
prohibits a homeless shelter from operating year-round.
Section 2. Section 
35A-8-504
 is amended to read:
35A-8-504.
Distribution of fund money.
(1) The executive director shall:
(a) make grants and loans from the fund for any of the activities authorized by Section
35A-8-505
, 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 money
contained in the fund according to the procedures, conditions, and restrictions placed upon the
use of the money by the federal government.
(3) (a) The executive director shall distribute, as directed by the board, any funds
received under 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 Act.
(b) As used in Subsection (3)(a):
(i) "Community" [
has the meaning as
] 
means the same as that term is
 defined in
Section 
17C-1-102
.
(ii) "Income targeted housing" [
has the meaning as
] 
 means the same as that term is
defined in Section 
17C-1-102
.
(4) Except for federal money and money received under Section 
17C-1-412
, the
executive director shall distribute, as directed by the board, money [
from
] 
in
 the fund according
to the following requirements:
[
(a) Not less than 30% of all fund money shall be distributed to rural areas of the
state.
]
[
(b) At least 50% of the money in the fund shall be distributed as loans to be repaid to
the fund by the entity receiving them.
]
[
(i) (A) Of the fund money 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 money 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 the executive director's designee shall lend money in
accordance with this Subsection (4) at a rate based upon the borrower's ability to pay.
]
[
(c) Any fund money not distributed as loans shall be distributed as grants.
]
[
(i) At least 90% of the fund money 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 money 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.
]
(a) the executive director shall distribute at least 30% of the money in the fund to rural
areas of the state;
(b) the executive director shall distribute at least 70% of the money in the fund to
benefit persons whose annual income is at or below 50% of the median family income for the
state;
(c) the executive director may not use more than 3% of the revenues of the fund to
offset department or board administrative expenses;
(d) the executive director shall distribute any remaining money in the fund to benefit
persons whose annual income is at or below 80% of the median family income for the state;
and
(e) if the executive director or the executive director's designee makes a loan in
accordance with this section, the interest rate of the loan shall be based on the borrower's
ability to pay.
(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 63G, Chapter 3, Utah Administrative Rulemaking Act;
and
(b) service or contract, under Title 63G, Chapter 6a, Utah Procurement Code, for the
servicing of loans made by the fund.
Section 3. Section 
35A-8-505
 is amended to read:
35A-8-505.
Activities authorized to receive fund money -- Powers of the executive
director.
At the direction of the board, the executive director may:
(1) provide fund money to any of the following activities:
(a) 
the
 acquisition, rehabilitation, or new construction of low-income housing units;
(b) matching funds for social services projects directly related to providing housing for
special-need renters in assisted projects;
(c) the development and construction of accessible housing designed for low-income
persons;
[
(d) shelters and transitional housing for the homeless; and
]
(d) the construction or improvement of a shelter or transitional housing facility that
provides services intended to prevent or minimize homelessness among members of a specific
homeless subpopulation; and
(e) other activities that will assist in 
minimizing homelessness or
 improving the
availability or quality of housing in the state for low-income persons;
(2) do any act necessary or convenient to the exercise of the powers granted by this part
or reasonably implied from those granted powers, including:
(a) making or executing contracts and other instruments necessary or convenient for
the performance of the executive director and board's duties and the exercise of the executive
director and board's powers and functions under this part, including contracts or agreements for
the servicing and originating of mortgage loans;
(b) procuring insurance against a loss in connection with property or other assets held
by the fund, including mortgage loans, in amounts and from insurers it considers desirable;
(c) entering into agreements with a department, agency, or instrumentality of the
United States or this state and with mortgagors and mortgage lenders for the purpose of
planning and regulating and providing for the financing and refinancing, purchase,
construction, reconstruction, rehabilitation, leasing, management, maintenance, operation, sale,
or other disposition of residential housing undertaken with the assistance of the department
under this part;
(d) proceeding with a foreclosure action, to own, lease, clear, reconstruct, rehabilitate,
repair, maintain, manage, operate, assign, encumber, sell, or otherwise dispose of real or
personal property obtained by the fund due to the default on a mortgage loan held by the fund
in preparation for disposition of the property, taking assignments of leases and rentals,
proceeding with foreclosure actions, and taking other actions necessary or incidental to the
performance of its duties; and
(e) selling, at a public or private sale, with public bidding, a mortgage or other
obligation held by the fund.
Section 4. Section 
35A-8-507
 is amended to read:
35A-8-507.
Application process and priorities.
(1) (a) In each calendar year that money is available from the fund for distribution by
the executive director under the direction of the board, the executive director shall, at least
once in that year, announce a grant and loan application period by sending notice to interested
persons.
(b) The executive director shall accept applications that are received in a timely
manner.
(2) The executive director shall give [
first
] priority to applications for projects and
activities 
in the following order:
(a) first, to applications for projects and activities intended to minimize homelessness;
(b) second, to applications for projects and activities
 that use existing privately owned
housing stock, including privately owned housing stock purchased by 
a
 nonprofit public
development [
authorities.
] 
authority; and
(c) third, to all other applications.
(3) [
The
] 
Within each level of priority described in Subsection (2), the
 executive
director shall give preference to applications that demonstrate the following:
(a) a high degree of leverage with other sources of financing;
(b) high recipient contributions to total project costs, including allied contributions
from other sources such as professional, craft, and trade services and lender interest rate
subsidies;
(c) high local government project contributions in the form of infrastructure
improvements, or other assistance;
(d) projects that encourage ownership, management, and other project-related
responsibility opportunities;
(e) projects that demonstrate a strong probability of serving the original target group or
income level for a period of at least 15 years;
(f) projects where the applicant has demonstrated the ability, stability, and resources to
complete the project;
(g) projects that appear to serve the greatest need;
(h) projects that provide housing for persons and families with the lowest income;
(i) projects that promote economic development benefits;
(j) projects that [
allow integration into a local government housing plan
] 
align with a
local government plan to address housing and homeless services
; and
(k) projects that would mitigate or correct existing health, safety, or welfare problems.
(4) The executive director may give consideration to projects that increase the supply
of accessible housing.
Section 5. Section 
63I-1-210
 is amended to read:
63I-1-210.
Repeal dates, Title 10.
 Section 
10-9a-526
 is repealed December 31, 2020. 
Section 6. 
Effective date.
If approved by two-thirds of all the members elected to each house, this bill takes effect
upon approval by the governor, or the day following the constitutional time limit of Utah
Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
the date of veto override.