§ 54-17-40 — Housing incentive fund - Continuing appropriation - Report to budget section

section.
1. The housing incentive fund is a special fund in the state treasury administered by the
housing finance agency. Moneys in the fund are appropriated to the housing finance
agency on a continuing basis for assistance under subsection 3. Moneys in the fund
may be transferred to the housing finance agency's operating fund for administrative
expenses, which are subject to legislative appropriation.
2. a. After a public hearing, the housing finance agency shall create an annual
allocation plan for the distribution of the fund as authorized under subsection 3.

b. The annual allocation plan must give priority to provide housing for individuals
and families of low or moderate income. For purposes of this priority, eligible
income limits are determined as a percentage of median family income as
published in the most recent federal register notice. Under this priority, the annual
allocation plan must give preference to projects that benefit households with the
lowest income and to projects that have rent restrictions at or below department
of housing and urban development published federal fair market rents or
department of housing and urban development section 8 payment standards.
c. At least ten percent of the fund must be used to assist developing communities to
address an unmet housing need or alleviate a housing shortage.
3. The housing finance agency shall adopt guidelines for the fund so as to address
unmet housing needs in this state. Assistance from the fund may be used solely for:
a. New construction, rehabilitation, preservation, or acquisition of a multifamily
housing project;
b. New construction, rehabilitation, preservation, or acquisition of a single-family
housing project in a developing community or a community land trust project;
c. Gap assistance, matching funds, and accessibility improvements;
d. Assistance that does not exceed the amount necessary to qualify for a loan using
underwriting standards acceptable for secondary market financing or to make the
project feasible; and
e. Rental assistance, emergency assistance, barrier mitigation, or services
designated to prevent or end homelessness.
4. Eligible recipients include units of local, state, and tribal government; local and tribal
housing authorities; community action agencies; regional planning councils; and
nonprofit organizations and for-profit developers of residential housing. Individuals
may not receive direct assistance from the fund.
5. Except for subdivision d of subsection 3, assistance is subject to repayment or
recapture under the guidelines adopted by the housing finance agency. Any assistance
that is repaid or recaptured must be deposited in the fund and is appropriated on a
continuing basis for the purposes of this section.
6. The agency may collect a reasonable administrative fee from the fund, project
developers, applicants, or grant recipients. The origination fee assessed to grant
recipients may not exceed five percent of the project award.
7. Upon request, the housing finance agency shall report to the industrial commission
regarding the activities of the housing incentive fund.
8. At least once per biennium, the housing finance agency shall provide a report to the
budget section of the legislative management regarding the activities of the housing
incentive fund.