The State's Community Development Division received $4,154,000 in June this year from this federally-funded housing initiative. Money is available on a loan basis, though terms and conditions can vary to insure that very low income persons will be served: variations in loans can include zero interest loans and deferred payment loans if justified by the project cash flow. The Division will fund only projects that benefit low-and very-low income persons. No project will be funded which, in the opinion of the reviewers, unduly enriches the applicant.

This program's objective is to provide eligible persons living in rural areas with an opportunity to obtain adequate but modest, decent, safe, and sanitary dwellings and related facilities. Loans are available to qualified applicants to buy, build, rehabilitate, improve or relocate a dwelling and provide related facilities for use by the applicant as a permanent residence, and for a farm owner to provide housing for farm managers, tenants, sharecroppers and farm laborers. Monies may also be used to purchase sites, pay reasonable acquisition costs, provide adequate and safe water supply and/or sewage disposal facility, provide site preparation, purchase and install essential equipment in the dwelling. Contact Rural Development at (801) 520-4325 for more information.

The purpose of this program is to assist eligible very low-income owner-occupants of single-family dwellings in rural areas, who lack repayment ability, to obtain loans to repair or improve their dwellings. Those repairs will result in the removal of most health or safety hazards, thereby making the dwellings safer and more sanitary for the occupants, their families, and the community. Authorized loan and grant purposes include but are not limited to: installation and/or repair of sanitary water and waste disposal systems, together with related plumbing and fixtures; payment of reasonable connection fees for utilities which are required to be paid by the applicant and which cannot be paid from other funds; energy conservation measures; repair or replacement of heating systems; electrical wiring; repair or provision of structural supports, roofs, siding, and other necessary repairs when it is clearly necessary to remove health hazards to the occupants. Maximum grants are $5,000 and maximum loan and grant combination is $7,500. Only applicants 62 years of age and older are eligible for grants. Contact Rural Development at (801) 520-4325.

The objective of this program is to provide eligible occupants economically designed and constructed rental housing and related facilities suited to their living requirements. The purposes of the loan are to construct new housing; purchase existing buildings only when major rehabilitation is necessary; purchase and improve the necessary land on which the housing will be located; develop and install water supply, sewage disposal, streets, heating, cooling and lighting systems necessary in connection with the housing; develop other related facilities; construct office and living quarters for the resident manager and other operating personnel; construct fallout shelters or similar structures and other related costs. Contact Rural Development at (801) 520-4325 for more information.

The state received an allocation of $540,000 from the Stewart B. McKinney Act for FY 2004. This money can be used to lease, rehabilitate, or provide staff support for shelter but may not be used for land purchase or new construction.

Local city and county housing authorities administer the HUD Section 8 Existing Housing Voucher and Certificate Programs. The program provides rent subsidies for low-income persons which are paid directly to a qualified landlord. Assistance is provided to low-income persons who have to pay large portions of their income for rent and utilities.

For FY 2004, the Utah State Legislature appropriated $564,100 for this program. These funds provide grants generally from $5,000 to $25,000. Primarily used for "brick and mortar", there is limited use of these funds for staffing expenses . In early spring, the Division of Community Development sends out a "Request for Proposals" to a comprehensive mailing list with application deadlines set for April or May. Funding decisions are made in May or June with funds being made available on July 1. Eligible projects include housing rehabilitation, housing for minorities, physically/mentally disabled, chronically mentally ill, mentally retarded, farm workers, the elderly, housing for the homeless, technical assistance in rural areas to better utilize federal housing opportunities, and innovative housing techniques.

Private non-profits and the associations of governments for a number of years have operated this program. Weatherization services and repairs are provided for dwellings that house low/moderate income families.

Tax check-off funds ear-marked for the homeless totaled approximately $1.2 million in FY 2001. Their monies fund a variety of homeless and transitional housing across the state, with a statutory mandate that 20% must go to rural areas.

Funds are available for rehabilitation of existing dwellings to fix code deficiencies. All applications are generated at the local level of government, i.e. association of governments, or local housing authorities. There is a local loan review committee in each locality that reviews the applications before they are sent to the Sate for final approval. There are not any grants available with this funding source. Every project is a loan. The maximum limit is $35,000.00.

K. OLENE WALKER HOUSING TRUST FUND

Olene Walker Housing Trust Fund is funded primarily through loans made with federal funds including the Housing Preservation Grant and HOME programs. Because most assets in the fund came from federal programs, the income generated has federal restrictions. Money in this fund is targeted to acquisition, rehabilitation, and new construction of single family and multi-family housing, as well as serving special needs: the fund owns several homeless shelters, several single family homes for the homeless, and four units for the chronically mentally ill.

Besides federal funds, the Olene Walker Housing Trust Fund includes appropriations from the Utah State Legislature. $2,236,400 was appropriated for FY 2004. These funds, with the revenues from past appropriations, give the Trust Fund the ability to make loans from non-federal resources. These loans are primarily for multifamily housing developments in conjunction with state and federal Low Income Housing Tax Credits where the use of HOME funds would devalue those credits. However, the Olene Walker Housing Trust Fund Board has approved the use of some of these funds for technical assistance, and a portion have been used for single-family housing projects.

The Community Development Division welcomes opportunities to partner with local governments, quasi-governmental agencies such as public housing authorities, and non-profits in providing affordable housing opportunities to Utahans. These partnerships have applied successfully in national competitions for the following federal housing programs, with the Division often pledging a significant portion of the required matching dollars:

Housing Opportunities for People With Aids (HOPWA) is a HUD funded program. It provides Housing and support services for people who are HIV/AIDS positive. The Division received a $67,000 in FY 2004 for construction, rental subsidies, and supportive services. This program is currently being operated in cooperation with Salt Lake City and the Utah Aids Foundation.

Contact persons for the various programs listed above are: