(1) The executive director shall:

1. (a) make grants and loans from the fund for any of the activities authorized by Section 35A-8-505, as directed by the board;
2. (b) establish the criteria with the approval of the board by which loans and grants will be made; and
3. (c) determine with the approval of the board the order in which projects will be funded.

(3)

1. (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.

2. (b) As used in Subsection (3)(a):

   1. (i) "Community" has the meaning as defined in Section 17C-1-102.
   2. (ii) "Income targeted housing" has the meaning as 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 the fund according to the following requirements:

1. (a) Not less than 30% of all fund money shall be distributed to rural areas of the state.

2. (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.

   1. (i)

      1. (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.
      2. (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.
   2. (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.

3. (c) Any fund money not distributed as loans shall be distributed as grants.

   1. (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.
   2. (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.

(5) The executive director may with the approval of the board:

1. (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
2. (b) service or contract, under Title 63G, Chapter 6a, Utah Procurement Code, for the servicing of loans made by the fund.