(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 reinvestment agency under Title 17C, Limited Purpose Local Government Entities - Community Reinvestment Agency Act.

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

   1. (i) "Community" means the same as that term is defined in Section 17C-1-102.
   2. (ii) "Income targeted housing" 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 in the fund according to the following requirements:

1. (a) the executive director shall distribute at least 30% of the money in the fund to rural areas of the state;
2. (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;
3. (c) the executive director may not use more than 3% of the revenues of the fund to offset department or board administrative expenses;
4. (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
5. (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:

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.