1. (1) There is created an enterprise fund known as the "Rural Housing Fund."

2. (2) The Rural Housing Fund consists of money from the following:

   1. (a) money appropriated to the account by the Legislature;
   2. (b) private contributions;
   3. (c) donations or grants from public or private entities; and
   4. (d) money returned to the department under Subsection 35A-8-512(3)(b).
3. (3) The Rural Housing Fund shall earn interest, which shall be deposited into the Rural Housing Fund.

4. (4) Subject to appropriation, the executive director may expend funds in the Rural Housing Fund to provide loans for projects that:

   1. (a) are located within:

      1. (i) a county of the third, fourth, fifth, or sixth class; or
      2. (ii) a municipality in a county of the second class with a population of 10,000 or less;
   2. (b) include moderate income housing units; and
   3. (c) have been approved by the board in accordance with Section 35A-8-510.

5. (5)

   1. (a) A housing sponsor may apply to the department to receive a loan under this section.

   2. (b) An application under Subsection (5)(a) shall specify:

      1. (i) the location of the project;
      2. (ii) the number, size, and income requirements of moderate income housing units that will be included in the project; and
      3. (iii) a written commitment to enter into a deed restriction that reserves for a period of 50 years the moderate income housing units described in Subsection (5)(b)(ii).
   3. (c) A commitment under Subsection (5)(b)(iii) shall be considered satisfied if a housing unit is occupied by a household that met the income requirement for moderate income housing when the household originally entered into the lease agreement for the housing unit.
   4. (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the department may make rules establishing procedures and requirements for housing sponsors to apply for and receive loans under this section.
6. (6) The executive director may expend up to 3% of the revenues of the Rural Housing Fund, including any appropriation to the Rural Housing Fund, to offset department or board administrative expenses.

Renumbered and Amended by Chapter 393, 2026 General Session