DAR File No. 31000

Commerce, Real Estate

R162-12

Utah Housing Opportunity Restricted Account

NOTICE OF PROPOSED RULE

DAR File No.: 31000
Filed: 02/15/2008, 01:36
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this new rule is to allow qualified entities to apply to the Division of Real Estate for a distribution of funds from the Utah Housing Opportunity Restricted Account to be used to provide support to organizations that create affordable housing for those in severe need.

Summary of the rule or change:

This new rule provides for definitions of "Utah Housing Opportunity Restricted Account" and "Qualified entity"; and outlines requirements that must be met for applications for funds from the Utah Housing Opportunity Restricted Account. The rule also outlines how the division will select recipients of funds.

State statutory or constitutional authorization for this rule:

Section 61-2-28

Anticipated cost or savings to:

the state budget:

None--There will be no impact to the state budget because the funds will come from contributions made to the Division of Motor Vehicles for the Utah Housing opportunity special license group plate.

local governments:

None--Rules made regarding regulation of real estate licensees or the Utah Housing Opportunity Restricted Account have no impact on local governments.

small businesses and persons other than businesses:

None--The only persons who are affected by creating a process for disbursing funds from the Utah Housing Opportunity Restricted Account are those that either voluntarily choose to contribute to the account by obtaining a Utah Housing Opportunity special group license plate and those charitable organizations which voluntarily chose to apply for a disbursement of funds. Presumably, charitable organizations who receive a disbursement will save an equal amount from their existing budgets that could then be used in other funding areas.

Compliance costs for affected persons:

None--Any costs associated with applying for a disbursement of funds would be nominal.

Comments by the department head on the fiscal impact the rule may have on businesses:

This rule filing implements S.B. 199, 2007 General Session, by enacting procedures for organizations to apply and receive funds from the Utah Housing Opportunity Restricted Account. No fiscal impact on businesses is anticipated by this rule filing beyond those anticipated in the passage of S.B. 199. Francine Giani, Executive Director (DAR NOTE: S.B. 199 (2007) is found at Chapter 325, Laws of Utah 2007, and was effective 04/30/2007.)

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Real Estate
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

Direct questions regarding this rule to:

Laurie Noda at the above address, by phone at 801-366-0328, by FAX at 801-366-0315, or by Internet E-mail at lnoda@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/31/2008

This rule may become effective on:

04/07/2008

Authorized by:

Mark Steinagel, Director

R162. Commerce, Real Estate.

R162-12. Utah Housing Opportunity Restricted Account.

R162-12-1. Authority and Definitions.

12.1.1 The following administrative rules are promulgated under the authority granted by Sections 61-2-5.5(1)(a) and 61-2-28.

12.1.2 Terms used in these rules are defined as follows:

(a) "Utah Housing Opportunity Restricted Account" means the restricted account created in the General Fund into which the following monies are deposited: contributions to the Department of Motor Vehicles for Utah Housing Opportunity special group license plates in accordance with Section 41-1a-422, private contributions, donations or grants from public or private entities, and interest and earnings on the funds in the account.

(b) "Qualified entity" means a charitable organization that qualifies as being tax exempt under Section 501(c)(3), Internal Revenue Code, and that provides support to organizations that create affordable housing for those in severe need as a primary part of their mission.

 

R162-12-2. Proposals.

12.2.1 No later than August 1 of each year, a qualified entity may apply to the Division for a distribution of funds from the Utah Housing Opportunity Restricted Account to be used to provide support to organizations that create affordable housing for those in severe need.

12.1.2 An applicants shall provide to the Division as part of an application:

(a) contact information for the applicant;

(b) proof that the entity is tax exempt under Section 501(c)(3), Internal Revenue Code;

(c) proof that the entity provides support to organizations that create affordable housing for those in severe need as a primary part of its mission;

(d) a statement of the purpose for which the application is submitted, along with an explanation of how the entity would use a disbursement of money to promote affordable housing for those in severe need; and

(e) an explanation of the internal management controls and financial controls of the entity that would insure that any funds received would be used only for authorized purposes.

 

R162-12-3. Selection of Recipient.

12.3.1 The Division shall annually select one applicant to receive a distribution from the Utah Housing Opportunity Restricted Account. The Division shall select the recipient based on which applicant can, in the opinion of the Division, most effectively and efficiently use the funds to promote affordable housing for those in severe need.

12.3.2 The disbursement to the successful applicant shall be made no later than December 31 each year.

 

KEY: Utah Housing Opportunity Restricted Account

Date of Enactment or Last Substantive Amendment: 2008

Authorizing, and Implemented or Interpreted Law: 61-2-28