R982.  Workforce Services, Administration.
R982-501.  Olene Walker Housing Loan Fund (OWHLF).
R982-501-1.  Authority.
	(1)  Pursuant to Section 35A-8-501 et seq., Utah Code, the Olene Walker Housing Loan Fund Board (OWHLF) determines how federal and state monies deposited to the fund shall be allocated and distributed.
	(2)  The Program Guidance and Rules govern the allocation and distribution of funds.  The Program Guidance and Rules may be amended from time to time as new guidelines and regulations are issued or as the Board deems necessary to carry out the goals of the OWHLF.

R982-501-2.  Purpose.
	(1)  Pursuant to Subsection 35A-8-502(1)(a), the Housing and Community Development Division (HCD) shall administer the OWHLF as the designee of the executive director of the Department of Workforce Services (DWS).
	(2)  The objective of the OWHLF is to rehabilitate or develop housing that is affordable to very low, low and moderate-income persons through a fair and competitive process.
	(3)  In administering this fund, this rule incorporates by reference 24 CFR 84-85 as authorized under Utah Code Annotated Section 35A-8-503 through 508.

R982-501-3.  Definitions.
	In addition to terms defined in Section 35A-8-501:
	(1)  "Application" means the form provided and required by HCD to be submitted to request funds from the OWHLF.
	(2)  "Board" means the Olene Walker Housing Loan Fund Board.
	(3)  "BRC" means a Board Review Committee(s), consisting of members selected by the Board.
	(4)  "Consolidated Plan" means a plan of up to five years in length that describes community needs, resources, priorities and proposed activities to be undertaken under certain HUD programs, including Community Development Block Grant (CDBG), HOME, Emergency Shelter Grant Housing Opportunities for Persons with AIDS (HOPWA), and other partner funding sources.
	(5)  "Subsidy-layering" means an evaluation of the project conducted by HCD staff to ensure that the lowest amount of HOME and other funds necessary to provide affordable housing are invested in the project.
	(6)  "HOME, CDBG, or HOPWA" means HUD programs that provide funds for housing and community needs.
	(7)  "Affordable Housing" means assisting persons at or below 80% of area median income (as defined by HUD) to find decent, and safe housing at a reasonable cost.
	(8)  "Loan" means funds provided with the requirement of repayment of principal and interest over a fixed period of time.
	(9)  "Grant" means funds provided with no requirement or expectation of repayment.
	(10)  "Local Agency" means public housing authorities, counties, cities, towns, and association of governments.
	(11)  "Funding Cycle" means period of time in which OWHLF funds are allocated.
	(12)  "Allocation Plan" means an annual plan that describes housing needs, priorities, funding sources, and the process and policies to request funds from the OWHLF.
	(13)  "Other Funding Sources" means funds from other federal programs and community partners (including CRA funds).

R982-501-4.  Applicant and Project Eligibility.
	(1)  The Board shall consider for funding, only those applications submitted by an eligible applicant as defined in Section 35A-8-506, Utah Code.
	(2)  The Board shall consider for funding only those eligible projects as defined in Section 35A-8-505, Utah Code and meet one or more of the following priorities established by the Board:
	(a)  Efficiently utilize funds, through cost containment and resource leveraging,
	(b)  Provide that largest numbers of units shall charge the lowest monthly rental amount at levels that are attainable over the longest periods of time,
	(c)  Provide the most equitable geographic distribution of resources,
	(d)  Provide housing for special-needs populations including: (i) transitional housing, (ii) elderly and frail elderly housing, and (iii) housing for physically and mentally disabled persons,
	(e)  Strengthen and expand the abilities of local governments, non-profits organizations and for-profit organizations to provide and preserve affordable housing,
	(f)  Assist various Community Housing Development Organizations (CHDO) in designing and implementing strategies to create affordable housing, and
	(g)  Promote partnerships among local government, non-profit and for-profit organizations, and CHDO.
	(h)  Meet the goals of the Utah Consolidated Plan and any local area plans regarding affordable housing.

R982-501-5.  Application Requirements.
	(1)  OWHLF funds shall be distributed in accordance with an application process defined in this rule. Funds shall be issued during a scheduled funding cycle.  The Board conducts four cycles during a calendar year.
	(2)  An applicant seeking to obtain funds shall submit a completed application form furnished by the HCD prior to the cycle's deadline.
	(3)  All completed applications will be reviewed by staff, which will present the application to the Board Review Committee (BRC) during the cycle in which the application is received.  Applications will be ranked and scored according to how completely each application meets the criteria established by the Board.
	(4)  Applicants submitting incomplete applications will be notified of deficiencies.  Each incomplete request(s) will be held in a file, pending submission of all required information by the applicant.
	(5)  A decision on each application will generally be made no later than the award notification date for each cycle. The Board may delay final decisions in order to accommodate scheduling and processing problems peculiar to each cycle.
	(6)  The Board may modify a given cycle and change submission deadlines to dates other than those previously scheduled.  In doing so, the Board will make reasonable efforts to inform interested parties of such modifications.
	(7)  For Single-Family Program applicants, the Board may delegate responsibilities to local agencies for application intake, loan underwriting, processing, approval, project development, construction and weatherization oversight, and management.  Local agencies will be governed by policies and procedures approved by the Board.

R982-501-6.  Project Selection Process.
	(1)  The BRC shall select applications for funding according to the following process and requirements as outlined in the Allocation Plan:
	(a)  Project underwriting and threshold review,
	(b)  Scoring and documentation review,
	(c)  Market study and project reasonableness review,
	(d)  Calculation of OWHLF subsidy amount.

R982-501-7.  Funding Approval.
	(1)  After each application has been processed and the funding amount has been determined for a given cycle, staff will present projects to the BRC at its next regularly scheduled meeting. The BRC shall hear comments from applicants at the committee meeting and obtain sufficient information to inform the full board about the project, its financial structure, and related general information.
	(2)  A copy of the BRC recommendation, including all conditional requirements imposed by the BRC and staff, shall become a part of the permanent record and placed in the applicant's file.  Recommendations will be presented at the next regularly scheduled quarterly Board meetings.  The board will approve, deny, or delay the application.
	(3)  An applicant may request a change in the terms as outlined in the original motion of the board by reapplying to HCD, with all updated, applicable financial information included, in subsequent funding rounds.

R982-501-8.  Project Reporting.
	(1)  All projects receiving funding approval will be required to provide status reports at a scheduled frequency, in a format prescribed by the staff, and approved by the Board.
	(2)  Projects that have not begun construction within one year from the date of approval for funding must submit to staff a summary of significant progress made to date and an explanation of why the project is behind schedule.  Staff will present this information to the BRC.
	(3)  The BRC may choose to extend the period of the project, to rescind the approval, or require the project to re-apply in accordance with current parameters.

R982-501-9.  Compliance Monitoring.
	(1)  Monitoring of the project by HCD staff will be completed to ensure program compliance.  Program non-compliance or lack of response to inquiries from staff will be reported to the HCD administration, the Board, HUD, and the Attorney General's Office as deemed necessary.

R982-501-10.  Administration Fees.
	(1)  The local agencies listed below may use previously designated funds for project administration costs as approved by the Board.  Such projects are still subject to on-site administrative supervision, staff oversight, or monitoring by HDC.  The agencies include:
	(a)  Public Housing Authorities.
	(b)  Counties, cities and towns.
	(c)  Associations of Governments.
	(2)  The agencies shall be expected to demonstrate a significant level of business management and administrative experience and ability in order to receive administrative funds.  They shall also demonstrate an acceptable level of background and experience to perform housing rehabilitation/reconstruction and implementation functions.

R982-501-11.  Financial Subsidy Review.
	(1)  HCD staff shall conduct "subsidy layering" reviews on projects that directly or indirectly receive financial assistance from the U.S. Department of Agriculture Rural Development Service ("RD or RDS"), the U.S. Department of Housing and Urban Development ("HUD") exclusive of HOME, CDBG, or HOPWA assistance, (i.e., the "Subsidy Layering Review") and other federal agencies.
	(2)  Subsidy Layering Reviews shall be conducted in accordance with guidelines established by the cognizant federal agency with respect to the review of any financial assistance provided by or through these agencies to the project and shall include a review of:
	(a)  The amount of equity capital contributed to a project by investors,
	(b)  The project costs including developer fees, and
	(c)  The contractor's profit, syndication costs and rates.
	(3)  In the course of conducting the review, the staff may disclose or provide a copy of the application to the cognizant federal agency for its review and comments and shall take any other action deemed necessary to satisfy its obligations under the respective review requirements.  HCD staff will consider the results of any review completed by Utah Housing Corporation (UHC).

R982-501-12.  Sharing of Information.
	(1)  Application information may be shared with participating lenders, IRS and UHC.
	(2)  In administering this program, the HCD staff shall conduct all functions in accordance with the provisions of the state GRAMA statute and the federal Freedom of Information Act.

R982-501-13.  Portfolio Management.
	(1)  HCD staff will track the status of the OWHLF portfolio to assess any problem loans needing special loan servicing.  Staff will make recommendations to the BRC regarding loan review, changes, and approvals.
	(2)  HCD staff will work with the board and the Attorney General's office to develop policies and procedures to govern special portfolio management issues such as loan restructuring, bankruptcies, and asset disposal.

KEY:  Olene Walker Housing Loan Fund, affordable housing, housing development
Date of Enactment or Last Substantive Amendment:  July 9, 2012
Notice of Continuation:  July 6, 2017
Authorizing, and Implemented or Interpreted Law:  35A-8-504