§ 17C-1-411. Use of tax increment for housing and for relocating mobile home park residents -- Funds to be held in separate accounts.

(1) An agency may:

(a) use tax increment from a project area to pay all or part of the value of the land for and the cost of installation, construction, and rehabilitation of any building, facility, structure, or other housing improvement, including infrastructure improvements related to housing, located in any project area within the agency's boundaries; and

(b) use up to 20% of tax increment:

(i) outside of project areas for the purpose of:

(A) replacing housing units lost by urban renewal, economic development, or community development; or

(B) increasing, improving, and preserving generally the affordable housing supply within the boundary of the agency; or

(ii) for relocating mobile home park residents displaced by development, whether inside or outside a project area.

(2)

(a) Each agency shall separately account for funds allocated under this section.

(b) Interest earned by the housing fund and any payments or repayments made to the agency for loans, advances, or grants of any kind from the fund, shall accrue to the housing fund.

(c) Each agency designating a housing fund under this section shall use the fund for:

(i) the purposes set forth in this section; or

(ii) the purposes set forth in this title relating to the urban renewal, economic development, or community development project area from which the funds originated.

(3) An agency may lend, grant, or contribute funds from the housing fund to a person, public entity, housing authority, private entity or business, or nonprofit corporation for affordable housing.

Amended by Chapter 387, 2009 General Session