Utah Governor Signs Expansion of State Housing Tax Credit
Utah’s governor recently signed into law an expansion of the state’s low-income housing tax credit program. The law establishes a new supplemental funding source dedicated to serving extremely low-income households. The new legislation will allow the Utah Housing Corporation to administer tax credits valued at up to $4 million. Additionally, $2 million is now set aside for the State Housing and Community Development Division to establish an Economic Revitalization and Investment Fund.
The new $2 million appropriation for the Economic Revitalization and Investment Fund is a one-time allocation specifically for loans to develop and operate affordable housing. The loans, which can be no-interest loans with deferred repayment, must be used for homes that are affordable to households at 30 percent of area median income (AMI) and below. Apartments supported through the fund can remain in compliance for households earning up to 60 percent of AMI, as long as those households were at or below the 30 percent AMI threshold when the lease began.