Utah Code 35A-8-408. Profit from projects prohibited — Criteria for determining rentals and payments
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(1) To accomplish the public, governmental, and charitable purposes of this part, the Legislature declares that:
Terms Used In Utah Code 35A-8-408
- authority: means a public body corporate and politic created by this part. See Utah Code 35A-8-401
- Bonds: means bonds, notes, interim certificates, debentures, or other obligations issued by an authority under this part. See Utah Code 35A-8-401
- City: means a city or town in the state. See Utah Code 35A-8-401
- County: means a county in the state. See Utah Code 35A-8-401
- Housing project: includes :(11)(b)(i) buildings, land, equipment, facilities, and other real or personal property for necessary, convenient, or desirable appurtenances;(11)(b)(ii) streets, sewers, water service, utilities, parks, site preparation and landscaping;(11)(b)(iii) facilities for administrative, community, health, recreational, welfare, or other purposes;(11)(b)(iv) the planning of the buildings and other improvements;(11)(b)(v) the acquisition of property or any interest in the property;(11)(b)(vi) the demolition of existing structures;(11)(b)(vii) the construction, reconstruction, rehabilitation, alteration, or repair of the improvements and all other work in connection with them; and(11)(b)(viii) all other real and personal property and all tangible or intangible assets held or used in connection with the housing project. See Utah Code 35A-8-401(1)(a) an authority manage and operate the authority’s housing projects in an efficient manner to enable each housing project to provide decent, safe, and sanitary dwelling accommodations for persons of medium and low income and fix the rentals or payments for these accommodations for persons of low income at low rates; and(1)(b) an authority may not be operated as a source of revenue to the city or county.
(2) An authority shall fix the rentals or payments for dwellings in the authority’s projects at no higher rates than the authority finds necessary in order to produce revenues that, together with all other available money, revenues, income, and receipts of the authority from whatever sources derived, including federal financial assistance necessary to maintain the low-rent character of the projects, is sufficient to:
(2)(a) pay, as they become due, the principal and interest on the bonds of the authority;
(2)(b) create and maintain reserves required to assure the payment of principal and interest as it becomes due on its bonds;
(2)(c) meet the cost of, and provide for, maintaining and operating the projects, including necessary reserves and the cost of any insurance, and the administrative expenses of the authority; and
(2)(d) make payments in lieu of taxes and, after payment in full of all obligations for which federal annual contributions are pledged, make repayments of federal and local contributions as it determines are consistent with the maintenance of the low-rent character of projects.
(3) Rentals or payments for dwellings shall be established and the projects administered, in so far as possible, to assure that any federal financial assistance required is strictly limited to amounts and periods necessary to maintain the low-rent character of the projects.
(4) Nothing in this section limits the amount an authority may charge for nondwelling facilities.
(5) All income and revenue described in this section shall be used in the operation of the projects to aid in accomplishing the public, governmental, and charitable purposes of this part.