Use of project area funds for housing-related improvements and for relocating mobile home park residents -- Funds to be held in separate accounts.
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(1) An agency may use project area funds:
(a) to pay all or part of the value of the land for and the cost of installation, construction, or rehabilitation of any housing-related building, facility, structure, or other housing improvement, including infrastructure improvements related to housing, located in any project area within the agency's boundaries;
(b) outside of a project area for the purpose of:
(i) replacing housing units lost by project area development; or
(ii) increasing, improving, or preserving the affordable housing supply within the boundary of the agency;
(c) for relocating mobile home park residents displaced by project area development, whether inside or outside a project area; or
(d) subject to Subsection (4), to transfer funds to a community that created the agency.
(2)
(a) Each agency shall create a housing fund and separately account for project area funds allocated under this section.
(b) Interest earned by the housing fund described in Subsection (2)(a), and any payments or repayments made to the agency for loans, advances, or grants of any kind from the housing fund, shall accrue to the housing fund.
(c) An agency that designates a housing fund under this section shall use the housing fund for the purposes set forth in this section or Section 17C-1-412.
(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 or homeless assistance.
(4) For the purpose of offsetting the community's annual local contribution to the Homeless Shelter Cities Mitigation Restricted Account, the total amount an agency transfers in a calendar year to a community under Subsections (1)(d), 17C-1-409(1)(a)(v), and 17C-1-412(1)(a)(x) may not exceed the community's annual local contribution as defined in Section 35A-8-606.