Creation of Redevelopment Matching Grant Program -- Eligibility and program requirements -- Rulemaking -- Reporting

(1) There is created the Redevelopment Matching Grant Program administered by the office. (2) Subject to appropriations from the Legislature, the office shall award grants to: (a) local governments that meet the qualifications described in Subsection (3), to provide support for projects or services that increase the supply of affordable and high quality living units; and (b) water conservancy districts, special districts, and special service districts that meet the qualifications described in Subsection (4), to provide support for projects or services that conserve or develop water assets. (3) To qualify for a grant, a local government shall: (a) demonstrate that the local government has approved a development application after January 1, 2021, that allows for the creation of new or additional affordable housing units, attached or detached, at a density of at least eight units per acre; (b) demonstrate that the project for which grant funds are sought is not subject to a land use referendum or initiative; (c) provide an equal amount of matching funds; and (d) certify that the local government will spend grant funds: (i) on a project or service that increases the supply of affordable and high quality living units; (ii) within six months of receiving the grant; and (iii) in accordance with the American Rescue Plan Act. (4) To qualify for a grant, a water conservancy district, special district, or special service district shall: (a) provide an equal amount of matching funds; and (b) certify that the water conservancy district, special district, or special service district will spend grant funds: (i) on a project or service that conserves or develops water assets; and (ii) in accordance with the American Rescue Plan Act. (5) In awarding grants to local governments, the office may award an initial grant to a local government in an amount of up to $2,500,000, and an additional grant of up to $1,500,000, if the project includes a minimum of 1,000 housing units or a minimum of 40 units per acre. (6) The office may not award more than 35% of the total amount of grant funds available for projects to conserve or develop water assets. (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the office may make rules establishing the eligibility and reporting criteria for grants, including: (a) the form and process of applying for grants; (b) the method and formula for determining grant amounts; and (c) the reporting requirements of grant recipients. (8) The office shall annually prepare and submit a report describing the distribution and uses of grants to the Governor's Office of Planning and Budget and to the Office of the Legislative Fiscal Analyst. (9) In addition to the report described in Subsection (8), the office shall include in the annual written report described in Section 63N-1a-306 a report on the grant program.