Report To The Utah Legislature - A Performance Audit Of The Division Of Housing And Community Development - 2012 Page 23
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33Before acquiring the property at 700 West 3400 South in 2007,
HCD officials felt confident that the plans for the property would be
approved after their discussions with city planners. HCD presented
the plans to the South Salt Lake Planning Commission after having
hired architects and structural engineers at a cost of $266,400 to
design an apartment complex for homeless veterans. The plan then
went to the city council where it was not accepted. HCD decided not
to override the city’s decision, thus stalling the project, despite being
statutorily allowed to build without city approval.
HCD’s direct purchase of the South Salt Lake property was
unusual, but within the division’s statutory authority and goals of
providing housing for the chronically homeless. The statutory
authority given HCD to build low-income housing allows for “any act
necessary . . . including . . . purchase”. This broad authority suggests
the need for guidelines to evaluate the circumstances under which
HCD land purchases would be appropriate, and determine how HCD
use of that land would best comply with the legislative mandate to
leverage funds.
HCD works with a small community of low-income housing
developers, both private organizations and public housing authorities.
A few we spoke with in this community were concerned that the
South Salt Lake project limited funds for other projects in 2007. As
Established guidelines
discussed in the previous section, this concern appears to be
may help maintain
unfounded, but though HCD has the authority to purchase land,
good will with the
housing community.
establishing guidelines will inform the low-income housing
community of HCD’s authority to develop such projects as well as the
criteria for doing so. This step could help maintain good-will with the
community.
Legislature May Want to Consider Its Intent on
Land-banking for Low-income Housing
Utah Code 9-4-1202(4)(b) clarifies legislative policy and purpose
pertaining to HCD housing goals. It specifies that
State money used in the development of housing shall: be
heavily leveraged when possible; be primarily invested as
loans; be primarily spent on housing production;
Office of the Utah Legislative Auditor General
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