Section 35A-8-507.5 - Predevelopment grants(1) The executive director may, under the direction of the board, award one or more predevelopment grants to a nonprofit or for-profit entity: (a) in preparation for a project that: (i) involves the construction of moderate income housing units; and(ii) is located within: (A) a city of the fifth or sixth class, or a town, in a rural area of the state; or(B) any municipality or unincorporated area in a county of the fourth, fifth, or sixth class; and(b) in an amount of no more than $50,000 per project.(2) The executive director shall, under the direction of the board, award each predevelopment grant in accordance with the provisions of this section and the provisions related to grant applications, grant awards, and reporting requirements in this part.(3) The recipient of a predevelopment grant: (a) may use grant funds to offset the predevelopment funds needed to prepare for the construction of low-income housing units, including market studies, surveys, environmental and impact studies, technical assistance, and preliminary architecture, engineering, or legal work; and(b) may not use grant funds to pay for staff salaries or construction costs.(4) The executive director shall, under the direction of the board, prioritize the awarding of a predevelopment grant for a project that is located within: (a) a county of the fifth or sixth class; and(b) an area that has underdeveloped infrastructure, as demonstrated by at least two of the following:(i) limited or no availability of natural gas;(ii) limited or no availability of a sewer system;(iii) limited or no availability of broadband Internet;(iv) unpaved residential streets; or(v) limited local construction professionals, vendors, or services.Amended by Chapter 406, 2022 General Session ,§ 23, eff. 6/1/2022.Added by Chapter 333, 2021 General Session ,§ 6, eff. 5/5/2021.