The rapidly rising demand for more affordable places to live in Utah has nearly depleted the state's main fund for purchasing, building and preserving low-income housing.

With the approval last week of $7.4 million for 13 projects — the fund's single-largest payout that will bring 700 units in the low-income market — the Olene Walker Housing Loan Fund has $200,000 to spend between now and mid-2008.

The joint state and federal fund will be replenished by then, but having that much left over with six months left in the fiscal year shows a record level of demand, said loan fund board chairwoman and Midvale Mayor JoAnn B. Seghini.

Governing board members and the state Division of Housing and Community Development Utah sets the unmet need for affordable rental units at 51,000 and climbing — 50 percent higher than in 2007.

Created in 1987, the fund provides "bridge" money in grants and loans to developers statewide who then leverage the money to obtain federal and private equity and tax credits. Most of the apartments and single-family homes built with the funds provide housing for people with disabilities, the homeless and low-to-middle-wage working Utahns, seniors and refugees.

Former Gov. Olene Walker, the fund's namesake, said a telling factor in the demand is the increasing number of teachers, police officers and other workers in the private and public service industries who are obtaining housing through the fund.

"The impact of housing costs on the middle-income folks around the state is pretty clear," Walker said. "People might think that a strong economy would actually reduce the demand, but in fact, housing prices and rents have increased and are fueling the demand."

During the 18 to 24 months it will take for the new projects to come online, the board granted rental assistance voucher money to housing authorities to help underwrite people trying to rent in the meantime. Housing advocates say people are finding little success, particularly in Salt Lake City, where both private and state economic analysts say the rental vacancy rate is running at 0 percent.

The board will continue to approve projects with the condition that expected funding becomes available, said director Gordon Walker. Gov. Jon M. Huntsman Jr. has recommended $1.6 million in his proposed budget for the fiscal year beginning in July.

In fiscal year 2007, the fund approved $5.8 million for 713 units. The money leveraged $59 million in federal and private equity and tax credits creating a total value of $80.9 million.

Projects approved by the fund's governing board last week:

• $131,840 to Portree Properties LLC for the rehabilitation of the historical Newhouse Apartments in Price and Golden Rule Mission in Helper.