Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 262 (2025GS)

Sponsor

Sen. Fillmore, Lincoln

Final action

Governor Signed 3/27/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• amends provisions allowing revenue from a home ownership promotion zone to be used for certain purposes;
• enacts provisions allowing legislative bodies to settle certain litigation through a consent agreement;
• allows a county and municipality to use home ownership promotion zone funds for all or part of water exaction, street lighting, and environmental remediation costs;
• requires a county to comply with land use provisions for all pending and new land use applications;
• directs the Utah Housing Corporation to make rules regarding:
• procedures, qualifications, and requirements for private financial institutions that offer certain mortgage loans to first-time homebuyers; and
• the creation of an incentive program for qualified buyers to assist certain borrowers with the purchase of liability insurance for certain qualifying projects;
• provides that first-time home buyers may use certain mortgage loans for specified purposes;
• creates a subordinate shared appreciation loan program to be administered by the Department of Workforce Services to assist borrowers for certain purposes; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

80
10-9a-804
10-9a-1005
17-27a-508
17-27a-804
17-27a-1205
35A-8-504.6
35A-8-505
51-12-101
63H-8-501
63H-8-502
10-9a-804
10-9a-1005
17-27a-508
17-27a-804
17-27a-1205
35A-8-504.6
35A-8-505
51-12-101
63H-8-501
63H-8-502
0
Housing Affordability Modifications
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore
House Sponsor: Stephen L. Whyte
LONG TITLE
General Description:
This bill amends provisions related to affordable housing.
Highlighted Provisions:
This bill:
defines terms;
amends provisions allowing revenue from a home ownership promotion zone to be used 
for certain purposes;
enacts provisions allowing legislative bodies to settle certain litigation through a consent 
agreement;
allows a county and municipality to use home ownership promotion zone funds for all or 
part of water exaction, street lighting, and environmental remediation costs;
requires a county to comply with land use provisions for all pending and new land use 
applications;
directs the Utah Housing Corporation to make rules regarding: 
procedures, qualifications, and requirements for private financial institutions that offer 
certain mortgage loans to first-time homebuyers; and
the creation of an incentive program for qualified buyers to assist certain borrowers 
with the purchase of liability insurance for certain qualifying projects;
provides that first-time home buyers may use certain mortgage loans for specified 
purposes; 
creates a subordinate shared appreciation loan program to be administered by the 
Department of Workforce Services to assist borrowers for certain purposes; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
10-9a-1005
, as enacted by Laws of Utah 2024, Chapter 431
17-27a-508
, as last amended by Laws of Utah 2024, Chapter 415
17-27a-1205
, as enacted by Laws of Utah 2024, Chapter 431
35A-8-505
, as last amended by Laws of Utah 2021, Chapters 102, 333
51-12-101
, as enacted by Laws of Utah 2024, Chapter 510
63H-8-501
, as last amended by Laws of Utah 2024, Chapter 431
63H-8-502
, as last amended by Laws of Utah 2024, Chapter 431
ENACTS:
10-9a-804
, Utah Code Annotated 1953
17-27a-804
, Utah Code Annotated 1953
35A-8-504.6
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
10-9a-804
 is enacted to read:
10-9a-804
. Consent agreement.
(1)
A legislative body may, by resolution or ordinance, settle litigation initiated under 
Section 
10-9a-801
 regarding a land use decision with a property owner through a 
consent agreement.
(2)
A legislative body shall approve the consent agreement under Subsection 
(1)
 in a public 
meeting in accordance with Title 52, Chapter 4, Open and Public Meetings Act.
(3)
A legislative body is not required to present to a planning commission on any matter 
covered by a consent agreement.
Section 2, Section 
10-9a-1005
 is amended to read:
10-9a-1005
. Payment, use, and administration of revenue from a home 
ownership promotion zone.
(1)
(a)
A municipality may receive tax increment and use home ownership promotion 
zone funds in accordance with this section.
(b)
The maximum amount of time that a municipality may receive and use tax increment 
pursuant to a home ownership promotion zone is 15 consecutive years.
(2)
A county that collects property tax on property located within a home ownership 
promotion zone shall, in accordance with Section 
59-2-1365
, distribute 60% of the tax 
increment collected from property within the home ownership promotion zone to the 
municipality over the home ownership promotion zone to be used as described in this 
section.
(3)
(a)
Tax increment distributed to a municipality in accordance with Subsection (2) is 
not revenue of the taxing entity or municipality, but home ownership promotion zone 
funds.
(b)
Home ownership promotion zone funds may be administered by an agency created 
by the municipality within which the home ownership promotion zone is located.
(c)
Before an agency may receive home ownership promotion zone funds from a 
municipality, the agency shall enter into an interlocal agreement with the 
municipality.
(4)
(a)
A municipality or agency shall use home ownership promotion zone funds within, 
or for the direct benefit of, the home ownership promotion zone.
(b)
If any home ownership promotion zone funds will be used outside of the home 
ownership promotion zone, the legislative body of the municipality shall make a 
finding that the use of the home ownership promotion zone funds outside of the home 
ownership promotion zone will directly benefit the home ownership promotion zone.
(5)
A municipality or agency shall use home ownership promotion zone funds to achieve 
the purposes described in Section 
10-9a-1003
 by paying all or part of the costs of any of 
the following:
(a)
project improvement costs;
(b)
systems improvement costs;
 or
(c)
water exaction costs;
(d)
street lighting costs;
(e)
environmental remediation costs; or
(c)
(f)
the costs of the municipality or agency to create and administer the home 
ownership promotion zone, which may not exceed 3% of the total home ownership 
promotion zone funds.
(6)
Home ownership promotion zone funds may be paid to a participant, if the municipality 
and participant enter into a participation agreement which requires the participant to 
utilize the home ownership promotion zone funds as allowed in this section.
(7)
Home ownership promotion zone funds may be used to pay all of the costs of bonds 
issued by the municipality in accordance with Title 17C, Chapter 1, Part 5, Agency 
Bonds, including the cost to issue and repay the bonds including interest.
(8)
A municipality may:
(a)
create one or more public infrastructure districts within a home ownership promotion 
zone under Title 17D, Chapter 4, Public Infrastructure District Act; and
(b)
pledge and utilize the home ownership promotion zone funds to guarantee the 
payment of public infrastructure bonds issued by a public infrastructure district.
Section 3, Section 
17-27a-508
 is amended to read:
17-27a-508
. Applicant's entitlement to land use application approval -- 
Application relating to land in a high priority transportation corridor -- County's 
requirements and limitations -- Vesting upon submission of development plan and 
schedule.
(1)
(a)
(i)
An
Subject to Subsection 
(7)
, an
 applicant who has submitted a complete 
land use application, including the payment of all application fees, is entitled to 
substantive review of the application under the land use regulations:
(A)
in effect on the date that the application is complete; and
(B)
applicable to the application or to the information shown on the submitted 
application.
(ii)
An applicant is entitled to approval of a land use application if the application 
conforms to the requirements of the applicable land use regulations, land use 
decisions, and development standards in effect when the applicant submits a 
complete application and pays all application fees, unless:
(A)
the land use authority, on the record, formally finds that a compelling, 
countervailing public interest would be jeopardized by approving the 
application and specifies the compelling, countervailing public interest in 
writing; or
(B)
in the manner provided by local ordinance and before the applicant submits 
the application, the county formally initiates proceedings to amend the county's 
land use regulations in a manner that would prohibit approval of the 
application as submitted.
(b)
The county shall process an application without regard to proceedings the county 
initiated to amend the county's ordinances as described in Subsection (1)(a)(ii)(B) if:
(i)
180 days have passed since the county initiated the proceedings; and
(ii)
(A)
the proceedings have not resulted in an enactment that prohibits approval 
of the application as submitted; or
(B)
during the 12 months prior to the county processing the application or 
multiple applications of the same type, the application is impaired or prohibited 
under the terms of a temporary land use regulation adopted under Section 
17-27a-504
.
(c)
A land use application is considered submitted and complete when the applicant 
provides the application in a form that complies with the requirements of applicable 
ordinances and pays all applicable fees.
(d)
Unless a phasing sequence is required in an executed development agreement, a 
county shall, without regard to any other separate and distinct land use application, 
accept and process a complete land use application
 in accordance with this chapter
.
(e)
The continuing validity of an approval of a land use application is conditioned upon 
the applicant proceeding after approval to implement the approval with reasonable 
diligence.
(f)
A
Subject to Subsection 
(7)
, a
 county may not impose on an applicant who has 
submitted a complete application a requirement that is not expressed in:
(i)
this chapter;
(ii)
a county ordinance in effect on the date that the applicant submits a complete 
application, subject to Subsection (1)(a)(ii); or
(iii)
a county specification for public improvements applicable to a subdivision or 
development that is in effect on the date that the applicant submits an application.
(g)
A county may not impose on a holder of an issued land use permit or a final, 
unexpired subdivision plat a requirement that is not expressed:
(i)
in a land use permit;
(ii)
on the subdivision plat;
(iii)
in a document on which the land use permit or subdivision plat is based;
(iv)
in the written record evidencing approval of the land use permit or subdivision 
plat;
(v)
in this chapter;
(vi)
in a county ordinance; or
(vii)
in a county specification for residential roadways in effect at the time a 
residential subdivision was approved.
(h)
Except as provided in Subsection (1)(i) or (j), a county may not withhold issuance of 
a certificate of occupancy or acceptance of subdivision improvements because of an 
applicant's failure to comply with a requirement that is not expressed:
(i)
in the building permit or subdivision plat, documents on which the building permit 
or subdivision plat is based, or the written record evidencing approval of the 
building permit or subdivision plat; or
(ii)
in this chapter or the county's ordinances.
(i)
A county may not unreasonably withhold issuance of a certificate of occupancy 
where an applicant has met all requirements essential for the public health, public 
safety, and general welfare of the occupants, in accordance with this chapter, unless:
(i)
the applicant and the county have agreed in a written document to the withholding 
of a certificate of occupancy; or
(ii)
the applicant has not provided a financial assurance for required and uncompleted 
public landscaping improvements or infrastructure improvements in accordance 
with an applicable ordinance that the legislative body adopts under this chapter.
(j)
A county may not conduct a final inspection required before issuing a certificate of 
occupancy for a residential unit that is within the boundary of an infrastructure 
financing district, as defined in Section 
17B-1-102
, until the applicant for the 
certificate of occupancy provides adequate proof to the county that any lien on the 
unit arising from the infrastructure financing district's assessment against the unit 
under Title 11, Chapter 42, Assessment Area Act, has been released after payment in 
full of the infrastructure financing district's assessment against that unit.
(2)
A county is bound by the terms and standards of applicable land use regulations and 
shall comply with mandatory provisions of those regulations.
(3)
A county may not, as a condition of land use application approval, require a person 
filing a land use application to obtain documentation regarding a school district's 
willingness, capacity, or ability to serve the development proposed in the land use 
application.
(4)
Upon 
Subject to Subsection 
(7)
, 
a specified public agency's submission of a 
development plan and schedule as required in Subsection 
17-27a-305
(8) that complies 
with the requirements of that subsection, the specified public agency vests in the 
county's applicable land use maps, zoning map, hookup fees, impact fees, other 
applicable development fees, and land use regulations in effect on the date of submission.
(5)
(a)
If sponsors of a referendum timely challenge a project in accordance with 
Subsection 
20A-7-601
(6), the project's affected owner may rescind the project's land 
use approval by delivering a written notice:
(i)
to the local clerk as defined in Section 
20A-7-101
; and
(ii)
no later than seven days after the day on which a petition for a referendum is 
determined sufficient under Subsection 
20A-7-607(4)
.
(b)
Upon delivery of a written notice described in Subsection(5)(a) the following are 
rescinded and are of no further force or effect:
(i)
the relevant land use approval; and
(ii)
any land use regulation enacted specifically in relation to the land use approval.
(6)
(a)
After issuance of a building permit, a county may not:
(i)
change or add to the requirements expressed in the building permit, unless the 
change or addition is:
(A)
requested by the building permit holder; or
(B)
necessary to comply with an applicable state building code; or
(ii)
revoke the building permit or take action that has the effect of revoking the 
building permit.
(b)
Subsection (6)(a) does not prevent a county from issuing a building permit that 
contains an expiration date defined in the building permit.
(7)
A county shall comply with the provisions of this chapter regarding all pending land use 
applications and new land use applications submitted under this chapter.
Section 4, Section 
17-27a-804
 is enacted to read:
17-27a-804
. Consent agreement.
(1)
A legislative body may, by resolution or ordinance, settle litigation initiated under 
Section 
17-27a-801
 regarding a land use decision with a property owner through a 
consent agreement.
(2)
A legislative body shall approve the consent agreement under Subsection (1) in a public 
meeting in accordance with Title 52, Chapter 4, Open and Public Meetings Act.
(3)
A legislative body is not required to present to a planning commission on any matter 
covered by a consent agreement.
Section 5, Section 
17-27a-1205
 is amended to read:
17-27a-1205
. Payment, use, and administration of revenue from a home 
ownership promotion zone.
(1)
(a)
A county may receive tax increment and use home ownership promotion zone 
funds in accordance with this section.
(b)
The maximum amount of time that a county may receive and use tax increment 
pursuant to a home ownership promotion zone is 15 consecutive years.
(2)
A county that collects property tax on property located within a home ownership 
promotion zone shall, in accordance with Section 
59-2-1365
, retain 60% of the tax 
increment collected from property within the home ownership promotion zone to be 
used as described in this section.
(3)
(a)
Tax increment retained by a county in accordance with Subsection (2) is not 
revenue of the taxing entity or county, but home ownership promotion zone funds.
(b)
Home ownership promotion zone funds may be administered by an agency created 
by the county within which the home ownership promotion zone is located.
(c)
Before an agency may receive home ownership promotion zone funds from a county, 
the agency shall enter into an interlocal agreement with the county.
(4)
(a)
A county or agency shall use home ownership promotion zone funds within, or for 
the direct benefit of, the home ownership promotion zone.
(b)
If any home ownership promotion zone funds will be used outside of the home 
ownership promotion zone, the legislative body of the county shall make a finding 
that the use of the home ownership promotion zone funds outside of the home 
ownership promotion zone will directly benefit the home ownership promotion zone.
(5)
A county or agency shall use home ownership promotion zone funds to achieve the 
purposes described in Section 
17-27a-1203
 by paying all or part of the costs of any of 
the following:
(a)
project improvement costs;
(b)
systems improvement costs;
 or
(c)
water exaction costs;
(d)
street lighting costs;
(e)
environmental remediation costs; or
(c)
(f)
the costs of the county to create and administer the home ownership promotion 
zone, which may not exceed 3% of the total home ownership promotion zone funds.
(6)
Home ownership promotion zone funds may be paid to a participant, if the county and 
participant enter into a participation agreement which requires the participant to utilize 
the home ownership promotion zone funds as allowed in this section.
(7)
Home ownership promotion zone funds may be used to pay all of the costs of bonds 
issued by the county in accordance with Title 17C, Chapter 1, Part 5, Agency Bonds, 
including the cost to issue and repay the bonds including interest.
(8)
A county may:
(a)
create one or more public infrastructure districts within home ownership promotion 
zone under Title 17D, Chapter 4, Public Infrastructure District Act; and
(b)
pledge and utilize the home ownership promotion zone funds to guarantee the 
payment of public infrastructure bonds issued by a public infrastructure district.
Section 6, Section 
35A-8-504.6
 is enacted to read:
35A-8-504.6
. Subordinate shared appreciation loan program.
(1)
As used in this section:
(a)
"Qualifying applicant" means a non-profit entity or a partnership of non-profit 
entities that provides or purchases subordinate shared appreciation loans.
(b)
"Qualifying mortgage loan" means a mortgage loan that is originated, purchased, or 
serviced by a private financial institution or sold to a government-sponsored 
enterprise, if:
(i)
the loan conforms to the borrower's income, property eligibility, and credit 
standards;
(ii)
the loan is secured by a recorded deed of trust or other instrument securing a 
mortgage loan and constituting a lien on real property in the county in which the 
home is located; and
(iii)
the loan is an amortizing first mortgage loan.
(c)
(i)
"Subordinate shared appreciation loan" means a loan that does not exceed 
$150,000, and that:
(A)
is secured by an owner-occupied residential property for which the borrower 
agrees to repay the principal borrowed plus a proportionate share of the home 
price appreciation during the term of the loan;
(B)
has flexible repayment terms in accordance with applicable state and federal 
laws;
(C)
is non-interest bearing and has no set monthly payment obligation;
(D)
does not impose a shared appreciation repayment percentage obligation that 
exceeds the percentage of the home value represented by the amount borrowed 
at origination;
(E)
does not have a combined loan-to-value ratio that exceeds 105%;
(F)
does not impose a prepayment fee or penalty; and
(G)
is subordinate to a first mortgage loan.
(ii)
"Subordinate shared appreciation loan" includes a loan to a qualifying borrower 
for the purpose of assisting the borrower in the purchase of construction liability 
insurance for a condominium project as established in rule by the Utah Housing 
Corporation in accordance with Section 
63H-8-502
.
(d)
"Subordinate shared appreciation loan program" means the loan program created in 
this section.
(2)
There is created the subordinate shared appreciation loan program administered by the 
department.
(3)
Subject to appropriations from the Legislature, the department shall distribute program 
funds to a qualifying applicant that:
(a)
completes an application; and
(b)
meets the requirements described under Subsection 
(1)(b)(i)
 or (1)(b)(ii).
(4)
The executive director may make rules in accordance with Title 63G, Chapter 3, Utah 
Administrative Rulemaking Act, to carry out the purposes of this section.
(5)
(a)
Subject to the provisions of Subsection 
(9)
, program funds shall only be used for a 
qualifying residential unit, as that term is defined in Section 
63H-8-501
.
(b)
Program funds shall only be distributed in conjunction with matching private funding 
that is no less than a 75% private funds and 25% program funds split.
(c)
A recipient of a subordinate shared appreciation loan may use the funds for the same 
purposes described in Section 
63H-8-502
.
(6)
If a subordinate shared appreciation loan on the qualifying residential unit is refinanced 
or sold, state funds, including associated fees, used to secure the mortgage loan shall be 
returned to the qualifying applicant.
(7)
The department may, in cooperation with the Utah Housing Corporation, promote the 
program to qualifying applicants to support the first-time homebuyer assistance program 
under Title 63H, Chapter 8, Part 5, First-Time Homebuyer Assistance Program.
(8)
The department shall include in the annual report required by Section 
35A-1-109
 the 
following information:
(a)
the number of approved loans under the program;
(b)
the total dollar amount of program funds loaned and the corresponding private 
matching funds;
(c)
the total dollar amount of funds reinvested into the program;
(d)
the total dollar amount of payoff and, if applicable, default of active loans; and
(e)
the approximate dollar value of the total number of loans provided under the program 
based upon the current home price index.
(9)
The executive director may expend up to 5% of the revenues of the program, including 
any appropriation to the program, to offset department administrative expenses.
(10)
The department may not accept applications for the program after September 1, 2025.
Section 7, Section 
35A-8-505
 is amended to read:
35A-8-505
. Activities authorized to receive fund money -- Powers of the 
executive director.
At the direction of the board, the executive director may:
(1)
provide fund money to any of the following activities:
(a)
the acquisition, rehabilitation, or new construction of low-income housing units;
(b)
matching funds for social services projects directly related to providing housing for 
special-need renters in assisted projects;
(c)
the development and construction of accessible housing designed for low-income 
persons;
(d)
the construction or improvement of a shelter or transitional housing facility that 
provides services intended to prevent or minimize homelessness among members of a 
specific homeless subpopulation;
(e)
the purchase of an existing facility to provide temporary or transitional housing for 
the homeless in an area that does not require rezoning before providing such 
temporary or transitional housing;
(f)
the purchase of land that will be used as the site of low-income housing units;
(g)
the preservation of existing affordable housing units for low-income persons;
(h)
providing loan guarantees under the two-year pilot program established in Section 
35A-8-504.5
;
(i)
distribute funds to a qualifying applicant under the subordinate shared appreciation 
mortgage loan program established in Section 
35A-8-504.6
;
(i)
(j)
the award of predevelopment grants in accordance with Section 
35A-8-507.5
;
(j)
(k)
the creation or financial support of a mediation program for landlords and 
tenants designed to minimize the loss of housing for low-income persons, which 
program may include:
(i)
funding for the hiring or training of mediators;
(ii)
connecting landlords and tenants with mediation services; and
(iii)
providing a limited amount of gap funding to assist a tenant in making a good 
faith payment towards attorney fees, damages, or other costs associated with 
eviction proceedings or avoiding eviction proceedings; and
(k)
(l)
other activities that will assist in minimizing homelessness or improving the 
availability or quality of housing in the state for low-income persons; and
(2)
do any act necessary or convenient to the exercise of the powers granted by this part or 
reasonably implied from those granted powers, including:
(a)
making or executing contracts and other instruments necessary or convenient for the 
performance of the executive director and board's duties and the exercise of the 
executive director and board's powers and functions under this part, including 
contracts or agreements for the servicing and originating of mortgage loans;
(b)
procuring insurance against a loss in connection with property or other assets held by 
the fund, including mortgage loans, in amounts and from insurers it considers 
desirable;
(c)
entering into agreements with a department, agency, or instrumentality of the United 
States or this state and with mortgagors and mortgage lenders for the purpose of 
planning and regulating and providing for the financing and refinancing, purchase, 
construction, reconstruction, rehabilitation, leasing, management, maintenance, 
operation, sale, or other disposition of residential housing undertaken with the 
assistance of the department under this part;
(d)
proceeding with a foreclosure action, to own, lease, clear, reconstruct, rehabilitate, 
repair, maintain, manage, operate, assign, encumber, sell, or otherwise dispose of real 
or personal property obtained by the fund due to the default on a mortgage loan held 
by the fund in preparation for disposition of the property, taking assignments of 
leases and rentals, proceeding with foreclosure actions, and taking other actions 
necessary or incidental to the performance of its duties; and
(e)
selling, at a public or private sale, with public bidding, a mortgage or other obligation 
held by the fund.
Section 8, Section 
51-12-101
 is amended to read:
51-12-101
. Definitions.
As used in this chapter:
(1)
"Attainable home" means a residence that costs the purchaser no more than the amount 
a qualifying residential unit may be purchased in accordance with 
Subsection 
63H-8-501
(6)(e)
Section 
63H-8-501
 at the time the state treasurer deposits with a 
qualified depository.
(2)
"Fund" means the Transportation Infrastructure General Fund Support Subfund created 
in Section 
72-2-134
.
(3)
"Political subdivision" means:
(a)
the municipality in which the attainable home is located; or
(b)
the county, if the attainable home is located in an unincorporated portion of the 
county.
(4)
"Qualified depository" means the same as that term is defined in Section 
51-7-3
.
(5)
(a)
"Qualified project" means a new construction housing development project in the 
state for which the developer:
(i)
commits to:
(A)
offering for sale no fewer than 60% of the total units within the project as 
attainable homes;
(B)
including in the deed of sale for an attainable home a restriction, in favor of 
the political subdivision, that the attainable home be owner occupied for no 
fewer than five years; and
(C)
having a plan to provide information to potential buyers of attainable homes 
about the First-Time Homebuyer Assistance Program created in Section 
63H-8-502
; and
(ii)
executes a valid agreement with the political subdivision to develop housing 
meeting the requirements of Subsections (5)(a)(i)(A) and (B).
(b)
"Qualified project" includes infrastructure within the housing development project.
Section 9, Section 
63H-8-501
 is amended to read:
63H-8-501
. Definitions.
As used in this part:
(1)
(a)
"First-time homebuyer" means an individual who satisfies:
(i)
the three-year requirement described in Section 143(d) of the Internal Revenue 
Code of 1986, as amended, and any corresponding federal regulations; and
(ii)
requirements made by the corporation by rule, as described in Section 
63H-8-502
.
(b)
"First-time homebuyer" includes a single parent, as defined by the corporation by 
rule made as described in Section 
63H-8-502
, who would meet the three-year 
requirement described in Subsection (1)(a)(i) but for a present ownership interest in a 
principal residence in which the single parent:
(i)
had a present ownership interest with the single parent's former spouse during the 
three-year period;
(ii)
resided while married during the three-year period; and
(iii)
no longer:
(A)
has a present ownership interest; or
(B)
resides.
(2)
"Home equity amount" means the difference between:
(a)
(i)
in the case of a sale, the sales price for which the qualifying residential unit is 
sold by the recipient in a bona fide sale to a third party with no right to repurchase 
less an amount up to 1% of the sales price used for seller-paid closing costs; or
(ii)
in the case of a refinance, the current appraised value of the qualifying residential 
unit; and
(b)
the total payoff amount of any qualifying mortgage loan that was used to finance the 
purchase of the qualifying residential unit.
(3)
"Program" means the First-Time Homebuyer Assistance Program created in Section 
63H-8-502
.
(4)
"Program funds" means money appropriated for the program.
(5)
"Qualifying mortgage loan" means a mortgage loan that:
(a)
is purchased by the corporation; and
(b)
is subject to a document that is recorded in the office of the county recorder of the 
county in which the residential unit is located.
(6)
"Qualifying residential unit" means a residential unit that:
(a)
is located in the state;
(b)
is new construction or newly constructed but not yet inhabited;
(c)
is financed by a qualifying mortgage loan;
(d)
is owner-occupied within 60 days of purchase, or in the case of a two-unit dwelling, 
at least one unit is owner-occupied within 60 days of purchase; and
(e)
is purchased for an amount that does not exceed:
(i)
$450,000; or
(ii)
if applicable, the maximum purchase price established by the corporation under 
Subsection 
63H-8-502
(6)
Section 
63H-8-502
.
(7)
"Recipient" means a first-time homebuyer who receives program funds.
(8)
(a)
"Residential unit" means a house, condominium, townhome, or similar residential 
structure that serves as a one-unit dwelling or forms part of a two-unit dwelling.
(b)
"Residential unit" includes a manufactured home or modular home that is attached to 
a permanent foundation.
Section 10, Section 
63H-8-502
 is amended to read:
63H-8-502
. First-Time Homebuyer Assistance Program.
(1)
There is created the First-Time Homebuyer Assistance Program administered by the 
corporation.
(2)
Subject to appropriations from the Legislature, the corporation shall distribute program 
funds to:
(a)
first-time homebuyers to provide support for the purchase of qualifying residential 
units; and
(b)
reimburse the corporation for a distribution of funds under Subsection (2)(a) that 
took place on or after July 1, 2023.
(3)
The maximum amount of program funds that a first-time homebuyer may receive under 
the program is $20,000.
(4)
(a)
A recipient may use program funds to pay for:
(i)
the down payment on a qualifying residential unit;
(ii)
closing costs associated with the purchase of a qualifying residential unit;
(iii)
a permanent reduction in the advertised par interest rate on a qualifying mortgage 
loan that is used to finance a qualifying residential unit; or
(iv)
any combination of Subsections (4)(a)(i), (ii), and (iii).
(b)
The corporation shall direct the disbursement of program funds for a purpose 
authorized in Subsection (4)(a).
(c)
A recipient may not receive a payout or distribution of program funds upon closing.
(5)
The builder or developer of a qualifying residential unit may not increase the price of 
the qualifying residential unit on the basis of program funds being used towards the 
purchase of that qualifying residential unit.
(6)
(a)
In accordance with rules made by the corporation under Subsection (9), the 
corporation may adjust the maximum purchase price of a qualifying residential unit 
for which a first-time homebuyer qualifies to receive program funds in order to 
reflect current market conditions.
(b)
In connection with an adjustment made under Subsection (6)(a), the corporation may 
establish one or more maximum purchase prices corresponding by residential unit 
type, geographic location, or any other factor the corporation considers relevant.
(c)
The corporation may adjust a maximum purchase price under this Subsection (6) no 
more frequently than once each calendar year.
(7)
(a)
Except as provided in Subsection (7)(b), if the recipient sells the qualifying 
residential unit or refinances the qualifying mortgage loan that was used to finance 
the purchase of the qualifying residential unit before the end of the original term of 
the qualifying mortgage loan, the recipient shall repay to the corporation an amount 
equal to the lesser of:
(i)
the amount of program funds the recipient received; or
(ii)
50% of the recipient's home equity amount.
(b)
Subsection (7)(a) does not apply to a qualifying mortgage loan that is refinanced 
with a new qualifying mortgage loan if any subordinate qualifying mortgage loan, or 
loan from program funds used on the purchase of the qualifying residential unit, is 
resubordinated only to the new qualifying mortgage loan.
(8)
Any funds repaid to the corporation under Subsection (7) shall be used for program 
distributions.
(9)
The corporation shall make rules governing the application form, process, and criteria 
the corporation will use to distribute program funds to first-time homebuyers, in 
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(9)
Subject to Subsection (9)(b), the corporation shall make rules, in accordance with Title 
63G, Chapter 3, Utah Administrative Rulemaking Act:
(a)
governing the application form, process, and criteria the corporation will use to 
distribute program funds to first-time homebuyers; and
(b)
subject to appropriations from the Legislature, establishing an incentive program for 
qualified borrowers to utilize funding from the subordinate shared appreciation loan 
program for the purposes of assisting with the purchase of construction liability 
insurance for a qualifying condominium project.
(10)
The corporation may use up to 5% of program funds for administration.
(11)
The corporation shall report annually to the 
Social Services Appropriations 
Subcommittee
Economic and Community Development Appropriations Subcommittee
on disbursements from the program and any adjustments made to the maximum 
purchase price or maximum purchase prices of a qualifying residential unit under 
Subsection (6).
Section 11. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
3-13-25 10:36 AM