Signed by Governor Spencer Cox

Vote Smart's Synopsis:

Vote to pass a bill that establishes the Utah first time Homebuyer Assistance Program.

Highlights:

• Establishes the First-Time Homebuyer assistance Program administered by the Utah Housing Corporation (Sec. 2).

• Requires that the corporation distribute program funds to first-time homebuyers to provide support for the purchase of qualifying residential units (Sec. 2).

• Limits the maximum amount of program funds a first-time homebuyer may receive to $20,000 (Sec. 2).

• Authorizes a recipient to use program funds for (Sec. 2):

• The down payment on a qualifying residential unit;

• Closing costs associated with the purchase;

• A permanent reduction in the advertised par interest rate in a qualifying mortgage loan used to finance a qualifying residential unit.

• Prohibits the builder or developer from increasing the price of the home on the basis of program funds being used (Sec. 2).

• Authorizes the corporation to adjust the maximum purchase price of a qualifying residential unit inorder to reflect current market conditions, provided that the corporation adjusts the maximum purchase price no more than once each calendar year (Sec. 2).

• Requires that id the recipient sells or refinances before the end of the original term of the qualifying loan, they pay the corporation an amount equal to the lesser of (Sec. 2):

• The amount of funds received;

• 50% of the recipient’s home equity amount.

• Authorizes the corporation to use up to 5% of program funds for administration (Sec. 2).

• Requires that the corporation report annually to the Social Services Appropriations Subcommittee on disbursements from the program and any adjustments made to the maximum purchase price of a qualifying residential unit (Sec. 2).

• Specifies that this bill takes effect on July 1, 2023 (Sec. 3).

Full Bill Text