03-05 15:09 2nd Sub. (Salmon) S.B. 262
Lincoln Fillmore proposes the following substitute bill:
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Housing Affordability Modifications
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore
House Sponsor: Stephen L. Whyte
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LONG TITLE
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General Description:
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This bill amends provisions related to affordable housing.
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Highlighted Provisions:
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This bill:
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▸ defines terms;
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▸ amends provisions allowing revenue from a home ownership promotion zone to be used
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for certain purposes;
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▸ allows a county and municipality to use home ownership promotion zone funds for all or
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part of water exaction, street lighting, and environmental remediation costs;
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▸ requires a county to comply with land use provisions Ĥ→ [beginning May 7, 2025]
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for all pending and new land use applications ←Ĥ ;
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▸ directs the Utah Housing Corporation to make rules regarding:
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● procedures, qualifications, and requirements for private financial institutions that offer
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certain mortgage loans to first-time homebuyers; and
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● the creation of an incentive program for qualified buyers to assist certain borrowers
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with the purchase of liability insurance for certain qualifying projects;
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▸ provides that first-time home buyers may use certain mortgage loans for specified
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purposes;
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▸ creates a subordinate shared appreciation loan program to be administered by the
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Department of Workforce Services to assist borrowers for certain purposes; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
2nd Sub. S.B. 262 2nd Sub. (Salmon) S.B. 262 03-05 15:09
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Utah Code Sections Affected:
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AMENDS:
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10-9a-1005, as enacted by Laws of Utah 2024, Chapter 431
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17-27a-508, as last amended by Laws of Utah 2024, Chapter 415
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17-27a-1205, as enacted by Laws of Utah 2024, Chapter 431
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35A-8-505, as last amended by Laws of Utah 2021, Chapters 102, 333
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51-12-101, as enacted by Laws of Utah 2024, Chapter 510
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63H-8-501, as last amended by Laws of Utah 2024, Chapter 431
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63H-8-502, as last amended by Laws of Utah 2024, Chapter 431
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ENACTS:
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35A-8-504.6, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 10-9a-1005 is amended to read:
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10-9a-1005 . Payment, use, and administration of revenue from a home
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ownership promotion zone.
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(1)(a) A municipality may receive tax increment and use home ownership promotion
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zone funds in accordance with this section.
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(b) The maximum amount of time that a municipality may receive and use tax increment
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pursuant to a home ownership promotion zone is 15 consecutive years.
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(2) A county that collects property tax on property located within a home ownership
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promotion zone shall, in accordance with Section 59-2-1365, distribute 60% of the tax
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increment collected from property within the home ownership promotion zone to the
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municipality over the home ownership promotion zone to be used as described in this
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section.
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(3)(a) Tax increment distributed to a municipality in accordance with Subsection (2) is
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not revenue of the taxing entity or municipality, but home ownership promotion zone
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funds.
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(b) Home ownership promotion zone funds may be administered by an agency created
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by the municipality within which the home ownership promotion zone is located.
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(c) Before an agency may receive home ownership promotion zone funds from a
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municipality, the agency shall enter into an interlocal agreement with the
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municipality.
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(4)(a) A municipality or agency shall use home ownership promotion zone funds within,
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or for the direct benefit of, the home ownership promotion zone.
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(b) If any home ownership promotion zone funds will be used outside of the home
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ownership promotion zone, the legislative body of the municipality shall make a
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finding that the use of the home ownership promotion zone funds outside of the home
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ownership promotion zone will directly benefit the home ownership promotion zone.
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(5) A municipality or agency shall use home ownership promotion zone funds to achieve
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the purposes described in Section 10-9a-1003 by paying all or part of the costs of any of
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the following:
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(a) project improvement costs;
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(b) systems improvement costs;[ or]
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(c) water exaction costs;
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(d) street lighting costs;
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(e) environmental remediation costs; or
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[(c)] (f) the costs of the municipality or agency to create and administer the home
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ownership promotion zone, which may not exceed 3% of the total home ownership
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promotion zone funds.
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(6) Home ownership promotion zone funds may be paid to a participant, if the municipality
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and participant enter into a participation agreement which requires the participant to
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utilize the home ownership promotion zone funds as allowed in this section.
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(7) Home ownership promotion zone funds may be used to pay all of the costs of bonds
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issued by the municipality in accordance with Title 17C, Chapter 1, Part 5, Agency
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Bonds, including the cost to issue and repay the bonds including interest.
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(8) A municipality may:
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(a) create one or more public infrastructure districts within a home ownership promotion
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zone under Title 17D, Chapter 4, Public Infrastructure District Act; and
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(b) pledge and utilize the home ownership promotion zone funds to guarantee the
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payment of public infrastructure bonds issued by a public infrastructure district.
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Section 2. Section 17-27a-508 is amended to read:
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17-27a-508 . Applicant's entitlement to land use application approval --
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Application relating to land in a high priority transportation corridor -- County's
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requirements and limitations -- Vesting upon submission of development plan and
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schedule.
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(1)(a)(i) [An] Subject to Subsection (7), an applicant who has submitted a complete
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land use application, including the payment of all application fees, is entitled to
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substantive review of the application under the land use regulations:
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(A) in effect on the date that the application is complete; and
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(B) applicable to the application or to the information shown on the submitted
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application.
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(ii) An applicant is entitled to approval of a land use application if the application
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conforms to the requirements of the applicable land use regulations, land use
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decisions, and development standards in effect when the applicant submits a
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complete application and pays all application fees, unless:
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(A) the land use authority, on the record, formally finds that a compelling,
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countervailing public interest would be jeopardized by approving the
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application and specifies the compelling, countervailing public interest in
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writing; or
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(B) in the manner provided by local ordinance and before the applicant submits
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the application, the county formally initiates proceedings to amend the county's
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land use regulations in a manner that would prohibit approval of the
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application as submitted.
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(b) The county shall process an application without regard to proceedings the county
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initiated to amend the county's ordinances as described in Subsection (1)(a)(ii)(B) if:
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(i) 180 days have passed since the county initiated the proceedings; and
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(ii)(A) the proceedings have not resulted in an enactment that prohibits approval
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of the application as submitted; or
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(B) during the 12 months prior to the county processing the application or
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multiple applications of the same type, the application is impaired or prohibited
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under the terms of a temporary land use regulation adopted under Section
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17-27a-504.
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(c) A land use application is considered submitted and complete when the applicant
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provides the application in a form that complies with the requirements of applicable
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ordinances and pays all applicable fees.
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(d) Unless a phasing sequence is required in an executed development agreement, a
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county shall, without regard to any other separate and distinct land use application,
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accept and process a complete land use application in accordance with this chapter.
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(e) The continuing validity of an approval of a land use application is conditioned upon
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the applicant proceeding after approval to implement the approval with reasonable
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diligence.
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(f) [A] Subject to Subsection (7), a county may not impose on an applicant who has
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submitted a complete application a requirement that is not expressed in:
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(i) this chapter;
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(ii) a county ordinance in effect on the date that the applicant submits a complete
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application, subject to Subsection (1)(a)(ii); or
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(iii) a county specification for public improvements applicable to a subdivision or
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development that is in effect on the date that the applicant submits an application.
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(g) A county may not impose on a holder of an issued land use permit or a final,
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unexpired subdivision plat a requirement that is not expressed:
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(i) in a land use permit;
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(ii) on the subdivision plat;
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(iii) in a document on which the land use permit or subdivision plat is based;
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(iv) in the written record evidencing approval of the land use permit or subdivision
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plat;
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(v) in this chapter;
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(vi) in a county ordinance; or
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(vii) in a county specification for residential roadways in effect at the time a
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residential subdivision was approved.
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(h) Except as provided in Subsection (1)(i) or (j), a county may not withhold issuance of
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a certificate of occupancy or acceptance of subdivision improvements because of an
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applicant's failure to comply with a requirement that is not expressed:
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(i) in the building permit or subdivision plat, documents on which the building permit
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or subdivision plat is based, or the written record evidencing approval of the
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building permit or subdivision plat; or
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(ii) in this chapter or the county's ordinances.
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(i) A county may not unreasonably withhold issuance of a certificate of occupancy
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where an applicant has met all requirements essential for the public health, public
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safety, and general welfare of the occupants, in accordance with this chapter, unless:
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(i) the applicant and the county have agreed in a written document to the withholding
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of a certificate of occupancy; or
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(ii) the applicant has not provided a financial assurance for required and uncompleted
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public landscaping improvements or infrastructure improvements in accordance
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with an applicable ordinance that the legislative body adopts under this chapter.
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(j) A county may not conduct a final inspection required before issuing a certificate of
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occupancy for a residential unit that is within the boundary of an infrastructure
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financing district, as defined in Section 17B-1-102, until the applicant for the
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certificate of occupancy provides adequate proof to the county that any lien on the
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unit arising from the infrastructure financing district's assessment against the unit
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under Title 11, Chapter 42, Assessment Area Act, has been released after payment in
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full of the infrastructure financing district's assessment against that unit.
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(2) A county is bound by the terms and standards of applicable land use regulations and
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shall comply with mandatory provisions of those regulations.
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(3) A county may not, as a condition of land use application approval, require a person
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filing a land use application to obtain documentation regarding a school district's
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willingness, capacity, or ability to serve the development proposed in the land use
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application.
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(4) [Upon ] Subject to Subsection (7), a specified public agency's submission of a
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development plan and schedule as required in Subsection 17-27a-305(8) that complies
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with the requirements of that subsection, the specified public agency vests in the
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county's applicable land use maps, zoning map, hookup fees, impact fees, other
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applicable development fees, and land use regulations in effect on the date of submission.
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(5)(a) If sponsors of a referendum timely challenge a project in accordance with
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Subsection 20A-7-601(6), the project's affected owner may rescind the project's land
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use approval by delivering a written notice:
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(i) to the local clerk as defined in Section 20A-7-101; and
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(ii) no later than seven days after the day on which a petition for a referendum is
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determined sufficient under Subsection 20A-7-607(4).
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(b) Upon delivery of a written notice described in Subsection(5)(a) the following are
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rescinded and are of no further force or effect:
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(i) the relevant land use approval; and
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(ii) any land use regulation enacted specifically in relation to the land use approval.
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(6)(a) After issuance of a building permit, a county may not:
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(i) change or add to the requirements expressed in the building permit, unless the
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change or addition is:
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(A) requested by the building permit holder; or
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(B) necessary to comply with an applicable state building code; or
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(ii) revoke the building permit or take action that has the effect of revoking the
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building permit.
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(b) Subsection (6)(a) does not prevent a county from issuing a building permit that
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contains an expiration date defined in the building permit.
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(7) Ĥ→ [Beginning on May 7, 2025, a] A ←Ĥ county shall comply with the provisions
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of this Ĥ→ [part] chapter ←Ĥ
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regarding Ĥ→ [a] all ←Ĥ pending land use Ĥ→ [application] applications ←Ĥ Ĥ→ [
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or] and ←Ĥ new land use Ĥ→ [application] applications ←Ĥ submitted under
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this chapter.
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Section 3. Section 17-27a-1205 is amended to read:
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17-27a-1205 . Payment, use, and administration of revenue from a home
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ownership promotion zone.
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(1)(a) A county may receive tax increment and use home ownership promotion zone
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funds in accordance with this section.
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(b) The maximum amount of time that a county may receive and use tax increment
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pursuant to a home ownership promotion zone is 15 consecutive years.
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(2) A county that collects property tax on property located within a home ownership
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promotion zone shall, in accordance with Section 59-2-1365, retain 60% of the tax
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increment collected from property within the home ownership promotion zone to be
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used as described in this section.
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(3)(a) Tax increment retained by a county in accordance with Subsection (2) is not
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revenue of the taxing entity or county, but home ownership promotion zone funds.
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(b) Home ownership promotion zone funds may be administered by an agency created
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by the county within which the home ownership promotion zone is located.
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(c) Before an agency may receive home ownership promotion zone funds from a county,
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the agency shall enter into an interlocal agreement with the county.
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(4)(a) A county or agency shall use home ownership promotion zone funds within, or for
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the direct benefit of, the home ownership promotion zone.
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(b) If any home ownership promotion zone funds will be used outside of the home
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ownership promotion zone, the legislative body of the county shall make a finding
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that the use of the home ownership promotion zone funds outside of the home
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ownership promotion zone will directly benefit the home ownership promotion zone.
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(5) A county or agency shall use home ownership promotion zone funds to achieve the
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purposes described in Section 17-27a-1203 by paying all or part of the costs of any of
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the following:
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(a) project improvement costs;
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(b) systems improvement costs;[ or]
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(c) water exaction costs;
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(d) street lighting costs;
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(e) environmental remediation costs; or
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[(c)] (f) the costs of the county to create and administer the home ownership promotion
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zone, which may not exceed 3% of the total home ownership promotion zone funds.
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(6) Home ownership promotion zone funds may be paid to a participant, if the county and
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participant enter into a participation agreement which requires the participant to utilize
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the home ownership promotion zone funds as allowed in this section.
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(7) Home ownership promotion zone funds may be used to pay all of the costs of bonds
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issued by the county in accordance with Title 17C, Chapter 1, Part 5, Agency Bonds,
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including the cost to issue and repay the bonds including interest.
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(8) A county may:
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(a) create one or more public infrastructure districts within home ownership promotion
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zone under Title 17D, Chapter 4, Public Infrastructure District Act; and
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(b) pledge and utilize the home ownership promotion zone funds to guarantee the
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payment of public infrastructure bonds issued by a public infrastructure district.
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Section 4. Section 35A-8-504.6 is enacted to read:
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35A-8-504.6 . Subordinate shared appreciation loan program.
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(1) As used in this section:
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(a) "Qualifying applicant" means a non-profit entity or a partnership of non-profit
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entities that provides or purchases subordinate shared appreciation loans.
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(b) "Qualifying mortgage loan" means a mortgage loan that is originated, purchased, or
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serviced by a private financial institution or sold to a government-sponsored
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enterprise, if:
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(i) the loan conforms to the borrower's income, property eligibility, and credit
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standards;
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(ii) the loan is secured by a recorded deed of trust or other instrument securing a
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mortgage loan and constituting a lien on real property in the county in which the
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home is located; and
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(iii) the loan is an amortizing first mortgage loan.
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(c)(i) "Subordinate shared appreciation loan" means a loan that does not exceed
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$150,000, and that:
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(A) is secured by an owner-occupied residential property for which the borrower
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agrees to repay the principal borrowed plus a proportionate share of the home
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price appreciation during the term of the loan;
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(B) has flexible repayment terms in accordance with applicable state and federal
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laws;
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(C) is non-interest bearing and has no set monthly payment obligation;
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(D) does not impose a shared appreciation repayment percentage obligation that
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exceeds the percentage of the home value represented by the amount borrowed
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at origination;
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(E) does not have a combined loan-to-value ratio that exceeds 105%;
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(F) does not impose a prepayment fee or penalty; and
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(G) is subordinate to a first mortgage loan.
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(ii) "Subordinate shared appreciation loan" includes a loan to a qualifying borrower
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for the purpose of assisting the borrower in the purchase of construction liability
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insurance for a condominium project as established in rule by the Utah Housing
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Corporation in accordance with Section 63H-8-502.
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(d) "Subordinate shared appreciation loan program" means the loan program created in
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this section.
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(2) There is a created the subordinate shared appreciation loan program administered by the
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department.
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(3) Subject to appropriations from the Legislature, the department shall distribute program
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funds to a qualifying applicant that:
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(a) completes an application; and
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(b) meets the requirements described under Subsection (1)(b)(i) or (1)(b)(ii).
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(4) The executive director may make rules in accordance with Title 63G, Chapter 3, Utah
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Administrative Rulemaking Act, to carry out the purposes of this section.
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(5)(a) Subject to the provisions of Subsection (9), program funds shall only be used for a
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qualifying residential unit, as that term is defined in Section 63H-8-501.
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(b) Program funds shall only be distributed in conjunction with matching private funding
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that is no less than a 75% private funds and 25% program funds split.
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(c) A recipient of a subordinate shared appreciation loan may use the funds for the same
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purposes described in Section 63H-8-502.
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(6) If a subordinate shared appreciation loan on the qualifying residential unit is refinanced
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or sold, state funds, including associated fees, used to secure the mortgage loan shall be
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returned to the qualifying applicant.
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(7) The department may, in cooperation with the Utah Housing Corporation, promote the
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program to qualifying applicants to support the first-time homebuyer assistance program
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under Title 63H, Chapter 8, Part 5, First-Time Homebuyer Assistance Program.
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(8) The department shall include in the annual report required by Section 35A-1-109 the
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following information:
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(a) the number of approved loans under the program;
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(b) the total dollar amount of program funds loaned and the corresponding private
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matching funds;
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(c) the total dollar amount of funds reinvested into the program;
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(d) the total dollar amount of payoff and, if applicable, default of active loans; and
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(e) the approximate dollar value of the total number of loans provided under the program
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based upon the current home price index.
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(9) The executive director may expend up to 5% of the revenues of the program, including
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any appropriation to the program, to offset department administrative expenses.
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(10) The department may not accept applications for the program after September 1, 2025.
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Section 5. Section 35A-8-505 is amended to read:
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35A-8-505 . Activities authorized to receive fund money -- Powers of the
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executive director.
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At the direction of the board, the executive director may:
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(1) provide fund money to any of the following activities:
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(a) the acquisition, rehabilitation, or new construction of low-income housing units;
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(b) matching funds for social services projects directly related to providing housing for
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special-need renters in assisted projects;
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(c) the development and construction of accessible housing designed for low-income
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persons;
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(d) the construction or improvement of a shelter or transitional housing facility that
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provides services intended to prevent or minimize homelessness among members of a
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specific homeless subpopulation;
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(e) the purchase of an existing facility to provide temporary or transitional housing for
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the homeless in an area that does not require rezoning before providing such
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temporary or transitional housing;
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(f) the purchase of land that will be used as the site of low-income housing units;
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(g) the preservation of existing affordable housing units for low-income persons;
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(h) providing loan guarantees under the two-year pilot program established in Section
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35A-8-504.5;
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(i) distribute funds to a qualifying applicant under the subordinate shared appreciation
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mortgage loan program established in Section 35A-8-504.6;
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[(i)] (j) the award of predevelopment grants in accordance with Section 35A-8-507.5;
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[(j)] (k) the creation or financial support of a mediation program for landlords and
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tenants designed to minimize the loss of housing for low-income persons, which
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program may include:
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(i) funding for the hiring or training of mediators;
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(ii) connecting landlords and tenants with mediation services; and
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(iii) providing a limited amount of gap funding to assist a tenant in making a good
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faith payment towards attorney fees, damages, or other costs associated with
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eviction proceedings or avoiding eviction proceedings; and
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[(k)] (l) other activities that will assist in minimizing homelessness or improving the
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availability or quality of housing in the state for low-income persons; and
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(2) do any act necessary or convenient to the exercise of the powers granted by this part or
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reasonably implied from those granted powers, including:
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(a) making or executing contracts and other instruments necessary or convenient for the
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performance of the executive director and board's duties and the exercise of the
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executive director and board's powers and functions under this part, including
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contracts or agreements for the servicing and originating of mortgage loans;
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(b) procuring insurance against a loss in connection with property or other assets held by
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the fund, including mortgage loans, in amounts and from insurers it considers
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desirable;
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(c) entering into agreements with a department, agency, or instrumentality of the United
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States or this state and with mortgagors and mortgage lenders for the purpose of
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planning and regulating and providing for the financing and refinancing, purchase,
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construction, reconstruction, rehabilitation, leasing, management, maintenance,
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operation, sale, or other disposition of residential housing undertaken with the
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assistance of the department under this part;
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(d) proceeding with a foreclosure action, to own, lease, clear, reconstruct, rehabilitate,
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repair, maintain, manage, operate, assign, encumber, sell, or otherwise dispose of real
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or personal property obtained by the fund due to the default on a mortgage loan held
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by the fund in preparation for disposition of the property, taking assignments of
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leases and rentals, proceeding with foreclosure actions, and taking other actions
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necessary or incidental to the performance of its duties; and
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(e) selling, at a public or private sale, with public bidding, a mortgage or other obligation
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held by the fund.
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Section 6. Section 51-12-101 is amended to read:
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51-12-101 . Definitions.
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As used in this chapter:
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(1) "Attainable home" means a residence that costs the purchaser no more than the amount
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a qualifying residential unit may be purchased in accordance with [Subsection
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63H-8-501(6)(e)] Section 63H-8-501 at the time the state treasurer deposits with a
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qualified depository.
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(2) "Fund" means the Transportation Infrastructure General Fund Support Subfund created
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in Section 72-2-134.
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(3) "Political subdivision" means:
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(a) the municipality in which the attainable home is located; or
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(b) the county, if the attainable home is located in an unincorporated portion of the
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county.
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(4) "Qualified depository" means the same as that term is defined in Section 51-7-3.
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(5)(a) "Qualified project" means a new construction housing development project in the
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state for which the developer:
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(i) commits to:
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(A) offering for sale no fewer than 60% of the total units within the project as
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attainable homes;
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(B) including in the deed of sale for an attainable home a restriction, in favor of
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the political subdivision, that the attainable home be owner occupied for no
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fewer than five years; and
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(C) having a plan to provide information to potential buyers of attainable homes
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about the First-Time Homebuyer Assistance Program created in Section
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63H-8-502; and
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(ii) executes a valid agreement with the political subdivision to develop housing
395
meeting the requirements of Subsections (5)(a)(i)(A) and (B).
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(b) "Qualified project" includes infrastructure within the housing development project.
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Section 7. Section 63H-8-501 is amended to read:
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63H-8-501 . Definitions.
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As used in this part:
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(1)(a) "First-time homebuyer" means an individual who satisfies:
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(i) the three-year requirement described in Section 143(d) of the Internal Revenue
402
Code of 1986, as amended, and any corresponding federal regulations; and
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(ii) requirements made by the corporation by rule, as described in Section 63H-8-502.
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(b) "First-time homebuyer" includes a single parent, as defined by the corporation by
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rule made as described in Section 63H-8-502, who would meet the three-year
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requirement described in Subsection (1)(a)(i) but for a present ownership interest in a
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principal residence in which the single parent:
408
(i) had a present ownership interest with the single parent's former spouse during the
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three-year period;
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(ii) resided while married during the three-year period; and
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(iii) no longer:
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(A) has a present ownership interest; or
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(B) resides.
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(2) "Home equity amount" means the difference between:
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(a)(i) in the case of a sale, the sales price for which the qualifying residential unit is
416
sold by the recipient in a bona fide sale to a third party with no right to repurchase
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less an amount up to 1% of the sales price used for seller-paid closing costs; or
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(ii) in the case of a refinance, the current appraised value of the qualifying residential
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unit; and
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(b) the total payoff amount of any qualifying mortgage loan that was used to finance the
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purchase of the qualifying residential unit.
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(3) "Program" means the First-Time Homebuyer Assistance Program created in Section
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63H-8-502.
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(4) "Program funds" means money appropriated for the program.
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(5) "Qualifying mortgage loan" means a mortgage loan that:
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(a) is purchased by the corporation; and
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(b) is subject to a document that is recorded in the office of the county recorder of the
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county in which the residential unit is located.
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(6) "Qualifying residential unit" means a residential unit that:
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(a) is located in the state;
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(b) is new construction or newly constructed but not yet inhabited;
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(c) is financed by a qualifying mortgage loan;
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(d) is owner-occupied within 60 days of purchase, or in the case of a two-unit dwelling,
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at least one unit is owner-occupied within 60 days of purchase; and
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(e) is purchased for an amount that does not exceed:
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(i) $450,000; or
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(ii) if applicable, the maximum purchase price established by the corporation under [
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Subsection 63H-8-502(6)] Section 63H-8-502.
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(7) "Recipient" means a first-time homebuyer who receives program funds.
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(8)(a) "Residential unit" means a house, condominium, townhome, or similar residential
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structure that serves as a one-unit dwelling or forms part of a two-unit dwelling.
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(b) "Residential unit" includes a manufactured home or modular home that is attached to
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a permanent foundation.
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Section 8. Section 63H-8-502 is amended to read:
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63H-8-502 . First-Time Homebuyer Assistance Program.
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(1) There is created the First-Time Homebuyer Assistance Program administered by the
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corporation.
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(2) Subject to appropriations from the Legislature, the corporation shall distribute program
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funds to:
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(a) first-time homebuyers to provide support for the purchase of qualifying residential
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units; and
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(b) reimburse the corporation for a distribution of funds under Subsection (2)(a) that
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took place on or after July 1, 2023.
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(3) The maximum amount of program funds that a first-time homebuyer may receive under
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the program is $20,000.
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(4)(a) A recipient may use program funds to pay for:
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(i) the down payment on a qualifying residential unit;
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(ii) closing costs associated with the purchase of a qualifying residential unit;
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(iii) a permanent reduction in the advertised par interest rate on a qualifying mortgage
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loan that is used to finance a qualifying residential unit; or
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(iv) any combination of Subsections (4)(a)(i), (ii), and (iii).
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(b) The corporation shall direct the disbursement of program funds for a purpose
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authorized in Subsection (4)(a).
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(c) A recipient may not receive a payout or distribution of program funds upon closing.
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(5) The builder or developer of a qualifying residential unit may not increase the price of
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the qualifying residential unit on the basis of program funds being used towards the
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purchase of that qualifying residential unit.
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(6)(a) In accordance with rules made by the corporation under Subsection (9), the
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corporation may adjust the maximum purchase price of a qualifying residential unit
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for which a first-time homebuyer qualifies to receive program funds in order to
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reflect current market conditions.
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(b) In connection with an adjustment made under Subsection (6)(a), the corporation may
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establish one or more maximum purchase prices corresponding by residential unit
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type, geographic location, or any other factor the corporation considers relevant.
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(c) The corporation may adjust a maximum purchase price under this Subsection (6) no
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more frequently than once each calendar year.
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(7)(a) Except as provided in Subsection (7)(b), if the recipient sells the qualifying
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residential unit or refinances the qualifying mortgage loan that was used to finance
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the purchase of the qualifying residential unit before the end of the original term of
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the qualifying mortgage loan, the recipient shall repay to the corporation an amount
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equal to the lesser of:
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(i) the amount of program funds the recipient received; or
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(ii) 50% of the recipient's home equity amount.
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(b) Subsection (7)(a) does not apply to a qualifying mortgage loan that is refinanced
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with a new qualifying mortgage loan if any subordinate qualifying mortgage loan, or
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loan from program funds used on the purchase of the qualifying residential unit, is
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resubordinated only to the new qualifying mortgage loan.
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(8) Any funds repaid to the corporation under Subsection (7) shall be used for program
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distributions.
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[(9) The corporation shall make rules governing the application form, process, and criteria
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the corporation will use to distribute program funds to first-time homebuyers, in
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accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.]
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(9) Subject to Subsection (9)(b), the corporation shall make rules, in accordance with Title
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63G, Chapter 3, Utah Administrative Rulemaking Act:
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(a) governing the application form, process, and criteria the corporation will use to
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distribute program funds to first-time homebuyers; and
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(b) subject to appropriations from the Legislature, establishing an incentive program for
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qualified borrowers to utilize funding from the subordinate shared appreciation loan
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program for the purposes of assisting with the purchase of construction liability
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insurance for a qualifying condominium project.
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(10) The corporation may use up to 5% of program funds for administration.
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(11) The corporation shall report annually to the [Social Services Appropriations
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Subcommittee] Economic and Community Development Appropriations Subcommittee
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on disbursements from the program and any adjustments made to the maximum
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purchase price or maximum purchase prices of a qualifying residential unit under
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Subsection (6).
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Section 9. Effective Date.
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This bill takes effect on May 7, 2025.
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