Utah 2025 Regular Session

Utah Senate Bill SB0262 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Enrolled Copy S.B. 262
	1	+	03-05 18:26 3rd Sub. (Ivory) S.B. 262
	2	+	Calvin Roberts proposes the following substitute bill:
2	3		1
3	4		Housing Affordability Modifications
4	5		2025 GENERAL SESSION
5	6		STATE OF UTAH
6	7		Chief Sponsor: Lincoln Fillmore
7	8		House Sponsor: Stephen L. Whyte
8	9		2
9	10
10	11		3
11	12		LONG TITLE
12	13		4
13	14		General Description:
14	15		5
15	16		This bill amends provisions related to affordable housing.
16	17		6
17	18		Highlighted Provisions:
18	19		7
19	20		This bill:
20	21		8
21	22		▸ defines terms;
22	23		9
23	24		▸ amends provisions allowing revenue from a home ownership promotion zone to be used
24	25		10
25	26		for certain purposes;
26	27		11
27	28		▸ enacts provisions allowing legislative bodies to settle certain litigation through a consent
28	29		12
29	30		agreement;
30	31		13
31	32		▸ allows a county and municipality to use home ownership promotion zone funds for all or
32	33		14
33	34		part of water exaction, street lighting, and environmental remediation costs;
34	35		15
35	36		▸ requires a county to comply with land use provisions for all pending and new land use
36	37		16
37	38		applications;
38	39		17
39	40		▸ directs the Utah Housing Corporation to make rules regarding:
40	41		18
41	42		● procedures, qualifications, and requirements for private financial institutions that offer
42	43		19
43	44		certain mortgage loans to first-time homebuyers; and
44	45		20
45	46		● the creation of an incentive program for qualified buyers to assist certain borrowers
46	47		21
47	48		with the purchase of liability insurance for certain qualifying projects;
48	49		22
49	50		▸ provides that first-time home buyers may use certain mortgage loans for specified
50	51		23
51	52		purposes;
52	53		24
53	54		▸ creates a subordinate shared appreciation loan program to be administered by the
54	55		25
55	56		Department of Workforce Services to assist borrowers for certain purposes; and
56	57		26
57	58		▸ makes technical and conforming changes.
58	59		27
59		-	Money Appropriated in this Bill: ~~S.B. 262 Enrolled Copy~~
	60	+	Money Appropriated in this Bill:
60	61		28
61	62		None
	63	+	3rd Sub. S.B. 262 3rd Sub. (Ivory) S.B. 262 03-05 18:26
62	64		29
63	65		Other Special Clauses:
64	66		30
65	67		None
66	68		31
67	69		Utah Code Sections Affected:
68	70		32
69	71		AMENDS:
70	72		33
71	73		10-9a-1005, as enacted by Laws of Utah 2024, Chapter 431
72	74		34
73	75		17-27a-508, as last amended by Laws of Utah 2024, Chapter 415
74	76		35
75	77		17-27a-1205, as enacted by Laws of Utah 2024, Chapter 431
76	78		36
77	79		35A-8-505, as last amended by Laws of Utah 2021, Chapters 102, 333
78	80		37
79	81		51-12-101, as enacted by Laws of Utah 2024, Chapter 510
80	82		38
81	83		63H-8-501, as last amended by Laws of Utah 2024, Chapter 431
82	84		39
83	85		63H-8-502, as last amended by Laws of Utah 2024, Chapter 431
84	86		40
85	87		ENACTS:
86	88		41
87	89		10-9a-804, Utah Code Annotated 1953
88	90		42
89	91		17-27a-804, Utah Code Annotated 1953
90	92		43
91	93		35A-8-504.6, Utah Code Annotated 1953
92	94		44
93	95
94	96		45
95	97		Be it enacted by the Legislature of the state of Utah:
96	98		46
97	99		Section 1. Section 10-9a-804 is enacted to read:
98	100		47
99	101		10-9a-804 . Consent agreement.
100	102		48
101		-	(1) A legislative body may, by resolution or ordinance, settle litigation initiated under
	103	+	(1) A legislative body may by resolution or ordinance settle litigation initiated under
102	104		49
103	105		Section 10-9a-801 regarding a land use decision with a property owner through a
104	106		50
105	107		consent agreement.
106	108		51
107	109		(2) A legislative body shall approve the consent agreement under Subsection (1) in a public
108	110		52
109	111		meeting in accordance with Title 52, Chapter 4, Open and Public Meetings Act.
110	112		53
111	113		(3) A legislative body is not required to present to a planning commission on any matter
112	114		54
113	115		covered by a consent agreement.
114	116		55
115	117		Section 2. Section 10-9a-1005 is amended to read:
116	118		56
117	119		10-9a-1005 . Payment, use, and administration of revenue from a home
118	120		57
119	121		ownership promotion zone.
120	122		58
121	123		(1)(a) A municipality may receive tax increment and use home ownership promotion
122	124		59
123	125		zone funds in accordance with this section.
124	126		60
125	127		(b) The maximum amount of time that a municipality may receive and use tax increment
126	128		61
127	129		pursuant to a home ownership promotion zone is 15 consecutive years.
128		-	- 2 - Enrolled Copy S.B. 262
129	130		62
130	131		(2) A county that collects property tax on property located within a home ownership
	132	+	- 2 - 03-05 18:26 3rd Sub. (Ivory) S.B. 262
131	133		63
132	134		promotion zone shall, in accordance with Section 59-2-1365, distribute 60% of the tax
133	135		64
134	136		increment collected from property within the home ownership promotion zone to the
135	137		65
136	138		municipality over the home ownership promotion zone to be used as described in this
137	139		66
138	140		section.
139	141		67
140	142		(3)(a) Tax increment distributed to a municipality in accordance with Subsection (2) is
141	143		68
142	144		not revenue of the taxing entity or municipality, but home ownership promotion zone
143	145		69
144	146		funds.
145	147		70
146	148		(b) Home ownership promotion zone funds may be administered by an agency created
147	149		71
148	150		by the municipality within which the home ownership promotion zone is located.
149	151		72
150	152		(c) Before an agency may receive home ownership promotion zone funds from a
151	153		73
152	154		municipality, the agency shall enter into an interlocal agreement with the
153	155		74
154	156		municipality.
155	157		75
156	158		(4)(a) A municipality or agency shall use home ownership promotion zone funds within,
157	159		76
158	160		or for the direct benefit of, the home ownership promotion zone.
159	161		77
160	162		(b) If any home ownership promotion zone funds will be used outside of the home
161	163		78
162	164		ownership promotion zone, the legislative body of the municipality shall make a
163	165		79
164	166		finding that the use of the home ownership promotion zone funds outside of the home
165	167		80
166	168		ownership promotion zone will directly benefit the home ownership promotion zone.
167	169		81
168	170		(5) A municipality or agency shall use home ownership promotion zone funds to achieve
169	171		82
170	172		the purposes described in Section 10-9a-1003 by paying all or part of the costs of any of
171	173		83
172	174		the following:
173	175		84
174	176		(a) project improvement costs;
175	177		85
176	178		(b) systems improvement costs;[ or]
177	179		86
178	180		(c) water exaction costs;
179	181		87
180	182		(d) street lighting costs;
181	183		88
182	184		(e) environmental remediation costs; or
183	185		89
184	186		[(c)] (f) the costs of the municipality or agency to create and administer the home
185	187		90
186	188		ownership promotion zone, which may not exceed 3% of the total home ownership
187	189		91
188	190		promotion zone funds.
189	191		92
190	192		(6) Home ownership promotion zone funds may be paid to a participant, if the municipality
191	193		93
192	194		and participant enter into a participation agreement which requires the participant to
193	195		94
194	196		utilize the home ownership promotion zone funds as allowed in this section.
195	197		95
196	198		(7) Home ownership promotion zone funds may be used to pay all of the costs of bonds
197		-	- 3 - S.B. 262 Enrolled Copy
198	199		96
199	200		issued by the municipality in accordance with Title 17C, Chapter 1, Part 5, Agency
	201	+	- 3 - 3rd Sub. (Ivory) S.B. 262 03-05 18:26
200	202		97
201	203		Bonds, including the cost to issue and repay the bonds including interest.
202	204		98
203	205		(8) A municipality may:
204	206		99
205	207		(a) create one or more public infrastructure districts within a home ownership promotion
206	208		100
207	209		zone under Title 17D, Chapter 4, Public Infrastructure District Act; and
208	210		101
209	211		(b) pledge and utilize the home ownership promotion zone funds to guarantee the
210	212		102
211	213		payment of public infrastructure bonds issued by a public infrastructure district.
212	214		103
213	215		Section 3. Section 17-27a-508 is amended to read:
214	216		104
215	217		17-27a-508 . Applicant's entitlement to land use application approval --
216	218		105
217	219		Application relating to land in a high priority transportation corridor -- County's
218	220		106
219	221		requirements and limitations -- Vesting upon submission of development plan and
220	222		107
221	223		schedule.
222	224		108
223	225		(1)(a)(i) [An] Subject to Subsection (7), an applicant who has submitted a complete
224	226		109
225	227		land use application, including the payment of all application fees, is entitled to
226	228		110
227	229		substantive review of the application under the land use regulations:
228	230		111
229	231		(A) in effect on the date that the application is complete; and
230	232		112
231	233		(B) applicable to the application or to the information shown on the submitted
232	234		113
233	235		application.
234	236		114
235	237		(ii) An applicant is entitled to approval of a land use application if the application
236	238		115
237	239		conforms to the requirements of the applicable land use regulations, land use
238	240		116
239	241		decisions, and development standards in effect when the applicant submits a
240	242		117
241	243		complete application and pays all application fees, unless:
242	244		118
243	245		(A) the land use authority, on the record, formally finds that a compelling,
244	246		119
245	247		countervailing public interest would be jeopardized by approving the
246	248		120
247	249		application and specifies the compelling, countervailing public interest in
248	250		121
249	251		writing; or
250	252		122
251	253		(B) in the manner provided by local ordinance and before the applicant submits
252	254		123
253	255		the application, the county formally initiates proceedings to amend the county's
254	256		124
255	257		land use regulations in a manner that would prohibit approval of the
256	258		125
257	259		application as submitted.
258	260		126
259	261		(b) The county shall process an application without regard to proceedings the county
260	262		127
261	263		initiated to amend the county's ordinances as described in Subsection (1)(a)(ii)(B) if:
262	264		128
263	265		(i) 180 days have passed since the county initiated the proceedings; and
264	266		129
265	267		(ii)(A) the proceedings have not resulted in an enactment that prohibits approval
266		-	- 4 - Enrolled Copy S.B. 262
267	268		130
268	269		of the application as submitted; or
	270	+	- 4 - 03-05 18:26 3rd Sub. (Ivory) S.B. 262
269	271		131
270	272		(B) during the 12 months prior to the county processing the application or
271	273		132
272	274		multiple applications of the same type, the application is impaired or prohibited
273	275		133
274	276		under the terms of a temporary land use regulation adopted under Section
275	277		134
276	278		17-27a-504.
277	279		135
278	280		(c) A land use application is considered submitted and complete when the applicant
279	281		136
280	282		provides the application in a form that complies with the requirements of applicable
281	283		137
282	284		ordinances and pays all applicable fees.
283	285		138
284	286		(d) Unless a phasing sequence is required in an executed development agreement, a
285	287		139
286	288		county shall, without regard to any other separate and distinct land use application,
287	289		140
288	290		accept and process a complete land use application in accordance with this chapter.
289	291		141
290	292		(e) The continuing validity of an approval of a land use application is conditioned upon
291	293		142
292	294		the applicant proceeding after approval to implement the approval with reasonable
293	295		143
294	296		diligence.
295	297		144
296	298		(f) [A] Subject to Subsection (7), a county may not impose on an applicant who has
297	299		145
298	300		submitted a complete application a requirement that is not expressed in:
299	301		146
300	302		(i) this chapter;
301	303		147
302	304		(ii) a county ordinance in effect on the date that the applicant submits a complete
303	305		148
304	306		application, subject to Subsection (1)(a)(ii); or
305	307		149
306	308		(iii) a county specification for public improvements applicable to a subdivision or
307	309		150
308	310		development that is in effect on the date that the applicant submits an application.
309	311		151
310	312		(g) A county may not impose on a holder of an issued land use permit or a final,
311	313		152
312	314		unexpired subdivision plat a requirement that is not expressed:
313	315		153
314	316		(i) in a land use permit;
315	317		154
316	318		(ii) on the subdivision plat;
317	319		155
318	320		(iii) in a document on which the land use permit or subdivision plat is based;
319	321		156
320	322		(iv) in the written record evidencing approval of the land use permit or subdivision
321	323		157
322	324		plat;
323	325		158
324	326		(v) in this chapter;
325	327		159
326	328		(vi) in a county ordinance; or
327	329		160
328	330		(vii) in a county specification for residential roadways in effect at the time a
329	331		161
330	332		residential subdivision was approved.
331	333		162
332	334		(h) Except as provided in Subsection (1)(i) or (j), a county may not withhold issuance of
333	335		163
334	336		a certificate of occupancy or acceptance of subdivision improvements because of an
335		-	- 5 - S.B. 262 Enrolled Copy
336	337		164
337	338		applicant's failure to comply with a requirement that is not expressed:
	339	+	- 5 - 3rd Sub. (Ivory) S.B. 262 03-05 18:26
338	340		165
339	341		(i) in the building permit or subdivision plat, documents on which the building permit
340	342		166
341	343		or subdivision plat is based, or the written record evidencing approval of the
342	344		167
343	345		building permit or subdivision plat; or
344	346		168
345	347		(ii) in this chapter or the county's ordinances.
346	348		169
347	349		(i) A county may not unreasonably withhold issuance of a certificate of occupancy
348	350		170
349	351		where an applicant has met all requirements essential for the public health, public
350	352		171
351	353		safety, and general welfare of the occupants, in accordance with this chapter, unless:
352	354		172
353	355		(i) the applicant and the county have agreed in a written document to the withholding
354	356		173
355	357		of a certificate of occupancy; or
356	358		174
357	359		(ii) the applicant has not provided a financial assurance for required and uncompleted
358	360		175
359	361		public landscaping improvements or infrastructure improvements in accordance
360	362		176
361	363		with an applicable ordinance that the legislative body adopts under this chapter.
362	364		177
363	365		(j) A county may not conduct a final inspection required before issuing a certificate of
364	366		178
365	367		occupancy for a residential unit that is within the boundary of an infrastructure
366	368		179
367	369		financing district, as defined in Section 17B-1-102, until the applicant for the
368	370		180
369	371		certificate of occupancy provides adequate proof to the county that any lien on the
370	372		181
371	373		unit arising from the infrastructure financing district's assessment against the unit
372	374		182
373	375		under Title 11, Chapter 42, Assessment Area Act, has been released after payment in
374	376		183
375	377		full of the infrastructure financing district's assessment against that unit.
376	378		184
377	379		(2) A county is bound by the terms and standards of applicable land use regulations and
378	380		185
379	381		shall comply with mandatory provisions of those regulations.
380	382		186
381	383		(3) A county may not, as a condition of land use application approval, require a person
382	384		187
383	385		filing a land use application to obtain documentation regarding a school district's
384	386		188
385	387		willingness, capacity, or ability to serve the development proposed in the land use
386	388		189
387	389		application.
388	390		190
389	391		(4) [Upon ] Subject to Subsection (7), a specified public agency's submission of a
390	392		191
391	393		development plan and schedule as required in Subsection 17-27a-305(8) that complies
392	394		192
393	395		with the requirements of that subsection, the specified public agency vests in the
394	396		193
395	397		county's applicable land use maps, zoning map, hookup fees, impact fees, other
396	398		194
397	399		applicable development fees, and land use regulations in effect on the date of submission.
398	400		195
399	401		(5)(a) If sponsors of a referendum timely challenge a project in accordance with
400	402		196
401	403		Subsection 20A-7-601(6), the project's affected owner may rescind the project's land
402	404		197
403	405		use approval by delivering a written notice:
404		-	- 6 - Enrolled Copy S.B. 262
405	406		198
406	407		(i) to the local clerk as defined in Section 20A-7-101; and
	408	+	- 6 - 03-05 18:26 3rd Sub. (Ivory) S.B. 262
407	409		199
408	410		(ii) no later than seven days after the day on which a petition for a referendum is
409	411		200
410	412		determined sufficient under Subsection 20A-7-607(4).
411	413		201
412	414		(b) Upon delivery of a written notice described in Subsection(5)(a) the following are
413	415		202
414	416		rescinded and are of no further force or effect:
415	417		203
416	418		(i) the relevant land use approval; and
417	419		204
418	420		(ii) any land use regulation enacted specifically in relation to the land use approval.
419	421		205
420	422		(6)(a) After issuance of a building permit, a county may not:
421	423		206
422	424		(i) change or add to the requirements expressed in the building permit, unless the
423	425		207
424	426		change or addition is:
425	427		208
426	428		(A) requested by the building permit holder; or
427	429		209
428	430		(B) necessary to comply with an applicable state building code; or
429	431		210
430	432		(ii) revoke the building permit or take action that has the effect of revoking the
431	433		211
432	434		building permit.
433	435		212
434	436		(b) Subsection (6)(a) does not prevent a county from issuing a building permit that
435	437		213
436	438		contains an expiration date defined in the building permit.
437	439		214
438	440		(7) A county shall comply with the provisions of this chapter regarding all pending land use
439	441		215
440	442		applications and new land use applications submitted under this chapter.
441	443		216
442	444		Section 4. Section 17-27a-804 is enacted to read:
443	445		217
444	446		17-27a-804 . Consent agreement.
445	447		218
446		-	(1) A legislative body may, by resolution or ordinance, settle litigation initiated under
	448	+	(1) A legislative body may by resolution or ordinance settle litigation initiated under
447	449		219
448	450		Section 17-27a-801 regarding a land use decision with a property owner through a
449	451		220
450	452		consent agreement.
451	453		221
452	454		(2) A legislative body shall approve the consent agreement under Subsection (1) in a public
453	455		222
454	456		meeting in accordance with Title 52, Chapter 4, Open and Public Meetings Act.
455	457		223
456	458		(3) A legislative body is not required to present to a planning commission on any matter
457	459		224
458	460		covered by a consent agreement.
459	461		225
460	462		Section 5. Section 17-27a-1205 is amended to read:
461	463		226
462	464		17-27a-1205 . Payment, use, and administration of revenue from a home
463	465		227
464	466		ownership promotion zone.
465	467		228
466	468		(1)(a) A county may receive tax increment and use home ownership promotion zone
467	469		229
468	470		funds in accordance with this section.
469	471		230
470	472		(b) The maximum amount of time that a county may receive and use tax increment
471	473		231
472	474		pursuant to a home ownership promotion zone is 15 consecutive years.
473		-	- 7 - S.B. 262 Enrolled Copy
474	475		232
475	476		(2) A county that collects property tax on property located within a home ownership
	477	+	- 7 - 3rd Sub. (Ivory) S.B. 262 03-05 18:26
476	478		233
477	479		promotion zone shall, in accordance with Section 59-2-1365, retain 60% of the tax
478	480		234
479	481		increment collected from property within the home ownership promotion zone to be
480	482		235
481	483		used as described in this section.
482	484		236
483	485		(3)(a) Tax increment retained by a county in accordance with Subsection (2) is not
484	486		237
485	487		revenue of the taxing entity or county, but home ownership promotion zone funds.
486	488		238
487	489		(b) Home ownership promotion zone funds may be administered by an agency created
488	490		239
489	491		by the county within which the home ownership promotion zone is located.
490	492		240
491	493		(c) Before an agency may receive home ownership promotion zone funds from a county,
492	494		241
493	495		the agency shall enter into an interlocal agreement with the county.
494	496		242
495	497		(4)(a) A county or agency shall use home ownership promotion zone funds within, or for
496	498		243
497	499		the direct benefit of, the home ownership promotion zone.
498	500		244
499	501		(b) If any home ownership promotion zone funds will be used outside of the home
500	502		245
501	503		ownership promotion zone, the legislative body of the county shall make a finding
502	504		246
503	505		that the use of the home ownership promotion zone funds outside of the home
504	506		247
505	507		ownership promotion zone will directly benefit the home ownership promotion zone.
506	508		248
507	509		(5) A county or agency shall use home ownership promotion zone funds to achieve the
508	510		249
509	511		purposes described in Section 17-27a-1203 by paying all or part of the costs of any of
510	512		250
511	513		the following:
512	514		251
513	515		(a) project improvement costs;
514	516		252
515	517		(b) systems improvement costs;[ or]
516	518		253
517	519		(c) water exaction costs;
518	520		254
519	521		(d) street lighting costs;
520	522		255
521	523		(e) environmental remediation costs; or
522	524		256
523	525		[(c)] (f) the costs of the county to create and administer the home ownership promotion
524	526		257
525	527		zone, which may not exceed 3% of the total home ownership promotion zone funds.
526	528		258
527	529		(6) Home ownership promotion zone funds may be paid to a participant, if the county and
528	530		259
529	531		participant enter into a participation agreement which requires the participant to utilize
530	532		260
531	533		the home ownership promotion zone funds as allowed in this section.
532	534		261
533	535		(7) Home ownership promotion zone funds may be used to pay all of the costs of bonds
534	536		262
535	537		issued by the county in accordance with Title 17C, Chapter 1, Part 5, Agency Bonds,
536	538		263
537	539		including the cost to issue and repay the bonds including interest.
538	540		264
539	541		(8) A county may:
540	542		265
541	543		(a) create one or more public infrastructure districts within home ownership promotion
542		-	- 8 - Enrolled Copy S.B. 262
543	544		266
544	545		zone under Title 17D, Chapter 4, Public Infrastructure District Act; and
	546	+	- 8 - 03-05 18:26 3rd Sub. (Ivory) S.B. 262
545	547		267
546	548		(b) pledge and utilize the home ownership promotion zone funds to guarantee the
547	549		268
548	550		payment of public infrastructure bonds issued by a public infrastructure district.
549	551		269
550	552		Section 6. Section 35A-8-504.6 is enacted to read:
551	553		270
552	554		35A-8-504.6 . Subordinate shared appreciation loan program.
553	555		271
554	556		(1) As used in this section:
555	557		272
556	558		(a) "Qualifying applicant" means a non-profit entity or a partnership of non-profit
557	559		273
558	560		entities that provides or purchases subordinate shared appreciation loans.
559	561		274
560	562		(b) "Qualifying mortgage loan" means a mortgage loan that is originated, purchased, or
561	563		275
562	564		serviced by a private financial institution or sold to a government-sponsored
563	565		276
564	566		enterprise, if:
565	567		277
566	568		(i) the loan conforms to the borrower's income, property eligibility, and credit
567	569		278
568	570		standards;
569	571		279
570	572		(ii) the loan is secured by a recorded deed of trust or other instrument securing a
571	573		280
572	574		mortgage loan and constituting a lien on real property in the county in which the
573	575		281
574	576		home is located; and
575	577		282
576	578		(iii) the loan is an amortizing first mortgage loan.
577	579		283
578	580		(c)(i) "Subordinate shared appreciation loan" means a loan that does not exceed
579	581		284
580	582		$150,000, and that:
581	583		285
582	584		(A) is secured by an owner-occupied residential property for which the borrower
583	585		286
584	586		agrees to repay the principal borrowed plus a proportionate share of the home
585	587		287
586	588		price appreciation during the term of the loan;
587	589		288
588	590		(B) has flexible repayment terms in accordance with applicable state and federal
589	591		289
590	592		laws;
591	593		290
592	594		(C) is non-interest bearing and has no set monthly payment obligation;
593	595		291
594	596		(D) does not impose a shared appreciation repayment percentage obligation that
595	597		292
596	598		exceeds the percentage of the home value represented by the amount borrowed
597	599		293
598	600		at origination;
599	601		294
600	602		(E) does not have a combined loan-to-value ratio that exceeds 105%;
601	603		295
602	604		(F) does not impose a prepayment fee or penalty; and
603	605		296
604	606		(G) is subordinate to a first mortgage loan.
605	607		297
606	608		(ii) "Subordinate shared appreciation loan" includes a loan to a qualifying borrower
607	609		298
608	610		for the purpose of assisting the borrower in the purchase of construction liability
609	611		299
610	612		insurance for a condominium project as established in rule by the Utah Housing
611		-	- 9 - S.B. 262 Enrolled Copy
612	613		300
613	614		Corporation in accordance with Section 63H-8-502.
	615	+	- 9 - 3rd Sub. (Ivory) S.B. 262 03-05 18:26
614	616		301
615	617		(d) "Subordinate shared appreciation loan program" means the loan program created in
616	618		302
617	619		this section.
618	620		303
619		-	(2) There is created the subordinate shared appreciation loan program administered by the
	621	+	(2) There is a created the subordinate shared appreciation loan program administered by the
620	622		304
621	623		department.
622	624		305
623	625		(3) Subject to appropriations from the Legislature, the department shall distribute program
624	626		306
625	627		funds to a qualifying applicant that:
626	628		307
627	629		(a) completes an application; and
628	630		308
629	631		(b) meets the requirements described under Subsection (1)(b)(i) or (1)(b)(ii).
630	632		309
631	633		(4) The executive director may make rules in accordance with Title 63G, Chapter 3, Utah
632	634		310
633	635		Administrative Rulemaking Act, to carry out the purposes of this section.
634	636		311
635	637		(5)(a) Subject to the provisions of Subsection (9), program funds shall only be used for a
636	638		312
637	639		qualifying residential unit, as that term is defined in Section 63H-8-501.
638	640		313
639	641		(b) Program funds shall only be distributed in conjunction with matching private funding
640	642		314
641	643		that is no less than a 75% private funds and 25% program funds split.
642	644		315
643	645		(c) A recipient of a subordinate shared appreciation loan may use the funds for the same
644	646		316
645	647		purposes described in Section 63H-8-502.
646	648		317
647	649		(6) If a subordinate shared appreciation loan on the qualifying residential unit is refinanced
648	650		318
649	651		or sold, state funds, including associated fees, used to secure the mortgage loan shall be
650	652		319
651	653		returned to the qualifying applicant.
652	654		320
653	655		(7) The department may, in cooperation with the Utah Housing Corporation, promote the
654	656		321
655	657		program to qualifying applicants to support the first-time homebuyer assistance program
656	658		322
657	659		under Title 63H, Chapter 8, Part 5, First-Time Homebuyer Assistance Program.
658	660		323
659	661		(8) The department shall include in the annual report required by Section 35A-1-109 the
660	662		324
661	663		following information:
662	664		325
663	665		(a) the number of approved loans under the program;
664	666		326
665	667		(b) the total dollar amount of program funds loaned and the corresponding private
666	668		327
667	669		matching funds;
668	670		328
669	671		(c) the total dollar amount of funds reinvested into the program;
670	672		329
671	673		(d) the total dollar amount of payoff and, if applicable, default of active loans; and
672	674		330
673	675		(e) the approximate dollar value of the total number of loans provided under the program
674	676		331
675	677		based upon the current home price index.
676	678		332
677	679		(9) The executive director may expend up to 5% of the revenues of the program, including
678	680		333
679	681		any appropriation to the program, to offset department administrative expenses.
680		-	- 10 - Enrolled Copy S.B. 262
681	682		334
682	683		(10) The department may not accept applications for the program after September 1, 2025.
	684	+	- 10 - 03-05 18:26 3rd Sub. (Ivory) S.B. 262
683	685		335
684	686		Section 7. Section 35A-8-505 is amended to read:
685	687		336
686	688		35A-8-505 . Activities authorized to receive fund money -- Powers of the
687	689		337
688	690		executive director.
689	691		338
690	692		At the direction of the board, the executive director may:
691	693		339
692	694		(1) provide fund money to any of the following activities:
693	695		340
694	696		(a) the acquisition, rehabilitation, or new construction of low-income housing units;
695	697		341
696	698		(b) matching funds for social services projects directly related to providing housing for
697	699		342
698	700		special-need renters in assisted projects;
699	701		343
700	702		(c) the development and construction of accessible housing designed for low-income
701	703		344
702	704		persons;
703	705		345
704	706		(d) the construction or improvement of a shelter or transitional housing facility that
705	707		346
706	708		provides services intended to prevent or minimize homelessness among members of a
707	709		347
708	710		specific homeless subpopulation;
709	711		348
710	712		(e) the purchase of an existing facility to provide temporary or transitional housing for
711	713		349
712	714		the homeless in an area that does not require rezoning before providing such
713	715		350
714	716		temporary or transitional housing;
715	717		351
716	718		(f) the purchase of land that will be used as the site of low-income housing units;
717	719		352
718	720		(g) the preservation of existing affordable housing units for low-income persons;
719	721		353
720	722		(h) providing loan guarantees under the two-year pilot program established in Section
721	723		354
722	724		35A-8-504.5;
723	725		355
724	726		(i) distribute funds to a qualifying applicant under the subordinate shared appreciation
725	727		356
726	728		mortgage loan program established in Section 35A-8-504.6;
727	729		357
728	730		[(i)] (j) the award of predevelopment grants in accordance with Section 35A-8-507.5;
729	731		358
730	732		[(j)] (k) the creation or financial support of a mediation program for landlords and
731	733		359
732	734		tenants designed to minimize the loss of housing for low-income persons, which
733	735		360
734	736		program may include:
735	737		361
736	738		(i) funding for the hiring or training of mediators;
737	739		362
738	740		(ii) connecting landlords and tenants with mediation services; and
739	741		363
740	742		(iii) providing a limited amount of gap funding to assist a tenant in making a good
741	743		364
742	744		faith payment towards attorney fees, damages, or other costs associated with
743	745		365
744	746		eviction proceedings or avoiding eviction proceedings; and
745	747		366
746	748		[(k)] (l) other activities that will assist in minimizing homelessness or improving the
747	749		367
748	750		availability or quality of housing in the state for low-income persons; and
749		-	- 11 - S.B. 262 Enrolled Copy
750	751		368
751	752		(2) do any act necessary or convenient to the exercise of the powers granted by this part or
	753	+	- 11 - 3rd Sub. (Ivory) S.B. 262 03-05 18:26
752	754		369
753	755		reasonably implied from those granted powers, including:
754	756		370
755	757		(a) making or executing contracts and other instruments necessary or convenient for the
756	758		371
757	759		performance of the executive director and board's duties and the exercise of the
758	760		372
759	761		executive director and board's powers and functions under this part, including
760	762		373
761	763		contracts or agreements for the servicing and originating of mortgage loans;
762	764		374
763	765		(b) procuring insurance against a loss in connection with property or other assets held by
764	766		375
765	767		the fund, including mortgage loans, in amounts and from insurers it considers
766	768		376
767	769		desirable;
768	770		377
769	771		(c) entering into agreements with a department, agency, or instrumentality of the United
770	772		378
771	773		States or this state and with mortgagors and mortgage lenders for the purpose of
772	774		379
773	775		planning and regulating and providing for the financing and refinancing, purchase,
774	776		380
775	777		construction, reconstruction, rehabilitation, leasing, management, maintenance,
776	778		381
777	779		operation, sale, or other disposition of residential housing undertaken with the
778	780		382
779	781		assistance of the department under this part;
780	782		383
781	783		(d) proceeding with a foreclosure action, to own, lease, clear, reconstruct, rehabilitate,
782	784		384
783	785		repair, maintain, manage, operate, assign, encumber, sell, or otherwise dispose of real
784	786		385
785	787		or personal property obtained by the fund due to the default on a mortgage loan held
786	788		386
787	789		by the fund in preparation for disposition of the property, taking assignments of
788	790		387
789	791		leases and rentals, proceeding with foreclosure actions, and taking other actions
790	792		388
791	793		necessary or incidental to the performance of its duties; and
792	794		389
793	795		(e) selling, at a public or private sale, with public bidding, a mortgage or other obligation
794	796		390
795	797		held by the fund.
796	798		391
797	799		Section 8. Section 51-12-101 is amended to read:
798	800		392
799	801		51-12-101 . Definitions.
800	802		393
801	803		As used in this chapter:
802	804		394
803	805		(1) "Attainable home" means a residence that costs the purchaser no more than the amount
804	806		395
805	807		a qualifying residential unit may be purchased in accordance with [Subsection
806	808		396
807	809		63H-8-501(6)(e)] Section 63H-8-501 at the time the state treasurer deposits with a
808	810		397
809	811		qualified depository.
810	812		398
811	813		(2) "Fund" means the Transportation Infrastructure General Fund Support Subfund created
812	814		399
813	815		in Section 72-2-134.
814	816		400
815	817		(3) "Political subdivision" means:
816	818		401
817	819		(a) the municipality in which the attainable home is located; or
818		-	- 12 - Enrolled Copy S.B. 262
819	820		402
820	821		(b) the county, if the attainable home is located in an unincorporated portion of the
	822	+	- 12 - 03-05 18:26 3rd Sub. (Ivory) S.B. 262
821	823		403
822	824		county.
823	825		404
824	826		(4) "Qualified depository" means the same as that term is defined in Section 51-7-3.
825	827		405
826	828		(5)(a) "Qualified project" means a new construction housing development project in the
827	829		406
828	830		state for which the developer:
829	831		407
830	832		(i) commits to:
831	833		408
832	834		(A) offering for sale no fewer than 60% of the total units within the project as
833	835		409
834	836		attainable homes;
835	837		410
836	838		(B) including in the deed of sale for an attainable home a restriction, in favor of
837	839		411
838	840		the political subdivision, that the attainable home be owner occupied for no
839	841		412
840	842		fewer than five years; and
841	843		413
842	844		(C) having a plan to provide information to potential buyers of attainable homes
843	845		414
844	846		about the First-Time Homebuyer Assistance Program created in Section
845	847		415
846	848		63H-8-502; and
847	849		416
848	850		(ii) executes a valid agreement with the political subdivision to develop housing
849	851		417
850	852		meeting the requirements of Subsections (5)(a)(i)(A) and (B).
851	853		418
852	854		(b) "Qualified project" includes infrastructure within the housing development project.
853	855		419
854	856		Section 9. Section 63H-8-501 is amended to read:
855	857		420
856	858		63H-8-501 . Definitions.
857	859		421
858	860		As used in this part:
859	861		422
860	862		(1)(a) "First-time homebuyer" means an individual who satisfies:
861	863		423
862	864		(i) the three-year requirement described in Section 143(d) of the Internal Revenue
863	865		424
864	866		Code of 1986, as amended, and any corresponding federal regulations; and
865	867		425
866	868		(ii) requirements made by the corporation by rule, as described in Section 63H-8-502.
867	869		426
868	870		(b) "First-time homebuyer" includes a single parent, as defined by the corporation by
869	871		427
870	872		rule made as described in Section 63H-8-502, who would meet the three-year
871	873		428
872	874		requirement described in Subsection (1)(a)(i) but for a present ownership interest in a
873	875		429
874	876		principal residence in which the single parent:
875	877		430
876	878		(i) had a present ownership interest with the single parent's former spouse during the
877	879		431
878	880		three-year period;
879	881		432
880	882		(ii) resided while married during the three-year period; and
881	883		433
882	884		(iii) no longer:
883	885		434
884	886		(A) has a present ownership interest; or
885	887		435
886	888		(B) resides.
887		-	- 13 - S.B. 262 Enrolled Copy
888	889		436
889	890		(2) "Home equity amount" means the difference between:
	891	+	- 13 - 3rd Sub. (Ivory) S.B. 262 03-05 18:26
890	892		437
891	893		(a)(i) in the case of a sale, the sales price for which the qualifying residential unit is
892	894		438
893	895		sold by the recipient in a bona fide sale to a third party with no right to repurchase
894	896		439
895	897		less an amount up to 1% of the sales price used for seller-paid closing costs; or
896	898		440
897	899		(ii) in the case of a refinance, the current appraised value of the qualifying residential
898	900		441
899	901		unit; and
900	902		442
901	903		(b) the total payoff amount of any qualifying mortgage loan that was used to finance the
902	904		443
903	905		purchase of the qualifying residential unit.
904	906		444
905	907		(3) "Program" means the First-Time Homebuyer Assistance Program created in Section
906	908		445
907	909		63H-8-502.
908	910		446
909	911		(4) "Program funds" means money appropriated for the program.
910	912		447
911	913		(5) "Qualifying mortgage loan" means a mortgage loan that:
912	914		448
913	915		(a) is purchased by the corporation; and
914	916		449
915	917		(b) is subject to a document that is recorded in the office of the county recorder of the
916	918		450
917	919		county in which the residential unit is located.
918	920		451
919	921		(6) "Qualifying residential unit" means a residential unit that:
920	922		452
921	923		(a) is located in the state;
922	924		453
923	925		(b) is new construction or newly constructed but not yet inhabited;
924	926		454
925	927		(c) is financed by a qualifying mortgage loan;
926	928		455
927	929		(d) is owner-occupied within 60 days of purchase, or in the case of a two-unit dwelling,
928	930		456
929	931		at least one unit is owner-occupied within 60 days of purchase; and
930	932		457
931	933		(e) is purchased for an amount that does not exceed:
932	934		458
933	935		(i) $450,000; or
934	936		459
935	937		(ii) if applicable, the maximum purchase price established by the corporation under [
936	938		460
937	939		Subsection 63H-8-502(6)] Section 63H-8-502.
938	940		461
939	941		(7) "Recipient" means a first-time homebuyer who receives program funds.
940	942		462
941	943		(8)(a) "Residential unit" means a house, condominium, townhome, or similar residential
942	944		463
943	945		structure that serves as a one-unit dwelling or forms part of a two-unit dwelling.
944	946		464
945	947		(b) "Residential unit" includes a manufactured home or modular home that is attached to
946	948		465
947	949		a permanent foundation.
948	950		466
949	951		Section 10. Section 63H-8-502 is amended to read:
950	952		467
951	953		63H-8-502 . First-Time Homebuyer Assistance Program.
952	954		468
953	955		(1) There is created the First-Time Homebuyer Assistance Program administered by the
954	956		469
955	957		corporation.
956		-	- 14 - Enrolled Copy S.B. 262
957	958		470
958	959		(2) Subject to appropriations from the Legislature, the corporation shall distribute program
	960	+	- 14 - 03-05 18:26 3rd Sub. (Ivory) S.B. 262
959	961		471
960	962		funds to:
961	963		472
962	964		(a) first-time homebuyers to provide support for the purchase of qualifying residential
963	965		473
964	966		units; and
965	967		474
966	968		(b) reimburse the corporation for a distribution of funds under Subsection (2)(a) that
967	969		475
968	970		took place on or after July 1, 2023.
969	971		476
970	972		(3) The maximum amount of program funds that a first-time homebuyer may receive under
971	973		477
972	974		the program is $20,000.
973	975		478
974	976		(4)(a) A recipient may use program funds to pay for:
975	977		479
976	978		(i) the down payment on a qualifying residential unit;
977	979		480
978	980		(ii) closing costs associated with the purchase of a qualifying residential unit;
979	981		481
980	982		(iii) a permanent reduction in the advertised par interest rate on a qualifying mortgage
981	983		482
982	984		loan that is used to finance a qualifying residential unit; or
983	985		483
984	986		(iv) any combination of Subsections (4)(a)(i), (ii), and (iii).
985	987		484
986	988		(b) The corporation shall direct the disbursement of program funds for a purpose
987	989		485
988	990		authorized in Subsection (4)(a).
989	991		486
990	992		(c) A recipient may not receive a payout or distribution of program funds upon closing.
991	993		487
992	994		(5) The builder or developer of a qualifying residential unit may not increase the price of
993	995		488
994	996		the qualifying residential unit on the basis of program funds being used towards the
995	997		489
996	998		purchase of that qualifying residential unit.
997	999		490
998	1000		(6)(a) In accordance with rules made by the corporation under Subsection (9), the
999	1001		491
1000	1002		corporation may adjust the maximum purchase price of a qualifying residential unit
1001	1003		492
1002	1004		for which a first-time homebuyer qualifies to receive program funds in order to
1003	1005		493
1004	1006		reflect current market conditions.
1005	1007		494
1006	1008		(b) In connection with an adjustment made under Subsection (6)(a), the corporation may
1007	1009		495
1008	1010		establish one or more maximum purchase prices corresponding by residential unit
1009	1011		496
1010	1012		type, geographic location, or any other factor the corporation considers relevant.
1011	1013		497
1012	1014		(c) The corporation may adjust a maximum purchase price under this Subsection (6) no
1013	1015		498
1014	1016		more frequently than once each calendar year.
1015	1017		499
1016	1018		(7)(a) Except as provided in Subsection (7)(b), if the recipient sells the qualifying
1017	1019		500
1018	1020		residential unit or refinances the qualifying mortgage loan that was used to finance
1019	1021		501
1020	1022		the purchase of the qualifying residential unit before the end of the original term of
1021	1023		502
1022	1024		the qualifying mortgage loan, the recipient shall repay to the corporation an amount
1023	1025		503
1024	1026		equal to the lesser of:
1025		-	- 15 - S.B. 262 Enrolled Copy
1026	1027		504
1027	1028		(i) the amount of program funds the recipient received; or
	1029	+	- 15 - 3rd Sub. (Ivory) S.B. 262 03-05 18:26
1028	1030		505
1029	1031		(ii) 50% of the recipient's home equity amount.
1030	1032		506
1031	1033		(b) Subsection (7)(a) does not apply to a qualifying mortgage loan that is refinanced
1032	1034		507
1033	1035		with a new qualifying mortgage loan if any subordinate qualifying mortgage loan, or
1034	1036		508
1035	1037		loan from program funds used on the purchase of the qualifying residential unit, is
1036	1038		509
1037	1039		resubordinated only to the new qualifying mortgage loan.
1038	1040		510
1039	1041		(8) Any funds repaid to the corporation under Subsection (7) shall be used for program
1040	1042		511
1041	1043		distributions.
1042	1044		512
1043	1045		[(9) The corporation shall make rules governing the application form, process, and criteria
1044	1046		513
1045	1047		the corporation will use to distribute program funds to first-time homebuyers, in
1046	1048		514
1047	1049		accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.]
1048	1050		515
1049	1051		(9) Subject to Subsection (9)(b), the corporation shall make rules, in accordance with Title
1050	1052		516
1051	1053		63G, Chapter 3, Utah Administrative Rulemaking Act:
1052	1054		517
1053	1055		(a) governing the application form, process, and criteria the corporation will use to
1054	1056		518
1055	1057		distribute program funds to first-time homebuyers; and
1056	1058		519
1057	1059		(b) subject to appropriations from the Legislature, establishing an incentive program for
1058	1060		520
1059	1061		qualified borrowers to utilize funding from the subordinate shared appreciation loan
1060	1062		521
1061	1063		program for the purposes of assisting with the purchase of construction liability
1062	1064		522
1063	1065		insurance for a qualifying condominium project.
1064	1066		523
1065	1067		(10) The corporation may use up to 5% of program funds for administration.
1066	1068		524
1067	1069		(11) The corporation shall report annually to the [Social Services Appropriations
1068	1070		525
1069	1071		Subcommittee] Economic and Community Development Appropriations Subcommittee
1070	1072		526
1071	1073		on disbursements from the program and any adjustments made to the maximum
1072	1074		527
1073	1075		purchase price or maximum purchase prices of a qualifying residential unit under
1074	1076		528
1075	1077		Subsection (6).
1076	1078		529
1077	1079		Section 11. Effective Date.
1078	1080		530
1079	1081		This bill takes effect on May 7, 2025.
1080	1082		- 16 -