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51-12-101
51-12-102
51-12-202
51-12-203
51-12-204
63I-1-251
63I-1-272
0
Utah Homes Investment Program Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Keven J. Stratton
House Sponsor: Val L. Peterson
LONG TITLE
General Description:
This bill modifies provisions related to the Utah Homes Investment Program.
Highlighted Provisions:
This bill:
expands the projects for which a qualified depository may offer loan financing to a
developer or city under the Utah Homes Investment Program (program) to include:
multi-family housing development projects that meet specified criteria;
affordable rental projects;
acquisition of housing development projects that meet specified criteria; and
city-operated programs that provide low-interest loans to income-eligible homeowners
to make improvements;
allows a municipality with an eligible shelter to obtain financing through the program;
following the end of the program, directs the state treasurer to complete a study that
analyzes the economic effect of the program;
allows the state treasurer to contract with a third party to complete the study;
removes the limitation on the rate at which a qualified depository may offer loan
financing to a developer or city; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
51-12-101
Effective
05/06/26
Repealed
07/01/27
, as last amended by Laws of Utah
2025, Chapter 391
51-12-102
Effective
05/06/26
Repealed
07/01/27
, as enacted by Laws of Utah 2024,
Chapter 510
51-12-202
Effective
05/06/26
Repealed
07/01/27
, as last amended by Laws of Utah
2025, Chapter 391
51-12-203
Effective
05/06/26
Repealed
07/01/27
, as last amended by Laws of Utah
2025, Chapter 391
51-12-204
Effective
05/06/26
Repealed
07/01/27
, as last amended by Laws of Utah
2025, Chapter 391
63I-1-251
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 391
63I-1-272
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 391
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
51-12-101
is amended to read:
51-12-101
Effective
05/06/26
Repealed
07/01/27
. Definitions.
As used in this chapter:
(1)
"Affordable rental project" means a rental project that includes at least one rental unit
that is offered for rent at a rental price affordable to a household with a gross income of
no more than 80% of the area median income for the county in which the residential unit
is offered for rent.
(1)
(2)
"Attainable home" means a residence that costs the purchaser no more than the
amount a qualifying residential unit may be purchased in accordance with Section
63H-8-501
at the time the state treasurer deposits with a qualified depository.
(2)
(3)
"City of the first class" means the same as that term is defined in Section
10-2-301
.
(3)
(4)
"City of the second class" means the same as that term is defined in Section
10-2-301
.
(4)
(5)
"Fund" means the Transportation Infrastructure General Fund Support Subfund
created in Section
72-2-134
.
(5)
(6)
"Political subdivision" means:
(a)
the municipality in which the attainable home is located; or
(b)
the county, if the attainable home is located in an unincorporated portion of the
county.
(6)
(7)
"Qualified depository" means:
(a)
the same as that term is defined in Section
51-7-3
; or
(b)
the Utah Housing Corporation as described in Title 63H, Chapter 8, Utah Housing
Corporation Act.
(7)
(a)
"Qualified project" means a new construction housing development project in
the state for which the developer:
(i)
commits to:
(A)
offering for sale no fewer than 60% of the total units within the project as
attainable homes;
(B)
including in the deed of sale for an attainable home a restriction, in favor of
the political subdivision, that the attainable home be owner-occupied for no
fewer than five years; and
(C)
having a plan to provide information to potential buyers of attainable homes
about the First-Time Homebuyer Assistance Program created in Section
63H-8-502
; and
(ii)
executes a valid agreement with the political subdivision or the Utah Housing
Corporation to develop housing meeting the requirements of Subsections
(7)(a)(i)(A)
and
(B)
.
(b)
"Qualified project" includes infrastructure within the housing development project.
(c)
(8)
"Qualified
municipal
project"
includes
means:
(a)
a project by a
city of the first or second class
qualifying city
that commits to:
(i)
receiving no more than $10,000,000 in deposits within one year from the day on
which the city of the first or second class enters into a loan agreement with the
qualified depository described in Subsection
(6)(b)
(7)(b)
for a project as an
attainable home;
(ii)
using the deposit to acquire and rehabilitate
single-family homes
residential units
within the
city limits of the city of the first or second class
qualifying city's
boundaries;
(iii)
offering for sale
the rehabilitated single-family home
each rehabilitated
residential unit
as an attainable home
,
; and
(iv)
including in the deed of sale for an attainable home a restriction, in favor of the
city of the first or second class
qualifying city
, that the attainable home be
owner-occupied for no fewer than five years;
and
(iv)
(b)
expanding an existing effort to acquire and rehabilitate
single-family homes as
described in Subsections
(7)(c)(ii)
and
(iii)
.
residential units as attainable homes as
described in Subsections
(8)(a)(ii)
through
(iv)
;
(c)
an affordable rental project that includes revenue sharing with tenants; or
(d)
a program operated by a qualifying city that:
(i)
provides low interest loans to income-eligible homeowners to complete one or
more of the following on the homeowner's residential unit located within the
qualifying city's boundaries:
(A)
exterior improvements to stabilize the residential unit's structure;
(B)
interior improvements that address health or safety concerns or code
violations; or
(C)
improvements designed to enable an individual to safely reside in the
residential unit as the individual ages by reducing barriers to accessibility,
improving safety, or supporting independent living; and
(ii)
requires the homeowner to execute a deed restriction requiring that if the
homeowner sells the residential unit within five years after the day on which the
homeowner first receives funds under the program, the homeowner must sell the
residential unit to an owner-occupant buyer.
(9)
"Qualified project" means:
(a)
acquisition of or new construction, including infrastructure, of a housing
development project in the state for which the developer:
(i)
commits to:
(A)
offering for sale no fewer than 60% of the total units within the project as
attainable homes;
(B)
including in the deed of sale for an attainable home a restriction, in favor of
the political subdivision, that the attainable home be owner-occupied for no
fewer than five years; and
(C)
having a plan to provide information to potential buyers of attainable homes
about the First-Time Homebuyer Assistance Program created in Section
63H-8-502
; and
(ii)
executes a valid agreement with the political subdivision or the Utah Housing
Corporation to develop housing meeting the requirements of Subsections
(9)(a)(i)(A)
and
(B)
; or
(b)
a qualified municipal project.
(10)
"Qualifying city" means:
(a)
a city of the first class or a city of the second class; or
(b)
a municipality with an eligible shelter described in Subsection
35A-16-401(5)(a)
or
(b)
.
Section 2. Section
51-12-102
is amended to read:
51-12-102
Effective
05/06/26
Repealed
07/01/27
. Reporting.
(1)
The state treasurer shall share the information reported in accordance with Subsection
51-12-202
(2)(d)
51-12-202(2)(c)
with the governor's office.
(2)
Before December 31 of each year, the state treasurer and the governor's office or the
governor's office's designee shall report to the Legislative Management Committee:
(a)
the dollar amount of deposits and the number of qualified depositories in which a
deposit is made in accordance with Part 2, Investment Program;
(b)
the information reported in accordance with Subsection
51-12-202
(2)(d)
51-12-202(2)(c)
; and
(c)
the impact of the Utah Homes Investment Program on the availability of housing in
the state.
(3)
(a)
Beginning after June 30, 2028, the state treasurer shall conduct a study that
analyzes whether the lending activity under the Utah Homes Investment Program
resulted in measurable local economic benefits.
(b)
On or before October 1, 2028, the state treasurer shall submit a report summarizing
the results of the study to the Legislative Management Committee and the governor.
(c)
The state treasurer may contract with a third party to complete the study and report
described in this Subsection
(3)
.
Section 3. Section
51-12-202
is amended to read:
51-12-202
Effective
05/06/26
Repealed
07/01/27
. Terms of deposit.
(1)
The state treasurer shall enter into a deposit agreement with an approved qualified
depository in accordance with Section
51-12-201
.
(2)
The deposit agreement shall provide that the qualified depository:
(a)
shall offer loan financing to a developer or city of the first or second class of a
qualified project at a rate no higher than 150 basis points above the federal funds
effective rate at the time of the deposit;
(b)
(a)
shall return the amount of deposit:
(i)
with interest at a rate equal to the greater of:
(A)
the federal funds effective rate at the time of the deposit minus 200 basis
points; or
(B)
0.5%; and
(ii)
at the earlier of:
(A)
24 months from the day on which the deposit is made;
(B)
repayment of the loan financing;
(C)
the sale of the last home in the qualified project; or
(D)
June 30, 2028;
(c)
(b)
is responsible for return of the amount of the deposit with accrued interest
regardless of the completion of the qualified project or the repayment of the qualified
depository's loan to the developer or
city of the first or second class
qualifying city
of the qualified project; and
(d)
(c)
shall report to the state treasurer the total number of
housing
residential
units
and the number of attainable homes each qualified project created.
(3)
(a)
Notwithstanding the provisions of Subsections
(2)(b)(ii)
and (2)(c)
(2)(a)(ii) and
(2)(b)
, for a deposit made to the Utah Housing Corporation, the Utah Housing
Corporation shall return the amount of the deposit with accrued interest when the
Utah Housing Corporation has received:
(i)
repayment of the loan financing; or
(ii)
proceeds from the sale or other disposition of the homes in the qualified project.
(b)
The Utah Housing Corporation may return the deposit later than the time period
described in Subsection
(2)(b)(ii)(A) or (D)
(2)(a)(ii)(A) or
(D)
without penalty.
(4)
A qualified depository may return the deposit earlier than the time period described in
Subsection
(2)(b)(ii)
(2)(a)(ii)
without penalty.
(5)
The state treasurer shall deposit the return of the amount of the deposit, including
interest, into the fund.
Section 4. Section
51-12-203
is amended to read:
51-12-203
Effective
05/06/26
Repealed
07/01/27
. Penalty.
A developer,
city of the first or second class
a qualifying city
, or a qualified depository
that fails to comply with the terms of deposit is disqualified from subsequent participation in
the Utah Homes Investment Program.
Section 5. Section
51-12-204
is amended to read:
51-12-204
Effective
05/06/26
Repealed
07/01/27
. Exception to credit union
lending requirements.
Notwithstanding any provision of Title 7, Chapter 9, Utah Credit Union Act, or any
other applicable statute requiring membership in the credit union by a borrower, a state or
federally chartered credit union may make a loan to a developer or
city of the first or second
class
qualifying city
of a qualified project and may request a deposit in accordance with
Sections
51-12-201
and
51-12-202
.
Section 6. Section
63I-1-251
is amended to read:
63I-1-251
Effective
05/06/26
. Repeal dates: Title 51.
(1)
Subsection
51-7-2(1)(p)
, regarding the Transportation Infrastructure General Fund
Support Subfund, is repealed July 1,
2028
2029
.
(2)
Title
51, Chapter 12
, Utah Homes Investment Program, is repealed July 1,
2028
2029
.
Section 7. Section
63I-1-272
is amended to read:
63I-1-272
Effective
05/06/26
. Repeal dates: Title 72.
(1)
Subsection
72-1-217(4)
, regarding highway reduction strategies within Salt Lake City,
is repealed July 1, 2029.
(2)
Section
72-2-134
, Transportation Infrastructure General Fund Support Subfund, is
repealed July 1,
2028
2029
.
(3)
Title 72, Chapter 4, Part 3, Utah State Scenic Byway Program, is repealed January 2,
2030.
(4)
Title 72, Chapter 10, Part 13, Spaceport Exploration Committee, is repealed July 1,
2027.
Section 8.
Effective Date.
This bill takes effect on
May 6, 2026
.
2-27-26 3:47 PM