Utah Senate approves $50 million first-time homebuyer loan program to aid new-construction buyers
February 21, 2023 | 2023 Utah Legislature, Utah Legislature, Utah Legislative Branch, Utah
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President Jay Stewart Adams opened debate on first substitute Senate Bill 240, the First-Time Homebuyer Assistance Program, saying the measure aims to shift focus back to homeownership and help new buyers afford homes.
Adams said the bill creates a $20,000 loan "It's not a gift. It's not a grant. It's actually a a loan" that a qualified first-time buyer may use to buy rate buydowns, provide a down payment or cover closing costs. The sponsor told senators the loan will be focused on new construction with the aim of increasing housing supply for first-time buyers.
Senators pressed the sponsor on details about eligibility and administration. Senator Vickers asked how a "first-time homebuyer" is defined; Adams said the bill generally treats someone as a first-time buyer if they haven’t owned a home in the previous three years. Senator Fillmore asked about repayment terms and whether the loan could remain a lien for decades; Adams said the loan becomes a lien on the property and would be paid off on refinance or sale, with limited exceptions.
On program administration, the sponsor said the program will be embedded at the Utah Housing Corporation, which has rulemaking authority to focus eligibility on low- and moderate-income families and to issue rules subject to legislative administrative rules review. The sponsor said the requested appropriation is $50 million and estimated the program could serve roughly 2,500–3,500 families (about 10,000–15,000 people if average household size is applied).
Senator Bramble and others sought confirmation that rules will be subject to the Administrative Rulemaking Act and legislative oversight; the sponsor confirmed Utah Housing will administer the program and that rules will fall under standard review processes. Senators also discussed program timing and the expectation that one-time funding is timely given recent interest-rate increases.
After debate and clarifications, the Senate voted to read first substitute SB 240 for a third time. The clerk announced the tally: 29 yea, 0 nay, 0 absent; the bill passed this body and will be sent to the House for their consideration.
The next procedural step is transmittal to the House; sponsors said they will work with stakeholders on technical rule language and any needed substitute language on third reading.
Adams said the bill creates a $20,000 loan "It's not a gift. It's not a grant. It's actually a a loan" that a qualified first-time buyer may use to buy rate buydowns, provide a down payment or cover closing costs. The sponsor told senators the loan will be focused on new construction with the aim of increasing housing supply for first-time buyers.
Senators pressed the sponsor on details about eligibility and administration. Senator Vickers asked how a "first-time homebuyer" is defined; Adams said the bill generally treats someone as a first-time buyer if they haven’t owned a home in the previous three years. Senator Fillmore asked about repayment terms and whether the loan could remain a lien for decades; Adams said the loan becomes a lien on the property and would be paid off on refinance or sale, with limited exceptions.
On program administration, the sponsor said the program will be embedded at the Utah Housing Corporation, which has rulemaking authority to focus eligibility on low- and moderate-income families and to issue rules subject to legislative administrative rules review. The sponsor said the requested appropriation is $50 million and estimated the program could serve roughly 2,500–3,500 families (about 10,000–15,000 people if average household size is applied).
Senator Bramble and others sought confirmation that rules will be subject to the Administrative Rulemaking Act and legislative oversight; the sponsor confirmed Utah Housing will administer the program and that rules will fall under standard review processes. Senators also discussed program timing and the expectation that one-time funding is timely given recent interest-rate increases.
After debate and clarifications, the Senate voted to read first substitute SB 240 for a third time. The clerk announced the tally: 29 yea, 0 nay, 0 absent; the bill passed this body and will be sent to the House for their consideration.
The next procedural step is transmittal to the House; sponsors said they will work with stakeholders on technical rule language and any needed substitute language on third reading.
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