Committee unanimously backs amendments to Utah Home Investment Program to free up lending for small builders

The Senate Economic Development and Workforce Services Standing Committee unanimously passed Senate Bill 277, which amends the Utah Home Investment Program to increase flexibility for a treasurer-managed investment fund that supports housing infrastructure and small-builder lending.

Sponsor Senator Stratton said the bill removes a 150-basis-point cap that earlier constrained lenders’ willingness to participate, extends the program’s fund availability from 2028 to 2029, and authorizes a beta test to measure the in-state economic impact of deploying deposit funding through local financial institutions. The sponsor said these changes aim to help small and medium-sized homebuilders — an important source of starter-home supply — and to free funding for infrastructure that unlocks already-planned development.

A representative from the Treasurer’s office explained the vehicle is a subset of the Treasurer’s Investment Fund (TIF) and that the legislative changes will allow banks to compete for deposits and then use those funds to lend for construction. Presenters stressed the state would not guarantee loans; banks remain responsible for underwriting and loan outcomes.

Local stakeholders testified in support. Cameron Dale of the Utah League of Cities and Towns told the committee that selected cities have 109,000 housing units planned but many are stalled by infrastructure needs; he said the bill provides flexibility needed to build infrastructure. Chris Gambrulis/Cambrulis (transcript spelling varies) of Ivory Development and the Utah Property Rights Coalition also urged support, saying the bill helps small and medium builders access capital.

Senator Stevenson moved the bill out of committee with a favorable recommendation; the committee voted unanimously to advance SB 277 to the Senate.