51-12 - Utah Homes Investment Program
Title 51 > 51-12
Sections (6)
General Provisions
51-12-101 - Definitions.
As used in this chapter:
(1) “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) “City of the first class” means the same as that term is defined in Section 10-2-301.
(3) “City of the second class” means the same as that term is defined in Section 10-2-301.
(4) “Fund” means the Transportation Infrastructure General Fund Support Subfund created in Section 72-2-134.
(5) “Political subdivision” means:the municipality in which the attainable home is located; orthe county, if the attainable home is located in an unincorporated portion of the county.
(6) “Qualified depository” means: the same as that term is defined in Section 51-7-3; orthe Utah Housing Corporation as described in Title 63H, Chapter 8, Utah Housing Corporation Act.
(7) “Qualified project” means a new construction housing development project in the state for which the developer:commits to:offering for sale no fewer than 60% of the total units within the project as attainable homes;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; andhaving a plan to provide information to potential buyers of attainable homes about the First-Time Homebuyer Assistance Program created in Section 63H-8-502; andexecutes 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).”Qualified project” includes infrastructure within the housing development project.”Qualified project” includes a project by a city of the first or second class that commits to: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) for a project as an attainable home;using the deposit to acquire and rehabilitate single-family homes within the city limits of the city of the first or second class boundaries;offering for sale the rehabilitated single-family home as an attainable home, including in the deed of sale for an attainable home a restriction, in favor of the city of the first or second class, that the attainable home be owner-occupied for no fewer than five years; andexpanding an existing effort to acquire and rehabilitate single-family homes as described in Subsections (7)(c)(ii) and (iii).
Amended by Chapter 391, 2025 General Session
51-12-102 - Reporting.
(1) The state treasurer shall share the information reported in accordance with Subsection 51-Ch51_12|51-12-202](d) 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:the dollar amount of deposits and the number of qualified depositories in which a deposit is made in accordance with Part 2, Investment Program;the information reported in accordance with Subsection 51-Ch51_12|51-12-202](d); andthe impact of the Utah Homes Investment Program on the availability of housing in the state.
Enacted by Chapter 510, 2024 General Session
Investment Program
51-12-201 - Investment opportunities.
(1) A qualified depository may request the state treasurer to make a deposit in the qualified depository if the qualified depository:has identified and approved for financing a qualified project; andrequests no more than 100% of the financing for a qualified project.
(2) Subject to Subsection (3), the state treasurer shall approve the qualified depository’s request for deposit:unless the state treasurer determines the qualified depository does not merit deposit under fiduciary duties and prudent investment practices within the parameters of this chapter;in an amount that is equal to the lesser of:the deposit amount requested;$60,000,000; or50% of the qualified depository’s maximum amount of public deposits determined in accordance with Section 51-7-18.1; andas sufficient money becomes available in the fund and in accordance with Subsection 72-Ch72_2|72-2-134](a).
(3) The state treasurer may not approve a request for deposit after December 31, 2027.
(4) The state treasurer shall notify Utah Housing Corporation of any qualified projects for which the state treasurer makes a deposit in a qualified depository.
Amended by Chapter 391, 2025 General Session
51-12-202 - 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: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;shall return the amount of deposit:with interest at a rate equal to the greater of:the federal funds effective rate at the time of the deposit minus 200 basis points; or0.5%; andat the earlier of:24 months from the day on which the deposit is made;repayment of the loan financing;the sale of the last home in the qualified project; orJune 30, 2028;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 of the qualified project; andshall report to the state treasurer the total number of housing units and the number of attainable homes each qualified project created.
(3) Notwithstanding the provisions of Subsections (2)(b)(ii) and (2)(c), 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:repayment of the loan financing; orproceeds from the sale or other disposition of the homes in the qualified project.The Utah Housing Corporation may return the deposit later than the time period described in Subsection (2)(b)(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) without penalty.
(5) The state treasurer shall deposit the return of the amount of the deposit, including interest, into the fund.
Amended by Chapter 391, 2025 General Session
51-12-203 - Penalty.
A developer, city of the first or second class, or a qualified depository that fails to comply with the terms of deposit is disqualified from subsequent participation in the Utah Homes Investment Program.
Amended by Chapter 391, 2025 General Session
51-12-204 - 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 of a qualified project and may request a deposit in accordance with Sections 51-12-201 and 51-12-202 .
Amended by Chapter 391, 2025 General Session