There is created the First-Time Homebuyer Assistance Program administered by the corporation.
Terms Used In Utah Code 63H-8-502
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Corporation: means the Utah Housing Corporation created by Section 63H-8-201, which, prior to July 1, 2001, was named the Utah Housing Finance Agency. See Utah Code 63H-8-103
in the case of a sale, the sales price for which the qualifying residential unit is sold by the recipient in a bona fide sale to a third party with no right to repurchase; or
(ii)
in the case of a refinance, the current appraised value of the qualifying residential unit; and
(b)
the total payoff amount of any qualifying mortgage loan that was used to finance the purchase of the qualifying residential unit. See Utah Code 63H-8-501
Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
Mortgage: means a mortgage, deed of trust, or other instrument securing a mortgage loan and constituting a lien on real property (the property being held in fee simple or on a leasehold under a lease having a remaining term, at the time the mortgage is acquired, of not less than the term for repayment of the mortgage loan secured by the mortgage) improved or to be improved by residential housing, creating a lien that may be first priority or subordinate. See Utah Code 63H-8-103
Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
Program: means the First-Time Homebuyer Assistance Program created in Section 63H-8-502. See Utah Code 63H-8-501
Program funds: means money appropriated for the program. See Utah Code 63H-8-501
Qualifying residential unit: means a residential unit that:
(a)
is located in the state;
(b)
is new construction or newly constructed but not yet inhabited;
(c)
is financed by a qualifying mortgage loan;
(d)
is owner-occupied upon purchase; and
(e)
is purchased for an amount that does not exceed:
(i)
$450,000; or
(ii)
if applicable, the maximum purchase price established by the corporation under Subsection 63H-8-502(6). See Utah Code 63H-8-501
Recipient: means a first-time homebuyer who receives program funds. See Utah Code 63H-8-501
Residential unit: includes a manufactured home or modular home that is attached to a permanent foundation. See Utah Code 63H-8-501
(2)
Subject to appropriations from the Legislature, the corporation shall distribute program funds to first-time homebuyers to provide support for the purchase of qualifying residential units.
(3)
The maximum amount of program funds that a first-time homebuyer may receive under the program is $20,000.
(4)
(a)
A recipient may use program funds to pay for:
(i)
the down payment on a qualifying residential unit;
(ii)
closing costs associated with the purchase of a qualifying residential unit;
(iii)
a permanent reduction in the advertised par interest rate on a qualifying mortgage loan that is used to finance a qualifying residential unit; or
The corporation shall direct the disbursement of program funds for a purpose authorized in Subsection (4)(a).
(c)
A recipient may not receive a payout or distribution of program funds upon closing.
(5)
The builder or developer of a qualifying residential unit may not increase the price of the qualifying residential unit on the basis of program funds being used towards the purchase of that qualifying residential unit.
(6)
In accordance with rules made by the corporation under Subsection (9), the corporation may adjust the maximum purchase price of a qualifying residential unit for which a first-time homebuyer qualifies to receive program funds in order to reflect current market conditions, provided that the corporation adjusts the maximum purchase price under this Subsection (6) no more frequently than once each calendar year.
(7)
If the recipient sells the qualifying residential unit or refinances the qualifying mortgage loan that was used to finance the purchase of the qualifying residential unit before the end of the original term of the qualifying mortgage loan, the recipient shall repay to the corporation an amount equal to the lesser of:
(a)
the amount of program funds the recipient received; or
(b)
50% of the recipient’s home equity amount.
(8)
Any funds repaid to the corporation under Subsection (7) shall be used for program distributions.
(9)
The corporation shall make rules governing the application form, process, and criteria the corporation will use to distribute program funds to first-time homebuyers.
(10)
The corporation may use up to 5% of program funds for administration.
(11)
The corporation shall report annually to the Social Services Appropriations Subcommittee on disbursements from the program and any adjustments made to the maximum purchase price of a qualifying residential unit under Subsection (6).
