*NEW INFORMATION FROM UTAH HOUSING CORP*

What is the $6,000 Home Run Grant?

The Home Run Grant is a mortgage assistance program that grants $6,000 to home buyers who purchase a newly-constructed, never-occupied primary, single-family residence in Utah.  The Home Run Grant is funded by the Housing Relief Restricted Special Revenue Fund, established by Utah Governor Jon Huntsman, the Utah State Legislature, and Utah Housing Corporation.  

 

When is the Home Run Grant program being launched?

The governor has signed the bill into law and the program is now launched.

 

Who is eligible to receive a $6,000 Home Run Grant?

• Home buyers must meet the following income restrictions:
  • Single person, $75,000
  • Married couple, $150,000
  • If more than one unmarried person is taking title to the Eligible Home, each such single person is subject to the $75,000 income limit.
• Home buyers must occupy the purchased home as a primary, permanent residence no later than 30 days after closing.
• If home buyers need a mortgage loan to purchase the home, the loan must be a fixed interest rate, amortizing mortgage loan with a term of 30 years or less.  Cash buyers can also qualify by contacting Utah Housing Corporation directly.

How does a home buyer get the Home Run Grant funds?

To get a first-come, first-served written commitment for the Grant, home buyers must:

•  
  • Enter into a written contract to purchase a newly-constructed, single –family home.
  • Contact a lender to obtain final underwriting approval for any needed financing.
  • Have their mortgage lender furnish required documentation to Utah Housing Corporation for the Grant.
  • Utah Housing will reserve the $6,000 Grant for 30 days.

 

What homes can be purchased with a $6,000 Home Run Grant?

Homes must be recently-constructed, single-family residences that have a Certificate of Occupancy or a Final Inspection.  They cannot be previously-occupied.  Eligible property types include single-family detached homes, condominiums, planned unit developments (PUD), twin homes, town homes and manufactured homes permanently affixed to a foundation.

 

How does a home buyer apply for a $6,000 Home Run Grant?

Home buyers should tell their home builder, realtor and mortgage lender that they want to apply for a Home Run Grant. Mortgage lenders are the key link between the home buyer and the Home Run Grant. The mortgage lender assists the home buyer to provide necessary information to secure the grant from Utah Housing Corporation.  The home buyer does not work directly with Utah Housing Corporation (unless it is a cash buyer).     

 

What type of loan can home buyers use to purchase the home?

If home buyers need a mortgage loan, it must be a fixed interest rate loan with a term of 30 years or less.  Loans may be obtained from any lender qualified to make mortgage loans under Utah law.  Examples of qualifying loans include:

*        Conventional

*        FHA, VA, or Rural Housing

*        Utah Housing Corporation’s FirstHome and FirstHome Plus

 

What mortgage lenders can assist homebuyers to secure a $6,000 Home Run Grant?

Any mortgage lender qualified to make mortgage loans under Utah law can assist home buyers to secure the Home Run Grant.

 

Do I have to be a first time home buyer to get a Home Run Grant?

No.  Home Run Grants are available to all home buyers who meet the income restrictions of $75,000 for singles, $150,000 for couples and, if more than one single person takes title, the $75,000 limit applies to each such single person. 

 

Can the $6,000 Home Run Grant be combined with the new $8,000 federal tax credit?

Yes, if a home buyer is a first-time home buyer and meets the independent criteria of both the federal and Home Run programs, they may take advantage of both.   The $6,000 Home Run Grant is available to both those who are first-time home buyers as well as those who previously owned a home.  The  $8,000 federal tax credit is available only to first-time home buyers.

 

How many Home Run Grants are available to home buyers?

A total of approximately1,600 grants are available. Each grant is $6,000.  Only one grant can be used for the purchase of each home.  Home Run Grants are distributed on a first-come, first-served basis to qualified home buyers.  The approximate number of remaining grants will be posted on the UHC web page at www.utahhousingcorp.org.

 

How are Home Run applications submitted?

Home Run applications are submitted through a home buyer’s mortgage lender.  Home buyer applications cannot be made directly to Utah Housing Corporation unless the Buyer is paying cash for the Home. 

 

Is the Home Run Grant taxable?

The Home Run Grant may be taxable as income under federal and state tax laws.  UHC has requested a ruling from the Internal Revenue Service (IRS) about whether or not a Home Run Grant will be taxable.  UHC does not give tax advice and home buyers should review the ruling and other pertinent tax information in connection with the preparation of their 2009 tax returns.

 

If I have additional questions, who do I contact?

 

Are you feeling left out from the Federal First Time Home Buyer Tax Credit of $8,000 Dollars? Or are you a first time home buyer and $14,000 sounds a lot better then $8,000?  Well good news, Utah Legislators just passed a bill which would provide ANYONE who purchases a new never occupied home with a $6,000 dollar grant. Here is a copy of the bill which passed the senate and is waiting for a the Governers signature.  This grant can be combined with the Federal $8,000 dollar first time home buyer credit or if you don’t qualify as a first time home buyer you can still recieve the grant.   I have included a copy of the bill below as well as a link to the utah state legislature page confirming this information.    We are just waiting on the Govenors signature.   
Second Substitute S.B. 260
This document includes House Floor Amendments incorporated into the bill on Thu, Mar 12, 2009 at 10:13 AM by ddonat. –>

Representative Brad L. Dee proposes the following substitute bill:

1
HOUSING RELIEF RESTRICTED SPECIAL

2
REVENUE FUND

3
2009 GENERAL SESSION

4
STATE OF UTAH

5
Chief Sponsor: Scott K. Jenkins

6
House Sponsor: Michael T. Morley

7
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8 LONG TITLE
9 General Description:
10 This bill creates the Housing Relief Restricted Special Revenue Fund and provides for
11 grants to be made from the fund for homebuyers purchasing a newly constructed
12 residence.
13 Highlighted Provisions:
14 This bill:
15 . provides that the Utah Housing Corporation administer grants to the buyers of a
16 newly constructed residence;
17 . requires the state treasurer to fund grants made to buyers of newly constructed
18 residences; and
19 . creates the Housing Relief Restricted Special Revenue Fund, from which grant
20 monies will be paid.
21 Monies Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 This bill provides an immediate effective date.
25 Utah Code Sections Affected:

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House Floor Amendments 3-12-2009 dd/
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26
ENACTS:
27 9-4-927, Utah Code Annotated 1953
28 67-4-18, Utah Code Annotated 1953
29
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30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 9-4-927 is enacted to read:
32 9-4-927. New housing grants — Reimbursement from Housing Relief Restricted
33 Special Revenue Fund.
34 (1) Subject to the availability of funds in the Housing Relief Restricted Special
35 Revenue Fund created in Section 67-4-18 , the corporation shall approve on behalf of the state a
36 grant of $6,000 to a person who:
37 (a) purchases H. [ of ] .H a newly constructed, never-occupied residence in Utah using
37a a 30-year
38 fixed interest rate note and mortgage; and
39 (b) meets the requirements established in Subsections (2) and (3).
40 (2) A person may not receive a grant under this section if the person’s income, as
41 determined by the corporation, exceeds:
42 (a) $75,000 for a single person; or
43 (b) $150,000 for a married couple.
44 (3) The corporation shall establish procedures for determining a person’s eligibility for
45 a grant under this section, including establishing a limit on the time for which the funds for a
46 grant may remain in escrow, which may not exceed 90 days H. [ unless the corporation determines
47 there is good cause for extending the time ] .H .
48 Section 2. Section 67-4-18 is enacted to read:
49 67-4-18. Housing Relief Restricted Special Revenue Fund — Payments to Utah
50 Housing Corporation.
51 (1) As used in this section, “fund” means the Housing Relief Restricted Special
52 Revenue Fund created by this section.
53 (2) There is created the Housing Relief Restricted Special Revenue Fund.
54 (3) The fund shall be comprised of monies deposited in the fund from monies received
55 as a result of the federal American Recovery and Reinvestment Act of 2009.
56 (4) Monies in the fund shall be expended to fund grants to be made by the Utah

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57
Housing Corporation in accordance with Section 9-4-927 .
58 (5) The treasurer may place funds in an escrow account, upon which the Utah Housing
59 Corporation may draw to make grants in accordance with Section 9-4-927 .
60 (6) The treasurer may use monies from the fund to pay the costs of escrow and other
61 expenses of the corporation in connection with its duties under Section 9-4-927 .
62 (7) The treasurer shall administer the fund and make payments from the fund in
63 accordance with this section and Section 9-4-927 .
64 Section 3. Effective date.
65 If approved by two-thirds of all the members elected to each house, this bill takes effect
66 upon approval by the governor, or the day following the constitutional time limit of Utah
67 Constitution Article VII, Section 8, without the governor’s signature, or in the case of a veto,
68 the date of veto override.
You can read the entire bill as passed here.

Please call or email me with any questions.

Sam Dodd

435-701-0448   

Email: team@cedarcityonline.com