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This page was last updated on September 20, 2026.
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Homeownership Through CRA Loans
House Sponsor Stephen Otterstrom
About the Bill
SHORT DESCRIPTION:
To make homeownership more attainable, this legislation would incentivize Community Reinvestment Agencies to provide shared appreciation loans.
FULL DESCRIPTION:
Utah has approximately 80 Community Reinvestment Agencies (CRAs), with a total value in cash and real property of over $46,000,000,000. The general purpose of these agencies is to buy, improve, sell or otherwise use/leverage real property for the benefit of all residents. One of the greatest needs facing residents today is the need for attainable, affordable and ownable places to live. These CRAs, along with the State of Utah, are uniquely positioned to help Utahns own where they live, and allow the CRAs and the state to recover their original investment and gain the benefit of appreciation to expand the program to new families and individuals.
A shared appreciation loan is unlike a conventional loan. There is no interest and no payment until the property is sold or refinanced. At the time of sale or refinance, the lender is entitled to a percentage of the present value of the property equal to the percentage they originally purchased. For example:
If the loan was used to cover 22% of the value of a $350,000 purchase, $77,000 would be the amount of the original loan.
15 years later, when the property sells for $500,000, the house would have appreciated $150,000. The lender would receive 22% of the appreciation ($33,000) plus the original investment ($77,000), for a net total of $110,000.
To incentivize CRAs to participate, I propose that the state would provide 25% of the funding and receive a proportional amount of the appreciation at the time the property is sold. This incentive is patterned after S.B. 262 (2025), which relied on a public-private partnership to fund the shared appreciation loans.