Governor Huntsman’s And The Utah Legislature’s Bank Bailout

Lets all join hands and sing.  Our legislators have saved us and given about $10 Million of your tax money to banks and the real estate industry.  They did so in SB 260 (“Housing Relief Restricted Special Revenue Fund”).

The Utah Legislature authorized a $6,000 grant in “free” money (it does not need to be payed back).  Here are the ‘qualifications’ stipulated in SB260 (click here for the vote record):

(1) Subject to the availability of funds in the Housing Relief Restricted Special Revenue Fund created in Section , the corporation shall approve on behalf of the state a grant of $6,000 to a person who:
(a) purchases [of] a newly constructed, never-occupied residence in Utah using a 30-year fixed interest rate note and mortgage; and 67-4-18
(b) meets the requirements established in Subsections (2) and (3).
(2) A person may not receive a grant under this section if the person’s income, asdetermined by the corporation, exceeds:
(a) $75,000 for a single person; or
(b) $150,000 for a married couple.
(3) The corporation shall establish procedures for determining a person’s eligibility for a grant under this section, including establishing a limit on the time for which the funds for a grant may remain in escrow, which may not exceed 90 days

From my interpretation of the rules for the grant, it looks like I can go buy a vacation home and you will give me $6,000 to do so even if it is my second, third…or whatever home.   After reading the bill, it looks like I could even buy a home as a rental property and still get $6,000 for my venture.  Additionally, the money can be used in addition to the Federal $8,000 tax credit Congress passed.

The bill is, obviously, backed by the real-estate and banking industry.  Take notice of the 30 year mortgage requirement, for example.  Ultimately, this bill is just another way of funneling your money to artificially float an industry.  This time it is at the local, rather than national level but is a supplement to the Federal bailout bill for those sectors – and our local banks (especially Zions Bank) are quite familiar with bailout money.

The only recourse, at this point is to ask Governor Huntsman to veto the bill.  My understanding is that Huntsman is a stong support of the bill, but go ahead and contact his office, anyway (be polite).


One thought on “Governor Huntsman’s And The Utah Legislature’s Bank Bailout

  1. […] So far, I know he’s a former Centerville Councilman and is heavily involved in real estate and appears to partner with the Salt Lake Chamber of Commerce.  The Realtors are a major lobbying/special interest force as is the Salt Lake Chamber of Commerce.  The Chamber and Realtors lobbied for HB116 (illegal immigrant amnesty – see Ericksen section) and both have a track history for corporate welfare (like the Utah new home purchase credit). […]

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