Utahns make dash for 'Home Runs': Supply of $6,000 federal grants for those buying new homes is almost exhausted

Move over, Barry Bonds, and take the asterisk with you. Utah is the current "Home Run" leader these days.

Since being signed into law in mid-March, the state's "Home Run" housing grant program has committed to doling out more than 1,400 grants of $6,000 each to Utahns purchasing newly constructed, never-occupied, single-family homes.

Demand has exceeded expectations to the point that the Utah Housing Corp., which administers the grants, anticipates the $10 million one-time federal stimulus money funding the program will be gone by week's end. A check of the corporation's Web site late Tuesday showed only 158 grants remaining.

"We're getting down to the last grants, that's for sure," said Jonathan Hanks, senior vice president and COO for the Utah Housing Corp. "We gave them out a little faster than anticipated."

And when they're gone, they're gone, Hanks said, discounting as hearsay recent rumblings — especially out in the building community — that the grants may be continued or that a similar program may be in the works.

Branden Hansen, Bank of Utah senior vice president of residential lending, said he's also surprised how quickly the Home Run grant funds have flown out the door.

"By and large (the program) has gone very well, and it was beneficial for us to promote as a lender," Hansen said, explaining the grants were well-received because they weren't restricted to first-time buyers and could also be used toward one's down payment.

Longtime renter Lisa Bowen, an editorial assistant at the Deseret News, said Utah's Home Run grant partly motivated her to take the ownership plunge. She's buying a 1,000-square-foot, two-bedroom, two-bath condominium near State Street in Salt Lake City.

"Yes, it helped drive my decision," said Bowen, who intends using her grant for a portion of the FHA's required down payment of 3.5 percent of the condo's purchase price. Bowen will also qualify for the federal government's tax credit for first-time buyers, which can be as much as $8,000.

Hanks estimates his office will award between 1,600 and 1,650 Home Run grants. The total number depends on final administrative and legal costs incurred. Any savings realized over initial cost projections will be used to fund additional grants.

Fears the grants might end up being used to subsidize purchases of expensive upscale homes were unfounded. Most of the grant money has gone to assist the lower- and middle-income Utahns that it targets.