Prospective Utah homebuyers now have a second chance to hit a "home run" in the housing market.

Gov. Gary Herbert on Friday announced the extension of a grant program aimed at stimulating the state's economy.

The $8 million Phase Two of the Home Run program will allow as many as 2,000 Utahns to receive $4,000 each toward the purchase of a newly constructed home, a news release stated.

First signed into law in March, the program's $10 million first phase resulted in more than 1,600 grants of $6,000, the release said.

"The infusion of this money into the housing market will allow us to leverage our federal stimulus funds to give us the greatest return on investment and promote economic development in the state," Herbert said in the release.

"The 'ripple effect' of this program could help us see … nearly 9,000 jobs saved or created, plus some $25 million in income and sales taxes returned to the state as a result of increased economic activity," he added.

The decision to extend the program has received praise from the Salt Lake Chamber's Can-Do Coalition on Friday.

"The Home Run grant program meets the essential criteria for the effective use of stimulus money: it is targeted, timely and leveraged," read a statement released by the coalition.

The Can-Do Coalition is a group of local business leaders, government officials and nonprofit leaders who support the creation of specific projects that will provide the greatest return on investment for Utah business owners and workers.

"The housing sector led us into the recession and selling existing, new construction inventory will play a significant role in leading us out," the coalition said. "Providing incentive for home sales puts many workers back on the job."

Analysis by the University of Utah's Bureau of Economic and Business Research indicates that the initial program phase helped leverage $376 million in sales of new homes.

The governor's office said the smaller grant amounts for the second phase are meant to increase the number of homebuyers who take advantage of the program, particularly in the category of more affordable homes.

"The vast majority (of the grants) have gone for homes in the affordable range up to $300,000," Jonathan Hanks, senior vice president and chief operating officer of the Utah Housing Corp., told the Deseret News in June.

As with Phase One, the Home Run 2 program will be administered by the Utah Housing Corp.

Hanks said the total number of homebuyers served would depend on final administrative and legal costs, with any savings realized over initial cost projections used to fund additional grants.