BB26-1 Subordinate Shared Appreciation Loan Program

The State of Utah, through the Department of Workforce Services and Division of Purchasing, is seeking a contractor to administer the Subordinate Shared Appreciation Loan Program established by SB 262 in the 2025 General Session. This Request for Proposal (RFP) aims to select a single vendor to provide subordinate loans for residential properties, with a focus on supporting first-time homebuyers and rural housing development. The contract will run for one year with four potential one-year renewals, and the contractor must provide at least two Subordinate Loans by June 30, 2026. Eligible borrowers must have household incomes up to 140% of Area Median Income, with loans not exceeding $150,000 per residential unit. The evaluation process involves a comprehensive scoring methodology, with vendors required to achieve a minimum of 105 out of 150 possible technical points, including criteria such as experience providing loans, insurance coverage, and alignment with the Utah Housing Corporation's First Time Homebuyer Program. The solicitation was posted on July 15, 2025, with proposals due by August 4, 2025, and vendors must submit responses through the Utah Procurement Portal (U3P).

The procurement is specifically targeted at non-profit organizations or partnerships with non-profit entities, with mandatory requirements including authorization to do business in Utah and securing a 3:1 matching funds commitment. Contractors must demonstrate professional experience in providing or purchasing loans and have condominium construction liability insurance. The total contract value is $250,000, with $25,000 allocated for program administration and $225,000 designated for awarding Subordinate Loans. The loans will be non-interest bearing with flexible repayment terms and include a shared appreciation component where borrowers repay the principal plus a proportionate share of home price appreciation upon sale or refinancing. The program prioritizes projects in rural or lower-population counties and requires at least 75% private funds to 25% program funds. Unique to this procurement, Utah Dream Fund, L3C was the sole respondent and was evaluated and scored, ultimately receiving 111 out of 150 possible points, which qualified them for contract award. The contract will be managed by the Department of Workforce Services, with the state retaining final authority on policy and procedure matters.