Utah Valley Times

This week, Representative John Curtis (R-UT) introduced the Home Ownership, Mortgage, and Equity Savings (HOMES) Act. The bill aims to make homeownership more accessible for Utah residents by allowing individuals with self-directed IRA accounts to use their retirement savings to purchase a primary residence for themselves or an immediate family member.

"Homeownership is more than just having a place to live—it’s about building roots in a community and creating a solid investment for the future," said Rep. Curtis. "Utahns should be allowed to use their own money to achieve homeownership, and this legislation would enable families to pool their resources more effectively and invest in their future."

A self-directed IRA functions similarly to a traditional IRA but gives account holders control over their investment decisions, including real estate. Currently, funds from these IRAs cannot be used to buy a primary residence for the account holder or an immediate family member. These funds are limited to investment properties with restrictions that prevent renting them out to family members.

The HOMES Act proposes changes that would allow individuals to use their self-directed IRAs for purchasing homes for themselves or immediate relatives such as parents, children, or grandchildren. The legislation recognizes investing in a home as a valuable retirement investment.

Furthermore, the bill seeks parity between government employees using the Thrift Savings Plan (TSP), who can borrow up to $50,000 for a primary residence, and those with self-directed IRAs in the private sector by raising the borrowing limit for primary residences to $50,000.

The introduction of this bill coincides with efforts by other lawmakers addressing housing challenges in Utah. This week, Utah State Representative Tyler Clancy discussed initiatives aimed at preventing multinational corporations from buying single-family homes in the state.