This week, Representative John Curtis (R-UT) introduced the Home Ownership, Mortgage, and Equity Savings (HOMES) Act, a bill that would make homeownership more accessible for Utah’s residents. The proposed legislation would allow 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 operates similarly to a traditional IRA but allows the account holder to control their own investment decisions, including real estate.

Under current rules, funds from a self-directed IRA cannot be used to purchase a primary residence for the account holder or an immediate family member. These funds are restricted to investment properties, with limitations that prevent renting to family members. The HOMES Act would change that, allowing individuals to use their self-directed IRA to buy homes for themselves or immediate relatives, such as parents, children, or grandchildren. The legislation acknowledges that investing in a home is a valuable retirement investment.

Additionally, the bill seeks to establish parity between government employees who use the Thrift Savings Plan (TSP) — who are currently allowed to 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 the same $50,000 level.

The introduction of this bill aligns with recent efforts by other lawmakers to address housing challenges in Utah. This week, Utah State Representative Tyler Clancy discussed initiatives to prevent multinational corporations from purchasing single-family homes in the state.

For bill text, click here.