UtahH.B. 4362026 General SessionHouseWALLET

Moderate Income Housing Infrastructure Amendments

Sponsored By: Stephanie Gricius (Republican)

Signed by Governor

CountiesLand UseHousingMunicipalitiesPolitical Subdivisions (Local Issues)TransportationTransportation FundingActive Transportation Investment Fund

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 1 costs, 3 mixed.

More transit funding and Cottonwood hub focus

The Transit Transportation Investment Fund can now receive more types of money, including certain tax deposits, legislative appropriations, sales tax growth from housing‑transit zones, transfers of local option taxes, and private donations or grants. Starting with the fiscal year that begins July 1, 2025, sales tax growth over 2025 collections is used for access and building a public transit hub in Big Cottonwood Canyon. These funding rules take effect July 1, 2026.

No TIF funds for noncompliant areas

If the state finds a city or county ineligible under the housing rules, the DOT director cannot program Transportation Investment Fund or Transit TIF money for commission‑prioritized projects in that place. Allowed: funding for a limited‑access facility or an interchange that connects limited‑access facilities, and multi‑community fixed‑guideway transit projects. Not allowed: construction, reconstruction, or renovation of a limited‑access interchange or a fixed‑guideway station. These limits start July 1, 2026 and last until eligibility is restored.

Cities must file housing plans or pay

Specified cities and towns must send an initial moderate‑income housing plan to the state. New qualifying cities after January 1, 2023 file by August 1 of the first qualifying year, then file a progress report every year by August 1. Reports must list actions taken, land‑use changes, barriers, ADU permits, entitled units, certificates of occupancy in the last 12 months, estimated percent change in total units, maps, market response, and requests for state help. Compliance rules: no fixed‑guideway station = plan three or more strategies; with a fixed‑guideway station = a larger, specific mix of strategies. Cities without a fixed‑guideway station can adopt one listed program by ordinance or development agreement and have it count as three strategies and as compliant for that year and the next two. For 2026, a city that complied in 2025 stays compliant and keeps any 2025 priority; by July 1, 2026 it must report certificates of occupancy for the prior 12 months. If a report is not compliant, the city has 90 days to cure or 10 days to appeal to a three‑member board; otherwise it is ineligible for certain funds and pays $250 per day starting with 2024 reports, and $500 per day for consecutive‑year failures starting with 2025 reports. While ineligible, the DOT cannot program Transportation Investment Fund money to projects in the city.

Counties must file housing plans and updates

Specified counties must send an initial moderate‑income housing plan to the state and, after that, a yearly progress report by August 1. Reports must cover actions taken, land‑use decisions, barriers, entitled units, counts of internal and external ADUs with permits or rental licenses, maps, market response, and recommendations. A county is compliant if it plans three or more listed strategies or at least one advanced strategy; using an advanced strategy counts for the year and the next two years. If the county fails to submit, fix, or timely appeal, it is ineligible for Transportation Investment Fund programming in unincorporated areas and pays $250 per day starting with 2024 reports, and $500 per day for consecutive‑year failures starting with 2025 reports. Appeals go to a three‑member board (counties, homebuilders, and regional governments); the board’s written decision is final.

Project ranking favors housing and transit zones

The Transportation Commission must weigh economic development and local access to homes, including moderate‑income housing shown in local or transit plans, when ranking projects. Transit capacity projects inside housing and transit reinvestment zones get priority, and road capacity projects there may also get priority. If a city or county receives a prioritization notice, projects in that area may get priority until the state says it no longer qualifies.

Some local fees and rules are repealed

On July 1, 2026, the state repeals the inspection‑fee authority for qualified water conservancy districts. It also removes some county governance procedures on set dates: January 1, 2028, and July 1, 2029. These changes end those fee and process powers on the listed dates.

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Sponsors & Cosponsors

Sponsor

  • Stephanie Gricius

    Republican • House

Cosponsors

  • Calvin R. Musselman

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 169 • No: 9

House vote 3/6/2026

House/ concurs with Senate amendment

Yes: 64 • No: 0

Senate vote 3/6/2026

Senate/ uncircled

Yes: 0 • No: 0

Senate vote 3/6/2026

Senate/ passed 2nd & 3rd readings/ suspension

Yes: 20 • No: 8

Senate vote 3/5/2026

Senate/ circled

Yes: 0 • No: 0

House vote 2/27/2026

Senate Comm - Substitute Recommendation

Yes: 6 • No: 0

House vote 2/27/2026

Senate Comm - Favorable Recommendation

Yes: 6 • No: 0

House vote 2/18/2026

House/ passed 3rd reading

Yes: 65 • No: 0

House vote 2/6/2026

House Comm - Favorable Recommendation

Yes: 8 • No: 1

Actions Timeline

  1. Governor Signed

    3/23/2026
  2. House/ to Governor

    3/16/2026House
  3. House/ received enrolled bill from Printing

    3/16/2026House
  4. House/ enrolled bill to Printing

    3/12/2026House
  5. Enrolled Bill Returned to House or Senate

    3/12/2026
  6. Draft of Enrolled Bill Prepared

    3/10/2026
  7. Bill Received from House for Enrolling

    3/10/2026
  8. House/ signed by Speaker/ sent for enrolling

    3/7/2026House
  9. House/ received from Senate

    3/7/2026House
  10. Senate/ to House

    3/6/2026Senate
  11. Senate/ signed by President/ returned to House

    3/6/2026Senate
  12. Senate/ received from House

    3/6/2026Senate
  13. House/ to Senate

    3/6/2026House
  14. House/ concurs with Senate amendment

    3/6/2026House
  15. House/ placed on Concurrence Calendar

    3/6/2026House
  16. House/ received from Senate

    3/6/2026House
  17. Senate/ to House with amendments

    3/6/2026Senate
  18. Senate/ passed 2nd & 3rd readings/ suspension

    3/6/2026Senate
  19. Senate/ uncircled

    3/6/2026Senate
  20. Senate/ circled

    3/5/2026Senate
  21. Senate/ 2nd & 3rd readings/ suspension

    3/5/2026Senate
  22. Senate/ Rules to 2nd Reading Calendar

    3/5/2026Senate
  23. Senate/ 2nd Reading Calendar to Rules

    3/4/2026Senate
  24. Senate/ placed on 2nd Reading Calendar

    3/2/2026Senate
  25. Senate/ comm rpt/ substituted

    3/2/2026Senate

Bill Text

  • Enrolled

    3/12/2026

  • Substitute #1

    2/26/2026

  • Introduced

    1/30/2026

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