UtahH.B. 682026 General SessionHouseWALLET

Housing and Community Development Amendments

Sponsored By: Calvin Roberts (Republican)

Signed by Governor

Economic DevelopmentHousingDepartment of Workforce ServicesWorkforce ServicesHomelessnessIndependent EntitiesCommunity DevelopmentGovernor's Office of Economic OpportunityGrant Programs and IncentivesUtah Housing CorporationAffordable Housing

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Bill Overview

Analyzed Economic Effects

33 provisions identified: 15 benefits, 2 costs, 16 mixed.

New throughput infrastructure grants and loans

The Throughput Infrastructure Fund can finance large transport and export projects through grants and loans. The first project must be a bulk‑commodities ocean terminal, with at least 20% of its funded costs as grants. Up to 2% of the fund can cover early acquisition costs. Other projects can use interest earnings if they meet permit and repayment rules, with reimbursements due between three and seven years after approval. Loans are secured by net project revenues; the board can set repayment terms and may restructure for hardship. Administration is capped at 2% of yearly receipts.

More help applying for housing

Beginning July 1, 2026, the Department of Workforce Services helps people qualify for affordable housing. The agency shares materials from state housing offices and the Utah Housing Corporation. It gives referrals to local housing authorities, city and county programs, nonprofits, and volunteer real estate programs. Agencies work together so renters and first-time buyers get clear, coordinated help.

New funds for very low and rural housing

Beginning July 1, 2026, the state runs two housing funds. The Economic Revitalization Fund supports projects that reserve units for households at or below 30% of area median income with a 30‑year deed restriction. The Rural Housing Fund offers loans in eligible rural areas and small cities, with a 50‑year deed restriction on moderate‑income units. Money can pay for land, acquisition, rehab, construction, and pre‑development work. A board prefers projects with strong matches, local help, and high need. Recipients must report each year. If funded units are sold or 30 years pass, the sponsor must repay the amount distributed plus a contract amount; the claim is a lien and money goes back to the same fund. Up to 3% of each fund may cover admin costs.

Stronger statewide homeless services coordination

Beginning July 1, 2026, the statewide homeless services coordinator must coordinate services, prepare a yearly budget and statewide plan, and get board approval. Funding is overseen for key homeless accounts, with priority for programs that show results. Most funded providers must sign written HMIS data‑sharing agreements (domestic violence providers are excepted). If a board‑approved funding formula applies, the coordinator uses it unless federal rules say otherwise. An annual report is due by October 1 with the plan, budget, funding details, and data.

Supportive housing rent capped at 30%

Beginning July 1, 2026, certified permanent supportive housing owned by qualifying nonprofits can get a property tax exemption. The homes must offer supportive services, have a 15‑year rent subsidy commitment when placed in service, and have federal low‑income housing tax credits. Units must lease to people who were homeless just before move‑in. Your rent in these units is capped at no more than 30% of your household income.

Stronger rules for pass‑through housing funds

Beginning July 1, 2026, state pass‑through housing money must follow a written agreement. At least a 70% private to 30% state match is required. All funds must go to rentals affordable to households at or below 80% AMI, with at least 50% serving households at or below 50% AMI. At least 30% of funds must be spent in rural counties. Properties must carry at least a 40‑year deed restriction, and returns must be reinvested. Housing organizations must file annual audits and detailed reports. Agreements issued before May 1, 2024 must be updated to meet these rules.

How mineral and land money is split

Beginning July 1, 2026, 70% of federal mineral lease bonus payments go to the Permanent Community Impact Fund and 30% to the Mineral Bonus Account. Royalties from Grand Staircase‑Escalante extraction are split each year: 40% to special service districts, 40% to impacted school districts, 2.25% to the Utah Geological Survey, and 17.75% to the State School Fund. Mineral Lease Account deposits are allocated by fixed shares, including 32.5% to the Impact Fund, 40% to counties and qualifying districts, and 5% to Workforce Services; it also pays $0.52 per eligible acre (CPI‑adjusted). The Land Exchange Distribution Account first pays $1,000,000 to the Constitutional Defense account, then splits the rest: 55% to counties by mineral revenue, 25% to counties by acreage, and set shares to education, geology, water research, defense, and the Impact Fund.

Community Impact Fund lending rules updated

The impact board runs the fund so part keeps revolving and sets who is eligible, with formal applications and loan repayment rules. The board must weigh mineral production, feasibility, taxes, other revenues, federal help, growth, and facility needs. It cannot fund school projects districts can reasonably fund themselves. The board can restructure loans for hardship and is capped at 2% for administration. The division must report awards each year.

Navajo fund priorities and limits

Starting July 1, 2026, the revitalization board gives priority to infrastructure, housing, and approved educational endowments on the Utah portion of the Navajo Reservation. Awards cannot pay private start‑up or operating costs, general operating budgets, or projects outside the reservation (except certain endowments). Loans must have repayment terms and be secured by bond or similar obligations; applications with matching funds get priority. The division pays awards as approved and reports recipients yearly. Ongoing since July 1, 1997, taxes from wells tied to Navajo trust interests deposit into the fund: 33% for older wells and 80% for newer wells, subject to historical annual caps.

Transit district pays for cleaner trains

For agreements made before July 1, 2022, a large public transit district must pay the department $5,000,000 each year for 15 years. The money is used to help buy zero‑ or low‑emission rail engines and trainsets for regional rail.

Transit fund and 30% local match

Beginning July 1, 2026, the state creates the Transit Transportation Investment Fund. It gets money from state deposits, legislative appropriations, tax increments from housing and transit zones, certain local option tax transfers, private donations, and grants. The Transportation Commission can fund new transit capital projects, fixed‑guideway projects, and oversight, and spend up to $500,000 each year on transit studies. The commission can only prioritize many projects if the transit district or local government pays at least 30% of the project cost. A State Infrastructure Bank loan can count toward the 30% if allowed, and some revenue transfers and department‑proposed projects are exempt.

Cities must plan housing or face fees

Beginning July 1, 2026, cities must include a realistic five‑year moderate‑income housing plan and timelines. Certain cities must pick more strategies, with extra transit‑focused choices if they have a fixed‑guideway station. Cities must file an initial report by August 1 of the first qualifying year, then file a progress report each August 1. Reports must list chosen strategies, actions, land‑use decisions, barriers, ADU counts and permits, entitled units without building permits, maps/links, market data, and recommendations. Compliant cities may get priority for state transportation programming if they plan the required number of strategies. If a report is noncompliant, the city has 90 days to cure or 10 days to appeal; otherwise it loses eligibility for certain funds and programming. Daily fees go to the Olene Walker Fund: $250/day for a 2024 report, and $500/day for consecutive‑year failures beginning with a 2025 report. A three‑member appeal board must decide within 90 days.

Counties must plan housing; daily fines

Beginning July 1, 2026, a “specified county” (first‑, second‑, or third‑class with over 5,000 people in unincorporated areas) must adopt a five‑year moderate‑income housing plan. The county must choose at least three listed strategies (or at least one from the higher‑impact list) and include five‑year timelines and benchmarks. The county must submit an initial report by August 1 of its first qualifying year and then report each August 1 with strategies (using the statute’s exact language), actions, maps, ADU information, and other required details. Daily fees go to the Olene Walker Fund if a report is missed or not cured: $250/day for a 2024 report and $500/day for consecutive‑year failures beginning with a 2025 report. The division will not mark the county compliant until all fees are paid.

Transit station areas need detailed plans

Cities with fixed‑guideway transit stations must adopt a station‑area plan and the land‑use rules to carry it out. The plan must promote more and cheaper housing, better access to jobs and services, and more travel choices, and include a map and five‑year action plan. A rail station area is within a 1/2‑mile radius; a bus‑only station area is within 1/4 mile. Deadlines: existing stations by December 31, 2025 (or four by then and at least two more each year if a city has more than four), and new stations before service starts. Qualifying land‑use petitions can speed deadlines and get first‑priority processing for needed zoning changes (up to two station areas per 12 months). A city may get one 12‑month extension if the MPO certifies infeasibility, or satisfy the rule with pre‑June 1, 2022 actions or an impracticability resolution. The MPO and transit district must certify plans, and cities must give five‑year status reports for up to 15 years.

Bond cap split and 90-day deadlines

Each January 1, the state splits its private activity bond cap: 42% to single‑family housing, 33% to student loans, 1% to exempt facilities, and 24% to small‑issue bonds. Unused cap can move between accounts during set windows, then to a pool and carryforward near year‑end. After approval, the board must mail a certificate within 10 working days, and it expires in 90 days if bonds are not issued. Issuers must send the board a copy of federal Form 8038 within 15 days after issuing bonds and must notify within 15 days if bonds will not be issued. Late or missing notices can lead to denial of future applications.

Help finding home-based Medicaid services

Starting July 1, 2026, Medicaid creates a full‑time housing coordinator. The coordinator helps Medicaid recipients get long‑term support services at home or in community settings. They identify settings, promote new options, work with cities, counties, and housing agencies, and train Medicaid case managers.

Clear rules for ADUs and affordable homes

Beginning July 1, 2026, an internal accessory dwelling unit is a rental inside the main home’s footprint and must be rented for 30 days or more. The law also defines a home for sale as “affordable” if it is priced at 80% or less of the county median for that housing type. These clear definitions guide zoning and program decisions.

Help for small manufacturers to issue bonds

The division can act as an issuer for small‑issue bonds for manufacturing projects. It can promote the program, help qualified small manufacturers apply, and work to lower application and qualification costs. The division may also arrange reduced‑rate professional services when volume allows.

Funding for Cottonwood Canyons transit and safety

Beginning July 1, 2026, the state creates the Cottonwood Canyons Transportation Investment Fund. It can receive state deposits, legislative appropriations, private donations, and grants, and interest stays in the fund. The Legislature may spend this money on transit or transportation projects in the Cottonwood Canyons area of Salt Lake County. The department may also use up to 2% of certain sales tax revenue to contract for public safety in the Canyons. Starting with the fiscal year that begins July 1, 2025, sales tax growth above the 2025 level must fund ingress and egress and construction for a public transit hub in Big Cottonwood Canyon.

Water funding council adds community services

Starting July 1, 2026, the Water Development Coordinating Council adds the director of the Division of Community Services or a designee. The council coordinates state water funding, promotes regional solutions, assesses needs, and sets priorities. It also oversees spending from the Water Infrastructure Fund as allowed by law.

Property tax break for Olympic sports

Starting July 1, 2026, training competitive athletes counts as an educational purpose for property tax exemption if done by a national sport governing body recognized by the U.S. Olympic and Paralympic Committee. The organization must be a 501(c)(3). Supporting activities tied to that training also qualify.

State housing office and plan created

Beginning July 1, 2026, the state creates a Division of Housing and Community Development inside the Governor’s Office of Economic Opportunity, led by a governor‑appointed state housing coordinator. The division runs a housing information hub, offers model plans, helps cities and counties with moderate‑income housing reports, and keeps a database of moderate‑income units. It must develop a statewide housing plan with data and metrics, analyze local reports, and report each year by October 1 on the plan and by November 1 to two legislative interim committees. For FY2027, the law adds $345,000 to support this division (offset by a reduction elsewhere in the Governor’s Office).

Stronger local housing funds and uses

Beginning July 1, 2026, local agencies can spend housing allocations on land, building, rehab, loans or grants, bond debt, and moving displaced mobile home residents. Money can also help child care expansion and housing near major transit, or be transferred to state and local housing funds and qualified nonprofits. Agencies must keep a separate housing fund, can issue bonds, and must spend or commit housing money within six years. If a required housing allocation is missed, the Olene Walker loan fund board can sue to compel payment and recover fees. The law also clarifies which nonprofits qualify as a housing fund.

New Throughput Infrastructure Fund

Beginning July 1, 2026, the law creates the Throughput Infrastructure Fund. It is funded by statutory transfers, donations, legislative appropriations, repayments of impact board loans, and investment earnings. The state treasurer invests the money and returns earnings to the fund.

Counties can add 0.2% sales tax

Starting July 1, 2026, a county may add a 0.2% sales and use tax to fund highways or public transit. When a county adopts it, you pay 0.2% more on each taxable purchase in that county. The law sets how the money is split, commonly 0.10% to a transit district, 0.05% to cities and towns, and 0.05% to the county. Special rules apply for counties that join a large transit district and for some early transfers to a first‑class county highway projects fund.

Some older housing programs end 2026

Effective July 1, 2026, the law repeals several housing statutes. Ended items include a low‑income ADU loan guarantee pilot, a subordinate shared appreciation loan program, certain powers and parts in housing chapters, the Commission on Housing Affordability, and related annual reporting. If you use these programs, their benefits and duties end on that date.

Job protections in housing agency move

On and after July 1, 2026, housing staff moving from the Department of Workforce Services to the Governor’s housing division keep career service status if they move from schedule B to the same schedule A position, unless they choose to change. Employees already in schedule A stay at‑will. Probationary schedule B employees who transfer before finishing probation become exempt. New hires after July 1, 2026 are at‑will exempt.

Limits on special district savings

Starting July 1, 2026, a special district’s general fund balance cannot exceed its latest budget plus one year of property tax. Districts may keep certain federal mineral lease revenues. They can use fund balance over 5% for budget needs and must follow capital reserve rules. Extra year‑end balances must be appropriated per law.

Regular state tribal meetings and rules

Beginning July 1, 2026, the state coordinates at least six joint meetings each year with named tribal governments. The law names which elected officials represent each tribe and allows alternates with notice. A majority forms a quorum, and a majority present can take action. Tribal‑only meetings are outside the Open Meetings Act if four conditions are met. Tribal representatives get per diem and travel under state rules but no pay or benefits for that service.

Rules for state revolving loan funds

Starting July 1, 2026, the law names which programs count as state revolving loan funds and requires rules on payment schedules, interest timing, and loan paperwork. The bonding law’s definition of revolving funds is aligned to a named list. A new custodial officer in the Division of Finance holds and accounts for many state bonds, notes, contracts, and loan documents. Some funds, including the Olene Walker Housing Loan Fund, are excluded from the officer’s custody. Agencies must deliver covered documents, and the officer must keep records and give updated reports.

Updates to state boards and procedures

Beginning July 1, 2026, the Resource Development Coordinating Committee adds a Division of Community Services representative and may seat temporary voting members for specific issues. A review board must follow the Utah Administrative Procedures Act for hearings and decisions. The 2021 law (Chapter 339) applies to claims without a final, unappealable court decision; it clarifies the law without changing vested rights.

Housing plan compliance tied to transport money

From July 1, 2026, the state posts and reviews county housing reports within 90 days. A report that shows three or more strategies, or one special strategy, qualifies; a special strategy keeps a county compliant for that year and the next two years. If a county plans five or more strategies, its unincorporated‑area projects may get priority for transportation funding. If a county is noncompliant, the DOT director may not program Transportation Investment Fund (including TTIF) money in its unincorporated areas. Counties can appeal within 10 days; a three‑member board issues a final decision within 90 days.

New rules for Utah Housing Corporation

From July 1, 2026, the Utah Housing Corporation adds the state housing coordinator as a trustee and has six public trustees appointed by the governor with Senate consent. Trustees file conflict‑of‑interest forms each year; missing or not fixing one after notice is a class B misdemeanor and a $100 civil fine. Trustees appoint a president, who is not a trustee, to run daily operations, set up bank accounts, hire experts, and coordinate with the state housing division.

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Sponsors & Cosponsors

Sponsor

  • Calvin Roberts

    Republican • House

Cosponsors

  • Lincoln Fillmore

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 162 • No: 29

Senate vote 3/5/2026

Senate/ circled

Yes: 0 • No: 0

Senate vote 3/5/2026

Senate/ uncircled

Yes: 0 • No: 0

House vote 3/5/2026

House/ concurs with Senate amendment

Yes: 54 • No: 10

Senate vote 3/5/2026

Senate/ passed 2nd & 3rd readings/ suspension

Yes: 25 • No: 3

Senate vote 3/5/2026

Senate/ substituted

Yes: 0 • No: 0

Senate vote 2/25/2026

Senate/ passed 2nd reading

Yes: 19 • No: 2

Senate vote 2/25/2026

Senate/ substituted

Yes: 0 • No: 0

House vote 2/23/2026

Senate Comm - Favorable Recommendation

Yes: 3 • No: 0

House vote 2/13/2026

House/ substituted

Yes: 0 • No: 0

House vote 2/13/2026

House/ passed 3rd reading

Yes: 55 • No: 13

House vote 2/4/2026

House Comm - Favorable Recommendation

Yes: 6 • No: 1

Actions Timeline

  1. Governor Signed

    3/25/2026
  2. House/ to Governor

    3/12/2026House
  3. House/ received enrolled bill from Printing

    3/12/2026House
  4. House/ enrolled bill to Printing

    3/11/2026House
  5. Enrolled Bill Returned to House or Senate

    3/11/2026
  6. Draft of Enrolled Bill Prepared

    3/6/2026
  7. Bill Received from House for Enrolling

    3/6/2026
  8. House/ signed by Speaker/ sent for enrolling

    3/5/2026House
  9. House/ received from Senate

    3/5/2026House
  10. Senate/ to House

    3/5/2026Senate
  11. Senate/ signed by President/ returned to House

    3/5/2026Senate
  12. Senate/ received from House

    3/5/2026Senate
  13. House/ to Senate

    3/5/2026House
  14. House/ concurs with Senate amendment

    3/5/2026House
  15. House/ placed on Concurrence Calendar

    3/5/2026House
  16. House/ received from Senate

    3/5/2026House
  17. Senate/ to House with amendments

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

    3/5/2026Senate
  19. Senate/ uncircled

    3/5/2026Senate
  20. Senate/ circled

    3/5/2026Senate
  21. Senate/ substituted

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

    3/4/2026Senate
  23. Senate/ returned to Rules

    3/4/2026Senate
  24. Senate/ placed on 3rd Reading Calendar table

    2/25/2026Senate
  25. Senate/ 3rd reading

    2/25/2026Senate

Bill Text

  • Enrolled

    3/11/2026

  • Substitute #6

    3/3/2026

  • Substitute #5

    2/26/2026

  • Substitute #4

    2/25/2026

  • Substitute #3

    2/11/2026

  • Substitute #2

    2/6/2026

  • Substitute #1

    1/30/2026

  • Introduced

    12/22/2025

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