HB 492: Transportation, Infrastructure, and Housing Amendments - Utah

Substitute #6 → Enrolled · 8 edits · Mar 25, 2026

MODERATE

This bill updates Utah's transportation and housing laws to create a new State Housing Infrastructure Partnership Fund and Board, which will make loans to local governments to build infrastructure that supports housing construction. It increases the bond limit for affordable housing projects from $70 million to $150 million and clarifies rules for selling surplus state real property to housing entities. The bill also adjusts funding allocations for convention centers and public transit, and modifies ethical rules to exempt certain affordable housing activities from conflict-of-interest restrictions.

Scope change

The bill expands the scope of state involvement in housing by creating a new loan program and board, while also broadening the definition of eligible projects to include various infrastructure types like water, sewer, and transportation facilities.

FISCAL

Created a new State Housing Infrastructure Partnership Fund and Board to provide loans to local governments for infrastructure projects that facilitate housing development.

Increased the maximum amount of bonds the Department of Transportation can issue for affordable housing infrastructure grants from $70,000,000 to $150,000,000.

Adjusted the transfer of revenue from the County of the First Class Highway Projects Fund to the Convention Center Reserves Restricted Account, changing the timing and specific amounts involved.

ELIGIBILITY

Modified ethical rules to exempt conduct related to affordable housing construction from certain conflict-of-interest requirements if benefits are provided to all qualified residents.

REQUIREMENT

Changed the definition of 'affordable housing unit' for sales to allow deed restrictions of up to five years instead of a minimum of five years.

Updated the composition of the Affordable Housing Infrastructure Grant Board to include representatives from the Governor's Office of Economic Opportunity.

TIMELINE

Adjusted the effective date for Section 72-2-124 from May 6, 2026, to July 1, 2026.

TECHNICAL

Removed redundant or superseded text regarding the effective date of Section 72-2-124 and corrected formatting inconsistencies in the bill text.

Introduced → Substitute #1 · 7 edits

MODERATE

This bill creates a new State Housing Infrastructure Partnership Board and Fund to provide low-interest loans to local governments for infrastructure projects that enable new housing construction. It increases the bond limit for affordable housing projects from $70 million to $140 million and adds a requirement that loan recipients prioritize starter homes. The bill also repeals the old Affordable Housing Infrastructure Grant Board, transferring its duties to the new board, and appropriates $100 million for the new fund in FY 2027.

Scope change

The bill expands the scope of the housing infrastructure program by creating a new revolving loan fund and board, while simultaneously consolidating authority by repealing the previous grant board.

FISCAL

Created the State Housing Infrastructure Partnership Fund and appropriated $100 million to it for fiscal year 2027.

Increased the maximum amount of bonds authorized for affordable housing-related transportation projects from $70,000,000 to $140,000,000.

SCOPE

Established the State Housing Infrastructure Partnership Board to manage the new fund and oversee infrastructure loans and grants.

Repealed the Affordable Housing Infrastructure Grant Board and transferred its duties to the new State Housing Infrastructure Partnership Board.

REQUIREMENT

Added a requirement that the board give preference to housing developments that include detached single-family owner-occupied starter homes.

Modified loan terms to allow interest rates within 1.5% of the federal funds rate target and a maximum term of 20 years.

ELIGIBILITY

Changed loan eligibility criteria to require applicants to demonstrate they have approved a housing project and will provide matching funds.

Substitute #5 → Substitute #6 · 8 edits

MODERATE

This bill creates a new State Housing Infrastructure Partnership Fund and Board to provide low-interest loans to local governments for infrastructure projects that enable housing construction. It significantly increases the bond limit for affordable housing grants from $70 million to $150 million and establishes a new restricted account to fund convention center revitalization. The bill also modifies rules for selling surplus state real property to housing entities and adjusts funding allocations for various transportation projects.

Scope change

The bill expands the scope of state financial support to include direct infrastructure loans for housing development, previously limited to grants, and adds new funding mechanisms specifically for convention centers and affordable housing.

FISCAL

Created a new $100 million revolving loan fund and a new State Housing Infrastructure Partnership Board to finance system improvements that facilitate housing construction.

Increased the maximum bond authorization for affordable housing infrastructure grants from $70 million to $150 million.

Established a new Convention Center Reserves Restricted Account funded by $50 million in transfers to support convention center revitalization.

Reduced the amount of revenue the Department of Transportation may allocate from the Transportation Investment Fund to pay for a specific roadway project.

ELIGIBILITY

Modified the Affordable Housing Infrastructure Grant Board membership to include representatives from the Governor's Office of Economic Opportunity and added criteria to prioritize detached single-family owner-occupied starter homes.

REQUIREMENT

Allowed the grant board to waive certain preliminary cost estimate requirements and determine if owner-occupied dwellings qualify as affordable housing units.

Amended rules for the sale of surplus state real property to allow deferred payment when selling to qualifying housing entities at pre-entitlement appraised values.

ENFORCEMENT

Added an exception to ethics laws for public officers engaging in conduct related to affordable housing if benefits are provided to all qualified residents.

Substitute #4 → Substitute #5 · 6 edits

MODERATE

This bill creates a new State Housing Infrastructure Partnership Fund and Board to provide loans to local governments for infrastructure that supports housing construction. It increases the bonding authority for affordable housing grants from $70 million to $150 million and establishes a new restricted account for convention center revitalization. The bill also modifies sales tax distribution rules to divert funds to convention centers and updates ethics exemptions for affordable housing officials.

Scope change

The bill expands the scope of state housing and transportation funding by creating a new loan program and increasing bond limits specifically for affordable housing infrastructure projects.

FISCAL

Created a new State Housing Infrastructure Partnership Fund and Board to make loans to local governments for infrastructure improvements that facilitate housing construction.

Increased the maximum bond amount the Department of Transportation can authorize for affordable housing infrastructure grants from $70 million to $150 million.

Established a new Convention Center Reserves Restricted Account and required a $50 million transfer from the Transportation Investment Fund to support convention center revitalization.

ELIGIBILITY

Modified sales tax distribution rules to allow counties to divert revenue to convention center revitalization projects and updated the definition of affordable housing units to include owner-occupied dwellings.

REQUIREMENT

Added an exemption from certain public ethics rules for officials involved in providing affordable housing benefits to all qualified residents.

Updated the Affordable Housing Infrastructure Grant Board membership to include representatives from the Governor's Office of Economic Opportunity.

Substitute #3 → Substitute #4 · 7 edits

MODERATE

The bill expands funding for affordable housing by doubling the transportation bond limit from $70M to $140M and creating a new $100M loan fund for infrastructure projects. It establishes a new State Housing Infrastructure Partnership Board to manage these loans, while simultaneously rebranding and modifying the existing Affordable Housing Infrastructure Grant Board. The changes also introduce new rules for convention center funding, real property sales, and ethics exemptions for housing officials.

Scope change

The bill's scope expanded from primarily modifying existing transportation and housing grant structures to creating entirely new funding mechanisms (a new loan fund and board) and adding provisions for convention centers, real estate transactions, and ethics rules.

FISCAL

Increased the maximum transportation bonds for affordable housing from $70,000,000 to $140,000,000.

Created a new $100,000,000 revolving loan fund to finance infrastructure improvements that facilitate housing construction.

REQUIREMENT

Established a new State Housing Infrastructure Partnership Board with five voting members to administer the new loan fund.

Added ethics exemptions for public officers conducting affordable housing activities that benefit all qualified residents.

Modified grant eligibility criteria to allow boards to determine if owner-occupied dwellings qualify as affordable housing and waive certain preliminary cost estimates.

DEFINITION

Renamed the 'Affordable Housing Infrastructure Grant Board' to the 'State Housing Infrastructure Partnership Board' and updated its composition and duties.

SCOPE

Introduced new provisions for diverting convention center revenue, selling surplus state real property, and establishing a new Convention Center Reserves Restricted Account.

Substitute #2 → Substitute #3 · 6 edits

MODERATE

This bill amends existing transportation and housing laws to create a new State Housing Infrastructure Partnership Board and Fund, which will provide loans to local governments for infrastructure projects that support affordable housing construction. It doubles the maximum bond amount for affordable housing infrastructure from $70 million to $140 million and transfers the duties of the old Affordable Housing Infrastructure Grant Board to the new partnership board. The new board is required to prioritize projects that include starter homes for single-family owner-occupants.

Scope change

The bill expands the scope of funding by increasing the authorized bond limit and creates a new revolving loan fund to finance infrastructure improvements, shifting the administration of affordable housing grants from one board to a new, broader partnership board.

FISCAL

Increased the maximum amount of bonds that can be issued for affordable housing infrastructure from $70,000,000 to $140,000,000.

SCOPE

Created a new State Housing Infrastructure Partnership Fund and a corresponding Board to manage loans for system improvements that facilitate housing construction.

ELIGIBILITY

Established new criteria for infrastructure loans and grants, requiring applicants to demonstrate that the project will accelerate housing development and provide matching funds.

REQUIREMENT

Mandated that the board give preference to projects including detached single-family owner-occupied starter homes when awarding loans or grants.

ENFORCEMENT

Transferred the authority to award affordable housing infrastructure grants from the old Affordable Housing Infrastructure Grant Board to the new State Housing Infrastructure Partnership Board.

TECHNICAL

Added specific definitions for terms like 'system improvement,' 'infrastructure facility,' and 'qualifying political subdivision' to clarify the bill's application.

Substitute #1 → Substitute #2 · 7 edits

MODERATE

This bill amends Utah's transportation and housing laws to increase the maximum bond amount for affordable housing infrastructure from $70 million to $140 million. It establishes a new State Housing Infrastructure Partnership Board to manage loans for system improvements that facilitate housing construction, while transferring the duties of the former Affordable Housing Infrastructure Grant Board to this new entity. The changes aim to expand funding capacity and centralize administration under a single board with specific preferences for starter homes.

Scope change

The bill expands the scope of eligible infrastructure projects by doubling the bond limit and creates a new permanent board to oversee both loans and grants, replacing a previous grant-only board structure.

FISCAL

Increased the maximum bond amount for affordable housing infrastructure projects from $70,000,000 to $140,000,000.

Appropriated $100,000,000 in restricted fund transfers for fiscal year 2027 to support the new State Housing Infrastructure Partnership Fund.

SCOPE

Created the State Housing Infrastructure Partnership Board to administer loans for system improvements that facilitate housing construction.

Transferred duties for awarding affordable housing infrastructure grants from the former Affordable Housing Infrastructure Grant Board to the new State Housing Infrastructure Partnership Board.

REQUIREMENT

Required the new board to give preference to projects that include detached single-family owner-occupied starter homes.

DEFINITION

Added new definitions for terms such as 'Board', 'Fund', 'Housing development', and 'System improvement' to clarify the bill's application.

ENFORCEMENT

Established annual reporting requirements for the board and granted the board authority to create rules governing fund management and loan eligibility.

Transportation, Infrastructure, and Housing Amendments

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