HB 308: Homeless Services Amendments - Utah

Substitute #2 → Enrolled · 8 edits · Mar 24, 2026

MODERATE

This bill updates the Utah Homeless to Housing Reform Act by expanding how funds can be used for shelter construction and operations, clarifying definitions for winter response shelters, and adjusting tax revenue distributions to support homeless mitigation efforts. The changes aim to increase flexibility in funding, ensure better reporting on outcomes, and provide specific protections for municipalities hosting homeless shelters.

Scope change

The bill expands the scope of the Homeless to Housing Reform Restricted Account to include grants for designing, building, or renovating homeless facilities and for ongoing shelter operations, while also modifying how sales tax revenue is distributed to offset costs for local governments hosting shelters.

FISCAL

Added authority for the board to award grants specifically for designing, building, creating, or renovating facilities that provide shelter or resources for the homeless.

Added authority to award grants for the ongoing operations of homeless shelters if the shelter commits to providing matching funds.

Modified the sales and use tax distribution formula to deduct a portion of revenue based on the number of homeless shelter beds available in a jurisdiction, directing those funds to a mitigation account.

REQUIREMENT

Added a requirement for service providers receiving grants to provide detailed annual reports on spending and progress toward measurable outcome-based benchmarks.

Modified the appointment structure to clarify that the governor appoints both an executive director and a state homelessness coordinator.

DEFINITION

Amended definitions to clarify eligibility for winter response shelters based on capacity (80, 25, or 50 beds) and operational duration requirements for different tiers of municipalities.

ADDED

Added a new section allowing temporary expansion of congregate shelter capacity up to 135% of the designated limit with municipal consent, effective until April 30, 2027.

TIMELINE

Updated the effective date for Section 59-12-205 (tax revenue distribution) from May 6, 2026, to January 1, 2027, while other sections remain effective May 6, 2026.

Introduced → Substitute #1 · 6 edits

MODERATE

This bill significantly expands Utah's homeless services framework by creating new advisory boards for shelter cities and counties, establishing a fund to compensate businesses and individuals for property loss near shelters, and allowing shelters to temporarily expand capacity by up to 35%. It also redefines eligibility for tax revenue distributions to better support municipalities hosting homeless shelters.

Scope change

The bill expands the scope of homeless services governance to include specific advisory boards for cities and counties, introduces a new compensation mechanism for property loss related to shelters, and broadens the definition of eligible municipalities for tax revenue sharing.

REQUIREMENT

Created the Shelter Cities Advisory Board and Shelter Counties Advisory Board to provide recommendations on service coordination and improvements.

Authorized service providers to temporarily expand congregate shelter bed capacity by up to 135% with municipal consent, effective through April 2027.

Amended tax revenue distribution rules to require participating local governments to contribute a percentage of their funds to a mitigation account for shelters located within their boundaries.

FISCAL

Established the Property Loss Related to Homelessness Compensation Enterprise Fund to provide no-interest loans or direct compensation to businesses and individuals suffering property loss due to homeless services facilities.

ELIGIBILITY

Added a 'third-tier eligible municipality' category to the tax revenue distribution formula, allowing smaller municipalities with shelters to receive funding.

DEFINITION

Updated definitions to include 'third-tier eligible municipality' and clarified criteria for 'eligible shelter' capacity requirements based on municipality tier.

Substitute #1 → Substitute #2 · 6 edits

MODERATE

This bill updates Utah's homeless services framework by clarifying the appointment authority for the state homeless services coordinator, adjusting the composition of the Commission on Housing Affordability, and introducing a new provision allowing shelters to temporarily expand bed capacity up to 135% with municipal consent. It also revises tax revenue distribution rules for local governments to better account for homeless shelter impacts and updates various definitions within the code.

Scope change

The bill expands the scope of shelter operations by permitting temporary capacity increases and modifies the applicability of tax revenue distributions to include specific adjustments for local governments hosting homeless shelters.

REQUIREMENT

Changed the appointment authority for the state homeless services coordinator from the executive director to the governor, altering the chain of command and oversight.

Adjusted the membership composition of the Commission on Housing Affordability, specifically updating the reference for the state homelessness coordinator's appointment source.

SCOPE

Created a new section allowing service providers to temporarily expand congregate shelter bed capacity by up to 135% if approved by the local municipality, subject to safety codes and a sunset date of April 30, 2027.

FISCAL

Revised the sales and use tax revenue distribution formula to require participating local governments to contribute a portion of their share to a mitigation fund for businesses and residents affected by homeless shelters.

DEFINITION

Updated and clarified definitions for various entities including 'eligible municipality,' 'service provider,' and 'coordinator' to align with new operational structures.

TIMELINE

Set specific effective dates for various sections, with the primary changes taking effect on May 6, 2026, and certain repeals occurring in 2027 and 2028.

Homeless Services Amendments

What changed between versions

How they voted

Actions timeline

Sponsors