HB 68: Housing and Community Development Amendments - Utah

Introduced → Substitute #1 · 6 edits

MODERATE

The Substitute #1 significantly expands the scope of the new division by renaming it from 'Division of Housing' to 'Division of Housing and Community Development,' absorbing not just housing functions but also community development, tribal revitalization funds, the Community Impact Fund, and the Homeless Housing and Services Grant Program. It also adds a $345,000 budget transfer for fiscal year 2027 and amends additional code sections to update cross-references throughout the Utah Code.

Scope change

The bill's scope expanded substantially. The Introduced version created a 'Division of Housing' focused on housing functions. The Substitute #1 creates a broader 'Division of Housing and Community Development' that absorbs community development, tribal revitalization funds, the Community Impact Fund, and homeless services programs, making it a much larger consolidated agency within the Governor's Office of Economic Opportunity.

SCOPE

The new division is renamed from 'Division of Housing' to 'Division of Housing and Community Development,' reflecting a broader mandate that includes community development functions previously housed in the Department of Workforce Services.

The bill now renumbers and moves additional programs into the new division: the Community Impact Fund (35A-8-301 through 35A-8-310 to 63N-22-501 through 63N-22-509), the Uintah Basin Revitalization Fund (35A-8-1601 through 35A-8-1607 to 63N-22-601 through 63N-22-606), the Navajo Revitalization Fund (35A-8-1702 through 35A-8-1707 to 63N-22-701 through 63N-22-706), and the Homeless Housing and Services Grant Program (35A-16-601 and 35A-16-602 to 63N-22-801 and 63N-22-802).

The remaining division within the Department of Workforce Services is renamed from 'Housing and Community Development Division' to 'Division of Community Services,' reflecting that housing functions have been moved out.

FISCAL

A $345,000 budget transfer from Governor's Office Operations to the new Division of Housing and Community Development is added for fiscal year 2027. The Introduced version had no money appropriated.

TECHNICAL

Additional code sections are amended to update cross-references: Section 9-9-104.5 (Tribal meetings), Section 11-13-103 (Interlocal Cooperation Act definitions), Section 17B-1-612 (Special district fund balances), Section 53C-3-203 (Land Exchange Distribution Account), Section 59-5-116 (Ute Indian land taxes), and Section 59-5-119 (Navajo Nation land taxes).

Additional sections are repealed: 35A-8-306, 35A-8-1605, 35A-8-1608, and 35A-8-1708, which are consolidated into the renumbered provisions in the new chapter.

Substitute #6 → Enrolled · 5 edits · Mar 25, 2026

MODERATE

This bill updates Utah's moderate income housing laws to apply to counties, not just municipalities, and clarifies definitions for electric interlocal entities. It establishes new reporting requirements for counties to receive state funding and introduces penalties, including daily fees and loss of funding eligibility, for non-compliance. The bill also refines tax exemption rules for nonprofit entities and adjusts the distribution of county sales taxes used for public transit.

Scope change

The bill expands the scope of moderate income housing requirements from municipalities to include specified counties, ensuring rural and suburban areas are also held accountable for housing plans.

SCOPE

Added moderate income housing planning and reporting requirements for specified counties, mirroring existing rules for municipalities.

ENFORCEMENT

Established daily fees and loss of state funding eligibility for counties that fail to submit or comply with moderate income housing reports.

DEFINITION

Updated definitions for electric interlocal entities and project capacity to clarify how they relate to tax exemptions and community impact funds.

Expanded the definition of 'nonprofit entity' to include certain housing organizations and entities providing permanent supportive housing.

FISCAL

Adjusted the distribution percentages for county sales taxes used to fund highways or public transit based on transit district annexation status.

Substitute #5 → Substitute #6 · 7 edits

MODERATE

This bill reorganizes Utah's housing administration by creating a new Division of Housing and Community Development within the Governor's Office of Economic Opportunity, moving it from the Department of Workforce Services. It establishes a new state housing coordinator position and shifts the Homeless Housing and Services Grant Program to this new division. The bill also updates reporting requirements for moderate income housing plans for cities and counties, adding penalties for non-compliance, and modifies tax definitions to better support permanent supportive housing.

Scope change

The bill expands the scope of the Governor's Office of Economic Opportunity by adding a dedicated housing division and broadens the applicability of moderate income housing reporting requirements to include counties, not just municipalities.

SCOPE

Created a new Division of Housing and Community Development within the Governor's Office of Economic Opportunity.

Established a new state housing coordinator position appointed by the governor with Senate consent.

Transferred the Homeless Housing and Services Grant Program from the Office of Homeless Services to the new Division of Housing and Community Development.

REQUIREMENT

Updated moderate income housing reporting requirements for cities and counties to include specific strategies and penalties for non-compliance.

DEFINITION

Redefined 'nonprofit entity' for tax exemption purposes to include entities providing permanent supportive housing.

ENFORCEMENT

Added daily fees and funding ineligibility penalties for cities and counties that fail to submit required housing reports.

TIMELINE

Set a July 1, 2026 effective date for most provisions, with some specific sections effective July 1, 2027.

Substitute #4 → Substitute #5 · 8 edits

MODERATE

This bill reorganizes Utah's housing administration by creating a new Division of Housing and Community Development within the Governor's Office of Economic Opportunity, transferring authority from the Department of Workforce Services. It establishes a new State Housing Coordinator position to oversee housing strategy and moves homeless services grants to this new division. The bill also introduces stricter reporting requirements for municipalities and counties to receive state housing funds, with penalties including fee assessments for non-compliance.

Scope change

The bill expands the scope of the Governor's Office of Economic Opportunity to include housing functions previously held by the Department of Workforce Services, while simultaneously renaming the remaining workforce housing division to 'Division of Community Services'.

SCOPE

Created a new Division of Housing and Community Development within the Governor's Office of Economic Opportunity.

Established a new State Housing Coordinator position appointed by the Governor to coordinate housing efforts.

Renamed the existing Housing and Community Development Division in the Department of Workforce Services to the Division of Community Services.

Moved the Homeless Housing and Services Grant Program from the Office of Homeless Services to the new Division of Housing and Community Development.

REQUIREMENT

Mandated that municipalities and counties submit annual moderate income housing reports to qualify for state funding priority.

Required recipients of certain state funds to report data to the new Division of Housing and Community Development.

ENFORCEMENT

Imposed daily fees and funding ineligibility penalties for municipalities and counties that fail to submit required housing reports.

DEFINITION

Updated definitions of 'Division' across multiple code sections to reflect the new organizational structure.

Substitute #3 → Substitute #4 · 7 edits

MODERATE

This bill reorganizes Utah's housing administration by moving the Division of Housing and Community Development from the Department of Workforce Services to the Governor's Office of Economic Opportunity. It creates a new 'state housing coordinator' position to oversee homeless services and requires municipalities and counties to submit detailed annual reports on their moderate income housing strategies. Non-compliance with these reporting requirements will result in funding ineligibility and daily fees.

Scope change

The bill expands the scope of the Division of Housing and Community Development by transferring it to a new office and adding a specific coordinator role for homeless services. It also extends reporting requirements to counties (previously only municipalities) and adds stricter enforcement penalties for non-compliance.

SCOPE

Created a new 'state housing coordinator' position within the Division of Housing and Community Development to coordinate homeless services and report to the governor and legislature.

Repealed the Commission on Housing Affordability.

REQUIREMENT

Added mandatory annual reporting requirements for counties regarding moderate income housing strategies, expanding the previous requirement that applied only to municipalities.

ENFORCEMENT

Established new penalties for non-compliance, including ineligibility for state transportation and housing funds and daily fees payable to the Olene Walker Housing Loan Fund.

TIMELINE

Set a deadline of December 31, 2025, for municipalities and counties to develop station area plans for public transit stations.

DEFINITION

Renamed the Housing and Community Development Division within the Department of Workforce Services to the Division of Community Services.

FISCAL

Transferred $345,000 in funding from the Governor's Office Operations to the new Division of Housing and Community Development for fiscal year 2027.

Substitute #2 → Substitute #3 · 9 edits

MAJOR

This bill reorganizes Utah's housing administration by moving the Division of Housing and Community Development from the Department of Workforce Services to the Governor's Office of Economic Opportunity. It creates a new Deputy Director position, renames the remaining Workforce Services housing division to 'Division of Community Services,' and shifts the Homeless Housing and Services Grant Program to the new division. The bill also establishes strict reporting requirements for municipalities and counties to receive state housing funds, imposing daily fees for non-compliance.

Scope change

The bill significantly changes the administrative scope by transferring housing authority from the Department of Workforce Services to the Governor's Office of Economic Opportunity and expands the scope of oversight by adding mandatory reporting for all specified municipalities and counties.

SCOPE

Transfers the Division of Housing and Community Development from the Department of Workforce Services to the Governor's Office of Economic Opportunity.

Creates a new Deputy Director position within the Division of Housing and Community Development, appointed by the Governor with Senate consent.

Renames the remaining Housing and Community Development Division within the Department of Workforce Services to the 'Division of Community Services'.

Moves the Homeless Housing and Services Grant Program from the Office of Homeless Services to the Division of Housing and Community Development.

REQUIREMENT

Requires specified municipalities and counties to submit annual moderate income housing reports detailing their strategies and progress.

ENFORCEMENT

Imposes a $250 per day fee on non-compliant municipalities and a $500 per day fee on non-compliant counties for failing to submit reports or cure deficiencies.

Makes specified municipalities and counties ineligible for state transportation and housing funds if they fail to comply with reporting requirements.

DEFINITION

Updates definitions of the 'Division' in multiple code sections to reflect its new location within the Governor's Office of Economic Opportunity.

TIMELINE

Sets an effective date of July 1, 2026, for all changes, with specific deadlines for station area plans by December 31, 2025.

Substitute #1 → Substitute #2 · 5 edits

MODERATE

This bill reorganizes Utah's housing administration by creating a new Division of Housing and Community Development within the Governor's Office of Economic Opportunity, while renaming the existing division in the Department of Workforce Services to the Division of Community Services. The changes consolidate housing responsibilities, establish new reporting requirements for municipalities and counties to access state funds, and update definitions related to affordable housing and tribal coordination.

Scope change

The bill shifts primary housing authority from the Department of Workforce Services to the Governor's Office of Economic Opportunity and expands the scope of mandatory reporting for local governments to ensure compliance with moderate income housing strategies.

SCOPE

Created a new Division of Housing and Community Development within the Governor's Office of Economic Opportunity and renamed the former Housing and Community Development Division to the Division of Community Services within the Department of Workforce Services.

REQUIREMENT

Mandated that specified municipalities and counties submit annual moderate income housing reports to the new division to maintain eligibility for state transportation and housing funds.

ENFORCEMENT

Established penalties for non-compliant local governments, including ineligibility for state funds and daily fees payable to the Olene Walker Housing Loan Fund.

DEFINITION

Updated statutory definitions to reflect the new organizational structure, including changes to how 'Division' and 'Agency' are defined across multiple code sections.

TIMELINE

Set an effective date of July 1, 2026, for the new division structure and reporting requirements.

Housing and Community Development Amendments

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