House approves $100 million revolving loan to help fund infrastructure for planned housing

The Utah House passed Third Substitute House Bill 492 on Tuesday, advancing a proposal sponsors described as a tool to unlock housing that is already entitled but not being built because of missing capacity infrastructure.

Representative Roberts, sponsor of the bill, said the state will set up a $100 million revolving loan facility that cities and counties can apply to for infrastructure projects—such as water transmission lines, sewer lift stations and regional roads—that are necessary to support planned housing. "It sets up a $100,000,000 revolving loan facility that gets paid back," Roberts said on the floor, adding that repayments would come primarily through developer‑paid impact fees.

Several members asked detailed fiscal and procedural questions about the source of funds, repayment mechanisms and prioritization. Representative Albrecht and others asked whether the measure would draw from the Transportation Infrastructure Investment Fund’s repurposed float; the sponsor explained the bill repurposes a $100 million slice from an existing $300 million allocation that had not been used effectively.

Supporters argued the facility targets the infrastructure bottlenecks that keep entitled units off the market; backers also emphasized collaboration with cities and developers. Critics sought assurances about transportation fund integrity and affordable‑housing definitions. The bill passed 61–8 and will be transmitted to the Senate for further consideration.

Next steps include rulemaking by the administering board and coordination with interim committees to set program priorities and definitions for affordable or moderate‑income allocations.