NOTICE OF SUBSTANTIVE CHANGE
1. Agency Information
Transportation, Administration
Salt Lake City, UT 84114-8455
2. Contact Persons
Please address questions regarding information on this notice to the persons listed above.
3. General Information
A. Rule or section catchline:
R907-81. Affordable Housing Infrastructure Grant Rule
B. Purpose of the new rule or reason for the change:
The Legislature recently established the Affordable Housing Infrastructure Grant Board (board), which awards affordable housing infrastructure grants to public entities within a county of the first class.
In the 2026 General Session, through HB 492, the Legislature switched the rulemaking authority for the board from the Governor's Office of Economic Development to the Utah Department of Transportation (UDOT).
This proposed rule was written in response to that change.
C. Summary of the new rule or change:
State statute requires UDOT to make a rule, in consultation with the board, that establishes a process for prioritizing grant proposals, including:
a) instructions on making and submitting a grant proposal;
b) a methodology for selecting grants; and
c) a methodology for awarding grants.
Additionally, this rule may also include any other provisions needed to implement the grant program.
4. Legislative Action Information
A. Are any changes in this filing because of state legislative action?
Changes are because of legislative action.
B. If yes, any bill number and session:
HB 492 (2026 General Session)
5. Fiscal Information
Provide an estimate and written explanation of the aggregate anticipated cost or savings to:
There are no aggregate anticipated cost or savings to the state budget because this rule merely shifts authority of certain functions from one state agency, the Governor's Office of Economic Development, to another state agency, UDOT.
There are no aggregate anticipated cost or savings to local governments because this rule merely shifts authority of certain functions from one state agency, the Governor's Office of Economic Development, to another state agency, UDOT.
C. Small businesses ("small business" means a business employing 1-49 persons):
There are no aggregate anticipated cost or savings to small businesses because this rule merely shifts authority of certain functions from one state agency, the Governor's Office of Economic Development, to another state agency, UDOT.
D. Non-small businesses ("non-small business" means a business employing 50 or more persons):
There are no aggregate anticipated cost or savings to non-small businesses because this rule merely shifts authority of certain functions from one state agency, the Governor's Office of Economic Development, to another state agency, UDOT.
E. Persons other than small businesses, non-small businesses, state, or local government entities ("person" means any individual, partnership, corporation, association, governmental entity, or public or private organization of any character other than an agency):
There are no aggregate anticipated cost or savings to persons because this rule merely shifts authority of certain functions from one state agency, the Governor's Office of Economic Development, to another state agency, UDOT.
F. Compliance costs for affected persons:
It will not cost an affected person anything to comply with this rule.
6. Regulatory Impact Summary Table
Enter the cost or savings in the relevant cell. If there is no cost or savings, enter, "$0." If a cost or savings is inestimable, enter, "inestimable."
7. Regulatory Impact Analysis Approval
The Commissioner of the Department of Transportation, Carlos M Braceras, PE, has reviewed and approved this regulatory impact analysis.
8. Family Impact Information
A. The agency has considered this rule's impact on family health, stability, and formation:
9. Citation Information
Provide citations to the statutory authority for the rule. If there is also a federal requirement for the rule, provide a citation to that requirement:
11. Public Notice InformationThe public may submit written or oral comments to the agency identified in box 1.
A. Comments will be accepted until:
12. Effective Date Information
This rule change MAY become effective on:
(NOTE: This is the date the agency anticipates making the filing effective. It is NOT the effective date)
13. Agency Authorization Information
Agency head or
designee and title:
Carlos M Braceras, PE, Commissioner
R907. Transportation, Administration.
R907-81. Affordable Housing Infrastructure Grant Rule. R907-81-1. Authority and Purpose. This rule is required by Section 72-2-503 and provides procedures for administering the grant program described in Title 72, Chapter 2, Part 5, Affordable Housing Infrastructure Grants. (1) "Board" means the Affordable Housing Infrastructure Grant Board created in Section 72-2-503. (2) "Grant application" means an application for a grant issued to a public entity in a county of the first class, as described in Title 72, Chapter 2, Part 5, Affordable Housing Infrastructure Grants. (3) "Office" means the Governor's Office of Economic Development created in Section 63N-1a-301. (4) "Public entity" means a county of the first class as classified in Section 17-60-104 or a municipality, a public housing authority, a special service or improvement district, or a public transit district within a county of the first class as classified in Section 17-60-104. (5) "UDOT" means the Department of Transportation created in Section 72-1-201. R907-81-3. Content of Applications. (1) To apply for a grant described in Title 72, Chapter 2, Part 5, Affordable Housing Infrastructure Grants, a public entity shall submit a grant application to the board through the office. (2) The office may require the following information to be included in a grant application: (a) name of public entity making the grant application; (b) information for a responsible contact, including: (iii) telephone number; and (c) the amount of grant funding requested; (d) a description of the housing project, including the projected number of affordable housing units and detached single-family owner-occupied starter homes created by the housing project; (e) a description of the infrastructure for which the grant will be used and how the infrastructure will facilitate the housing project; (f) a timeline for completion of the infrastructure, affordable housing units, and detached single-family owner-occupied starter homes; (g) budget information, including a narrative and line items describing proposed grant funding usage; (h) a description of how the housing project is funded, including how much and what percentage of the funding is readily available for the housing project; (i) maps and visual displays of affected areas; (j) drafts and rendering of construction plans; (k) an assessment of anticipated risks and how they are to be mitigated; (l) cost estimates from third-party experts; (m) if a grant proposal includes highway infrastructure, a minimum matching contribution of the right-of-way needed for the highway improvements; (n) documentation supporting the valuation of the right-of-way contribution, if applicable; and (o) the public entity's W9 form or, if the public entity is currently a state vendor, the public entity's state vendor number; (p) a letter of support from the public entity's governing board or commission; and (q) any other information the board or office determines is necessary. 
