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League urges caution on changes to municipal mitigation fund and backs compensation for shelter cities
Summary
League staff recommended opposing proposals that would reduce or reallocate municipal contributions to the homelessness mitigation fund until the statewide system rebalances. Representatives from shelter cities urged protecting current mitigation funding to offset local public‑safety and service costs.
League staff outlined a recommended approach to homelessness legislation and urged caution on proposals that would alter municipal contributions to the statewide mitigation fund while the system undergoes major changes.
Molly (League staff) told members a major statewide expansion in shelter capacity is coming, including a central campus that could nearly double statewide bed capacity. League staff said the mitigation fund had a roughly $10 million deficit for shelter cities before recent new shelters went online and that the League board adopted principles to guide the League’s engagement in homelessness legislation.
House Bill 118 (Rep. Abbott) would allow credits against a city's mitigation contribution for qualifying local expenses: example provided — a city that normally contributes $100,000 could reduce its contribution if it documents $50,000 of qualifying expenditures. League staff recommended opposing HB118 and any legislative provisions that would either increase municipal contribution requirements or reduce them in ways that destabilize the mitigation fund until the state’s changing system is better understood.
Mayor Monica Zoltanski (Sandy) and Mayor Ben Nadolski (Ogden) — both shelter cities or host cities — said municipal costs exceed current reimbursements and urged protecting mitigation funding. Mayor Tree Wood (South Salt Lake) described the impact of hosting an 800‑bed shelter in a city of 26,000 residents and said mitigation funding is "vital" for managing neighborhood impacts.
House Bill 329 (Rep. Clancy) was summarized as requiring increased regulation for service providers, a by‑name coordinated entry system, and stronger winter response planning. Staff recommended position pending on HB329 while they continue to work with the sponsor to understand the operational effects and funding implications.
Why it matters: Cities hosting shelters say they incur direct and indirect public‑safety and service costs; staff said changing mitigation fund contributions or credits without a comprehensive understanding of the expanded statewide system could undermine shelter cities’ ability to manage local impacts.
What’s next: League staff recommended opposing statutory changes that alter municipality contributions to the mitigation fund until the League can assess system changes after the new statewide campus comes online. Staff will track HB118 and HB329 as they move through committee.
