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UDOT briefed commissioners on new rule enabling selected surplus property to be offered for housing

Utah Department of Transportation, Transportation Commission · June 26, 2026
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Summary

Policy staff presented draft rule language implementing legislative direction (HB 492/HB 360) that would let UDOT designate certain surplus parcels for disposition to the Division of Housing or Utah Housing Corporation, using criteria such as size, acquisition source and transit access.

Policy staff briefed the Transportation Commission on a department rule drafted to implement provisions of recent legislation that allows UDOT to designate surplus property for sale to housing entities. The rule sets criteria — including parcel size, location, funding source for acquisition, encumbrances and transit access — that staff would use to select parcels for potential sale to the state Division of Housing or the Utah Housing Corporation.

Staff framed the rule as a limited tool to support housing production near transit and to repurpose land that does not constrain future transportation needs. Commissioners generally expressed support and noted that strategic disposition of surplus land can help expand housing supply and mobility options. Staff emphasized they will not designate parcels that would impede important transportation projects and that properties bought with federal funds may present additional restrictions.

There was no commission vote on the rule during this meeting; the briefing sought commissioner input and explained the criteria staff will apply when evaluating parcels for designation under the new authority.