The Utah Department of Transportation has become the first agency to identify surplus property that meets the guidelines of the governor's starter home initiative. Eleven parcels have been identified and offered to help address the gap between first-time homebuyers and the current inflated housing market in Utah.
The initiative was launched by Governor Spencer Cox with a $150 million budget proposal intended to tackle the state's housing crisis. The core goal of the initiative is to facilitate the construction of 35,000 new, affordable starter homes priced under $450,000 across Utah by December 2028.
Under the current program, properties are sold directly to the Division of Housing and Community Development within the Governor’s Office of Economic Development (GOED). Administrative rules have been updated to align with these new laws. The program includes deeded restrictions that prohibit large companies from purchasing these dwellings for rental properties. Additionally, properties may not be rented for at least 30 years and require sales at specified levels tied to economic development factors.
The implementation of this project was recorded as fully implemented as of October 1, 2026. The development team for the Right of Way implementation includes Deryl Davis, Surplus Manager; Ross Crowe, Director of ROW; Mike Timothy, Surplus Agent; John Reynolds, Agent; Shirley Perez, GIS Manager; and Jodi Howick, AAG, UDOT AG Team. Tia Shim of SVN Auction Services is also involved.
Utah faces a challenging housing situation that impacts workforce recruitment, economic development, and families. High costs and a lack of available homes for first-time buyers are significant components of the state's housing challenge.
The identified parcels are scheduled to be transferred to the new Division of Housing and Community Development before December 30, 2026. Once the transfer is complete, the division has two years to develop initial plans and obtain permits. Following these steps, Commissioner Braceros may choose to identify additional properties.
