SALT LAKE CITY — A bill that originally sought $35 million for affordable housing efforts but was downsized to $10 million has cleared what is likely its last major legislative hurdle.

The Utah House of Representatives voted 48-24 to approve the SB39 fiscal note on Tuesday, days after the Legislature's Executive Appropriations Committee approved a $20 billion budget that included $10 million in one-time money for affordable housing programs.

The bill's sponsor sees the smaller yet substantial allocation as a win for affordable housing after a similar bill was completely stripped of its $24 million fiscal note last year.

"I am thrilled," sponsor Sen. Jake Anderegg, R-Lehi, told KSL. "I am thrilled from the standpoint of how little available funds there are this session. To have gotten that much is actually surprising to me."

Throughout this year's legislative session, the Legislature's failed tax reform package haunted the budgeting process as problems from what lawmakers called the "structural imbalance" between sales tax and income tax persisted. Faced with sparse general fund money, Anderegg worried affordable housing would see an uphill battle this session.

"I knew we were going to get something," he said. "I didn't expect to get quite that much."

Tuesday, Anderegg and House sponsor Rep. Val Potter, R-North Logan, found fair support in the House after no debate. Though two dozen lawmakers voted against the bill — likely opposed to the philosophy of using government money for affordable housing — it found favor with almost double that and cleared the House. It returned to the Senate for concurrence before likely heading to Gov. Gary Herbert's desk.

Potter urged lawmakers to support the bill amid Utah's growing housing crisis as prices continue to balloon. He pointed to the estimated $69 million the Utah Legislature has pumped into homelessness efforts in recent years without pumping any new money into affordable housing.

"That's a lot of money," Potter said. "I'd like to see (homelessness) drop. I like to see our part to help with private financing to help this situation."

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Though Anderegg acknowledged $10 million is less than a third of what he, as co-chairman of the state's Commission on Housing Affordability, had originally sought, he said it could still be "leveraged" to perhaps build roughly 1,400 new units for low- to moderate-income Utahns.

"It's not shabby. And it's a heck of a lot more than last year," he said, laughing, pointing to last year's $0 fiscal note.

The $10 million in one-time money was allocated to the Olene Walker Housing Loan Fund, which can be used for low-interest loans for developers that include affordable housing in their projects.

If the fund's board signs off, Anderegg said $1 million of that money could be used to contribute to an effort of some of Utah's biggest business giants to create a $100 million Utah Housing Preservation Fund, or a fund aimed at helping preserve Utah's existing affordable housing so they aren't bought and remodeled to be leased again at sky-high prices.

Though the group sought $5 million of state money for the effort, Anderegg said, "We just didn't get it."

As one-time money, none of the appropriation can be used for rental assistance — which Anderegg acknowledged was "disappointing" to some housing advocates. But, Anderegg said there simply wasn't any ongoing money for the effort this year.

"It's less," he said. "But given the financial climate, I'm thrilled."

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