Herriman approves $50 million state road grant tied to 2,500 Olympia homes

The Herriman City Council voted 4-0 on Oct. 14 to approve an amendment to the Olympia Master Development Agreement, then approved an agreement with the Utah Department of Transportation to receive up to $50 million in state grant money for roads serving the Olympia development. ^[1][2][3]

The money comes from the Utah Affordable Housing Infrastructure Grant Board, which the Legislature created in 2025 with House Bill 502. According to the staff report for the UDOT agreement, the board awarded Herriman $50 million in 2026 and ratified the award July 1 to pay for three backbone roadways and related infrastructure: Herriman Boulevard from about 7200 West to the city's western border, Olympia Boulevard from 7300 West to about 9000 West, and Herriman Highway, Main Street and Bacchus Highway from 12600 South to 7300 West. ^[2]

In return, the grant requires 2,500 affordable homes to be built at Olympia. All of them must be sold to owner-occupants with a five-year owner-occupancy deed restriction, and rentals after that period are capped at 20% of the new homes. At least 1,250 must be single-family detached homes on lots of 5,000 square feet or less, with size limits on finished square footage, and no more than 40% of those may have accessory dwelling units. Townhomes are limited to 1,750 square feet. There must also be at least one affordable home for every $20,000 of grant money. ^[2]

The Olympia amendment, called Amendment No. 4, writes those conditions into the development agreement and adds a definition of "affordable new homes." Under the grant agreement the city is responsible for costs above $50 million, and staff said the amendment passes that responsibility to the Olympia developer. The staff report puts the estimated cost of the three road projects at $54,416,660. ^[2]

Council Member Teddy Hodges noted at the meeting that the requirement does not add units. Community Development Director Blake Thomas said the 2,500 homes will come out of the 6,480 units already approved for Olympia. ^[3]

The staff report says bonds for the grant program have not yet been issued, and that the grant board must verify to UDOT that conditions are met before any money is disbursed. The city must file annual reports with the board by Sept. 1 and a final report when construction ends. ^[2]