Enrolled Copy H.B. 37
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Utah Housing Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: James A. Dunnigan
Senate Sponsor: Lincoln Fillmore
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LONG TITLE
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General Description:
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This bill deals with housing development and housing policy.
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Highlighted Provisions:
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This bill:
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▸ defines terms;
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▸ modifies the minimum population for incorporation of a new town;
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▸ authorizes a municipality or county to authorize additional housing density in exchange
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for certain requirements;
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▸ authorizes a municipality or county to offer incentives in an area approved for
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single-family or multi-family residential units to promote owner-occupied, affordable
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housing;
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▸ modifies requirements for a moderate income housing plan and a moderate income
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housing report;
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▸ authorizes a special district to provide the operation of a propane system within its
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boundaries;
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▸ authorizes the Division of Housing and Community Development to make rules regarding
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the content and form of a moderate income housing report;
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▸ requires the Governor's Office of Planning and Budget (GOPB) to develop a state housing
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plan by December 31, 2025;
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▸ requires GOPB to submit an annual written report on the implementation of the state
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housing plan to the Political Subdivisions Interim Committee; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None H.B. 37 Enrolled Copy
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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AMENDS:
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10-2a-201.5, as last amended by Laws of Utah 2024, Chapters 342, 518 and 534
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10-9a-102, as last amended by Laws of Utah 2019, Chapter 384
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10-9a-403, as last amended by Laws of Utah 2024, Chapters 431, 537
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10-9a-408, as last amended by Laws of Utah 2024, Chapters 413, 438
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10-9a-535, as enacted by Laws of Utah 2022, Chapter 355
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17-27a-102, as last amended by Laws of Utah 2022, Chapter 307
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17-27a-403, as last amended by Laws of Utah 2024, Chapters 381, 431
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17-27a-408, as last amended by Laws of Utah 2024, Chapters 381, 413
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17-27a-531, as enacted by Laws of Utah 2022, Chapter 355
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17B-1-202, as last amended by Laws of Utah 2024, Chapters 53, 388
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35A-8-202, as last amended by Laws of Utah 2021, Chapter 281
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72-1-304, as last amended by Laws of Utah 2024, Chapter 517
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72-2-124, as last amended by Laws of Utah 2024, Chapters 498, 501
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ENACTS:
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10-9a-403.2, Utah Code Annotated 1953
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10-9a-403.3, Utah Code Annotated 1953
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17-27a-403.1, Utah Code Annotated 1953
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17-27a-403.2, Utah Code Annotated 1953
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63J-4-402, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 10-2a-201.5 is amended to read:
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10-2a-201.5 . Qualifications for incorporation.
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(1)(a) An area may incorporate as a town in accordance with this part if the area:
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(i)(A) is contiguous; or
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(B) is a community council area;
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(ii) has a population of at least [100] 75 people, but fewer than 1,000 people; and
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(iii) is not already part of a municipality.
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(b) A preliminary municipality may transition to, and incorporate as, a town, in
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accordance with Section 10-2a-510.
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(c) An area may incorporate as a city in accordance with this part if the area:
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(i)(A) is contiguous; or
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(B) is a community council area;
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(ii) has a population of 1,000 people or more; and
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(iii) is not already part of a municipality.
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(2)(a) An area may not incorporate under this part if:
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(i) the area has a population of fewer than 100 people; or
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(ii) except as provided in Subsection (2)(b), the area has an average population
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density of fewer than seven people per square mile.
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(b) Subsection (2)(a)(ii) does not prohibit incorporation of an area if:
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(i) noncompliance with Subsection (2)(a)(ii) is necessary to connect separate areas
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that share a demonstrable community interest; and
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(ii) the area is contiguous.
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(3) An area incorporating under this part may not include land owned by the United States
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federal government unless:
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(a) the area, including the land owned by the United States federal government, is
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contiguous; and
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(b)(i) incorporating the land is necessary to connect separate areas that share a
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demonstrable community interest; or
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(ii) excluding the land from the incorporating area would create an unincorporated
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island within the proposed municipality.
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(4)(a) Except as provided in Subsection (4)(b), an area incorporating under this part may
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not include some or all of an area proposed for annexation in an annexation petition
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under Section 10-2-403 that:
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(i) was filed before the filing of the request for a feasibility study, described in
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Section 10-2a-202, relating to the incorporating area; and
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(ii) is still pending on the date the request for the feasibility study described in
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Subsection (4)(a)(i) is filed.
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(b) A feasibility request may propose for incorporation an area that includes some or all
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of an area proposed for annexation in an annexation petition described in Subsection
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(4)(a) if:
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(i) the proposed annexation area that is part of the area proposed for incorporation
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does not exceed 20% of the area proposed for incorporation;
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(ii) the feasibility request complies with Subsections 10-2a-202(1), (3), (4), and (5)
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with respect to excluding the proposed annexation area from the area proposed for
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incorporation; and
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(iii) excluding the area proposed for annexation from the area proposed for
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incorporation would not cause the area proposed for incorporation to not be
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contiguous.
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(c) Except as provided in Section 10-2a-206, the lieutenant governor shall consider each
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feasibility request to which Subsection (4)(b) applies as not proposing the
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incorporation of an area proposed for annexation.
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(5)(a) An area incorporating under this part may not include part of a parcel of real
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property and exclude part of that same parcel unless the owner of the parcel gives
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written consent to exclude part of the parcel.
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(b) A piece of real property that has more than one parcel number is considered to be a
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single parcel for purposes of Subsection (5)(a) if owned by the same owner.
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Section 2. Section 10-9a-102 is amended to read:
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10-9a-102 . Purposes -- General land use authority.
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(1) The purposes of this chapter are to:
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(a) provide for the health, safety, and welfare;
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(b) promote the prosperity;
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(c) improve the morals, peace, good order, comfort, convenience, and aesthetics of each
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municipality and each municipality's present and future inhabitants and businesses;
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(d) protect the tax base;
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(e) secure economy in governmental expenditures;
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(f) foster the state's agricultural and other industries;
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(g) protect both urban and nonurban development;
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(h) protect and ensure access to sunlight for solar energy devices;
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(i) provide fundamental fairness in land use regulation;
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(j) facilitate orderly growth, [and ]allow growth in a variety of housing types, and
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contribute toward housing affordability; and
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(k) protect property values.
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(2) To accomplish the purposes of this chapter, a municipality may enact all ordinances,
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resolutions, and rules and may enter into other forms of land use controls and
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development agreements that the municipality considers necessary or appropriate for the
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use and development of land within the municipality, including ordinances, resolutions,
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rules, restrictive covenants, easements, and development agreements governing:
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(a) uses;
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(b) density;
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(c) open spaces;
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(d) structures;
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(e) buildings;
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(f) energy efficiency;
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(g) light and air;
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(h) air quality;
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(i) transportation and public or alternative transportation;
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(j) infrastructure;
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(k) street and building orientation;
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(l) width requirements;
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(m) public facilities;
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(n) fundamental fairness in land use regulation; and
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(o) considerations of surrounding land uses to balance the foregoing purposes with a
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landowner's private property interests and associated statutory and constitutional
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protections.
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(3)(a) Any ordinance, resolution, or rule enacted by a municipality pursuant to its
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authority under this chapter shall comply with the state's exclusive jurisdiction to
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regulate oil and gas activity, as described in Section 40-6-2.5.
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(b) A municipality may enact an ordinance, resolution, or rule that regulates surface
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activity incident to an oil and gas activity if the municipality demonstrates that the
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regulation:
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(i) is necessary for the purposes of this chapter;
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(ii) does not effectively or unduly limit, ban, or prohibit an oil and gas activity; and
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(iii) does not interfere with the state's exclusive jurisdiction to regulate oil and gas
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activity, as described in Section 40-6-2.5.
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Section 3. Section 10-9a-403 is amended to read:
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10-9a-403 . General plan preparation.
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(1)(a) The planning commission shall provide notice, as provided in Section 10-9a-203,
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of the planning commission's intent to make a recommendation to the municipal
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legislative body for a general plan or a comprehensive general plan amendment when
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the planning commission initiates the process of preparing the planning commission's
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recommendation.
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(b) The planning commission shall make and recommend to the legislative body a
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proposed general plan for the area within the municipality.
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(c) The plan may include areas outside the boundaries of the municipality if, in the
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planning commission's judgment, those areas are related to the planning of the
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municipality's territory.
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(d) Except as otherwise provided by law or with respect to a municipality's power of
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eminent domain, when the plan of a municipality involves territory outside the
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boundaries of the municipality, the municipality may not take action affecting that
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territory without the concurrence of the county or other municipalities affected.
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(2)(a) At a minimum, the proposed general plan, with the accompanying maps, charts,
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and descriptive and explanatory matter, shall include the planning commission's
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recommendations for the following plan elements:
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(i) a land use element that:
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(A) designates the long-term goals and the proposed extent, general distribution,
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and location of land for housing for residents of various income levels,
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business, industry, agriculture, recreation, education, public buildings and
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grounds, open space, and other categories of public and private uses of land as
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appropriate;
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(B) includes a statement of the projections for and standards of population density
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and building intensity recommended for the various land use categories
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covered by the plan;
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(C) except for a city of the fifth class or a town, is coordinated to integrate the
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land use element with the water use and preservation element; and
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(D) except for a city of the fifth class or a town, accounts for the effect of land use
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categories and land uses on water demand;
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(ii) a transportation and traffic circulation element that:
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(A) provides the general location and extent of existing and proposed freeways,
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arterial and collector streets, public transit, active transportation facilities, and
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other modes of transportation that the planning commission considers
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appropriate;
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(B) for a municipality that has access to a major transit investment corridor,
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addresses the municipality's plan for residential and commercial development
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around major transit investment corridors to maintain and improve the
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connections between housing, employment, education, recreation, and
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commerce;
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(C) for a municipality that does not have access to a major transit investment
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corridor, addresses the municipality's plan for residential and commercial
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development in areas that will maintain and improve the connections between
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housing, transportation, employment, education, recreation, and commerce; and
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(D) correlates with the population projections, the employment projections, and
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the proposed land use element of the general plan;
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(iii) a moderate income housing element that:
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(A) provides a realistic opportunity to meet the need for additional moderate
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income housing within the municipality during the next five years;
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(B) for a [town] municipality that is not a specified municipality, may include a
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recommendation to implement three or more of the moderate income housing
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strategies described in Subsection (2)(b)(iii);
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(C) for a specified municipality, as defined in Section 10-9a-408, that does not
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have a fixed guideway public transit station, shall include a recommendation to
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implement three or more of the moderate income housing strategies described
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in Subsection (2)(b)(iii) or at least one of the moderate income housing
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strategies described in Subsections (2)(b)(iii)(X) through (CC);
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(D) for a specified municipality, as defined in Section 10-9a-408, that has a fixed
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guideway public transit station, shall include:
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(I) [ ]a recommendation to implement five or more of the moderate income
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housing strategies described in Subsection (2)(b)(iii), of which one shall be
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the moderate income housing strategy described in Subsection [
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(2)(b)(iii)(W),] (2)(b)(iii)(U) and one shall be a moderate income housing
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strategy described in Subsection (2)(b)(iii)(G)[,] or (H)[, or (Q); ] ; or
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(II) a recommendation to implement the moderate income housing strategy
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described in Subsection (2)(b)(iii)(U), one of the moderate income housing
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strategies described in Subsections (2)(b)(iii)(X) through (CC), and one
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moderate income housing strategy described in Subsection (2)(b)(iii); and
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(E) for a specified municipality, as defined in Section 10-9a-408, shall include an
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implementation plan as provided in Subsection (2)(c); and
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(iv) except for a city of the fifth class or a town, a water use and preservation element
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that addresses:
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(A) the effect of permitted development or patterns of development on water
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demand and water infrastructure;
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(B) methods of reducing water demand and per capita consumption for future
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development;
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(C) methods of reducing water demand and per capita consumption for existing
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development; and
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(D) opportunities for the municipality to modify the municipality's operations to
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eliminate practices or conditions that waste water.
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(b) In drafting the moderate income housing element, the planning commission:
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(i) shall consider the Legislature's determination that municipalities shall facilitate a
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reasonable opportunity for a variety of housing, including moderate income
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housing:
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(A) to meet the needs of people of various income levels living, working, or
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desiring to live or work in the community; and
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(B) to allow people with various incomes to benefit from and fully participate in
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all aspects of neighborhood and community life;
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(ii) for a [town] municipality that is not a specified municipality, may include, and for
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a specified municipality as defined in Section 10-9a-408, shall include, an analysis
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of how the municipality will provide a realistic opportunity for the development of
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moderate income housing within the next five years;
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(iii) for a [town] municipality that is not a specified municipality, may include, and
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for a specified municipality as defined in Section 10-9a-408, shall include a
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recommendation to implement the required number of any of the following
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moderate income housing strategies as specified in Subsection (2)(a)(iii):
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(A) rezone for densities necessary to facilitate the production of moderate income
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housing;
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(B) demonstrate investment in the rehabilitation or expansion of infrastructure that
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facilitates the construction of moderate income housing;
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(C) demonstrate investment in the rehabilitation of existing uninhabitable housing
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stock into moderate income housing;
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(D) identify and utilize general fund subsidies or other sources of revenue to
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waive construction related fees that are otherwise generally imposed by the
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municipality for the construction or rehabilitation of moderate income housing;
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(E) create or allow for, and reduce regulations related to, internal or detached
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accessory dwelling units in residential zones;
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(F) zone or rezone for higher density or moderate income residential development
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in commercial or mixed-use zones near major transit investment corridors,
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commercial centers, or employment centers;
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(G) amend land use regulations to allow for higher density or new moderate
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income residential development in commercial or mixed-use zones near major
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transit investment corridors;
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(H) amend land use regulations to eliminate or reduce parking requirements for
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residential development where a resident is less likely to rely on the resident's
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own vehicle, such as residential development near major transit investment
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corridors or senior living facilities;
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(I) amend land use regulations to allow for single room occupancy developments;
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(J) implement zoning incentives for moderate income units in new developments;
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(K) preserve existing and new moderate income housing and subsidized units by
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utilizing a landlord incentive program, providing for deed restricted units
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through a grant program, or, notwithstanding Section 10-9a-535, establishing a
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housing loss mitigation fund;
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(L) reduce, waive, or eliminate impact fees related to moderate income housing;
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(M) demonstrate creation of, or participation in, a community land trust program
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for moderate income housing;
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(N) implement a mortgage assistance program for employees of the municipality,
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an employer that provides contracted services to the municipality, or any other
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public employer that operates within the municipality;
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(O) apply for or partner with an entity that applies for state or federal funds or tax
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incentives to promote the construction of moderate income housing, an entity
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that applies for programs offered by the Utah Housing Corporation within that
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agency's funding capacity, an entity that applies for affordable housing
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programs administered by the Department of Workforce Services, an entity
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that applies for affordable housing programs administered by an association of
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governments established by an interlocal agreement under Title 11, Chapter 13,
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Interlocal Cooperation Act, an entity that applies for services provided by a
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public housing authority to preserve and create moderate income housing, or
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any other entity that applies for programs or services that promote the
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construction or preservation of moderate income housing;
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(P) demonstrate utilization of a moderate income housing set aside from a
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community reinvestment agency, redevelopment agency, or community
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development and renewal agency to create or subsidize moderate income
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housing;
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[(Q) create a housing and transit reinvestment zone pursuant to Title 63N, Chapter
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3, Part 6, Housing and Transit Reinvestment Zone Act;]
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[(R) create a home ownership promotion zone pursuant to Part 10, Home
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Ownership Promotion Zone for Municipalities;]
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[(S)] (Q) eliminate impact fees for any accessory dwelling unit that is not an
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internal accessory dwelling unit as defined in Section 10-9a-530;
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[(T)] (R) create a program to transfer development rights for moderate income
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housing;
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[(U)] (S) ratify a joint acquisition agreement with another local political
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subdivision for the purpose of combining resources to acquire property for
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moderate income housing;
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[(V)] (T) develop a moderate income housing project for residents who are
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disabled or 55 years old or older;
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[(W)] (U) develop and adopt a station area plan in accordance with Section
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10-9a-403.1;
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[(X)] (V) create or allow for, and reduce regulations related to, multifamily
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residential dwellings compatible in scale and form with detached single-family
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residential dwellings and located in walkable communities within residential or
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mixed-use zones;
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[(Y) create a first home investment zone in accordance with Title 63N, Chapter 3,
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Part 16, First Home Investment Zone Act; and]
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[(Z)] (W) demonstrate implementation of any other program or strategy to address
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the housing needs of residents of the municipality who earn less than 80% of
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the area median income, including the dedication of a local funding source to
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moderate income housing or the adoption of a land use ordinance that requires
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10% or more of new residential development in a residential zone be dedicated
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to moderate income housing;[ and]
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(X) create a housing and transit reinvestment zone pursuant to Title 63N, Chapter
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3, Part 6, Housing and Transit Reinvestment Zone Act;
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(Y) create a home ownership promotion zone pursuant to Part 10, Home
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Ownership Promotion Zone for Municipalities;
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(Z) create a first home investment zone in accordance with Title 63N, Chapter 3,
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Part 16, First Home Investment Zone Act;
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(AA) approve a project that receives funding from, or qualifies to receive funding
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from, the Utah Homes Investment Program created in Title 51, Chapter 12,
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Utah Homes Investment Program;
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(BB) adopt or approve a qualifying affordable home ownership density bonus for
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single-family residential units, as described in Section 10-9a-403.2; and
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(CC) adopt or approve a qualifying affordable home ownership density bonus for
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multi-family residential units, as described in Section 10-9a-403.3; and
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(iv) shall identify each moderate income housing strategy recommended to the
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legislative body for implementation by restating the exact language used to
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describe the strategy in Subsection (2)(b)(iii).
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(c)(i) In drafting the implementation plan portion of the moderate income housing
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element as described in Subsection (2)(a)(iii)(C), the planning commission shall
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recommend to the legislative body the establishment of a five-year timeline for
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implementing each of the moderate income housing strategies selected by the
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municipality for implementation.
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(ii) The timeline described in Subsection (2)(c)(i) shall:
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(A) identify specific measures and benchmarks for implementing each moderate
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income housing strategy selected by the municipality, whether one-time or
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ongoing; and
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(B) provide flexibility for the municipality to make adjustments as needed.
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(d) In drafting the land use element, the planning commission shall:
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(i) identify and consider each agriculture protection area within the municipality;
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(ii) avoid proposing a use of land within an agriculture protection area that is
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inconsistent with or detrimental to the use of the land for agriculture; and
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(iii) consider and coordinate with any station area plans adopted by the municipality
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if required under Section 10-9a-403.1.
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(e) In drafting the transportation and traffic circulation element, the planning
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commission shall:
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(i)(A) consider and coordinate with the regional transportation plan developed by
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the municipality's region's metropolitan planning organization, if the
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municipality is within the boundaries of a metropolitan planning organization;
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or
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(B) consider and coordinate with the long-range transportation plan developed by
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the Department of Transportation, if the municipality is not within the
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boundaries of a metropolitan planning organization; and
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(ii) consider and coordinate with any station area plans adopted by the municipality if
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required under Section 10-9a-403.1.
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(f) In drafting the water use and preservation element, the planning commission:
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(i) shall consider:
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(A) applicable regional water conservation goals recommended by the Division of
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Water Resources; and
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(B) if Section 73-10-32 requires the municipality to adopt a water conservation
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plan pursuant to Section 73-10-32, the municipality's water conservation plan;
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(ii) shall include a recommendation for:
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(A) water conservation policies to be determined by the municipality; and
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(B) landscaping options within a public street for current and future development
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that do not require the use of lawn or turf in a parkstrip;
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(iii) shall review the municipality's land use ordinances and include a
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recommendation for changes to an ordinance that promotes the inefficient use of
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water;
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(iv) shall consider principles of sustainable landscaping, including the:
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(A) reduction or limitation of the use of lawn or turf;
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(B) promotion of site-specific landscape design that decreases stormwater runoff
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or runoff of water used for irrigation;
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(C) preservation and use of healthy trees that have a reasonable water requirement
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or are resistant to dry soil conditions;
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(D) elimination or regulation of ponds, pools, and other features that promote
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unnecessary water evaporation;
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(E) reduction of yard waste; and
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(F) use of an irrigation system, including drip irrigation, best adapted to provide
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the optimal amount of water to the plants being irrigated;
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(v) shall consult with the public water system or systems serving the municipality
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with drinking water regarding how implementation of the land use element and
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water use and preservation element may affect:
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(A) water supply planning, including drinking water source and storage capacity
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consistent with Section 19-4-114; and
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(B) water distribution planning, including master plans, infrastructure asset
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management programs and plans, infrastructure replacement plans, and impact
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fee facilities plans;
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(vi) shall consult with the Division of Water Resources for information and technical
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resources regarding regional water conservation goals, including how
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implementation of the land use element and the water use and preservation
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element may affect the Great Salt Lake;
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(vii) may include recommendations for additional water demand reduction strategies,
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including:
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(A) creating a water budget associated with a particular type of development;
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(B) adopting new or modified lot size, configuration, and landscaping standards
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that will reduce water demand for new single family development;
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(C) providing one or more water reduction incentives for existing development
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such as modification of existing landscapes and irrigation systems and
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installation of water fixtures or systems that minimize water demand;
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(D) discouraging incentives for economic development activities that do not
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adequately account for water use or do not include strategies for reducing
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water demand; and
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(E) adopting water concurrency standards requiring that adequate water supplies
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and facilities are or will be in place for new development; and
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(viii) for a town, may include, and for another municipality, shall include, a
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recommendation for low water use landscaping standards for a new:
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(A) commercial, industrial, or institutional development;
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(B) common interest community, as defined in Section 57-25-102; or
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(C) multifamily housing project.
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(3) The proposed general plan may include:
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(a) an environmental element that addresses:
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(i) the protection, conservation, development, and use of natural resources, including
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the quality of:
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(A) air;
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(B) forests;
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(C) soils;
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(D) rivers;
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(E) groundwater and other waters;
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(F) harbors;
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(G) fisheries;
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(H) wildlife;
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(I) minerals; and
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(J) other natural resources; and
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(ii)(A) the reclamation of land, flood control, prevention and control of the
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pollution of streams and other waters;
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(B) the regulation of the use of land on hillsides, stream channels and other
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environmentally sensitive areas;
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(C) the prevention, control, and correction of the erosion of soils;
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(D) the preservation and enhancement of watersheds and wetlands; and
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(E) the mapping of known geologic hazards;
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(b) a public services and facilities element showing general plans for sewage, water,
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waste disposal, drainage, public utilities, rights-of-way, easements, and facilities for
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them, police and fire protection, and other public services;
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(c) a rehabilitation, redevelopment, and conservation element consisting of plans and
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programs for:
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(i) historic preservation;
454
(ii) the diminution or elimination of a development impediment as defined in Section
455
17C-1-102; and
456
(iii) redevelopment of land, including housing sites, business and industrial sites, and
457
public building sites;
458
(d) an economic element composed of appropriate studies and forecasts, as well as an
459
economic development plan, which may include review of existing and projected
460
municipal revenue and expenditures, revenue sources, identification of basic and
461
secondary industry, primary and secondary market areas, employment, and retail
462
sales activity;
463
(e) recommendations for implementing all or any portion of the general plan, including
464
the adoption of land and water use ordinances, capital improvement plans,
465
community development and promotion, and any other appropriate action;
466
(f) provisions addressing any of the matters listed in Subsection 10-9a-401(2) or (3); and
467
(g) any other element the municipality considers appropriate.
468
Section 4. Section 10-9a-403.2 is enacted to read:
469
10-9a-403.2 . Affordable home ownership density bonus for single-family
- 14 - Enrolled Copy H.B. 37
470
residential units.
471
(1) As used in this section:
472
(a) "Affordable housing" means a dwelling:
473
(i) offered for sale to an owner-occupier at a purchase price affordable to a household
474
with a gross income of no more than 120% of area median income for the county
475
in which the residential unit is offered for sale; or
476
(ii) offered for rent at a rental price affordable to a household with a gross income of
477
no more than 80% of area median income for the county in which the residential
478
unit is offered for rent.
479
(b) "Owner-occupier" means an individual who owns, solely or jointly, a housing unit in
480
which the individual lives as the individual's primary residence.
481
(c) "Qualifying affordable home ownership single-family density bonus" means:
482
(i) for an area with an underlying zoning density of less than six residential units per
483
acre, municipal approval of a density at least six residential units per acre; or
484
(ii) for an area with an underlying zoning density of six residential units per acre or
485
more, municipal approval of a density at least 0.5 residential units per acre greater
486
than the underlying zoning density for the area.
487
(2) If a municipality approves a qualifying affordable home ownership single-family
488
density bonus, either through a zoning ordinance or a development agreement, the
489
municipality may adopt requirements for the qualifying affordable home ownership
490
single-family density bonus area to ensure:
491
(a) at least 60% of the total single-family residential units be deed-restricted to
492
owner-occupancy for at least five years;
493
(b) at least 25% of the total single-family residential units qualify as affordable housing;
494
(c) at least 25% of the single-family residential units per acre to be no larger than 1,600
495
square feet; or
496
(d) the applicant creates a preferential qualifying buyer program in which a
497
single-family residential unit is initially offered for sale, for up to 30 days, to a
498
category of preferred qualifying buyers established by the municipality, in
499
accordance with provisions of the Fair Housing Act, 42 U.S.C. Sec. 3601.
500
(3) A municipality may offer additional incentives in a qualifying affordable home
501
ownership single-family density bonus area approved for single-family residential units
502
to promote owner-occupied, affordable housing.
503
Section 5. Section 10-9a-403.3 is enacted to read:
- 15 - H.B. 37 Enrolled Copy
504
10-9a-403.3 . Affordable home ownership density bonus for multi-family
505
residential units.
506
(1) As used in this section:
507
(a) "Affordable housing" means the same as that term is defined in Section 10-9a-403.2.
508
(b) "Owner-occupier" means the same as that term is defined in Section 10-9a-403.2.
509
(c) "Qualifying affordable home ownership multi-family density bonus" means
510
municipal approval of a density of at least 20 residential units per acre.
511
(2) If a municipality approves a qualifying affordable home ownership multi-family density
512
bonus, either through a zoning ordinance or a development agreement, the municipality
513
may adopt requirements for the qualifying affordable home ownership multi-family
514
density bonus area to ensure:
515
(a) at least 20% more residential units per acre than are otherwise allowed in the area;
516
(b) at least 60% of the total units in the multi-family residential building be
517
deed-restricted to owner-occupancy for at least five years;
518
(c) at least 25% of the total units in the multi-family residential building qualify as
519
affordable housing;
520
(d) at least 25% of the total units in a multi-family residential building to be no larger
521
than 1,600 square feet; or
522
(e) the applicant creates a preferential qualifying buyer program in which a unit in a
523
multi-family residential building is initially offered for sale, for up to 30 days, to a
524
category of preferred qualifying buyers established by the municipality, in
525
accordance with provisions of the Fair Housing Act, 42 U.S.C. Sec. 3601.
526
(3) A municipality may offer additional incentives in a qualifying affordable home
527
ownership multi-family density bonus area for multi-family residential units to promote
528
owner-occupied, affordable housing.
529
Section 6. Section 10-9a-408 is amended to read:
530
10-9a-408 . Moderate income housing report -- Contents -- Prioritization for
531
funds or projects -- Ineligibility for funds after noncompliance -- Civil actions.
532
(1) As used in this section:
533
(a) "Division" means the Housing and Community Development Division within the
534
Department of Workforce Services.
535
(b) "Implementation plan" means the implementation plan adopted as part of the
536
moderate income housing element of a specified municipality's general plan as
537
provided in Subsection 10-9a-403(2)(c).
- 16 - Enrolled Copy H.B. 37
538
(c) "Initial report" or "initial moderate income housing report" means the one-time report
539
described in Subsection (2).
540
(d) "Moderate income housing strategy" means a strategy described in Subsection
541
10-9a-403(2)(b)(iii).
542
(e) "Report" means an initial report or a subsequent progress report.
543
(f) "Specified municipality" means:
544
(i) a city of the first, second, third, or fourth class; or
545
(ii) a city of the fifth class with a population of 5,000 or more, if the city is located
546
within a county of the first, second, or third class.
547
(g) "Subsequent progress report" means the annual report described in Subsection (3).
548
(2)(a) The legislative body of a specified municipality shall submit an initial report to
549
the division.
550
(b)(i) This Subsection (2)(b) applies to a municipality that is not a specified
551
municipality as of January 1, 2023.
552
(ii) As of January 1, if a municipality described in Subsection (2)(b)(i) changes from
553
one class to another or grows in population to qualify as a specified municipality,
554
the municipality shall submit an initial plan to the division on or before August 1
555
of the first calendar year beginning on January 1 in which the municipality
556
qualifies as a specified municipality.
557
(c) The initial report shall:
558
(i) identify each moderate income housing strategy selected by the specified
559
municipality for continued, ongoing, or one-time implementation, restating the
560
exact language used to describe the moderate income housing strategy in
561
Subsection 10-9a-403(2)(b)(iii); and
562
(ii) include an implementation plan.
563
(3)(a) After the division approves a specified municipality's initial report under this
564
section, the specified municipality shall, as an administrative act, annually submit to
565
the division a subsequent progress report on or before August 1 of each year after the
566
year in which the specified municipality is required to submit the initial report.
567
(b) The subsequent progress report shall include:
568
(i) subject to Subsection (3)(c), a description of each action, whether one-time or
569
ongoing, taken by the specified municipality during the previous 12-month period
570
to implement the moderate income housing strategies identified in the initial
571
report for implementation;
- 17 - H.B. 37 Enrolled Copy
572
(ii) a description of each land use regulation or land use decision made by the
573
specified municipality during the previous 12-month period to implement the
574
moderate income housing strategies, including an explanation of how the land use
575
regulation or land use decision supports the specified municipality's efforts to
576
implement the moderate income housing strategies;
577
(iii) a description of any barriers encountered by the specified municipality in the
578
previous 12-month period in implementing the moderate income housing
579
strategies;
580
(iv) information regarding the number of internal and external or detached accessory
581
dwelling units located within the specified municipality for which the specified
582
municipality:
583
(A) issued a building permit to construct; or
584
(B) issued a business license or comparable license or permit to rent;
585
(v) the number of residential dwelling units that have been entitled that have not
586
received a building permit as of the submission date of the progress report;
587
(vi) shapefiles, or website links if shapefiles are not available, to current maps and
588
tables related to zoning;
589
(vii) a description of how the market has responded to the selected moderate income
590
housing strategies, including the number of entitled moderate income housing
591
units or other relevant data; and
592
(viii) any recommendations on how the state can support the specified municipality
593
in implementing the moderate income housing strategies.
594
(c) For purposes of describing actions taken by a specified municipality under
595
Subsection (3)(b)(i), the specified municipality may include an ongoing action taken
596
by the specified municipality prior to the 12-month reporting period applicable to the
597
subsequent progress report if the specified municipality:
598
(i) has already adopted an ordinance, approved a land use application, made an
599
investment, or approved an agreement or financing that substantially promotes the
600
implementation of a moderate income housing strategy identified in the initial
601
report; and
602
(ii) demonstrates in the subsequent progress report that the action taken under
603
Subsection (3)(c)(i) is relevant to making meaningful progress towards the
604
specified municipality's implementation plan.
605
(d) A specified municipality's report shall be in a form:
- 18 - Enrolled Copy H.B. 37
606
(i) approved by the division; and
607
(ii) made available by the division on or before May 1 of the year in which the report
608
is required.
609
(4) Within 90 days after the day on which the division receives a specified municipality's
610
report, the division shall:
611
(a) post the report on the division's website;
612
(b) send a copy of the report to the Department of Transportation, the Governor's Office
613
of Planning and Budget, the association of governments in which the specified
614
municipality is located, and, if the specified municipality is located within the
615
boundaries of a metropolitan planning organization, the appropriate metropolitan
616
planning organization; and
617
(c) subject to Subsection (5), review the report to determine compliance with this section.
618
(5)(a) An initial report [does not comply] complies with this section [unless] if the report:
619
(i) includes the information required under Subsection (2)(c);
620
(ii) demonstrates to the division that the specified municipality made plans to
621
implement:
622
(A) three or more moderate income housing strategies if the specified
623
municipality does not have a fixed guideway public transit station; or
624
(B) [subject to Subsection 10-9a-403(2)(b)(iv), five or more moderate income
625
housing strategies ]if the specified municipality has a fixed guideway public
626
transit station:
627
(I) five or more of the moderate income housing strategies described in
628
Subsection 10-9a-403(2)(b)(iii), of which one shall be the moderate income
629
housing strategy described in Subsection 10-9a-403(2)(b)(iii)(U) and one
630
shall be a moderate income housing strategy described in Subsection
631
10-9a-403(2)(b)(iii)(G) or (H); or
632
(II) the moderate income housing strategy described in Subsection
633
10-9a-403(2)(b)(iii)(U), one of the moderate income housing strategies
634
described in Subsections 10-9a-403(2)(b)(iii)(X) through (CC), and one
635
moderate income strategy described in Subsection 10-9a-403(2)(b)(iii); and
636
(iii) is in a form approved by the division.
637
(b) A subsequent progress report [does not comply] complies with this section [unless] if
638
the report:
639
(i) demonstrates to the division that the specified municipality made plans to
- 19 - H.B. 37 Enrolled Copy
640
implement:
641
(A) three or more moderate income housing strategies if the specified
642
municipality does not have a fixed guideway public transit station; or
643
(B) [subject to the requirements of Subsection 10-9a-403(2)(a)(iii)(D), five or
644
more moderate income housing strategies ]if the specified municipality has a
645
fixed guideway public transit station[;] :
646
(I) five or more of the moderate income housing strategies described in
647
Subsection 10-9a-403(2)(b)(iii), of which one shall be the moderate income
648
housing strategy described in Subsection 10-9a-403(2)(b)(iii)(U) and one
649
shall be a moderate income housing strategy described in Subsection
650
10-9a-403(2)(b)(iii)(G) or (H); or
651
(II) the moderate income housing strategy described in Subsection
652
10-9a-403(2)(b)(iii)(U), one of the moderate income housing strategies
653
described in Subsections 10-9a-403(2)(b)(iii)(X) through (CC), and one
654
moderate income housing strategy described in Subsection
655
10-9a-403(2)(b)(iii);
656
(ii) is in a form approved by the division; and
657
(iii) provides sufficient information for the division to:
658
(A) assess the specified municipality's progress in implementing the moderate
659
income housing strategies;
660
(B) monitor compliance with the specified municipality's implementation plan;
661
(C) identify a clear correlation between the specified municipality's land use
662
regulations and land use decisions and the specified municipality's efforts to
663
implement the moderate income housing strategies;
664
(D) identify how the market has responded to the specified municipality's selected
665
moderate income housing strategies; and
666
(E) identify any barriers encountered by the specified municipality in
667
implementing the selected moderate income housing strategies.
668
(c)(i) Notwithstanding the requirements of Subsection (5)(a)(ii)(A) or (b)(i)(A), if a
669
specified municipality without a fixed guideway public transit station implements
670
or is implementing, by ordinance or development agreement, one of the following
671
moderate income housing strategies, the division shall consider that one moderate
672
income housing strategy to be the equivalent of three moderate income housing
673
strategies:
- 20 - Enrolled Copy H.B. 37
674
(A) a housing and transit reinvestment zone, as described in Subsection
675
10-9a-403(2)(b)(iii)(X);
676
(B) a home ownership promotion zone, as described in Subsection
677
10-9a-403(2)(b)(iii)(Y);
678
(C) a first home investment zone, described in Subsection 10-9a-403(2)(b)(iii)(Z);
679
(D) the approval of a project described in Subsection 10-9a-403(2)(b)(iii)(AA);
680
(E) a qualifying affordable home ownership density bonus for single-family
681
residential units, as described in Subsection 10-9a-403(2)(b)(iii)(BB); or
682
(F) a qualifying affordable home ownership density bonus for multi-family
683
residential units, as described in Subsection 10-9a-403(2)(b)(iii)(CC).
684
(ii) If the division considers one moderate income housing strategy described in
685
Subsection (5)(c)(i) as the equivalent of three moderate income housing strategies,
686
the division shall also consider the specified municipality compliant with the
687
reporting requirement described in this section for:
688
(A) the year in which the specified municipality submits the initial report or
689
subsequent report; and
690
(B) two subsequent reporting years.
691
(6)(a) A specified municipality qualifies for priority consideration under this Subsection
692
(6) if the specified municipality's report:
693
(i) complies with this section; and
694
(ii) demonstrates to the division that the specified municipality made plans to
695
implement:
696
(A) five or more moderate income housing strategies if the specified municipality
697
does not have a fixed guideway public transit station; or
698
(B) six or more moderate income housing strategies if the specified municipality
699
has a fixed guideway public transit station.
700
(b) The Transportation Commission may, in accordance with Subsection 72-1-304(3)(c),
701
give priority consideration to transportation projects located within the boundaries of
702
a specified municipality described in Subsection (6)(a) until the Department of
703
Transportation receives notice from the division under Subsection (6)(e).
704
(c) Upon determining that a specified municipality qualifies for priority consideration
705
under this Subsection (6), the division shall send a notice of prioritization to the
706
legislative body of the specified municipality and the Department of Transportation.
707
(d) The notice described in Subsection (6)(c) shall:
- 21 - H.B. 37 Enrolled Copy
708
(i) name the specified municipality that qualifies for priority consideration;
709
(ii) describe the funds or projects for which the specified municipality qualifies to
710
receive priority consideration; and
711
(iii) state the basis for the division's determination that the specified municipality
712
qualifies for priority consideration.
713
(e) The division shall notify the legislative body of a specified municipality and the
714
Department of Transportation in writing if the division determines that the specified
715
municipality no longer qualifies for priority consideration under this Subsection (6).
716
(7)(a) If the division, after reviewing a specified municipality's report, determines that
717
the report does not comply with this section, the division shall send a notice of
718
noncompliance to the legislative body of the specified municipality.
719
(b) A specified municipality that receives a notice of noncompliance may:
720
(i) cure each deficiency in the report within 90 days after the day on which the notice
721
of noncompliance is sent; or
722
(ii) request an appeal of the division's determination of noncompliance within 10
723
days after the day on which the notice of noncompliance is sent.
724
(c) The notice described in Subsection (7)(a) shall:
725
(i) describe each deficiency in the report and the actions needed to cure each
726
deficiency;
727
(ii) state that the specified municipality has an opportunity to:
728
(A) submit to the division a corrected report that cures each deficiency in the
729
report within 90 days after the day on which the notice of compliance is sent; or
730
(B) submit to the division a request for an appeal of the division's determination of
731
noncompliance within 10 days after the day on which the notice of
732
noncompliance is sent; and
733
(iii) state that failure to take action under Subsection (7)(c)(ii) will result in the
734
specified municipality's ineligibility for funds under Subsection (9).
735
(d) For purposes of curing the deficiencies in a report under this Subsection (7), if the
736
action needed to cure the deficiency as described by the division requires the
737
specified municipality to make a legislative change, the specified municipality may
738
cure the deficiency by making that legislative change within the 90-day cure period.
739
(e)(i) If a specified municipality submits to the division a corrected report in
740
accordance with Subsection (7)(b)(i) and the division determines that the
741
corrected report does not comply with this section, the division shall send a
- 22 - Enrolled Copy H.B. 37
742
second notice of noncompliance to the legislative body of the specified
743
municipality within 30 days after the day on which the corrected report is
744
submitted.
745
(ii) A specified municipality that receives a second notice of noncompliance may
746
submit to the division a request for an appeal of the division's determination of
747
noncompliance within 10 days after the day on which the second notice of
748
noncompliance is sent.
749
(iii) The notice described in Subsection (7)(e)(i) shall:
750
(A) state that the specified municipality has an opportunity to submit to the
751
division a request for an appeal of the division's determination of
752
noncompliance within 10 days after the day on which the second notice of
753
noncompliance is sent; and
754
(B) state that failure to take action under Subsection (7)(e)(iii)(A) will result in the
755
specified municipality's ineligibility for funds under Subsection (9).
756
(8)(a) A specified municipality that receives a notice of noncompliance under
757
Subsection (7)(a) or (7)(e)(i) may request an appeal of the division's determination of
758
noncompliance within 10 days after the day on which the notice of noncompliance is
759
sent.
760
(b) Within 90 days after the day on which the division receives a request for an appeal,
761
an appeal board consisting of the following three members shall review and issue a
762
written decision on the appeal:
763
(i) one individual appointed by the Utah League of Cities and Towns;
764
(ii) one individual appointed by the Utah Homebuilders Association; and
765
(iii) one individual appointed by the presiding member of the association of
766
governments, established pursuant to an interlocal agreement under Title 11,
767
Chapter 13, Interlocal Cooperation Act, of which the specified municipality is a
768
member.
769
(c) The written decision of the appeal board shall either uphold or reverse the division's
770
determination of noncompliance.
771
(d) The appeal board's written decision on the appeal is final.
772
(9)(a) A specified municipality is ineligible for funds under this Subsection (9) if:
773
(i) the specified municipality fails to submit a report to the division;
774
(ii) after submitting a report to the division, the division determines that the report
775
does not comply with this section and the specified municipality fails to:
- 23 - H.B. 37 Enrolled Copy
776
(A) cure each deficiency in the report within 90 days after the day on which the
777
notice of noncompliance is sent; or
778
(B) request an appeal of the division's determination of noncompliance within 10
779
days after the day on which the notice of noncompliance is sent;
780
(iii) after submitting to the division a corrected report to cure the deficiencies in a
781
previously submitted report, the division determines that the corrected report does
782
not comply with this section and the specified municipality fails to request an
783
appeal of the division's determination of noncompliance within 10 days after the
784
day on which the second notice of noncompliance is sent; or
785
(iv) after submitting a request for an appeal under Subsection (8), the appeal board
786
issues a written decision upholding the division's determination of noncompliance.
787
(b) The following apply to a specified municipality described in Subsection (9)(a) until
788
the division provides notice under Subsection (9)(e):
789
(i) the executive director of the Department of Transportation may not program funds
790
from the Transportation Investment Fund of 2005, including the Transit
791
Transportation Investment Fund, to projects located within the boundaries of the
792
specified municipality in accordance with Subsection 72-2-124(5);
793
(ii) beginning with a report submitted in 2024, the specified municipality shall pay a
794
fee to the Olene Walker Housing Loan Fund in the amount of $250 per day that
795
the specified municipality:
796
(A) fails to submit the report to the division in accordance with this section,
797
beginning the day after the day on which the report was due; or
798
(B) fails to cure the deficiencies in the report, beginning the day after the day by
799
which the cure was required to occur as described in the notice of
800
noncompliance under Subsection (7); and
801
(iii) beginning with the report submitted in 2025, the specified municipality shall pay
802
a fee to the Olene Walker Housing Loan Fund in the amount of $500 per day that
803
the specified municipality, in a consecutive year:
804
(A) fails to submit the report to the division in accordance with this section,
805
beginning the day after the day on which the report was due; or
806
(B) fails to cure the deficiencies in the report, beginning the day after the day by
807
which the cure was required to occur as described in the notice of
808
noncompliance under Subsection (7).
809
(c) Upon determining that a specified municipality is ineligible for funds under this
- 24 - Enrolled Copy H.B. 37
810
Subsection (9), and is required to pay a fee under Subsection (9)(b), if applicable, the
811
division shall send a notice of ineligibility to the legislative body of the specified
812
municipality, the Department of Transportation, the State Tax Commission, and the
813
Governor's Office of Planning and Budget.
814
(d) The notice described in Subsection (9)(c) shall:
815
(i) name the specified municipality that is ineligible for funds;
816
(ii) describe the funds for which the specified municipality is ineligible to receive;
817
(iii) describe the fee the specified municipality is required to pay under Subsection
818
(9)(b), if applicable; and
819
(iv) state the basis for the division's determination that the specified municipality is
820
ineligible for funds.
821
(e) The division shall notify the legislative body of a specified municipality and the
822
Department of Transportation in writing if the division determines that the provisions
823
of this Subsection (9) no longer apply to the specified municipality.
824
(f) The division may not determine that a specified municipality that is required to pay a
825
fee under Subsection (9)(b) is in compliance with the reporting requirements of this
826
section until the specified municipality pays all outstanding fees required under
827
Subsection (9)(b) to the Olene Walker Housing Loan Fund, created under Title 35A,
828
Chapter 8, Part 5, Olene Walker Housing Loan Fund.
829
(10) In a civil action seeking enforcement or claiming a violation of this section or of
830
Subsection 10-9a-404(4)(c), a plaintiff may not recover damages but may be awarded
831
only injunctive or other equitable relief.
832
Section 7. Section 10-9a-535 is amended to read:
833
10-9a-535 . Moderate income housing.
834
(1) A municipality may only require the development of a certain number of moderate
835
income housing units as a condition of approval of a land use application if:
836
(a) the municipality and the applicant enter into a written agreement regarding the
837
number of moderate income housing units;[ or]
838
(b) the municipality provides incentives for an applicant who agrees to include moderate
839
income housing units in a development[.] ; or
840
(c) the municipality offers or approves, and an applicant accepts, an incentive described
841
in Section 10-9a-403.2 or 10-9a-403.3.
842
(2) If an applicant does not agree to participate in the development of moderate income
843
housing units under Subsection (1)(a) or (b), a municipality may not take into
- 25 - H.B. 37 Enrolled Copy
844
consideration the applicant's decision in the municipality's determination of whether to
845
approve or deny a land use application.
846
(3) Notwithstanding Subsections (1) and (2), a municipality that imposes a resort
847
community sales and use tax as described in Section 59-12-401, may require the
848
development of a certain number of moderate income housing units as a condition of
849
approval of a land use application if the requirement is in accordance with an ordinance
850
enacted by the municipality before January 1, 2022.
851
Section 8. Section 17-27a-102 is amended to read:
852
17-27a-102 . Purposes -- General land use authority -- Limitations.
853
(1)(a) The purposes of this chapter are to:
854
(i) provide for the health, safety, and welfare;
855
(ii) promote the prosperity;
856
(iii) improve the morals, peace, good order, comfort, convenience, and aesthetics of
857
each county and each county's present and future inhabitants and businesses;
858
(iv) protect the tax base;
859
(v) secure economy in governmental expenditures;
860
(vi) foster the state's agricultural and other industries;
861
(vii) protect both urban and nonurban development;
862
(viii) protect and ensure access to sunlight for solar energy devices;
863
(ix) provide fundamental fairness in land use regulation;
864
(x) facilitate orderly growth, [and ]allow growth in a variety of housing types, and
865
contribute toward housing affordability; and
866
(xi) protect property values.
867
(b) Subject to Subsection (4) and Section 11-41-103, to accomplish the purposes of this
868
chapter, a county may enact all ordinances, resolutions, and rules and may enter into
869
other forms of land use controls and development agreements that the county
870
considers necessary or appropriate for the use and development of land within the
871
unincorporated area of the county or a designated mountainous planning district,
872
including ordinances, resolutions, rules, restrictive covenants, easements, and
873
development agreements governing:
874
(i) uses;
875
(ii) density;
876
(iii) open spaces;
877
(iv) structures;
- 26 - Enrolled Copy H.B. 37
878
(v) buildings;
879
(vi) energy-efficiency;
880
(vii) light and air;
881
(viii) air quality;
882
(ix) transportation and public or alternative transportation;
883
(x) infrastructure;
884
(xi) street and building orientation and width requirements;
885
(xii) public facilities;
886
(xiii) fundamental fairness in land use regulation; and
887
(xiv) considerations of surrounding land uses to balance the foregoing purposes with
888
a landowner's private property interests and associated statutory and constitutional
889
protections.
890
(2) Each county shall comply with the mandatory provisions of this part before any
891
agreement or contract to provide goods, services, or municipal-type services to any
892
storage facility or transfer facility for high-level nuclear waste, or greater than class C
893
radioactive waste, may be executed or implemented.
894
(3)(a) Any ordinance, resolution, or rule enacted by a county pursuant to its authority
895
under this chapter shall comply with the state's exclusive jurisdiction to regulate oil
896
and gas activity, as described in Section 40-6-2.5.
897
(b) A county may enact an ordinance, resolution, or rule that regulates surface activity
898
incident to an oil and gas activity if the county demonstrates that the regulation:
899
(i) is necessary for the purposes of this chapter;
900
(ii) does not effectively or unduly limit, ban, or prohibit an oil and gas activity; and
901
(iii) does not interfere with the state's exclusive jurisdiction to regulate oil and gas
902
activity, as described in Section 40-6-2.5.
903
(4)(a) This Subsection (4) applies to development agreements entered into on or after
904
May 5, 2021.
905
(b) A provision in a county development agreement is unenforceable if the provision
906
requires an individual or an entity, as a condition for issuing building permits or
907
otherwise regulating development activities within an unincorporated area of the
908
county, to initiate a process for a municipality to annex the unincorporated area in
909
accordance with Title 10, Chapter 2, Part 4, Annexation.
910
(c) Subsection (4)(b) does not affect or impair the enforceability of any other provision
911
in the development agreement.
- 27 - H.B. 37 Enrolled Copy
912
Section 9. Section 17-27a-403 is amended to read:
913
17-27a-403 . General plan preparation.
914
(1)(a) The planning commission shall provide notice, as provided in Section 17-27a-203,
915
of the planning commission's intent to make a recommendation to the county
916
legislative body for a general plan or a comprehensive general plan amendment when
917
the planning commission initiates the process of preparing the planning commission's
918
recommendation.
919
(b) The planning commission shall make and recommend to the legislative body a
920
proposed general plan for:
921
(i) the unincorporated area within the county; or
922
(ii) if the planning commission is a planning commission for a mountainous planning
923
district, the mountainous planning district.
924
(c)(i) The plan may include planning for incorporated areas if, in the planning
925
commission's judgment, they are related to the planning of the unincorporated
926
territory or of the county as a whole.
927
(ii) Elements of the county plan that address incorporated areas are not an official
928
plan or part of a municipal plan for any municipality, unless the county plan is
929
recommended by the municipal planning commission and adopted by the
930
governing body of the municipality.
931
(2)(a) At a minimum, the proposed general plan, with the accompanying maps, charts,
932
and descriptive and explanatory matter, shall include the planning commission's
933
recommendations for the following plan elements:
934
(i) a land use element that:
935
(A) designates the long-term goals and the proposed extent, general distribution,
936
and location of land for housing for residents of various income levels,
937
business, industry, agriculture, recreation, education, public buildings and
938
grounds, open space, and other categories of public and private uses of land as
939
appropriate;
940
(B) includes a statement of the projections for and standards of population density
941
and building intensity recommended for the various land use categories
942
covered by the plan;
943
(C) is coordinated to integrate the land use element with the water use and
944
preservation element; and
945
(D) accounts for the effect of land use categories and land uses on water demand;
- 28 - Enrolled Copy H.B. 37
946
(ii) a transportation and traffic circulation element that:
947
(A) provides the general location and extent of existing and proposed freeways,
948
arterial and collector streets, public transit, active transportation facilities, and
949
other modes of transportation that the planning commission considers
950
appropriate;
951
(B) addresses the county's plan for residential and commercial development
952
around major transit investment corridors to maintain and improve the
953
connections between housing, employment, education, recreation, and
954
commerce; and
955
(C) correlates with the population projections, the employment projections, and
956
the proposed land use element of the general plan;
957
(iii) for a specified county as defined in Section 17-27a-408, a moderate income
958
housing element that:
959
(A) provides a realistic opportunity to meet the need for additional moderate
960
income housing within the next five years;
961
(B) selects three or more moderate income housing strategies described in [
962
Subsection (2)(b)(ii)] Subsections (2)(b)(ii)(A) through (V), or one moderate
963
income housing strategy described in Subsections (2)(b)(ii)(W) through (BB),
964
for implementation; and
965
(C) includes an implementation plan as provided in Subsection [(2)(e)] (2)(g);
966
(iv) a resource management plan detailing the findings, objectives, and policies
967
required by Subsection 17-27a-401(3); and
968
(v) a water use and preservation element that addresses:
969
(A) the effect of permitted development or patterns of development on water
970
demand and water infrastructure;
971
(B) methods of reducing water demand and per capita consumption for future
972
development;
973
(C) methods of reducing water demand and per capita consumption for existing
974
development; and
975
(D) opportunities for the county to modify the county's operations to eliminate
976
practices or conditions that waste water.
977
(b) In drafting the moderate income housing element, the planning commission:
978
(i) shall consider the Legislature's determination that counties should facilitate a
979
reasonable opportunity for a variety of housing, including moderate income
- 29 - H.B. 37 Enrolled Copy
980
housing:
981
(A) to meet the needs of people of various income levels living, working, or
982
desiring to live or work in the community; and
983
(B) to allow people with various incomes to benefit from and fully participate in
984
all aspects of neighborhood and community life; and
985
(ii) shall include an analysis of how the county will provide a realistic opportunity for
986
the development of moderate income housing within the planning horizon,
987
including a recommendation to implement three or more of the following
988
moderate income housing strategies:
989
(A) rezone for densities necessary to facilitate the production of moderate income
990
housing;
991
(B) demonstrate investment in the rehabilitation or expansion of infrastructure that
992
facilitates the construction of moderate income housing;
993
(C) demonstrate investment in the rehabilitation of existing uninhabitable housing
994
stock into moderate income housing;
995
(D) identify and utilize county general fund subsidies or other sources of revenue
996
to waive construction related fees that are otherwise generally imposed by the
997
county for the construction or rehabilitation of moderate income housing;
998
(E) create or allow for, and reduce regulations related to, internal or detached
999
accessory dwelling units in residential zones;
1000
(F) zone or rezone for higher density or moderate income residential development
1001
in commercial or mixed-use zones, commercial centers, or employment centers;
1002
(G) amend land use regulations to allow for higher density or new moderate
1003
income residential development in commercial or mixed-use zones near major
1004
transit investment corridors;
1005
(H) amend land use regulations to eliminate or reduce parking requirements for
1006
residential development where a resident is less likely to rely on the resident's
1007
own vehicle, such as residential development near major transit investment
1008
corridors or senior living facilities;
1009
(I) amend land use regulations to allow for single room occupancy developments;
1010
(J) implement zoning incentives for moderate income units in new developments;
1011
(K) preserve existing and new moderate income housing and subsidized units by
1012
utilizing a landlord incentive program, providing for deed restricted units
1013
through a grant program, or establishing a housing loss mitigation fund;
- 30 - Enrolled Copy H.B. 37
1014
(L) reduce, waive, or eliminate impact fees related to moderate income housing;
1015
(M) demonstrate creation of, or participation in, a community land trust program
1016
for moderate income housing;
1017
(N) implement a mortgage assistance program for employees of the county, an
1018
employer that provides contracted services for the county, or any other public
1019
employer that operates within the county;
1020
(O) apply for or partner with an entity that applies for state or federal funds or tax
1021
incentives to promote the construction of moderate income housing, an entity
1022
that applies for programs offered by the Utah Housing Corporation within that
1023
agency's funding capacity, an entity that applies for affordable housing
1024
programs administered by the Department of Workforce Services, an entity
1025
that applies for services provided by a public housing authority to preserve and
1026
create moderate income housing, or any other entity that applies for programs
1027
or services that promote the construction or preservation of moderate income
1028
housing;
1029
(P) demonstrate utilization of a moderate income housing set aside from a
1030
community reinvestment agency, redevelopment agency, or community
1031
development and renewal agency to create or subsidize moderate income
1032
housing;
1033
[(Q) create a housing and transit reinvestment zone pursuant to Title 63N, Chapter
1034
3, Part 6, Housing and Transit Reinvestment Zone Act;]
1035
[(R) create a home ownership promotion zone pursuant to Part 12, Home
1036
Ownership Promotion Zone for Counties;]
1037
[(S)] (Q) eliminate impact fees for any accessory dwelling unit that is not an
1038
internal accessory dwelling unit as defined in Section 10-9a-530;
1039
[(T)] (R) create a program to transfer development rights for moderate income
1040
housing;
1041
[(U)] (S) ratify a joint acquisition agreement with another local political
1042
subdivision for the purpose of combining resources to acquire property for
1043
moderate income housing;
1044
[(V)] (T) develop a moderate income housing project for residents who are
1045
disabled or 55 years old or older;
1046
[(W)] (U) create or allow for, and reduce regulations related to, multifamily
1047
residential dwellings compatible in scale and form with detached single-family
- 31 - H.B. 37 Enrolled Copy
1048
residential dwellings and located in walkable communities within residential or
1049
mixed-use zones;[ and]
1050
[(X)] (V) demonstrate implementation of any other program or strategy to address
1051
the housing needs of residents of the county who earn less than 80% of the area
1052
median income, including the dedication of a local funding source to moderate
1053
income housing or the adoption of a land use ordinance that requires 10% or
1054
more of new residential development in a residential zone be dedicated to
1055
moderate income housing[.] ;
1056
(W) create a housing and transit reinvestment zone pursuant to Title 63N, Chapter
1057
3, Part 6, Housing and Transit Reinvestment Zone Act;
1058
(X) create a home ownership investment zone in accordance with Part 12, Home
1059
Ownership Promotion Zone for Counties;
1060
(Y) create a first home investment zone in accordance with Title 63N, Chapter 3,
1061
Part 16, First Home Investment Zone Act;
1062
(Z) approve a project that receives funding from, or qualifies to receive funding
1063
from, the Utah Homes Investment Program created in Title 51, Chapter 12,
1064
Utah Homes Investment Program;
1065
(AA) adopt or approve an affordable home ownership density bonus for
1066
single-family residential units, as described in Section 17-27a-403.1; and
1067
(BB) adopt or approve an affordable home ownership density bonus for
1068
multi-family residential units, as described in Section 17-27a-403.2.
1069
(c) If a specified county, as defined in Section 17-27a-408, has created a small public
1070
transit district, as defined in Section 17B-2a-802, on or before January 1, 2022, the
1071
specified county shall include as part of the specified county's recommended
1072
strategies under Subsection (2)(b)(ii) a recommendation to implement the strategy
1073
described in Subsection [(2)(b)(ii)(Q)] (2)(b)(ii)(W).
1074
(d) The planning commission shall identify each moderate income housing strategy
1075
recommended to the legislative body for implementation by restating the exact
1076
language used to describe the strategy in Subsection (2)(b)(ii).
1077
(e) In drafting the land use element, the planning commission shall:
1078
(i) identify and consider each agriculture protection area within the unincorporated
1079
area of the county or mountainous planning district;
1080
(ii) avoid proposing a use of land within an agriculture protection area that is
1081
inconsistent with or detrimental to the use of the land for agriculture; and
- 32 - Enrolled Copy H.B. 37
1082
(iii) consider and coordinate with any station area plans adopted by municipalities
1083
located within the county under Section 10-9a-403.1.
1084
(f) In drafting the transportation and traffic circulation element, the planning
1085
commission shall:
1086
(i)(A) consider and coordinate with the regional transportation plan developed by
1087
the county's region's metropolitan planning organization, if the relevant areas
1088
of the county are within the boundaries of a metropolitan planning
1089
organization; or
1090
(B) consider and coordinate with the long-range transportation plan developed by
1091
the Department of Transportation, if the relevant areas of the county are not
1092
within the boundaries of a metropolitan planning organization; and
1093
(ii) consider and coordinate with any station area plans adopted by municipalities
1094
located within the county under Section 10-9a-403.1.
1095
(g)(i) In drafting the implementation plan portion of the moderate income housing
1096
element as described in Subsection (2)(a)(iii)(C), the planning commission shall
1097
recommend to the legislative body the establishment of a five-year timeline for
1098
implementing each of the moderate income housing strategies selected by the
1099
county for implementation.
1100
(ii) The timeline described in Subsection (2)(g)(i) shall:
1101
(A) identify specific measures and benchmarks for implementing each moderate
1102
income housing strategy selected by the county; and
1103
(B) provide flexibility for the county to make adjustments as needed.
1104
(h) In drafting the water use and preservation element, the planning commission:
1105
(i) shall consider applicable regional water conservation goals recommended by the
1106
Division of Water Resources;
1107
(ii) shall consult with the Division of Water Resources for information and technical
1108
resources regarding regional water conservation goals, including how
1109
implementation of the land use element and water use and preservation element
1110
may affect the Great Salt Lake;
1111
(iii) shall notify the community water systems serving drinking water within the
1112
unincorporated portion of the county and request feedback from the community
1113
water systems about how implementation of the land use element and water use
1114
and preservation element may affect:
1115
(A) water supply planning, including drinking water source and storage capacity
- 33 - H.B. 37 Enrolled Copy
1116
consistent with Section 19-4-114; and
1117
(B) water distribution planning, including master plans, infrastructure asset
1118
management programs and plans, infrastructure replacement plans, and impact
1119
fee facilities plans;
1120
(iv) shall consider the potential opportunities and benefits of planning for
1121
regionalization of public water systems;
1122
(v) shall consult with the Department of Agriculture and Food for information and
1123
technical resources regarding the potential benefits of agriculture conservation
1124
easements and potential implementation of agriculture water optimization projects
1125
that would support regional water conservation goals;
1126
(vi) shall notify an irrigation or canal company located in the county so that the
1127
irrigation or canal company can be involved in the protection and integrity of the
1128
irrigation or canal company's delivery systems;
1129
(vii) shall include a recommendation for:
1130
(A) water conservation policies to be determined by the county; and
1131
(B) landscaping options within a public street for current and future development
1132
that do not require the use of lawn or turf in a parkstrip;
1133
(viii) shall review the county's land use ordinances and include a recommendation for
1134
changes to an ordinance that promotes the inefficient use of water;
1135
(ix) shall consider principles of sustainable landscaping, including the:
1136
(A) reduction or limitation of the use of lawn or turf;
1137
(B) promotion of site-specific landscape design that decreases stormwater runoff
1138
or runoff of water used for irrigation;
1139
(C) preservation and use of healthy trees that have a reasonable water requirement
1140
or are resistant to dry soil conditions;
1141
(D) elimination or regulation of ponds, pools, and other features that promote
1142
unnecessary water evaporation;
1143
(E) reduction of yard waste; and
1144
(F) use of an irrigation system, including drip irrigation, best adapted to provide
1145
the optimal amount of water to the plants being irrigated;
1146
(x) may include recommendations for additional water demand reduction strategies,
1147
including:
1148
(A) creating a water budget associated with a particular type of development;
1149
(B) adopting new or modified lot size, configuration, and landscaping standards
- 34 - Enrolled Copy H.B. 37
1150
that will reduce water demand for new single family development;
1151
(C) providing one or more water reduction incentives for existing landscapes and
1152
irrigation systems and installation of water fixtures or systems that minimize
1153
water demand;
1154
(D) discouraging incentives for economic development activities that do not
1155
adequately account for water use or do not include strategies for reducing
1156
water demand; and
1157
(E) adopting water concurrency standards requiring that adequate water supplies
1158
and facilities are or will be in place for new development; and
1159
(xi) shall include a recommendation for low water use landscaping standards for a
1160
new:
1161
(A) commercial, industrial, or institutional development;
1162
(B) common interest community, as defined in Section 57-25-102; or
1163
(C) multifamily housing project.
1164
(3) The proposed general plan may include:
1165
(a) an environmental element that addresses:
1166
(i) to the extent not covered by the county's resource management plan, the
1167
protection, conservation, development, and use of natural resources, including the
1168
quality of:
1169
(A) air;
1170
(B) forests;
1171
(C) soils;
1172
(D) rivers;
1173
(E) groundwater and other waters;
1174
(F) harbors;
1175
(G) fisheries;
1176
(H) wildlife;
1177
(I) minerals; and
1178
(J) other natural resources; and
1179
(ii)(A) the reclamation of land, flood control, prevention and control of the
1180
pollution of streams and other waters;
1181
(B) the regulation of the use of land on hillsides, stream channels and other
1182
environmentally sensitive areas;
1183
(C) the prevention, control, and correction of the erosion of soils;
- 35 - H.B. 37 Enrolled Copy
1184
(D) the preservation and enhancement of watersheds and wetlands; and
1185
(E) the mapping of known geologic hazards;
1186
(b) a public services and facilities element showing general plans for sewage, water,
1187
waste disposal, drainage, public utilities, rights-of-way, easements, and facilities for
1188
them, police and fire protection, and other public services;
1189
(c) a rehabilitation, redevelopment, and conservation element consisting of plans and
1190
programs for:
1191
(i) historic preservation;
1192
(ii) the diminution or elimination of a development impediment as defined in Section
1193
17C-1-102; and
1194
(iii) redevelopment of land, including housing sites, business and industrial sites, and
1195
public building sites;
1196
(d) an economic element composed of appropriate studies and forecasts, as well as an
1197
economic development plan, which may include review of existing and projected
1198
county revenue and expenditures, revenue sources, identification of basic and
1199
secondary industry, primary and secondary market areas, employment, and retail
1200
sales activity;
1201
(e) recommendations for implementing all or any portion of the general plan, including
1202
the adoption of land and water use ordinances, capital improvement plans,
1203
community development and promotion, and any other appropriate action;
1204
(f) provisions addressing any of the matters listed in Subsection 17-27a-401(2) or
1205
(3)(a)(i); and
1206
(g) any other element the county considers appropriate.
1207
Section 10. Section 17-27a-403.1 is enacted to read:
1208
17-27a-403.1 . Affordable home ownership density bonus for single-family
1209
residential units.
1210
(1) As used in this section:
1211
(a) "Affordable housing" means the same as that term is defined in Section 10-9a-403.2.
1212
(b) "Owner-occupier" means the same as that term is defined in Section 10-9a-403.2.
1213
(c) "Qualifying affordable home ownership single-family density bonus" means:
1214
(i) for an area with an underlying zoning density of less than six residential units per
1215
acre, county approval of a density at least six residential units per acre; or
1216
(ii) for an area with an underlying zoning density of six residential units per acre or
1217
more, county approval of a density at least 0.5 residential units per acre greater
- 36 - Enrolled Copy H.B. 37
1218
than the underlying zoning density for the area.
1219
(2) If a county approves a qualifying affordable home ownership single-family density
1220
bonus, either through a zoning ordinance or a development agreement, the county may
1221
adopt requirements for the qualifying affordable home ownership single-family density
1222
bonus area to ensure:
1223
(a) at least 60% of the total single-family residential units be deed-restricted to
1224
owner-occupancy for at least five years;
1225
(b) at least 25% of the total single-family residential units qualify as affordable housing;
1226
(c) at least 25% of the single-family residential units per acre to be no larger than 1,600
1227
square feet; or
1228
(d) the applicant creates a preferential qualifying buyer program in which a
1229
single-family residential unit is initially offered for sale, for up to 30 days, to a
1230
category of preferred qualifying buyers established by the county, in accordance with
1231
provisions of the Fair Housing Act, 42 U.S.C. Sec. 3601.
1232
(3) A county may offer additional incentives in a qualifying affordable home ownership
1233
single-family density bonus area approved for single-family residential units to promote
1234
owner-occupied, affordable housing.
1235
Section 11. Section 17-27a-403.2 is enacted to read:
1236
17-27a-403.2 . Affordable home ownership density bonus for multi-family
1237
residential units.
1238
(1) As used in this section:
1239
(a) "Affordable housing" means the same as that term is defined in Section 10-9a-403.2.
1240
(b) "Owner-occupier" means the same as that term is defined in Section 10-9a-403.2.
1241
(c) "Qualifying affordable home ownership multi-family density bonus" means county
1242
approval of a density of at least 20 residential units per acre.
1243
(2) If a county approves a qualifying affordable home ownership multi-family density
1244
bonus, either through a zoning ordinance or a development agreement, the county may
1245
adopt requirements for the qualifying affordable home ownership multi-family density
1246
bonus area to ensure:
1247
(a) at least 20% more residential units per acre than are otherwise allowed in the area;
1248
(b) at least 60% of the total units in the multi-family residential building be
1249
deed-restricted to owner-occupancy for at least five years;
1250
(c) at least 25% of the total units in the multi-family residential building qualify as
1251
affordable housing;
- 37 - H.B. 37 Enrolled Copy
1252
(d) at least 25% of the total units in a multi-family residential building to be no larger
1253
than 1,600 square feet; or
1254
(e) the applicant creates a preferential qualifying buyer program in which a unit in a
1255
multi-family residential building is initially offered for sale, for up to 30 days, to a
1256
category of preferred qualifying buyers established by the county, in accordance with
1257
provisions of the Fair Housing Act, 42 U.S.C. Sec. 3601.
1258
(3) A county may offer additional incentives in a qualifying affordable home ownership
1259
multi-family density bonus area for multi-family residential units to promote
1260
owner-occupied, affordable housing.
1261
Section 12. Section 17-27a-408 is amended to read:
1262
17-27a-408 . Moderate income housing report -- Contents -- Prioritization for
1263
funds or projects -- Ineligibility for funds after noncompliance -- Civil actions.
1264
(1) As used in this section:
1265
(a) "Division" means the Housing and Community Development Division within the
1266
Department of Workforce Services.
1267
(b) "Implementation plan" means the implementation plan adopted as part of the
1268
moderate income housing element of a specified county's general plan as provided in
1269
Subsection 17-27a-403(2)(g).
1270
(c) "Initial report" means the one-time moderate income housing report described in
1271
Subsection (2).
1272
(d) "Moderate income housing strategy" means a strategy described in Subsection
1273
17-27a-403(2)(b)(ii).
1274
(e) "Report" means an initial report or a subsequent report.
1275
(f) "Specified county" means a county of the first, second, or third class, which has a
1276
population of more than 5,000 in the county's unincorporated areas.
1277
(g) "Subsequent progress report" means the annual moderate income housing report
1278
described in Subsection (3).
1279
(2)(a) The legislative body of a specified county shall annually submit an initial report to
1280
the division.
1281
(b)(i) This Subsection (2)(b) applies to a county that is not a specified county as of
1282
January 1, 2023.
1283
(ii) As of January 1, if a county described in Subsection (2)(b)(i) changes from one
1284
class to another or grows in population to qualify as a specified county, the county
1285
shall submit an initial plan to the division on or before August 1 of the first
- 38 - Enrolled Copy H.B. 37
1286
calendar year beginning on January 1 in which the county qualifies as a specified
1287
county.
1288
(c) The initial report shall:
1289
(i) identify each moderate income housing strategy selected by the specified county
1290
for continued, ongoing, or one-time implementation, using the exact language
1291
used to describe the moderate income housing strategy in Subsection 17-27a-403
1292
(2)(b)(ii); and
1293
(ii) include an implementation plan.
1294
(3)(a) After the division approves a specified county's initial report under this section,
1295
the specified county shall, as an administrative act, annually submit to the division a
1296
subsequent progress report on or before August 1 of each year after the year in which
1297
the specified county is required to submit the initial report.
1298
(b) The subsequent progress report shall include:
1299
(i) subject to Subsection (3)(c), a description of each action, whether one-time or
1300
ongoing, taken by the specified county during the previous 12-month period to
1301
implement the moderate income housing strategies identified in the initial report
1302
for implementation;
1303
(ii) a description of each land use regulation or land use decision made by the
1304
specified county during the previous 12-month period to implement the moderate
1305
income housing strategies, including an explanation of how the land use
1306
regulation or land use decision supports the specified county's efforts to
1307
implement the moderate income housing strategies;
1308
(iii) a description of any barriers encountered by the specified county in the previous
1309
12-month period in implementing the moderate income housing strategies;
1310
(iv) the number of residential dwelling units that have been entitled that have not
1311
received a building permit as of the submission date of the progress report;
1312
(v) shapefiles, or website links if shapefiles are not available, to current maps and
1313
tables related to zoning;
1314
(vi) information regarding the number of internal and external or detached accessory
1315
dwelling units located within the specified county for which the specified county:
1316
(A) issued a building permit to construct; or
1317
(B) issued a business license or comparable license or permit to rent;
1318
(vii) a description of how the market has responded to the selected moderate income
1319
housing strategies, including the number of entitled moderate income housing
- 39 - H.B. 37 Enrolled Copy
1320
units or other relevant data; and
1321
(viii) any recommendations on how the state can support the specified county in
1322
implementing the moderate income housing strategies.
1323
(c) For purposes of describing actions taken by a specified county under Subsection
1324
(3)(b)(i), the specified county may include an ongoing action taken by the specified
1325
county prior to the 12-month reporting period applicable to the subsequent progress
1326
report if the specified county:
1327
(i) has already adopted an ordinance, approved a land use application, made an
1328
investment, or approved an agreement or financing that substantially promotes the
1329
implementation of a moderate income housing strategy identified in the initial
1330
report; and
1331
(ii) demonstrates in the subsequent progress report that the action taken under
1332
Subsection (3)(c)(i) is relevant to making meaningful progress towards the
1333
specified county's implementation plan.
1334
(d) A specified county's report shall be in a form:
1335
(i) approved by the division; and
1336
(ii) made available by the division on or before May 1 of the year in which the report
1337
is required.
1338
(4) Within 90 days after the day on which the division receives a specified county's report,
1339
the division shall:
1340
(a) post the report on the division's website;
1341
(b) send a copy of the report to the Department of Transportation, the Governor's Office
1342
of Planning and Budget, the association of governments in which the specified
1343
county is located, and, if the unincorporated area of the specified county is located
1344
within the boundaries of a metropolitan planning organization, the appropriate
1345
metropolitan planning organization; and
1346
(c) subject to Subsection (5), review the report to determine compliance with this section.
1347
(5)(a) An initial report [does not comply] complies with this section [unless] if the report:
1348
(i) includes the information required under Subsection (2)(c);
1349
(ii) subject to Subsection (5)(c), demonstrates to the division that the specified county
1350
made plans to implement three or more moderate income housing strategies
1351
described in Subsection 17-27a-403(2)(b)(ii)(A) though (V) or at least one
1352
moderate income housing strategy described in Subsections
1353
17-27a-403(2)(b)(ii)(W) through (BB); and
- 40 - Enrolled Copy H.B. 37
1354
(iii) is in a form approved by the division.
1355
(b) A subsequent progress report [does not comply] complies with this section [unless] if
1356
the report:
1357
(i) subject to Subsection (5)(c), demonstrates to the division that the specified county
1358
made plans to implement or is implementing three or more moderate income
1359
housing strategies described in Subsection 17-27a-403(2)(b)(ii)(A) though (V) or
1360
at least one moderate income housing strategy described in Subsections
1361
17-27a-403(2)(b)(ii)(W) through (BB);
1362
(ii) is in a form approved by the division; and
1363
(iii) provides sufficient information for the division to:
1364
(A) assess the specified county's progress in implementing the moderate income
1365
housing strategies;
1366
(B) monitor compliance with the specified county's implementation plan;
1367
(C) identify a clear correlation between the specified county's land use decisions
1368
and efforts to implement the moderate income housing strategies;
1369
(D) identify how the market has responded to the specified county's selected
1370
moderate income housing strategies; and
1371
(E) identify any barriers encountered by the specified county in implementing the
1372
selected moderate income housing strategies.
1373
(c)(i) This Subsection (5)(c) applies to a specified county that has created a small
1374
public transit district, as defined in Section 17B-2a-802, on or before January 1,
1375
2022.
1376
(ii) [In addition to the requirements of Subsections (5)(a) and (b), a ] A report for a
1377
specified county described in Subsection (5)(c)(i) [does not comply] complies with
1378
this section [unless] if the report demonstrates to the division that the specified
1379
county:
1380
(A) made plans to implement the moderate income housing strategy described in
1381
Subsection [17-27a-403(2)(b)(ii)(Q)] 17-27a-403(2)(b)(ii)(W);[ and]
1382
(B) made plans to implement or is implementing three or more moderate income
1383
housing strategies described in Subsection 17-27a-403(2)(b)(ii)(A) though (V)
1384
or at least one moderate income housing strategy described in Subsections
1385
17-27a-403(2)(b)(ii)(W) through (BB); and
1386
[(B)] (C) is in compliance with Subsection 63N-3-603(8).
1387
(d) If a specified county initial report or subsequent progress report demonstrates the
- 41 - H.B. 37 Enrolled Copy
1388
county plans to implement or is implementing at least one moderate income housing
1389
strategy described in Subsections 17-27a-403(2)(b)(ii)(W) through (BB), the division
1390
shall also consider the specified county compliant with the reporting requirement
1391
described in this section for:
1392
(i) the year in which the specified county submits the report; and
1393
(ii) two subsequent reporting years.
1394
(6)(a) A specified county qualifies for priority consideration under this Subsection (6) if
1395
the specified county's report:
1396
(i) complies with this section; and
1397
(ii) demonstrates to the division that the specified county made plans to implement
1398
five or more moderate income housing strategies.
1399
(b) The Transportation Commission may, in accordance with Subsection 72-1-304(3)(c),
1400
give priority consideration to transportation projects located within the
1401
unincorporated areas of a specified county described in Subsection (6)(a) until the
1402
Department of Transportation receives notice from the division under Subsection
1403
(6)(e).
1404
(c) Upon determining that a specified county qualifies for priority consideration under
1405
this Subsection (6), the division shall send a notice of prioritization to the legislative
1406
body of the specified county and the Department of Transportation.
1407
(d) The notice described in Subsection (6)(c) shall:
1408
(i) name the specified county that qualifies for priority consideration;
1409
(ii) describe the funds or projects for which the specified county qualifies to receive
1410
priority consideration; and
1411
(iii) state the basis for the division's determination that the specified county qualifies
1412
for priority consideration.
1413
(e) The division shall notify the legislative body of a specified county and the
1414
Department of Transportation in writing if the division determines that the specified
1415
county no longer qualifies for priority consideration under this Subsection (6).
1416
(7)(a) If the division, after reviewing a specified county's report, determines that the
1417
report does not comply with this section, the division shall send a notice of
1418
noncompliance to the legislative body of the specified county.
1419
(b) A specified county that receives a notice of noncompliance may:
1420
(i) cure each deficiency in the report within 90 days after the day on which the notice
1421
of noncompliance is sent; or
- 42 - Enrolled Copy H.B. 37
1422
(ii) request an appeal of the division's determination of noncompliance within 10
1423
days after the day on which the notice of noncompliance is sent.
1424
(c) The notice described in Subsection (7)(a) shall:
1425
(i) describe each deficiency in the report and the actions needed to cure each
1426
deficiency;
1427
(ii) state that the specified county has an opportunity to:
1428
(A) submit to the division a corrected report that cures each deficiency in the
1429
report within 90 days after the day on which the notice of noncompliance is
1430
sent; or
1431
(B) submit to the division a request for an appeal of the division's determination of
1432
noncompliance within 10 days after the day on which the notice of
1433
noncompliance is sent; and
1434
(iii) state that failure to take action under Subsection (7)(c)(ii) will result in the
1435
specified county's ineligibility for funds and fees owed under Subsection (9).
1436
(d) For purposes of curing the deficiencies in a report under this Subsection (7), if the
1437
action needed to cure the deficiency as described by the division requires the
1438
specified county to make a legislative change, the specified county may cure the
1439
deficiency by making that legislative change within the 90-day cure period.
1440
(e)(i) If a specified county submits to the division a corrected report in accordance
1441
with Subsection (7)(b)(i), and the division determines that the corrected report
1442
does not comply with this section, the division shall send a second notice of
1443
noncompliance to the legislative body of the specified county.
1444
(ii) A specified county that receives a second notice of noncompliance may request
1445
an appeal of the division's determination of noncompliance within 10 days after
1446
the day on which the second notice of noncompliance is sent.
1447
(iii) The notice described in Subsection (7)(e)(i) shall:
1448
(A) state that the specified county has an opportunity to submit to the division a
1449
request for an appeal of the division's determination of noncompliance within
1450
10 days after the day on which the second notice of noncompliance is sent; and
1451
(B) state that failure to take action under Subsection (7)(e)(iii)(A) will result in the
1452
specified county's ineligibility for funds under Subsection (9).
1453
(8)(a) A specified county that receives a notice of noncompliance under Subsection (7)(a)
1454
or (7)(e)(i) may request an appeal of the division's determination of noncompliance
1455
within 10 days after the day on which the notice of noncompliance is sent.
- 43 - H.B. 37 Enrolled Copy
1456
(b) Within 90 days after the day on which the division receives a request for an appeal,
1457
an appeal board consisting of the following three members shall review and issue a
1458
written decision on the appeal:
1459
(i) one individual appointed by the Utah Association of Counties;
1460
(ii) one individual appointed by the Utah Homebuilders Association; and
1461
(iii) one individual appointed by the presiding member of the association of
1462
governments, established pursuant to an interlocal agreement under Title 11,
1463
Chapter 13, Interlocal Cooperation Act, of which the specified county is a member.
1464
(c) The written decision of the appeal board shall either uphold or reverse the division's
1465
determination of noncompliance.
1466
(d) The appeal board's written decision on the appeal is final.
1467
(9)(a) A specified county is ineligible for funds and owes a fee under this Subsection (9)
1468
if:
1469
(i) the specified county fails to submit a report to the division;
1470
(ii) after submitting a report to the division, the division determines that the report
1471
does not comply with this section and the specified county fails to:
1472
(A) cure each deficiency in the report within 90 days after the day on which the
1473
notice of noncompliance is sent; or
1474
(B) request an appeal of the division's determination of noncompliance within 10
1475
days after the day on which the notice of noncompliance is sent;
1476
(iii) after submitting to the division a corrected report to cure the deficiencies in a
1477
previously submitted report, the division determines that the corrected report does
1478
not comply with this section and the specified county fails to request an appeal of
1479
the division's determination of noncompliance within 10 days after the day on
1480
which the second notice of noncompliance is sent; or
1481
(iv) after submitting a request for an appeal under Subsection (8), the appeal board
1482
issues a written decision upholding the division's determination of noncompliance.
1483
(b) The following apply to a specified county described in Subsection (9)(a) until the
1484
division provides notice under Subsection (9)(e):
1485
(i) the executive director of the Department of Transportation may not program funds
1486
from the Transportation Investment Fund of 2005, including the Transit
1487
Transportation Investment Fund, to projects located within the unincorporated
1488
areas of the specified county in accordance with Subsection 72-2-124(6);
1489
(ii) beginning with the report submitted in 2024, the specified county shall pay a fee
- 44 - Enrolled Copy H.B. 37
1490
to the Olene Walker Housing Loan Fund in the amount of $250 per day that the
1491
specified county:
1492
(A) fails to submit the report to the division in accordance with this section,
1493
beginning the day after the day on which the report was due; or
1494
(B) fails to cure the deficiencies in the report, beginning the day after the day by
1495
which the cure was required to occur as described in the notice of
1496
noncompliance under Subsection (7); and
1497
(iii) beginning with the report submitted in 2025, the specified county shall pay a fee
1498
to the Olene Walker Housing Loan Fund in the amount of $500 per day that the
1499
specified county, for a consecutive year:
1500
(A) fails to submit the report to the division in accordance with this section,
1501
beginning the day after the day on which the report was due; or
1502
(B) fails to cure the deficiencies in the report, beginning the day after the day by
1503
which the cure was required to occur as described in the notice of
1504
noncompliance under Subsection (7).
1505
(c) Upon determining that a specified county is ineligible for funds under this
1506
Subsection (9), and is required to pay a fee under Subsection (9)(b), if applicable, the
1507
division shall send a notice of ineligibility to the legislative body of the specified
1508
county, the Department of Transportation, the State Tax Commission, and the
1509
Governor's Office of Planning and Budget.
1510
(d) The notice described in Subsection (9)(c) shall:
1511
(i) name the specified county that is ineligible for funds;
1512
(ii) describe the funds for which the specified county is ineligible to receive;
1513
(iii) describe the fee the specified county is required to pay under Subsection (9)(b),
1514
if applicable; and
1515
(iv) state the basis for the division's determination that the specified county is
1516
ineligible for funds.
1517
(e) The division shall notify the legislative body of a specified county and the
1518
Department of Transportation in writing if the division determines that the provisions
1519
of this Subsection (9) no longer apply to the specified county.
1520
(f) The division may not determine that a specified county that is required to pay a fee
1521
under Subsection (9)(b) is in compliance with the reporting requirements of this
1522
section until the specified county pays all outstanding fees required under Subsection
1523
(9)(b) to the Olene Walker Housing Loan Fund, created under Title 35A, Chapter 8,
- 45 - H.B. 37 Enrolled Copy
1524
Part 5, Olene Walker Housing Loan Fund.
1525
(10) In a civil action seeking enforcement or claiming a violation of this section or of
1526
Subsection 17-27a-404(5)(c), a plaintiff may not recover damages but may be awarded
1527
only injunctive or other equitable relief.
1528
Section 13. Section 17-27a-531 is amended to read:
1529
17-27a-531 . Moderate income housing.
1530
(1) A county may only require the development of a certain number of moderate income
1531
housing units as a condition of approval of a land use application if:
1532
(a) the county and the applicant enter into a written agreement regarding the number of
1533
moderate income housing units;[ or]
1534
(b) the county provides incentives for an applicant who agrees to include moderate
1535
income housing units in a development[.] ; or
1536
(c) the county offers or approves, and an applicant accepts, an incentive described in
1537
Section 17-27a-403.1 or 17-27a-403.2.
1538
(2) If an applicant does not agree to participate in the development of moderate income
1539
housing units under Subsection (1)(a) or (b), a county may not take into consideration
1540
the applicant's decision in the county's determination of whether to approve or deny a
1541
land use application.
1542
(3) Notwithstanding Subsections (1) and (2), a county of the third class, which has a ski
1543
resort located within the unincorporated area of the county, may require the
1544
development of a certain number of moderate income housing units as a condition of
1545
approval of a land use application if the requirement is in accordance with an ordinance
1546
enacted by the county before January 1, 2022.
1547
Section 14. Section 17B-1-202 is amended to read:
1548
17B-1-202 . Special district may be created -- Services that may be provided --
1549
Limitations.
1550
(1)(a) A special district may be created as provided in this part to provide within its
1551
boundaries service consisting of:
1552
(i) the operation of an airport;
1553
(ii) the operation of a cemetery;
1554
(iii) fire protection, paramedic, and emergency services, including consolidated 911
1555
and emergency dispatch services;
1556
(iv) garbage collection and disposal;
1557
(v) health care, including health department or hospital service;
- 46 - Enrolled Copy H.B. 37
1558
(vi) the operation of a library;
1559
(vii) abatement or control of mosquitos and other insects;
1560
(viii) the operation of parks or recreation facilities or services;
1561
(ix) the operation of a sewage system;
1562
(x) the operation of a propane system;
1563
[(x)] (xi) the construction and maintenance of a right-of-way, including:
1564
(A) a curb;
1565
(B) a gutter;
1566
(C) a sidewalk;
1567
(D) a street;
1568
(E) a road;
1569
(F) a water line;
1570
(G) a sewage line;
1571
(H) a storm drain;
1572
(I) an electricity line;
1573
(J) a communications line;
1574
(K) a natural gas line; or
1575
(L) street lighting;
1576
[(xi)] (xii) transportation, including public transit and providing streets and roads;
1577
[(xii)] (xiii) the operation of a system, or one or more components of a system, for the
1578
collection, storage, retention, control, conservation, treatment, supplying,
1579
distribution, or reclamation of water, including storm, flood, sewage, irrigation,
1580
and culinary water, whether the system is operated on a wholesale or retail level
1581
or both;
1582
[(xiii)] (xiv) in accordance with Subsection (1)(c), the acquisition or assessment of a
1583
groundwater right for the development and execution of a groundwater
1584
management plan in cooperation with and approved by the state engineer in
1585
accordance with Section 73-5-15;
1586
[(xiv)] (xv) law enforcement service;
1587
[(xv)] (xvi) subject to Subsection (1)(b), the underground installation of an electric
1588
utility line or the conversion to underground of an existing electric utility line;
1589
[(xvi)] (xvii) the control or abatement of earth movement or a landslide;
1590
[(xvii)] (xviii) the operation of animal control services and facilities;
1591
[(xviii)] (xix) an energy efficiency upgrade, a clean energy system, or electric vehicle
- 47 - H.B. 37 Enrolled Copy
1592
charging infrastructure as defined in Section 11-42a-102, in accordance with Title
1593
11, Chapter 42a, Commercial Property Assessed Clean Energy Act; or
1594
[(xix)] (xx) the financing of infrastructure, as provided in Chapter 2a, Part 13,
1595
Infrastructure Financing Districts.
1596
(b) Each special district that provides the service of the underground installation of an
1597
electric utility line or the conversion to underground of an existing electric utility line
1598
shall, in installing or converting the line, provide advance notice to and coordinate
1599
with the utility that owns the line.
1600
(c) A groundwater management plan described in Subsection [(1)(a)(xiii)] (1)(a)(xiv)
1601
may include the banking of groundwater rights by a special district in a critical
1602
management area as defined in Section 73-5-15 following the adoption of a
1603
groundwater management plan by the state engineer under Section 73-5-15.
1604
(i) A special district may manage the groundwater rights it acquires under Subsection
1605
17B-1-103(2)(a) or (b) consistent with the provisions of a groundwater
1606
management plan described in this Subsection (1)(c).
1607
(ii) A groundwater right held by a special district to satisfy the provisions of a
1608
groundwater management plan is not subject to the forfeiture provisions of
1609
Section 73-1-4.
1610
(iii)(A) A special district may divest itself of a groundwater right subject to a
1611
determination that the groundwater right is not required to facilitate the
1612
groundwater management plan described in this Subsection (1)(c).
1613
(B) The groundwater right described in Subsection (1)(c)(iii)(A) is subject to
1614
Section 73-1-4 beginning on the date of divestiture.
1615
(iv) Upon a determination by the state engineer that an area is no longer a critical
1616
management area as defined in Section 73-5-15, a groundwater right held by the
1617
special district is subject to Section 73-1-4.
1618
(v) A special district created in accordance with Subsection [(1)(a)(xiii)] (1)(a)(xiv) to
1619
develop and execute a groundwater management plan may hold or acquire a right
1620
to surface waters that are naturally tributary to the groundwater basin subject to
1621
the groundwater management plan if the surface waters are appropriated in
1622
accordance with Title 73, Water and Irrigation, and used in accordance with Title
1623
73, Chapter 3b, Groundwater Recharge and Recovery Act.
1624
(2) As used in this section:
1625
(a) "Operation" means all activities involved in providing the indicated service including
- 48 - Enrolled Copy H.B. 37
1626
acquisition and ownership of property reasonably necessary to provide the indicated
1627
service and acquisition, construction, and maintenance of facilities and equipment
1628
reasonably necessary to provide the indicated service.
1629
(b) "System" means the aggregate of interrelated components that combine together to
1630
provide the indicated service including, for a sewage system, collection and treatment.
1631
(3)(a) A special district may not be created to provide and may not after its creation
1632
provide more than four of the services listed in Subsection (1).
1633
(b) Subsection (3)(a) may not be construed to prohibit a special district from providing
1634
more than four services if, before April 30, 2007, the special district was authorized
1635
to provide those services.
1636
(4)(a) Except as provided in Subsection (4)(b), a special district may not be created to
1637
provide and may not after its creation provide to an area the same service that may
1638
already be provided to that area by another political subdivision, unless the other
1639
political subdivision gives its written consent.
1640
(b) For purposes of Subsection (4)(a), a special district does not provide the same
1641
service as another political subdivision if it operates a component of a system that is
1642
different from a component operated by another political subdivision but within the
1643
same:
1644
(i) sewage system; or
1645
(ii) water system.
1646
(5)(a) Except for a special district in the creation of which an election is not required
1647
under Subsection 17B-1-214(3)(d), the area of a special district may include all or
1648
part of the unincorporated area of one or more counties and all or part of one or more
1649
municipalities.
1650
(b) The area of a special district need not be contiguous.
1651
(6) For a special district created before May 5, 2008, the authority to provide fire protection
1652
service also includes the authority to provide:
1653
(a) paramedic service; and
1654
(b) emergency service, including hazardous materials response service.
1655
(7) A special district created before May 11, 2010, authorized to provide the construction
1656
and maintenance of curb, gutter, or sidewalk may provide a service described in
1657
Subsection [(1)(a)(x)] (1)(a)(xi) on or after May 11, 2010.
1658
(8) A special district created before May 10, 2011, authorized to provide culinary,
1659
irrigation, sewage, or storm water services may provide a service described in
- 49 - H.B. 37 Enrolled Copy
1660
Subsection [(1)(a)(xii)] (1)(a)(xiii) on or after May 10, 2011.
1661
(9) A special district may not be created under this chapter for two years after the date on
1662
which a special district is dissolved as provided in Section 17B-1-217 if the special
1663
district proposed for creation:
1664
(a) provides the same or a substantially similar service as the dissolved special district;
1665
and
1666
(b) is located in substantially the same area as the dissolved special district.
1667
(10) An infrastructure financing district may not be created unless the estimated cost of the
1668
public infrastructure and improvements to be constructed within the boundary of the
1669
proposed infrastructure financing district exceeds $1,000,000, as certified under
1670
Subsection 17B-1-208(1)(c).
1671
(11)(a) Except as provided in Subsection (11)(b), the inclusion of an area within an
1672
infrastructure financing district does not affect whether the area may be included
1673
within another special district.
1674
(b) An infrastructure financing district may not include an area included within another
1675
infrastructure financing district.
1676
Section 15. Section 35A-8-202 is amended to read:
1677
35A-8-202 . Powers and duties of division.
1678
(1) The division shall:
1679
(a) assist local governments and citizens in the planning, development, and maintenance
1680
of necessary public infrastructure and services;
1681
(b) cooperate with, and provide technical assistance to, counties, cities, towns, regional
1682
planning commissions, area-wide clearinghouses, zoning commissions, parks or
1683
recreation boards, community development groups, community action agencies, and
1684
other agencies created for the purpose of aiding and encouraging an orderly,
1685
productive, and coordinated development of the state and its political subdivisions;
1686
(c) assist the governor in coordinating the activities of state agencies which have an
1687
impact on the solution of community development problems and the implementation
1688
of community plans;
1689
(d) serve as a clearinghouse for information, data, and other materials which may be
1690
helpful to local governments in discharging their responsibilities and provide
1691
information on available federal and state financial and technical assistance;
1692
(e) carry out continuing studies and analyses of the problems faced by communities
1693
within the state and develop such recommendations for administrative or legislative
- 50 - Enrolled Copy H.B. 37
1694
action as appear necessary;
1695
(f) assist in funding affordable housing;
1696
(g) support economic development activities through grants, loans, and direct programs
1697
financial assistance;
1698
(h) certify project funding at the local level in conformance with federal, state, and other
1699
requirements;
1700
(i) utilize the capabilities and facilities of public and private universities and colleges
1701
within the state in carrying out its functions; and
1702
(j) assist and support local governments, community action agencies, and citizens in the
1703
planning, development, and maintenance of home weatherization, energy efficiency,
1704
and antipoverty activities.
1705
(2) The division may:
1706
(a) by following the procedures and requirements of Title 63J, Chapter 5, Federal Funds
1707
Procedures Act, seek federal grants, loans, or participation in federal programs;
1708
(b) if any federal program requires the expenditure of state funds as a condition to
1709
participation by the state in any fund, property, or service, with the governor's
1710
approval, expend whatever funds are necessary out of the money provided by the
1711
Legislature for the use of the department;
1712
(c) in accordance with Part 9, Domestic Violence Shelters, assist in developing,
1713
constructing, and improving shelters for victims of domestic violence, as described in
1714
Section 77-36-1, through loans and grants to nonprofit and governmental entities;[
1715
and]
1716
(d) assist, when requested by a county or municipality, in the development of accessible
1717
housing[.] ; and
1718
(e) make rules, in accordance with Title 63G, Chapter 3, Utah Administrative
1719
Rulemaking Act, regarding the form and content of a moderate income housing
1720
report, as described in Sections 10-9a-408 and 17-27a-408, to:
1721
(i) ensure consistency across reporting political subdivisions; and
1722
(ii) promote better potential analysis of report data.
1723
Section 16. Section 63J-4-402 is enacted to read:
1724
63J-4-402 . State housing plan.
1725
(1) The office shall develop a state housing plan by December 31, 2025.
1726
(2)(a) The office shall partner with the Legislature, municipal and county governments,
1727
the home building industry and related stakeholders, and the general public in the
- 51 - H.B. 37 Enrolled Copy
1728
development of the state housing plan described in Subsection (1).
1729
(b) In developing the state housing plan, the office may develop regional housing plans
1730
within the state housing plan.
1731
(3) The state housing plan shall:
1732
(a) prioritize collaboration over preemption and collaboration across private and public
1733
sectors;
1734
(b) promote a holistic and regional approach to housing;
1735
(c) enable connected communities and center-based development;
1736
(d) acknowledge cross-issue policy alignment;
1737
(e) maintain a long-range vision;
1738
(f) promote opportunity and inclusivity;
1739
(g) recognize complex market forces; and
1740
(h) consider rural and urban contexts.
1741
(4) The state housing plan shall include data and metrics:
1742
(a) about actual and potential housing production;
1743
(b) about actual and potential infrastructure capacity, maintenance, and development; and
1744
(c) allowing the office to measure success of the state housing plan over time.
1745
(5) In gathering data and developing metrics, the office may analyze moderate income
1746
housing reports received by the Division of Housing and Community Development and:
1747
(a) determine which, if any, of the moderate income housing strategies described in
1748
Subsections 10-9a-403(2)(b)(iii) and 17-27a-403(2)(b)(ii) are correlated with an
1749
increase in the supply of moderate income housing, either built or entitled to be built,
1750
in the political subdivision that implements the moderate income housing strategy;
1751
and
1752
(b) draw conclusions regarding any data trends identified by the office as meaningful or
1753
significant.
1754
(6) By no later than October 1 of each year, the office shall provide a written report on the
1755
development and implementation of the state housing plan to the Political Subdivisions
1756
Interim Committee.
1757
Section 17. Section 72-1-304 is amended to read:
1758
72-1-304 . Written project prioritization process for new transportation capacity
1759
projects -- Rulemaking.
1760
(1)(a) The Transportation Commission, in consultation with the department and the
1761
metropolitan planning organizations as defined in Section 72-1-208.5, shall develop a
- 52 - Enrolled Copy H.B. 37
1762
written prioritization process for the prioritization of:
1763
(i) new transportation capacity projects that are or will be part of the state highway
1764
system under Chapter 4, Part 1, State Highways;
1765
(ii) paved pedestrian or paved nonmotorized transportation projects described in
1766
Section 72-2-124;
1767
(iii) public transit projects that directly add capacity to the public transit systems
1768
within the state, not including facilities ancillary to the public transit system; and
1769
(iv) pedestrian or nonmotorized transportation projects that provide connection to a
1770
public transit system.
1771
(b)(i) A local government or public transit district may nominate a project for
1772
prioritization in accordance with the process established by the commission in rule.
1773
(ii) If a local government or public transit district nominates a project for
1774
prioritization by the commission, the local government or public transit district
1775
shall provide data and evidence to show that:
1776
(A) the project will advance the purposes and goals described in Section 72-1-211;
1777
(B) for a public transit project, the local government or public transit district has
1778
an ongoing funding source for operations and maintenance of the proposed
1779
development; and
1780
(C) the local government or public transit district will provide the percentage of
1781
the costs for the project as required by Subsection 72-2-124(4)(a)(viii) or
1782
72-2-124(9)(e).
1783
(2) The following shall be included in the written prioritization process under Subsection (1):
1784
(a) a description of how the strategic initiatives of the department adopted under Section
1785
72-1-211 are advanced by the written prioritization process;
1786
(b) a definition of the type of projects to which the written prioritization process applies;
1787
(c) specification of a weighted criteria system that is used to rank proposed projects and
1788
how it will be used to determine which projects will be prioritized;
1789
(d) specification of the data that is necessary to apply the weighted ranking criteria; and
1790
(e) any other provisions the commission considers appropriate, which may include
1791
consideration of:
1792
(i) regional and statewide economic development impacts, including improved local
1793
access to:
1794
(A) employment;
1795
(B) educational facilities;
- 53 - H.B. 37 Enrolled Copy
1796
(C) recreation;
1797
(D) commerce; and
1798
(E) residential areas, including moderate income housing as demonstrated in the
1799
local government's or public transit district's general plan pursuant to Section
1800
10-9a-403 or 17-27a-403;
1801
(ii) the extent to which local land use plans relevant to a project support and
1802
accomplish the strategic initiatives adopted under Section 72-1-211; and
1803
(iii) any matching funds provided by a political subdivision or public transit district
1804
in addition to the percentage of costs required by Subsections 72-2-124(4)(a)(viii)
1805
and 72-2-124(9)(e).
1806
(3)(a) When prioritizing a public transit project that increases capacity, the commission:
1807
(i) may give priority consideration to projects that are part of a transit-oriented
1808
development or transit-supportive development as defined in Section 17B-2a-802;
1809
and
1810
(ii) shall give priority consideration to projects that are within the boundaries of a
1811
housing and transit reinvestment zone created pursuant to Title 63N, Chapter 3,
1812
Part 6, Housing and Transit Reinvestment Zone Act.
1813
(b) When prioritizing a transportation project that increases capacity, the commission
1814
may give priority consideration to projects that are:
1815
(i) part of a transportation reinvestment zone created under Section 11-13-227 if:
1816
(A) the state is a participant in the transportation reinvestment zone; or
1817
(B) the commission finds that the transportation reinvestment zone provides a
1818
benefit to the state transportation system; or
1819
(ii) within the boundaries of a housing and transit reinvestment zone created pursuant
1820
to Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
1821
(c) If the department receives a notice of prioritization for a municipality as described in
1822
Subsection [10-9a-408(5)] 10-9a-408(6), or a notice of prioritization for a county as
1823
described in Subsection [17-27a-408(5)] 17-27a-408(6), the commission may give
1824
priority consideration to transportation projects that are within the boundaries of the
1825
municipality or the unincorporated areas of the county until the department receives
1826
notification from the Housing and Community Development Division within the
1827
Department of Workforce Services that the municipality or county no longer qualifies
1828
for prioritization under this Subsection (3)(c).
1829
(4) In developing the written prioritization process, the commission:
- 54 - Enrolled Copy H.B. 37
1830
(a) shall seek and consider public comment by holding public meetings at locations
1831
throughout the state; and
1832
(b) may not consider local matching dollars as provided under Section 72-2-123 unless
1833
the state provides an equal opportunity to raise local matching dollars for state
1834
highway improvements within each county.
1835
(5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1836
Transportation Commission, in consultation with the department, shall make rules
1837
establishing the written prioritization process under Subsection (1).
1838
(6) The commission shall submit the proposed rules under this section to a committee or
1839
task force designated by the Legislative Management Committee for review prior to
1840
taking final action on the proposed rules or any proposed amendment to the rules
1841
described in Subsection (5).
1842
Section 18. Section 72-2-124 is amended to read:
1843
72-2-124 . Transportation Investment Fund of 2005.
1844
(1) There is created a capital projects fund entitled the Transportation Investment Fund of
1845
2005.
1846
(2) The fund consists of money generated from the following sources:
1847
(a) any voluntary contributions received for the maintenance, construction,
1848
reconstruction, or renovation of state and federal highways;
1849
(b) appropriations made to the fund by the Legislature;
1850
(c) registration fees designated under Section 41-1a-1201;
1851
(d) the sales and use tax revenues deposited into the fund in accordance with Section
1852
59-12-103; and
1853
(e) revenues transferred to the fund in accordance with Section 72-2-106.
1854
(3)(a) The fund shall earn interest.
1855
(b) All interest earned on fund money shall be deposited into the fund.
1856
(4)(a) Except as provided in Subsection (4)(b), the executive director may only use fund
1857
money to pay:
1858
(i) the costs of maintenance, construction, reconstruction, or renovation to state and
1859
federal highways prioritized by the Transportation Commission through the
1860
prioritization process for new transportation capacity projects adopted under
1861
Section 72-1-304;
1862
(ii) the costs of maintenance, construction, reconstruction, or renovation to the
1863
highway projects described in Subsections 63B-18-401(2), (3), and (4);
- 55 - H.B. 37 Enrolled Copy
1864
(iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
1865
minus the costs paid from the County of the First Class Highway Projects Fund in
1866
accordance with Subsection 72-2-121(4)(e);
1867
(iv) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
1868
Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the
1869
amount certified by Salt Lake County in accordance with Subsection 72-2-121.3
1870
(4)(c) as necessary to pay the debt service on $30,000,000 of the revenue bonds
1871
issued by Salt Lake County;
1872
(v) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
1873
for projects prioritized in accordance with Section 72-2-125;
1874
(vi) all highway general obligation bonds that are intended to be paid from revenues
1875
in the Centennial Highway Fund created by Section 72-2-118;
1876
(vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
1877
Class Highway Projects Fund created in Section 72-2-121 to be used for the
1878
purposes described in Section 72-2-121;
1879
(viii) if a political subdivision provides a contribution equal to or greater than 40% of
1880
the costs needed for construction, reconstruction, or renovation of paved
1881
pedestrian or paved nonmotorized transportation for projects that:
1882
(A) mitigate traffic congestion on the state highway system;
1883
(B) are part of an active transportation plan approved by the department; and
1884
(C) are prioritized by the commission through the prioritization process for new
1885
transportation capacity projects adopted under Section 72-1-304;
1886
(ix) $705,000,000 for the costs of right-of-way acquisition, construction,
1887
reconstruction, or renovation of or improvement to the following projects:
1888
(A) the connector road between Main Street and 1600 North in the city of
1889
Vineyard;
1890
(B) Geneva Road from University Parkway to 1800 South;
1891
(C) the SR-97 interchange at 5600 South on I-15;
1892
(D) subject to Subsection (4)(c), two lanes on U-111 from Herriman Parkway to
1893
South Jordan Parkway;
1894
(E) widening I-15 between mileposts 10 and 13 and the interchange at milepost 11;
1895
(F) improvements to 1600 North in Orem from 1200 West to State Street;
1896
(G) widening I-15 between mileposts 6 and 8;
1897
(H) widening 1600 South from Main Street in the city of Spanish Fork to SR-51;
- 56 - Enrolled Copy H.B. 37
1898
(I) widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197
1899
in Spanish Fork Canyon;
1900
(J) I-15 northbound between mileposts 43 and 56;
1901
(K) a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts
1902
43 and 45.1;
1903
(L) east Zion SR-9 improvements;
1904
(M) Toquerville Parkway;
1905
(N) an environmental study on Foothill Boulevard in the city of Saratoga Springs;
1906
(O) using funds allocated in this Subsection (4)(a)(ix), and other sources of funds,
1907
for construction of an interchange on Bangerter Highway at 13400 South; and
1908
(P) an environmental impact study for Kimball Junction in Summit County; and
1909
(x) $28,000,000 as pass-through funds, to be distributed as necessary to pay project
1910
costs based upon a statement of cash flow that the local jurisdiction where the
1911
project is located provides to the department demonstrating the need for money
1912
for the project, for the following projects in the following amounts:
1913
(A) $5,000,000 for Payson Main Street repair and replacement;
1914
(B) $8,000,000 for a Bluffdale 14600 South railroad bypass;
1915
(C) $5,000,000 for improvements to 4700 South in Taylorsville; and
1916
(D) $10,000,000 for improvements to the west side frontage roads adjacent to U.S.
1917
40 between mile markers 7 and 10.
1918
(b) The executive director may use fund money to exchange for an equal or greater
1919
amount of federal transportation funds to be used as provided in Subsection (4)(a).
1920
(c)(i) Construction related to the project described in Subsection (4)(a)(ix)(D) may
1921
not commence until a right-of-way not owned by a federal agency that is required
1922
for the realignment and extension of U-111, as described in the department's 2023
1923
environmental study related to the project, is dedicated to the department.
1924
(ii) Notwithstanding Subsection (4)(c)(i), if a right-of-way is not dedicated for the
1925
project as described in Subsection (4)(c)(i) on or before October 1, 2024, the
1926
department may proceed with the project, except that the project will be limited to
1927
two lanes on U-111 from Herriman Parkway to 11800 South.
1928
(5)(a) Except as provided in Subsection (5)(b), if the department receives a notice of
1929
ineligibility for a municipality as described in Subsection [10-9a-408(7)] 10-9a-408(9),
1930
the executive director may not program fund money to a project prioritized by the
1931
commission under Section 72-1-304, including fund money from the Transit
- 57 - H.B. 37 Enrolled Copy
1932
Transportation Investment Fund, within the boundaries of the municipality until the
1933
department receives notification from the Housing and Community Development
1934
Division within the Department of Workforce Services that ineligibility under this
1935
Subsection (5) no longer applies to the municipality.
1936
(b) Within the boundaries of a municipality described in Subsection (5)(a), the executive
1937
director:
1938
(i) may program fund money in accordance with Subsection (4)(a) for a
1939
limited-access facility or interchange connecting limited-access facilities;
1940
(ii) may not program fund money for the construction, reconstruction, or renovation
1941
of an interchange on a limited-access facility;
1942
(iii) may program Transit Transportation Investment Fund money for a
1943
multi-community fixed guideway public transportation project; and
1944
(iv) may not program Transit Transportation Investment Fund money for the
1945
construction, reconstruction, or renovation of a station that is part of a fixed
1946
guideway public transportation project.
1947
(c) Subsections (5)(a) and (b) do not apply to a project programmed by the executive
1948
director before July 1, 2022, for projects prioritized by the commission under Section
1949
72-1-304.
1950
(6)(a) Except as provided in Subsection (6)(b), if the department receives a notice of
1951
ineligibility for a county as described in Subsection [17-27a-408(7)] 17-27a-408(9),
1952
the executive director may not program fund money to a project prioritized by the
1953
commission under Section 72-1-304, including fund money from the Transit
1954
Transportation Investment Fund, within the boundaries of the unincorporated area of
1955
the county until the department receives notification from the Housing and
1956
Community Development Division within the Department of Workforce Services
1957
that ineligibility under this Subsection (6) no longer applies to the county.
1958
(b) Within the boundaries of the unincorporated area of a county described in Subsection
1959
(6)(a), the executive director:
1960
(i) may program fund money in accordance with Subsection (4)(a) for a
1961
limited-access facility to a project prioritized by the commission under Section
1962
72-1-304;
1963
(ii) may not program fund money for the construction, reconstruction, or renovation
1964
of an interchange on a limited-access facility;
1965
(iii) may program Transit Transportation Investment Fund money for a
- 58 - Enrolled Copy H.B. 37
1966
multi-community fixed guideway public transportation project; and
1967
(iv) may not program Transit Transportation Investment Fund money for the
1968
construction, reconstruction, or renovation of a station that is part of a fixed
1969
guideway public transportation project.
1970
(c) Subsections (6)(a) and (b) do not apply to a project programmed by the executive
1971
director before July 1, 2022, for projects prioritized by the commission under Section
1972
72-1-304.
1973
(7)(a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued in
1974
any fiscal year, the department and the commission shall appear before the Executive
1975
Appropriations Committee of the Legislature and present the amount of bond
1976
proceeds that the department needs to provide funding for the projects identified in
1977
Subsections 63B-18-401(2), (3), and (4) or Subsection 63B-27-101(2) for the current
1978
or next fiscal year.
1979
(b) The Executive Appropriations Committee of the Legislature shall review and
1980
comment on the amount of bond proceeds needed to fund the projects.
1981
(8) The Division of Finance shall, from money deposited into the fund, transfer the amount
1982
of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
1983
Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt
1984
service or sinking fund.
1985
(9)(a) There is created in the Transportation Investment Fund of 2005 the Transit
1986
Transportation Investment Fund.
1987
(b) The fund shall be funded by:
1988
(i) contributions deposited into the fund in accordance with Section 59-12-103;
1989
(ii) appropriations into the account by the Legislature;
1990
(iii) deposits of sales and use tax increment related to a housing and transit
1991
reinvestment zone as described in Section 63N-3-610;
1992
(iv) transfers of local option sales and use tax revenue as described in Subsection
1993
59-12-2220(11)(b) or (c);
1994
(v) private contributions; and
1995
(vi) donations or grants from public or private entities.
1996
(c)(i) The fund shall earn interest.
1997
(ii) All interest earned on fund money shall be deposited into the fund.
1998
(d) Subject to Subsection (9)(e), the commission may prioritize money from the fund:
1999
(i) for public transit capital development of new capacity projects and fixed guideway
- 59 - H.B. 37 Enrolled Copy
2000
capital development projects to be used as prioritized by the commission through
2001
the prioritization process adopted under Section 72-1-304;
2002
(ii) to the department for oversight of a fixed guideway capital development project
2003
for which the department has responsibility; or
2004
(iii) up to $500,000 per year, to be used for a public transit study.
2005
(e)(i) Subject to Subsections (9)(g), (h), and (i), the commission may only prioritize
2006
money from the fund for a public transit capital development project or pedestrian
2007
or nonmotorized transportation project that provides connection to the public
2008
transit system if the public transit district or political subdivision provides funds of
2009
equal to or greater than 30% of the costs needed for the project.
2010
(ii) A public transit district or political subdivision may use money derived from a
2011
loan granted pursuant to Title 72, Chapter 2, Part 2, State Infrastructure Bank Fund,
2012
to provide all or part of the 30% requirement described in Subsection (9)(e)(i) if:
2013
(A) the loan is approved by the commission as required in Title 72, Chapter 2,
2014
Part 2, State Infrastructure Bank Fund; and
2015
(B) the proposed capital project has been prioritized by the commission pursuant
2016
to Section 72-1-303.
2017
(f) Before July 1, 2022, the department and a large public transit district shall enter into
2018
an agreement for a large public transit district to pay the department $5,000,000 per
2019
year for 15 years to be used to facilitate the purchase of zero emissions or low
2020
emissions rail engines and trainsets for regional public transit rail systems.
2021
(g) For any revenue transferred into the fund pursuant to Subsection 59-12-2220(11)(b):
2022
(i) the commission may prioritize money from the fund for public transit projects,
2023
operations, or maintenance within the county of the first class; and
2024
(ii) Subsection (9)(e) does not apply.
2025
(h) For any revenue transferred into the fund pursuant to Subsection 59-12-2220(11)(c):
2026
(i) the commission may prioritize public transit projects, operations, or maintenance
2027
in the county from which the revenue was generated; and
2028
(ii) Subsection (9)(e) does not apply.
2029
(i) The requirement to provide funds equal to or greater than 30% of the costs needed for
2030
the project described in Subsection (9)(e) does not apply to a public transit capital
2031
development project or pedestrian or nonmotorized transportation project that the
2032
department proposes.
2033
(j) In accordance with Part 3, Public Transit Innovation Grants, the commission may
- 60 - Enrolled Copy H.B. 37
2034
prioritize money from the fund for public transit innovation grants, as defined in
2035
Section 72-2-401, for public transit capital development projects requested by a
2036
political subdivision within a public transit district.
2037
(10)(a) There is created in the Transportation Investment Fund of 2005 the Cottonwood
2038
Canyons Transportation Investment Fund.
2039
(b) The fund shall be funded by:
2040
(i) money deposited into the fund in accordance with Section 59-12-103;
2041
(ii) appropriations into the account by the Legislature;
2042
(iii) private contributions; and
2043
(iv) donations or grants from public or private entities.
2044
(c)(i) The fund shall earn interest.
2045
(ii) All interest earned on fund money shall be deposited into the fund.
2046
(d) The Legislature may appropriate money from the fund for public transit or
2047
transportation projects in the Cottonwood Canyons of Salt Lake County.
2048
(e) The department may use up to 2% of the revenue deposited into the account under
2049
Subsection 59-12-103(7)(b) to contract with local governments as necessary for
2050
public safety enforcement related to the Cottonwood Canyons of Salt Lake County.
2051
(11)(a) There is created in the Transportation Investment Fund of 2005 the Active
2052
Transportation Investment Fund.
2053
(b) The fund shall be funded by:
2054
(i) money deposited into the fund in accordance with Section 59-12-103;
2055
(ii) appropriations into the account by the Legislature; and
2056
(iii) donations or grants from public or private entities.
2057
(c)(i) The fund shall earn interest.
2058
(ii) All interest earned on fund money shall be deposited into the fund.
2059
(d) The executive director may only use fund money to pay the costs needed for:
2060
(i) the planning, design, construction, maintenance, reconstruction, or renovation of
2061
paved pedestrian or paved nonmotorized trail projects that:
2062
(A) are prioritized by the commission through the prioritization process for new
2063
transportation capacity projects adopted under Section 72-1-304;
2064
(B) serve a regional purpose; and
2065
(C) are part of an active transportation plan approved by the department or the
2066
plan described in Subsection (11)(d)(ii);
2067
(ii) the development of a plan for a statewide network of paved pedestrian or paved
- 61 - H.B. 37 Enrolled Copy
2068
nonmotorized trails that serve a regional purpose; and
2069
(iii) the administration of the fund, including staff and overhead costs.
2070
(12)(a) As used in this Subsection (12), "commuter rail" means the same as that term is
2071
defined in Section 63N-3-602.
2072
(b) There is created in the Transit Transportation Investment Fund the Commuter Rail
2073
Subaccount.
2074
(c) The subaccount shall be funded by:
2075
(i) contributions deposited into the subaccount in accordance with Section 59-12-103;
2076
(ii) appropriations into the subaccount by the Legislature;
2077
(iii) private contributions; and
2078
(iv) donations or grants from public or private entities.
2079
(d)(i) The subaccount shall earn interest.
2080
(ii) All interest earned on money in the subaccount shall be deposited into the
2081
subaccount.
2082
(e) As prioritized by the commission through the prioritization process adopted under
2083
Section 72-1-304 or as directed by the Legislature, the department may only use
2084
money from the subaccount for projects that improve the state's commuter rail
2085
infrastructure, including the building or improvement of grade-separated crossings
2086
between commuter rail lines and public highways.
2087
(f) Appropriations made in accordance with this section are nonlapsing in accordance
2088
with Section 63J-1-602.1.
2089
Section 19. Effective Date.
2090
This bill takes effect on May 7, 2025.
- 62 -