02-26 16:17 1st Sub. (Buff) H.B. 398 Steve Eliason proposes the following substitute bill: 1 Auxiliary Housing Amendments 2025 GENERAL SESSION STATE OF UTAH Chief Sponsor: Steve Eliason Senate Sponsor: 2 3 LONG TITLE 4 General Description: 5 This bill amends provisions regarding auxiliary housing. 6 Highlighted Provisions: 7 This bill: 8 ▸ requires municipalities and counties process land use applications to build an internal 9 accessory dwelling unit within a certain time; 10 ▸ allows an applicant to submit a land use application to the Division of Facilities and 11 Construction Management under certain circumstances; and 12 ▸ makes technical changes and conforming changes. 13 Money Appropriated in this Bill: 14 None 15 Other Special Clauses: 16 None 17 Utah Code Sections Affected: 18 AMENDS: 19 10-9a-530, as last amended by Laws of Utah 2023, Chapter 501 20 17-27a-526, as last amended by Laws of Utah 2023, Chapter 501 21 22 Be it enacted by the Legislature of the state of Utah: 23 Section 1. Section 10-9a-530 is amended to read: 24 10-9a-530 . Internal accessory dwelling units. 25 (1) As used in this section: 26 (a) "Internal accessory dwelling unit" means an accessory dwelling unit created: 27 (i) within a primary dwelling; 28 (ii) within the footprint of the primary dwelling described in Subsection (1)(a)(i) at 29 the time the internal accessory dwelling unit is created; and 1st Sub. H.B. 398 1st Sub. (Buff) H.B. 398 02-26 16:17 30 (iii) for the purpose of offering a long-term rental of 30 consecutive days or longer. 31 (b)(i) "Primary dwelling" means a single-family dwelling that: 32 (A) is detached; and 33 (B) is occupied as the primary residence of the owner of record. 34 (ii) "Primary dwelling" includes a garage if the garage: 35 (A) is a habitable space; and 36 (B) is connected to the primary dwelling by a common wall. 37 (2) In any area zoned primarily for residential use: 38 (a) the use of an internal accessory dwelling unit is a permitted use; 39 (b) except as provided in Subsections (3) and [(4),] (7), a municipality may not establish 40 any restrictions or requirements for the construction or use of one internal accessory 41 dwelling unit within a primary dwelling, including a restriction or requirement 42 governing: 43 (i) the size of the internal accessory dwelling unit in relation to the primary dwelling; 44 (ii) total lot size; 45 (iii) street frontage; or 46 (iv) internal connectivity; and 47 (c) a municipality's regulation of architectural elements for internal accessory dwelling 48 units shall be consistent with the regulation of single-family units, including 49 single-family units located in historic districts. 50 (3) An internal accessory dwelling unit shall comply with all applicable building, health, 51 and fire codes. 52 (4) A municipality shall: 53 (a) within 14 days from the day that the municipality receives a completed land 54 application from a home owner to build an internal accessory dwelling unit, process 55 the land use application in accordance with Sections 10-9a-509 and 10-9a-509.5; 56 (b)(i) within seven days from the day the municipality receives the application 57 described in Subsection (4)(a), notify the applicant whether the land use 58 application is complete or incomplete; 59 (ii) if the application described in Subsection (4) is incomplete, notify the applicant in 60 writing of the reason for an incomplete application; and 61 (iii) give the applicant 10 days from the day in which notice is provided under 62 Subsection (4)(b) to cure any defects in the application; and 63 (c) within 10 days from the day that the applicant submits the correct application, - 2 - 02-26 16:17 1st Sub. (Buff) H.B. 398 64 approve the land use application. 65 (5) If a municipality fails to process a land use application in accordance with Subsection 66 (4), the applicant may submit the land use application to the Division of Facilities and 67 Construction Management. 68 (6) The Division of Facilities and Construction Management may charge the municipality 69 for the cost of processing the land use application. 70 [(4)] (7) A municipality may: 71 (a) prohibit the installation of a separate utility meter for an internal accessory dwelling 72 unit; 73 (b) require that an internal accessory dwelling unit be designed in a manner that does not 74 change the appearance of the primary dwelling as a single-family dwelling; 75 (c) require a primary dwelling: 76 (i) regardless of whether the primary dwelling is existing or new construction, to 77 include one additional on-site parking space for an internal accessory dwelling 78 unit, in addition to the parking spaces required under the municipality's land use 79 regulation, except that if the municipality's land use ordinance requires four 80 off-street parking spaces, the municipality may not require the additional space 81 contemplated under this Subsection [(4)(c)(i); ] (7)(c)(i); and 82 (ii) to replace any parking spaces contained within a garage or carport if an internal 83 accessory dwelling unit is created within the garage or carport and is a habitable 84 space; 85 (d) prohibit the creation of an internal accessory dwelling unit within a mobile home as 86 defined in Section 57-16-3; 87 (e) require the owner of a primary dwelling to obtain a permit or license for renting an 88 internal accessory dwelling unit; 89 (f) prohibit the creation of an internal accessory dwelling unit within a zoning district 90 covering an area that is equivalent to: 91 (i) 25% or less of the total area in the municipality that is zoned primarily for 92 residential use, except that the municipality may not prohibit newly constructed 93 internal accessory dwelling units that: 94 (A) have a final plat approval dated on or after October 1, 2021; and 95 (B) comply with applicable land use regulations; or 96 (ii) 67% or less of the total area in the municipality that is zoned primarily for 97 residential use, if the main campus of a state or private university with a student - 3 - 1st Sub. (Buff) H.B. 398 02-26 16:17 98 population of 10,000 or more is located within the municipality; 99 (g) prohibit the creation of an internal accessory dwelling unit if the primary dwelling is 100 served by a failing septic tank; 101 (h) prohibit the creation of an internal accessory dwelling unit if the lot containing the 102 primary dwelling is 6,000 square feet or less in size; 103 (i) prohibit the rental or offering the rental of an internal accessory dwelling unit for a 104 period of less than 30 consecutive days; 105 (j) prohibit the rental of an internal accessory dwelling unit if the internal accessory 106 dwelling unit is located in a dwelling that is not occupied as the owner's primary 107 residence; 108 (k) hold a lien against a property that contains an internal accessory dwelling unit in 109 accordance with Subsection [(5); ] (8); and 110 (l) record a notice for an internal accessory dwelling unit in accordance with Subsection [ 111 (6).] (9). 112 [(5)] (8)(a) In addition to any other legal or equitable remedies available to a 113 municipality, a municipality may hold a lien against a property that contains an 114 internal accessory dwelling unit if: 115 (i) the owner of the property violates any of the provisions of this section or any 116 ordinance adopted under Subsection [(4);] (7); 117 (ii) the municipality provides a written notice of violation in accordance with 118 Subsection[ (5)(b);] (8)(b); 119 (iii) the municipality holds a hearing and determines that the violation has occurred in 120 accordance with Subsection [(5)(d),] (8)(d), if the owner files a written objection in 121 accordance with Subsection [(5)(b)(iv);] (8)(b)(iv); 122 (iv) the owner fails to cure the violation within the time period prescribed in the 123 written notice of violation under Subsection [(5)(b);] (8)(b); 124 (v) the municipality provides a written notice of lien in accordance with Subsection [ 125 (5)(c); ] (8)(c); and 126 (vi) the municipality records a copy of the written notice of lien described in 127 Subsection [(5)(a)(v)] (8)(a)(v) with the county recorder of the county in which 128 the property is located. 129 (b) The written notice of violation shall: 130 (i) describe the specific violation; 131 (ii) provide the owner of the internal accessory dwelling unit a reasonable - 4 - 02-26 16:17 1st Sub. (Buff) H.B. 398 132 opportunity to cure the violation that is: 133 (A) no less than 14 days after the day on which the municipality sends the written 134 notice of violation, if the violation results from the owner renting or offering to 135 rent the internal accessory dwelling unit for a period of less than 30 136 consecutive days; or 137 (B) no less than 30 days after the day on which the municipality sends the written 138 notice of violation, for any other violation; 139 (iii) state that if the owner of the property fails to cure the violation within the time 140 period described in Subsection[ (5)(b)(ii), ] (8)(b)(ii), the municipality may hold a 141 lien against the property in an amount of up to $100 for each day of violation after 142 the day on which the opportunity to cure the violation expires; 143 (iv) notify the owner of the property: 144 (A) that the owner may file a written objection to the violation within 14 days 145 after the day on which the written notice of violation is post-marked or posted 146 on the property; and 147 (B) of the name and address of the municipal office where the owner may file the 148 written objection; 149 (v) be mailed to: 150 (A) the property's owner of record; and 151 (B) any other individual designated to receive notice in the owner's license or 152 permit records; and 153 (vi) be posted on the property. 154 (c) The written notice of lien shall: 155 (i) comply with the requirements of Section 38-12-102; 156 (ii) state that the property is subject to a lien; 157 (iii) specify the lien amount, in an amount of up to $100 for each day of violation 158 after the day on which the opportunity to cure the violation expires; 159 (iv) be mailed to: 160 (A) the property's owner of record; and 161 (B) any other individual designated to receive notice in the owner's license or 162 permit records; and 163 (v) be posted on the property. 164 (d)(i) If an owner of property files a written objection in accordance with Subsection[ 165 (5)(b)(iv), ] (8)(b)(iv), the municipality shall: - 5 - 1st Sub. (Buff) H.B. 398 02-26 16:17 166 (A) hold a hearing in accordance with Title 52, Chapter 4, Open and Public 167 Meetings Act, to conduct a review and determine whether the specific violation 168 described in the written notice of violation under Subsection [(5)(b)] (8)(b) has 169 occurred; and 170 (B) notify the owner in writing of the date, time, and location of the hearing 171 described in Subsection (5)(d)(i)(A) no less than 14 days before the day on 172 which the hearing is held. 173 (ii) If an owner of property files a written objection under Subsection[ (5)(b)(iv), ] 174 (8)(b)(iv), a municipality may not record a lien under this Subsection[ (5) ] (8) 175 until the municipality holds a hearing and determines that the specific violation 176 has occurred. 177 (iii) If the municipality determines at the hearing that the specific violation has 178 occurred, the municipality may impose a lien in an amount of up to $100 for each 179 day of violation after the day on which the opportunity to cure the violation 180 expires, regardless of whether the hearing is held after the day on which the 181 opportunity to cure the violation has expired. 182 (e) If an owner cures a violation within the time period prescribed in the written notice 183 of violation under Subsection [(5)(b), ] (8)(b), the municipality may not hold a lien 184 against the property, or impose any penalty or fee on the owner, in relation to the 185 specific violation described in the written notice of violation under Subsection [(5)(b).] 186 (8)(b). 187 [(6)] (9)(a) A municipality that issues, on or after October 1, 2021, a permit or license to 188 an owner of a primary dwelling to rent an internal accessory dwelling unit, or a 189 building permit to an owner of a primary dwelling to create an internal accessory 190 dwelling unit, may record a notice in the office of the recorder of the county in which 191 the primary dwelling is located. 192 (b) The notice described in Subsection [(6)(a)] (9)(a) shall include: 193 (i) a description of the primary dwelling; 194 (ii) a statement that the primary dwelling contains an internal accessory dwelling 195 unit; and 196 (iii) a statement that the internal accessory dwelling unit may only be used in 197 accordance with the municipality's land use regulations. 198 (c) The municipality shall, upon recording the notice described in Subsection [(6)(a),] 199 (9)(a), deliver a copy of the notice to the owner of the internal accessory dwelling - 6 - 02-26 16:17 1st Sub. (Buff) H.B. 398 200 unit. 201 Section 2. Section 17-27a-526 is amended to read: 202 17-27a-526 . Internal accessory dwelling units. 203 (1) As used in this section: 204 (a) "Internal accessory dwelling unit" means an accessory dwelling unit created: 205 (i) within a primary dwelling; 206 (ii) within the footprint of the primary dwelling described in Subsection (1)(a)(i) at 207 the time the internal accessory dwelling unit is created; and 208 (iii) for the purpose of offering a long-term rental of 30 consecutive days or longer. 209 (b)(i) "Primary dwelling" means a single-family dwelling that: 210 (A) is detached; and 211 (B) is occupied as the primary residence of the owner of record. 212 (ii) "Primary dwelling" includes a garage if the garage: 213 (A) is a habitable space; and 214 (B) is connected to the primary dwelling by a common wall. 215 (2) In any area zoned primarily for residential use: 216 (a) the use of an internal accessory dwelling unit is a permitted use; 217 (b) except as provided in Subsections (3) and [(4),] (7), a county may not establish any 218 restrictions or requirements for the construction or use of one internal accessory 219 dwelling unit within a primary dwelling, including a restriction or requirement 220 governing: 221 (i) the size of the internal accessory dwelling unit in relation to the primary dwelling; 222 (ii) total lot size; 223 (iii) street frontage; or 224 (iv) internal connectivity; and 225 (c) a county's regulation of architectural elements for internal accessory dwelling units 226 shall be consistent with the regulation of single-family units, including single-family 227 units located in historic districts. 228 (3) An internal accessory dwelling unit shall comply with all applicable building, health, 229 and fire codes. 230 (4) A county shall: 231 (a) within 14 days from the day that the county receives a completed land application 232 from a home owner to build an internal accessory dwelling unit, process the land use 233 application in accordance with Sections 17-27a-508 and 17-27a-509.5; - 7 - 1st Sub. (Buff) H.B. 398 02-26 16:17 234 (b)(i) within seven days from the day the county receives the application described in 235 Subsection (4)(a), notify the applicant whether the land use application is 236 complete or incomplete; 237 (ii) if the application described in Subsection (4) is incomplete, notify the applicant in 238 writing of the reason for an incomplete application; and 239 (iii) give the applicant 10 days from the day in which notice is provided under 240 Subsection (4)(b) to cure any defects in the application; and 241 (c) within 10 days from the day that the applicant submits the corrected application, 242 approve the land use application. 243 (5) If a county fails to process a land use application in accordance with Subsection (4), the 244 applicant may submit the land use application to the Division of Facilities and 245 Construction Management. 246 (6) The Division of Facilities and Construction Management may charge the county for the 247 cost of processing the land use application. 248 [(4)] (7) A county may: 249 (a) prohibit the installation of a separate utility meter for an internal accessory dwelling 250 unit; 251 (b) require that an internal accessory dwelling unit be designed in a manner that does not 252 change the appearance of the primary dwelling as a single-family dwelling; 253 (c) require a primary dwelling: 254 (i) regardless of whether the primary dwelling is existing or new construction, to 255 include one additional on-site parking space for an internal accessory dwelling 256 unit, in addition to the parking spaces required under the county's land use 257 ordinance, except that if the county's land use ordinance requires four off-street 258 parking spaces, the county may not require the additional space contemplated 259 under this Subsection [(4)(c)(i); ] (7)(c)(i); and 260 (ii) to replace any parking spaces contained within a garage or carport if an internal 261 accessory dwelling unit is created within the garage or carport and is habitable 262 space; 263 (d) prohibit the creation of an internal accessory dwelling unit within a mobile home as 264 defined in Section 57-16-3; 265 (e) require the owner of a primary dwelling to obtain a permit or license for renting an 266 internal accessory dwelling unit; 267 (f) prohibit the creation of an internal accessory dwelling unit within a zoning district - 8 - 02-26 16:17 1st Sub. (Buff) H.B. 398 268 covering an area that is equivalent to 25% or less of the total unincorporated area in 269 the county that is zoned primarily for residential use, except that the county may not 270 prohibit newly constructed internal accessory dwelling units that: 271 (i) have a final plat approval dated on or after October 1, 2021; and 272 (ii) comply with applicable land use regulations; 273 (g) prohibit the creation of an internal accessory dwelling unit if the primary dwelling is 274 served by a failing septic tank; 275 (h) prohibit the creation of an internal accessory dwelling unit if the lot containing the 276 primary dwelling is 6,000 square feet or less in size; 277 (i) prohibit the rental or offering the rental of an internal accessory dwelling unit for a 278 period of less than 30 consecutive days; 279 (j) prohibit the rental of an internal accessory dwelling unit if the internal accessory 280 dwelling unit is located in a dwelling that is not occupied as the owner's primary 281 residence; 282 (k) hold a lien against a property that contains an internal accessory dwelling unit in 283 accordance with Subsection [(5);] (8); and 284 (l) record a notice for an internal accessory dwelling unit in accordance with Subsection [ 285 (6).] (9). 286 [(5)] (8)(a) In addition to any other legal or equitable remedies available to a county, a 287 county may hold a lien against a property that contains an internal accessory dwelling 288 unit if: 289 (i) the owner of the property violates any of the provisions of this section or any 290 ordinance adopted under Subsection [(4);] (7); 291 (ii) the county provides a written notice of violation in accordance with Subsection [ 292 (5)(b);] (8)(b); 293 (iii) the county holds a hearing and determines that the violation has occurred in 294 accordance with Subsection[ (5)(d),] (8)(d), if the owner files a written objection in 295 accordance with Subsection[ (5)(b)(iv);] (8)(b)(iv); 296 (iv) the owner fails to cure the violation within the time period prescribed in the 297 written notice of violation under Subsection [(5)(b);] (8)(b); 298 (v) the county provides a written notice of lien in accordance with Subsection [(5)(c);] 299 (8)(c); and 300 (vi) the county records a copy of the written notice of lien described in Subsection [ 301 (5)(a)(v) ] (8)(a)(v) with the county recorder of the county in which the property is - 9 - 1st Sub. (Buff) H.B. 398 02-26 16:17 302 located. 303 (b) The written notice of violation shall: 304 (i) describe the specific violation; 305 (ii) provide the owner of the internal accessory dwelling unit a reasonable 306 opportunity to cure the violation that is: 307 (A) no less than 14 days after the day on which the county sends the written notice 308 of violation, if the violation results from the owner renting or offering to rent 309 the internal accessory dwelling unit for a period of less than 30 consecutive 310 days; or 311 (B) no less than 30 days after the day on which the county sends the written notice 312 of violation, for any other violation; 313 (iii) state that if the owner of the property fails to cure the violation within the time 314 period described in Subsection [(5)(b)(ii), ] (8)(b)(ii), the county may hold a lien 315 against the property in an amount of up to $100 for each day of violation after the 316 day on which the opportunity to cure the violation expires; 317 (iv) notify the owner of the property: 318 (A) that the owner may file a written objection to the violation within 14 days 319 after the day on which the written notice of violation is post-marked or posted 320 on the property; and 321 (B) of the name and address of the county office where the owner may file the 322 written objection; 323 (v) be mailed to: 324 (A) the property's owner of record; and 325 (B) any other individual designated to receive notice in the owner's license or 326 permit records; and 327 (vi) be posted on the property. 328 (c) The written notice of lien shall: 329 (i) comply with the requirements of Section 38-12-102; 330 (ii) describe the specific violation; 331 (iii) specify the lien amount, in an amount of up to $100 for each day of violation 332 after the day on which the opportunity to cure the violation expires; 333 (iv) be mailed to: 334 (A) the property's owner of record; and 335 (B) any other individual designated to receive notice in the owner's license or - 10 - 02-26 16:17 1st Sub. (Buff) H.B. 398 336 permit records; and 337 (v) be posted on the property. 338 (d)(i) If an owner of property files a written objection in accordance with Subsection [ 339 (5)(b)(iv), ] (8)(b)(iv), the county shall: 340 (A) hold a hearing in accordance with Title 52, Chapter 4, Open and Public 341 Meetings Act, to conduct a review and determine whether the specific violation 342 described in the written notice of violation under Subsection [(5)(b)] (8)(b) has 343 occurred; and 344 (B) notify the owner in writing of the date, time, and location of the hearing 345 described in Subsection [(5)(d)(i)(A) ] (8)(d)(i)(A) no less than 14 days before 346 the day on which the hearing is held. 347 (ii) If an owner of property files a written objection under Subsection [(5)(b)(iv), ] 348 (8)(b)(iv), a county may not record a lien under this Subsection [(5)] (8) until the 349 county holds a hearing and determines that the specific violation has occurred. 350 (iii) If the county determines at the hearing that the specific violation has occurred, 351 the county may impose a lien in an amount of up to $100 for each day of violation 352 after the day on which the opportunity to cure the violation expires, regardless of 353 whether the hearing is held after the day on which the opportunity to cure the 354 violation has expired. 355 (e) If an owner cures a violation within the time period prescribed in the written notice 356 of violation under Subsection[ (5)(b), ] (8)(b), the county may not hold a lien against 357 the property, or impose any penalty or fee on the owner, in relation to the specific 358 violation described in the written notice of violation under Subsection [(5)(b).] (8)(b). 359 [(6)] (9)(a) A county that issues, on or after October 1, 2021, a permit or license to an 360 owner of a primary dwelling to rent an internal accessory dwelling unit, or a building 361 permit to an owner of a primary dwelling to create an internal accessory dwelling 362 unit, may record a notice in the office of the recorder of the county in which the 363 primary dwelling is located. 364 (b) The notice described in Subsection [(6)(a) ] (9)(a) shall include: 365 (i) a description of the primary dwelling; 366 (ii) a statement that the primary dwelling contains an internal accessory dwelling 367 unit; and 368 (iii) a statement that the internal accessory dwelling unit may only be used in 369 accordance with the county's land use regulations. - 11 - 1st Sub. (Buff) H.B. 398 02-26 16:17 370 (c) The county shall, upon recording the notice described in Subsection [(6)(a), ] (9)(a), 371 deliver a copy of the notice to the owner of the internal accessory dwelling unit. 372 Section 3. Effective Date. 373 This bill takes effect on May 7, 2025. - 12 -